Overview of Property Assessed Clean Energy (PACE) Program by dda29983

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									Overview of Property Assessed
Clean Energy (PACE) Program

              San Antonio Office of
              Environmental Policy
              December 16, 2009
    Overview

       PACE methodology allows for the city to finance
        the cost of installing energy efficiency or
        renewable energy improvements on private
        property.

       Participants repay the costs of the installations
        through a assessment on their property tax bill.

       A lien against the property secures the
        repayment obligation.
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    Background

       Methodology introduced in Berkeley CA in 2008
       Enabled in Texas by HB 1937 (became effective 9/1/09)
       San Antonio PACE Task Force has been meeting since
        August
        –   Representation from Solar San Antonio and solar industry

       The White House has determined PACE to be a priority
        mechanism for retrofitting buildings (access to grant
        opportunities).
       Operational Programs in Berkeley, Palm Desert, and
        Sonoma County California, as well as Boulder County
3       Colorado.
    Benefits of PACE

    Removes historical barriers to energy efficiency
    and renewable energy installations:

       Eliminates initial capital requirements;
        replaced with yearly payments that correspond
        to the lifespan of the installation.
       Attaches repayment obligation to property,
        not the individual; payments are passed to the
        next owner until the measures are paid off.

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    San Antonio PACE Goals

       Will be accessible to residents and
        businesses of all income levels.
       Will incorporate both solar and energy
        efficiency upgrades to properties.
       Will be sustainable, scalable, and flexible; it
        will be self sufficient with little to no public
        financial support.

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      Program                                                                Bexar County
                                                                             Tax Collector

      Relationships

              Special
            Assessments      CI TY HALL    Program Applications

             Financing                      Program Information
             Proceeds
Financing                   Program
                                                                  Property
Mechanism                 Administration
                                                                   Owner




                                                     Builder /
                                                     Installer


                                                                                CPS
6                                                                              Energy
                                         Program Coordination
                 Current Situation                              PACE Implementation

                                                                                                    Awareness /




                                                                         San Antonio PACE Program
                          Financing                                                                 Education
            Audit /
          Evaluation
                                                                                                    Enrollment
                                           Installation
                                                                                                    Audit /
                                                                                                    Evaluation
                                                                                                    Financing
    Enrollment                                Rebates /
                                             Tax Credits                                            Installation
                        Homeowner                          Homeowner                                Rebates /
                                                                                                    Tax Credits
                                                                                                    Measurement
                                                                                                    & Verification
          Awareness /                 Measurement
           Education                  & Verification

       • Lack of awareness & participation • Increased market participation
       • Citizen responsible for project   • One-stop coordination of projects from
         coordination                        enrollment through implementation
7      • Unknown impact & results          • Measured impact & results
                          Participant Process
    1.    Application: Participant must release access to utility bill
    2.    Home Energy Audit: From city-approved contractor. Results
          determine which measures to install. Cost of audit incorporated
          into loan.
    3.    Cost Estimates: Participants obtain written "not to exceed"
          estimates from pre-approved contractors.
    4.    Review of Proposal: Review of audit and bid information to
          ensure the proposed measures have a positive savings to
          investment ratio.
    5.    Obtain Funding: City obtains funding through financing
          mechanism (TBD)
    6.    Notice to Proceed: Issued to contractors.
    7.    Completion of Projects: Inspection by City or PACE Program
          Administrator.
    8.    Contractor Payment: City or its designee will directly pay
          contractor.
    9.    Repayment: Loans repaid via assessments on participant’s tax bill
    10.   Measurement and Verification: Review of energy consumption
          Determine program performance and which measures have
          greatest impact.
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    Proposed Eligible Measures

    Renewable Energy           Energy Efficiency

       Solar Electric            Air sealing and ventilation
                                  Insulation
       Solar Thermal
                                  Space Heating and Cooling
       Geothermal
                                  Water Heating (including
       Peak storage devices
                                   solar hot water)
                                  Windows, Doors and
                                   Skylights
                                  Reflective Roof

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     Measuring Performance

        PACE Program Administration will coordinate with
         CPS Energy to collect and analyze information
         related to program performance:
         –   Consumption Metrics:
                 Energy Savings (Electricity / Natural Gas / Propane)
                 Carbon (and other emissions) savings
         –   Financial Metrics:
                 Project Cost per participant
                 Annual Energy Savings (in dollars) per participant
                 Payback Period (years) per participant
                 Savings to Investment Ratio per participant
                 Jobs Created

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     Outcomes

        Reduce energy consumption in both the residential and
         commercial sectors, saving residents and business owners
         money.
        Allow San Antonio to expand their green jobs workforce in
         the home improvement contractor and renewable energy
         sectors.
        Provide opportunities for local financial institutions to invest in
         environmentally sustainable projects that have modest
         returns and a high degree of security.
        Be implemented at no cost to taxpayers; all costs are
         covered by program participants.

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