Brief overview of the process:
Step 1: Learn about PACE, and what it can do for your municipality
Step 2: Familiarize yourself with the law, the programs and choices available, and determine what you wish to achieve by adopting a local PACE program.
Step 3: Introduce the Ordinance.
Step 4: Engage one or more PACE Administrators.
Already know what PACE is? Skip to Step 2.
STEP 1: Learn about PACE, and what it can do for your municipality:
A Simple Idea
PACE (Property Assessed Clean Energy) is a simple and effective way to finance energy efficiency, renewable energy, and water conservation upgrades to buildings. PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any property – homes*, commercial, industrial, non-profit, and agricultural.
[*New Jersey PACE does not offer a residential program,
and while the current statute does not exclude residential PACE, Governor Christie’s Conditional Veto makes it clear that the administration is still opposed to it, based on the FHFA’s objections.]
PACE Adds Value
Property owners across the US are using PACE because it saves them money and makes their buildings more valuable. PACE pays for 100% of a project’s costs and is repaid for up to 30* years with an assessment added to the property’s tax bill. PACE financing stays with the building upon sale and is easy to share with tenants. State and local governments sponsor PACE financing to create jobs, promote economic development, and protect the environment.
[*Unlike other states, New Jersey
offers PACE terms of up to 30 years.]
Nearly half the energy we consume, and three quarters of the electricity we generate in the United States is used to heat, cool, light, and otherwise operate our buildings. Most of this energy is created by burning fossil fuel, so reducing its consumption in a meaningful way will depend on reducing energy use in buildings. A number of barriers have thus far limited wide scale adoption of energy efficiency and renewable energy measures.
PACE overcomes many of the challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings. PACE financing solves the upfront cost barrier by providing 100% financing for project costs. Long term repayment of up to 30* years makes longer payback projects immediately cash flow positive and buildings more valuable.
[*The final repayment term is based on
the average useful life of the improvements.]
Clear Benefits for Municipalities and their Constituents
Property owners are more focused today than ever before on energy and water conservation. PACE helps them save money by lowering energy costs. Long term pay back makes PACE funded projects immediately cash flow positive. “PACE pays you to improve your property.”
Creates Local Jobs
PACE funded projects create more jobs and economic activity. According to the 2011 study by ECONorthwest, every $1 million in project spending results in 15 new jobs and $2.5M in economic output. “This is what’s possible now in your community.”
Helps the Environment
PACE helps communities achieve important energy and water conservation goals. Efficiency projects upgrade old equipment which reduces energy use, while renewables replace fossil fuels and reduce greenhouse gas emissions. Resiliency improvements make your buildings and your community stronger, better prepared for emergencies, and more self-sufficient.
Makes Buildings and Communities More Resilient
In New Jersey, PACE can be used to finance hurricane-resistant construction, flood proofing, water conservation, shelters, and other resiliency improvements. “PACE projects help property owners both adapt to and mitigate the consequences of climate change.”
No Cost to the Town or Taxpayer
The municipality will be reimbursed for any additional administrative costs involved in registering the Special Assessment, collecting payments, etc. so there is no cost to the taxpayer.