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PACE energy-efficiency loan program faces delays
July 18, 2010
by Jeffrey Tomich, StlToday.com
Is Missouri's newest and boldest initiative to encourage energy savings doomed before it takes root?
Gov. Jay Nixon signed a bill on Monday enabling Property Assesses Clean Energy (PACE) programs, which allow cities and counties to issue bonds to help home owners finance energy efficiency upgrades or solar panel installation. Money from the bond sales is lent to property owners, who repay it over a period of up to 20 years through special property tax assessments.
PACE laws have been adopted in 22 states as a way to cut energy use and create jobs by making it easier for homeowners to cut energy use and shrink utility bills.
But Fannie Mae and Freddie Mac, which own or guarantee more than half of the mortgages in the U.S., have been directed to steer clear of PACE loans by their regulator, the Federal Housing Finance Agency. The Office of the Comptroller of the Currency, which regulates national banks, and the Mortgage Bankers Association have expressed similar concerns.
The issue: Like property taxes, PACE liens take priority over mortgages. That makes the bonds easier for municipalities to sell. But if a home is foreclosed on, the liens are paid before the mortgage lender can recoup any money.
That fact has spooked mortgage giants and FHFA, which said in a July 6 letter that PACE loans "pose a significant risk to lenders" and "are not essential for successful programs to spur energy conservation."
The position in effect shut down PACE programs across the country.
California, which pioneered PACE financing, is fighting back. The state's attorney general sued Fannie, Freddie and FHFA on Wednesday, claiming their opposition is threatening jobs and access to federal funding.
In Missouri, energy efficiency advocates acknowledge the uncertainty surrounding PACE but are working to roll out programs anyway, hoping the conflict is resolved.
On Friday, energy advocacy group Renew Missouri held a PACE implementation training conference in Columbia for about 100 energy auditors, solar installers and local government officials.
"Our view is that these concerns and problems will be resolved," said Byron DeLear, a founding partner of Energy Equity Funding LLC, a company that hopes to administer PACE programs in the state.
DeLear also heads the Missouri Association of Accredited Energy Professionals, a year-old state association of energy auditors and contractors. MAAEP helped push PACE legislation in Jefferson City and has a lot riding on the success of the programs.
PACE is expected to spur millions of dollars in efficiency and renewable energy upgrades across the state. That could mean hundreds of new jobs for energy auditors, contractors and home remodelers.
DeLear projects that 80 percent of PACE loans in Missouri will be used to finance energy efficiency projects averaging about $5,000. The rest will also incorporate renewable energy systems such as solar panels with those projects averaging about $25,000. Statewide, the average PACE loan would be about $9,000, he estimates.
Continue reading....
by Jeffrey Tomich, StlToday.com
Is Missouri's newest and boldest initiative to encourage energy savings doomed before it takes root?
Gov. Jay Nixon signed a bill on Monday enabling Property Assesses Clean Energy (PACE) programs, which allow cities and counties to issue bonds to help home owners finance energy efficiency upgrades or solar panel installation. Money from the bond sales is lent to property owners, who repay it over a period of up to 20 years through special property tax assessments.
PACE laws have been adopted in 22 states as a way to cut energy use and create jobs by making it easier for homeowners to cut energy use and shrink utility bills.
But Fannie Mae and Freddie Mac, which own or guarantee more than half of the mortgages in the U.S., have been directed to steer clear of PACE loans by their regulator, the Federal Housing Finance Agency. The Office of the Comptroller of the Currency, which regulates national banks, and the Mortgage Bankers Association have expressed similar concerns.
The issue: Like property taxes, PACE liens take priority over mortgages. That makes the bonds easier for municipalities to sell. But if a home is foreclosed on, the liens are paid before the mortgage lender can recoup any money.
That fact has spooked mortgage giants and FHFA, which said in a July 6 letter that PACE loans "pose a significant risk to lenders" and "are not essential for successful programs to spur energy conservation."
The position in effect shut down PACE programs across the country.
California, which pioneered PACE financing, is fighting back. The state's attorney general sued Fannie, Freddie and FHFA on Wednesday, claiming their opposition is threatening jobs and access to federal funding.
In Missouri, energy efficiency advocates acknowledge the uncertainty surrounding PACE but are working to roll out programs anyway, hoping the conflict is resolved.
On Friday, energy advocacy group Renew Missouri held a PACE implementation training conference in Columbia for about 100 energy auditors, solar installers and local government officials.
"Our view is that these concerns and problems will be resolved," said Byron DeLear, a founding partner of Energy Equity Funding LLC, a company that hopes to administer PACE programs in the state.
DeLear also heads the Missouri Association of Accredited Energy Professionals, a year-old state association of energy auditors and contractors. MAAEP helped push PACE legislation in Jefferson City and has a lot riding on the success of the programs.
PACE is expected to spur millions of dollars in efficiency and renewable energy upgrades across the state. That could mean hundreds of new jobs for energy auditors, contractors and home remodelers.
DeLear projects that 80 percent of PACE loans in Missouri will be used to finance energy efficiency projects averaging about $5,000. The rest will also incorporate renewable energy systems such as solar panels with those projects averaging about $25,000. Statewide, the average PACE loan would be about $9,000, he estimates.
Continue reading....
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Missouri General Assembly Pass Bipartisan Energy Bill
May 15, 2010
Jefferson City, MO -- The Missouri General Assembly passed a bipartisan efficiency and renewable energy bill that will create in-state jobs and reduce energy bills on Friday, May 14th.
The policy, called PACE (Property Assessed Clean Energy), is state-enabling legislation that allows cities and counties to opt into a program that pays for up to 100% of the upfront costs of renewable energy and energy efficiency renovations for homes and businesses.
Homeowners repay project costs gradually through a special assessment attached to their property taxes. The bill requires the financial savings to outweigh the special assessment on an annual basis, yielding projects that are cashflow-positive from the get-go. Upon sale of a home, the special assessment and energy savings are passed on to next owner. By spreading out the payments over time, the energy savings gained each month on electric bills make the upgrades cost-effective from day one.
PACE passed by a vote of 144-11 in the House this Friday, May 14th, as part of House Bill 1692.
“At the end of a very tense and at times partisan session, it is encouraging to see the Republicans and Democrats work together in passing this important new policy,” says Jason Hughes of Renew Missouri. Renew Missouri isthe clean energy group that worked this spring to educate legislators about the potential of PACE for homeowners, businesses, Missouri’s economy, and the environment.
"There are 2 million existing homes in Missouri, all of which are prime candidates for efficiency upgrades. Updating these homes will require the work of thousands of energy auditors and insulation, window, and HVAC installers. PACE helps homeowners acquire up-front financing for these projects, and will put Missourians back to work,” says Byron DeLear, chair of the Missouri Association of Accredited Energy Professionals (MAAEP). MAAEP represents over a hundred efficiency businesses across Missouri.
PACE efficiency or renewable energy upgrades lower your electric bills and increase your home’s value. Homes with efficiency upgrades spend fewer days on the market and sell for a higher percentage of the listing price,” says Matt Belcher chairman of the Green Building Council of the St. Louis Home Builder's Association.
Dane Glueck, owner of Straight Up Solar and President of the Missouri Solar Energy Industries Association (MOSEIA), says “We hope that PACE will allow a whole new segment of the Missouri market to install solar panels on their property, and we’re ready for them. Whereas a few years ago we had less than 5 installers across the state, today there are at least 22 firms in Missouri equipped to size and install solar electric systems.”
In Missouri, PACE has widespread support from a broad coalition of groups including Kansas City Power and Light, Missouri Public Utilities Alliance, Missouri Energy Development Association, and various renewable energy and efficiency advocacy groups. Several cities, including St. Louis, St Louis County, Kansas City, Ferguson, and Creve Coeur have also expressed interest in creating a PACE program. 18 states have already passed legislation allowing cities to pursue PACE programs since 2007, and Missouri is one of nine states working to do so this year.
Jefferson City, MO -- The Missouri General Assembly passed a bipartisan efficiency and renewable energy bill that will create in-state jobs and reduce energy bills on Friday, May 14th.
The policy, called PACE (Property Assessed Clean Energy), is state-enabling legislation that allows cities and counties to opt into a program that pays for up to 100% of the upfront costs of renewable energy and energy efficiency renovations for homes and businesses.
Homeowners repay project costs gradually through a special assessment attached to their property taxes. The bill requires the financial savings to outweigh the special assessment on an annual basis, yielding projects that are cashflow-positive from the get-go. Upon sale of a home, the special assessment and energy savings are passed on to next owner. By spreading out the payments over time, the energy savings gained each month on electric bills make the upgrades cost-effective from day one.
PACE passed by a vote of 144-11 in the House this Friday, May 14th, as part of House Bill 1692.
“At the end of a very tense and at times partisan session, it is encouraging to see the Republicans and Democrats work together in passing this important new policy,” says Jason Hughes of Renew Missouri. Renew Missouri isthe clean energy group that worked this spring to educate legislators about the potential of PACE for homeowners, businesses, Missouri’s economy, and the environment.
"There are 2 million existing homes in Missouri, all of which are prime candidates for efficiency upgrades. Updating these homes will require the work of thousands of energy auditors and insulation, window, and HVAC installers. PACE helps homeowners acquire up-front financing for these projects, and will put Missourians back to work,” says Byron DeLear, chair of the Missouri Association of Accredited Energy Professionals (MAAEP). MAAEP represents over a hundred efficiency businesses across Missouri.
PACE efficiency or renewable energy upgrades lower your electric bills and increase your home’s value. Homes with efficiency upgrades spend fewer days on the market and sell for a higher percentage of the listing price,” says Matt Belcher chairman of the Green Building Council of the St. Louis Home Builder's Association.
Dane Glueck, owner of Straight Up Solar and President of the Missouri Solar Energy Industries Association (MOSEIA), says “We hope that PACE will allow a whole new segment of the Missouri market to install solar panels on their property, and we’re ready for them. Whereas a few years ago we had less than 5 installers across the state, today there are at least 22 firms in Missouri equipped to size and install solar electric systems.”
In Missouri, PACE has widespread support from a broad coalition of groups including Kansas City Power and Light, Missouri Public Utilities Alliance, Missouri Energy Development Association, and various renewable energy and efficiency advocacy groups. Several cities, including St. Louis, St Louis County, Kansas City, Ferguson, and Creve Coeur have also expressed interest in creating a PACE program. 18 states have already passed legislation allowing cities to pursue PACE programs since 2007, and Missouri is one of nine states working to do so this year.
Combined Heat and Power Symposium
March 1, 2010
Jefferson City -The Combined Heat and Power (CHP) Symposium, held March 1 in House Hearing Room 1, saw representatives of the utilities and industrials, regional CHP experts, legislators, and other stake holders come together to discuss passing legislation that would make implementing CHP in Missouri more appealing.
Cliff Haefke from the U.S. DOE Midwest Clean Energy Application Center and Mellissa Mullarkey from Recycled Energy Development both gave informative PowerPoint presentations outlining the current CHP capacity in the State, barriers preventing greater adoption of CHP, and strategies for mitigating these barriers. Afterwards, participants were encouraged to ask question and to talk about CHP from their perspective and based on their experiences. A lively and informative thirty minute discussion followed, during which multiple views were presented and variety of issues were addressed -such as price, transmission, and the role of the government. Though the session did not provide solutions to all of the challenges surrounding CHP, it did clearly provide momentum going forward in this legislative session.
Presentation: Clifford Haefke - Senior Research Engineer Energy Resources Center (ERC)
Presentation: Melissa Mullarkey - Recycled Energy Development, LLC
Jefferson City -The Combined Heat and Power (CHP) Symposium, held March 1 in House Hearing Room 1, saw representatives of the utilities and industrials, regional CHP experts, legislators, and other stake holders come together to discuss passing legislation that would make implementing CHP in Missouri more appealing.
Cliff Haefke from the U.S. DOE Midwest Clean Energy Application Center and Mellissa Mullarkey from Recycled Energy Development both gave informative PowerPoint presentations outlining the current CHP capacity in the State, barriers preventing greater adoption of CHP, and strategies for mitigating these barriers. Afterwards, participants were encouraged to ask question and to talk about CHP from their perspective and based on their experiences. A lively and informative thirty minute discussion followed, during which multiple views were presented and variety of issues were addressed -such as price, transmission, and the role of the government. Though the session did not provide solutions to all of the challenges surrounding CHP, it did clearly provide momentum going forward in this legislative session.
Presentation: Clifford Haefke - Senior Research Engineer Energy Resources Center (ERC)
Presentation: Melissa Mullarkey - Recycled Energy Development, LLC
Energy Efficiency in Missouri
February 8, 2010
Watch Renew Missouri's Erin Noble on Labor Vision to discuss Energy Efficiency in Missouri and new state policy that can help Missourians save money on their electric bills and create new in-state jobs.
Watch Renew Missouri's Erin Noble on Labor Vision to discuss Energy Efficiency in Missouri and new state policy that can help Missourians save money on their electric bills and create new in-state jobs.