Under Assembly Bill 811, California property owners in special assessment districts may enter into voluntary contractual assessments to finance a range of authorized energy and water efficiency products and improvements. The primary goals of the bill are environmental – to lower greenhouse gas levels, and to reduce energy and water consumption. Additionally, this mechanism, called Property Assessed Clean Energy (PACE) financing, is viewed by cities and counties as a stimulus program that spurs economic growth and creates new local jobs.
CEDA and Dividend Finance/Figtree Financing PACE Partnership
In partnership with Dividend Finance, CEDA issues multi-jurisdictional bonds that attract private capital for PACE-qualified improvements. The program enables property owners to amortize payments for eligible improvements for up to 25 years for Commercial PACE and up to 20 years for Residential PACE. PACE financing provides long term, low interest rate funds with no money down, repaid as a line-item on property owners’ annual tax bill. Property owners in over 200 California jurisdictions can reduce their carbon footprints by investing in clean energy improvements with PACE funding.
This PACE initiative creates a streamlined and cost-free pathway for cities and counties to authorize a financing program for energy and water efficiency products benefiting property owners within their jurisdiction. Local municipalities that are not currently within Dividend Finance’s PACE service area can join by adopting two resolutions: one authorizing the jurisdiction to join CEDA, and the second confirming the jurisdiction’s intent to join Dividend Finance’s PACE program as well as allowing CEDA to conduct assessment proceedings.
Property owners completing PACE-qualifying projects benefit from higher real estate values, potentially large tax incentives from credits and accelerated depreciation, state cash rebates, diminished monthly energy costs, and hedging against escalating energy prices. PACE imposes no encumbrance on personal or business credit since financing is based on assessed property values. And PACE assessments freely transfer to subsequent property owners.
Key PACE-eligible measures for Commercial PACE:
- Eligible Projects
- Renewable energy
- Solar PV
- Battery Storage
- Building envelope
- Water heating & efficiency
- Heating & air conditioning
- Seismic upgrades