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Energy Conservation and Management Division
1220 South St. Francis Dr.
Santa Fe, NM 87505
P: (505) 476-3310
F: (505) 476-3322
 
 Clean Energy Incentives: Property Assessment Clean Energy (PACE) Bond Financing

 

Recent PACE news

  • March 1, 2012 -By promoting mortgage refinancing, Obama could win big
  • September 20, 2011 - What Have We Learned from Energy Efficiency Financing Programs?
  • September 19, 2011 - Tax Plan to Turn Old Buildings ‘Green’ Finds Favor
  • September 6, 2011 - NY Times article: Recent Court Ruling Favors White House-Backed Home Energy Efficiency Program: After a series of court rulings this year, the fate of a White House-supported home energy efficiency program continues to hang in the balance.
  • August 29, 2011 - On Friday, August 26, Judge Claudia Wilken (US District Court), issued a ruling on several key items of the lawsuits filed by the State of CA, Sonoma, Palm Desert, Placer and the Sierra Club. The Court denied FHFA's request to have the case dismissed and granted a preliminary injunction (filed by Sonoma County and supported by the State) requiring the FHFA to begin an official federal rulemaking on PACE. (In the meantime, the Court left in place the current FHFA rules against PACE.) Updated list of all HR 2599 co-sponsors and supporters of the legislation.
  • August 16, 2011 - PACE: Not Dead, Just Sleeping
  • August 11, 2011- University of California Environmental Law and Policy Blog
  • July 20, 2011 - The "PACE Assessment Protection Act of 2011" (H.R. 2599) was introduced , with bipartisan support, by U.S. Congresspersons Nan Hayworth, Daniel Lungren and Mike Thompson. The bill addresses potential concerns by establishing strict underwriting criteria and lender protections; it guarantees that PACE assessments will only be allowed for credit-worthy participants, and that improvements must be revenue positive.
 

The Federal Housing Finance Agency is challenging PACE (Property Assessed Clean Energy) programs that help homeowners cover the initial purchase and installation costs of renewable-energy systems.

What’s Next for PACE Programs? Fannie and Freddie, Federal Fixes, Lawsuits, and More (teleconference recording, August 2010)
 

PACE Program BrochureECMD teamed with the New Mexico Association of Counties (NMAC) to help develop standards, model ordinances, and guidelines in order to help New Mexico’s counties implement Property Assessment Clean Energy Bond (PACE) financing. PACE financing is an innovative approach to spreading out the costs of energy improvements over a long period. This has the effect of greatly reducing the up-front costs of renewable energy while more closely matching the costs of an energy improvement with the provided benefit on a year to year basis. PACE programs have been implemented across the country and new programs are being formed rapidly.


Energy Financing Districts enable local governments to raise money through the issuance of bonds to fund clean energy projects. The financing is repaid over a set number of years through a “special tax” or “assessment” on the property tax bill of only those property owners who choose to participate in the program. The financing is secured with a lien on the property, and, like other taxes, is paid before other claims against the property in the case of foreclosure. There is little or no up-front cost to the property owner, and if the property is sold before the end of the repayment period, the new owner inherits both the repayment obligation and the financed improvements. Programs have the potential to create energy savings for property owners and supply capital to a growing section of New Mexico’s economy.


In the 2009 legislative session, New Mexico’s lawmakers passed two bills that enable the creation of PACE programs on the county level. Through Senate Bill 647 and House Bill 572, county and municipal residents can secure the up-front capital to pay for a renewable energy system and pay it back through a line item on their property taxes.

Currently, NMAC is developing materials to assist counties in successfully organizing and financing PACE programs. Once the materials are complete, NMAC and ECMD will be providing PACE workshops to further support counties and municipalities.

Additional Information

Manual for Establishing Renewable Energy Financing Districts (Create Renewable Energy Jobs and Economic

      Development in Your County or Municipality)

Santa Fe County Solar Financing

Bringing PACE Financing to New Mexico

PACE Letter

PACE Letter 2


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