The Property Assessed Clean Energy (PACE) program provides low-cost, long-term financing for water and energy efficiency and conservation improvements to commercial and industrial properties. In 2013, the Legislature passed Senate Bill 385 (83R) allowing municipalities and counties to work with commercial lenders and property owners to pursue improvements using property assessments as a secure repayment mechanism.
Under a PACE arrangement, private property owners evaluate measures that achieve energy savings and obtain financing, repaid as an assessment on the building. The assessment mechanism allows access to low-cost, long-term capital to finance improvements to the property. By eliminating upfront costs, extending financing and simplifying the transfer of repayment obligations to new owners upon sale, PACE overcomes challenges that have hindered building energy efficiency and related projects.
The following organizations are available to help cities and counties create PACE districts in their areas: