Seminario sobre el programa PACE: innovador mecanismo de financiación de mejoras de eficiencia energética en edificios residenciales y comerciales. Invitada especial por el Consulado de Estados Unidos en Barcelona: Jane Elias, directora del programa PACE en Sonoma County (California): del proyecto piloto a la creación de un mercado de 4.000 millones de dólares en la economía verde. Mayo 2017

1. A Success Story
From the Pilot Project in Sonoma to a
$4 Billion Dollar Market
Jane Elias
Sonoma County Energy Independence
Program Manager
May 2017

2. County of Sonoma Energy and Sustainability Division
Who We Are and What We Do
We assist customers with initiating and completing building
efficiency upgrades, installation of renewable energy
systems and storage, implementing sustainable practices,
and retiring fossil fuel vehicles.
A resource for information, tools, services and financing options.

3. Public Needs We Serve
Filling the gaps that private industry does not offer
Save Money
Healthier Buildings
Lower Emissions
Comfort Save Water
Energy Independence
Save Energy

4. Why PACE in Sonoma County
Greenhouse Gas Emissions in Sonoma – Exis=ng Building Sector
31%
2%53%
2%
3% 0.3%
1%
8%
Building Energy
Stationary Sources
On-Road Transportation
Off-Road Transportation
Solid Waste
Wastewater Treatment
Water Conveyance
Agriculture

5. Climate Change
Climate change is a local, human issue

6. Global PerspecOve
Geographical context and sta=s=cs
Sonoma County
PopulaOon: 503,000
Size: 1,768 Miles2
State of California
PopulaOon: 39.14 M
Size: 163,696 Miles2
Country of Spain
PopulaOon: 46.56 M
Size: 195,364 Miles2

7. What is PACE and Why Consider it?
Background
Property
Assessed Clean
Energy

8. Property Assessed Clean Energy (PACE)
A financing op=on that works
Property Assessed Clean Energy (PACE) is a financing opOon that
allows property owners to install permanently affixed energy
efficient improvements, water conservaOon measures and energy
generaOon projects
Authorized by California State law in 2008 (AB 811, AB 474 and
SB555). Allows jurisdicOons to offer financing to property owners
for the purchase and installaOon of these improvements
Repayment is made through the property tax bill process

9. Why Consider PACE Financing
Adding PACE as a resource to your community
• AlternaOve financing source
• Expand availability of project financing
• Consumer protecOons
• Address climate goal iniOaOves
• Create local jobs
• Contractor support and resource
• Standardized data tracking and validated
results

10. Advantages of PACE
What sets PACE apart from other types of financing
Easy qualificaOon process – current status on property taxes and
exisOng liens
Assessments are acached to the property, not the person
Assessment has the ability to carry forward to the next owner
Varied payback terms – long term payback allows for a lower
payment to be offset by energy savings
The interest may be tax deducOble

11. Applicant Eligibility
The underwri=ng criteria
• Improvements permanently affixed to the property
• Within geographical boundaries of the county
• Applicants are legal owner(s) of property
• Current on exisOng mortgage(s)
• Current on property taxes
• No bankruptcy
• No involuntary liens on the property
• Request less than 10% value of the property
• All exisOng liens plus the requested financing is less
than 100% lien to value raOo

12. Local Value of Energy Efficiency
What it can do for you and your community
Cost savings and local reinvestment
Workforce development and job creaOon
Prudent use of resources
Enhanced properOes and building performance
Profit

13. Benefits of PACE
What it can do for the property owner
PotenOal for lower electric, gas and water uOlity bills
Improved indoor air quality and comfort
Improvements can be made with low or no up-front costs
Tax benefits: PACE assessments do not hinder ability to claim
energy tax credits and deducOons
Improvements funded through PACE may increase property
value

14. Consumer Assurances
Making sure protec=ons are in place for an unregulated instrument
All projects require building permits and are inspected by a local
building official
ParOcipaOng contractors are verified with each applicaOon to
ensure their status with the California State License Board is
acOve and in good standing
ParOcipaOng contractors are required to carry at least $1M of
commercial general liability insurance
Costs for projects are checked to make sure they qualify and
meet the Program’s reasonable cost

15. How to Begin the Process
Steps to implemen=ng PACE financing
Program
Start-Up

16. Groundwork – Do your research!
Prepara-on – Know your audience; know how
PACE benefits the official; know the posiOve
effects to the local economy; know how PACE
efforts fit into the strategic plan; acend their
events
Execu-on – Bring key stakeholders in early and
get to the point where they understand it
Follow up – Keep them updated; provide
educaOon on the benefits and impacts of PACE;
provide informaOon and stories that resonate
with them and the public
The Road to ImplemenOng PACE
Ways to get PACE going in your community
Groundwork
PreparaOon
ExecuOon
Follow-up

17. • IdenOfy Key Staff
Meet and Discuss
Provide InformaOon and Talking Points
• Highlight Government's Role
Connector
Supporter
Facilitator
• Encourage Partners
Provide Support
Outreach to Elected
StarOng the Process
Connec=ng with elected officials and decision makers

18. Funding
Considera=ons and possibili=es are abundant
AnOcipate a greater financial need from the start
Do research on ways to fund it and make it
sustainable
Think creaOvely
Work together
Start BIG

19. Sonoma’s Financing Warehouse
Municipal Example - How it Works
Twice a
Year
Property Tax
Payments
County
Treasury Pool
$45M
Water Agency
$15M
Sonoma
County Public
Financing
Authority
SCEIP
Property
Owner
$
Bonds
Debt Services
$
$ $ Investors and
Open Market
Financing

20. Administrators
Who is the team? Consider the opera=ons and finance

21. Working with Lenders
Lenders may have concerns about property owner’s par=cipa=on

22. Jobs and Workforce Development
A solu=on for job crea=on or reten=on

23. Storefronts and Websites
You can have one or the other, or both, decide what works best

24. Tools and ApplicaOons
Process, collect, store, track, and monitor right from the start

25. MarkeOng
Consider an Adver=sing Budget in the Ini=al Costs

26. Legal Team
Have a strong legal team for Opera=ons and Finance

27. Your Program will Flourish
Take =me to create the right program for your needs
Work with Lenders
Plan for a Storefront and/or Web Site
Tools and ApplicaOons
Funding
Administrators
MarkeOng
Legal Team

28. Sonoma PACE Results
Energy Independence Program by the numbers
March 2009 – March 2017
35,767 PACE financing inquiries
2,386 ApplicaOons funded
$76.4 M Amount funded
$26.1 M Funding available
$33.8 M Current porqolio outstanding
58,761 Metric Tons CO2 reduced
1,528 Jobs created (ACEEE formula*)
157 ParOcipaOng contractors
89% Jobs done by local contractors
0.23% Tax delinquency rate
0.00% Default rate
* Source: American Council for an Energy Efficient Economy
(ACEEE) How Does Energy Efficiency Create Jobs fact sheet

29. Types of Improvements Financed
Energy Efficiency = 58% | Genera=on = 40% | Water Conserva=on = 2%
40%
2%
10%
6%
3%
12%
19%
3% 2%
2% 1%
Solar PV
Solar Thermal
HVAC
Cool Roof
Water Heater
Sealing & Insulation
Windows & Doors
Lighting
Ventilation
Water Cons.
Other Energy Efficiency

30. Thank You
Jane Elias
Sonoma County Energy Independence Program Manager
Energy and Sustainability Division