Overview of Property Assessed Clean Energy PACE Program

1
Overview of Property Assessed Clean Energy (PACE)
Program

• San Antonio Office of Environmental Policy
• December 16, 2009

2
Overview

• PACE methodology allows for the city to finance
  the cost of installing energy efficiency or
  renewable energy improvements on private
  property.
• Participants repay the costs of the installations
  through a assessment on their property tax bill.
• A lien against the property secures the repayment
  obligation.

3
Background

• Methodology introduced in Berkeley CA in 2008
• Enabled in Texas by HB 1937 (became effective
  9/1/09)
• San Antonio PACE Task Force has been meeting
  since August
• Representation from Solar San Antonio and solar
  industry
• The White House has determined PACE to be a
  priority mechanism for retrofitting buildings
  (access to grant opportunities).
• Operational Programs in Berkeley, Palm Desert,
  and Sonoma County California, as well as Boulder
  County Colorado.

4
Benefits of PACE

• Removes historical barriers to energy efficiency
  and renewable energy installations

• Eliminates initial capital requirements replaced
  with yearly payments that correspond to the
  lifespan of the installation.
• Attaches repayment obligation to property, not
  the individual payments are passed to the next
  owner until the measures are paid off.

5
San Antonio PACE Goals

• Will be accessible to residents and businesses of
  all income levels.
• Will incorporate both solar and energy efficiency
  upgrades to properties.
• Will be sustainable, scalable, and flexible it
  will be self sufficient with little to no public
  financial support.

6
Program Relationships
Collected Assessments
List of Participating Properties
Assessment Bill
Special Assessment
Special Assessments
Program Applications
FinancingProceeds
Program Information
Billing
Installation Costs
Notice to Proceed
Energy Use Data
Estimates
Rebates
Program Performance
6
7
Program Coordination
PACE Implementation
Current Situation
San Antonio PACE Program
Homeowner

• Increased market participation
• One-stop coordination of projects from enrollment
  through implementation
• Measured impact results

• Lack of awareness participation
• Citizen responsible for project coordination
• Unknown impact results

7
8
Participant Process

• Application Participant must release access to
  utility bill
• Home Energy Audit From city-approved
  contractor. Results determine which measures to
  install. Cost of audit incorporated into loan.
• Cost Estimates Participants obtain written "not
  to exceed" estimates from pre-approved
  contractors.
• Review of Proposal Review of audit and bid
  information to ensure the proposed measures have
  a positive savings to investment ratio.
• Obtain Funding City obtains funding through
  financing mechanism (TBD)
• Notice to Proceed Issued to contractors.
• Completion of Projects Inspection by City or
  PACE Program Administrator.
• Contractor Payment City or its designee will
  directly pay contractor.
• Repayment Loans repaid via assessments on
  participants tax bill
• Measurement and Verification Review of energy
  consumption Determine program performance and
  which measures have greatest impact.

8
9
Proposed Eligible Measures

• Renewable Energy
• Solar Electric
• Solar Thermal
• Geothermal
• Peak storage devices

• Energy Efficiency
• Air sealing and ventilation
• Insulation
• Space Heating and Cooling
• Water Heating (including solar hot water)
• Windows, Doors and Skylights
• Reflective Roof

10
Measuring Performance

• PACE Program Administration will coordinate with
  CPS Energy to collect and analyze information
  related to program performance
• Consumption Metrics
• Energy Savings (Electricity / Natural Gas /
  Propane)
• Carbon (and other emissions) savings
• Financial Metrics
• Project Cost per participant
• Annual Energy Savings (in dollars) per
  participant
• Payback Period (years) per participant
• Savings to Investment Ratio per participant
• Jobs Created

11
Outcomes

• Reduce energy consumption in both the residential
  and commercial sectors, saving residents and
  business owners money.
• Allow San Antonio to expand their green jobs
  workforce in the home improvement contractor and
  renewable energy sectors.
• Provide opportunities for local financial
  institutions to invest in environmentally
  sustainable projects that have modest returns and
  a high degree of security.
• Be implemented at no cost to taxpayers all costs
  are covered by program participants.