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HomeMy WebLinkAboutMINUTES - 09092014 - C.150RECOMMENDATION(S): REFER to the Internal Operations Committee the matter of Property Assessed Clean Energy (PACE) programs for study and recommendation. FISCAL IMPACT: No fiscal impact, as this is a referral for study only. BACKGROUND: Property Assessed Clean Energy (PACE) programs allow qualifying property owners to finance energy efficiency, water efficiency, and renewable energy projects on existing residential and commercial structures through a special tax assessment on the property. PACE financing involves a property owner voluntarily agreeing to enter into a contractual assessment with a PACE financing provider. PACE programs provide capital for construction of energy efficiency improvements on the property, and a levy is placed on the property whereby the contractual assessment is then repaid in installment payments placed on the property tax bill and collected by the County through the property tax collection process. As with other property assessments, the County is able to charge a fee to offset the costs of collection. By providing viable financing options to increase the number of rooftop solar systems and energy efficiency projects, PACE programs are another mechanism to implement California’s and the County’s energy, environmental, and greenhouse gas policy goals, and help to fuel the economy through job creation. PACE programs also lower energy costs for property owners. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/09/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Mary N. Piepho, District III Supervisor Contact: I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 9, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: IOC Staff, County Building Official, DCD Interim Director, Auditor-Controller, Treasurer-Tax Collector C.150 To:Board of Supervisors From:David Twa, County Administrator Date:September 9, 2014 Contra Costa County Subject:REFERRAL OF PACE PROGRAM TO THE INTERNAL OPERATIONS COMMITTEE BACKGROUND: (CONT'D) On June 22, 2010, the Board of Supervisors adopted Resolution No. 2010/331 authorizing the County to participate in a PACE financing program known as the CaliforniaFIRST Program. However, since that time, CaliforniaFIRST has not initiated program operations in Contra Costa County. Many developments related to clean energy financing have occurred since the Board's resolution to join CaliforniaFIRST in 2010. These include regulatory intervention by the federal government, lawsuits challenging this federal intervention in which the federal government's right to intervene was upheld, changes to State law expanding the authority to create such financing districts, and the emergence of additional firms proposing to operate Clean Energy Financing Districts within the county. The Federal Housing Financing Agency's policy that it will not purchase residential loans on properties encumbered by PACE liens may deter residential owners from PACE financing in favor of conventional loans. Consequently, most firms seeking to establish Clean Energy Financing Districts in California have focused on the commercial lending market, although some of the same issues impact that market. In light of a renewed interest in offering PACE lending as an option to residential property owners within the county, I am recommending that this matter be referred to the Internal Operations Committee for further study and recommendation.