Property Accessed Clean Energy, or PACE, is a way for homeowners and businesses to finance renewable energy and energy efficiency upgrades through an established bond program at the City, County or State level.  The low-interest loans/bonds are typically easier to obtain and cheaper than going to a bank on your own.  The PACE loans get paid back as a tax assessment.  Most programs allow for building owners to opt for a 20- year assessment on their property taxes.  If the home or business is sold, the new owner continues the payments.
 
Several states including Missouri have jumped on the PACE band wagon.  Governor Nixon signed the PACE legislation on July 12th enabling Cities and Counties to establish special Clean Energy Development Boards with the authority to issue the low-interest bonds.  Twenty three other states as well as several cities and counties have recognized the immediate and long-term benefits of providing for energy upgrades upfront.  By helping to spread out the initial investment communities see reduced energy consumption, economic influx, job creation as well as decreases in carbon and other pollutants.  Building owners are able to improve their property and the occupants in homes and businesses are provided better living spaces.  The program requires that the monthly energy savings must be more than the assessment, which reduces the cost of ownership immediately thereby improving the cash flow of participants.
 
Sounds like a win- win situation all around right? 

Unfortunately the PACE program has hit a snag.  Federally backed mortgage companies Fannie Mae and Freddie Mac have argued that PACE programs put the security interest of mortgage companies at risk as the loans take on a first or senior to the mortgage.  All is not lost however; The Federal Housing Financing Agency, which oversees Fannie May & Freddie Mac, says they are working to resolve the issue and legislation has been introduced by Congressmen Michael Thompson to protect PACE (H.R. 5766).  Many see the issue as a matter of a states right to utilize assessment districts.  You can learn more about the fight for PACE and what you can do to help to ensure that it gets back on track by visiting:  http://pacenow.org  and http://votesolar.org

Business leaders, including The Energy Savings Store and representatives from 17 counties and 15 cities attended a recent training sponsored by Renew Missouri to learn more about how to establish a PACE program in their communities.  Many are moving ahead laying the ground work to establish their Clean Energy Development Boards so they will be ready to once the mortgage issue is resolved.  Contact your local municipality or county government and ask if they are planning to establish a PACE program.

Carla Klein represents The Energy Savings Store in D.C. for Clean Energy Jobs Legislation

The Energy Savings Store joined hundreds of business leaders from across the nation in Washington D.C. to take the message to our leaders that the time is now to act on clean energy legislation.  “We traveled to the nation’s capitol to urge our leaders to pass comprehensive energy and climate legislation that will create millions of new jobs, make our country more energy independent and protect the environment for future generations,” said Carla Klein, Marketing and Policy Coordinator for The Energy Savings Store.

 “It was very exciting to be part of such a diverse group of business leaders that understand our economic and national security depends on the US being a leader in the new energy economy”, explained Klein.  “We need new industries made in America that work for America.  It will take a range of businesses to address our nation’s energy needs and tackle climate change, what we saw in DC was the great American ingenuity ready to meet the challenge.”

More than 150 businesses from more than 30 states joined to support comprehensive energy & climate legislation. Participants in the We Can Lead effort met with top Obama Administration officials and dozens of Senators to make their case for action this year.

Read more on this story here

We Can Lead is sponsored by the Clean Economy Network and Ceres’ Business for Innovative Climate and Energy Policy (BICEP) .

The slow and tedious process of working out the details on how to implement Proposition C continues.  Prop C, passed by Missouri voters 2 to 1 last fall, mandates that investor owned utilities (IOUs) increase the amount of electricity generated from renewable sources to 15% by 2021, 2% of which must come from solar photovoltaics.  The law requires IOUs to provide a $2.00 rebate per installed watt of solar PV power starting January 1, 2010.  The rebate is limited to $50,000 for a 25kW system.

The Public Service Commission, charged with overseeing Missouri utility rates, has been conducting stakeholder meetings between Kansas City Power & Light, Ameren, solar & wind installers and other interested parties to determine the highly detailed rules for how to implement the renewable energy requirements.  Prop C rules will set the amount of renewable energy required each year and how the funding for the solar rebates and renewable energy credits (RECs) will be distributed, as well as determine if the renewable energy will be required to be generated and purchased in Missouri, or out of state.  While the $2.00 per watt rebates have largely been agreed upon, the market price and purchase requirements of the RECs is still under discussion. 

The Energy Savings Store has teamed up with other solar industry leaders in the state to form an industry trade association, MOSEIA (Missouri Solar Energy Industry Association).  MOSEIA is taking part in the Public Service Commission (PSC) meetings and working to ensure that the PSC develops appropriate rules for Proposition C.  We want to ensure that solar rebates and benefits stay in Missouri, helping to bolster our energy independence and creating jobs within Missouri’s borders.

So far much of the suggested language and requirements submitted by the solar industry have not been adopted.  The latest drafts do not include the language MOSEIA is pushing for, including requirements that utilities pay for at least 10 years of renewable energy credits from customers upfront, a simplified contract for customers and the requirement that the renewable energy come from Missouri.  We will continue to make our case for these and other requirements that benefit Missouri citizens.

The next steps are for PSC staff to present the draft rules, including the suggestions of various stakeholder groups, to the Commissioners.  The Public Service Commissioners will hold a hearing open to the public to collect input from the citizens.  This will be an important opportunity for you to submit comments asking the commission to establish a long-term energy plan that includes renewable energy from within Missouri’s borders.  

Missouri currently relies on Wyoming coal for more than 85% of our energy supply.  It is just good common sense to diversify our energy source, so that we don’t have all of our “eggs” in the coal “basket.”  Reliable renewable energy keeps Missouri businesses competitive and will protect homeowners from price spikes.  We need to keep our energy dollars in state and invest in clean renewable energy that creates jobs here and provides energy from non-depletable sources like the sun and wind.  

Coupled with new federal tax incentives, electricity generating solar photovoltaics are more affordable than ever in Missouri, and the industry is expected to grow quickly in 2010.  The solar industry is well positioned to meet that demand, producing Missouri jobs, supporting small businesses, and growing our local economies.

We expect the Public Service Commission hearing to be held within the next couple of months.  Watch for the announcement through our newsletter.  Please join the solar industry leaders in expressing your support of clean renewable energy for Missouri!

Thanks to Carla Klein for submitting this article.

President Obama signs stimulus bill to promote renewable energy

Changes have begun to take form in new legislation supporting renewable energy.  A number of new provisions for solar and wind energy have been included in the economic recovery bill, signed into law by President Obama on February 17.

DOE Renewable Energy Grants: Given the economic downturn, many traditional solar project financiers were left without the tax appetite necessary to put the 30 percent solar tax credit to good use. This provision puts solar financing back on track by offering DOE grants as an alternative to the tax credit.  This is a big incentive, because a grant provides immediate cash without having to wait to claim the tax credit.  To be eligible for the program, the project must commence construction in 2009 or 2010.

Clarification on Municipal Solar Finance Programs: Around the country, cities are implementing innovative finance programs that help residents and businesses implement solar technologies. As the tax code was written, there was some uncertainty as to whether participants in these programs could claim the federal solar tax credit. This provision ensures that businesses and individuals can qualify for the full amount of the solar tax credit, even if projects are financed with local development bonds or other subsidized energy financing.

Loan Guarantee Program: This provision is especially helpful for the development of large-scale solar power plants. It establishes a temporary DOE loan guarantee program for renewable energy and electric power transmission projects. The program is available for any renewable project that commences construction by September 30, 2011.  The program provides $6 billion in renewable funding.

Manufacturing Investment Credit: Everyone wants manufacturing jobs, and this provision will help attract solar manufacturing facilities to the US. It provides up to $2.3 billion to fund 30 percent investment tax credit for facilities engaged in the manufacture of advanced energy technologies. Projects must be certified by the Treasury, in consultation with the Secretary of Energy, through competitive bidding.

Solar Water Heating: This provision gives solar hot water heaters the same treatment as solar PV panels. It repeals the $2,000 monetary cap, making solar water heating property eligible for the full 30 percent tax credit.

Grant Program Extended to Wind Power Generation:  New legislation includes a grant program to monetize tax incentives for renewable energy, and provides a three-year extension of the production tax credit.  The bill also includes provisions to promote transmission for renewable energy, and a removal of the cost cap on the small wind investment tax credit of $4,000.  Under the new law, a full 30% grant will be available to offset the cost of installing a system.

In the coming weeks, the implementation rules will be put in place. Check our website regularly for updates.