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Agenda 04/25/2017 Item #11C04/25/2017 EXECUTIVE SUMMARY Recommendation to review the Property Assessed Clean Energy (PACE) program and direct the County Manager to develop a resolution for further consideration that adopts a third-party administered PACE program for residential and commercial properties or terminate the process. OBJECTIVE: To provide a summary of the Property Assessed Clean Energy (PACE) program and receive guidance as to whether the Board of County Commissioners (Board) should implement a plan that adopts a third-party administrated PACE program for residential and commercial properties. CONSIDERATIONS: In 2010, the State of Florida passed its PACE enabling statute, F.S. Section 163.08, in an effort to promote energy efficiency, renewable energy, and wind resistance/hardening measures for residential and commercial buildings throughout the State of Florida. In accordance with F.S. Section 163.08 (2)(b), a “Qualifying improvement” includes any of the following: 1. “Energy conservation and efficiency improvement, which is a measure to reduce consumption through conservation or a more efficient use of electricity, natural gas, propane, or other forms of energy on the property, including, but not limited to, air sealing; installation of insulation; installation of energy-efficient heating, cooling, or ventilation systems; building modifications to increase the use of daylight; replacement of windows; installation of energy controls or energy recovery systems; installation of electric vehicle charging equipment; and installation of efficient lighting equipment.” 2. “Renewable energy improvement, which is the installation of any system in which the electrical, mechanical, or thermal energy is produced from a method that uses one or more of the following fuels or energy sources: hydrogen, solar energy, geothermal energy, bioenergy, and wind energy.” 3. “Wind resistance improvement, which includes, but is not limited to: a. Improving the strength of the roof deck attachment; b. Creating a secondary water barrier to prevent water intrusion; c. Installing wind-resistant shingles; d. Installing gable-end bracing; e. Reinforcing roof-to-wall connections; f. Installing storm shutters; or g. Installing opening protections.” The PACE program is a method of public financing designed to have “qualifying improvements”, listed above, paid through a lien placed as a special non-ad valorem tax assessment on the property, which would allow project expenditures to be spread out over a term of up to 30 years and repaid as a part of a property owner’s tax bill. PACE financing is a land-secured assessment that property owners voluntarily undertake in order to secure 100% upfront financing, of a qualifying improvement, which includes fees and interest over the term of the PACE assessment. PACE loans are unique in that they take priority over other traditional liens, regardless of the date the prior liens were recorded, and utilize the uniform method of collection through the local tax collector for repayment. This could include, but would not be limited to, existing mortgages, federal and state grant liens, and other traditional legal instruments utilized to secure interest 04/25/2017 in a property. Since 2010, the program has struggled to achieve uniform acceptance. The program has been implemented and administered in several counties within the State of Florida, with both exclusive and non-exclusive programs. On June 8, 2010, the PACE program was originally considered by the Board of County Commissioners(Item 9A) . The Board ultimately determined not to move forward with the program since the PACE program faced many legal challenges, including the Florida’s Bankers Association challenging the constitutionality of the program. On October 15, 2015, the Florida Supreme Court upheld the constitutionality of the PACE statute and the local government’s authority to issue bonds to finance qualifying improvements. On November 15, 2016, staff provided the Board of County Commissioners with an overview of the program (Item 11A) . The Board showed interest in the program and directed staff to develop a resolution for further consideration that adopts a third-party administered PACE program for residential and commercial properties. On April 11, 2017, the Board of County Commissioners directed staff to provide additional information and an overview of the PACE program for further consideration (Item 11A) . County staff has been in communication with multiple PACE providers, who are requesting that staff bring the program forward as a viable option for property owners to fund improvements that they would not otherwise qualify for through conventional methods. The intent of this item is to inform the Board about the program, allow interested PACE providers to provide comment, and seek direction on next steps, if any. Should the Board wish to bring the program back at a future meeting for adoption, staff will include a resolution and a standardized membership agreement developed by the County Attorney's Office. FISCAL IMPACT: There is no fiscal impact as a result of the actions described in this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires a majority vote for approval. -HFAC GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. RECOMMENDATION: To direct the County Manager on further actions regarding the PACE program for residential and commercial properties or terminate the process. Prepared By: Gino Santabarbara, Principal Planner; Capital Project Planning, Impact Fees and Program Management Division, Growth Management Department ATTACHMENT(S) 1. Attachment 1 - F.S. 163.08 (PDF) 2. Attachment 2 - PACE MAP (PDF) 3. Attachment 3 - FL municipalities (PDF) 04/25/2017 4. PPT Property Assessed Clean Energy 4.25.17 (PDF) 04/25/2017 COLLIER COUNTY Board of County Commissioners Item Number: 11.C Doc ID: 3046 Item Summary: ***This item has been continued from the April 11, 2017 BCC meeting.*** Recommendation to review the Property Assessed Clean Energy (PACE) program and direct the County Manager to develop a resolution for further consideration that adopts a third-party administered PACE program for residential and commercial properties or terminate the process. (James French, Deputy Department Head, Growth Management Department & Gino Santabarbara, Principal Planner, Capital Project Planning, Impact Fees & Program Management Division) Meeting Date: 04/25/2017 Prepared by: Title: Senior Grants and Housing Coordinator – Capital Project Planning, Impact Fees, and Program Management Name: Gino Santabarbara 04/11/2017 11:18 PM Submitted by: Title: Division Director - IF, CPP & PM – Capital Project Planning, Impact Fees, and Program Management Name: Amy Patterson 04/11/2017 11:18 PM Approved By: Review: Growth Management Department Judy Puig Level 1 Division Reviewer Completed 04/18/2017 10:37 AM Capital Project Planning, Impact Fees, and Program Management Amy Patterson Additional Reviewer Completed 04/18/2017 10:38 AM Growth Management Department Jeanne Marcella Level 2 Division Administrator Completed 04/18/2017 12:45 PM Growth Management Department James French Additional Reviewer Completed 04/18/2017 4:48 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 04/18/2017 4:49 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 04/18/2017 4:50 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/19/2017 2:06 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 04/19/2017 2:37 PM Board of County Commissioners MaryJo Brock Meeting Pending 04/25/2017 9:00 AM ATTACHMENT #1 F.S. 163.08 Supplemental authority for improvements to real property Title XI COUNTY ORGANIZATION AND INTERGOVERNMENTAL RELATIONS Chapter 163 INTERGOVERNMENTAL PROGRAMS 163.08 Supplemental authority for improvements to real property. (1)(a) In chapter 2008-227, Laws of Florida, the Legislature amended the energy goal of the state comprehensive plan to provide, in part, that the state shall reduce its energy requirements through enhanced conservation and efficiency measures in all end-use sectors and reduce atmospheric carbon dioxide by promoting an increased use of renewable energy resources. That act also declared it the public policy of the state to play a leading role in developing and instituting energy management programs that promote energy conservation, energy security, and the reduction of greenhouse gases. In addition to establishing policies to promote the use of renewable energy, the Legislature provided for a schedule of increases in energy performance of buildings subject to the Florida Energy Efficiency Code for Building Construction. In chapter 2008-191, Laws of Florida, the Legislature adopted new energy conservation and greenhouse gas reduction comprehensive planning requirements for local governments. In the 2008 general election, the voters of this state approved a constitutional amendment authorizing the Legislature, by general law, to prohibit consideration of any change or improvement made for the purpose of improving a property’s resistance to wind damage or the installation of a renewable energy source device in the determination of the assessed value of residential real property. (b) The Legislature finds that all energy-consuming-improved properties that are not using energy conservation strategies contribute to the burden affecting all improved property resulting from fossil fuel energy production. Improved property that has been retrofitted with energy-related qualifying improvements receives the special benefit of alleviating the property’s burden from energy consumption. All improved properties not protected from wind damage by wind resistance qualifying improvements contribute to the burden affecting all improved property resulting from potential wind damage. Improved property that has been retrofitted with wind resistance qualifying improvements receives the special benefit of reducing the property’s burden from potential wind damage. Further, the installation and operation of qualifying improvements not only benefit the affected properties for which the improvements are made, but also assist in fulfilling the goals of the state’s energy and hurricane mitigation policies. In order to make qualifying improvements more affordable and assist property owners who wish to undertake such improvements, the Legislature finds that there is a compelling state interest in enabling property owners to voluntarily finance such improvements with local government assistance. (c) The Legislature determines that the actions authorized under this section, including, but not limited to, the financing of qualifying improvements through the execution of financing agreements and the related imposition of voluntary assessments are reasonable and necessary to serve and achieve a compelling state interest and are necessary for the prosperity and welfare of the state and its property owners and inhabitants. (2) As used in this section, the term: (a) “Local government” means a county, a municipality, a dependent special district as defined in s. 189.012, or a separate legal entity created pursuant to s. 163.01(7). (b) “Qualifying improvement” includes any: 1. Energy conservation and efficiency improvement, which is a measure to reduce consumption through conservation or a more efficient use of electricity, natural gas, propane, or other forms of energy on the property, including, but not limited to, air sealing; installation of insulation; installation of energy-efficient heating, cooling, or ventilation systems; building modifications to increase the use of daylight; replacement of windows; installation of energy controls or energy recovery systems; installation of electric vehicle charging equipment; and installation of efficient lighting equipment. 2. Renewable energy improvement, which is the installation of any system in which the electrical, mechanical, or thermal energy is produced from a method that uses one or more of the following fuels or energy sources: hydrogen, solar energy, geothermal energy, bioenergy, and wind energy. 3. Wind resistance improvement, which includes, but is not limited to: a. Improving the strength of the roof deck attachment; b. Creating a secondary water barrier to prevent water intrusion; c. Installing wind-resistant shingles; d. Installing gable-end bracing; e. Reinforcing roof-to-wall connections; f. Installing storm shutters; or g. Installing opening protections. (3) A local government may levy non-ad valorem assessments to fund qualifying improvements. (4) Subject to local government ordinance or resolution, a property owner may apply to the local government for funding to finance a qualifying improvement and enter into a financing agreement with the local government. Costs incurred by the local government for such purpose may be collected as a non-ad valorem assessment. A non-ad valorem assessment shall be collected pursuant to s. 197.3632 and, notwithstanding s. 197.3632(8)(a), shall not be subject to discount for early payment. However, the notice and adoption requirements of s. 197.3632(4) do not apply if this section is used and complied with, and the intent resolution, publication of notice, and mailed notices to the property appraiser, tax collector, and Department of Revenue required by s. 197.3632(3)(a) may be provided on or before August 15 in conjunction with any non-ad valorem assessment authorized by this section, if the property appraiser, tax collector, and local government agree. (5) Pursuant to this section or as otherwise provided by law or pursuant to a local government’s home rule power, a local government may enter into a partnership with one or more local governments for the purpose of providing and financing qualifying improvements. (6) A qualifying improvement program may be administered by a for-profit entity or a not-for- profit organization on behalf of and at the discretion of the local government. (7) A local government may incur debt for the purpose of providing such improvements, payable from revenues received from the improved property, or any other available revenue source authorized by law. (8) A local government may enter into a financing agreement only with the record owner of the affected property. Any financing agreement entered into pursuant to this section or a summary memorandum of such agreement shall be recorded in the public records of the county within which the property is located by the sponsoring unit of local government within 5 days after execution of the agreement. The recorded agreement shall provide constructive notice that the assessment to be levied on the property constitutes a lien of equal dignity to county taxes and assessments from the date of recordation. (9) Before entering into a financing agreement, the local government shall reasonably determine that all property taxes and any other assessments levied on the same bill as property taxes are paid and have not been delinquent for the preceding 3 years or the property owner’s period of ownership, whichever is less; that there are no involuntary liens, including, but not limited to, construction liens on the property; that no notices of default or other evidence of property-based debt delinquency have been recorded during the preceding 3 years or the property owner’s period of ownership, whichever is less; and that the property owner is current on all mortgage debt on the property. (10) A qualifying improvement shall be affixed to a building or facility that is part of the property and shall constitute an improvement to the building or facility or a fixture attached to the building or facility. An agreement between a local government and a qualifying property owner may not cover wind-resistance improvements in buildings or facilities under new construction or construction for which a certificate of occupancy or similar evidence of substantial completion of new construction or improvement has not been issued. (11) Any work requiring a license under any applicable law to make a qualifying improvement shall be performed by a contractor properly certified or registered pursuant to part I or part II of chapter 489. (12)(a) Without the consent of the holders or loan servicers of any mortgage encumbering or otherwise secured by the property, the total amount of any non-ad valorem assessment for a property under this section may not exceed 20 percent of the just value of the property as determined by the county property appraiser. (b) Notwithstanding paragraph (a), a non-ad valorem assessment for a qualifying improvement defined in subparagraph (2)(b)1. or subparagraph (2)(b)2. that is supported by an energy audit is not subject to the limits in this subsection if the audit demonstrates that the annual energy savings from the qualified improvement equals or exceeds the annual repayment amount of the non-ad valorem assessment. (13) At least 30 days before entering into a financing agreement, the property owner shall provide to the holders or loan servicers of any existing mortgages encumbering or otherwise secured by the property a notice of the owner’s intent to enter into a financing agreement together with the maximum principal amount to be financed and the maximum annual assessment necessary to repay that amount. A verified copy or other proof of such notice shall be provided to the local government. A provision in any agreement between a mortgagee or other lienholder and a property owner, or otherwise now or hereafter binding upon a property owner, which allows for acceleration of payment of the mortgage, note, or lien or other unilateral modification solely as a result of entering into a financing agreement as provided for in this section is not enforceable. This subsection does not limit the authority of the holder or loan servicer to increase the required monthly escrow by an amount necessary to annually pay the qualifying improvement assessment. (14) At or before the time a purchaser executes a contract for the sale and purchase of any property for which a non-ad valorem assessment has been levied under this section and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement in the following form, which shall be set forth in the contract or in a separate writing: QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND RESISTANCE.—The property being purchased is located within the jurisdiction of a local government that has placed an assessment on the property pursuant to s. 163.08, Florida Statutes. The assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy, or wind resistance, and is not based on the value of property. You are encouraged to contact the county property appraiser’s office to learn more about this and other assessments that may be provided by law. (15) A provision in any agreement between a local government and a public or private power or energy provider or other utility provider is not enforceable to limit or prohibit any local government from exercising its authority under this section. (16) This section is additional and supplemental to county and municipal home rule authority and not in derogation of such authority or a limitation upon such authority. History.—s. 1, ch. 2010-139; s. 1, ch. 2012-117; s. 64, ch. 2014-22. PACENation9PACE Proga AMemb ipl MRe ur t$Initiativ CBNe S&Blog BWWN Nem en esvMry Active program with funded projects Ffl Launched PACE program Program in development ■ PACE -enabled FL municipalities Municipality County State Program Name Lead Organization Financing Type Adrian Town Charlotte FL Alliance NRG PACE Alliance NRG Both Alachua Alachua FL Ygrene Ygrene Energy Fund Both Alford Jackson FL Alliance NRG PACE Alliance NRG Both Alma Jefferson FL Alliance NRG PACE Alliance NRG Both Amelia City Nassau FL Alliance NRG PACE Alliance NRG Both Amelia City Marion FL Alliance NRG PACE Alliance NRG Both American Beach Nassau FL Alliance NRG PACE Alliance NRG Both American Beach Marion FL Alliance NRG PACE Alliance NRG Both Andrews Nassau FL Alliance NRG PACE Alliance NRG Both Andrews Marion FL Alliance NRG PACE Alliance NRG Both Archer Alachua FL Ygrene Ygrene Energy Fund Both Argyle Walton FL Alliance NRG PACE Alliance NRG Both Ashville Jefferson FL Alliance NRG PACE Alliance NRG Both Aucilla Jefferson FL Alliance NRG PACE Alliance NRG Both Babcock Ranch Charlotte FL Alliance NRG PACE Alliance NRG Both Bascom Jackson FL Alliance NRG PACE Alliance NRG Both Bay Harbor Islands Miami- Dade FL Ygrene Ygrene Energy Fund Both Beachville Suwannee FL Alliance NRG PACE Alliance NRG Both Becker Nassau FL Alliance NRG PACE Alliance NRG Both Becker Marion FL Alliance NRG PACE Alliance NRG Both Bellair-Meadowbrook Terrace Clay FL Alliance NRG PACE Alliance NRG Both Belleview Marion FL Alliance NRG PACE Alliance NRG Both Belmore Clay FL Alliance NRG PACE Alliance NRG Both Beverly Beach Flagler FL Alliance NRG PACE Alliance NRG Both Bimini Flagler FL Alliance NRG PACE Alliance NRG Both Biscayne Park Miami- Dade FL Ygrene Ygrene Energy Fund Both Blanton Pasco FL Alliance NRG PACE Alliance NRG Both Boca Grande Charlotte FL Alliance NRG PACE Alliance NRG Both Boulogne Nassau FL Alliance NRG PACE Alliance NRG Both Boulogne Marion FL Alliance NRG PACE Alliance NRG Both Branchborough Pasco FL Alliance NRG PACE Alliance NRG Both Branford Suwannee FL Alliance NRG PACE Alliance NRG Both Bruce Walton FL Alliance NRG PACE Alliance NRG Both Bryceville Nassau FL Alliance NRG PACE Alliance NRG Both Bryceville Marion FL Alliance NRG PACE Alliance NRG Both Buenaventura Lakes Osceola FL Alliance NRG PACE Alliance NRG Commercial Bull Creek Osceola FL Alliance NRG PACE Alliance NRG Commercial Bunnell Flagler FL Alliance NRG PACE Alliance NRG Both Callahan Nassau*FL Alliance NRG PACE Alliance NRG Both Campbell Osceola FL Alliance NRG PACE Alliance NRG Commercial Campbellton Jackson FL Alliance NRG PACE Alliance NRG Both Cape Haze Charlotte FL Alliance NRG PACE Alliance NRG Both Municipality County State Program Name Lead Organization Financing Type Cape San Blas Gulf FL Alliance NRG PACE Alliance NRG Both Capps Jefferson FL Alliance NRG PACE Alliance NRG Both Casa Blanco Jefferson FL Alliance NRG PACE Alliance NRG Both Celebration Osceola FL Alliance NRG PACE Alliance NRG Commercial Charlotte Harbor Charlotte FL Alliance NRG PACE Alliance NRG Both Charlotte Park Charlotte FL Alliance NRG PACE Alliance NRG Both Chattahoochee Gadsden*FL Alliance NRG PACE Alliance NRG Commercial Chester Nassau FL Alliance NRG PACE Alliance NRG Both Chester Marion FL Alliance NRG PACE Alliance NRG Both Clay Hill Clay FL Alliance NRG PACE Alliance NRG Both Cleveland Charlotte FL Alliance NRG PACE Alliance NRG Both Cody Jefferson FL Alliance NRG PACE Alliance NRG Both Cody's Corner Flagler FL Alliance NRG PACE Alliance NRG Both Compass Lake Jackson FL Alliance NRG PACE Alliance NRG Both Coral Gables Miami- Dade FL Ygrene Ygrene Energy Fund Both Cottondale Jackson FL Alliance NRG PACE Alliance NRG Both Crandall Nassau FL Alliance NRG PACE Alliance NRG Both Crandall Marion FL Alliance NRG PACE Alliance NRG Both Crawford Nassau FL Alliance NRG PACE Alliance NRG Both Crawford Marion FL Alliance NRG PACE Alliance NRG Both Cutler Bay Miami- Dade FL Ygrene Ygrene Energy Fund Both Cypress Jackson FL Alliance NRG PACE Alliance NRG Both Dade City Pasco FL Alliance NRG PACE Alliance NRG Both Dahoma Nassau FL Alliance NRG PACE Alliance NRG Both Dahoma Marion FL Alliance NRG PACE Alliance NRG Both Dalkeith Gulf FL Alliance NRG PACE Alliance NRG Both Dania Beach Broward FL Ygrene Ygrene Energy Fund Both Darby Pasco FL Alliance NRG PACE Alliance NRG Both Daytona North Flagler FL Alliance NRG PACE Alliance NRG Both Deep Creek Charlotte FL Alliance NRG PACE Alliance NRG Both Deer Park Osceola FL Alliance NRG PACE Alliance NRG Commercial DeFuniak Springs Walton FL Alliance NRG PACE Alliance NRG Both Dellwood Jackson FL Alliance NRG PACE Alliance NRG Both Dickert Suwannee FL Alliance NRG PACE Alliance NRG Both Dills Jefferson FL Alliance NRG PACE Alliance NRG Both Doctors Hill Clay FL Alliance NRG PACE Alliance NRG Both Doctors Inlet Clay FL Alliance NRG PACE Alliance NRG Both Dowling Park Suwannee FL Alliance NRG PACE Alliance NRG Both Drifton Jefferson FL Alliance NRG 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County State Program Name Lead Organization Financing Type Hero Nassau FL Alliance NRG PACE Alliance NRG Both Hero Marion FL Alliance NRG PACE Alliance NRG Both Hialeah Miami- Dade FL Ygrene Ygrene Energy Fund Both Hialeah Gardens Miami- Dade FL Ygrene Ygrene Energy Fund Both Hibernie Clay FL Alliance NRG PACE Alliance NRG Both High Springs Alachua FL Ygrene Ygrene Energy Fund Both Highland View Gulf FL Alliance NRG PACE Alliance NRG Both Hildreth Suwannee FL Alliance NRG PACE Alliance NRG Both Hilliard Nassau*FL Alliance NRG PACE Alliance NRG Both Hollywood Broward FL Alliance NRG PACE Alliance NRG Both Hollywood Broward FL Ygrene Ygrene Energy Fund Both Holopaw Osceola FL Alliance NRG PACE Alliance NRG Commercial Homestead Miami- Dade FL Ygrene Ygrene Energy Fund Both Honeyville Gulf FL Alliance NRG PACE Alliance NRG Both Houston Suwannee FL Alliance NRG PACE Alliance NRG Both Hudson Beach Pasco FL Alliance NRG PACE Alliance NRG Both Indian Pass Gulf FL Alliance NRG PACE Alliance NRG Both Ingle Nassau FL Alliance NRG PACE Alliance NRG Both Ingle Marion FL Alliance NRG PACE Alliance NRG Both Italia Nassau FL Alliance NRG PACE Alliance NRG Both Italia Marion FL Alliance NRG PACE Alliance NRG Both Jacob City Jackson FL Alliance NRG PACE Alliance NRG Both Jarrott Jefferson FL Alliance NRG PACE Alliance NRG Both Jessamine Pasco FL Alliance NRG PACE Alliance NRG Both Keene Nassau FL Alliance NRG PACE Alliance NRG Both Keene Marion FL Alliance NRG PACE Alliance NRG Both Kenansville Osceola FL Alliance NRG PACE Alliance NRG Commercial Kent Nassau FL Alliance NRG PACE Alliance NRG Both Kent Marion FL Alliance NRG PACE Alliance NRG Both Key Biscayne Miami- Dade FL Ygrene Ygrene Energy Fund Both Keystone Heights Clay FL Alliance NRG PACE Alliance NRG Both Kings Ferry Nassau FL Alliance NRG PACE Alliance NRG Both Kings Ferry Marion FL Alliance NRG PACE Alliance NRG Both Kissimmee Osceola FL Alliance NRG PACE Alliance NRG Commercial Korona Flagler FL Alliance NRG PACE Alliance NRG Both La Crosse Alachua FL Ygrene Ygrene Energy Fund Both Lake Asbury Clay FL Alliance NRG PACE Alliance NRG Both Lake Geneva Clay FL Alliance NRG PACE Alliance NRG Both Lakeside Clay FL Alliance NRG PACE Alliance NRG Both Lamont Jefferson FL Alliance NRG PACE Alliance NRG Both Lauderdale Lakes Broward FL Ygrene Ygrene Energy Fund Both Lessie Nassau FL Alliance NRG PACE Alliance NRG Both Lessie Marion FL Alliance NRG PACE Alliance NRG Both Municipality County State Program Name Lead Organization Financing Type Limestone Jefferson FL Alliance NRG PACE Alliance NRG Both Live Oak Suwannee FL Alliance NRG PACE Alliance NRG Both Lloyd Jefferson FL Alliance NRG PACE Alliance NRG Both Lois Jefferson FL Alliance NRG PACE Alliance NRG Both Luraville Suwannee FL Alliance NRG PACE Alliance NRG Both Malone Jackson FL Alliance NRG PACE Alliance NRG Both Manasota Key Charlotte FL Alliance NRG PACE Alliance NRG Both Margate Broward FL Ygrene Ygrene Energy Fund Both Marianna Jackson FL Alliance NRG 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Alliance NRG PACE Alliance NRG Both Mossy Head Walton FL Alliance NRG PACE Alliance NRG Both Murdock Charlotte FL Alliance NRG PACE Alliance NRG Both Nash Jefferson FL Alliance NRG PACE Alliance NRG Both Nassau Village-Ratliff Nassau FL Alliance NRG PACE Alliance NRG Both Nassau Village-Ratliff Marion FL Alliance NRG PACE Alliance NRG Both Nassauville Nassau FL Alliance NRG PACE Alliance NRG Both Nassauville Marion FL Alliance NRG PACE Alliance NRG Both New Port Richey Pasco FL Alliance NRG PACE Alliance NRG Both Newberry Alachua FL Ygrene Ygrene Energy Fund Both North Bay Village Miami- Dade FL Ygrene Ygrene Energy Fund Both North Miami Miami- Dade FL Ygrene Ygrene Energy Fund Both North Miami beach Miami- Dade FL Ygrene Ygrene Energy Fund Both Municipality County State Program Name Lead Organization Financing Type North Port Charlotte Charlotte FL Alliance NRG PACE Alliance NRG Both O'Brien Suwannee FL Alliance NRG PACE Alliance NRG Both O'Neil Nassau FL Alliance NRG PACE Alliance NRG Both O'Neil Marion FL Alliance NRG PACE Alliance NRG Both Oakdale Jackson FL Alliance NRG PACE Alliance NRG Both Oakleaf Clay FL Alliance NRG PACE Alliance NRG Both Ocala Marion FL Alliance NRG PACE Alliance NRG Both Opa-Locka Miami- Dade FL Ygrene Ygrene Energy Fund Both Orange Park Clay FL Alliance NRG PACE Alliance NRG Both Orlando Orange FL Ygrene Ygrene Energy Fund Both Overstreet Gulf FL Alliance NRG PACE Alliance NRG Both Padlock Suwannee FL Alliance NRG PACE Alliance NRG Both Painters Hill Flagler FL Alliance NRG PACE Alliance NRG Both Palm Coast Flagler FL Alliance NRG PACE Alliance NRG Both Palmetto Bay Miami- Dade FL Ygrene Ygrene Energy Fund Both Paxton Walton FL Alliance NRG PACE Alliance NRG Both Pembroke Pines Broward FL Alliance NRG PACE Alliance NRG Both Pembroke Pines Broward FL Ygrene Ygrene Energy Fund Both Penney Farms Clay FL Alliance NRG PACE Alliance NRG Both Pinecrest Miami- Dade FL Ygrene Ygrene Energy Fund Both Placida Charlotte FL Alliance NRG PACE Alliance NRG Both Poinciana Osceola FL Alliance NRG PACE Alliance NRG Commercial Pompano Beach Broward FL Alliance NRG PACE Alliance NRG Both Pompano Beach Broward FL Ygrene Ygrene Energy Fund Both Port Charlotte Charlotte FL Alliance NRG PACE Alliance NRG Both Port Richey Pasco FL Alliance NRG PACE Alliance NRG Both Port St. Joe Gulf FL Alliance NRG PACE Alliance NRG Both Port St. Joe (coming soon)Gulf*FL Alliance NRG PACE Alliance NRG Both Port St. Lucie St. Lucie FL SELF PACE Program Solar & Energy Loan Fund Commercial Pouchers Corner Suwannee FL Alliance NRG PACE Alliance NRG Both Punta Gorda Charlotte FL Alliance NRG PACE Alliance NRG Both Quincy Gadsden*FL Alliance NRG PACE Alliance NRG Commercial Relay Flagler FL Alliance NRG PACE Alliance NRG Both Richland Pasco FL Alliance NRG PACE Alliance NRG Both Rixford Suwannee FL Alliance NRG PACE Alliance NRG Both Rotunda Charlotte FL Alliance NRG PACE Alliance NRG Both Round Lake Jackson FL Alliance NRG PACE Alliance NRG Both San Antonio Pasco FL Alliance NRG PACE Alliance NRG Both Santa Rosa Beach Walton FL Alliance NRG PACE Alliance NRG Both Seacrest Walton FL Alliance NRG PACE Alliance NRG Both Seaside Walton FL Alliance NRG PACE Alliance NRG Both Seven Springs Pasco FL Alliance NRG PACE Alliance NRG Both Simsville Jackson FL Alliance NRG PACE Alliance NRG Both Municipality County State Program Name Lead Organization Financing Type Slade Suwannee FL Alliance NRG PACE Alliance NRG Both Sneads Jackson FL Alliance NRG PACE Alliance NRG Both Solana Charlotte FL Alliance NRG PACE Alliance NRG Both South Miami Miami- Dade FL Ygrene Ygrene Energy Fund Both St. Cloud Osceola FL Alliance NRG PACE Alliance NRG Commercial St. Johns Park Flagler FL Alliance NRG PACE Alliance NRG Both St. Joseph Pasco FL Alliance NRG PACE Alliance NRG Both St. Leo Pasco FL Alliance NRG PACE Alliance NRG Both St. Lucie Village St. Lucie FL SELF PACE Program Solar & Energy Loan Fund Commercial Surfside Miami- Dade FL Ygrene Ygrene Energy Fund Both Suwannee Springs Suwannee FL Alliance NRG PACE Alliance NRG Both Sweetwater Miami- Dade FL Ygrene Ygrene Energy Fund Both Tallahassee Leon FL Leon County PACE Ygrene Energy Fund Both Tamarac Broward FL Alliance NRG PACE Alliance NRG Both Thomas City Jefferson FL Alliance NRG PACE Alliance NRG Both Trilacoochee Pasco FL Alliance NRG PACE Alliance NRG Both Two Egg Jackson FL Alliance NRG PACE Alliance NRG Both Unincorporated Areas St. Lucie FL SELF PACE Program Solar & Energy Loan Fund Commercial Unincorporated areas Alachua FL Ygrene Ygrene Energy Fund Both Verdie Nassau FL Alliance NRG PACE Alliance NRG Both Verdie Marion FL Alliance NRG PACE Alliance NRG Both Virginia Village Clay FL Alliance NRG PACE Alliance NRG Both Vitis Pasco FL Alliance NRG PACE Alliance NRG Both Wacissa Jefferson FL Alliance NRG PACE Alliance NRG Both Waldo Alachua FL Ygrene Ygrene Energy Fund Both Waukeenah Jefferson FL Alliance NRG PACE Alliance NRG Both Webbville Jackson FL Alliance NRG PACE Alliance NRG Both Wellborn Suwannee FL Alliance NRG PACE Alliance NRG Both West Miami Miami- Dade FL Ygrene Ygrene Energy Fund Both Wewahitchka Gulf FL Alliance NRG PACE Alliance NRG Both Wewahitchka (coming soon) Gulf*FL Alliance NRG PACE Alliance NRG Both White City Gulf FL Alliance NRG PACE Alliance NRG Both Winter Park Orange FL Alliance NRG PACE Alliance NRG Both Yeehaw Junction Osceola FL Alliance NRG PACE Alliance NRG Commercial Yulee Nassau FL Alliance NRG PACE Alliance NRG Both Yulee Marion FL Alliance NRG PACE Alliance NRG Both Yulee Heights Nassau FL Alliance NRG PACE Alliance NRG Both Yulee Heights Marion FL Alliance NRG PACE Alliance NRG Both Zephyrhills Pasco FL Alliance NRG PACE Alliance NRG Both Property Assessed Clean Energy PACE Collier County Board of County Commissioners April 25, 2017 Growth Management Department Gino Santabarbara, Principal Planner James C. French, Deputy Department Head 1 What is PACE? Property Assessed Clean Energy State of Florida passed its PACE enabling statute, F.S. Section 163.08 in 2010: ◦Energy efficiency & conservation ◦Renewable energy ◦Wind resistance/hardening measures 2 PACE Voluntary program ◦Property owners must apply to participate Can apply to commercial and residential property Provides property owner access utilizing alternative financing methods Repaid as a non-ad valorem assessment ◦Method of public financing Repayment obligation can potentially transfer 3 Qualifying Improvements Energy efficiency & conservation ◦Energy efficient HVAC system ◦Window replacements Renewable energy ◦Solar panels Wind resistance ◦Storm shutters ◦Gable-end bracing 4 Key Components Governmental Partners ◦Tax Collector ◦Property Appraiser Contractors ◦Registered and Certified Property Owners 5 Eligibility Requirements Property taxes are current No involuntary liens Mortgage current PACE assessment < 20% of market value 6 Past PACE Obstacles Bond Validations ◦Florida's Supreme Court upheld the constitutionality of the statute and local government's authority to issue bonds to finance qualifying improvements 7 Lien Status Pace assessments are senior and have priority over pre-existing mortgages On par with property taxes New mortgages may require pay off of PACE lien, prior to closing or refinancing 8 Potential PACE Benefits Reduction in energy consumption Stimulates local economy/job creation Provides access to 100% financing (long term) Possible insurance premium reduction Reduction in energy bill 9 Administrative Models County administrative model ◦ Administrative Requirements ◦Budget Impact ◦Staff / Resources Third-party administrative model ◦Most prevalent model in Florida & trend across US ◦Little to no cost to County 10 Active PACE Programs in Florida 11 Florida Pace Funding Agency ◦Alliance NRG Clean Energy Green Corridor ◦Ygrene Florida Green Energy Works ◦Renew Financial Renovate America ◦HERO Summary Property owners apply voluntary Many of the major concerns overcome PACE program cannot operate in the county/city unless an enabling ordinance or resolution is approved Collection through non-ad valorem assessment on property tax bill BCC has the ability to end the program 12 Questions?? 13