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Agenda 03/08/2011 Item # 9E -,-, 3/8/2011 Item 9.E. . EXECUTIVE SUMMARY Status update on Property Assessed Clean Energy (PACE) program and consideration to explore a commercial~only pilot program. OBJECTIVE: To update the Board on the general status of PACE programs and the recommendations of the Collier County Energy Task Force (Task Force); to request authorization to move forward to solicit information via Request for Information (RFI); and to authorize staff to continue working with the Task Force to develop a scope for a possible Request for Quotes (RFQ) for a commercial PACE program. CONSIDERATION: PACE programs were authorized by HB 7179, signed by Gov. Crist on May 27, 2010. PACE is a financing mechanism similar to a special taxing district, providing voluntary loans for energy efficiency retrofits of residential, industrial and commercial properties which are secured by real property and paid back through property taxes. . On June 8, 2010 (Agenda Item 9A) staff was directed by the Board to work with the Collier County Energy Task Force (Energy Task Force) to explore the PACE concept and report back to the Board on feasibility of County participation in a PACE initiative. In an update report to the Board on September 28, 2010 (Agenda Item 5B), staff gave a general description of what would be necessary to put together a PACE program but reported that due to Federal Housing and Finance Agency (FHFA) concerns with the primacy of PACE liens over federally-backed mortgages, residential PACE programs around the nation had been put on hold pending legislation to try and address those concerns. Staff has been meeting with the Energy Task Force periodically to review progress in resolving federal PACE issues. Finding the situation relatively unchanged, the Energy Task Force began discussions as to what alternatives were available. At a meeting on February 10, 2011, the Task Force suggested moving forward with a commercial PACE program, with potential application to the residential sector once federal issues are resolved. . At the September 28, 2010 Board meeting, staff was also asked to take a look at how energy efficiency could be accomplished by revisions in the Land Development Code, for new construction and major renovations. The answer to that issue is connected with the Florida Building Code and with revisions to County Comprehensive Plans, both required by HB 697, signed by Gov. Crist on June 17, 2008. This legislation mandated changes in the 2010 edition of the Florida Energy Efficiency Code for building construction that would increase energy efficiency performance of new buildings by at feast 20 percent. At the same time, this law also required Counties to revise requirements contained within elements of their local comprehensive plans to include energy efficiency policies and strategies to reduce greenhouse gas emissions. Those amendments to the Collier County Growth Management Plan (GMP) are currently being addressed through the Evaluation and Appraisal Report (EAR) process by modifications to the objectives and policies within a number of elements of the GMP, including the Packet Page -178- -.,... '-'~'.:-rJl!!':] 3/8/2011 Item 9.E. . Future Land Use Element, the Conservation and Coastal Management Element, the Potable Water Sub-Element, the Housing Element, and the Recreation and Open Space Element. Between the Florida Building Code revisions, GMP revisions and subsequent revisions to the LOC which will need to be made to facilitate GMP revisions, the process for incorporating energy efficiency has already begun for application to new construction, with potential application to major renovations. PACE is different in that it provides financing for energy efficiency upgrades for existing building stock. FISCAL IMPACT: There is no fiscal impact associated with this item. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this action. LEGAL CONSIDERATIONS: There are no legal issues presented at this time. RECOMMENDATION: That the Board of County Commissioners directs the County Manager (or his designee) to seek an RFI for development of a Commercial PACE Program in Collier County and authorizes staff to work with the Collier County Energy Task Force to develop a scope of services for a potential RFP for a turn-key commercial PACE program. . . Packet Page -179- . . . 3/8/2011 Item 9.E. COLLIER COUNTY Board of County Commissioners Item Number: 9.E. Item Summary: To update the Board on the general status of PACE programs and the recommendations of the Collier County Energy Task Force (Task Force); to request authorization to move forward to solicit information via Request for Information (RFI); and to authorize staff to continue working with the Task Force to develop a scope for a possible Request for Quotes (RFQ) for a commercial PACE program. Meeting Date: 3/8/2011 Prepared By Name: Paula Springs Title: Executive Aide to the BCC, 2/24/2011 12:2]:42 PM Approved By Name: SheffieldMichaeI Title: Manager-Business Operations, CMO Date: 2/24/2011 1: 10:50 PM Packet Page -180-