New York State Passes PACE Finance Enabling Legislation

Legislation will allow for municipalities to dramatically accelerate the energy retrofitting of New York State's buildings and homes

ALBANY, N.Y., Nov. 17 /PRNewswire-USNewswire/ -- Last evening the New York State legislature passed a bill that authorizes municipalities to establish sustainable energy programs that will finance the installation of renewable energy systems and energy efficiency improvements across the state. These programs will make use of a new form of energy finance, known as Property Assessed Clean Energy or "PACE." PACE programs eliminate the upfront cost for energy improvements by allowing property owners to pay for the improvements over 15-20 years through an increase in their annual property taxes. PACE programs are a recent innovation in finance and have emerged nationwide over the past year during which time 15 states have passed enabling legislation.

"PACE finance can help accelerate deep building retrofits in New York's dense cities, energy efficiency improvements in the suburban housing stock and colder upstate climate, and both efficiency and renewable energy power improvements across the commercial real estate sector," said Jeffrey Tannenbaum, founder of PACENOW.org and on behalf of the Fir Tree Philanthropies. He added, "New York now has a potential financing structure that can help reduce energy bills, and carbon emissions while creating long term job opportunities in the clean energy space."

Representative Steve Israel (NY 2nd District) stated, "I am thankful that Governor Paterson and the State Legislature see the potential for PACE programs in New York and I look forward to working with our local communities to launch PACE bond pilot programs across New York."

Governor Paterson said, "Now, thanks to the leadership of President Obama and Congressman Israel, the federal government is offering programs that encourage the use of PACE loan programs ... I want to thank the Legislature for recognizing this opportunity and for agreeing to pass this critical legislation."

Ashok Gupta, Director of Energy Policy for the Natural Resources Defense Council, stated, “PACE is a powerful tool for advancing energy efficiency retrofits, creating badly needed jobs and reducing global warming pollution. New York has taken an important first step on PACE and we look forward to working with the Legislature and the Governor to quickly expand the scope of this bill beyond PACE programs relying on federal assistance.”

"New York State can now tap critical federal dollars to create much-needed jobs with PACE programs," said Jack D. Hidary, Chairman of Americans for Clean Energy and one of the leaders of the PACENOW coalition. He added, "PACE will put more people to work and will bring energy efficiency and solar to buildings across the state with loans that make it easy for owners to pay for this cost-reducing work."

The PACENOW coalition includes the following leading companies, foundations and governmental organizations: Alliance to Save Energy; City of Annapolis, MD; Apollo Alliance; Association of Bay Area Governments; City of Berkeley, CA; Bipartisan Policy Center; County of Boulder, CO; California Energy Commission; Center for American Progress; Climate Communities; Clinton Global Initiative; Fir Tree Philanthropies; Jack D. Hidary Foundation; Johnson Controls Inc.; Jones Lang LaSalle: Living Cities; County of Montgomery, MD; National Association of Real Estate Investment Trusts (NAREIT); Natural Resources Defense Council; PACENOW.org; Polyiso Insulation Manufacturers Association; Real Estate Roundtable; Renewable and Appropriate Energy Laboratory; Renewable Funding LLC; Serrafix Corp; Solar Electric Industries Association; County of San Diego, CA; City of San Jose, CA; City of Sonoma, CA; Stewards for Affordable Housing for the Future; and the Vermont Energy Investment Corp.

About PACENOW:
PACENOW.org is the advocacy and educational non-governmental organization for PACE finance. For more information about PACE finance, please visit www.PACENOW.org.

About The Fir Tree Philanthropies:
The Fir Tree Philanthropies ("FTP") primary objective is to accelerate America's energy independence and promote sustainable capitalism through innovations in public policy, finance and entrepreneurship.

PACE FACT SHEET

History: The PACE finance industry began in California in 2008 when state enabling legislation was passed allowing for municipalities to create financing districts that could provide low cost retrofit capital to homeowners and building owners secured by senior tax liens on their property. PACE has the potential for large growth due to recently passed similar enabling legislation in more than a dozen states. Current PACE enabled states are: CA, CO, IL, LA, MD, NV, NM, NY, OH, OK, OR, TX, VT, VA, WI.

Property Assessed Clean Energy ("PACE") Finance Defined: A PACE bond or lien is a debt instrument where the proceeds are lent to commercial and residential property owners to finance energy retrofits (efficiency measures and small renewable energy systems) and who then repay their loans over 15-20 years via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts or finance companies and the proceeds can be used to retrofit both commercial and residential properties.

How it works: The key innovations of PACE finance involve materially lengthening the repayment period for energy retrofit loans and structuring the loan repayments as annual property tax surcharges. These innovations result in large benefits to property owners (positive cash flow in the first year on energy retrofits), municipalities (no fiscal burden yet large job creation), existing mortgage holders (borrower cash flow improves and the property value increases), and to PACE bond holders/investors (virtually no risk on investment because the PACE lien is senior in right to mortgage debt). Specific benefits are as follows:

PACE Fact Sheet

• Property owners benefit from large cash savings as efficiency savings exceed the annual financing cost: Instead of large required upfront payments by property owners for energy retrofits, the capital is lent to property owners and repaid over 15-20 years via an annual property tax surcharge. This long term repayment mechanism results in annual energy savings that greatly exceed the annual property tax cost, making PACE finance highly attractive to home and building owners.
• States/Municipalities create jobs and have no added credit risk: States and municipalities benefit from immediate job creation and the fact that PACE finance creates no credit or fiscal burden as the entire liability resides directly with those property owners who opt in to receiving PACE loans.
• Appeal to existing mortgage holders: PACE finance improves the cash flow of property owners (annual energy savings > annual tax surcharge cost) and increases the property's overall value all of which increase the creditworthiness of the existing mortgage
• PACE bond holders/investors benefit from a highly secure investment: PACE bonds have strong appeal to investors given that they are secured by long term tax liens that are senior in right to mortgage debt.


CONTACT: Sandi McLaughlin, PACENOW.org, +1-212-659-4917, info@pacenow.org

Cash for Clunkers Interview - Forbes

Click here

Your Bottom Line

Cash for Clunkers Continues; Become an Empowered Patient; Stay Employed By Making the Most of Your Job; It's a Good Time to Start a Small Business


GERRI WILLIS, CNN HOST: Hello. I'm Gerri Willis and this is YOUR BOTTOM LINE, the show that saves you money. Become an empowered patient: tips to wage a battle against your insurance company if your claim is denied. Making the most of a miserable job: solutions that don't involve sacrificing your paycheck. And starting a small business: grab a pen and paper, we'll show you how. YOUR BOTTOM LINE start right now.

Cash for Clunkers, some say a big success, others argue poorly planned by the government. The program burned through its billion dollar first round of funding in less than one week. Now, with $2 billion more headed on the way, how long can we expect it to last? Jack Hidary is the chairman of SmartTransportation.org.

You helped design this plan so we really got the person who knows the most about it with us today. I want to share some numbers we have, though, to ask you about them.

Full Article at: Click Here

Cash for Clunkers Hits Goal in Five Days!

Jack Hidary - Huffington Post Article
July 30th, 2009

Cash for Clunkers Hits Goal in Five Days!
As a co-architect of the federal Cash For Clunkers (CFC) program and advisor to various congressional offices on the issue, it is gratifying to see how quickly it has been adopted by the American people. CFC achieves multiple goals -- it stimulates auto sales while increasing the efficiency of the U.S. fleet.

For full article Click Here

Pacenow.org

Jack Hidary is excited to be a member of the Pacenow consortium.

The Waxman/Markey Bill was amended to reflect our comments and now empowers the Federal government to provide indirect credit support for the issuance of PACE bonds (essentially they can be guaranteed to help spur the market). In addition, the energy & commerce committee has provided for monies by capitalizing the “green bank” with $7.5 billion which is great and the key for beginning to finance the retrofit of our nation’s buildings.

Thank You: We owe thanks to the senior teams in the offices of Chairman Waxman (Jeff Baran, Phil Barnett, Greg Dotson, John Jimison), Rep. Markey (Jeff Duncan, Jeff Sharp) , Rep. Van Hollen (Bill Parsons), Rep. Inslee (Beth Osborne), Rep. Dingell, and Rep. Gordon. They agreed the amendment made sense and made it happen. We also received excellent counsel and help from Congressman Israel (Tricia Russell), John Sheiner in Chairman Rangel’s office, the team at the National Commission on Energy Policy (Sasha Mackler, Lourdes Long), Susan Leeds at NRDC.

Click here for more information.

Cash for Clunkers

June 19, 2009- Congress Passes Cash for Clunkers. A bill passed June 18th, 2009 by the Senate will establish a national program to encourage car owners to voluntarily trade in their older, less fuel efficient car, truck or SUV for more fuel efficient vehicles.

Click here for the full article.

Call to Action!

THANKS TO YOUR CALLS AND EFFORTS we had big wins on solar and wind incentives in the stimulus bill.

Now we are building on those wins with the energy bills moving their way through Congress.

A key goal is the Renewable Electricity Standard, known as the R.E. S.

This would set a minimum of solar, wind and other clean energy across the US: 15% by 2021. This is not as high a standard as we were hoping for, but it a good step in the right direction.

Unfortunately, we are two votes shy of this passing. We need the votes of Evan Bayh and Blanche Lincoln, both Democrats, by TOMORROW to pass this critical legislation in the Senate.

Please help us by calling their offices TOMORROW - THURSDAY MAY 21, 2009 from 9AM to 4PM eastern.

Senator Evan Bayh:
(202) 224-5623
Chief of staff: Tom Sugar

Senator Blanche Lincoln:
(202) 224-4843
Chief of staff: Elizabeth Burks

Sorry for the last-minute note, but this gap just developed and we have been called on to to close it.

When you call, please state the following:

1. Thank them for their past support of renewable energy.

2. Urge them to vote YES on R.E.S so that we can have a healthier, more secure country and future with more solar, wind and geothermal.

The staff are ready for these calls so don't be shy - make your voice heard and give them a call. Ask for the chief of staff or other staffer who handles R.E.S. Each call will only take one minute.

Your future will thank you!

Please post back to the facebook group after you call to encourage others to add their voices.

Jack and the team

'Cash for Clunkers' Plan Is Considered

WSJ

WASHINGTON -- Auto-industry officials are in advanced talks with Capitol Hill lawmakers on a proposal that would aim to revive vehicle sales by giving federal tax credits of as much as $4,500 to consumers who replace older gas guzzlers with new, fuel-efficient cars.

Executives and lobbyists for domestic and foreign auto makers hope to reach an agreement on what they call a "cash for clunkers" program in the next few days so it can be added to a nearly $900 billion economic-stimulus package the Senate will debate next week. A House version of the package, valued at $819 billion, passed on a largely party-line vote Wednesday.

It isn't clear that auto makers and Congress will strike a deal. Detroit Three executives haven't signed off on a plan, in part because they worry that the plan would encourage people to replace their older, American-made cars and trucks with new vehicles made by overseas-based rivals. It isn't clear how long the program would last or what it would cost the government.

The cash-for-clunkers plan is one of dozens of proposals designed to aid certain industries and companies that lobbyists are pitching to lawmakers. Together, those provisions have pumped up the cost of the economic-stimulus proposals by billions of dollars.


Full Article at: Click Here

Measure Introduced by Senators Feinstein, Collins, and Schumer Would Establish National Incentive Program for Voluntary Retirement of Fuel-Inefficient

Washington, DC – A measure introduced today by U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) would establish a national voucher program to enable and encourage drivers to voluntarily trade in their older, less fuel efficient car, truck or SUV for a more fuel efficient vehicle.

Specifically, the so-called “Cash for Clunkers” program would reimburse drivers with a credit of $2,500 to $4,500 for drivers who turn in fuel-inefficient vehicles to be scrapped, and purchase a more fuel efficient vehicle. The traded-in vehicles must have a fuel economy of no more than 18 miles per gallon, be in drivable condition, and have been registered for at least the past 120 days. Vouchers could also be redeemed for transit fares for participating local public transportation agencies. The program would operate for four years, from 2009 – 2012, and is expected to encourage the early retirement of up to one million vehicles per year.

“Last Congress, we successfully enacted legislation – which I authored with Senator Snowe and others – to improve the fuel efficiency of America’s fleet of new cars, trucks and SUVs by at least 10 miles per gallon over 10 years. But we face real challenges with trying to encourage drivers to trade in their older, less fuel efficient vehicles – particularly in this tough economic climate,” Senator Feinstein said.

“This bill will help address that problem. It will create a voucher program to reimburse drivers who trade in their old cars, trucks and SUVs with a coupon of $2,500 to $4,500, depending on the fuel efficiency of the purchased car. If enacted, this bill would be an important part of helping getting America’s struggling automobile industry back on its feet – and help consumers who are concerned about covering the cost of buying a more fuel efficient vehicle. I’d like to thank my colleague Senator Salazar for his leadership in helping to craft some of the bill’s key concepts,” Senator Feinstein added.

“This legislation would give consumers an incentive to turn over their old, inefficient vehicles, saving 80,000 barrels of motor fuel every day,” Senator Collins said. “Taking these cars and trucks off our roads and highways would help reduce our dependence on foreign oil, decrease greenhouse gas emissions, and stimulate the economy. In addition, it would help boost demand for manufacturers of newer, efficient models and bring in new business for car dealers who are struggling in the current economy.”

Senator Schumer said: “For Americans who have a clunker sitting in their driveway, this is an even better trade-in offer than they could get from any car dealership. Our proposal will take inefficient cars off the roads in exchange for a down payment on a newer, cleaner vehicle. Car owners also have the option of swapping their old car for vouchers to ride their local bus or subway for free. This is a classic win-win that can provide stimulus for the economy and make long-term gains for the environment.”

When implemented, as estimated by the American Council for an Energy-Efficient Economy, the program would:

• Save between 40,000 to 80,000 barrels per day of motor fuel by the end of the fourth year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

• Reduce greenhouse gas emissions between 6.6 million metric tons to 7.6 million metric tons, or the equivalent of removing 1.1 million to 2.2 million vehicles from the road in one year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

• Reduce nitrogen oxides, which cause ground-level ozone (a leading cause of respiratory health problems, like asthma), by 3,043 short tons (2,761 metric tons) by 2013, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

The legislation is intended to help compliment the implementation of the new fuel economy law – authored by Senators Feinstein, Snowe and others – which would raise average fuel economy standards for America’s fleet of vehicles by at least 10 miles per gallon (mpg) over 10 years or from 25 mpg to at least 35 mpg by Model Year 2020.

Companion legislation is also being introduced today in the House by Representatives Steve Israel (D-N.Y.), Jay Inslee (D-Wash.), Barbara Lee (D-Calif.), and Dennis Moore (D-Kansas).



How the legislation would work:

Eligible drivers would receive a reimbursement voucher for the purchase of a new or used vehicle with a fuel economy rating that exceeds the CAFE target for that class of vehicle by at least 25 percent. The bill also requires that the voucher be used towards the purchase of a vehicle that has an MSRP of less than $45,000, is model year 2004 or later, and meets or exceeds federal emissions standards. Vouchers could also be redeemed for transit fares for participating local public transportation agencies.

Drivers who apply for the program must ensure that their vehicles turned in for scrapping match the following criteria:

• Vehicles must be in drivable condition;
• Be currently registered in the U.S.; and
• Have a when-new fuel economy rating of less than 18 miles per gallon (as reported by the original manufacturer for purposes of CAFE compliance).

The bill specifies that during the first year of the program, vouchers will be issued for the following amounts:

• For traded-in vehicles that are model year 2002 and later, drivers would receive a voucher for:
o The purchase of a new vehicle: $4,500
o The purchase of a used vehicle: $3,000
o Transit fare credit: $3,000

• For traded-in vehicles that are model year 1999 – 2001, drivers would receive a voucher for:
o The purchase of a new vehicle: $3,000
o The purchase of a used vehicle: $2,000
o Transit fare credit: $2,000

• For traded-in vehicles that are model year 1998 and earlier, drivers would receive a voucher for:
o The purchase of a new vehicle: $2,000
o The purchase of a used vehicle: $1,500
o Transit fare credit: $1,500

In each subsequent year (2010, 2011, and 2012), the model years would be advanced by one year. Vouchers would be eligible for redemption for up to two years after the date of issuance, and no individual would be eligible to obtain more than one voucher in any three-year period. Dealers, dismantlers and scrap recycling facilities would also be eligible for a payment of $50 per vehicle, or an alternative amount to be specified by the Department of Energy.

Stimulate with Solar -- Let's Get America Working Now for the Future

America's New Year's gift will be a $750 billion stimulus bill prepped and passed this month in Washington. Congress and the Obama team have made it clear that green energy jobs and infrastructure will be key elements of this package.

Building out solar jobs and installations should be a key ingredient of this platform. In terms of "shovel-ready" projects, solar is able to deliver jobs and clean energy quickly at a great return on investment.

There are two things holding back solar right now which can be easily fixed in the stimulus bill:

1. The disappearance of tax equity investors --

Since all the traditional investors in solar projects who did so to gain the tax credits to shelter profits now have no profits, they are out of the game. This includes Morgan Stanley, Wells Fargo and others.

To fix this, let's make solar tax credits refundable for at least two years.

2. 30% is not enough in a downturn

The Congress renewed the solar tax credit at 30% this past October. While in normal economic times that might be fine, it is not cutting it in this downturn.

States have pulled back their subsidies or have delayed new ones. Residential and small commercial customers who do not seek financing in many cases would install solar with a greater incentive.

We recommend increasing the federal solar tax incentive to 50% for two years -- 2009 and 2010 -- that would catalyze a wave of solar installation in the US. That is great timing since the cost of solar panels has plummeted.

The cost of increasing the solar tax credit for 2 years to 50% is only $353 million -- a small amount in a $750+ billion bill.

These two moves will also create the jobs for all the retrained green collar workers to fill. Congress intends on funding the Green Jobs Act at $500 million in the stimulus. Where will all these workers go to work? We must create demand for the jobs and solar is one the fastest ways to scale up green energy.

Let your member of Congress know how you feel about solar -- 2 quick fixes can make a world of difference.

Link: http://www.huffingtonpost.com/jack-hidary/stimulate-with-solar---le_b_155170.html