Two federal agencies are trying to sink Property Assessed Clean Energy programs, which finance energy-efficiency changes for homes and businesses, the Natural Resources Defense Council claims in Federal Court. The NRDC says it has spent 2 years supporting development of PACE programs, but the Federal Housing Finance Authority and Office of the Comptroller of the Currency issued misguided directives this summer that could stop the programs in their tracks.
"Defendants' actions, which have the effect of terminating existing PACE programs and curtailing the development of new PACE initiatives, will significantly set back efforts to address air pollution and global warming pollution from the electric generation sector," according to the complaint.
Energy efficiency is important to combating global warming, making the electric grid more reliable, and reducing consumers' energy bills, but Americans need financing so they can afford to pay for better energy or to retrofit their homes and businesses, the NRDC says.
"If PACE programs were to achieve a 3 percent penetration rate nationwide over the next decade, 3.3 million homes would be retrofitted, resulting in approximately 320 million metric tons of avoided carbon dioxide emissions," according to the complaint. "Assuming an average job cost of $15,000, these retrofits would also result in just under $50 billion of construction activity."
The NRDC claims that PACE projects such as installing new windows or improving insulation can increase property value in the long term and bring many short-term benefits, such as decreasing a building's energy bills, increasing a property owner's cash flow and reducing the risk of default and foreclosure.
--more
Thursday, November 11, 2010
Thursday, October 14, 2010
Sunday, October 10, 2010
NRDC Sues Federal Housing Regulators for Blocking Affordable Clean Energy Projects for Homeowners
NEW YORK, N.Y. (October 6, 2010) – Federal housing regulators must stop obstructing programs that make energy efficiency upgrades and renewable energy projects affordable for American homeowners, according to a lawsuit filed today by the Natural Resources Defense Council.
“Federal housing regulators are standing in the way of programs that make clean energy projects affordable for homeowners and lower electricity bills,” said Katherine Kennedy, Energy Counsel at NRDC. “It defies common sense that the federal government is blocking programs that could create jobs, jumpstart our economy, put money in homeowners’ pockets, and fight climate change at the same time. Instead of shutting them down, the federal government should help these programs grow.”
NRDC filed the lawsuit in federal district court in the Southern District of New York against the Federal Housing Finance Agency, which regulates government sponsored mortgage buyers Fannie Mae and Freddie Mac, and the Office of the Comptroller of the Currency, which regulates national banks. The agencies have halted clean energy financing programs—called Property Assessed Clean Energy (PACE) programs— that are already off the ground in California, Colorado and New York, and have been adopted in 20 other states and the District of Columbia.
NRDC Complaint
“Federal housing regulators are standing in the way of programs that make clean energy projects affordable for homeowners and lower electricity bills,” said Katherine Kennedy, Energy Counsel at NRDC. “It defies common sense that the federal government is blocking programs that could create jobs, jumpstart our economy, put money in homeowners’ pockets, and fight climate change at the same time. Instead of shutting them down, the federal government should help these programs grow.”
NRDC filed the lawsuit in federal district court in the Southern District of New York against the Federal Housing Finance Agency, which regulates government sponsored mortgage buyers Fannie Mae and Freddie Mac, and the Office of the Comptroller of the Currency, which regulates national banks. The agencies have halted clean energy financing programs—called Property Assessed Clean Energy (PACE) programs— that are already off the ground in California, Colorado and New York, and have been adopted in 20 other states and the District of Columbia.
NRDC Complaint
Property Assessed Clean Energy (PACE) program on the ropes
National Association of Counties: County News
By Julie Ufner
ASSOCIATE LEGISLATIVE DIRECTOR
As the clock ticks to the end of the 111th Congress, many local governments are anxious about the fate of the Property Assessed Clean Energy (PACE) program.
In July, NACo members passed a resolution at NACo’s Annual Meeting to support PACE programs. Since then, NACo has been lobbying with the National League of Cities and the U.S. Conference of Mayors in support of PACE programs.
READ MORE
By Julie Ufner
ASSOCIATE LEGISLATIVE DIRECTOR
As the clock ticks to the end of the 111th Congress, many local governments are anxious about the fate of the Property Assessed Clean Energy (PACE) program.
In July, NACo members passed a resolution at NACo’s Annual Meeting to support PACE programs. Since then, NACo has been lobbying with the National League of Cities and the U.S. Conference of Mayors in support of PACE programs.
READ MORE
Monday, July 19, 2010
A Leg Up for PACE Programs
Bill Would End GSE Roadblocks
(Bond Buyer) Monday, July 19, 2010
WASHINGTON — Rep. Mike Thompson, D-Calif., and 29 other members of Congress have introduced legislation that would prevent Fannie Mae and Freddie Mac from stifling state programs that allow localities to sell bonds to finance energy-efficient upgrades made by homeowners.
The legislation follows a suit California attorney general and Democratic gubernatorial candidate Jerry Brown filed against Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency, arguing they are violating state law by blocking the programs.
The programs, dubbed property assessed clean energy, or PACE, programs, have come under fire from the mortgage titans and their regulator, the FHFA, which argue they make the underlying mortgages on participating homes too risky for the two government-sponsored enterprises.
READ MORE
(Bond Buyer) Monday, July 19, 2010
WASHINGTON — Rep. Mike Thompson, D-Calif., and 29 other members of Congress have introduced legislation that would prevent Fannie Mae and Freddie Mac from stifling state programs that allow localities to sell bonds to finance energy-efficient upgrades made by homeowners.
The legislation follows a suit California attorney general and Democratic gubernatorial candidate Jerry Brown filed against Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency, arguing they are violating state law by blocking the programs.
The programs, dubbed property assessed clean energy, or PACE, programs, have come under fire from the mortgage titans and their regulator, the FHFA, which argue they make the underlying mortgages on participating homes too risky for the two government-sponsored enterprises.
READ MORE
Sunday, July 18, 2010
Byron DeLear of Missouri Association of Accredited Energy Professionals speaks of PACE
Gov. Jay Nixon signed a bill on Monday enabling Property Assesses Clean Energy (PACE) programs, which allow cities and counties to issue bonds to help home owners finance energy efficiency upgrades or solar panel installation. Money from the bond sales is lent to property owners, who repay it over a period of up to 20 years through special property tax assessments.
PACE laws have been adopted in 22 states as a way to cut energy use and create jobs by making it easier for homeowners to cut energy use and shrink utility bills.
In Missouri, energy efficiency advocates acknowledge the uncertainty surrounding PACE but are working to roll out programs anyway, hoping the conflict is resolved.
On Friday, energy advocacy group Renew Missouri held a PACE implementation training conference in Columbia for about 100 energy auditors, solar installers and local government officials.
"Our view is that these concerns and problems will be resolved," said Byron DeLear, a founding partner of Energy Equity Funding LLC, a company that hopes to administer PACE programs in the state.
DeLear also heads the Missouri Association of Accredited Energy Professionals, a year-old state association of energy auditors and contractors. MAAEP helped push PACE legislation in Jefferson City and has a lot riding on the success of the programs.
PACE is expected to spur millions of dollars in efficiency and renewable energy upgrades across the state. That could mean hundreds of new jobs for energy auditors, contractors and home remodelers.
DeLear projects that 80 percent of PACE loans in Missouri will be used to finance energy efficiency projects averaging about $5,000. The rest will also incorporate renewable energy systems such as solar panels with those projects averaging about $25,000. Statewide, the average PACE loan would be about $9,000, he estimates.
READ MORE
PACE laws have been adopted in 22 states as a way to cut energy use and create jobs by making it easier for homeowners to cut energy use and shrink utility bills.
In Missouri, energy efficiency advocates acknowledge the uncertainty surrounding PACE but are working to roll out programs anyway, hoping the conflict is resolved.
On Friday, energy advocacy group Renew Missouri held a PACE implementation training conference in Columbia for about 100 energy auditors, solar installers and local government officials.
"Our view is that these concerns and problems will be resolved," said Byron DeLear, a founding partner of Energy Equity Funding LLC, a company that hopes to administer PACE programs in the state.
DeLear also heads the Missouri Association of Accredited Energy Professionals, a year-old state association of energy auditors and contractors. MAAEP helped push PACE legislation in Jefferson City and has a lot riding on the success of the programs.
PACE is expected to spur millions of dollars in efficiency and renewable energy upgrades across the state. That could mean hundreds of new jobs for energy auditors, contractors and home remodelers.
DeLear projects that 80 percent of PACE loans in Missouri will be used to finance energy efficiency projects averaging about $5,000. The rest will also incorporate renewable energy systems such as solar panels with those projects averaging about $25,000. Statewide, the average PACE loan would be about $9,000, he estimates.
READ MORE
Saturday, July 17, 2010
Congress tells Fannie and Freddie to support clean energy programs
Written by Office of Congressman Mike Thompson
Saturday, 17 July 2010
WASHINGTON, DC – On Thursday Congressman Mike Thompson (D-CA) was joined by 29 other members of Congress in introducing legislation to protect clean energy initiatives that are important to homeowners in California and the rest of the country.
The PACE Assessment Protection Act of 2010 would order lenders to adopt standards that support Property Assessed Clean Energy (PACE) programs, rather than stymie green energy efforts.
“PACE programs are an important part of the push to create a green economy and reduce our reliance on foreign oil,” said Congressman Thompson. “They create jobs, and are an exciting way for homeowners to reduce their energy bills while also reducing greenhouse gas emissions. This is especially important in California, which has already taken significant steps to ensure that PACE programs are available to 70 percent of Californians by the end of 2010. And our district has been a national leader in getting these programs up and running – lending institutions should not interfere with these great green energy programs.”
MORE
Bill Summary & Status - 111th Congress (2009 - 2010) - H.R.5766
Title:
To ensure that the underwriting standards of Fannie Mae and Freddie Mac facilitate the use of property assessed clean energy programs to finance the installation of renewable energy and energy efficiency improvements.
Sponsor: Rep Thompson, Mike
[CA-1] (introduced 7/15/2010)
Cosponsors
(29)
Latest Major Action:
7/15/2010 Referred to House committee. Status: Referred to the House Committee on Financial Services.
Thompson Bill Re FHFA 7-15-10
Saturday, 17 July 2010
WASHINGTON, DC – On Thursday Congressman Mike Thompson (D-CA) was joined by 29 other members of Congress in introducing legislation to protect clean energy initiatives that are important to homeowners in California and the rest of the country.
The PACE Assessment Protection Act of 2010 would order lenders to adopt standards that support Property Assessed Clean Energy (PACE) programs, rather than stymie green energy efforts.
“PACE programs are an important part of the push to create a green economy and reduce our reliance on foreign oil,” said Congressman Thompson. “They create jobs, and are an exciting way for homeowners to reduce their energy bills while also reducing greenhouse gas emissions. This is especially important in California, which has already taken significant steps to ensure that PACE programs are available to 70 percent of Californians by the end of 2010. And our district has been a national leader in getting these programs up and running – lending institutions should not interfere with these great green energy programs.”
MORE
Bill Summary & Status - 111th Congress (2009 - 2010) - H.R.5766
Title:
To ensure that the underwriting standards of Fannie Mae and Freddie Mac facilitate the use of property assessed clean energy programs to finance the installation of renewable energy and energy efficiency improvements.
Sponsor: Rep Thompson, Mike
[CA-1] (introduced 7/15/2010)
Cosponsors
(29)
Latest Major Action:
7/15/2010 Referred to House committee. Status: Referred to the House Committee on Financial Services.
Thompson Bill Re FHFA 7-15-10
PACE funding workshop attracts statewide attendance
Property Assessed Clean Energy funding workshop attracts statewide attendance
Friday, July 16, 2010
COLUMBIA — Representatives from 19 municipalities gathered to learn how to make Property Assessed Clean Energy (PACE) funding a reality in Missouri.
The PACE workshop drew more than 80 Missourians to Columbia on Friday. Jason Hughes of Renew Missouri, an organization focused on promoting renewable energy in Missouri and the event’s sponsor, was expecting 50.
The workshop follows Gov. Jay Nixon’s signing of a bill to allow the use of PACE financing systems in Missouri.
Attendees came from around the state to express the diverse needs of their communities.
Serving Seniors
Rosalind Williams, Director of Planning and Development for Ferguson, said her community is focused on the needs of it’s senior citizens. Making houses not only more comfortable, but cheaper to live in, encourages seniors to not move out of Ferguson, she said.
Williams said senior citizens aren’t an attractive demographic to most lenders, but PACE financing would allow them to afford adding value to their homes.
No Cherry Picking
John May of Creve Coeur wants to be sure PACE benefits everyone, not just the wealthy municipalities.
One proposal he saw for a PACE program “cherry-picked” the wealthier counties of St. Louis and St. Charles and avoided the poor.
“I got a little hot,” May said after hearing that proposal.
May also cautioned against rushing into any financing system without being sure of the risks. Believing in safety without surety led to the recession and the Deepwater Horizon disaster, he said.
Fannie May and Freddie Mac oppose PACE funding. They believe that the the stipulations of PACE financing could displace mortgages the lenders hold.
Their opposition has halted progress on PACE across the country, but is receiving heavy criticism.
READ ARTICLE
Friday, July 16, 2010
COLUMBIA — Representatives from 19 municipalities gathered to learn how to make Property Assessed Clean Energy (PACE) funding a reality in Missouri.
The PACE workshop drew more than 80 Missourians to Columbia on Friday. Jason Hughes of Renew Missouri, an organization focused on promoting renewable energy in Missouri and the event’s sponsor, was expecting 50.
The workshop follows Gov. Jay Nixon’s signing of a bill to allow the use of PACE financing systems in Missouri.
Attendees came from around the state to express the diverse needs of their communities.
Serving Seniors
Rosalind Williams, Director of Planning and Development for Ferguson, said her community is focused on the needs of it’s senior citizens. Making houses not only more comfortable, but cheaper to live in, encourages seniors to not move out of Ferguson, she said.
Williams said senior citizens aren’t an attractive demographic to most lenders, but PACE financing would allow them to afford adding value to their homes.
No Cherry Picking
John May of Creve Coeur wants to be sure PACE benefits everyone, not just the wealthy municipalities.
One proposal he saw for a PACE program “cherry-picked” the wealthier counties of St. Louis and St. Charles and avoided the poor.
“I got a little hot,” May said after hearing that proposal.
May also cautioned against rushing into any financing system without being sure of the risks. Believing in safety without surety led to the recession and the Deepwater Horizon disaster, he said.
Fannie May and Freddie Mac oppose PACE funding. They believe that the the stipulations of PACE financing could displace mortgages the lenders hold.
Their opposition has halted progress on PACE across the country, but is receiving heavy criticism.
READ ARTICLE
Thursday, July 15, 2010
California s Brown Sues GSEs Over PACE
(Bond Buyer) Thursday, July 15, 2010
WASHINGTON — California Attorney General Jerry Brown is suing mortgage titans Fannie Mae and Freddie Mac as well as their regulator, the Federal Housing Finance Agency, for effectively killing programs that allow the state’s localities to issue bonds to finance energy-efficient upgrades made by homeowners.
Brown, a Democratic gubernatorial candidate, filed the suit yesterday in the U.S. District Court for the Northern District of California, urging the court to issue an order restraining or enjoining the agencies from refusing to participate in these property assessed clean energy, or PACE, programs, which he insisted are permitted under state law.
The PACE programs were to receive about $150 million of seed money under the American Recovery and Reinvestment Act enacted last year. But they generally skidded to a halt earlier this month after the FHFA directed Fannie Mae and Freddie Mac to tighten their underwriting standards for the PACE programs, warning they “pose significant safety and soundness concerns” and “disrupt a fragile housing finance market and long-standing lending priorities."
READ ARTICLE
CA Fhfa Suit
WASHINGTON — California Attorney General Jerry Brown is suing mortgage titans Fannie Mae and Freddie Mac as well as their regulator, the Federal Housing Finance Agency, for effectively killing programs that allow the state’s localities to issue bonds to finance energy-efficient upgrades made by homeowners.
Brown, a Democratic gubernatorial candidate, filed the suit yesterday in the U.S. District Court for the Northern District of California, urging the court to issue an order restraining or enjoining the agencies from refusing to participate in these property assessed clean energy, or PACE, programs, which he insisted are permitted under state law.
The PACE programs were to receive about $150 million of seed money under the American Recovery and Reinvestment Act enacted last year. But they generally skidded to a halt earlier this month after the FHFA directed Fannie Mae and Freddie Mac to tighten their underwriting standards for the PACE programs, warning they “pose significant safety and soundness concerns” and “disrupt a fragile housing finance market and long-standing lending priorities."
READ ARTICLE
CA Fhfa Suit
Wednesday, July 14, 2010
Brown Fights to Preserve Job-Creating Clean Energy Program
SAN DIEGO - Attorney General Edmund G. Brown Jr. today filed a lawsuit against mortgage giants Fannie Mae and Freddie Mac for blocking an innovative California clean energy program that was designed to create tens of thousands of jobs, promote energy independence and lower utility bills.
"As the nation struggles through the worst recession in modern times, California is taking action in federal court to stop the regulatory strangulation of the state's grass-roots program that is spreading across the country," said Brown.
The PACE (Property Assessed Clean Energy) program stimulates the economy and promotes energy independence by assisting homeowners and small businesses in securing funding to make their properties more energy efficient. Property owners repay the costs of energy improvements through assessments spread out over a decade or more. Under California law, these costs are classified as tax assessments.
Ignoring California law, Fannie Mae and Freddie Mac have effectively shut down the program by wrongly characterizing PACE assessments as loans that must be subordinate to their own mortgages. The Federal Housing Finance Agency affirmed Fannie and Freddie's decision on July 6 over the objections of Attorney General Brown and congressional leaders.
For California, the stakes are high. Almost half the counties in California have developed PACE programs or plan to start one. The mortgage giants' actions have stopped these programs dead in their tracks, destroying job creation, stifling energy independence and hampering California's economic recovery. Clean energy companies have had to lay off workers, and California risks losing more than $100 million in federal stimulus money.
"Fannie Mae and Freddie Mac received enormous federal bailouts," Brown said, "but now they're throwing up impermeable barriers to bank lending that creates jobs, stimulates the economy and boosts clean energy."
One example of the effects of this: San Diego planned to launch a PACE program this summer but it has now been suspended indefinitely, leaving more than 100 people trained in energy retrofits without jobs.
"I believe that the PACE program is critical to stimulating our local and statewide economy," said San Diego Mayor Jerry Sanders. "I'm glad to see this lawsuit filed so that this novel program can continue."
In his lawsuit, Brown asks the court to apply California law, require Fannie Mae and Freddie Mac to recognize PACE assessments for what they are, and allow PACE to move California's economy forward.
"As the nation struggles through the worst recession in modern times, California is taking action in federal court to stop the regulatory strangulation of the state's grass-roots program that is spreading across the country," said Brown.
The PACE (Property Assessed Clean Energy) program stimulates the economy and promotes energy independence by assisting homeowners and small businesses in securing funding to make their properties more energy efficient. Property owners repay the costs of energy improvements through assessments spread out over a decade or more. Under California law, these costs are classified as tax assessments.
Ignoring California law, Fannie Mae and Freddie Mac have effectively shut down the program by wrongly characterizing PACE assessments as loans that must be subordinate to their own mortgages. The Federal Housing Finance Agency affirmed Fannie and Freddie's decision on July 6 over the objections of Attorney General Brown and congressional leaders.
For California, the stakes are high. Almost half the counties in California have developed PACE programs or plan to start one. The mortgage giants' actions have stopped these programs dead in their tracks, destroying job creation, stifling energy independence and hampering California's economic recovery. Clean energy companies have had to lay off workers, and California risks losing more than $100 million in federal stimulus money.
"Fannie Mae and Freddie Mac received enormous federal bailouts," Brown said, "but now they're throwing up impermeable barriers to bank lending that creates jobs, stimulates the economy and boosts clean energy."
One example of the effects of this: San Diego planned to launch a PACE program this summer but it has now been suspended indefinitely, leaving more than 100 people trained in energy retrofits without jobs.
"I believe that the PACE program is critical to stimulating our local and statewide economy," said San Diego Mayor Jerry Sanders. "I'm glad to see this lawsuit filed so that this novel program can continue."
In his lawsuit, Brown asks the court to apply California law, require Fannie Mae and Freddie Mac to recognize PACE assessments for what they are, and allow PACE to move California's economy forward.
Tuesday, July 13, 2010
Missouri governor signs bills on energy efficiency
From the governor's office:
House Bill 1692 contains numerous provisions, including one to spur energy efficiency and conservation through the Property Assessed Clean Energy (PACE) program. This lets cities and counties issue bonds and provide financing for all upfront costs of energy efficient upgrades, renewable energy upgrades and energy audits for homes and businesses. Those upgrades can be costly, and this assistance will help many projects move forward. The bill was supported by a broad range of groups including utilities, consumer advocates and environmental groups.
House Bill 1692 contains numerous provisions, including one to spur energy efficiency and conservation through the Property Assessed Clean Energy (PACE) program. This lets cities and counties issue bonds and provide financing for all upfront costs of energy efficient upgrades, renewable energy upgrades and energy audits for homes and businesses. Those upgrades can be costly, and this assistance will help many projects move forward. The bill was supported by a broad range of groups including utilities, consumer advocates and environmental groups.
Thursday, July 8, 2010
PACE Programs On Hold - Bond Buyer Article
The Bond Buyer is the paper of record for the bond market. The article presents a very good view of what should be expected in the marketplace. This gives the reader a sense that PACE will continue only if prudent underwriting practices are followed.
Regretably, the folks who were instrumental in getting the initial PACE programs started were not mindful of the protections desired and required by the GSE community.
Note the last paragraph. It appears to give a glimmer of hope that there may be a path back from the brink.
SEE ARTICLE HERE
Regretably, the folks who were instrumental in getting the initial PACE programs started were not mindful of the protections desired and required by the GSE community.
Note the last paragraph. It appears to give a glimmer of hope that there may be a path back from the brink.
SEE ARTICLE HERE
Monday, July 5, 2010
Green initiative's future murky as regulators weigh risks to homeowners
July 4, 2010(Washington Post) An Obama administration program to promote energy efficiency in homes appears to have met insurmountable resistance from financial regulators who are worried about its effect on residential mortgages, federal and local officials said Saturday.
As a result, the government has begun telling municipalities to think of other ways to use the millions in economic stimulus funds that had been set aside for the green initiative, officials said.
"Millions of dollars that would otherwise be invested and help out the local economy are on hold," said Ben Pearlman, a county commissioner in Boulder, Colo.
The program is emblematic of President Obama's effort to build the economy by reducing reliance on fossil fuels. It provides loans for such improvements as solar panels or new windows, and then allows homeowners to repay the money over many years through surcharges on property tax bills.
READ ARTICLE
As a result, the government has begun telling municipalities to think of other ways to use the millions in economic stimulus funds that had been set aside for the green initiative, officials said.
"Millions of dollars that would otherwise be invested and help out the local economy are on hold," said Ben Pearlman, a county commissioner in Boulder, Colo.
The program is emblematic of President Obama's effort to build the economy by reducing reliance on fossil fuels. It provides loans for such improvements as solar panels or new windows, and then allows homeowners to repay the money over many years through surcharges on property tax bills.
READ ARTICLE
Sunday, July 4, 2010
Loan Giants Opt to Block Energy Programs
July 3, 2010 NYT -- Two government-chartered mortgage finance companies are unlikely to accept loans on homes that are part of a special program that lets homeowners repay the cost of energy improvements through a surcharge on their property tax bills, according to Energy Department officials.
The Obama administration has allocated $150 million in stimulus money to support the financing technique, called Property Assessed Clean Energy, or PACE, and 22 states have authorized such programs. In a separate stimulus effort, President Obama on Saturday announced nearly $2 billion in loan guarantees for solar energy production.
READ NYT ARTICLE
The Obama administration has allocated $150 million in stimulus money to support the financing technique, called Property Assessed Clean Energy, or PACE, and 22 states have authorized such programs. In a separate stimulus effort, President Obama on Saturday announced nearly $2 billion in loan guarantees for solar energy production.
READ NYT ARTICLE
Saturday, July 3, 2010
US lawmakers urge guidance for clean energy loans
WASHINGTON July 2 (Reuters) - Two influential Democratic lawmakers warned on Friday that Fannie Mae and Freddie Mac could derail a $150 million clean-energy home-financing program and urged the Obama administration to rectify the problem with new regulatory guidance.
Rep. Barney Frank, chairman of the U.S. House of Representatives Financial Services Committee, and Rep. Henry Waxman, head of the House Energy and Commerce Committee, said in a letter that the two government-controlled mortgage finance providers have objected to tax liens on homes participating in Property Assessed Clean Energy (PACE) programs.
READ FULL ARTICLE
Rep. Barney Frank, chairman of the U.S. House of Representatives Financial Services Committee, and Rep. Henry Waxman, head of the House Energy and Commerce Committee, said in a letter that the two government-controlled mortgage finance providers have objected to tax liens on homes participating in Property Assessed Clean Energy (PACE) programs.
READ FULL ARTICLE
Obama admin unable to resolve shutdown of PACE clean-energy program
Obama administration officials have failed to resolve a dispute with Fannie Mae and Freddie Mac that has shut down Property Assessed Clean Energy (PACE), according to an email obtained by Grist. The impasse will likely kill the promising clean-energy financing tool until Congress passes legislation addressing it, according to Cisco DeVries, who first created the PACE system three years ago.
Department of Energy officials have been unable to convince the Federal Housing Finance Agency, which regulates Fannie and Freddie, to end the corporations' prohibition on using PACE, DeVries told PACE advocates in an email Friday evening.
READ MORE ON GRIST
Department of Energy officials have been unable to convince the Federal Housing Finance Agency, which regulates Fannie and Freddie, to end the corporations' prohibition on using PACE, DeVries told PACE advocates in an email Friday evening.
READ MORE ON GRIST
Thursday, July 1, 2010
PACE Energy-Efficiency Programs in Jeopardy
New York Times
SAN FRANCISCO — The Obama administration is devoting $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills.
At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they might not accept loans for homes that take advantage of the special financing.
The mixed messages have alarmed state officials and prompted many local governments to freeze their programs, which have been hailed as an innovative way to help homeowners afford the retrofitting of a house with solar panels, which can cost $30,000 or more before incentives.
SAN FRANCISCO — The Obama administration is devoting $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills.
At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they might not accept loans for homes that take advantage of the special financing.
The mixed messages have alarmed state officials and prompted many local governments to freeze their programs, which have been hailed as an innovative way to help homeowners afford the retrofitting of a house with solar panels, which can cost $30,000 or more before incentives.
Wednesday, June 23, 2010
Efficiency Advocates Mobilize to Defend PACE Financing
Cathy Zoi, the DOE’s Assistant Secretary for Energy Efficiency and Renewable Energy, wrote to Edward DeMarco, the acting director of the Federal Housing Finance Agency (FHFA) – which regulates Fannie Mae and Freddie Mac – to ask for clarification of the cryptic advisories sent out on May 5.
SEE ENERGY FIRST Posting describing the latest status of PACE discussions where it matters, at the top.
SEE ENERGY FIRST Posting describing the latest status of PACE discussions where it matters, at the top.
Monday, June 21, 2010
PACE Financing for Commercial Buildings to Reach $2.5 Billion Annually by 2015, According to Pike Research
In the commercial building sector, energy efficiency retrofits are a highly effective approach for reducing energy consumption and costs while also mitigating greenhouse gas (GHG) emissions. However, the energy retrofit market in privately owned buildings is limited by capital constraints, short planning horizons for property owners, and split incentives between owners and tenants. Property Assessed Clean Energy (PACE) financing is emerging as an important tool to overcome these barriers in the market for commercial building retrofits. PACE programs create voluntary tax liens on private property, to secure financing for retrofits. The liens are paid off over 5 to 20 years, usually on the property tax bills. SEE MORE
Saturday, June 19, 2010
Popular PACE Program Under Siege by Fannie Mae and Freddie Mac
Within just a few years, some 23 states and the federal government have passed legislation removing any legal barriers to adopting the program, and hundreds of cities and counties have or are developing their own Property Assessed Clean Energy versions.
Yet now in a somewhat odd twist, about half the mortgages in the country may be ineligible for PACE financing. The quasi-public mortgage lenders, Fannie Mae and Freddie Mac, which received a lot of unwanted attention and much-wanted aide during the fall of the housing market, have reportedly sent out “lender guidance letters” suggesting that homes financing through them are not allowed to participate in PACE financing. SEE ARTICLE
Yet now in a somewhat odd twist, about half the mortgages in the country may be ineligible for PACE financing. The quasi-public mortgage lenders, Fannie Mae and Freddie Mac, which received a lot of unwanted attention and much-wanted aide during the fall of the housing market, have reportedly sent out “lender guidance letters” suggesting that homes financing through them are not allowed to participate in PACE financing. SEE ARTICLE
Missouri Adopts PACE
Missouri became the 21st state to open the door to Property Assessed Clean Energy (PACE) financing. The innovative and wildly popular financing scheme, which allows homeowners to pay for solar power systems via municipal loans paid back through property taxes, has been spreading fast through states eager to ride the growing green energy wave. SEE STORY
Monday, June 7, 2010
Editorial: Feds put damper on retrofit loans
The Sacramento Bee expresses frustration on its opinion page by saying "Here's a prime example of what can be so infuriating about the federal bureaucracy.
Hundreds of California property owners have taken advantage of special loans to make their homes and businesses greener. Thousands more are to become eligible this year.
But the program -- which lets owners repay the loans later as part of property tax bills -- is now in limbo.
Last month, Fannie Mae and Freddie Mac issued warning letters to lenders that such energy loans could put homeowners in default of their mortgages.
Those would be the same out-of-control mortgage giants that needed a gargantuan taxpayer bailout of $145 billion and counting to survive the housing meltdown.
And their stance comes despite the White House strongly encouraging such programs, through policy and hundreds of millions in stimulus funding."
FannieMae Lender Letter 050510
Hundreds of California property owners have taken advantage of special loans to make their homes and businesses greener. Thousands more are to become eligible this year.
But the program -- which lets owners repay the loans later as part of property tax bills -- is now in limbo.
Last month, Fannie Mae and Freddie Mac issued warning letters to lenders that such energy loans could put homeowners in default of their mortgages.
Those would be the same out-of-control mortgage giants that needed a gargantuan taxpayer bailout of $145 billion and counting to survive the housing meltdown.
And their stance comes despite the White House strongly encouraging such programs, through policy and hundreds of millions in stimulus funding."
FannieMae Lender Letter 050510
Saturday, June 5, 2010
Local governments serve as idea labs for federal lawmakers, creating a 'safe' space as politicians consider changes to national climate and energy reform.
THE INCUBATORS
Call them the Silicon Valley garages of climate policy.
Local efforts to trim emissions, change economies and alter behavior are serving as idea labs where mistakes can be made and novel approaches honed in preparation for setting national climate and energy policy.
Call them the Silicon Valley garages of climate policy.
Local efforts to trim emissions, change economies and alter behavior are serving as idea labs where mistakes can be made and novel approaches honed in preparation for setting national climate and energy policy.
Friday, June 4, 2010
Midwest Energy and Climate Policy Conference
Program description
The fourth annual "Midwest Energy and Climate Policy Conference," June 8-10, 2010, will be hosted at the world famous Missouri Botanical Garden and Union Station's Marriott Hotel in St. Louis, Missouri. This event will bring in experts from across the region and country to discuss federal and state energy priorities, proposed legislative and regulatory actions, emerging national security issues, corporate response to carbon management, the future of coal, natural gas, and nuclear power, private sustainability initiatives, the prospect and analysis of new "green" projects and jobs, and the outlook for alternative energy research and initiatives.
The fourth annual "Midwest Energy and Climate Policy Conference," June 8-10, 2010, will be hosted at the world famous Missouri Botanical Garden and Union Station's Marriott Hotel in St. Louis, Missouri. This event will bring in experts from across the region and country to discuss federal and state energy priorities, proposed legislative and regulatory actions, emerging national security issues, corporate response to carbon management, the future of coal, natural gas, and nuclear power, private sustainability initiatives, the prospect and analysis of new "green" projects and jobs, and the outlook for alternative energy research and initiatives.
Fannie and Freddie Resist Loans for Energy Efficiency
Wall Street Journal article
The government's mortgage-finance agencies Fannie Mae and Freddie Mac are resisting a White House-backed effort to make it easier for homeowners to get loans to make their houses more energy efficient.
The problem: deciding who gets paid first if the borrower defaults.
The government's mortgage-finance agencies Fannie Mae and Freddie Mac are resisting a White House-backed effort to make it easier for homeowners to get loans to make their houses more energy efficient.
The problem: deciding who gets paid first if the borrower defaults.
St. Louis Post --PACE article
PACE yourself for savings on Missouri utility bills.
Even the most fervent Tea Partier would have a hard time hating a bill that the Missouri Legislature recently passed with near unanimous votes — even though it enables new local tax assessments.
If signed into law, it would bring to Missouri what's called "property assessed clean energy" — or PACE. Homeowners and businesses can achieve huge savings in utility bills if they make their homes more energy efficient. They could get the savings now and pay for the improvements over 20 years with special tax assessments.
Even the most fervent Tea Partier would have a hard time hating a bill that the Missouri Legislature recently passed with near unanimous votes — even though it enables new local tax assessments.
If signed into law, it would bring to Missouri what's called "property assessed clean energy" — or PACE. Homeowners and businesses can achieve huge savings in utility bills if they make their homes more energy efficient. They could get the savings now and pay for the improvements over 20 years with special tax assessments.
Missouri Becomes 21st PACE State
California Clean Energy groups watch Missouri's progress with great interest. A blog entry describes how PACE got its start in Ferguson, MO.
Policy Framework for PACE Financing Programs
Policy Framework has been developed by the White House and the relevant agencies as a policy framework for Property Assessed Clean Energy (PACE) financing programs. The Vice President announces support for the use of federal funds for pilot programs of PACE financing to overcome barriers for families who wish to invest in energy efficiency and renewable energy improvements.
WEB LINK TO PDF
WEB LINK TO PDF
The PACE Initiative begins at the federal level
VICE PRESIDENT BIDEN ANNOUNCES THAT PACE RETROFIT FINANCE WILL BE KEY COMPONENT OF OUR NATION’S “RECOVERY THROUGH RETROFIT PROGRAM”
The Department of Energy to Provide Stimulus Funds
for Property Assessed Clean Energy (PACE) Pilot Programs
The Department of Energy to Provide Stimulus Funds
for Property Assessed Clean Energy (PACE) Pilot Programs
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