The BP oil spill in the gulf has created considerable angst about dependence on fossil fuels and along with that more interest in renewable energy and conservation. Although, some criticize linking electric energy production with transportation fuel with new battery technology more and more people are interested in electricity as a source transportation energy. Whether public transportation or electric cars it appears we should continue to look into it. One recent policy passed in Minnesota was PACE legislation.
Property Assessed Clean Energy PACE Bonds: Innovative Funding to Accelerate the Retrofitting of America’s Buildings for Energy Independence. A PACE bond is a bond 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 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 typically used to retrofit both commercial and residential properties.
The PACE bond market has the potential to dramatically accelerate the energy retrofitting of America’s building stock due to the below advantages.
PACE Impact: Property tax lien oriented financing that dramatically improves the economics of energy retrofits (efficiency measures and micro renewable energy). Read more here.
I was exploring the “New Rules” site and found some more info on PACE.
Can you can also find a lessons learned pdf outlining which implementation practices have worked well in other states.
You can check out more about PACE at the New Rules site