CaliforniaFIRST Kelley McKanna| 4/1/10
CaliforniaFIRST Kelley McKanna| 4/1/10. PACE: Simple, Effective Tool Property owner repays bond through property tax bill (up to 20 years) Proceeds from.
Dec 15, 2015
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CaliforniaFIRST
Kelley McKanna| 4/1/10
PACE: Simple, Effective Tool
Property ownerrepays bondthrough propertytax bill (up to 20 years)
Proceeds fromPACE bond or otherfinancing providedto property ownerto pay for energy project
Property ownersvoluntarily sign-upfor financing and install energyprojects
City or countycreates type of land-securedfinancing districtor similar legalmechanism
Key Benefits for Cities & Counties
Helps meetenergy andclimate goals
Promotes local jobs
Tax neutral andno exposure toGeneral Fund
Key Benefits for Property Owners
Saves moneyon utility bills
Repaymenttransfers tonew owner
Not based onpersonal credit
8.4%
jobs increase in construction sector jobs in Sonoma County between January and September 2009
CaliforniaFIRST
Statewide AB 811 Program
14 Counties Participating in Phase I Now Launching– Alameda; Fresno; Kern; Monterey; Sacramento;
San Benito; San Diego; San Luis Obispo; San Mateo; Santa Clara; Santa Cruz; Solano; Ventura; Yolo
Phase II Now Open for New Counties
CaliforniaFIRST: Program Team
CSCDA California Communities - Sponsor•Joint Powers Authority formed in 1988 with 500 members cities, counties, and special districts
Renewable Funding - Administration•Architect of clean energy municipal financing and experience running Pace programs•Provides turnkey solutions to implement programs
Royal Bank of Canada Capital Markets - Finance•Lead underwriter of municipal bonds, with issuance volume of more than $100 billion since 2004 •Experience running CSCDA SCIP
CaliforniaFIRST: Overview
• Creates financing district
• Provides complete admin
• Provides upfront capital through bond sales
• Identifies work & chooses contractor
• Applies for financing
$$ Upfront
$$ Repaid on tax bill
City /County“opts-in”
• Repays financing on property tax bill
• Repayment obligation transfers with ownership
CaliforniaFIRST: Legal
CaliforniaFIRST: Program Admin
CaliforniaFIRST: Finance
Local Responsibilities
City/County Program Fees
Level 1 Level 2 Level 3 Level 4 Level 5
Population under 20K 21K - 75K 75K - 200K 201K - 500K over 500K
Legal & Validation Process
$7,500 $7,500 $7,500 $7,500 $7,500
Marketing & Technology Set-Up
$2,500 $5,000 $7,500 $12,500 $17,500
TOTAL $10,000 $12,500 $15,000 $20,000 $25,000
– Total legal fees per county not to exceed $75,000
CaliforniaFIRST: Timeline
Pilot scheduled to launch in summer 2010
New cities and counties sign up for Round 2 from April to July– Public Notice
– Staff Report
– Resolution to Join
Round 2 estimated launch Fall 2010
Eligible Measures
– Affixed to property (ie. No appliances)
– Energy Efficiency, Renewable Energy, Water Efficiency
– Cost-effective” by CEC standards
Participation Pathways
BPI, HERSII, Equivalent
Licensed Contractor
Contractor Qualifications
– Appropriate State license
– Participation in State rebate programs
– Agreement to Code of Ethics
– Compliance with CEC HERSII requirement (as available and applicable)
Eligible Properties
Standard– Residential and Multifamily, 4 or less units
– Multifamily 5 or more units and Commercial
Still under development
– Underwriting criteria
10% lien to value ratio
20% equity in property
No history of payment delinquency for taxes, foreclosure, bankruptcy, involuntary liens, current in mortgage payments
Potential Customization– Most limited of customization options due to need for standardized
underwriting criteria in bond rating and sale
CaliforniaFIRST Splash Pagewww.californiafirst.org
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