Energize NY (PACE) Finance - Get PACE in your community
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Energize NY Finance PROGRAM DESCRIPTION AND BENEFITS MAY 2014 1
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Overview of the Energize NY (PACE) Finance offering that provides much needed capital specifically for clean energy projects in NYS's commercial buildings. Includes guidelines for getting PACE in your municipality. Followed by a short PACE finance explainer video. More info at http://commercial.energizeny.org
Transcript of Energize NY (PACE) Finance - Get PACE in your community
Energize NY FinancePROGRAM DESCRIPTION AND BENEFITS
MAY 2014
1
EICEnergy Improvement Corporation
• Not-for-profit, Local Development Corp.
• Mission to increase Energy Efficiency & Renewable Energy
• Utilizes a shared service model
• Funded by NYSERDA, DOE, revenue from financings
• Serve property owners with three programs
• Energize NY Commercial
• Energize NY Financial
• Energize NY Residential
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Energize NY (ENY) Finance is NY State’s PACE program
“Municipalities would fulfill an important public purpose by
providing financing to property owners for the installation of
renewable energy systems & energy efficiency measures.”
- Article 5L of the NYS General Municipal Law
NY passed PACE legislation in 2009
Repayments collected by municipality via tax bill charge
Senior lien status
PACE FinanceProperty Assessed Clean Energy
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Benefits of ENY Finance• Automatically transfers to
next property owner
• Aligned with community goals
• Job creation
• Keep dollars local
• Improve building stock
• Meet sustainability goals
• Based on property’s ability to carry tax charge
• Covers up to 100% of project cost
• Long terms with competitive rates
• Rates @ 3.75-6.5%
• Terms up to 20 years
• Deeper upgrades
• Positive cash flow
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Financing Criteria Estimated annual energy savings from improvements must be
greater than annual finance payments
Improvements have savings-to-investment ratio > 1
Property’s existing loan-to-value is no greater than 80%
Financing up to 10% of value of benefitted property
No bankruptcy within last 7 years
At least 3 year history of timely property tax payments
Existing lender consent required
Up to 20 year financing terms
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Municipal Tax
Receiver
Special
Tax
“Charge”
payments
$Bond payments
Capital markets
Bond funds
$
$
Energize NY Finance
offered to property
within the Municipal
boundary
Pledged
Municipal
Payments
$EIC
Bank TrusteeAllows for lowercost of capital
Municipal
Boundaries
ENY Capital Flows
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Current Members
Bedford
Croton-On-Hudson
Greenburgh (Town)
Lewisboro
New Rochelle
North Salem
Ossining (Town)
Peekskill
Pound Ridge
Somers
White Plains
Yorktown
Orange County
MemberPopulation:
750,000
Prospective Member
Population:4,725,000
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EIC Member Services MEMBER SERVICES
• Launch & event planning for municipality
• Website communications for municipality
• Training services for local contractors/solar developers
• Outreach & marketing support for municipality
PROPERTY OWNER SERVICES
• Support with NYSERDA
• Application support
• Finance analysis tools
• Contractor qualification
• Property owner summits
• Measurement & verification
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Municipal Role
Municipality must join EIC to use ENY Finance
1. Municipality passes local law establishing program within municipal borders
◦ Template legislation completed
2. Sign IMA that codifies the tax repayments to be transferred to EIC’s trustee
◦ Template IMA completed
3. Formally request EIC membership through letter to EIC Board
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Joining EIC – Costs
Municipality incurs no variable cost as a member of EIC
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EIC protects Municipality from permanent losses from defaulted tax bill charge payments through EIC’s Municipal Loss Reserve fund
Economic Development Savings on energy bills = money that stays in
local economy Community stakeholders have increased dollars
Spending and reinvestment in local economy
Energy upgrade projects = jobs creation Increased demand for
skilled building professionals
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Environmental Benefit
Goals of Energize NY Finance directly align with most Municipal Sustainability Plans
Healthier, livable communities
Cleaner air quality, less pollution
Reduce reliance on fossil fuels
Promote renewable energy generation
Align efforts with state and federal sustainability initiatives
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Another Product from Energize NY Finance:
The Westchester ProjectFederal Qualified Energy Conservation Bonds (QECBs)
Westchester government allocated QECB bonding authority to ENY
Affordable multifamily housing & not-for-profits
Federally subsidized interest rates (3-4%)
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Everyone Benefits
More projects
Deeper upgrades
Lower energy costs
Environmental benefits
Improved value of building stock
NYSERDA helps ensure quality & cost effectiveness
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Let’s Get Started
1. Find out if your municipality is a member. If not, send an encouragement letter to your elected official.
2. Municipality passes a local law and signs the Inter Municipal Agreement.
3. Launch Energize NY in your community!
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