SUBJECT
Title
EXPANSION OF COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM (DISTRICTS: ALL)
Body
OVERVIEW
State law provides for Property Assessed Clean Energy (PACE) programs, which give residential and commercial property owners a way to finance energy efficiency, water conservation, and renewable energy improvements through the use of secured property tax assessments. Since 2009, the County has approved various PACE programs in the past with CaliforniaFIRST, Figtree, HERO, Ygrene and AllianceNRG. Today’s action is to approve a resolution to expand the Figtree PACE program to include seismic strengthening, EV charging infrastructure, and wildfire suppression and safety improvements.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
Adopt the Resolution entitled:
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO AUTHORIZING THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY TO CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE COUNTY OF SAN DIEGO; AND AUTHORIZING RELATED ACTIONS
EQUITY IMPACT STATEMENT
PACE enables property owners to finance the usually large, up-front costs of energy or other eligible improvements on a property through their property tax bill. The program was created in part to address equity issues by making sustainable energy improvements more affordable for homeowners that otherwise may not have been able to make these improvements. Demographic information will need to be requested from the individual program administrators to determine trends or patterns regarding program utilization.
FISCAL IMPACT
There is no fiscal impact associated with today’s action. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
In 2008, AB 811 was enacted in California with the hope of stimulating the increased energy efficiency and use of alternative energy sources by home, business and industrial property owners. AB 811 established parameters for financing alternative energy sources or greater energy efficiencies for property owners by enabling the County of San Diego (“County”) to allow property owners the ability to pay back these improvements through assessments on the annual property tax bills. These programs are commonly known as Property Assessed Clean Energy (PACE) programs. For property owners in a jurisdiction to participate in these programs, the governing entity of the jurisdiction must give authority (such as through a resolution) to operate in the jurisdiction.
On December 8, 2009 (30) the San Diego County Board of Supervisors (“Board”) approved the County’s participation in various PACE programs: CaliforniaFIRST, offered through California Statewide Communities Development Authority; Figtree, HERO, Ygrene and AllianceNRG. This allowed property owners in the unincorporated areas of the county to participate in any of these programs if they wish. Once the Board grants authority, each program is independently administered by each provider. For the Figtree PACE program, which is for commercial property owners only, 16 projects have been funded on properties in San Diego County since 2014.
Since that time, State law has been amended to expand the use of PACE such as seismic strengthening, EV charging infrastructure, and wildfire suppression and safety improvements. Figtree PACE, whose program is administered by Dividend Finance, has requested that the County expand the program to include these measures. Today’s action is to approve a resolution to expand the Figtree PACE program to include these additional PACE measures.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve a resolution to expand the Figtree PACE program to include seismic strengthening, EV charging infrastructure, and wildfire suppression and safety improvements supports the Sustainability, Community and Climate Strategic Initiatives in the County of San Diego’s 2022-2027 Strategic Plan by providing residents with an alternative financing option for sustainable energy improvements to their property.
Respectfully submitted,
HELEN N. ROBBINS-MEYER
Chief Administrative Officer
ATTACHMENT(S)
Resolution