HB&C recently completed work on the Program Guide for Colorado’s new commercial Property Assessed Clean Energy (PACE) program. This guide represents something close to the culmination of a year-long effort to launch commercial PACE in Colorado. HB&C is excited at the near-term prospect of the PACE launch, and feels that the program we have designed, in support of the Colorado Energy Office and the Colorado New Energy Improvement District (NEID) board, is going to be one of the best PACE programs in the country.
- We have designed the program with input from property owners, lenders and other capital providers, contractors, advocates and others.
- We have focused on creating a program that is designed to generate deal flow. That means we’ve tried hard to create a program that’s easy for contractors, property owners and lenders to use. A great benefit of this is that program fees remain low because the administrational burden has been reduced.
- We have built the program as an “open market” program, meaning that any qualified lender can participate. This should stimulate competition among lenders to drive down financing costs.
- We have focused hard on creating a program that incorporates strong contractor education and outreach.
- We have worked hard to seek the input of local governments in the design of the program, and have already secured the opt-in of the first county government.
- The program is designed to achieve robust energy efficiency goals, but is also designed to allow for a wide variety of projects, with a diverse array of measures and simple paybacks, to qualify.
- We have allowed for the inclusion of new construction in the PACE program, and developed a customized methodology to track the cost of a baseline versus an incremental efficiency increase over that baseline, the difference between these two can be financed.
The program should launch in the fall of 2015 and has already conducted an RFA process and chosen an administrator for the program. Interested investors, project developers, contractors and property owners should feel free to contact Harcourt Brown & Carey for updates on the program or to be added to the mailing list.