Property Assessed Clean Energy (PACE)
Property Assessed Clean Energy or PACE programs, allow local government entities to raise money through the issuance of bonds or other sources of capital to fund energy efficiency and renewable energy projects to eligible property owners. Through the creation of financing districts, property owners can finance renewable onsite generation installations and energy efficiency improvements through a special assessment on their property tax bills that is repaid over a period up to 20 years.
This voluntary assessment is secured by a senior lien on the property and does not require upfront payment. The lien provides debt collateral in the event a property owner defaults on the assessment. In most cases, the assessment and the lien are transferred upon sale.
Missouri enacted PACE legislation in 2010 (HB 1692) that authorizes the formation of clean energy development boards by one or more municipalities for the purpose of establishing PACE programs (Sections 67.2800 – 67.2835, RSMo). Municipalities are defined as counties, cities or incorporated towns or villages in Missouri. Boards will establish application requirements and criteria for project approval, evaluate proposed projects and the credit-worthiness of property owners, enter into assessment contracts and administer the loans or use third party providers for financing origination.
The Missouri PACE legislation allows PACE to be used for energy efficiency improvements and renewable energy improvements.
Energy efficiency improvements include any acquisition, installation or modification on or of publicly- or privately-owned property which is designed to reduce the energy consumption of such property, including, but not limited to:
- Insulation in walls, roofs, attics, floors, foundations, and heating and cooling distribution systems
- Storm windows and doors, multi-glazed windows and doors, heat-absorbing or heat-reflective windows and doors, and other window and door improvements designed to reduce energy consumption
- Automatic energy control systems
- Heating, ventilating, or air conditioning distribution system modifications and replacements;
- Caulking and weatherstripping
- Replacement or modification of lighting fixtures to increase energy efficiency of the lighting system without increasing the overall illumination of the building unless the increase in illumination is necessary to conform to applicable state or local building codes
- Energy recovery systems
- Daylighting systems
Renewable energy improvements include any acquisition and installation of a fixture, product, system, device, or combination thereof on publicly- or privately-owned property which produces energy from renewable resources, including, but not limited to:
- Photovoltaic systems
- Solar thermal systems
- Wind systems
- Biomass systems
- Geothermal systems
Missouri Clean Energy District
The Missouri Clean Energy District (MCED) offers funding statewide to participating communities. It has contracted with the Missouri Clean Energy Fund, LLC as its PACE Administrator. Eligible properties and projects include residential, commercial, industrial, agricultural, multi-family, not-for-profit, and public facilities. Additional information about program eligibility, cost to participate, participating communities can be found at MCED’s website.
Show Me PACE Clean Energy District
The Show Me PACE Clean Energy District offers funding statewide to participating communities. Show Me Pace has selected the Missouri Energy Initiative, a Missouri based 501(c)3 nonpartisan nonprofit, as the administrator. Show Me PACE can provide financing starting from $50,000 for energy efficiency, renewable energy, and water conservation projects. Commercial, industrial, agriculture, multi-family residential, nonprofit, and public (governmental) properties are eligible for this program. Additional information can be found at the Show Me PACE website.
St. Louis PACE
Set the PACE offers funding to home and building owners in the City to financing energy efficiency, renewable energy, and water efficiency upgrades. Set the PACE St. Louis is administered by Energy Equity Funding, LLC, on behalf of the St. Louis Clean Energy Development Board with project financing from PNC Bank. Residential, commercial, industrial, and multi-family properties are eligible for this program. Additional information can be found at the Set the PACE St. Louis website.
Missouri counties, cities and incorporated towns and villages may establish their own clean energy development boards or join one of Missouri’s statewide clean energy districts and may do so by passing an ordinance formally adopting the PACE lending program.
More information can be found at the following websites: