Action Alert

Urge Your House Member to Co-Sponsor Legislation that Would Enable PACE Financing

On Wednesday, July 20th, Representatives Nan Hayworth (R-NY), Dan Lungren (R-CA) and Mike Thompson (D-CA) introduced the PACE Assessment Protection Act of 2011 (H.R. 2599) in the U.S. House of Representatives. This legislation would restore the right of states and local governments to establish Property Assessed Clean Energy (PACE) programs.  Contact your Member of Congress and urge them to be a co-sponsor of this bill.

Background:

PACE is an innovative financing tool that can help homeowners save money on their utility bills.  PACE programs allow a homeowner to receive low-interest financing for energy efficiency and renewable energy improvements.  PACE financing is repaid through a voluntary long-term assessment on a homeowner’s property taxes over a 15-20 year time period.  When a homeowner sells their property, the repayment obligation, as well as the benefits of the energy efficiency and renewable energy improvements, transfer to the next homeowner.  PACE programs eliminate the upfront cost barriers of energy retrofits, and ensure that current and future homeowners fairly share the costs and benefits of those improvements.  

PACE authorizing legislation has been adopted in 27 states and the District of Columbia, and communities nationwide were beginning to take steps to establish PACE programs last year.  However, in July 2010, the Federal Housing Finance Agency (FHFA) Fannie Mae and Freddie Mac to stop underwriting mortgages with PACE assessments and wrongly characterized PACE assessments as loans. Because nearly ninety percent of new mortgages are underwritten by Fannie and Freddie, this has brought very successful PACE programs to a halt.  In response to FHFA’s action, legislation was introduced in the 111th Congress to fix the PACE problem, and multiple court cases have been filed.

PACE Assessment Protection Act of 2011:

Bipartisan legislation to restore PACE programs will be introduced in the U.S. Congress House of Representatives on Wednesday, July 20th.  The PACE Assessment Protection Act of 2011 would stop this federal overreach and allow PACE programs to continue reducing energy consumption, boosting our economy, and creating jobs, without mandates from the government or taxpayer funds.  It would also require that local governments follow prudent standards to ensure that homeowners can afford the PACE assessments, and it protects Fannie Mae and Freddie Mac from potential losses.  Specifically, the legislation would:

• Rescind FHFA’s guidance and affirm the validity of PACE financing
• Defines a PACE financing as an “assessment,” not a “loan.”
• Limit/eliminate the risk to Fannie Mae and Freddie Mac by establishing national program standards (underwriting criteria, consumer protections, qualifying improvements, qualifying contractors)

To view a copy of the draft legislation, click here.

Take Action:

Contact your House Member today at 202-224-3121 and urge them to co-sponsor H.R. 2599.  Republican House Members interested in co-sponsoring the bill should contact John Van Etten in Representative Hayworth’s office at (202) 225-5441; Democratic House Members should contact Carla McNeill in Representative Thompson’s office at (202) 225-3311.

Endorse the 2011 "Empowering Local Clean Energy Action" Federal Policy Agenda

Climate Communities is seeking the endorsement of local elected leaders from across America for its “Empowering Local Clean Energy Action" federal policy agenda.   The plan identifies federal funding, policies and incentives that Climate Communities will work with 112th Congress and the Obama Administration to enact in 2011 to support local clean energy initiatives.  Click here to view a copy of the agenda.