Support SB 516 to Establish the Property Assessed Clean Energy Bond Program

Under the Property Assessed Clean Energy (PACE) bond program, property owners can voluntarily borrow money for investments in energy conservation improvements or to install clean renewable energy options to power their property.  The loan is repaid through an assessment added to the property tax of the applicant and paid back over time with an increase in property tax.

PACE is voluntary!  PACE is voluntary for the State, the municipality, and the homeowner. Any city, county, or homeowner that chooses not to participate in PACE will NOT be affected by PACE legislation.

PACE is Revenue Neutral!  The program this will not impact the state general revenue fund.  PACE is funded by private capital. States and municipalities have the OPTION to utilize their bonding authority to offer a bond to private investors on the open bond market.

How does PACE benefit homeowners? What is so new and different about PACE that will transform (essentially create) the market for home energy upgrades? Three things – access to 100% financing, repayment terms, and transferability.

• Access - Anyone who has paid their property taxes and qualifies can access 100% of the project costs for home energy upgrades. This expands the market by increasing access to financing without requiring a down payment.
• Repayment Terms - Extending repayment up to 20 years means projects are affordable because the energy savings will be higher than the bond repayment amount. Terms will be matched to the useful life of improvements and anticipated energy savings.
• Transferability means that the repayment responsibility stays with the property and is transferred to the new owner if the property is sold. This allows homeowners to invest without fear that they might sell the property before seeing a return on their upfront investment.
  

PACE creates JOBS!  PACE will create opportunities for JOBS that can’t be outsourced. PACE will create JOBS in the hardest hit employment sectors in the state – construction and manufacturing. Home improvement remodelers, HVAC contractors, duct sealers, window companies, insulation contractors, and energy auditors are the primary benefactors (besides home-owners) of this legislation. Manufacturers and retailers that produce/offer HVAC, windows, insulation, and other construction materials also benefit as investments make their way through the supply chain. Construction unemployment is over 20% in Arkansas – these are hard-working folks we can retrain and put back to work.