BEATRICE – The City of Omaha is the first to adopt an ordinance allowing its’ use in Nebraska. The City of Lincoln is considering the same. Now, Beatrice is being asked to consider Property Assessed Clean Energy financing, or PACE, as another tool for economic development. It’s described as a low-cost, long-term financing mechanism for energy efficiency or renewable energy projects.
:34 “allow its use”
Chris Peterson, Managing Partner for Pace Sage Capital in Nebraska, worked as a Legislative Aid to former State Senator Heath Mello when PACE was enabled through state law, making Nebraska the 34th state to enact it.
The financing mechanism is available for commercial projects and those undertaken by non-profits. Private capital sources, but not banks, utilize the program. Peterson says the term of a loan is up to thirty years.
:26 “length of the loan”
The loan for fixed energy projects remains with the property, if it is sold.
:29 “is there a lien”
Peterson says an amendment to the law in 2017 added a provision for direct collection between the lender and borrower, eliminating involvement in that by a city or county. The main governmental role would be reviewing loan applications with a checklist to make sure they comply with the law’s provisions.
Peterson says there is no city reserve required on commercial PACE projects. Omaha became the first city to pass a PACE ordinance and is using a loan of $3.4 million to help convert an office building into a hotel, making energy efficiency upgrades.