In October 2013, the Sacramento Chapter of the Urban Land Institute (ULI) Young Leaders Group (YLG) hosted an event on green financing. The event titled, “Green Financing: Is it Feasible?” highlighted the financing tool known as PACE, or “Property-Assessed Clean Energy.” This financing tool allows existing property owners to make investments in energy efficiency, water conservation, and renewable energy upgrades without having to pay the up-front costs associated with these investments. This is accomplished by allowing property owners to place an assessment on their property tax bill, paid back over periods of up to 20 years. If the property is sold, the tax payment obligation remains with the property and is transferred to the new owner.

Locally, Ygrene Energy Fund administers PACE programs throughout Sacramento and Yolo counties. The amount of financing available to property owners is determined based on the existing property value, with up to 10% of this total value available to put towards up-front upgrade costs. Since the program launch in the City of Sacramento earlier this year, it has seen relatively even participation from both existing commercial and residential properties.  The presentation included the discussion of an example project, a distressed hotel in Sacramento’s Arden Park neighborhood. As a result of Clean Energy Sacramento, this property was able to secure financing to replace a leaky roof and install new high-efficiency windows, heating, cooling, water heating, and low-flow plumbing fixtures.

This successful Sacramento YLG event included representatives from Ygrene, the City of Sacramento’s Greenwise Joint Venture, and a Ygrene certified contractor.  It drew a wide range of professionals, including the surprise guest John F. Shirey, Sacramento’s City Manager. As Greenwise Executive Director Julia Burrows puts it “Clean Energy Sacramento is projected to support 1,500 jobs for every $100 million invested, help improve property values and push the region to the goal of reducing energy use by 15 percent by 2020.” For more information on this program and to look up the potential financing amount available to your property, visit the Clean Energy Sacramento website: https://ygrene.us/ca/sacramento

Blog Post by Sophia Hartkopf who is a member of the Sacramento YLG Board and is Project Manager at TRC Energy Services, a professional firm providing consulting services in the field of building energy efficiency. Contact Sophia at [email protected].