AB 811/PACE Resource Page

Current Status – PACE Programs on Hold

As a result of opposition from Fannie Mae and Freddie Mac, the Federal Government sponsored mortgage-finance corporations, all AB811/PACE programs are currently on hold. Efforts are underway by state and local governments that have launched PACE programs, and members of congress, to resolve the issue and advance this innovative financing effort.

To learn more about these recent developments with PACE programs see the following articles and additional resources.

Articles:

Other resources:

Background on AB 811/PACE

California Assembly Bill 811 was signed into law on July 21, 2008 with the goal of eliminating the high upfront costs of solar and other clean energy projects, thus making it easier for homeowners and businesses to reduce their carbon footprint.

AB811 permits California local governments to designate areas where residential and commercial property owners can enter into contractual assessments to receive long-term low-interest loans for energy and water efficiency improvements and renewable energy installations on their property. Improvements financed through AB 811 are permanently fixed to the property rather than the property owners. The financing is repaid through property tax bills.

Local jurisdictions in California can establish their own AB811 programs, called Property Assessed Clean Energy (PACE) programs, or participate in the Statewide PACE program called CaliforniaFIRST. CaliforniaFIRST (sponsored by California Communities, a joint powers authority of the California State Association of Counties and the League of California Cities) handles all the legal, financial, and administrative aspects of the program for its participants.

Following California’s lead, PACE laws have also been passed in 22 other States. In support of these programs the Obama Administration committed $150 million in stimulus act funding to support PACE programs throughout the country.

PACE Programs in the Bay Area

Multiple Bay Area jurisdictions have chosen to participate in the CaliforniaFIRST program and two jurisdictions, Sonoma County and San Francisco, launched their own PACE programs prior to Fannie Mae and Freddie Mac’s opposition to the programs. More information and status updates on all these programs can be found at the following sites:

  • CaliforniaFIRST – The State of California’s PACE program. Bay Area CaliforniaFIRST pilot participants are Alameda, San Mateo, Santa Clara, and Solano Counties (all jurisdictions in these Counties are participants). The pilot phase was originally scheduled to launch summer 2010.
  • GreenFinanceSF – the City of San Francisco’s program
  • Sonoma County Energy Independence Program
  • BerkeleyFIRST – read the case story about the Berkeley pilot program that kicked off PACE efforts in California.

Information provided by BAAQMD, July 2010.

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