1. PACE 101

2. Ohio’s PACE Laws (Bricker) Ohio PACE Market Development
Outline
Ohio’s PACE Laws (Bricker)
Ohio PACE Market Development
First Programs (AED)
Program Development (Summit County)
Program Implementation (Taussig)

3. OHIO PACE LAWS

4. Ohio PACE Laws Alternative energy improvements (H.B. 1, 2009)
PACE Statutes – ORC 1710, HB 1, SB 232
Alternative energy improvements (H.B. 1, 2009)
Solar photovoltaic (PV) and thermal
Energy efficiency improvements (S.B. 232, 2010)
HVAC
Lighting
Roofs, windows, insulation
Wind
Geothermal
Biomass

5. OHIO PACE MARKET DEVELOPMENT

6. Ohio PACE Market Development
Ohio PACE Financing Totals
$109,956,354 in Ohio PACE
56 Financings
Over 100 Projects
16 ESID Districts

7. Ohio PACE Market Development
Ohio PACE Financing Totals

8. Ohio PACE Market Development
Ohio PACE Programs

9. FIRST PROGRAMS

10. First Programs Formed in 2010 Regional Effort
Northeast Ohio Advanced Energy District (AED)
Formed in 2010
Regional Effort
Cleveland and First Ring Suburbs, organized by First Suburbs
Initial effort for residential projects, shifted to commercial

11. First Programs PACE Program Map in Cuyahoga County Bedford Cleveland
Garfield Heights
Shaker Heights
Bedford Heights
Cleveland Heights
Lakewood
Solon
Berea
East Cleveland
Maple Heights
South Euclid
Brook Park
Euclid
Parma
University Heights
Brooklyn
Fairview Park
Parma Heights
Warrensville Heights

12. PROGRAM DEVELOPMENT

13. County of Summit, Ohio
Jason D. Dodson, Esq., Chief of Staff
Current Efforts to Develop and Expand the Akron-Summit County Energy Special Improvement District

14. About the Akron-Summit County ESID
In 2017, The Development Finance Authority of Summit County (DFA), the City of Akron and the City of Akron partnered together to create an Energy Special Improvement District (ESID). The District was initially created in association with a project in the City of Akron.
To expand the district beyond Akron, the County adopted innovative legislation  to provide businesses, non- profits and governments an additional incentive to make energy-efficient building improvements.
The legislation authorized a cooperative agreement with the DFA and the Northeast Ohio Public Energy Council (NOPEC) to take steps to expand the Akron-Summit County Energy Special Improvement District (ESID) throughout the County using assessment projects on public assets.
As the ESID expands into additional communities, entities including businesses, non-profits and governments will be eligible to fund PACE-eligible projects, without being delayed by the process to create a new ESID as part of the project.

15. Mechanics of Expanding the Akron-Summit County ESID
The County and/or its communities act as petitioners to expand the ESID. PACE-eligible improvement are made to a public asset/infrastructure, for the dual purpose of expanding the ESID and operational savings which benefit taxpayers.
Much of the expansion is accomplished using the County’s sanitary sewer infrastructure (pump stations, treatment plants) that are found in many communities throughout the County.
Typically smaller lighting projects.
DFA funds the loans for the projects, which are repaid through the assessment in a 1-2 year frame.
Project costs start at $500 and can be as high as $2,000.
In communities where the County does not have sewer assts, the community has acted as the petitioner.
Typical projects are lighting upgrades to public park properties or external lighting at public facilities between $5,000-$10,000.
DFA funds the loans, which are repaid through the assessment in 2-3 years.

16. Demonstrable Results from Expanding the Akron-Summit County ESID
ESID initially created in Akron - Cascade Plaza DFA Bond Fund deal closed for $5.6M.
ESID expanded to Bath Township - Crystal Clinic DFA Bond Fund deal closed for $4.1M.
ESID expanded to Barberton - Akron Rubber Development Lab (ARDL) DFA Bond Fund deal will close by September 26th for $2.5M.
Because the County and its communities are taking the lead to create and expand the ESID, private company energy efficiency projects are easier to expedite and implement.
Expansion has paved the way for NOPEC to more easily deploy smaller ESID-based lending tools.

17. Current Status of Expansion
ESID has been expanded to 7 communities, and legislation currently in 1 community.
Anticipate expansion in Phase III and IV communities over next 6 months +/-.
Requirement that ESID expand into contiguous political subdivision somewhat slows expansion.

18. PROGRAM IMPLEMENTATION

19. Andrea Roess, Managing Director
Property Assessed Clean Energy (PACE)
Implementation and Lessons Learned
September 26, 2018
Andrea Roess, Managing Director
(800)

20. Implementation Overview

21. Annual Tasks following Funding
You have started a PACE program… Now what do you do?

22. Annual Tasks following Funding
Servicing Options
Each program Administrator brings their own servicer
Public agency provides servicing function to all Programs (could be internal or consultant)
Annual Assessment Collection
Many PACE programs require annual assessments to be collected on County Property Tax Bill
Other PACE programs use direct billing to property owners
Annual Assessment Includes:
Interest
Principal
Administrative Expenses

23. Annual Tasks following Funding
Respond to property owner questions
Monitor delinquencies, timely payment of interest and principal, reporting
Calculate payoffs, record notice of cancellation
Coordination with Trustee
Direct funds received to the correct account
Coordinate payments to bond holders or assessment owners
Other reporting:
Statistics of new bonds issued, payoffs, etc.
Current year levy
Status of delinquencies
State reporting requirements

24. Lessons Learned

25. Lessons Learned – Case Studies
Commercial Program Case Study #1
Missed regularly scheduled bond payments due to delinquencies
In the future, programs should fund sufficient reserves to meet bond payment obligations
Public agency ultimately offered delinquent property owner the option to pay PACE assessment separately from tax bill
Commercial Program Case Study #2
New program with only one funded parcel
Initial program development costs are high when there are fewer parcels in the program
As the program grows and additional parcels are added, we can achieve significant economies of scale
Larger programs result in lower average administrative costs per parcel

26. Lessons Learned – Case Studies
Commercial Program Case Study #3
Documents were prepared and recorded based on incorrect origination data from program administrator
Document review is critical during the origination process
Origination data and documents should be verified by multiple parties in order to avoid delays in funding and levy errors
Commercial Program Case Study #4
Close coordination with team has resulted in successful transactions
Team engaged in weekly status calls where issues were identified

27. Lessons Learned Other considerations to be aware of:
Education of property owners, contractors, mortgage companies, and realtors
We receive numerous several calls from interested parties who are confused about their PACE lien (i.e., what happens when the property is sold, how to impound/escrow accounts work with PACE lien, etc.)
Keep in mind all of the County departments that you will be working with
Most programs will correspond with the governing boards to obtain program approval
Other County departments, including the Treasurer/Tax Collector, Auditor, and Recorder offices, may also be involved

28. PACE 101