Property Assessed Clean Energy (PACE)


What is PACE?

Property Assessed Clean Energy, or PACE, is a financing mechanism that enables low-cost, long-term funding for energy efficiency and renewable energy projects. PACE financing is repaid as an assessment on the property's regular tax bill, and is processed the same way as other local public benefit assessments.

    PACE in Nevada

    Existing law sets forth the procedures for a governing body to acquire, improve, equip, operate or maintain local improvement districts that include various types of projects, including energy efficiency improvement projects and renewable energy projects (NRS 271.265-271.630). The Governor’s Office of Energy sponsored AssemblyBill 5 in the 2017 Session of the Nevada Legislature as PACE-enabling legislation which provides for the creation, by a local government, of a local improvement district that includes an energy efficiency improvement project or a renewable energy project on commercial private property.   

    In order for a PACE program to be implemented, the local governing body must adopt a resolution for the creation and administration of a PACE program for the purpose of financing energy efficiency or renewable energy projects. The legislation does not mandate that the local government adopt a PACE program; it is strictly voluntary, but it does require that a resolution be adopted and procedures put in place if the local government chooses to implement a PACE program.

    AB 5 enables a lien to be attached to the property which is superior to the mortgage and runs with the property, thus allowing the property to be sold and payments to continue through the next owner just as property taxes are paid.AB 5 was approved by Governor Brian Sandoval on June 1, 2017 and went into effect on July 1, 2017.

      FAQs

      1.     Where does the money for my loan come from? The funding for the project would typically come from conventional lenders, such as a bank or credit union, or a private investor. It is considered property assessed, but is independent of the local government balance sheet. This means that the local government is not responsible for providing the capital or recovering any losses; they simply act as a conduit between the property owner and the lender.

      2.     Will this legislation require that my county government establish a PACE program? The legislation enables SIDs for PACE projects only. It does not require that a municipality or taxing authority establish a PACE program.

      3.     Do I apply to a state agency for a PACE loan? You will apply for your PACE loan through the procedure established by your municipality.

      4.     How will I know if my project is eligible? The legislation defines what type of energy efficiency and renewable energy projects are eligible under the PACE program established by the municipality.

        Check with your municipality for PACE program implementation status.