AGENDA ITEM #12
March
3~
2015
Public Hearing
MEMORANDUM
February
27~
2015
TO:
FROM:
SUBJECT:
County Council
-
Amanda Mihill, Legislative Attorney
"~~
Public Hearing:
Bill 6-15, Commercial Property Assessed Clean Energy Program
- Established
Bill 6-15, Commercial Property Assessed Clean Energy Program - Established, sponsored by the
Council President at the request of the County Executive, was introduced on February 3, 2015. A
Transportation,
Infrastructure~
Energy and Environment Committee worksession is tentatively
scheduled for March 18 at 2:00 p.m.
Bill 6-15 would:
• establish a Commercial Property Assessed Clean Energy Program to assist qualifying
commercial property owners to make energy improvements;
• allow private lenders that provide capital for a commercial loan provided under a local
clean energy loan program to have annual loan payments collected by the County as a
surcharge on a real property tax bill;
• establish that the surcharge on a real property tax bill is treated as all other taxes and
charges and that an unpaid surcharge shall
be~
until paid, a lien on the real property on
which it is imposed; and
• generally amend the environmental sustainability law.
This packet contains:
Bill 6-15
Legislative Request Report
Executive transmittal memorandum
Fiscal and Economic Impact statement
Circle
#
1
11
l3
14
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Bill No.
6-15
Conceming: Commercial
Prooertv
Assessed Clean Energy Program ­
Established
Revised:
1/14/2015
Draft No. 1
Introduced:
February 3, 2015
Enacted:
August 3,2016
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date:
.....JN~o::!!.n~e
_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT to:
(1) establish a Commercial Property Assessed Clean Energy Program to assist qualifying
commercial property owners to make energy improvements;
(2)
allow private lenders that provide capital for a commercial loan provided under a local
clean energy loan program to have annual loan payments collected by the County as a
surcharge on a
real
property tax bill;
(3) establish that the surcharge on a real property tax bill is treated as all other taxes and
charges and that an unpaid surcharge shall be, until paid, a lien on the real property on
which it
is
imposed; and
(4) generally amend the environmental sustainability law.
By amending
Montgomery County Code
Chapter 18A, Environmental Sustainability
Article 5
Sections 18A-33,18A-34, 18A-35, 18A-36, and 18A-37
Boldface
Underlining
[Single boldface brackets]
Double undedining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL No. 6-15
1
Sec.
I.
Sections 18A-33, 18A-34, 18A-35, 18A-36, and 18A-37 are amended
as follows:
Article 5. Commercial Property Assessed Clean Energy Program
18A-33. [Commercial Property Assessed Clean Energy Program] Definitions.
2
3
4
5
(a)
Definition§...
In
this Section, the following words have the meanings
6
7
indicated:
Commercial property
means any real property located in the County that
8
9
is either not designed for or intended for human habitation, or that is used
for human habitation as
~
multi-family dwelling of
1:
or more rental units.
Commercial Property Assessed Clean Energy Program
or
Program
10
11
means
~
program that facilitates energy improvements and requires
12
13
repayment through
~
surcharge on the owner's property tax bill.
County designated lender
means
~
person who may be selected
by
the
14
15
16
County through
~
competitive process to offer fmancing, and if offered
and accepted
by
the County, related funding for administrative services
for the Program.
County designated program manager
means
~
17
18
person who may be
selected
by
the County through
~
competitive process to provide
19
20
21
administrative and management services for the Program.
Department
means the Department of Finance.
Director
means the Director of the Department or the Director's
22
23
24
designee.
Energy efficiency and/or renewable energy improvement
or
improvement
means any equipment, device, or material that is intended to decrease
energy consumption or expand use of renewable energy sources,
including:
25
26
27
ill
insulation in any wall, roof, tloor, foundation, or heating and
m
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BILL
No. 6-15
28
29
cooling distribution system;
ill
i!
storm window or door, multi-glazed window or door, heat­
30
31
32
33
34
35
36
37
38
absorbing or heat-reflective glazed and coated window and door
system, or additional glazing, reduction in glass area, and other
window and door system modification that reduces energy
consumption;
ill
ill
ill
®
an automated energy control system;
i!
heating, ventilating, or air-conditioning and distribution system
modification or replacement;
caulking, weather-stripping, and air sealing;
replacement or modification of
i!
lighting fixture to reduce the
energy use ofthe lighting system;
39
40
41
ill
®
(2)
an energy recovery system;
i!
day lighting system;
42
43
44
45
46
the installation or upgrnde of electrical wiring or outlets to charge
i!
motor vehicle that is fully or partially powered
Qy
electricity;
Ll..Q)
i!
measure that reduces the usage of water or increases the
efficiency of water usage;
Q.l)
any other installation or modification of equipment, device, or
other material intended to decrease energy consumption or expand
the use of
i!
renewable energy source;
47
48
49
50
51
52
53
54
@
any measure or system that makes use of or expands
i!
renewable
source of energy, including solar water heater, solar thermal
electric, photovoltaic' s, wind, biomass, hydroelectric, geothermal
electric, geothermal heat pumps, anaerobic digestion, tidal energy,
wave energy, ocean thermal, fuel cells using renewable fuels, and
geothermal direct-use; or
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BILL No. 6-15
55
56
57
58
59
.Q.J}
any renewable energy system that is
~
fIxture, product, device, or
interacting group of fIxtures, products, or devices on the
customer's side of the electricity meter that uses at least one
renewable energy source to generate electricity. A renewable
energy system includes
~
biomass system, but does not include an
incinerator or digester.
Private lender
means
~
lender selected
Qy
the property owner to provide
loan funds to the property owner for an improvement.
Property owner
means
~
60
61
62
63
person who owns qualifIed property or has
f!
64
65
ground lease or
f!
long-term lease
of~
or more years on qualifIed property.
Qualified property
means any commercial real property that meets the
eligibility criteria for the Program.
Renewable energy source
means
replenishes over
~
66
67
68
~
source of energy that naturally
human, not
~
geological, time frame and that is
69
70
71
72
73
ultimately derived from solar power, water power, or wind power.
Renewable energy source
does not include petroleum, nuclear, natural
gas, or coal. A
renewable energy source
comes from the sun or from
thermal inertia of the earth and minimizes the output of toxic material in
the conversion ofthe energy and includes:
74
75
76
77
ill
ill
ill
(±)
non-hazardous, organic biomass material;
solar electric and solar thermal energy;
wind energy;
geothermal energy; and
methane gas captured from
~
landfIll.
78
79
ill
Surcharge
means the annual repayment of
f!
loan, including principal,
interest, and related charges, that funds an improvement and is collected
through the real property
tax
billing process.
80
81
F~
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BILL
No.
6-15
82
83
84
[(b)
The Executive must, by May 19,2014, prepare a plan for implementing
a Commercial Property Assessed Clean Energy Program that analyzes
and provides recommendations on the following elements:
(1)
(2)
(3)
standards for eligible energy and environmental improvements;
energy audit or project design review requirements;
procedures for monitoring project progress and post-installation
inspections;
(4)
(5)
(6)
(7)
(8)
program funding sources;
lending standards and priorities;
minimum and maximum loan amounts;
interest rates, terms, and conditions;
application
procedures,
including
necessary
supporting
85
86
87
88
89
90
91
92
93
94
95
96
documentation;
(9)
criteria for adequate security;
(10) procedures to refer applicants to other public and private sources
offunds and incentives;
(11) procedures related to decisions on loan acceptance and denial, or
loan terms and conditions;
(12) procedures for nonpayment or default;
(13) disclosure requirements for real estate transactions;
(14) criteria for loan disbursement; and
(15) any additional requirements necessary for program operation or
security of loan funds identified by the Executive.]
[l18A-34
97
98
99
100
101
102
103
104
105
106
107
108
=
18A-37. Reserved.]]
Established.
The Director must create and administer
Property Assessed Clean Energy Program.
~
18A-34. Commercial Property Assessed Clean Energy Program established.
!ill
Commercial
G)
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BILL
No.
6-15
109
110
111
112
113
®
Third-party lender.
The Director may enter into an agreement with
!!
third-party lender that is either
!!
County designated lender or
!!
private
lender that funds !! loan for an improvement. The agreement must provide
for the repayment of the loan for the improvement and any cost of
administering the Program through!! surcharge on the qualified property.
The loan may include the cost of materials and labor necessary for
installation, any permit fee, any inspection fee, any application or
administrative fee, any bank or lender fee, and any other fee that the
property owner may incur for the installation of the improvement. The
third-party lender must submit !! request for collection of each surcharge
amount to the County designated program manager
~
114
115
116
117
118
119
if there is no
120
121
122
123
124
125
126
127
128
129
l30
131
County designated program manager, to the Department no later than
April
1
ofeach year.
(£1
County designated program manager.
The Director may enter into an
agreement with !! County designated program manager. The County
designated program manager must notify the Department of the amount
ofthe surcharge for each account to be collected on the real property
tax
bill for that year's
1m
no later than May
1
of each year, and in!! format
approved Qy the Department. The County designated program manager
will receive the collections from the County, reconcile the collected and
billed surcharge for each account, and remit the surcharge amount to the
County designated lender or private lender. The County designated
program manager must report annually to the County on the participants
in the Program
Qy
name, property address, property
tax
account number,
amount ofeach surcharge billed, collected
Qy
the County, and remitted to
the lender, description ofproject, any administrative fees, the amount of
each loan, the amount of each loan balance, and the term of each loan.
l32
l33
134
l35
M
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BILL
No.
6-15
136
137
138
139
This report must be submitted to the Department no later than February
.li
of each year pertaining to activity in the prior calendar year.
@
The Director may enter into an agreement with one person who provides
both County designated lender and County designated program manager
servIces.
18A-35. Eligibility.
In order to be eligible for this Program, the following criteria must be met:
140
141
142
143
144
ill
Eligibility.
145
146
ill
ill
The property must be
~
qualified property.
The property owner must submit the following to the private lender
or the County designated lender at the time of application for
funding:
(A)
express written consent of any holder of an existing
mortgage or deed oftrust on
~
qualified property; and
147
148
149
150
151
152
153
ill}
verification that there are no delinquent fees, taxes, water or
sewer charges or other special assessments on the qualified
property.
ill
The loan amount under this Program must:
(A)
be at least $5,000 and no more
than
20% of the full cash
value of the qualified property. The full cash value is
determined
Qy
the Maryland State Department of
Assessments and Taxation; and
154
155
156
157
158
159
160
ill}
together with the outstanding balance of the mortgage or
deed oftrust, be no more than
900/0
ofthe full cash value of
the qualified property.
161
162
(Q)
Property Assessed Clean Energy Surcharge.
ill
The property owner of qualified property must agree to repay the
F~
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Bill No. 6-15
163
164
165
166
167
168
169
170
amount financed through
~
surcharge levied on the County's real
property
tax
bill for the qualified property.
ill
ill
A surcharge may be imposed under
~
written agreement between
the County designated lender or private lender and the County.
As
~
condition for entering into an agreement under the Program,
the County designated lender or private lender must provide the
County designated program manager and the Department
~
ofthe loan documents and documents that verify:
(A)
there are no delinquent taxes, special assessments, or water
or sewer charges on the qualified property;
~
171
172
173
174
ill)
there are no delinquent assessments on the qualified
property under the Program;
175
176
(Q
ill.)
the property owner has obtained all necessary permits;
the improvement is permanently affixed to the qualified
property and complies with all applicable State and federal
statutes and regulations, as determined
hy
the appropriate
regulatory authority;
177
178
179
180
.aD
ill
(G)
existing mortgage or deed oftrust lender consent;
loan to value documentation; and
any other financial or program document that the Director
deems necessary.
181
182
183
184
185
186
ill
In
addition to the administrative fees in Section 18A-34(c), the
County may collect an administrative fee through the surcharge to
cover charges relating to lending, program management, billing, or
collection.
18A-36. Payment of surchal1!e; lien.
187
188
189
W
The County must collect the amount financed through
~
surcharge on the
F~
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BILL
No. 6-15
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
property owner's real property tax bill and forward payments received
Qy
the County to the County designated program manager
ill::t
if there is no
County designated program manager, to the lender no later than 30 days
after the payment due dates for real property taxes. Payment due dates for
semi-annual real property taxes are September 30 for the first installment
and December
11
for the second installment, and for annual real property
taxes the payment due date is September 30.
(hl
Ifthe property owner sells the qualified property, the buyer must continue
to
P.ID:
the surcharge levied on the annual property tax bill.
(g)
The surcharge and any accrued interest or penalty constitutes.@; first lien
on the real property to which the surcharge applies until paid. An unpaid
surcharge will be, until paid, .@; lien on the qualified property on which
i!
is imposed from the date it becomes payable. The surcharge will accrue
interest and penalty and will be treated and collected like all other County
property taxes. Any delinquency will be collected through the County
Tax Sale process. The provisions of Title 14, Subtitle
Property Article of the Maryland Code that
rumlY
to
~
~
of the Tax
=
tax lien will also
apply
to
the lien created under this law. Any delinquent surcharge
collected through the County Tax Sale process must be forwarded to the
County designated program manager
ill::t
ifthere is no County designated
program manager, to the lender no later than 30 days after the payment
was received.
18A-37. Re2ulations; annual report.
W
(hl
The Executive may adopt regulations under Method
ill
to administer the
Program.
The Executive must submit an annual report to the County Council
Qy
March
li
of each year
describing program participation, number and
C9J
.
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BILL
No. 6-15
217
218
dollar value of surcharge billed and collected, and other relevant
information pertaining to the prior calendar year.
Approved:
219
220
George Leventhal, President, County Council
221
Approved:
Date
222
Isiah Leggett, County Executive
Date
223
224
This is a correct copy o/Council action.
Linda M. Lauer, Clerk ofthe Council
Date
225
flO.l
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LEGISLATIVE REQUEST REPORT
Bill 6-15
Commercial Property Assessed Clean Energy Program
-
Established
DESCRIPTION:
The requested legislation amends Article 5, Sections 33-37 of Chapter
18A of the Montgomery County Code. The amended sections establish a
Commercial Property Assessed Clean Energy (PACE) Program to assist
qualifying commercial property owners to make energy improvements;
allow private lenders that provide capital for a commercial loan provided
under a local clean energy loan program to have annual loan payments
collected by the County as a surcharge on a property
tax
bill; establish that
the surcharge on a property
tax
bill is treated as all other taxes and charges
and that an unpaid surcharge shall be, until paid, a lien on the real property
on which it is imposed; and generally amend the environmental
sustainability law. Current law, as adopted through Bill 11-13, requires
that the County Executive submit a Commercial PACE Program
Implementation Plan to the County Council on May 19, 2014. The
County Executive submitted an Implementation Plan and is subsequently
submitting legislation to establish the PACE program.
Energy efficiency and renewable energy improvements, for example
high-efficiency heating and air-conditioning systems, may be
prohibitively costly to the property owner. PACE is designed to assist
qualifying commercial properties with fmancing energy improvements.
The PACE loan from a private lender is paid back through annual
surcharges on the property
tax
bill. This loan stays with the property and
a subsequent owner continues to pay the surcharge until the loan is fully
paid. Moreover, having the PACE surcharge included on the tax bill
provides greater security for the lender in the loan repayment as it allows
the charge to be part ofthe tax bill and therefore part ofthe tax lien process
ifthe PACE surcharge goes unpaid. PACE also addresses the problem of
"split incentive" where an owner-financed improvement benefits the
tenant through energy savings. Using the PACE repayment process, such
improvement repayments are levied through the property tax bill that in
many cases are paid by the tenant.
PROBLEM:
GOALS AND
OBJECTIVES:
To implement a Commercial PACE program that makes energy efficiency
and renewable energy improvements more affordable and provides
greater security to lenders in terms of collection of loan payments. Such
energy improvements provide an environmental benefit to the borrower
and the County.
Department of Finance
COORDINATION:
@
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FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
Office of Management and Budget
Department of Finance
nla
PACE programs have been introduced in various jurisdictions, including
Washington DC, San Francisco, Connecticut and Florida.
In
some cases,
the jurisdiction provides funding, such as in Washington DC, while in
others, for example San Francisco CA, the program relies on private
capital or owner-arranged financing.
SOURCE OF
INFORMATION:
Robert Hagedoom, Department of Finance (7-8887)
APPLICATION
WITHIN
MUNICIPALITIES:
nla
PENALTIES:
nla
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
January 14,2015
TO:
FROM:
George Leventhal, President
Montgomery County Council
Isiah Leggett, County Executive -.-...­
SUBJECT: Expedited Legislation - Commercial Property Assessed Clean Energy
Program
I am hereby submitting expedited legislation for your consideration and
County Council action. The legislation amends the County Code to establish a
Commercial Property Assessed Clean Energy (PACE) Program.
The PACE Program assists qualifyiIig commercial property owners with
making energy improvements; allows private lenders that provide capital for a
commercial loan provided under a local clean energy loan program
to
have annual loan
payments collected by the County as a surcharge on a property
tax
bill; and generally
amends the environmental sustainability law.
Pursuant to current law, I submitted a Commercial PACE Program
Implementation Plan to the County Council by May 19,2014, and am subsequently
submitting legislation to establish the PACE program. I look forward to working with
the Council to implement this important environmental. initiative.
co:
Timothy Firestine, Chief Administrative Officer
Marc Hansen, County Attorney
Joseph Beach, Director of Finance
Jennifer Hughes, Director, Office of Management and Budget
Bonnie Kirkland, Assistant
Chief
Administrative Officer
Attachments: Expedited Legislation; Legislative Request Report; Fiscal Impact
Statement; "Economic Impact Statement
..
.
'~
'
'"
montgomerycountymd.gov/311 ..
'(53"
"1"':~,
'tr....
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240-773-3556
TTY'
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.-.
!
ROCKVILLE, MARYLAND
MEMORANDUM
November 21,2014
TO:
FROM:
SUBJECT:
Timothy L;jF" Chief Administrative Officer
estine,
Jennifer A.
Joseph F.
es, Director, Office ofManagement and Budget
h, Director, Department of Finance
FEIS for Bill XX-14, Commercial Property Assessed Clean Energy Program­
Established
Please find attached the fiscal impact statement for the above-referenced bill.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, DireclDr, Public Information Office
Joseph Beach, Director, Department of Finance
Elyse Greenwald, Office of Management and Budget
Alex Espinosa, Office ofManagement and Budget
Naeem Mia, Office of
Managem~nt
and Budget .
,/
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",
Fiscal Impact Statement
Bill XX-14, Commercial Property Assessed
Clean Energy Program - Established
1. Legislative Summary.
The proposed bill establishes a Commercial Property Assessed Clean Energy (PACE)
program within the Department of Finance to assist qualified commercial property owners
make energy improvements. The proposed legislation allows the COlmty
to
enter into an
agreement with a third party lender
and
collect loan repayments through the property
tax
bill.
2.
An
estimate of changes
in
County revenues and expenditures regardless of whether the
revenues or expenditures are assumed
in
the recommended or approved budget.
Includes source of information, assumptions, and methodologies used.
The legislation will not result in a net chailge
in
revenues or expenditures to the County. The
County intends
to
pass through all programmatic costs to program participants through fees
charged with the loans made by private underwriters under contract with
the
County.
PACE programs in other jurisdictions have both initial startup
costs
and ongoing program
operating costs. These costs
are
often funded by
a
surcharge on each loan. However, it
will
be necessary to carefully monitor these
costs
to ensure
that
the lending rates are competitive
and support broad participation in the program from commercial property owners.
Montgomery County has already incurred an estimated $100,000 in existing staff and
consultant costs for the start
up
ofthis program including preparing the Program Guidelines
and related legislation.
In
addition
to
PACE program implementation costs, the Department of Environmental,
Protection
(DEP)
estimates
a
public outreach and media campaign for the PACE program
would need
to
occur to both inform the public ofthe program and encourage participation.
DEP estimates the initial public outreach budget related to PACE at $25,000.
3. Revenue and expenditure estimates covering at least the next 6 fIscal years.
Please see
number 2.
4. An actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not Applicable.
5. Later actions that may affect future revenue and expenditures
if
the bill authorizes
future spending.
As
stated in #2 above, the County intends to pass through the program administration costs
to
program participants. However, it will be necessary to monitor and carefully manage these
costs
to ensure that the lending rates. are competitive and support broad participation in the
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program from commercial property owners. Depending on the success of the PACE
program, there may be a need for more outreach, sUPJ?Ort, and program resources.
6.
An
estimate of the staff time needed to implement the bill.
Assuming the County is successful
in
outsourcing both the lending
and
program
administration function
to
a third-party, the Department of Finance will absorb the new
Commercial PACE related responsibilities with existing staff.
7.
An
explanation of how the addition of new staff responsibilities would affect other
duties.
There
will be no significant impact to existing
staff
in
the Department of Finance or the
Department Environmental Protection
by
adding this responsibility to existing portfolios.
8.
An
~timate
of costs when an additional appropriation is needed.
See number 2 and 6 above.
9. A description of any variable that could affect revenue and cost estimates.
See number 2 and 6 above.
10. Ranges of revenue or expenditures that are uncertain or difficult to project.
See number 2 above. While some
data
are available on commercial PACE programs,
sufficient long-term trend
data
are currently unavailable to accurately estimate revenues and
expenditures ofa fully functioning commercial PACE
program.
Program implementation
expenditures should be re-examined regularly to ensure
the
program is fiscally and
economically viable.
11.
If
a bill is likely to have no fiscal impact, why that
is
the case.
Not Applicable.
12. Other
fiscal
impacts or comments.
Not Applicable.
13. The following contributed to and concurred with.this analysis:
Stan Edwards, Department ofEnvironmental Protection
Michelle Vigen, Department ofEnvironmental Protection
Robert Hagedoorn, Department of Finance
Eric Coffman, Department of General Services
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Alex Espinosa, Office of Management and Budget
Elyse Greenwald, Office of Management and Budget
Matt Schaeffer, Office of Management and Budget
Date"
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Economjc Impact Statement
Bill xx-14, Commercial Property Assessed Clean Energy Program - Established
Background:
, This legislation would establish a Commercial Property Assessed Clean Energy Program
(Program) to assist qualifying commercial property owners to make energy
improvements; allow private lenders that provide capital for a commercial loan provided
under a local clean energy loan program to have annual loan payments colleCted by the
County as a surcharge on a property tax bill; establish that the surcharge on a property tax
bill is treated as all other taxes and charges and
that
an unpaid surcharge shall
be,
until
paid,
a lien on the real property on which it
is
imposed; and generally amend the
environmental sustainability law.
1. The sources of information, assumptions, and methodologies used.
According to the Department of Environmental Protection, the level ofdata on the
types ofprojects and commercial property owners eligible for
this
Program, the
cost
ofthe project, and the reduction in energy costs achieved by the owners are very
limited and projectJsite specific. While there are over 4,200 commercial buildings
that encompass over 150 million square feet in the County, it is difficult without
available data on the demand for eligible projects and the amount oflending to
determine with any certainty the economic impact of Bill xx-14.
2. A description of any variable that could
affect
the economic impact estimates.
To estimate the economic impact with any degree ofcertainty, the analysis requires
the nUlilber ofpotential projects that will
be
constrained by the level oflending. At a
minimum, a project
that
has
been approved should achieve an economic benefit such
that the cost savings from a reduction
in
energy consumption will exceed the cost of
the proj ect. However without specificity on the
type
ofproject and the cost savings,
it is premature to determine the economic benefits ofthat project. Second, the total
economic benefit
to
the County is also dependent on the amount of available
financing
by
lenders.
3. The Bill's positive or negative effect,
if
any on employment, spending, saving,
investment, incomes, and property values in the County.
It
is
expected that a fully functioning Commercial PACE program will incentivize
increased construction activity and improve property values and may have additional
positive economic impacts on income, employment, and investment in the County.
However, as stated in item #2, the total economic effect will depend on the amount
offinancing available, the number of commercial owners and projects that are
eligible for the Program, the costs ofrenovating and retrofitting a property. the costs
of investing in an energy efficiency or renewable energy system and the operating
costs of such a system over the life ofthe system, the reduction of energy
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Economic Impact Statement
Bill xx-14, Commercial Property Assessed Clean Energy Program - Established
consumption and
savings
from that reduction, and the additional business
opportunities and increase
in
employment by companies that supply equipment and
.material and companies that install such equipment and material The level of detail
necessary to ascertain the positive economic effect is limited, and as such, the total
economic effect cannot
be
detennined with any degree ofcertainty.
4. H
a Bill is likely
to
have no economic impact, why is that the case?
Please see item #3
5. The following contributed to and concurred with this analysis: David Platt and
Rob Hagedoom, Finance;
h F/Beach, Director
artment
of Finance
Date
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