Property-Assessed Clean Energy (PACE) Programs
The Energy Efficiency Conservation Block Grant (EECBG) Solution Center offers the following introduction to Property-Assessed Clean Energy (PACE) Programs:
The Property-Assessed Clean Energy (PACE) model is a financing structure that enables local governments to raise money through the issuance of bonds or other sources of capital to fund energy efficiency and renewable energy projects. Land-secured financing districts (also known as "special tax" or "special assessment" districts) are a familiar tool in municipal finance. In a typical assessment district, a municipality issues bonds to fund projects with a public purpose such as streetlights, sewer systems or underground utility lines. The property owners that benefit from the improvement repay the bond through property assessments, which are secured by a property lien and paid as an addition to the property tax bill.