FOR IMMEDIATE RELEASE: December 19, 2013
Fayetteville continues progress on implementation of local Property Assessed Clean Energy (PACE) program
Fayetteville, AR – After unanimously enacting an ordinance in October that will make Fayetteville the first community in Arkansas to take advantage of the newly established Property Assessed Clean Energy (PACE) financing program, the Fayetteville City Council this week approved the appointment of the District’s first Board of Directors, according to the Arkansas Advanced Energy Association (AAEA).
Appointed at Tuesday’s City Council meeting were Don Bennett, Stanley D. Green, Jim Halsell, Michael Phipps, Corey Runnells, and Julie Trivitt. During the first meeting of the board, scheduled for Monday, January 6th, 2014, members will draw straws for three 1 year terms and three 2 year terms. In addition, Mayor Lioneld Jordan has appointed City Council Member Sarah Marsh as his appointee to the board and Peter Nierengarten will serve as the City of Fayetteville staff representative. All board members are citizens of Fayetteville.
“PACE is a smart program for Fayetteville and I thank these dedicated citizens who have stepped forward to help guide the launch,” said Mayor Lioneld Jordan, who was among the program’s early supporters. “I believe that each of these board members is as committed as I am to opening this opportunity to our property owners to save energy costs and make their buildings more valuable with 100 percent financing for up to 20 years.”
Signed into law (Act 1074) by Governor Beebe in April 2013, the Arkansas local-option PACE program authorizes the voluntary creation of energy improvement districts to fund loans for 100% of the cost of energy savings projects by interested property owners. The loans are repaid via a special assessment on the owner’s property. Loan payments are generally less than the amount of energy savings achieved, so most business owners experience an increase in cash flow. Without access to low-cost financing opportunities, Arkansas property owners must typically bear the upfront costs of energy savings projects, an obstacle that has stymied many energy savings projects in Arkansas.
The Fayetteville PACE Board will assume responsibility for overseeing design and administration of the city’s PACE program and the ordinance stipulates that the City of Fayetteville will incur no debts or obligations as a result of agreements entered into by the PACE Board.
PACE addresses one of the largest barriers to energy savings retrofits – up front financing and short-term loans. AAEA, which continues to monitor and analyze PACE programs previously enacted in other states, fully supported the enactment of the legislation passed in the Arkansas General Assembly and sent the Fayetteville City Council a letter of support prior to their voting on the ordinance in October stating in part:
- Interest rates on PACE loans that account for 100 percent of the project cost are averaging between 4.75% and 7% across the country;
- Size of projects range from around $20,000 for a small business to millions of dollars for large properties like shopping centers or office complexes;
- Business owners are increasing their company’s cash flow enabling them to retain jobs and become more competitive in the marketplace;
- Existing mortgage lenders support projects that meet their clients’ objectives and increase value of their collateral;
- Energy service contractors are generating new sales as a result of PACE programs;
- Local governments like PACE because it creates jobs, generates economic activity with no added credit risk;
- Private market investors like PACE because assessment liens are a proven, strong credit.
To read a summary of the Property Assessed Clean Energy (PACE) legislation, click here: http://arkansasadvancedenergy.com/files/dmfile/PACESUMMARY.2.13.pdf
Arkansas Advanced Energy Association is a business group dedicated to growing Arkansas’s economy by expanding our energy workforce and manufacturing base through the increased development, manufacture, and utilization of advanced energy technologies. www.arkansasadvancedenergy.com
The Arkansas Advanced Energy Foundation is the educational affiliate of the AAEA. The Foundation promotes greater public understanding of advanced energy in Arkansas through research, public education programs and economic and workforce development. The Foundation is dedicated to informing the energy policy debate with well-researched, fact-based data on the advanced energy economy in Arkansas and by providing a public forum where state leaders can address Arkansas’s energy challenges for the future. www.arkansasadvancedenergyfoundation.org
Report Shows Global Economic Impacts of Advanced Energy
A report released in January 2013 by Advanced Energy Economy (AEE) shows that advanced energy was a $1.1 trillion global market in 2011, larger than pharmaceutical manufacturing worldwide. Read the full report here: http://arkansasadvancedenergyfoundation.org/files/dmfile/AEEIEconomicImpactofAdvancedEnergy-Final.pdf
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