Efficiency First

On July 20, 2011 the PACE Assessment Protection Act was introduced into the House, which is another attempt to revive the bill after it failed to get passed last year. The bipartisan legislation would enable local governments to offer PACE (Property Assessed Clean Energy) programs to finance home energy efficiency improvements. Homeowners pay the funds back through a special property tax assessment over time, giving municipalities the first lien on PACE homes if they are foreclosed.

Last year, the Federal Housing Finance Agency, which oversees the largest mortgage finance companies, effectively suspended PACE programs claiming they would have negative impacts on the mortgage industry.

If passed, federal housing regulators will generally not be able create policies that completely ban local property assessed clean energy programs. The legislation would boost job creation and improve the efficiency of America’s homes. High upfront costs often inhibit homeowners from making energy efficiency upgrades, but PACE programs would make long-term investment costs more manageable for private owners.

The House Financial Services Committee has reviewed the bill but no timeline for action has been announced. As members of the PACENow coalition, Efficiency First will keep members informed as we monitor the bill’s progress through Congress.