Ann Arbor City Council unanimously supported the intent to establish a Property Assessed Clean Energy Program (PACE) at Monday night’s session. The proposed PACE program would provide special assessments for energy projects on commercial properties.

The next step in the process is to hold a public hearing on Monday, Oct. 3 at 7 p.m., City Council Chambers, 2nd floor, Guy Larcom Municipal Building, 301 E. Huron St.

A report on Ann Arbor’s proposed PACE Program is available for review by the public at the front counter of the Clerk’s Office on the second floor of Larcom City Hall, 301 E. Huron, and online at www.a2energy.org.

The establishment of a PACE program would allow the city to raise capital to use for energy efficiency and renewable energy projects on commercial properties located within Ann Arbor City limits. The availability of PACE funding would support economic stimulation, create jobs and reduce operating costs for business owners.

The properties repay the city through the use of the voluntary special assessment. This approach provides more attractive financing to property owners by offering fixed interest rates and a longer re-payment period than offered through traditional financing.

Commercial properties — defined as any property that is not a single family home, duplex or certain townhouses — may apply for energy projects such as heating and air conditioning equipment, lighting, system controls, insulation and weather sealing, cool roofs, windows and doors, geothermal systems, energy star appliances and solar photovoltaic systems. Projects may range in size from $10,000 to $350,000.

Ann Arbor would offer PACE funds in phases with the first cycle expected to raise approximately $4 million. The city would issue revenue bonds to be used for installation of energy projects, and repaid to the city.

The bond would be secured by a loan loss reserve supported by a federal grant and liens on the assessed commercial properties. Dependent upon demand, the city would be permitted to raise additional funding not to exceed $10 million in any year, if desired and approved by Council.

Local governments have used special assessments for public purposes such as footing drain disconnections, septic tank replacements and new sidewalk construction for almost 300 years. Benjamin Franklin created the first special assessment district in 1736 to provide fire-fighting services.

Michigan authorized local governments to create PACE programs in 2010 by the passage of Public Act 270 of 2010. To date, 27 states have enabled local governments to establish PACE programs.

Ann Arbor supported the development and passage of PACE in the state of Michigan and estimates that PACE could keep $26 million circulating in the economy each year and save up to the equivalent of 39 Barton Dams-worth of electricity each year when aggressively implemented.

For more information on the PACE program and other city of Ann Arbor energy initiatives, please visit www.a2energy.org. Ann Arbor’s PACE program is joint program with the City of Ann Arbor and the Clean Energy Coalition.

Nancy Stone is the Communications Liaison for Public Services at the City of Ann Arbor. She can be reached at nstone@a2gov.org. Visit http://www.a2gov.orgfor more information on local environmental topics including recycling, composting, water conservation, and choices for green living.

Your World provides local environmental information to our community. Contributing partners include: Washtenaw County’s Environmental Health Division; the nonprofit Recycle Ann Arbor; the City of Ann Arbor’s Public Services Area, Natural Area Preservation, Systems Planning programs for Energy, Environmental Coordination, Solid Waste, Transportation, and Water Resources.