|Incentive Type:||PACE Financing|
|Eligible Efficiency Technologies:||Lighting, Lighting Controls/Sensors, Heat pumps, Central Air conditioners, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Building Insulation, Windows, Doors, Roofs, Custom/Others pending approval, Solar Water Heat, Solar Thermal Electric, Photovoltaics, Wind, Biomass, Geothermal Electric, Daylighting, Other Distributed Generation Technologies|
|Terms:||Re-payment term may not exceed 20 years|
Note: The Federal Housing Financing Agency (FHFA) issued a statement in July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local PACE programs have been suspended until further clarification is provided.
Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Louisiana has authorized certain local governments to establish such programs, as described below. (Not all local governments in Louisiana offer PACE financing; contact your local government to find out if it has established a PACE financing program.)
In July 2009, Louisiana legislators enacted SB 224 that enabled local governments to create a Sustainable Energy Financing District (SEFD) via ordinance or resolution. Once established, the owner of any immovable residential or commercial property may consent to include a property in the SEFD and execute a "cooperative endeavor agreement" with the district to receive financing for energy improvements. An owner's consent may be given before or after the initial creation of the district, and the district does not have to be contiguous.
In 2010, Louisiana legislators enacted HB 973 that provided financing qualifications and restrictions for energy efficiency improvement or renewable energy improvement loans. These include:
A SEFD may borrow money, issue bonds or obligations, and pay for the bonds from assessments against property. Loan terms will be decided by the governing body of the district, including interest rates, administrative fees, and maximum loan amounts. The district is permitted to provide a source of revenue for retrofitting and installing improvements, products, systems, devices, or interacting groups of devices installed behind the meter of residential and commercial buildings that conserve energy or produce energy from renewable resources. Eligible technologies are determined locally, but may include:
Renewable-energy improvements that interfere with a right held by a public utility regulated by the Louisiana Public Service Commission are not eligible.
New Orleans plans to create a Sustainable Energy Financing District with the help of a "special projects" grant from the U.S. Department of Energy SunShot Initiative.