Proposed Changes to the Property Assessed Clean Energy Act
Legislative Bill 625 proposes several changes to the Property Assessed Clean Energy Act (“PACE”). PACE allows municipalities to finance the installation of energy efficiency improvements and renewable energy systems following the adoption of ordinances creating clean energy assessment districts. PACE benefits the consumer and community by allowing energy efficiency improvements to “run with the land” instead of with the current homeowner’s personal financing.
The Legislature enabled PACE districts in 2016. Omaha and Lincoln are working on ordinances creating clean energy assessment districts.
Among other changes, LB 625 would allow cities to create PACE districts across one or more counties, extend PACE to agricultural property, and allow third-party lenders to collect PACE assessments directly from commercial property owners.
LB 625 is on General File. The Urban Affairs Committee prioritized the bill, so it is likely the full Legislature will debate it.
For additional information regarding LB 625, please contact David Levy or Garner Girthoffer.