Wayne County panel approves update to PACE terms to match state statute

The Wayne County Economic Development Committee on a voice vote approved Amendment 1 to revise the county—PACE (Property Assessed Clean Energy) program report to conform with recent changes in the state PACE statute and broaden eligible projects.

Hassan Shaikh, director of economic development, told the committee "on December 2013, the Wayne County Commission established a PACE program" and said the county has financed more than $100,000,000 in projects using PACE. "Today, the Department of Economic Development respectfully request[s] your consideration and approval to revise and update the Wayne County PACE program report," Shaikh said.

The amendment updates local terms and conditions to reflect state statutory amendments that the county said make the program more flexible and expand eligibility. Committee discussion and staff presentation described key features now reflected in the revised report: PACE loans can be repaid over terms of up to 25 years; eligible measures include insulation, roofing, windows and doors, HVAC systems, automated energy controls, lighting upgrades, energy recovery and daylighting systems, electric vehicle charging infrastructure, and related electrical upgrades; and the program covers projects from retrofits to new construction.

Shaikh said the revision also incorporates a statutory change making some environmental hazard mitigation projects eligible for PACE financing. He listed mitigation activities discussed by staff as including lead and heavy-metal remediation, mitigation of PFAS contamination in potable water systems and lead paint abatement, as well as projects to address effects of floods or drought. Mary, a representative of Lean and Green who operates the county's PACE administration, explained the application process: private property owners are screened for program eligibility, then connected to lenders, contractors and energy auditors to confirm PACE-eligible measures meet state requirements.

Committee members asked procedural and scope questions, including whether the county or individual property owners must apply for hazard-mitigation work; staff responded that PACE is a private-developer tool and that the financing is privately funded, not county dollars. The committee then moved and supported the item; the clerk recorded the voice vote as "Aye" and the item was forwarded to the full board.

The amendment keeps the remainder of the PACE program report in effect while updating provisions required by state law, staff said. Patricia Moore, the department—counsel identified in the record as lead on PACE reports, was noted as part of the presentation team.

The committee—discussion included an example of an earlier PACE-financed project, the Cambria Hotel downtown, cited by staff as an illustration of how private development has used the program. Staff emphasized that PACE financing does not use county general funds and that owners retain the option, for retrofits, to waive an energy-savings guarantee; for new construction, an energy-savings guarantee is not required under the revised terms. Staff also noted a new requirement to build above the Michigan energy code for some new-construction projects where applicable.

Next steps: the committee moved the amendment to the full Wayne County Commission for final action; staff said the updated PACE program report would implement the statutory changes at the local level.