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Board approves special-tax district to launch Green Financing (PACE-style) program
Summary
The board approved formation of a special tax district and related resolutions to establish the San Francisco Sustainable Financing Program (a PACE-style green financing program) to fund energy and water efficiency and renewable installations on privately owned buildings.
The San Francisco Board of Supervisors voted to approve resolutions establishing the formation and necessity for bonded indebtedness for a special tax district to launch the San Francisco Sustainable Financing Program, commonly called a Green Financing or PACE-style program.
Sponsors and city staff said the program will provide a way to link private capital with public administration to finance energy efficiency and renewable-energy upgrades to privately owned buildings. Supervisor (remarks) described the program as key to meeting the city's climate goals and creating green-retrofit jobs. Rich Chen of the Department of the Environment, the program administrator, told the board the team is close to launching and that a selected contractor and bond counsel are in place.
Public testimony included developers, contractors and industry trade groups that said the program could accelerate retrofits and spur local job growth. Speakers included representatives from local home-performance firms, trade groups and nonprofit clean-energy advocates who urged attention to energy-efficiency prioritization along with renewables, workforce training and consumer protections.
The board approved both the resolution determining necessity to incur bonded indebtedness and the resolution of formation establishing the special tax district (items numbered 19 and 20 on the agenda). The vote was unanimous.
Key details from staff and supporters presented at the hearing: - The board's resolutions will enable formation of Special Tax District 2009-1 and the enabling financing up to $150,000,000 to support the San Francisco Sustainable Financing Program. - Program administration has been assigned to the Department of the Environment; the Public Utilities Commission and the mayor's office assisted development. - The program will prioritize energy-efficiency measures ahead of renewable installations, require performance-based standards and include workforce-development linkages. - City staff identified Renewable Funding (the selected contractor) and bond counsel as participants in setting up the program.
Why it matters: Local PACE-style financing can help property owners cover the upfront cost of energy and water upgrades and repay through a property-secured assessment collected with property tax payments. Advocates said the program will stimulate local green jobs and help meet municipal climate goals; critics in other jurisdictions have raised consumer-protection and underwriting concerns that the city will need to address in program rules.
Votes and next steps: The board adopted the resolutions forming the district and approving the necessity to incur bonded indebtedness by roll call (10-0). Staff said final program documents, underwriting criteria and consumer-protection rules will return to the board or the appropriate committee before the program opens to property owners.
