One of the first tasks I was assigned to work on, when I joined CEP, was the Kansas Energy Efficiency Act (KEEA). The bill (HB 2649) would allow businesses to take advantage of an innovative energy efficiency financing mechanism called Property Assessed Clean Energy (PACE). By reducing one of the primary barriers to energy efficiency improvements, the large up-front costs associated with projects, PACE incentivizes commercial investment in clean energy. The KEEA is currently being debated in the House Insurance and Financial Institutions Committee at the Kansas State Legislature. I’d like to discuss some of the many benefits of PACE financing.
PACE is an attractive financing tool for businesses seeking to invest in clean energy and efficiency improvements. HB 2649 would allow cities and counties around the state to create energy districts with the power to issue loans to cover the cost of an energy project. The renewable energy or efficiency upgrade is installed immediately, and the business repays the cost through a property tax assessment over time. Through PACE, companies receive savings on their energy bills with long-term benefits to their pocketbook and the environment.
Additionally, a PACE loan is tied to the property itself, and continues to be paid off if the property is sold to a new owner. This minimizes risk for investors and encourages investments from companies in clean energy. Companies can take advantage of the significant economic benefits PACE projects provide. Research shows that efficiency improvements increase the value and occupancy rates of properties, and can attract customers interested in doing business with environmentally responsible companies. The Political Economy Research Institute also found that installing energy efficiency units in commercial buildings across the U.S. could add 114,000 jobs and save businesses $1.4 billion dollars annually. Such benefits cannot be overstated and reflect the crucial importance of supporting PACE in Kansas.
The Kansas Energy Efficiency Act would help our state keep pace with the other 32 states who have taken advantage of PACE financing. Kansas should be a leader in clean energy and energy efficiency development. If you have any questions about the bill, click here, or follow this link to learn about PACE financing. CEP will keep you posted regarding opportunities to support PACE legislation in Kansas.
Chris Carey is an intern with Climate and Energy Project. The non-profit organization is headquartered in Hutchinson.