C)
City of Cincinnati
178b
Roxanne Qua!is
Councilmernber
March 8, 2013
MOTION
WE MOVE that Cincinnati adopt a goal of reducing the consumption of energy in the built
environment by 15 percent by 2020, and having solar energy installed on 20 percent of rooftops
(residential and commercial) by 2028.
WE FURTHER MOVE that in order to achieve this goal, the administration assist in establishing a
solar rooftop program that enables bundling of residential and commercial properties to
facilitate power purchase and/or lease agreements for solar energy installations; and that the
city partner with Green Umbrella and the Greater Cincinnati Energy Alliance to develop the
program, and establish a solar working group of city staff and partners in this effort.
WE FURTHER MOVE that the administration establish a Property Assessed Clean Energy (PACE)
financing program for renewable energy and energy efficiency investments in Cincinnati.
WE FURTHER MOVE that the administration work with Green Umbrella, in cooperation with the
Greater Cincinnati Energy Alliance and the Port of Greater Cincinnati Development Authority, to
develop the program.
WE FURTHER MOVE that the administration draft the necessary ordinances and report back to
council within 60 days on plans for establishing a solar rooftop program and Cincinnati PACE
program.
City Hall
SOV INK
•
801 Plum Street • Suite 346A • Cincinnati, Ohio 45202
513.352.3604 • roxanne.qualis@cincinnati..oh.gov
*
Equal Opportunity Employer
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STATEMENT
Buildings in the United States account for 72 percent of electricity consumption, 39 percent of
energy use, and 38 percent of carbon dioxide emissions.
The Green Umbrella Energy Efficiency Action Team has adopted a goal of reducing the
consumption of energy in the built environment by 15 percent by 2020, and the 2008 Green
Cincinnati Plan set a goal of having solar energy installed on 20 percent of rooftops (residential
and commercial) by 2028.
PACE financing is a new tool that will help reach these goals.
Property Assessed Clean Energy (PACE) is an innovative way to finance energy
efficiency and renewable energy upgrades to buildings. Interested property
owners evaluate measures that achieve energy savings and receive 100%
financing, repaid as a property tax assessment for up to 20 years. The
assessment mechanism has been used nationwide for decades to access lowcost long-term capital to finance improvements to private property that meet a
public purpose. By eliminating upfront costs, providing low-cost long-term
financing and making it easy for building owners to transfer repayment
obligations to a new owner upon sole, PACE overcomes challenges that have
hindered adopted of energy efficiency and related projects in our nation’s
buildings.
PACE is a local government/community initiative that creates permanent private
sector jobs, strengthening our national and local economies. Buildings use
nearly half of the energy we consume in the United States. PACE programs help
make our nation more energy independent and secure while safeguarding our
environment by reducing demand for fossil fuels. The PACE financing
mechanism provides a strong credit that is attractive to private sector investors
and without government subsidies. PACE is voluntary. Property owners, acting
in their own self interest, implement building upgrades that can save them
money, increase the value of their property. PACE programs add value, and
have gained bi-partisan support nationwide atfedera state and local levels.
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PACEN0w.org
Major benefits of PACE are that it: saves consumers money on utility bills; is tax neutral, with no
exposure on the general fund; promotes local jobs; conserves fossil fuels; improves air quality;
and reduces C02 emissions.
Twenty-eight states and the District of Columbia have adopted PACE enabling legislation. Ohio
passed its law in 2009, and in 2012 the Toledo-Lucas County Port Authority issued the first PACE
bonds in Ohio for a project to upgrade the City of Toledo’s municipal buildings.
In Cincinnati, the Office of Environmental Quality, the Port of Greater Cincinnati Development
Authority, and the Greater Cincinnati Energy Alliance have been working with other
organizations through Green Umbrella to advance a PACE program to support renewable and
a
energy efficiency improvements. City Council must adopt enabling legislation for a program to
be established in Cincinnati.
Third party financing tools are proven models for overcoming financial barriers to solar. Solar
leases and power purchase agreements can offer residents new private-sector financing
options. Solar Phoenix 2, a partnership between the City of Phoenix, solar leasing company
Paramount Solar, utilities Arizona Public Service and Salt River Project, and the National Bank of
Arizona, is a successful example of implementing this approach. Solar Phoenix 2 will allow up to
1,000 homeowners to install solar, and includes options for low- and moderate- income
homeowners.