Among the legislative achievements of last night’s legislative session in Frankfort was Senate and House approval of HB100, a bill to authorize PACE, also called EPAD (Energy Project Assessment Districts) in Kentucky.
Residents of Greater Cincinnati may be familiar with the work done by the Greater Cincinnati Energy Alliance in bringing PACE to Southwest Ohio—the first PACE district was set up in the City of Cincinnati last year. GC-PACE offers commercial property owners (businesses, nonprofits, governments, etc.) the opportunity to finance energy efficiency and renewable energy improvements through energy savings. The model offers a unique extended-term financing solution to support businesses in making critical energy-related improvements to their buildings.
After a nearly two-year legislative effort, led by the Energy Alliance and the Kentucky EPAD Council (including representatives from Harshaw Trane, Ross Sinclair & Associates, and the law firm Frost Brown Todd), the Kentucky legislature has authorized PACE as a new tool for local governments throughout Kentucky. The legislation was championed by Representative James Kay of Woodford Co.
A Well-Supported Bill
The bill received strong support from both parties and was endorsed by the Northern Kentucky Chamber of Commerce, the Kentucky League of Cities, the Kentucky Association of Counties, the Kentucky Manufacturers Association, the Kentucky Association of Building Contractors, the Kentucky AIA Chapter, Greater Louisville Inc., and the cities of Covington and Florence, among others.
To underscore this accomplishment, though hundreds of bills are introduced in the legislature each year, only a small handful are adopted. Those were the odds we were working with going in to this effort, and we have come out with a victory on a topic that had overwhelming support from democrats and republicans in both the Kentucky House and Senate.
The Energy Alliance expects the bill to be signed by the Governor in the coming weeks. After that, the Energy Alliance will continue our work to bring this innovative financing tool to building owners throughout the state.