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EPAD Energy Efficiency Financing Signed Into Law in Kentucky

Last month, Energy Alliance team members Andy Holzhauser and Jeremy Faust were in Frankfort to attend a bill signing for the Energy Project Assessment District Act, or EPAD.

EPAD, also known as PACE nationally, is a unique economic development tool designed to allow commercial and industrial building owners to finance energy efficiency, water efficiency, and renewable energy improvements through a voluntary special assessment attached to the property.

Kentucky Governor Steve Beshear signed the bill into law noting the energy and water saving potential that EPADs offer Kentucky businesses.

The Energy Alliance is working with partners throughout Kentucky to develop this new tool. If you are interested in learning more, please call us at 513-621-4232 ext. 3.

 

Governor Steve Beshear signing into law the Energy Project Assessment District Act. From left to right: Representative Russ Meyer, bill proponent; Representative James Kay, EPAD bill sponsor; Jeremy Faust, Energy Alliance Strategic Business Development Director; Governor Steve Beshear (seated); Andy Holzhauser, Energy Alliance CEO; Richard Pickren, Harshaw Trane Vice President of Finance; Brooke Parker, Frost Brown Todd.

Pic_Post_EPAD-Signing

Pen presented to the Energy Alliance as one of the 15 used to sign the bill into law.

EPAD in Kentucky and GC-PACE

EPAD Commercial Energy Efficiency Financing Program Approved by Kentucky Legislature

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.

For more information on GC-PACE, go to gcpace.org. A short video on the PACE/EPAD model can be seen here.