Mower County officials will need to make a choice: whether or not to continue with a program that helps finance clean energy improvement projects.

Robin Weis, PACE Administrator of the Rural MN Energy Board (RMEB), met with the Mower County Board on Tuesday morning to present information regarding the possible continuation of the PACE program.

“The county needs to determine what level, if any, they want PACE financing and services available in Mower County,” she said. “It is time to determine if RMEB PACE continues as a program and not a pilot program.”

Property assessed clean energy (PACE)—both for commercial and residential projects— is a mechanism for financing energy efficiency and renewable energy improvements on a private property and exists for both residential and commercial properties. This program allows the property owner to finance up-front expenses or other eligible improvements on a property, and then pay the money back over time through a voluntary assessment. The unique characteristic is that PACE assessments are attached to the property, rather than the individual, according to the U.S. Department of Energy.

All 18 counties in the RMEB—including Mower County— have had access to and some level of outreach with the PACE pilot program, and each county had potential projects where some chose to pay with their own resources and some used rebates to help supplement what they could afford, according to Weis.

PACE financing for clean energy projects are generally created on something called a “land-secured financing district” which refers to an assessment district, a local improvement district or something similar. Normally in a conventional assessment district, local government issues bonds to fund projects with a public purpose such as streetlights, sewer systems or utility lines.

The recent financing model allows a property owner to begin improvements without the large cash payment up-front and voluntarily choose to participate in a PACE program to repay their improvement costs over a set time period through property assessments. Nonpayment could result in the same consequences as the failure to pay any other part of a property tax bill.

Overall, PACE aims to increase energy efficiency, decrease energy demand and promote job growth in the clean energy sector.

However, REMB doesn’t believe that bonding is the “appropriate” method of funding, Weis shared with commissioners, which led to Tuesday morning’s presentation.

The 18 counties of the RMEB have to contribute funds to implement the PACE pilot program since outreach dollars were secured by grant. Administration, at this point, is currently being paid for by normal interest that’s being collected on loans. The three original funds to implement the PACE program were loans and RMEB is exploring ongoing sustainable revolving loan funds as one of the three options.

Each of the 18 counties had access to the same level of services, including energy audit connection, energy audit assistance, energy efficiency finance, CERTS Seed Grants, Good Food Access Fund and USDA Rural Energy for America Program (REAP) technical assistance, rebate assistance and more.

PACE became available in 2014 with the first financing closing in August 2014.

Officials could choose to continue with the funding program during a board session sometime this summer.

“It is the hope that all 18 counties include PACE as a part of their economic development toolbox,” Weis added.