2012 -- S 2833

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LC02302

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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S E N A T E R E S O L U T I O N

RESPECTFULLY URGING THE RHODE ISLAND CONGRESSIONAL DELEGATION TO

ADOPT ENABLING LEGISLATION AUTHORIZING THE IMPLEMENTATION OF

PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAMS

     Introduced By: Senator V. Susan Sosnowski

     Date Introduced: March 28, 2012

     Referred To: Senate Environment & Agriculture

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     WHEREAS, According to the American Clean Energy Security Act of 2009,

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policymakers at the federal level are currently considering proposals designed to achieve

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substantial reductions in greenhouse gas (GHG) emissions over the next four decades in response

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to urgent concerns about climate change; and

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     WHEREAS, One of the most cost effective means of achieving necessary GHG emission

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reductions to meet climate change objectives is through investing in energy efficiency measures;

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and

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     WHEREAS, Improving energy efficiency in buildings and appliances could achieve

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significant reductions of greenhouse gas emissions, resulting in a projected decrease in annual

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energy consumption in this country of up to twenty-three percent (23%) through various energy

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efficiency measures; and

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     WHEREAS, Investing in energy efficiency promotes energy security by reducing the

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need to import energy from foreign sources; and

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     WHEREAS, The residential sector accounts for about thirty-five percent (35%) of energy

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efficiency potential; and

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     WHEREAS, A significant barrier to capturing this potential is the initial capital costs

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needed to implement energy efficiency measures; and

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     WHEREAS, Property Assessed Clean Energy (PACE) financing programs authorize

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municipalities to issue bonds to provide a potential source of up front financing for property

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owners to make energy efficiency improvements; and

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     WHEREAS, PACE programs provide a mechanism allowing property owners to repay

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loans for financing energy efficient measures through an annual assessment of their property tax

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bills over a repayment period of up to twenty (20) years, with expected monthly payments that

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are less than expected utility bill savings; and

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     WHEREAS, Analysts have predicted that there could be as much as $1 trillion worth of

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energy improvements to be performed nationwide, which could lead to vast job creation and

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economic stimulus, both of which are critical to the economic recovery; and

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     WHEREAS, The Federal Housing Finance Agency which was created in 2008 to oversee

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the Federal National Mortgage Association (generally referred to as “Fannie Mae”), the Federal

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Home Loan Mortgage Corporation (generally referred to as “Freddie Mac”), and the Federal

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Home Loan Banks, prohibited holders of mortgages through these two entities from participating

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in PACE programs, which effectively prevented residential property owners from obtaining

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PACE financing over concerns that a PACE tax assessment establishes a lien senior to mortgage

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loans; and

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     WHEREAS, Both the United States House of Representatives and the United States

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Senate have proposed legislation, the PACE Assessment Protection Act, to restore the PACE

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financing program by ensuring that underwriting standards of Fannie Mae and Freddie Mac

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facilitate the use of PACE financing; now, therefore be it

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     RESOLVED, That this Senate of the State of Rhode Island and Providence Plantations

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respectfully requests that the Congress of the United States pass the PACE Assessment Protection

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Act; and be it further

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     RESOLVED, That the Secretary of State be and he hereby is authorized and directed to

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transmit duly certified copies of this memorial to the Majority Leader of the United States Senate,

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to the Speaker of the United States House of Representatives, and to the Rhode Island’s

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Congressional Delegation, the Honorable Jack Reed, the Honorable Sheldon Whitehouse, the

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Honorable James R. Langevin, and the Honorable David N. Cicilline.

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LC02302

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