12-R193

2012 -- S 2833

Enacted 04/11/12

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

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

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

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

to urgent concerns about climate change; and

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

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

and

     WHEREAS, Improving energy efficiency in buildings and appliances could achieve

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

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

efficiency measures; and

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

need to import energy from foreign sources; and

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

efficiency potential; and

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

needed to implement energy efficiency measures; and

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

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

owners to make energy efficiency improvements; and

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

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

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

are less than expected utility bill savings; and

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

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

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

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

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

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

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

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

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

loans; and

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

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

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

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

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

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

Act; and be it further

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

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

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

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

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

=======

LC02302

=======