County Considering P.A.C.E Program

At Monday's fiscal court meeting, McCracken County Commissioners heard a presentation about the PACE program.  PACE is property assessed clean energy.

Chris Jones with Energize Kentucky gave the presentation. Energize Kentucky is a third party administrator that helps local governments and property owners to help achieve energy efficiency.  According to Jones, the PACE program is designed to help achieve that goal.

In the Pace Program, a private commercial Property owner can get a longer term loan for energy efficient projects. The loan is paid back by adding the loan payment to the property tax bill. "What happens is that the private capital sector is able to come in and provide loans to property owners at longer terms than what is usual because the repayment is being added to the property tax bill." Jones explained.

In Kentucky, legislation has been passed for the PACE program. It is known as the Energy Project Assessment Districts or EPAD act.  The state statute says  the owner of the property must request this special loan, and because the county or city government is responsible for the collection of property taxes a resolution is needed to add the tax.

According to Jones, there is minimal cost to the county. In McCracken County, the sheriff is responsible for the collection of property taxes. Jones said,  "He [the sheriff] can charge what is actual cost is to collect that fee."  The property owner would pay that fee. It would be attached to the property tax bill along with the repayment.

Judge Executive Bob Leeper said  that he and the commissioners learned quite a bit about the program, but  would like to research and know more before any action is taken. "We want to know some more about it but it was a very interesting discussion. And we appreciate them bringing forward. 

Leeper also explained that the resolution is needed to allow the repayment of the loan to be added to the tax bill.

Kentucky Passed its EPAD act in 2015. The PACE Program is EPAD in Kentucky.