State Policy Description

Washington - Residential Property Assessed Clean Energy

Description

Residential Property Assessed Clean Energy (R-PACE), like Commercial PACE, is a financing mechanism implemented by local governments that allows residential property owners to finance energy efficiency and renewable energy improvements. The repayment of qualified energy improvements is done via a voluntary property tax assessment collected by local governments, just as other public infrastructure investments are financed. The financing for PACE projects may be provided by municipal bonds or third party capital secured by the property assessment payments. Homeowners repay the loans via a line item on their property tax bill and repayment responsibility transfers to the next owner if the home is sold. States may need to pass authorizing legislation for local governments to issue such bonds by creating “taxing districts”. Similarly, states may pass legislation allowing for multiple districts issuing bonds to combine their participating tax base in one super district to drive down the costs of bond issuance and increase access to secondary bond markets. For more information, see the full policy brief.

For more information on the components of the policy see the full policy brief.

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More Information

Recent Legislation