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This session, in order to help property owners take advantage of clean-energy incentives, I introduced to establish a loan program that’s based on a property’s tax-assessment value. PACE (Property Assessed Clean Energy Program) would benefit those who may have lower incomes, such as retirees, but high home equities. The bill sailed through the Energy & Environmental Protection Committee but was turned off in the Economic Development & Business Committee.

Wonderful incentives to promote clean energy such as the Federal Solar Investment Credit and a State Photovoltaic Tax Credit are currently available for Hawaii homeowners. Unfortunately, it hasn’t been easy for residential- and commercial-property owners to qualify for loans covering the cost of renewable energy systems.

PACE would have further reduced electricity costs; incorporated renewable energy; supported technology to incorporate green energy into the grid; and better the process for consumers using photovoltaic systems.

Renewable energy comes in many forms and through various systems, and some examples of projects that qualify for PACE loans include air sealing and ventilation, insulation, reflective roofs, skylights, solar PV systems and wind systems.

PACE paves the way for loans with no cash down, nearly instant savings through tax credits and the opportunity for all Hawaii home and property owners to save money in the future by investing in energy upgrades now. It would also put Hawaii in the company of the majority of states that have already adopted this loan program.

Not only would this give Hawaii property owners easier access to loans and help our overall environment, it would help our state reach its clean-energy target of generating all of its electricity through renewable-energy sources by 2045.

In 2010, a bill proposed similar measures. It failed when the Federal Housing Finance Agency voiced concerns about whether the mortgage or the PACE lien would take priority for repayment, especially if a loan was in default. The solutions came when President Obama made clean-energy announcements in 2015 and federal guidelines were established.

Under those federal guidelines and at the direction of the Department of Business, Economic Development and Tourism, the lender would pay the loan amount to the business hired to complete the clean-energy project. The loan itself would be repaid through revenues generated by a special assessment on the borrowers’ real-property tax bills.

Not only would this give Hawaii property owners easier access to loans and help our overall environment, it would help our state reach its clean-energy target of generating all of its electricity through renewable-energy sources by 2045.

This solution breaks down the barriers that are keeping Hawaii’s property owners from saving money, saving the environment and creating a better planet for generations. By doing this and paving the way for more people to participate in clean-energy initiatives, we would create more jobs in the energy field and further help our islands’ economy.

This program would not only benefit a population that does not qualify for other government loan programs such as Green Energy Market Securitization, it is also an important step in reaching Hawaii’s sustainable future.

Currently HB1524 is being held in the House Committee of Economic Development and Business (EDB) after passing through Energy and Environmental Protection. Unless the EDB chair waves off on the bill so it can move to the Finance Committee, the legislation is dead for this session.

Good programs sometimes take a few years to get through the Legislative process.  I will not give up, especially since PACE would give so many of us access to clean, affordable energy. Your support for this program is much appreciated and needed.