Local Option – Property-Assessed Clean Energy Financing

Program Overview

Implementing Sector State
Category Financial Incentive
State Nebraska
Incentive Type PACE Financing
Eligible Renewable/Other Technologies Solar - Passive, Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Wind (All), Biomass, Geothermal Heat Pumps, Combined Heat & Power, Landfill Gas, Daylighting, Solar Pool Heating, Wind (Small), Geothermal Direct-Use, Anaerobic Digestion, Fuel Cells using Renewable Fuels, Other Distributed Generation Technologies Water conservation and pollution control facilities.
Eligible Efficiency Technologies Lighting, Lighting Controls/Sensors, Heat pumps, Air conditioners, Heat recovery, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Yes; specific technologies not identified, Insulation, Reflective Roofs, LED Lighting
Applicable Sectors Commercial, Industrial, Local Government, Residential, Federal Government, Multifamily Residential
Terms PACE bonds are capped at $5 million unless approved by referendum.

Summary

In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activities subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA’s concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation.org for more information about PACE financing and a comprehensive list of all PACE programs across the country.

The Property Assessed Clean Energy Act was signed on April 13, 2016. This law allows municipalities to create clean energy assessment districts. Municipalities that create such districts may enter into contracts with qualifying property owners and (if participating) third-party financiers to provide financing for energy efficiency and renewable energy projects on the qualifying property. The projects are paid back through assessments on the owner’s property taxes.

Check with your local Nebraska Municipality to see if PACE financing is available.

Authorities

Name L.B. 1012

Contact

Nebraska Energy Office
Organization:
Nebraska Energy Office
Address:
521 S 14th Street
Lincoln, NE 68508
Phone:
(402) 471-2867
E-Mail:
energy@nebraska.gov