Thirty House Democrats signed on to a new bill on Thursday that would save Property Assessed Clean Energy (PACE) programs, which have been under attack from mortgage giants Fannie Mae and Freddie Mac. PACE is a finance tool that helps homeowners afford energy-efficiency retrofits and renewable-energy installations.
The PACE Assessment Protection Act of 2010 would force the government-sponsored corporations to adopt standards that support PACE, based on Department of Energy guidelines.
Yet the bill’s author, Rep. Mike Thompson of northern California, hopes the legislation persuades Fannie and Freddie to accept a compromise before it’s signed into law.
The finance tool certainly has a lot of friends. It’s been backed by $150 million in Department of Energy stimulus funding, the vice president’s Middle Class Task Force, 23 state legislatures, governors such as Arnold Schwarzenegger [PDF], and mayors such as Michael Bloomberg [PDF]. California Attorney General Jerry Brown sued Fannie and Freddie yesterday to defend the PACE programs, the largest of which are in California.
PACE programs let home and business owners pay for rooftop solar arrays, high-efficiency furnaces, insulation, and other improvements through a surcharge on their property tax bills, removing high up-front costs. Fannie and Freddie dislike that those tax assessments have senior lien standing to mortgages, even though analyses and pilot programs have found that energy efficiency and PACE programs can make borrowers more financially secure.
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