Property Assessed Clean Energy (PACE) programs enable property owners to finance energy efficiency and renewable energy programs through a property tax assessment. Under the PACE model, the obligation to repay the cost of improvements attaches to the property, not the individual borrower, which can encourage projects with longer pay-back periods. Since 2008, 27 states and the District of Columbia have authorized PACE programs under state law. Although PACE historically focused primarily on residential properties, attention is now shifting to the industrial and commercial building market due to the actions of the Federal Housing Finance Agency and the Office of the Comptroller of the Currency in mid-2010 that froze most residential PACE programs. As of January 2011, there were four commercial PACE programs in operation representing 71 approved projects and $9.69 million in financing. At least nine more commercial PACE programs were in development during 2011 with funding commitments exceeding $1.5 billion. As new PACE programs are launched around the country, more significant project volumes are expected in 2012. Bloomberg BNA’s informative 90-minute presentation is designed to help you:
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Michael J. Zimmer, Martha Paschal, Charles McGinnis
Michael J. Zimmer is of counsel with Thompson Hine LLP in Washington, D.C. Mike practices in the firm, with a focus on energy regulation, climate change, and energy corporate acquisition and project finance transactions. He has been involved in mergers, acquisitions, construction, and project financing assignments in the power generation, renewables, natural gas and electric, cogeneration and independent power, emissions credits, rural cooperatives, energy and emissions trading, and manufacturing industries. Some of these transactions involve acquisitions, debt restructurings, or project financings for some of the largest undertakings in the United States involving these respective industries, with a composite value exceeding $14 billion. He is national co-chair for 2010-11 of the American Bar Association Carbon Trading and Energy Finance Committee, and ABA Vice Chair of the Committee on Renewable and Distributed Energy Resources (which he co-chaired in 2008-10). In 35 years of legal service, Mike has worked with domestic and international companies, gas and electric utilities and their unregulated subsidiaries, advanced energy technology and industrial companies, energy project developers, construction companies, trade associations, financial institutions and energy technology funds, universities, and embassies in more than 35 states and 20 foreign countries. Prior to joining Thompson Hine, Mike was a partner with an international law firm in Washington, D.C., and also has practiced as a partner with a major Wall Street firm. Earlier in his career, he was employed at the American Gas Association as Vice President and Assistant General Counsel, representing the natural gas transmission and distribution industries on federal legislative, tax, and regulatory matters related to gas production, LNG, gas pricing, interstate pipeline development, and curtailments. He has served the Cogeneration and Independent Power Coalition, the Clean Coal Coalition, the Natural Gas Vehicles Coalition, the American Council on Renewable Energy, the Industrial Energy Consumers of America, the Ohio Fuel Cell Coalition, the Ohio Manufacturers' Association, and the Aluminum Association on a wide range of energy, climate change, capital formation, and advanced energy technology issues. He has also provided counsel to the USGBC, ASTM, the Capital Markets Partnership, the Green Standard, and the Biomass Coordinating Council on renewables, finance, and carbon management issues.
Martha Paschal is the managing director of Malachite LLC, a green real estate advisory company. Martha has over 20 years of experience in securing financing for commercial and residential real estate throughout the United States. She has structured, participated in, or managed $73 billion in equity and debt financings. Successful transactions for which Martha has obtained financing include the development and redevelopment of office, multi-family, affordable housing, retail, warehouse, and mixed-use properties, as well as the acquisition and development of raw land. She is an expert in the financing, refinancing, and securitization of commercial real estate. Her previous capital markets employment has included management positions with national and community banking institutions, Fannie Mae, and a leading investor in commercial real estate securitizations. Martha also offers extensive experience in public finance, including tax-exempt bond programs, the structuring of tax credit investments, and the use of federal, state, and local grants for development, renovation, and other real estate-related uses. She is an authority in the financing of complex transactions, including mixed-use and mixed-income commercial and residential projects, and offers access to a broad network of real estate financing sources. Martha is a leader in the financing of sustainable and energy-efficient real estate projects. Her recent successes include securing equity and debt financing for a $55 million multi-family project certified under the LEED (Leadership in Energy and Environmental Design) program of the U.S. Green Building Council, and the energy retrofit of an affordable housing portfolio. She also has been a key organizer for a local program planning initiative to obtain funds under the U.S. federal stimulus program. Martha is a frequent speaker on the U.S. government’s economic stimulus initiatives, the financing of mixed-use and mixed income real estate, and socially responsible real estate investments. A graduate of Mississippi State University, Martha serves on the steering committee of the Northern Virginia Affordable Housing Alliance and on the board of RPJ Housing Development Corporation. She also is a member of Commercial Real Estate Women and Women in Housing and Finance.
Charles McGinnis leads a national, cross-functional program and field office for the Building Efficiency Division of Johnson Controls Inc. In this role, he oversees the development and administration of projects funded through the American Recovery and Reinvestment Act to deliver accountability, transparency, and results for Johnson Controls Inc. Charles was recently the primary author of the amended Wisconsin Commercial PACE legislation and Michigan Commercial PACE legislation that were signed into law in 2010. In addition to his role, managing the ARRA business, he is currently directing PACE lobbying activities and market development for Johnson Controls in the United States. In his previous role as Regional Solutions Manager for the Building Efficiency Division, Solutions Group of Johnson Controls Inc., Charles had general management responsibility for the Energy Services and Solutions Business in the Midwest. He managed vertical market teams, strategic account management and project development engineering. He also supervised in staff capacity, operations, and measurement and verification services. From 2003-2006, as National Director-State Government, his team was selected for many of the largest energy efficiency and renewable energy projects in Johnson Controls history. Notable projects were the Commonwealth of Pennsylvania, State of Missouri, State of Indiana, State of Texas, Commonwealth of Virginia, State of California, Commonwealth of Kentucky, State of Tennessee, State of Ohio, State of West Virginia, State of Minnesota, and State of Michigan. This business produced over $200 million dollars in sales over a three-year time period. In 2003, Charles was appointed to Governor Doyle’s Energy Task Force in Wisconsin and formerly served on the Midwestern Governors Energy Efficiency Task Force. In 2009, Charles he was appointed to the National Governors Association Policy Academy for Energy Efficiency. In 2010, Charles joined the Board of Directors of Clean Wisconsin, the state’s largest environmental lobbying group. Charles has an Executive Masters Degree in Business Administration from the University of Wisconsin, Madison and he earned his Bachelors of Science degree, School of Industrial Technology, from the University of Wisconsin-Stout. He also has an Associate of Science Degree from Madison Area Technical College.