Energy Project Assessment Districts (EPAD), also known as “PACE” Financing
The Energy Project Assessment District Act of 2015 (the “EPAD Act” or HB100), was signed into law by Kentucky’s Governor, Steve Beshear in April 2015.
The act provides a new, innovative, proven way for commercial property owners to pay for:
- Energy Efficiency Upgrades
- On-site Renewable Energy Projects
- Water Conservation Measures
EPAD funding is arranged for 100% of a project’s costs, and is repaid by participating property owners with a voluntary assessment on the property tax bill over a term of up to 20 years. This type of program – known elsewhere as Property Assessed Clean Energy (“PACE”) is available in 31 states.
During the 2015 Legislative Session, the General Assembly passed HB100, a bill strongly supported by KCC, which allowed the creation of Energy Project Assessment Districts (EPAD). These districts can promote the efficient use of energy and water resources.
Progress to Date:
- Boone County: Became a full EPAD county as of April 2019. See story here.
- Campbell County: Approved legislation in March, 2018 to allow cities and counties to create EPADs. See story HERE. With passage of the Campbell County ordinance, developers who are rehabbing two commercial buildings in the Ft. Thomas’ Midway business district plan to use PACE financing for energy upgrades to these buildings.
- Frankfort: Adopted their EPAD ordinance in November, 2016. Link HERE.
- Lexington-Fayette County: EPAD approved in April, 2018. See article HERE.
- Covington was considered the first city to implement EPAD and announced several projects using EPAD financing, such as the $40M in projects n the Mainstrasse Village, story HERE.
- Bowling Green passed a resolution to form their Energy Project Assessment District. Text of resolution HERE. Since that first resolution in Bowling Green, Kentucky has added Bellevue, Greensburg, Greensville, Owensboro and Louisville to the list of districts working on EPAD.
- Owensboro also passed their resolution in December 2015. Language can be found HERE.
- Louisville passed its resolution in April 2016. Text of that resolution HERE.
- Newport adopted their EPAD ordinance in 2016. See story HERE.
- Bellevue, Kentucky also adopted EPAD in October, 2015. Article HERE.
EPAD provides a voluntary financing tool for helping property owners make energy efficiency improvements. Below are graphics provided by the EPAD Council, to illustrate how these districts work:
More downloadable information:
- Financing Energy Projects to Create Jobs and Save Small Business Money
- Energy Project Assessment District FAQ’s
- EPAD Diagram and Flowchart
- Energize Kentucky Information Flyer on EPAD financing
Like to know where is EPAD districts are being enacted or proposed? Click HERE!
- Former Lexington Councilmember named director of PACE financing for Energize Kentucky, June 2018. Story HERE.
- Lexington Fayette County adopts EPAD, April 2018, Lane Report article HERE.
- Frankfort passes EPAD ordinance. Language of the resolution HERE.
- “Program Would Boost Energy Efficiency Options,” Louisville Courier-Journal on Louisville adoption of EPAD, April 11, 2016
- “FAQ: Energy Efficiency Financing Plan,” Louisville Courier-Journal on EPAD, April 12, 2016
- “New Energy Financing May Be Coming to Louisville,” Energy Manager Today, April 12, 2016
- “Building Improvements Could Benefit from New Program,” Bowling Green Daily News, April 25, 2015
- “New Financing Program Offers Energy-Efficient Options,” The Lane Report, March 31, 2015
- Article by Jonathan Miller on passage of EPAD, March 24, 2015 HERE.
- Kentucky Department for Energy Development and Independence (DEDI) handbook on EPAD
- Energize Kentucky
- Cincinnati EPAD, Greater Cincinnati Energy Alliance
- Pace Nation
- EPAD with Harshaw Trane