[Congressional Record Volume 155, Number 172 (Thursday, November 19, 2009)]
[Extensions of Remarks]
[Page E2836]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         PROPERTY ASSESSED CLEAN ENERGY (PACE) TAX BENEFITS ACT

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                         HON. JOHN P. SARBANES

                              of maryland

                    in the house of representatives

                      Thursday, November 19, 2009

  Mr. SARBANES. Madam Speaker, I rise today to introduce the Property 
Assessed Clean Energy, PACE, Tax Benefits Act. This legislation 
supports efforts by state and local governments to help homeowners and 
businesses install energy efficiency upgrades.
  PACE projects are an innovative way to finance energy efficiency 
investments like insulation and home sealing projects, energy efficient 
appliances or renewable energy generation systems. These programs 
provide homeowners or businesses the upfront capital to pay for the 
improvements and allow them to finance repayment through the property 
assessment taxes they pay to state or local government. Because PACE 
financing offers real savings immediately and in the long term, 
homeowners and business owners are much more likely to pursue energy 
efficiency improvements.
  The legislation I am introducing will make it easier for state and 
local governments to raise capital for PACE programs by making the 
interest earned on PACE-related bonds tax free. For example, under 
current law, when government bodies issue bonds for the construction of 
roads, schools, or other infrastructure, their investors receive tax 
free interest payments. The PACE Tax Benefits Act will ensure that 
energy efficiency projects are treated in the same manner--allowing 
state and local governments to raise adequate capital and providing the 
low cost financing to property owners that will make PACE programs more 
widespread.
  This is an innovative and cost-free mechanism to encourage energy 
efficiency. The potential for economic growth and energy savings is 
vast if we establish a framework that allows for them to expand more 
broadly. By doing so, we will create thousands of new jobs; save 
billions of dollars in energy costs for consumers; and make significant 
progress in our efforts to reduce greenhouse gas emissions.

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