To: Sonoma County Board of Supervisors
Department or Agency Name(s): General Services
Staff Name and Phone Number: Caroline Judy, 707-565-8058
Vote Requirement: Majority
Supervisorial District(s): 1st
Title:
Title
Authorization for Third-Party PACE Financing Project in Unincorporated Sonoma County
End
Recommended Action:
Recommended action
Adopt a resolution consenting to the inclusion of a single property within the County’s unincorporated area in the California Municipal Finance Authority Open PACE Program to finance renewable energy generation improvements.
end
Executive Summary:
The County’s Energy and Sustainability Division (the “Division”) of General Services has been contacted by California Municipal Finance Authority (CMFA), a joint powers authority of which the County is a member, with a request to allow one of its third-party, for profit commercial Property Assessed Clean Energy (PACE) administrators, BlueFlame PACE Services, LLC (“BlueFlame”), to finance renewable energy generation improvements at a new climate controlled storage facility owned by Vineburg Wine and Self Storage, LLC located at 1010 Napa Road, Sonoma. Because the County has not authorized CMFA’s OpenPACE Program to date, Board authorization is required in order for BlueFlame to provide PACE financing for theimprovements. The Board’s authorization will be limited to the improvements at 1010 Napa Road. CMFA and BlueFlame will coordinate with the Tax Collector’s Office for the inclusion of the tax levy and repayment for the subject property’s tax bill.
Discussion:
In 2014, your Board established the Sonoma County PACE Financing Marketplace (Marketplace), authorizing two joint powers authorities and their third-party property assessed clean energy (PACE) providers to operate in the unincorporated areas of the County. In 2015 and 2016, your Board authorized two additional joint powers authorities and their third party PACE providers to enter the Marketplace. Board action is required to authorize each new marketplace entrant. These providers offer a mix of residential and commercial PACE products. Since May 2016, no new PACE providers have been added to the Marketplace, nor have any new PACE providers been authorized to finance projects in the unincorporated territory of the County.
On July 30, 2019, the Division was contacted by California Municipal Finance Authority (CMFA) with a request to allow one of their Commercial PACE administrators, BlueFlame PACE Services, LLC (BlueFlame) to finance renewable energy generation improvements at a new climate controlled storage facility owned by Vineburg Wine and Self Storage, LLC, located at 1010 Napa Road, Sonoma. In order for BlueFlame to provide PACE financing for the improvements, Board consent is required because the County has not authorized CMFA’s OpenPACE Program in unincorporated areas of the County. The County has been a member of the California Municipal Finance Authority joint powers authority since 2004. This authorization is limited to the 1010 Napa Road improvements and any future financings contemplated by CMFA’s PACE administrators would require further Board consent. CMFA shares 50% of all issuance fees received for PACE bonds with the local nonprofits and with the municipality where the project is located. Twenty-five percent (25%) is given to the County’s general fund, and twenty-five percent (25%) is given to a local nonprofit chosen by CMFA.
There are many PACE administrators operating throughout the state. Below is a table showing the PACE programs operating in Sonoma County and additional programs operating outside of the County.
|
Authorized JPA |
3rd Party PACE Administrator |
PACE Program |
Commercial |
Residential |
When Authorized in the County |
|
Sonoma County Public Financing Authority |
None; operated by the County |
Sonoma County Energy Independence Program |
x |
x |
03/24/09 |
|
California Statewide Development Communities Authority (CSCDA) |
Renew Financial |
CaliforniaFIRST |
x |
x |
10/21/14 |
|
Rural County Representatives of California and Golden State Finance Authority (RCRC/ GSFA) |
Ygrene |
Ygrene |
x |
x |
05/24/16 |
|
Western Riverside Council of Governments (WRCOG) |
Renovate America |
HERO |
|
x |
10/21/14 |
|
California Enterprise Development Authority (CEDA) |
Dividend (formerly Figtree Financing) |
Dividend (formerly Figtree Financing) |
x |
|
03/17/15 |
|
|
|
|
|
|
|
|
Additional PACE in California |
3rd Party PACE Administrator |
PACE Program |
Commercial |
Residential |
When Authorized |
|
California Statewide Development Communities Authority (CSCDA) |
PACE Funding |
PACE Funding |
|
x |
N/A |
|
California Statewide Development Communities Authority (CSCDA) |
Counterpointe SRE |
Counterpointe SRE |
x |
|
N/A |
|
California Statewide Development Communities Authority (CSCDA) |
Clean Fund |
Clean Fund |
x |
|
N/A |
|
California Statewide Development Communities Authority (CSCDA) |
Petros PACE Finance |
Petros PACE Finance |
x |
|
N/A |
|
California Municipal Finance Authority (CMFA) |
Energy Efficient Equity |
E3 PACE |
|
x |
N/A |
|
California Municipal Finance Authority (CMFA) |
Blue Flame Energy Finance LLC |
BluePACE |
x |
|
N/A |
|
California Municipal Finance Authority (CMFA) |
Structured Finance Associates |
Structured Finance |
x |
|
N/A |
|
California Municipal Finance Authority (CMFA) |
OnPACE Energy |
OnPACE Energy |
x |
|
N/A |
|
California Municipal Finance Authority (CMFA) |
Twain Financial |
Twain Financial |
x |
|
N/A |
|
California Municipal Finance Authority (CMFA) |
Samas Commercial |
Samas Commercial |
x |
|
N/A |
|
California Municipal Finance Authority (CMFA) |
PACE Equity |
PACE Equity |
x |
|
N/A |
Prior Board Actions:
5/24/2016 - Multiple actions related to Sonoma County Property Assessed Clean Energy Financing Marketplace, Golden State Finance Authority, and Ygrene Energy Fund
3/17/2015 - Resolution to add the FigTree Financing PACE program to the Marketplace and authorize the California Enterprise Development Authority to conduct contractual assessment proceedings and levy contractual assessments within the unincorporated territory of the County.
10/21/2014 - Multiple actions to create Sonoma County Property Assessed Clean Energy Financing Marketplace, including the addition of CaliforniaFIRST and HERO PACE financing to the Marketplace; joining the Western Riverside Council of Governments (WRCOG) JPA; and authorizing WRCOG and the California Statewide Communities Development Authority to accept applications from property owners, conduct contractual assessment proceedings, and levy contractual assessments within the unincorporated territory of the County.
Fiscal Summary
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Expenditures |
FY 19-20 Adopted |
FY20-21 Projected |
FY 21-22 Projected |
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Budgeted Expenses |
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Additional Appropriation Requested |
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Total Expenditures |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
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Narrative Explanation of Fiscal Impacts:
There are no fiscal impacts related to this action.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
There are no staffing impacts related to this action.
Attachments:
Attachment 1 - Resolution authorizing California Municipal Finance Authority (CMFA)/BlueFlame PACE Services LLC to administer a third-party PACE financing project in unincorporated Sonoma County
Attachment 2 - CMFA JPA Agreement with Sonoma County 2004
Attachment 3 - CMFA Consumer Protection Policies 2018
Related Items “On File” with the Clerk of the Board:
None