Agenda

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C. 75

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	December 19, 2017

Contra

Costa

County

Subject:

Ygrene PACE Financing Program

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/19/2017

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Jason Crapo, 925-674-7722

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: December 19, 2017
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2017/444 and Resolution No. 2017/450 authorizing operation of the Ygrene PACE Program within the County’s jurisdiction.

AUTHORIZE the Conservation and Development Director, or designee, to execute the Operating Agreement with the Golden State Financing Authority (GSFA) to operate the Ygrene PACE financing program in the unincorporated area of Contra Costa County.

AUTHORIZE the Conservation and Development Director, or designee, to execute the Indemnification and Insurance Agreement with Ygrene Energy Fund, LLC, to provide indemnification and insurance protection to the County related to the Ygrene PACE financing program.

RECOMMENDATION(S): (CONT'D)

FISCAL IMPACT:

There is no fiscal impact to the County associated with this item.

BACKGROUND:

California law allows cities, counties, and other authorized public agencies to establish voluntary financing districts to facilitate energy and water efficiency improvements to existing residential and commercial properties. Such financing is commonly referred to as Property Assessed Clean Energy (PACE) financing. Once established, property owners within the boundaries of such a district can choose to enter into a voluntary agreement and borrow funds from the district to finance energy efficiency improvements on their property. The assessment is then repaid in installments on the property tax bill.

The Golden State Financing Authority (GSFA) is a Joint Powers Authority with the legal authority to establish PACE financing districts, and is the public agency sponsor of the Ygrene PACE financing program. Contra Costa County is a member agency of GSFA. GSFA contracts with Ygrene Energy Fund, LLC to administer day-to-day operations of the Ygrene PACE program.

On June 16, 2015, the Board of Supervisors approved the recommendation of the Internal Operations Committee to direct the Department of Conservation and Development (DCD) to establish an application process and accept applications from PACE providers to operate within the unincorporated area of the County. The Board also approved the form of an Operating Agreement the County would require PACE providers to enter into with the County as a condition of operations. The purpose of the Operating Agreement is to protect the County and the general public from the potential costs and risks of PACE programs. The Operating Agreement requires PACE providers to participate in the State PACE Loss Reserve Program, disclose financial costs and risks to participating property owners, and indemnify the County from legal claims arising from the operation of PACE programs.

The Board of Supervisors has previously authorized two other PACE programs to operate within the County’s jurisdiction: CaliforniaFirst and California HERO. If the Board approves the recommended actions, Ygrene would become the third PACE program authorized to operate within the unincorporated area of the County.

CONSEQUENCE OF NEGATIVE ACTION:

If the Board of Supervisors does not approve the recommended actions, the Ygrene PACE financing program will not be able to provide property owners in the unincorporated area of the County with financing for energy and water efficiency improvements to their property.