PACE program to have clear processes both internally and externally to handle these steps properly and efficiently.
11.1 Making Approval as Simple and Objective as Possible
A recommended practice for any PACE program is to make the application approval process as objective as possible by reducing the decision to a simple and consistent set of go/no-go decisions based on clear, defensible criteria. For example, the two key stages of application processing might include the following go/no-go criteria:
At point of application submission (step 4):
Is the application filled out completely and signed by all legal owners?
Has written lender consent been obtained?
Has the applicant/property met all program eligibility criteria?
Does a property title search confirm legal owners and eligibility?
Are all measures in the project eligible for financing?
Does project review verify that the total project will save energy?
If the applicant is participating in a utility rebate/incentive program, has the associated paperwork
Does the project meet the Savings-to-Investment Ratio (SIR) target?
Are the chosen contractors eligible to participate in the program?
At point of request for progress/final payment (step 7):
Has a lien been placed on the property to secure the financing?
Is there proof that the project has been completed or that a milestone has been reached?
Has the applicant signed and submitted the payment request form that states a milestone has been
reached and the owners are satisfied with the work?
If the applicant wants payment to go directly to the contractor, has the applicant signed a payment
Have appropriate permits been submitted?
Have contractor invoices showing progress been submitted?
Is an independent onsite inspection necessary, and if so, does it verify claimed progress?
Clean energy projects applying for financing are likely to be significantly different, largely due to the mix of property sizes and types in a commercial program. This means that PACE program administrators or their consultants will need to be well-versed in reviewing a wide range of project sizes and combinations of efficiency measures within them in order to verify the legitimacy and energy-saving potential of the projects that seek funding.
Chapter 13 —