COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: November 18, 2025
SUBJECT: Adoption of a Resolution Authorizing the City to Enter the California Statewide Communities Development Authority Open Property Assessed Clean Energy Programs
Description:
The City Council will consider adopting a Resolution authorizing the City to enter the Open Property Assessed Clean Energy (PACE) Programs for residential and commercial development, administer ed by the California Statewide Communities Development Authority (CSCDA).
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution consenting to the inclusion of properties within the territory of the City of Santa Maria in the C alifornia Statewide Communities Development Authority Open PACE Programs; authorizing the C alifornia Statewide Communities Development Authority to accept applications from property owners, conduct contractual assessment proceedings and levy contractual assessments within the territory of the City; a nd authorizing related actions.
BACKGROUND:
Under the leadership of the City Council, the City of Santa Maria has identified economic development as a key priority to create jobs and enhance economic stability for the community. Yet current market conditions, including the effects of inflation as well as high interest rates for construction loans, can present challenges for new development.
In an effort to help mitigate the high costs of development and also further renewable energy goals throughout California, the CSCDA has established PACE. Pace provides a new funding mechanism for both commercial and residential property owners to finance energy efficiency, renewable energy, water conservation, and seismic improvements.
Administered entirely by the CSCDA, the program requires no City expenditures or staff time.
2 DISCUSSION:
The CSCDA is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. The City of Santa Maria is among 530 cities, counties, and special districts throughout California that are members of CSCDA. As such, the City is entitled to opt in to the Open PACE Programs.
PACE represents a turnkey resource for residential and commercial property owners to finance qualif ied improvements, including energy efficiency, renewable energy, water conservation, and seismic improvements. Examples of projects funded by PACE include, but are not limited to, residential solar installations; new lighting, insulation, and HVAC systems; resiliency measures; and more.
CSCDA developed qualification criteria to select PACE Program Administrators to be included in the CSCDA Open PACE platform. These qualified Administrators:
Develop managed contractor networks in California communities Provide 100 percent financing for energy efficiency projects File repayment obligations through property tax bills
All responsibility for PACE program administration, including the conduct of assessment proceedings; levy of assessments; any required remed ial action in the case of delinquencies in assessment payments; and the issuance, sale or administration of bonds issued in connection with the program rests with the CSCDA. No staff time is required from the City, and costs are fully funded by the property owner.
The program is entirely optional for developers and owners of both commercial and residential property. The program provides a new financing tool that large -scale projects and homeowners alike can utilize to achieve their renewable energy goals.
Alternative(s)
The City Council may decide not to authorize PACE, which would prevent local commercial and residential property owners from using this tool to aid in financing new projects and upgrades to existing commercial facilities and homes.
Fiscal Considerations
None. All costs and expenses related to the program and its administration are borne by the CSCDA and property owner.
Impact on the Community
The adoption of the Open PACE Programs will provide a new financing tool for developers and homeowners alike at no cost to the City.
ATTACHMENT(S)
A. Resolution – PACE Program