Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Resilient Environment Division: Choose a Division.
Information
Requested Action
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A. MOTION TO DIRECT Office of the County Attorney to draft amendments to repeal Section 20-14, Broward County Code of Ordinances, and Sections 22.175 through 22.177, Broward County Administrative Code, related to standards for Property Assessed Clean Energy (“PACE”) entities doing business in Broward County.
(Per the Tuesday Agenda Memorandum, withdrawn.)
B. MOTION TO AUTHORIZE County Administrator, after consultation with the Office of the County Attorney, to terminate the interlocal agreements between PACE entities (PACE Finance Districts) and Broward County.
(Per the Tuesday Agenda Memorandum, withdrawn.)
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Why Action is Necessary
Board action is required to direct the Office of the County Attorney to draft the referenced Ordinance amending the Broward County Code of Ordinances and to authorize the County Administrator to terminate the PACE agreements.
What Action Accomplishes
Provides the required direction to the Office of the County Attorney; authorizes the County Administrator to terminate the interlocal agreements with the PACE entities (PACE Finance Districts).
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None taken.
Summary Explanation/Background
PACE was authorized in the State of Florida in 2010, following passage of SB 7179. The legislation recognized PACE entities (a/k/a PACE finance districts) as local governments (in accordance with Section 189.012, Florida Statutes).
Broward County launched the Broward Property Assessed Clean Energy (“PACE”) program in June 2016, authorizing PACE finance districts to fund energy efficiency, renewable energy, and resiliency improvements for eligible properties and levy non-ad valorem special assessments. The Board of County Commissioners (“Board”), in turn, required certain mandatory disclosures and consumer protections.
In the ensuing years, concerns have arisen regarding predatory practices, inappropriate use of the County logo to imply an affiliation with the County, and a lack of understanding by property owners of the full effect of entering into PACE financing agreements.
At least one PACE finance district has secured a legal judgment in a different jurisdiction determining that local authorization and local code compliance was not required for program services to be offered by its PACE finance district and has sought a judicial determination requiring local tax collectors to act on levies issued by PACE providers even without locally authorized permission by municipal and/or county governments.
In the 2024 legislative session, SB 770 was passed by the Florida Legislature to enhance PACE consumer protections and clearly establish the authority and role of counties and municipalities. It is expected to become law on July 1, 2024, and would substantially alter the conditions under which PACE finance districts are operated by redefining a PACE “Program Administrator,” establishing audit requirements for such administrators, and requiring PACE Program Administrators to register and manage contractors installing improvements financed through PACE.
According to a recent informal communication from the Office of the Auditor General of the State of Florida, county or municipal governments that enable PACE finance districts to operate may be considered PACE Program Administrators under the new statute, thereby potentially obligating counties to comply with all PACE accounting and audit responsibilities, including liability for financial and other internal control failures of the actual PACE Program Administrators.
Motion A directs the Office of the County Attorney ("CAO") to draft amendments to repeal various portions of the Broward County Code of Ordinances and Administrative Code to remove PACE authorization at the County level. Municipal governments would retain their independent authority to authorize PACE within their respective municipal jurisdiction.
Motion B authorizes the County Administrator to terminate the interlocal agreements with the PACE finance districts, after consulting with the Office of the County Attorney. Termination would take effect 90 days after notice. Municipal governments would also retain the authority to enter into interlocal agreements with PACE finance districts to authorize PACE in their respective jurisdictions.
The Board previously directed the Office of the County Attorney to draft amendments to Section 20-14, Broward County Code of Ordinances, and Sections 22.175 through 22.177, Broward County Administrative Code, related to standards for Property Assessed Clean Energy ("PACE") entities doing business in Broward County, including requiring a current interlocal agreement and providing additional consumer protections and disclosure requirements for residential projects. These amendments are scheduled for public hearing on August 22, 2024 (the County Attorney issued a memo on June 5 explaining why the public hearings are being set for August 22 instead of June 18). The repeal amendments drafted pursuant to this item would also be scheduled for public hearing on August 22, 2024, without submittal of a separate motion to set the public hearing, so all proposed PACE amendments could be heard during the same meeting.
Source of Additional Information
Dr. Jennifer Jurado, Chief Resilience Officer and Deputy Director, 954-519-1464.
Fiscal Impact
Fiscal Impact/Cost Summary
No fiscal impact.