Dear Friends and neighbors,

I want to share why I voted last week against authorizing a financial instrument, C-PACER (Commercial Property Assessed Clean Energy & Resiliency) for sustainability upgrades, via Ordinance 2022-12s. The C-PACER plan is designed to advance sustainable infrastructure upgrades and was determined to be a “public benefit”. This financial instrument is not a new concept. It has been around since 2008.
 
I try to measure legislation on a scale of 1-10. Does it promote independence or dependence on government? Is it affordable? Is it a goal of the government or a goal of the governed? What am I being asked to support on your behalf? What does the legislation do? What are the long term affects? Does the legislation represent the district?
 
In committee hearings, we heard testimony from the man who said he helped author the legislation for the C-PACER plan, Michael Yaki of Petros PACE Finance. I found that Petros PACE was being acquired by Athene Holding and will be managed by the team at Apollo (NYSE: APO) (In March 2021, Apollo Global Management announced the acquisition of life insurance company Athene Holdings for $11 billion. Prior to the merger announcement, Apollo owned 35% of Athene.^{[168][169][170][171]}), Athene's strategic asset management partner. Together Apollo and Athene expect that the company will accelerate its rapid growth in C-PACE financing driven by new market expansion, sustainable construction and regulatory climate mandates. (In September 2020, Apollo entered into a $5.5 billion real estate investment partnership with the Abu Dhabi National Oil Company (ADNOC).^[166]
 
As an FYI, you may see the acronym ESG in documents. It’s referring to environmental, social and governance measurements. The World Economic Forum (WEF) recently published its?draft ESG metrics, which incorporate elements of the earlier?Task Force on Climate-Related Financial Disclosure. These WEF metrics align with the?United Nations sustainable development goals?(SDGs) and look set to become the global standard for ESG reporting. It is connected to real estate transactions (ESG and Other Tailwinds for C-PACE Financing - Multifamily Real Estate News (multihousingnews.com)). The UNSDGs will be a topic for another e-letter.
 
Also testifying in committee was a woman (her written comments, a public record, are here) from Nuveen Green Capital, one of the world’s leading Asset Managers and a national leader in sustainable commercial real estate and part of Nuveen, the $1.3 trillion asset manager of TIAA. Here is an article on Nuveen TIAA Investments, Green Muni Bonds.
 
In ESG Today, we learn that Greenworks – now Nuveen Green Capital – is a national leader in C-PACE financing, a program that enables building owners to borrow money for clean energy projects such as renewable energy or energy efficiency. Repayments are made through an assessment on their property tax bill, providing a more affordable financing alternative to mezzanine debt and equity. Greenworks Lending is a wholly owned subsidiary of Nuveen.
 
What drove me to research this legislation was how the state handled it. First, they planned to write legislation for the entire state, but diverted the funding for COVID. The majority party passed a partisan bill (SSB 5722) mandating stringent and costly building codes for large buildings, but offered a cost-savings financing plan to make it more affordable or more palatable. The upgrades to the properties are considered a public benefit—greenhouse gas reduction. For investors, it’s a new market expansion. The phrase “one man’s debt is another man’s asset” is meaningful here.
 
To that I wonder…since Governor Inslee signed legislation with the goal to ban internal combustion engines (ICE) by 2030, will those who must purchase electric vehicles due to that legislation, get a financing plan to help with the debt, too? CARSCOOPS covers the story on banning ICE vehicles. The Detroit Bureau shares additional information on the legislation: The State of Washington is poised to become the first state to ban the sale of new vehicles with internal combustion engines by the end of the decade. 
 
For additional information, check out the MRSC website. Municipal Research and Services Center shares all kinds of information on government issues and codes.
 
I encourage you to check out the council meetings. Here is the schedule. At the end of each meeting is an open public forum. You may speak up to 3 minutes on any county business that was not on the agenda. You can call in, zoom or attend in person each meeting. Your voice is important. I always welcome your thoughts and concerns.
 
Grateful for you,