PACENation is a private networking and membership organization that offers long-term representation for lenders financing environmentalist energy projects known as “Property Assessed Clean Energy,” or PACE. From 2016 to 2019 PACENation was a project of the New Venture Fund, a left-of-center funding and fiscal sponsorship nonprofit administered by the philanthropic consultancy Arabella Advisors, but achieved independent tax exempt status in June 2019. ¹

Background

Nonprofit Status and Origins

PACENation is an industry trade group promoting long-term financing for environmentalist energy projects. PACE is an acronym for “Property Assessed Clean Energy.”

PACENation began as a project of the New Venture Fund, a left-of-center funding and fiscal sponsorship nonprofit administered by the philanthropy consultancy Arabella Advisors. ²

In June 2019, it was granted independent tax exempt status as a 501(c)(6) trade association; notably, it originally operated under the New Venture Fund’s 501(c)(3) tax exempt status. ³

However, the group’s first IRS Form 990 disclosure filed for 2019 listed PACENation as a 501(c)(4) social welfare organization, a type of nonprofit permitted by law to engage in substantially more lobbying than 501(c)(3) nonprofits. The disclosure also notes that the group is based in Shady Cove, Oregon. ⁴ It’s unclear when the group changed its tax exempt status to 501(c)(6). However, the group’s listing on the left-leaning website Idealist notes that it’s based in Calabasas, California. ⁵

Organizational Overview

PACE essentially functions as a government loan administered through private lenders. PACE allows government entities to pay in full for the upfront expense of private business and home energy efficiency projects. Property owners reimburse the government through increased property tax payments. ⁶

The PACE concept was created in 2008. The model has become more popular for developers, financing $660 million in building improvements from 2016 through 2018, a sharp increase from the $208 million in projects from 2008 through 2015, PACENation reports. ⁷

PACE programs are long-term private financing for renewable energy projects in homes, businesses, or local governments. Legislatures in 36 states and the District of Columbia enacted PACE programs. California, Florida and Missouri have PACE programs for residential homes. ⁸

The Wall Street Journal reported that in 40 California counties, the number of homeowners defaulting on PACE loans rose 450 percent from 2016 to 2017, from 245 to about 1,100. ⁹

Renew Financial is an institutional founder of PACENation. ¹⁰

California financier Nathaniel Simons and wife Laura Baxter Simons have spent millions of dollars on various environmental projects since 2009, and help lead the capital venture firm Prelude Ventures, which invests in new green companies. Prelude Ventures helped finance Renew Financial, a consulting firm that specializes in PACE financing. ¹¹ Simons also funds Energy Foundation, which also finances PACE Nation. ¹²

Leadership

Colin Bishopp is the executive director of PACENation. Before that, he worked for Renew Financial and at the U.S. Department of Energy. ¹³

Mike Centore is the director of market research, after stints at the Environmental Defense Fund and Context. ¹⁴

David Gabrielson is a senior fellow for PACENation. A former city councilman in Bedford, New York, Gabrielson also worked 20 years as an investment banker to state and local governments.

Board of Directors

Donald Gilligan is the Board Chair for PACENation. ¹⁵ He also serves as president of National Association of Energy Service Companies (NAESCO), a national trade organization of energy service companies. He is also the board treasurer for Emerald Cities Collaborative, a green energy advocacy organization. ^{16 17}

Jessica Baily is the Vice Chair for PACENation. note] “About Us.” PACENation, Accessed February 27, 2023. https://www.pacenation.org/about/[/note] Baily serves as the President and CEO of Nuveen Green Capital, a sustainable housing firm, and is the co-founder of Greenworks Lending, a national provider of commercial “Property Assessed Clean Energy,” (C-PACE) that was acquired by Nuveen in 2021. ¹⁸

Other members of the PaceNation board of directors include Trenton Allen, of Sustainable Capital Advisors; Deborah Burker of Rockefeller Brothers Fund; Beau Engman, founder of Pace Equity; Laura Franke of PFM Financial Advisors; Mansoor Ghori of Petros Pace Finance; and Bib Giles, CEO of Pace Funding. ¹⁹

Funding

Since becoming an independent nonprofit in mid-2019, PACENation has received at least one grant of $21,114 (in 2020) from its former fiscal sponsor, New Venture Fund. ²⁰

1. Archived webpage. PaceNation. Archived Nov. 23, 2018. Accessed Sept. 29, 2022. See bottom of page for New Venture Fund project status. https://web.archive.org/web/20181123023632/https://members.pacenation.org/cpages/home
2. Archived webpage. PaceNation. Archived Nov. 23, 2018. Accessed Sept. 29, 2022. See bottom of page for New Venture Fund project status. https://web.archive.org/web/20181123023632/https://members.pacenation.org/cpages/home
3. IRS Determination Letter. PaceNation. Awarded June 25, 2019. Accessed Sept. 29, 2022. https://apps.irs.gov/app/eos/detailsPage?ein=842270340&name=PACENATION&city=&state=&countryAbbr=US&dba=&type=DETERMINATIONLETTERS,%20COPYOFRETURNS&orgTags=DETERMINATIONLETTERS&orgTags=COPYOFRETURNS
4. Return of Organization Exempt from Income Tax (Form 990). PACENation. 2019. https://apps.irs.gov/pub/epostcard/cor/842270340_201912_990EO_2021121319303475.pdf
5. PACENation. Idealist. Accessed Sept. 29, 2022. https://www.idealist.org/en/nonprofit/0643fc75c6d8496798cde8ce5b050dc8-pacenation-calabasas-ca
6. PACE. Accessed October 24, 2019. https://pacenation.org/wp-content/uploads/2016/10/PACEBasics_2016_10_7.pdf
7. Gose, Joe. “To Meet Demand for Green Building, Developers Get a Leg Up.” The New York Times. August 27, 2019. Accessed October 25, 2019. https://www.nytimes.com/2019/08/27/business/green-buildings-pace-loans.html
8. PACE Programs. Accessed October 25, 2019. https://pacenation.org/pace-programs/
9. Grind, Kirsten. The Wall Street Journal. August 15, 2017. Accessed October 25, 2019. https://www.wsj.com/articles/more-borrowers-are-defaulting-on-their-green-pace-loans-1502789401
10. Marklay, Lachlan. “Hedge Fund-Financed Green Group Discloses $50 Million in Grants.” Washington Free Beacon. September 8, 2015. Accessed October 25, 2019. https://freebeacon.com/issues/hedge-fund-financed-green-group-discloses-50m-in-grants/
11. Marklay, Lachlan. “Hedge Fund-Financed Green Group Discloses $50 Million in Grants.” Washington Free Beacon. September 8, 2015. Accessed October 25, 2019. https://freebeacon.com/issues/hedge-fund-financed-green-group-discloses-50m-in-grants/
12. Marklay, Lachlan. “Hedge Fund-Financed Green Group Discloses $50 Million in Grants.” Washington Free Beacon. September 8, 2015. Accessed October 25, 2019. https://freebeacon.com/issues/hedge-fund-financed-green-group-discloses-50m-in-grants/
13. About. PaceNation. Accessed October 25, 2019. https://pacenation.org/about/
14. About. PaceNation. Accessed October 25, 2019. https://pacenation.org/about/
15. “About Us.” PACENation, Accessed February 27, 2023. https://www.pacenation.org/about/
16. “Donald Gilligan.” The Global ESCO Network, Accessed February 27, 2023. https://globalesconetwork.unepccc.org/people/donald-gilligan/
17. “Emerald Cities Collaborative. LinkedIn, Accessed February 27, 2023. https://www.linkedin.com/company/emerald-cities-collaborative
18. “Jessica Baily.” LinkedIn, Accessed February 27, 2023. https://www.linkedin.com/in/jessica-bailey-98750a4
19. About. PaceNation. Accessed October 25, 2019. https://pacenation.org/about/
20. Return of Organization Exempt from Income Tax (Form 990). New Venture Fund. 2020. Schedule I.