Senate Approves C-PACE!
March 22, 2017
The SC Senate approved Commercial-Property Assessed Clean Energy (C-PACE) legislation, S.261 by Senator Thomas Alexander, in a unanimous vote (40-0) on Wednesday, March 22. Thank you to everyone who reached out to Senators and offered your support for C-PACE and S.261.
The Senate adopted the LCI Committee report that included 3 amendments:
*total project costs for clean energy improvements cannot not be less than $100,000
*a county's ability to issue revenue bonds to finance C-PACE loans was eliminated
*aggregate savings generated by clean energy improvements must equal or exceed the investment in clean energy improvements.
Now the bill will receive its third and final reading tomorrow, Thursday, March 23, before being delivered to the House of Representatives where we anticipate the bill will be referred to the House Labor, Commerce, and Industry Committee.
If you are a commercial property owner, lender, energy efficiency, water conservation or renewable energy business who supports the creation of C-PACE programs in SC, please take the time to contact members of the House LCI Committee and express your support for C-PACE.
C-PACE Creates a New Financing Opportunity: Commercial property owners can finance up to 100% of the cost of clean energy improvements for their building energy and water efficiency and renewable energy upgrades. Loans are private, commercial and long-term (up to 20 years) and repaid through annual county property tax bills. Loans remain with the property and are transferred to a new building owner upon sale of the property.
C-PACE requires no upfront capital costs: Building owners site lack of capital as one of the greatest reasons they don't address deferred building maintenance needs. C-PACE loans eliminate that barrier.
C-PACE adds value to property: Buildings become more efficient users of water and energy, and the savings can be passed on to tenants.
C-PACE reduces overall ownership and operation costs of building assets: Energy savings are immediate and project costs and repayments are extended over a long enough period (up to 20-years) that an owner’s utility savings exceed loan payments for the C-PACE investments creating a positive cash flow for the building owner.
C-PACE creates jobs: Approximately 4,000 jobs have been created over the past seven years across the US to implement C-PACE clean energy improvements. SC would like to add to that job creation number!
C-PACE stimulates local economies: New capital investments in buildings have a proven track record of improving occupancy rates, increasing property values, protecting local tax bases, increasing economic activity and promoting the general welfare of communities where C-PACE programs are established. More than $335 million have been invested in C-PACE improvements for 988 commercial projects.
C-PACE is voluntary: County governments voluntarily establish clean energy improvement districts through passage of a local ordinance and property owners within the districts voluntarily opt-in to the district through a written agreement with the local government for the sole purpose of being able to implement clean energy building improvements and pay for the improvements with a voluntary assessment on their property tax bills. Counties can recover their program administrative costs and can opt to have third parties administer their programs.
Properties that Benefit: Commercial, industrial, agricultural, non-profit owned buildings and multifamily dwellings with five or more units are eligible to participate in a C-PACE program.
Property owners must qualify: Property owners must be current on property and assessment payments, must not be in foreclosure or have any involuntary liens, defaults, or judgments applicable to their property.
Lenders must consent: Before a C-PACE loan can go forward, a mortgagee MUST CONSENT to a property owner’s C-PACE loan and its seniority to a mortgage. Loans cannot be accelerated in the event of a default, so only the last unpaid loan payment would be due—not the balance of the loan.
32 states, the District of Columbia, and 2,000 municipalities have
voluntary PACE programs.
For more information about CPACE Financing, contact Patty Pierce, at firstname.lastname@example.org.
Presentations from SCCEBA Business Roundtables: Understanding Commercial Property Assessed Clean Energy
Presentation courtesy of David Gabrielson of PACENow and Jessica Bailey of Greenworks Lending
PACE in 90 seconds
C-PACE PaceSetter: Calvary Temple
C-PACE PaceSetter: Shagbark Lumber
C-PACE PaceSetter: Forstone