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C-PACE Legislation: A Look at Policy and Legal Framework
Commercial Property Assessed Clean Energy (C-PACE) programs have gained traction as a mechanism to finance energy efficiency, renewable energy, and water conservation upgrades to buildings.

C-PACE Legislation: A Look at Policy and Legal Framework
Commercial Property Assessed Clean Energy (C-PACE) programs have gained traction as a mechanism to finance energy efficiency, renewable energy, and water conservation upgrades to buildings. These programs allow property owners to finance improvements through a voluntary property assessment, which is repaid over time through the property tax bill. However, the legislative and legal frameworks governing C-PACE vary significantly across different states in the U.S. This article delves into the policy and legal nuances of C-PACE legislation across key states, providing a comprehensive understanding of the landscape.
Understanding C-PACE
C-PACE programs are designed to help commercial property owners overcome the high upfront costs of energy improvements by spreading the cost over a period of up to 20 years. The unique aspect of C-PACE is that the financing is attached to the property rather than the owner, making it transferable upon sale. This feature, along with the potential for positive cash flow from energy savings, makes C-PACE an attractive option for property owners and investors.
States with Active C-PACE Programs
C-PACE programs are currently active in several states, each with its unique legislative framework. The following sections provide an overview of key states where C-PACE is operational, highlighting the differences in policy and implementation.
State | Enabling Legislation | Eligible Improvements | Program Administrator | Key Differences |
---|---|---|---|---|
California | AB 811, AB 474 | Energy efficiency, renewable energy, water | Open Market (multiple administrators) | Comprehensive program with a large market |
Colorado | HB 16-1270 | Energy efficiency, renewable energy, water | Colorado C-PACE | Strong focus on energy efficiency |
Florida | HB 7179 | Energy efficiency, renewable energy, resiliency | Florida PACE Funding Agency, others | Includes resiliency improvements |
New York | Article 5-L of the General Municipal Law | Energy efficiency, renewable energy, water | Energize NY | Requires a demonstration of energy savings |
Texas | SB 385, SB 2452 | Energy efficiency, renewable energy, water | Texas PACE Authority | Emphasizes open market administration |
Connecticut | Public Act No. 11-80 | Energy efficiency, renewable energy | Connecticut Green Bank | First state-wide C-PACE program |
California: A Comprehensive Market
California was one of the first states to adopt C-PACE legislation with AB 811 and AB 474, enabling property owners to finance energy improvements through a special assessment. California's C-PACE market is one of the largest in the country, with multiple program administrators offering a wide range of services. The state has a comprehensive approach, covering energy efficiency, renewable energy, and water conservation projects.
Key Features:
Open market with multiple administrators
Wide range of eligible improvements
Strong market presence with significant project funding
Colorado: Focus on Energy Efficiency
Colorado's C-PACE program, enabled by HB 16-1270, focuses on energy efficiency, renewable energy, and water conservation projects. The program is administered by Colorado C-PACE, which provides technical assistance and streamlined processes for property owners.
Key Features:
Centralized administration by Colorado C-PACE
Emphasis on energy efficiency projects
Technical assistance for project development
Florida: Including Resiliency
Florida's C-PACE legislation, established by HB 7179, includes energy efficiency, renewable energy, and resiliency improvements. The state has multiple program administrators, including the Florida PACE Funding Agency, allowing for a diverse range of project types.
Key Features:
Includes resiliency improvements (e.g., hurricane protection)
Multiple administrators providing program flexibility
Strong focus on both energy and resiliency
New York: Demonstrating Energy Savings
New York's C-PACE program, governed by Article 5-L of the General Municipal Law, requires property owners to demonstrate energy savings as a condition for financing. The program is administered by Energize NY and supports a wide range of energy and water conservation projects.
Key Features:
Requirement to demonstrate energy savings
Administered by Energize NY
Comprehensive support for energy and water projects
Texas: Open Market Administration
Texas adopted C-PACE through SB 385 and SB 2452, emphasizing an open market approach with multiple program administrators. The Texas PACE Authority oversees the program, ensuring compliance and providing resources for property owners.
Key Features:
Open market administration with multiple options
Strong emphasis on compliance and oversight
Flexibility in project types and financing
Connecticut: Pioneering State-Wide Program
Connecticut was the first state to implement a state-wide C-PACE program under Public Act No. 11-80. Administered by the Connecticut Green Bank, the program focuses on energy efficiency and renewable energy projects, offering a streamlined process for property owners.
Key Features:
First state-wide C-PACE program
Centralized administration by Connecticut Green Bank
Focus on energy efficiency and renewable energy
Conclusion
C-PACE programs offer a valuable financing mechanism for property owners seeking to improve energy efficiency, incorporate renewable energy, and enhance resilience. However, the legislative and administrative frameworks vary significantly across states, impacting the implementation and success of these programs. By understanding these differences, property owners, investors, and other stakeholders can better navigate the C-PACE landscape and leverage the opportunities it presents.