The National Association of State Energy Officials (NASEO) today released two new reports on Commercial Property Assessed Clean Energy (C-PACE): C-PACE State-Local Coordination: Key Considerations for State Energy Officials and Improving Access to C-PACE for Smaller Businesses: Case Studies from Three States. Both reports focus on steps State Energy Offices can take to improve state-local coordination in support of C-PACE programs, and how State Energy Offices and C-PACE program administrators can improve access to C-PACE for small businesses, an underrepresented market segment in C-PACE transactions.
C-PACE is structured in different ways depending on the jurisdiction, but generally it is a mechanism that enables commercial building owners to finance energy efficiency and renewable energy improvements to their properties through a special assessment, which is then repaid through the owners’ property taxes. C-PACE State-Local Coordination: Key Considerations for State Energy Officials finds that C-PACE programs are multi-layered and require the close coordination of both state and local governments, as well as third-party administrators and the private sector. The report highlights key best practices State Energy Offices can consider in order to expand local government C-PACE adoption and use, including:
Convening key C-PACE stakeholders and local governments;
Working with C-PACE administrators to provide technical assistance to local governments on C-PACE, and
Serving as either C-PACE program administrators, sponsors, conveners, and/or educators.
Additionally, smaller-sized building energy retrofit projects, typically undertaken by small businesses, face increased challenges when accessing C-PACE financing. Improving Access to C-PACE for Smaller Businesses: Case Studies from Three States identifies common barriers impeding the ability of small businesses to utilize C-PACE financing, such as lack of expertise and high programmatic fees compared to the project size. The report draws on examples from Colorado, Michigan, and Minnesota to elevate strategies that promote the use of C-PACE financing by smaller businesses. Ideally, State Energy Offices can use this information to collaborate with C-PACE administrators and increase small business access to C-PACE financing.
Download the reports and view other NASEO C-PACE resources at https://naseo.org/publications.