Municipal Public-Private Finance: Sponsoring Commercial Property Assessed Clean Energy (C-PACE) Financing Programs

Enabling Legislation, Program Setup and Guidelines, Program Launch

This program has been cancelled

A live 90-minute CLE video webinar with interactive Q&A


Tuesday, December 7, 2021 (Tomorrow)

1:00pm-2:30pm EST, 10:00am-11:30am PST


This CLE course will equip counsel to advise state and local governments in structuring and launching a commercial property assessed clean energy (C-PACE) financing program. The panel will review different program structures and strategies for reducing the cost and time it takes to sponsor C-PACE programs.

Description

C-PACE borrowing is a rapidly growing tool municipalities can offer to address climate issues, blight, and redevelopment. C-PACE allows owners to fund, depending on the statute, energy-efficient, water-efficient, renewable energy and resiliency upgrades to commercial buildings and multifamily housing. The loan is repaid through a voluntary special tax assessment on the real property. The source of funds is typically a private capital provider, though in rare cases, governments may also fund C-PACE projects.

State legislation is usually necessary to permit municipalities or other local governments to implement C-PACE programs. Attorneys seeking to introduce or expand C-PACE programs should understand what legislation should include for best outcomes once the program is launched. The legislation should address both the program's administrative structure and the categories of facilities that may be financed. A range of startup responsibilities falls on local governments depending on which model or models they choose.

Once the legislation is in place, the sponsors must decide what projects can be financed and by whom, whether projects will be funded solely from private capital providers, what entity will service the repayment, timing of funding, and how energy efficiencies and savings and resiliency features will be documented and measured.

Listen as this experienced panel reviews the advantages of C-PACE programs and the steps states and localities must take to set up these programs.

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Outline

  1. Overview of C-PACE regulatory framework
  2. Enabling legislation
    1. State level (or home rule locality)
    2. Local implementing ordinance or resolution
  3. Structuring the program
    1. Model options: Closed vs. open market, statewide vs. local, multiple vs. single administrator
    2. Authorized funding mechanisms
    3. C-PACE notes and bonds
    4. Collection and default remedies
  4. Establishing program guidelines
    1. Roles and responsibilities of parties in design, implementation and administration of a C-PACE program
    2. Eligibility standards for projects, borrowers and vendors
    3. Application and funding process
    4. Measuring and verifying energy- and resiliency-related improvements
  5. Types of C-PACE transactions
    1. Existing buildings
    2. New construction
    3. Substantial renovation

Benefits

The panel will address such important topics as:

  • Why should a state or locality consider enabling C-PACE?
  • What is the burden on local government of sponsoring a C-PACE program if any?
  • What should enabling legislation and local ordinances address?
  • What options exist regarding administrative structure?
  • What properties qualify for C-PACE? Should localities finance projects?

Faculty

Johnson, Abby
Abby Johnson

President and CEO
Virginia PACE Authority

Ms. Johnson is Executive Director and founder of the Virginia PACE Authority (VPA) and President of Abacus Property...  |  Read More

Nusbaum, William
William L. (Bill) Nusbaum

Partner
Williams Mullen

Mr. Nusbaum focuses on commercial real estate transactions, economic development incentives, tax-exempt housing,...  |  Read More