By Nicholas Zuba, Director, PACE Policy and Programs at CleanFund

The EIC Open PACE Program (C-PACE) is a financing program for energy-efficiency projects, available  in many states. A major barrier for a building owner to implement energy-saving improvements is the need for cash to cover upfront costs. C-PACE helps building owners with the financing to make these improvements – and reap the benefits – sooner. These costs are repaid over time through an assessment placed on the improved property, similar to tax assessments like water, sewer, or other special district liens. To date, many, but not all states, municipalities, and counties have opted into the C-PACE program.

Program Parameters:

The following information summarizes the program.

Category	Parameter
Eligible Property Owners	Commercial property owners including office, multifamily, non-profit, warehouses, retail, manufacturing.
Improvement Types	Energy efficiency and renewable energy
Energy Efficiency Standards	Retrofit projects must have a Cost-Benefit Ratio greater than one to be approved for financing by EIC. New Construction projects must meet or exceed specific building standards, including LEED Gold, Energy Star, Passive House, NY Stretch Code, etc. to be approved for financing
Municipal Responsibilities	Processing of liens placed on improved properties

Recent program changes and improvements to remove municipal risks:

There have been notable changes to the C-PACE program in NY, including the following:

• Municipalities are no longer required to provide a financial backstop for any delinquent C-PACE payment
• Removed the cap on C-PACE financing amount based on property value
• New construction enabled for the program to improve new builds

Program benefits for municipalities, residents, and property owners:

• Helps stabilize tax base for the municipality, because energy-saving improvements will increase property values, making property owners more inclined to keep their businesses in town rather than move to less costlier  communities
• Provides attractive financing for economic development that a municipality can use to attract new businesses,  including multi-family property developers
• Reduces energy costs for property owners, enabling them to reinvest money into their businesses or  make multifamily properties look more attractive to tenants (i.e. improve common spaces)
• Helps reduce fossil fuel consumption and by extension reduce the municipality’s greenhouse gas emissions caused by commercial properties, one of the biggest contributors to the area’s carbon footprint
• No cost to local taxpayers, as the processing costs incurred from lien filings will be offset by fees paid to the municipality.

Nicholas Zuba is the Director of PACE Policy and Programs for CleanFund, a direct lender focused exclusively on the commercial property sector. Nicholas earned his Master of Public Administration degree from Cornell University in 2015, focusing on environmental sustainability program design and management. He earned his Bachelor of Arts degree in Political Science from Ithaca College in 2006. He can be reached at nzuba25@live.com.