State-by-State

C-Pace State-by-State - Penthouse View

C-PACE Alliance – State-by-State

Virginia (updated February 2019)

Context: Virginia enacted a revised C-PACE statute in 2015. Only Arlington County has implemented an active program.

Opportunity: Several localities are making progress in developing local programs.

Progress to Date:

  • Capital Providers sent a unified letter of support for C-PACE programs to officials in Loudoun County and Fairfax County.
  • In December 2018, Fairfax County staff asked CPA to convene a stakeholder group to comment on the County’s draft ordinance. The comments were submitted in January, and within weeks, staff commended the “highly professional” comment letter and accepted all suggestions. The Board of Supervisors has set a public hearing in March.
  • Loudoun County staff prepared a draft C-PACE ordinance and presented it for public hearing on January 9, 2019. CPA testified in support. The Board approved the ordinance in February, 2019.
  • In November 2018, Fredericksburg City Council approved Council members approved C–PACE ordinance with input from CPA member, Hirschler Law Firm.

Next:

  • Fairfax County and Loudoun County are drafting RFPs to select a Program Administrator, which will then develop a Program Manual.
  • Fredericksburg City is considering whether to engage a consultant to assist in designing its program.

Pennsylvania (updated February 2019)

Context:  In June 2018, Governor Wolff signed C-PACE legislation.

Opportunity:  The Sustainable Energy Fund (SEF) offered to serve as a Program Administrator and to develop a C-PACE program that localities could adopt (outside of Philadelphia). The Philadelphia Energy Authority (PEA) is collaborating with SEF to develop a similar program for the City of Philadelphia.

Progress to Date:

  • Pennsylvania legislation is consistent with the CPA’s white paper on well-designed programs.
  • SEF engaged Abacus Property Solutions (and CPA as a subcontractor) as subject-matter consultants. Key items for consideration included how to set an energy performance baseline; how to determine energy savings; eligibility of new construction; and retroactive refinancing of projects using C-PACE.
  • CPA attended stakeholder conversations in Philadelphia and Harrisburg.
  • In December 2018, the Abacus-CPA consulting team submitted materials to SEF for their final decision-making.

Next Steps:

  • SEF will finalize Program Guidelines in 1Q 2018, and will then propose the program to interested localities for their adoption.
  • PEA will finalize its version of Program Guidelines and obtain approval from Philadelphia City Council.

New York City (updated February 2019)

Context: New York City does not currently participate in the statewide C-PACE program offered by Energize NY.

Opportunity: In December 2018, NYC Councilmember Constantinides and Speaker Johnson introduced PACE authorizing legislation.

Progress to Date:

  • CPA submitted its best practices paper, Elements of a Well-Designed C-PACE Statute and Program.  Staff commented:

“It’s very helpful to have things described and broken out in an organized manner like this… Please know that we took to heart a number of these points based on previous conversations with you and your partners and are trying to incorporate many of these recommendations…”

  • The City policymakers have planned for implementation and the selection of a Program Administrator.  CPA commends the City for following the course described in the white paper, C-PACE Legislation Passed…. So What’s the Path to Implementation?
  • CPA testified in support of the C-PACE bill. No witnesses opposed the bill.
  • The Mayor and City Council would like to enact C-PACE together with a more complicated bill that requires commercial building owners to significantly reduce energy consumption. The two bills will not advance until negotiations on the energy performance standards are resolved.

New York State (updated February 2019)

Context: As a result of relatively high fees to property owners, as well as legal hurdles that prevent a capital provider from directly enforcing its tax lien, the New York State program has under-performed expectations.

Opportunity: In late 2017, Energize NY, the state program administrator, invited input from capital providers.

Progress to Date:

  • The capital providers submitted the best practices paper, Elements of a Well-Designed C-PACE Statute and Program.
  • Energize NY invited CPA onto its Advisory Committee.
  • Energize NY staff overhauled the program to open access for all capital providers and to reduce fees. Staff continues to search for solutions to the problem of tax assessment enforcement.
  • NYSERDA published guidance on: contents of the energy audit; certification of energy auditors; reporting & verification.
  • CPA member firms provided input on form documents.

Next:

  • Energize NY is actively working with capital providers on a pipeline of transactions. As projects come forward, Energize NY will work with localities to adopt amendments to ordinances as needed.

Illinois (updated February 2019)

Context: The Governor signed technical fixes to the C-PACE statute in August 2018.

Opportunity: In late 2017, capital providers contacted the local advocates and the Illinois Finance Authority (IFA) to form a coordinated effort.

Progress to Date:

  • IFA will serve as a statewide conduit bond issuer. IFA developed form documents that are available to any locality that adopts a C-PACE program.
  • Kane County and DuPage County selected the Illinois Energy Conservation Authority, formed by CPA member-firms, as Program Administrator. Materials have been prepared by IECA pending each county’s decision-making.
  • The City of Chicago selected as Program Administrator a joint venture between CPA member Counterpointe and Loop Capital. Materials are in final stages of development.

Next Steps:

  • Kane County and DuPage County are expected to rollout active programs in early 2Q 2019.
  • Cook County will publish an RFP for Program Administrator in the 1Q 2019.

Washington (updated February 2019)

Context: Washington had not previously advanced any C-PACE bills due to misconceptions that the program relied on public credit.

Opportunity:  In 2018, a stakeholder group obtained legal advice that resolved this misunderstanding.

Progress to Date:

  • Drawing on CPA’s best practices paper, Elements of a Well-Designed C-PACE Statute and Program, the group met with numerous state and local officials to garner their support for a program.
  • With technical assistance from CPA and member-firm CleanFund, the bill pending in the legislature would authorize localities and the state Department of Commerce to develop a program.

Next Steps:

  • Authorizing legislation did not reach the floor for a full vote in 2019 session, but is well-positioned for 2020.

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