C-Pace State-by-State - Penthouse View

C-PACE Alliance – State-by-State

Virginia (Updated December 2019)

Context: Through 2019, only Arlington County had implemented a C-PACE program, but no transactions have closed due to uncertainty about enforceability.

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

Progress to Date:

  • In 2018, CPA organized a unified letter of support for C-PACE programs.
  • Fairfax County: In December 2018, staff asked CPA to convene stakeholders to comment on the County’s draft ordinance. The staff commended the “highly professional” letter. Fairfax approved the C-PACE ordinance including all stakeholder suggestions. Fairfax selected the Virginia PACE Authority as Program Administrator in November 2019.
  • Loudoun County: CPA testified in support of C-PACE in January 2019. The ordinance was approved in February. Loudoun chose Virginia PACE Authority as Program Admin in August.
  • Virginia PACE Authority: CPs provided seed funding. VPA then raised $100,000 from a local foundation. VPA selected as Program Admin in Loudoun County and Fairfax County. In August, Petersburg signed VPA to the same arrangement.
  • Fredericksburg City Council approved C-PACE ordinance with input from CPA member Hirschler Law Firm in November 2018,.

Next Steps:

  • Other Virginia jurisdictions considering adopting C-PACE ordinances. Monitor RFPs for PAs.
  • Monitor legislation for a statewide program.

Pennsylvania (updated December 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 (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:

  • CPA attended stakeholder meetings in Philadelphia and Harrisburg.
  • Sustainable Energy Fund (SEF) SEF engaged Abacus Property Solutions, with CPA as a subcontractor, to consult on program design, guidelines and legal documents. SEF circulated Program Guidelines in 1Q 2019 with most of CPA’s recommendations. Through November 2019, the following counties have adopted a C-PACE ordinance with SEF as Program Administrator: Lawrence, Northampton, Chester, and Wayne County. Allegheny County adopted an ordinance and will issue an RFP for a program administrator.
  • Philadelphia Energy Authority (PEA) collaborated with SEF to develop a Philadelphia C-PACE program. In July 2019, the Mayor signed legislation consistent with CPA policy. In November 2019, PEA published program guidelines.

Next Steps:

  • SEF Near-term prospects: Lebanon, Lehigh, Center, and Montgomery County. Conversations continuing Beaver, Erie, Delaware, Bucks County.

New York City (updated December 2019)

Context: New York City does not participate in the statewide C-PACE program.

Opportunity: Mayor indicated support of PACE legislation, if it were paired with legislation requiring reductions in greenhouse gas emissions (late 2017). PACE legislation was introduced in Dec 2018.

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…”

  • CPA testified in support of C-PACE.
  • In April 2019, the Mayor and City Council enacted a C-PACE ordinance and simultaneously enacted legislation that requires commercial buildings to reduce energy consumption over time.
  • NYCEEC, the Program Administrator, invited CPA to serve on the advisory working group.

Next Steps:

  • The City and NYCEEC are working on: (a) how C-PACE liens will participate in the tax lien sale and securitization system, and (b) exemption from mortgage recordation tax.
  • NYCEEC will circulate program guidelines and the legal documents for comment. Timing unclear.

New York State (updated December 2019)

Context: New York State’s program underperformed due to high fees and legal hurdles in enforcement.

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

Progress to Date:

  • In 2017, the program administrator, Energize NY, invited input. The capital providers submitted the Elements of a Well-Designed C-PACE Statute and Program. CPA organized a call with Energize NY’s counsel to discuss how to enforce a C-PACE lien.
  • Energize NY invited CPA to join its Advisory Committee.
  • In 2019, Energize NY launched the “Open PACE” program, which open to all capital providers charges lower fees. CPA member firms provided input on legal documents and negotiated an enforcement mechanism for C-PACE assessments.
  • First transaction closed by CPA member Counterpointe (Suffolk County).

Next Steps:

  • Energize NY will work to adopt amendments to ordinances as needed.
  • Support legislation to authorize new construction.
  • Energize NY will rollout marketing & education in the fall.

Illinois (updated December 2019)

Context: As of 2017, the Illinois program was not functioning.

Opportunity: CPA contacted the local stakeholders and the Illinois Finance Authority (IFA) to encourage a coordinated effort to find a program administrator and to activate the program (late 2017).

Progress to Date:

  • The Governor signed technical fixes to the C-PACE statute in August 2018 and 2019. IFA documents are available to any locality.
  • Illinois Energy Conservation Authority (IECA): CPA member Inland Green Capital formed the IECA to provide open-market access for capital providers in Illinois jurisdictions.
  • City of Chicago: CPA member Counterpointe partnered with Loop Capital to win the RFP as Program Admin. First transaction closed November 2019.
  • DuPage County selected IECA as Program Administrator. First transactions closed in 3Q 2019.
  • Kane County selected IECA as Program Administrator. Kane County launched in June 2019. First transaction closed in November 2019.
  • Cook County published an RFP for program administrator in 1Q 2019. CPA brokered a proposal to advance funds to be recovered from program fees.

Next Steps:

  • Monitor the impact of prevailing wage requirement.

Washington (updated December 2019)

Context: Washington had not 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:

  • CPA and member CleanFund the group met with state and local officials to garner their support for a program. Drawing on CPA’s policy paper, Elements of a Well-Designed C-PACE Statute and Program, the bill would authorize localities and the Department of Commerce to develop a C-PACE program. The bill passed through committee but did not reach the floor this session.

Next Steps:

  • The coalition that supported C-PACE will continue its efforts next legislative session.

Hawaii (updated December 2019)

Context: In July 2019, Honolulu resolved to submit a C-PACE feasibility study in January 2020.

Opportunity: OCCSR invited the C-PACE Alliance to offer input and background information for the study (Aug 2019).

Progress to Date:

  • CPA organized interested capital providers and law firms. In October 2019, CPA submitted a memo to the Mayor’s Office of Resiliency with suggestions for consideration.

Next Steps:

  • Honolulu officials will write final report drawing on CPA input.

Massachusetts (updated December 2019)

Context: As of mid-2019, the Massachusetts statute was inoperative due to technical flaws

Opportunity: MassDevelopment developed the necessary bill language, but the technical amendments had not passed the state legislature in multiple attempts. In addition, many industry stakeholders had questions about the program’s mechanics, such as how local municipalities would handle enforcement.

Progress to Date:

  • CPA organized a call with MassDevelopment and CPA members to discuss enforcement process.
  • CPA submitted a letter of support for C-PACE.
  • The Governor signed legislation with technical fixes in July 2019.

Next Steps:

  • MassDevelopment will circulate legal documents for comment in 1Q 2020.

New Jersey (updated December 2019)

Context: As of 2019, New Jersey statute was inoperative due to flaws in its bond provisions. The Governor’s Office has taken an interest in passing legislation to activate C-PACE.

Opportunity: Stakeholders developed alternative proposals and worked with legislators to build political support.

Progress to Date:

  • In June 2019, the Senate passed legislation designating NJEDA as the program administrator. The revisions drew on CPA’s policy paper.
  • In November, CPA members proposed further changes consistent with its policy.

Next Steps:

  • Consider best way to communicate policy preferences.

CURRENTLY MONITORING (updated December 2019)

Oregon; Georgia; Michigan; Maine; Nevada; Delaware; N Carolina; Tennessee; Texas; Wisconsin.

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