State-by-State

C-Pace State-by-State - Penthouse View

C-PACE Alliance – State-by-State

Virginia (Updated October 2019)

Context: Virginia enacted a revised C-PACE statute in 2015. Program rules are likely to vary by county.

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

Progress to Date:

Virginia PACE Authority

  • Participated in a private-sector organizing group for VPA, a nonprofit Program Administrator with a goal of operating an open-market, low-cost C-PACE program.
  • CPA members contributed seed grants to fund the development of standard legal documentation (Mar 2018).

Loudoun County

  • CPA sent a unified letter of support for C-PACE programs (Dec 2017).
  • Provided substantial information on program options (Fall 2018).
  • Testified in support of C-PACE programs. The Loudoun Supervisors approved the ordinance in Feb 2019.
  • VPA selected as Program Administrator (Jun 2019) and guidelines published (Oct 2019).

Fairfax County

  • Panelist at C-PACE presentation in County offices.
  • Presented to Environmental Quality Advisory Committee (May 2018).
  • Staff requested that CPA chair a stakeholder group to comment on the County’s draft ordinance. The staff commended the “highly professional” comment letter and accepted all suggestions (Jan 2019).
  • Testified in support of C-PACE programs (Mar 2019).
  • VPA applies as Program Administrator (Aug 2019).

Fredricksburg

  • City Council approved C–PACE ordinance with input from CPA member Hirschler law firm (Nov 2018).

Petersburg

  • Virginia PACE Authority selected as Program Administrator.

Next:

  • Fairfax County considering its selection of a Program Administrator to develop guidelines.
  • Fredericksburg City is considering engaging a consultant to assist in designing its program.

Pennsylvania (updated October 2019)

Context: Governor Wolff signed C-PACE legislation in Jun 2018.

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:

  • Pennsylvania legislation is consistent with the CPA’s white paper on well-designed programs.

Pennsylvania Outside of Philadelphia

  • Attended stakeholder roundtable in Harrisburg in Oct 2018.
  • SEF engaged Abacus Property Solutions, with CPA as a subcontractor, as subject-matter consultants in Oct 2018.
  • Abacus submits recommendations in Dec 2018 on: energy performance baseline; minimum energy savings; eligibility of new construction; and refinancing of projects.
  • SEF guidelines published (Spring 2019).
  • As of Oct 2019, five counties have adopted the SEF program (Allegheny, Chester, Northampton, Philadelphia, Wayne Counties.

Philadelphia

  • Participated in stakeholder meeting (Jul 2018).
  • Provided technical input on servicing of C-PACE financings.
  • Mayor signed C-PACE ordinance (Aug 2019).

Next Steps:

  • SEF actively working with 6 other counties that may vote on C-PACE before end of year.
  • PEA will finalize Program Guidelines in Oct 2019.

New York City (updated October 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…”

  • Testified in support of a C-PACE program (Dec 2018).
  • City Council approved the Climate Mobilization Act, including C-PACE in May 2019. The legislation requires buildings over 25,000 SF to reduce greenhouse gas emissions by 40% by 2030 and 80% by 2050, as compared to the emission levels in 2005.
  • Invited to join NYC PACE Advisory Group (April 2019).
  • NYCEEC named as Program Administrator.
  • CPA member firms provide technical comments on whether C-PACE assessments may participate in the NYC tax lien securitization program (summer 2019).

Next Steps:

  • NYCEEC plans on issuing guidelines by end of year.

New York State (updated October 2019)

Context: The New York State program underperformed due to relatively high fees and questions about the enforcement of C-PACE assessments.

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

Progress to Date:

  • The capital providers submitted the best practices paper, Elements of a Well-Designed C-PACE Statute and Program.
  • Offered design comparisons to other C-PACE programs.
  • Organized calls among legal counsel from CPA members and Energize NY.
  • EIC introduced “Open PACE,” a more traditional C-PACE product.
  • Invited by Energize NY to serve on its C-PACE Advisory Committee (May 2018).
  • NYSERDA published guidance on contents of the energy audit, the credentials of energy auditors, and the reporting & verification requirements. (June 2018).
  • CPA member firms provided input on the form legal documents (2019).
  • NY bill to authorize new construction does not receive legislative floor time (Jun 2019).

Next Steps:

  • Energize NY is actively working on a pipeline of transactions. Energize NY will work with localities to adopt amendments to ordinances as needed.
  • Energize NY will rollout marketing & education. CPA members will complement with their own efforts.
  • Energize NY expects a bill to be introduced to authorize the C-PACE financing for new construction projects.

Illinois (updated October 2019)

Context: Governor Rauner signed revisions to the C-PACE statute in Aug 2017 and Aug 2018. The statute limits C-PACE financing to bonds-only. Program guidelines vary from county-to-county.

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:

  • IFA stepped forward to serve as the statewide conduit bond issuer. IFA developed template bond documents that are available to any locality that adopts a C-PACE program.
  • The Illinois Energy Conservation Authority (IECA) was formed by CPA member-firm Inland Green Capital as a nonprofit Program Administrator with an open-market philosophy.
  • Kane County and DuPage County selected IECA as their local Program Administrator (Spring 2019). Both programs are now active.
  • The City of Chicago selected a joint venture between CPA member Counterpointe and Loop Capital as Program Administrator (1Q 2019).
  • Cook County published its RFP for Program Administrator (July 2019). CPA member firms submitted applications in response.

Next Steps:

  • Chicago is developing form documents that are expected to be final by end-of-year.
  • Cook County considering its selection for Program Administrator.
  • Stakeholders are evaluating whether the state’s Prevailing Wage Act applies to C-PACE financings.

Washington (updated October 2019)

Context: Washington had not previously enacted a C-PACE program 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, stakeholders met with state and local officials to garner their support.
  • CPA and member CleanFund spoke to tax assessors to explain C-PACE financing.
  • Legislators propose a bill to authorize localities and the state Department of Commerce to develop a statewide program (Feb 2019).
  • The C-PACE authorizing legislation was approved in committee, but did not receive a floor vote (Jun 2019).

Next Steps:

  • Stakeholders will reconvene to advocate for the bill this coming legislative session.

Hawaii (updated October 2019)

Context: The City Council of Honolulu requested a C-PACE program feasibility study from the Honolulu Office of Climate Change, Sustainability and Resiliency (OCCSR) to be submitted 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 members Bricker & Eckler and CleanFund offered pro bono assistance.
  • Submitted draft report (Oct 2019) addressing the following issues:
    1.  Honolulu Market Data
    2. Overview of the Design and Implementation of C-PACE
    3. Responses to Questions (Legal, Operational, Programmatic, Financial / Market)
    4. Open Policy Issues
    5. Amendments to Honolulu Ordinance

Next Steps:

  • Await feedback and further interviews with Honolulu officials.

Massachusetts (updated October 2019)

Context: Massachusetts’ C-PACE statute required technical amendments to activate its program.

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:

  • Organized a discussion of enforcement procedures that included CPA members, MassDevelopment, and outside counsel (Aug 2019).
  • Discussed with legislative staff the white paper on CPA industry best practices.
  • Governor signed technical amendments to the statute in Aug 2019.
  • MassDevelopment invited comments from CPA members on the draft guidelines (Sep 2019).

Next Steps:

  • MassDevelopment will publish final guidelines before end of year.

New Jersey (updated October 2019)

Context: New Jersey’s C-PACE statute is not functional due to an outdated requirement for municipal bond financing.

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

Progress to Date:

  • The State Senate approved revised C-PACE legislation in Jun 2019, but the bill did not receive a General Assembly vote.
  • The current proposal requires clarification: NJEDA is responsible for oversight and rulemaking of the program, however the bill appears to allow municipalities, counties, county improvement authorities, and program administrators to operate different programs if they conform to the program structure created by the NJEDA.
  • Provided comments for a consolidated list of questions (Aug 2019).

Next Steps:

  • Work with stakeholders on the structure of the C-PACE program.

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