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Commercial Property Assessed Clean Energy (C-PACE)

A Finance Initiative of the Efficiency Maine Green Bank

A C-PACE program allows commercial property owners to access financing to undertake energy efficiency and clean energy improvements on their buildings and repay the investment over time. Like other project financing, a C-PACE mechanism uses borrowed capital from a capital provider to pay for the upfront costs associated with energy efficiency or renewable energy improvements. Unlike other project financing, the borrowed capital is secured by a property tax assessment with an associated lien on the subject property. The security provided by the tax assessment results in several compelling features, including longer-term financing and transferability of the repayment obligations to subsequent owners of the property. In turn, C-PACE financing strengthens the business case for investment in longer payback and deeper building retrofits beyond what may be possible with traditional financing.

C-PACE in Maine

In 2021, the Legislature enacted L.D. 340, An Act to Allow for the Establishment of Commercial Property Assessed Clean Energy Programs (The “C-PACE Act”). The C-PACE Act authorizes Efficiency Maine Trust (the “Trust”), a third party contracted by the Trust, or a municipality that has adopted a C-PACE ordinance to establish a C-PACE program.

Efficiency Maine C-PACE

Program Development

In preparation for the launch of the C-PACE Program, the Efficiency Maine Green Bank researched program design options, reviewed materials from other jurisdictions, met with national experts, interviewed Maine-based stakeholders, and held a stakeholder workshop. It then undertook a formal rulemaking process, adopting a new administrative rule governing the implementation of its C-PACE Program. The rule enumerates underwriting standards, quality assurance provisions, and how the program will be administered, whether administered by the Trust (or its agent) or by a municipality. The Efficiency Maine Green Bank also developed a set of program guidelines to spell out the operational details of its C-PACE Program and provide additional detail. This resource and other supporting documents can be found below under Program Guidelines and Supporting Documents.

Before the C-PACE Program can begin accepting applications, the Efficiency Maine Green Bank must engage with interested municipalities and capital providers. It is currently working through that process and anticipates that C-PACE will be available in participating municipalities by the spring of 2023.

Program Participation

Project Applicants

The Efficiency Maine Green Bank is currently refining the C-PACE project application process and intends to make it live by the spring of 2023. In the meantime, any developers, contractors, and/or property owners interested in pursuing a C-PACE project can review the program documents below and reach out to their municipalities to inquire about the status of C-PACE ordinance development. A commercial property must be located in a participating municipality (see Municipalities section) in order to be eligible for C-PACE financing through the Efficiency Maine C-PACE Program.

Otherwise, to track program updates, please subscribe to Green Bank News and Updates list here on the Efficiency Maine website.

Municipalities

The C-PACE Act requires that municipalities wishing to participate in the C-PACE Program adopt a C-PACE ordinance in their jurisdiction. A municipality must also complete a C-PACE Municipality Participation Agreement with the Trust that establishes the Trust as the municipality’s C-PACE program administrator. A Maine municipality that adopts a C-PACE ordinance and executes a C-PACE Municipality Participation Agreement with the Trust is a “Participating Municipality.”

Municipalities interested in becoming participating municipalities in the C-PACE Program should:

  1. Review the C-PACE Program Guidelines and Supporting Documents
  2. Draft an ordinance (see Appendix B: Model C-PACE Ordinance)
  3. Execute a C-PACE Municipality Participation Agreement with the Trust (see Appendix C: C-PACE Municipality Participation Agreement)
Capital Providers

Capital providers wishing to participate in the C-PACE Program must submit an application. When a capital provider is approved it is considered a “Registered Capital Provider.” A list of Registered Capital Providers can be found here.

To track program updates, please subscribe to “Green Bank News and Updates” list here on the Trust’s website.

Program Guidelines and Supporting Documents

Contact

C-PACE@efficiencymaine.com or 866-376-2463