The Unitarian Universalist Congregation of Fairfax wants to finance upgrades to its sprawling, 1960s-era HVAC system. If all the pieces click into place, a Fairfax County church would be the first Virginia property statewide to tap into an initiative designed to quicken affordable upgrades to greener energy.
Read More (Energy News Network)
Fairfax County’s C-PACE program gives commercial building owners an avenue for obtaining private funding to support capital improvement projects intended to save energy or water, or to make their property more resilient to climate-related threats.
Managed by the county and administered by the Virginia PACE Authority, the program offers building owners access typically long-term loans so they can make substantial improvements to older buildings or add sustainable technology to new buildings at little to no upfront cost.
Read More (Fairfax Times)
Today, the Commercial Property Assessed Clean Energy (C-PACE) Alliance industry coalition spotlighted the new programs authorized in New York, Illinois, Pennsylvania, Virginia, and Massachusetts.
Read More (Environment and Energy Leader)
Richmond property owners rehabbing or developing commercial properties soon will have a new financial incentive to include clean energy and water efficiency upgrades in their projects.
City Council last week adopted Richmond’s first C-PACE program, formally called a Commercial Property Assessed Clean Energy Financing Program. It allows property owners to pursue 30-year loans to help finance clean energy improvements for both existing buildings and new construction.
Read More (Richmond BizSense)
The state’s property assessed clean energy law requires local governments to pass ordinances to establish the program.
Read More (Energy News Network)
“Virginia is one of 36 states, plus the District of Columbia, to pass PACE-enabling legislation.”
“The catch is that local governments in Virginia are tasked with crafting an ordinance to establish PACE in their jurisdictions. And that has led to delays.”
Read More (Energy news)
City Council will decide on Wednesday, May 1 whether to reserve funds for a “green” building program, which would enable private lenders to collect debts via the city government’s taxing power.
Proponents say the program — dubbed Commercial Property Assessed Clean Energy (C-PACE) — would enable building owners to invest in eco-friendlier building upgrades, like HVAC systems and roofs. They think such upgrades could yield a relatively big positive environmental impact, since buildings are major greenhouse gas emitters.
With C-PACE, eligible debt attaches to the building, which passes to the new owner if the building is sold. It’s repaid through a special assessment on the property, as a tax bill addition.
“This can address a key disincentive to investing in energy improvements because many property owners are hesitant … if they think they may not stay in the property long enough for the resulting savings to cover the upfront costs,” according to the Department of Energy.
With zero-down and long repayment terms, C-PACE may enables owners to finance upgrades for which they might otherwise lack sufficient cash.
“The annual energy savings for a PACE project usually exceeds the annual assessment payment, so property owners are cash flow positive immediately,” according to the C-PACE Alliance, a coalition of firms. “[Net new revenue] can be spent on other capital projects, budgetary expenses, or business expansion.”
The Ivy Knoll Caring Senior Community in Covington, Ky. illustrates the benefits, says Jessica Greene of the Virginia Energy Efficiency Council. With a $750,000 C-PACE loan, Ivy Knoll installed, among other things, heating and cooling controls that reduce energy costs by some 20 percent.
Read more (Alexandria Gazette Packet)
Albemarle County’s goal is to reduce overall community greenhouse gas emissions by 45 percent by 2030 and reach net zero by 2050.
County staff is recommending the goal as part of the first phase of the Climate Action Plan process, and the goal is consistent with the latest recommendations of the International Panel on Climate Change.
“It’s not just a goal for county operations; this is a goal for the entire community included within the jurisdictional boundary of Albemarle County,” said Narissa Turner, the county’s climate programs coordinator.
Read More (Daily Progress)
VAEEC member, the Northern Virginia Regional Commission (NVRC), has put together an interactive dashboard of all LEED certified buildings in Virginia. These buildings represent a significant investment in resiliency and sustainability. Programs like PACE (Property Assessed Clean Energy) are an important financial tool to provide options to a building owner considering some level of LEED certification.
Read More (NVRC)
(Electricity Markets and Policy Group, Berkeley Lab)
Nonresidential buildings are responsible for over a quarter of primary energy consumption in the United States. Efficiency improvements in these buildings could result in significant energy and utility bill savings. To unlock those potential savings, a number of market barriers to energy efficiency must be addressed.
Commercial Property Assessed Clean Energy (C-PACE) financing programs can help overcome several of these barriers with minimal investment from state and local governments. With programs established or under development in 22 states, and at least $521 million in investments so far, other state and local governments are interested in bringing the benefits of C-PACE to their jurisdictions.
Lessons in Commercial PACE Leadership: The Path from Legislation to Launch, aims to fast track the set-up of C-PACE programs for state and local governments by capturing the lessons learned from leaders. The report examines the list of potential program design options and important decision points in setting up a C-PACE program, tradeoffs for available options, and experiences of stakeholders that have gone through (or are going through) the process.
C-PACE uses a voluntary special property assessment to facilitate energy and other improvements in commercial buildings. For example:
- Long financing terms under C-PACE can produce cash flow-positive projects to help overcome a focus on short paybacks.
- Payment obligations can transfer to subsequent owners, mitigating concern about investing in improvements for a building that may be sold before the return on the investment is fully realized.
- 100% of both hard and soft costs can be financed.
Read the full report.