Commercial Property Assessed Clean Energy, or C-PACE for short, is a financing tool for improving commercial buildings with energy efficiency measures or renewable energy systems. Unlike conventional construction loans, C-PACE is designed to work specifically with the unique needs and barriers of financing building improvements, including longer loan terms, off-book debt, and repayment that transfers with sale of property just as does the savings generated by the building improvements. Debt associated with doing the improvements is repaid via a line item on local tax assessments.
Authorizing legislation was adopted into Alaska law in 2017 (AS 29.55.100) that allows local governments to create and manage C-PACE programs. Since then, Alaska Energy Authority (AEA) has been leading an ad hoc group of stakeholders, the Alaska C-PACE Advisory Group, which is working collaboratively to initiate programs in larger jurisdictions and figure out the logistics of a statewide program administrator. In January 2019, AEA was the recipient of a $300,000 competitive grant award from the U.S. Department of Energy that will provide critical administrative assistance for standing up C-PACE in Alaska. The primary outcome of this project will be functioning C-PACE programs in a minimum of three local governments in Alaska through the following deliverables:
The Alaska C-PACE Advisory Group is comprised of stakeholders representing building contractors, capital providers, commercial building owners, energy professionals, lenders, local governments, and non-profit organizations. Together we're working to design a financing tool that will save money for businesses in your region and drive investment in your community. For more information or to learn how to can become involved, please contact AEA’s Energy Funding Specialist Tom Benkert here.
There are abundant resources available on Commercial Property Assessed Clean Energy. The following is a small sample of things useful in considering how C-PACE might be set up in Alaska.