From JdSupra
What You Need to Know
- The New Jersey Economic Development Authority (EDA) has established the C-PACE program to facilitate the financing by authorized municipalities of eligible commercial renewable energy, water efficiency and other authorized projects throughout the state.
- C-PACE financing can be used to address a variety of costs related to the development of eligible projects.
- The C-PACE program will become operational following the issuance of program guidance and opt-in applications by the EDA, which is expected within the next few months.
The Garden State Commercial Property Assessed Clean Energy (C-PACE) financing program was established as a mechanism to finance commercial renewal energy projects, as well as water efficiency and other authorized improvements where “capital providers” pay the up-front costs of the project and are then repaid through a real property assessment levied by the participating municipality.
As part of his administration’s ongoing commitment to address climate change, in August 2021, New Jersey Governor Phil Murphy signed legislation (A-2374) requiring the New Jersey Economic Development Authority (EDA) to establish the C-PACE program to facilitate the financing of eligible projects in municipalities that adopt an opt-in ordinance.
A C-PACE project is defined in the legislation as including:
- The “acquisition, construction, installation, or modification, or, in the discretion of the authority and in accordance with guidelines adopted by the authority, entry into a capital lease of an energy efficiency improvement or renewable energy system, including … electric vehicle charging infrastructure, flood resistant construction improvement, or hurricane resistant construction improvement”;
- A microgrid or district heating and cooling system in which a property owner within the municipality participates for the duration of the C-PACE assessment; or
- A power purchase agreement (PPA) with respect to a renewable energy system affixed to a property.
