On January 14, 2024, the New Hampshire Legislature introduced Senate Bill 4, aimed at reforming the state's Commercial Property Assessed Clean Energy (C-PACE) financing program. The bill seeks to enhance access to financing for energy efficiency and renewable energy improvements in commercial properties while addressing concerns related to foreclosure and lienholder agreements.

The primary purpose of Senate Bill 4 is to ensure that municipal liens for C-PACE assessments are not extinguished in the event of a foreclosure or sheriff's sale. This provision aims to protect property owners who enter into financing agreements for energy improvements, allowing them to maintain their financial commitments even during foreclosure proceedings. Additionally, the bill stipulates that any acceleration of payments due to entering a financing agreement for assessments is unenforceable, although mortgage holders can adjust escrow amounts to cover these assessments.

Key provisions of the bill include a revised application and review process for C-PACE financing, which mandates that applicants demonstrate public benefits such as energy conservation, reduced public health costs, and improved resilience against climate impacts. The bill also sets a cap on financing amounts, limiting them to 35% of the appraised property value or the actual costs of improvements, ensuring that financing remains manageable for property owners.

Debate surrounding Senate Bill 4 has focused on its implications for property owners and lenders. Supporters argue that the bill will encourage investment in energy efficiency and renewable energy, ultimately benefiting the environment and local economies. Critics, however, express concerns about the potential risks to lenders and the implications for property values if assessments are not adequately managed.

The economic implications of Senate Bill 4 could be significant, as it aims to stimulate investment in clean energy projects, potentially creating jobs and reducing energy costs for businesses. Socially, the bill could enhance public health by promoting energy-efficient buildings and reducing greenhouse gas emissions.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and its potential impact on New Hampshire's commercial property landscape. If passed, Senate Bill 4 could reshape the financing landscape for energy improvements, making it easier for property owners to invest in sustainable practices while safeguarding their financial interests.