Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Clean Energy Finance topic
No spam. Unsubscribe anytime.
Salem council asks staff to explore establishing CPACE program to finance energy, seismic and water upgrades
Summary
Council voted unanimously to direct staff to study whether the city should opt into a Commercial Property Assessed Clean Energy (CPACE) program, a lien-based financing product that enables long-term financing for energy efficiency, renewable energy, water and seismic improvements on commercial and multifamily properties.
The Salem City Council unanimously authorized staff Monday to explore implementing a Commercial Property Assessed Clean Energy (CPACE) program in Salem, a financing mechanism that attaches a long-term assessment lien to a property to fund energy, water, seismic and other qualifying improvements.
Dana DeKline, assistant director of urban development, explained the program structure: CPACE allows private lenders to fund eligible improvements and secure repayment through a municipal special assessment lien recorded against the property. Because the lien can match the useful life of improvements (commonly 25 to 30 years), CPACE can reduce the annual cost of capital for projects such as solar installations, envelope upgrades, EV charging and seismic retrofits.
DeKline said the Oregon Legislature authorized local governments to adopt CPACE in 2015 (OR S 223.680). She noted Multnomah County and Prosper Portland have administered a long-running CPACE program and that other Oregon jurisdictions including Washington County and the city of Corvallis have adopted similar programs. Salem staff will evaluate program design, staffing needs and fee structures to ensure program costs are covered and to address foreclosure and lien-priority questions.
Councilors asked practical questions about eligibility and benefits: CPACE typically covers industrial, commercial, institutional and multifamily (five-plus units) properties; it does not cover single-family homes. DeKline said the program can make projects more financially viable by stretching repayment over the life of the upgrade and by allowing lenders to offer lower-cost capital for eligible work. She said fees vary by jurisdiction; Multnomah County charges about 2% of the loan while some programs levy a fixed minimum fee.
Councilor Gwynn, who pulled the item for comment, said she wanted the council to understand program implications before deciding whether to opt in. Staff said next steps would include outreach with local lenders, Energy Trust and potential partners and a legal review to draft an ordinance if council wants to proceed.
Vote: motion to authorize staff to explore and recommend a CPACE program passed by roll call (Aye: Teigen, Nishioka, Matthews, Gwynn, Brown, Vang, Nordyke; Mayor Hoy absent).
