Council hears CPACE briefing; staff to place participation agreement on next agenda

Bluffdale council members received an informational briefing on Commercial Property Assessed Clean Energy (CPACE) financing from Thidi Chapelle of Sustainable Real Estate Solutions (SRS).

Chapelle described CPACE as a state-enabled, voluntary financing program that allows commercial property owners to fund energy-efficiency, water-conservation, EV charging and seismic upgrades through a voluntary assessment placed on the property. He said CPACE loans are typically underwritten based on building performance rather than owner credit, are non-recourse to the owner in many cases, permit long fixed terms (statute allows up to 30 years in Utah), and include an administration fee paid at closing (noted as roughly 3% in the presentation).

Chapelle explained SRS’s role as a third-party administrator that assists jurisdictions by managing technical reviews, eligibility validation, and statutory documentation and by coordinating with property owners and capital providers. He told the council the program is opt-in at the city level and recommended that the council place an SRS participation agreement on a future council agenda so staff can finalize administrative arrangements if the city elects to opt in.

Council members asked about program risks, who the capital providers are, whether the city would incur costs (Chapelle said there is no cost to the city beyond staff time), and how eligibility and compliance are enforced (SRS conducts technical reviews and provides a report for the city and lender). Council agreed to place the agreement on the next meeting agenda for consideration.