Senate Finance reviews bill to expand Vermont's PACE program to commercial properties

Senate Finance on Feb. 17 reviewed S.138, a bill that would expand Vermont's property assessed clean energy (PACE) framework to commercial and industrial buildings and create a separate CPACE subchapter to govern those projects.

Ellen Tchaikovsky of the Office of Legislative Council, presenting draft 3.1 (the Senate Natural Resources committee's committee amendment), said the bill's goal is to allow municipalities to submit to voters the question of designating a CPACE district and to permit private lenders to finance eligible renewable-energy, efficiency, or resilience upgrades that are repaid through a special assessment added to the property tax. "Currently in Vermont statute, we have something called a PACE program. It's property assessed clean energy projects," Tchaikovsky said, summarizing the existing residential model and the changes proposed for commercial properties.

Why it matters: the bill would create a different legal and financial structure for commercial projects than exists for residential PACE. Under the draft, municipalities would not themselves incur indebtedness for CPACE projects; instead, third-party lenders would provide financing and the municipality would collect assessments and remit payments. The bill also…