Environment & Energy committee reviews bill to create commercial PACE districts

At a meeting of the Environment & Energy committee, staff walked members through draft legislation to create a commercial Property Assessed Clean Energy program, or CPACE, that would let a municipal legislative body designate an entire municipality as a CPACE district and allow participating commercial property owners to secure private financing repaid through a special assessment on the property tax bill.

The bill text read by staff explains that, "Upon a vote ... the municipality shall allow for the imposition of a special assessment to secure private financing for property owners for projects relating to renewable energy" and that owners may enter into written agreements with the municipality only after an affirmative vote and after required analyses are completed. The draft defines "commercial or industrial building" as any building other than a residential dwelling with fewer than five units, explicitly allowing multi‑unit properties with five or more units to enroll.

Why it matters: CPACE programs are designed to stretch repayment terms and link financing to property tax bills so energy upgrades that may not pencil out on short commercial loans become financially viable. Committee members focused on the legal and market mechanics that would make the program workable in…