Commercial Property Assessed Clean Energy, or C-PACE for short, is a financing tool for improving commercial buildings with energy efficiency measures or renewable energy systems. Unlike conventional construction loans, C-PACE is designed to work specifically with the unique needs and barriers of financing building improvements, including longer loan terms, off-book debt, and repayment that transfers with sale of property just as does the savings generated by the building improvements. Debt associated with doing the improvements is repaid via a line item on local tax assessments.
Authorizing legislation was adopted into Alaska law in 2017 (AS 29.55.100) that allows local governments to create and manage C-PACE programs. Since then, Alaska Energy Authority (AEA) has been leading an ad hoc group of stakeholders, the Alaska C-PACE Advisory Group, which is working collaboratively to initiate programs in larger jurisdictions and figure out the logistics of a statewide program administrator. In January 2019, AEA was the recipient of a $300,000 competitive grant award from the U.S. Department of Energy that will provide critical administrative assistance for standing up C-PACE in Alaska. The primary outcome of this project will be functioning C-PACE programs in a minimum of three local governments in Alaska through the following deliverables:
The Alaska C-PACE Advisory Group is open to anyone interested in helping implement C-PACE. Current participants include local governments, state entities, lending institutions, non-profits, utilities and private businesses.
There are abundant resources available on Commercial Property Assessed Clean Energy. The following is a small sample of things useful in considering how C-PACE might be set up in Alaska.