The Governor’s Office of Energy Development (OED) has launched the Utah C-PACE District and Provo is the first city to opt into the commercial building energy financing program. Commercial Property Assessed Clean Energy (C-PACE) is a financing structure in which building owners borrow money for energy-efficient and renewable energy projects and make repayment through an assessment on their property tax bill. The financing arrangement remains with the property even if it is sold.
C-PACE financing is funded by private investors, but is only available in jurisdictions created by legislation and designated by agencies such as OED. This requirement was fulfilled by the OED declaration of the Utah C-PACE District.
C-PACE provides zero down and up to 100 percent private financing for up to 30 years for commercial building improvements. Improvements can include energy- efficiency upgrades, renewable energy systems, water conservation measures, seismic upgrades, hybrid elevators and escalators, electric vehicle infrastructure and parking automation.
“We’re proud to advance Utah’s economy and air quality through the Utah C-PACE District, allowing building owners to achieve affordable energy costs while making important upgrades,” said Laura Nelson, Gov. Gary Herbert’s energy advisor. “With the energy savings from the improvements, it’s possible for building owners to be cash flow positive from Day One.”
Provo will be joining the Utah C-PACE District in May and additional cities are pending. Once a city or county opts into the program, commercial building owners can work with the C-PACE District to access new templates and tools to implement their projects.
“Opting into the C-PACE District was the best option for Provo. We want to see building improvements, economic development and fewer emissions, but don’t want to take on the burden of building our own program. We are in the process of opting in now and look forward to realizing C-PACE benefits throughout our city,” said Provo Councilman David Sewell, “By joining the district, local cities and counties can enjoy the benefits of C-PACE financing without committing staff resources.”