Virginia creates statewide program for localities to spur capital investments in commercial buildings for energy improvements – January 12 workshop for interested counties

January 7, 2022

In December of 2021 the Virginia Department of Energy (Virginia Energy) announced the selection of the Virginia PACE Authority (VPA) to design and administer a statewide program for participating localities known as Commercial Property Assessed Energy (C-PACE). C-PACE is a voluntary program where loans are provided by private lenders to building owners wishing to improve the energy efficiency of their assets. C-PACE does not require a local government to issue bonds or add debt.  Benefits to local governments include creating high-wage jobs, community revitalization, and retaining and attracting businesses.

Commercial Property Assessed Clean Energy, or C-PACE, is voluntary for building owners, and loans are provided by private capital providers and lenders–so starting a C-PACE program does not require a local government to issue bonds or add debt.

To start a program, counties must pass an enabling ordinance, as established in 2015 by Virginia State Code (§15.2–958.3). The C-PACE loan security is established through a special assessment lien on the property.  The property owner repays the special assessment on the property tax bill.  Most of the day-to-day operations of a C-PACE program can be undertaken by the new statewide authority.

Virginia Energy and VPA will be conducting an online workshop on January 12 from 11 am – 1 pm focused for stakeholders (including interested counties) focused on the legal considerations of the program (such as program documents, local ordinance drafting, and program agreements used for each C-PACE loan. See this flyer for more information, and you can register here.

Topic Tags: County Connections, Energy

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