There have been a number of recent developments regarding C-PACE (Commercial Property Assessed Clean Energy) lending program in Virginia since our last post on this subject on March 2. First, the previously discussed bill authorizing the development of a statewide program ordinance and administrator to provide long-term financing for renewable energy, energy efficiency, and resiliency upgrades for commercial buildings was signed into law by the governor. The Department of Mines, Minerals and Energy has convened an ad hoc task force – on which I am serving – to advise the agency on the structure of the program and the RFP for program administration to follow. The expectation is that the statewide program will be up and running next year, providing an option for many local jurisdictions, both large and small, a streamlined opportunity to enable C-PACE.
In late May, the City of Richmond had proposed repealing their existing C-PACE ordinance, as the deadline for implementation built into the ordinance required the City to be up and running with C-PACE by July 1, however the City was not in a position to be up and running by that deadline. Through some political wrangling and some advocacy by a number of local supporters of C-PACE, the bill was dropped in favor of an amendment pushing back the implementation date to March 31, 2021. This allows the City to see if the statewide option will work for them, or implement their own administrative solution. See this RichmondBizSense article with more details.
In June, the City of Norfolk became the tenth Virginia locality to pass an ordinance enabling C-PACE. Norfolk is the first locality in the Hampton Roads region to enable C-PACE. The department of Economic Development has been charged with developing programs guidelines and implementing an administrator for program oversight. Click here for more details.
If you have questions about the C-PACE program or concept, or any issue related to commercial real estate,or renewable energy, contact me, or the commercial real estate lawyers and renewable energy attorneys at GreeneHurlocker.