How C-PACE Financing From Connecticut Green Bank Involves Major Stakeholders For Affordable Energy Upgrades?
PACE financing in Alberta is still in its developmental phase for both residential (R-PACE) and commercial (C-PACE), with a program availability announcement expected in early 2019 along with the official announcement that Energy Efficiency Alberta will be the PACE Administrator. PACE Alberta is publishing articles like the following to help Albertans better understand best practices and successful programs in the U.S. with the hope that these articles will help all Albertans prepare for and be ready to take full advantage of the PACE program when it is available in their municipality. Visit the PACE Alberta website to stay up to date.
Background: The Connecticut Green Bank (CGB) is the USA’s first green bank and offers many green programs, including delivering one of the most successful C-PACE programs in the country by working both as the PACE Administrator for the state and as the source of PACE financing capital. Connecticut currently only provides a C-PACE program which is applicable to all commercial properties (everything but single family homes). By excerpting from a CGB publication and adapting the content to Alberta, the article, which outlines who the various Connecticut Green Bank major stakeholders are and the role they play, can thus be of benefit to any building or property owner who wishes to pursue C-PACE financing when it becomes available in Alberta.
The CGB C-PACE Stakeholders and their Roles:
Building Owner – Building owners work with the Connecticut Green Bank (PACE Administrator) and trusted green energy experts to modernize their building and take control of their energy costs.
Connecticut Green Bank – acts as trusted advisor, administering the C-PACE program. They coordinate across a wide range of experts to help building owners confidently navigate the C-PACE process.
Contractor – acting as a building owner’s main point of contact, design and construct green energy projects and coordinate with other stakeholders to ensure that projects meet technical requirements and qualify for financing.
Municipality – Municipal officials promote C-PACE to help businesses in their municipality stay competitive and provide the necessary tax lien and tax collection service. Elected officials along with support drive their community’s participation in the program.
Technical advisor – PACE administrator and C-PACE contractors work with a technical advisor, who measures the ratio of energy savings to the cost of financing, to ensure that projects meet program requirements.
Mortgage Holder – Because a C-PACE assessment takes a senior position to a mortgage, mortgage holders must consent to a project being financed. As PACE administrator, the CGB helps lenders understand that buildings with green energy upgrades can be valuable assets in their portfolio.
Appraiser – The CGB relies on appraisers to determine a building’s value to ensure it meets underwriting criteria. Appraisers apply specialized skills to assess how completed green energy upgrades will increase property value.
Capital provider – Capital providers fund C-PACE projects and work with contractors, technical advisors and CGB to ensure that projects are safe and responsible investments. Often, the Green Bank will serve the role of capital provider in addition to administering the program.
What’s happening in Alberta?
PACE enabling legislation was enacted in June 2018. Based on the government's projections, a PACE program should be available for your municipality to opt into by early 2019. Until more details are available, we encourage you to visit the PACE Alberta website to stay up to date, show your support and express interest in becoming a potential PACE project, and ask your municipalities to show interest in PACE program.
References and Credit:
- PACE for Commercial Building Owners https://www.paceab.ca/commercial.pdf
- Connecticut Green Bank www.cpace.com/About-Us
- PACE Alberta Co-op www.paceab.ca
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