We previously provided information on this blog regarding the Garden State Commercial Property Assessed Clean Energy (C-PACE) program, which is poised to become a popular option for hospitals and other healthcare sector entities looking to rehabilitate facilities or adopt clean energy initiatives while seeking to avoid the upfront capital expenditures typically required for such projects. The program was established by the New Jersey Economic Development Authority (EDA) as a mechanism to finance commercial renewable energy projects, energy efficiency initiatives, electric vehicle charging stations, microgrids, power purchase agreements, and water efficiency and other authorized improvement projects.

Greenbaum attorney Maura E. Blau has just published this new update providing details on the EDA’s updated program guidelines (issued on May 29, 2024) and draft supplemental guidelines, which once finalized would expand the C-PACE program to include not only retrofits, but also new construction projects, gut rehabilitation and refinancing. In addition, changes to the draft program guidelines include the addition of water conservation, flood resistant construction, and microgrids as C-PACE eligible improvement categories.