Search results for: C-Pace

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.

In earlier blog posts from April 26, 2023 and August 23, 2022, we have provided information regarding the Garden State Commercial Property Assessed Clean Energy (C-PACE) program, 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.

The C-PACE program is expected to be 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.

This just-published Client Alert by Greenbaum attorney Maura E. Blau provides an update on the process by which the program will become operational, including the EDA’s August 21, 2023, deadline for accepting public comments.

As we advised in a previous post on this blog, the Garden State Commercial Property Assessed Clean Energy (C-PACE) program was established by the New Jersey Economic Development Authority (EDA) as a mechanism to finance, among other things, commercial renewable energy projects, energy efficiency initiatives, electric vehicle charging stations, microgrids, power purchase agreements, as well as water efficiency and other authorized improvements where “capital providers” pay the upfront costs of the project and are then repaid through a real property assessment levied by the participating municipality.

Under C-PACE preliminary draft guidelines posted by the EDA on its website on April 13, 2023, “eligible properties” are defined to include “schools, hospitals, institutions of higher education, or religious institutions” that otherwise meet the eligibility criteria. Accordingly, the C-PACE program is expected to be 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.

This Client Alert by Greenbaum attorney Maura E. Blau provides an overview of key definitions, application and eligibility criteria, fees and more as outlined in the EPA’s draft guidelines, on which public comment will be open through May 15, 2023.

The New Jersey Economic Development Authority (EDA) is expected to soon release regulations implementing the New Jersey Commercial Property Assessed Clean Energy (C-PACE) program, which will apply to commercial and institutional entities including hospitals and medical facilities.

Adopted on August 24, 2021, the C-PACE law establishes a mechanism to finance, among other things, commercial renewable energy projects, energy efficiency initiatives, electric vehicle charging stations, microgrids, power purchase agreements, as well as water efficiency and other authorized improvements where “capital providers” pay the upfront costs of the project and are then repaid through a real property assessment levied by the participating municipality.  Under the program, the municipality assigns to the capital provider the real property assessment through an assignment agreement. A capital provider is defined as including “an accredited investor or qualified institutional buyer” as defined in the applicable federal regulations, as well as commercial lending institutions.

The C-PACE program is expected to be a popular option for healthcare sector and other commercial and institutional properties looking to rehabilitate facilities or adopt clean energy initiatives while seeking to avoid the upfront capital expenditures typically required for such projects. The program will become available once the regulations are adopted and the EDA publishes various required form documents. While the regulations were originally expected to be introduced earlier this summer, they remain pending but are anticipated shortly.