Commercial Property Assessed Clean Energy (C-PACE)

To support more energy efficiency in commercial buildings, in 2017 REAP’s advocacy was instrumental in passing legislation that authorized municipalities across Alaska to set up Property Assessed Clean Energy (PACE) programs to finance energy improvements on commercial buildings. Under a C-PACE program, commercial building owners are able to borrow money from their local property taxing authority (usually a municipality) and then pay the municipality back through a special, voluntary tax assessment on the building. This type of financing tool attaches the debt to the property, not the building owner that borrows the money. Loans are structured to give borrowers more time to repay the loan than a typical commercial loan would, allowing the annual energy savings from the energy efficiency improvements to exceed the special tax assessment payments. Since 2017, REAP has been working with the Alaska Energy Authority, municipalities and PACE experts from around the country to develop a model PACE program that any municipal assembly in the state can adopt.