Local Option - Commercial Property Assessed Capital Expenditure (C-PACE)

July 12, 2024

Summary

S.B. 802 of 2024 authorized the establishment of a statewide Commercial Property Assessed Capital Expenditure (C-PACE) program that local governments may voluntarily join. Eligible properties include commercial, industrial, agricultural, nonprofit, and multifamily residential properties with five or more dwelling units. The bill establishes the Economic Development Partnership of North Carolina as the statewide administrator for the program and assigns a variety of tasks to it:

Prepare a C-PACE toolkit, as described in S.B. 802, in consultation with stakeholders and local governments
Impose fees to offset the actual and reasonable costs of administering the C-PACE Program, including an application fee not to exceed $750, and a processing fee equal to 1% of the financed amount not to exceed $25,000
Establish the process for reviewing and evaluating applications
Accept and approve project applications for C-PACE financing

A local government seeking to participate in the C-PACE program must first adopt a resolution meeting the criteria detailed in S.B. 802. C-PACE liens must be inferior to all prior and subsequent State, local, and federal taxes or liens and superior to all other liens on the property from the date on which the notice of the C-PACE assessment is recorded.

The term of the C-PACE financing may not exceed the weighted average useful life of qualifying improvements, and the total amount of financing cannot exceed 35% of the value of the property. The exact financing agreement between the capital provider and the property owner will be negotiated by the parties, including all terms and conditions of repayment, interest, penalties, and prepayment conditions. Prior to entering into an assessment agreement, the property owner must submit to the statewide administrator a written statement, executed by each holder of a mortgage, deed of trust, or other lien on the property securing indebtedness, indicating their consent to the C-PACE assessment

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	North Carolina
Incentive Type:	PACE Financing
Web Site:
Administrator:
Start Date:
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Photovoltaics Fuel Cells using Non-Renewable Fuels Water Heaters Lighting Lighting Controls/Sensors Chillers Furnaces Boilers Heat pumps Air conditioners Combined Heat & Power Heat recovery Steam-system upgrades Energy Mgmt. Systems/Building Controls Caulking/Weather-stripping Duct/Air sealing Building Insulation Motor VFDs Processing and Manufacturing Equipment Agricultural Equipment Insulation Wind (Small) Fuel Cells using Renewable Fuels Commercial Cooking Equipment Reflective Roofs LED Lighting Tankless Water Heater Commercial Refrigeration Equipment Industrial Systems General Industrial System / Process Specific Building Systems HVAC Lithium-ion Level-2 Electric Vehicle Service Equipment Direct Current Fast Charging Equipment

Authorities

Name:	S.B. 802
Date Enacted:	07/08/2024
Effective Date:	07/01/2024

Contact

Name:	Public Information Officer
Organization:	Economic Development Partnership of NC
Address:	150 Fayetteville St. Suite 1200 Raleigh NC 27601
Phone:	(919) 447-7777

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.