Denver now offers Commercial Property Assessed Clean Energy program
Denver City Council last night approved an ordinance to allow the offering of Colorado’s Commercial Property Assessed Clean Energy (C-PACE) program within the City and County of Denver. C-PACE offers finance options for commercial property clean energy projects on both new and rehab construction.
“Commercial building operations account for the majority of our city’s greenhouse gas emissions, so we’re thrilled to offer a new tool that will not only reduce our carbon footprint, but save property owners money,” Denver Mayor Michael B. Hancock said. “Sustainable development is smart development, and we’re now better positioned to encourage a built environment that leads Denver toward a more sustainable future.”
The ordinance approved an intergovernmental agreement between the City and County of Denver and the Colorado New Energy Improvement District, which administers C-PACE. Through C-PACE, city property owners and developers will be able to access a new financing tool to invest in energy efficiency, renewable energy and water conservation improvements. The voluntary program lowers the cost of third-party financing, which is repaid through the property tax assessment process. Participants receive capital to finance eligible improvements, and repayment is collected through the property tax assessment process (a voluntary assessment is placed on the building owner’s property tax bill). The assessment can provide long-term financing of up to 20 years and stays with the property at the time of sale, removing traditional barriers to financing projects with payback cycles longer than two to three years.
C-PACE is available for new construction projects, in addition to traditional retrofits and upgrades to existing buildings. Eligible property types for C-PACE financing include office, multi-family (five units or more), industrial, retail, hotels and agricultural facilities. Eligible project types include heating and ventilation upgrades, lighting, water pumps, insulation and envelope improvements, solar panels, water fixtures and graywater systems, motors and roofs.
Read the full article at www.denvergov.org.