New Jersey Business – Gov. Phil Murphy signed legislation (A-2374) which establishes the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program. The program will facilitate the funding of clean and renewable energy infrastructure at commercial properties throughout the state, furthering the administration’s commitment to battling climate change.
“C-PACE programs have been proven to be successful in many states,” said Governor Murphy. “Establishing a C-PACE program in New Jersey is a decision that will lead to more businesses and landlords embracing renewable energy, climate resiliency technology, and other clean energy measures that improve our communities while saving money for New Jerseyans.”
New Jersey Economic Development Authority CEO Tim Sullivan commented, “The NJEDA team is excited for the opportunity to reduce the financial burden of making these critical investments by alleviating upfront costs and lowering debt service payments. This will help property owners to preserve precious capital resources for other important projects.”
Primary sponsors for A-2374 are Assemblyman Raj Mukherji, and Senators Bob Smith and Kip Bateman.
A-2374 requires the NJEDA to the C-PACE program to facilitate the financing of C-PACE projects. The bill also allows certain local governments to establish their own local C-PACE programs to facilitate the financing of C-PACE projects.
A C-PACE project is defined as (1) the acquisition, construction, capital lease, installation, or modification of an energy efficiency improvement, renewable energy system, electric vehicle charging infrastructure, flood resistant construction improvement, or hurricane resistant construction improvement; (2) a microgrid or district heating and cooling system in which a property owner participates for the duration of the C-PACE assessment; or (3) a power purchase agreement with respect to a renewable energy system affixed to a property. The properties that are eligible for C-PACE financing are industrial, agricultural, or commercial properties; residential properties containing five or more dwelling units; common areas of condominiums and other planned real estate developments; and properties owned by a tax-exempt or nonprofit entity, including, schools, hospitals, institutions of higher education, and religious institutions.