Engaging Anew with Stakeholders
The MD-PACE program is pleased to report a considerable increase in contractor and capital provider interest over the past year. Since 2017, contractor registration increased by 60% and capital provider registrations by 12%. This level of stakeholder engagement is a sign of the success of the MD-PACE program.
Considering this interest, the MD-PACE program decided to host a re-registration session for all contractors and capital providers to reengage with those interested parties, refresh contact information, and collect information that could be useful for potential C-PACE applicants. As part of this process, the program reissued updated registration forms, hosted a re-training webinar, and is updating the program website to reflect the outcome of this re-registration process.
The sustained interest in the MD-PACE program on the part of some of its strongest partners – contractors and capital providers – is a clear sign that this is a healthy program that will thrive in the years to come.
Passage of C-PACE Legislation in Pennsylvania and Delaware
In the Mid-Atlantic
Pennsylvania and Delaware have both begun to build C-PACE programs in the past several months, with Pennsylvania’s governor signing C-PACE enabling legislation in June (Act No. 30) and Delaware’s governor following close behind in September (Senate Bill 113).
The Pennsylvania legislation was passed through the Commonwealth’s House and Senate with broad bipartisan support. Individual jurisdictions will still need to opt into the program at a county or other municipal level before the program can be considered live. The Sustainable Energy Fund, an existing agency that facilitates clean energy and energy efficiency grants and incentives, will sponsor and administer and statewide program. The City of Philadelphia is expected to administer an independent program.
The case of Delaware largely mirrors that of Pennsylvania. It, too, is now in a program design and county opt-in phase, led by the state administrator, Delaware’s Sustainable Energy Utility. The three counties in the state have already indicated their interest in participating in the program and therefore, we can expect to see C-PACE in action in Delaware within the next several months. As Delaware is Maryland’s immediate neighbor, the MD-PACE program expects that its registered contractors and capital providers will soon uncover an attractive commercial real estate market in Delaware.
The MD-PACE program commends the Commonwealth of Pennsylvania and the State of Delaware on taking the steps to implement a Commercial Property Assessed Clean Energy program in their respective jurisdictions. The passage of C-PACE legislation in Pennsylvania and Delaware lays the groundwork for the Mid-Atlantic to be a powerhouse of C-PACE transactions in the country. Alongside Pennsylvania and Delaware, New Jersey has a C-PACE program under development. Maryland and DC have fully fledged programs with multiple completed transactions and Virginia is in the implementation phase, with individual counties now opting into the program (Arlington County has opted in thus far). To the west, Kentucky and Ohio also have functioning C-PACE programs.
Two New Counties Join the C-PACE Club and Updates in Baltimore City
Bethesda, MD (September 26, 2018) — As the year unfolds, Maryland continues to experience successful C-PACE expansion across the state. Most recently, Cecil County voted to pass Bill No. 2018-13 on September 4th of this year, enabling C-PACE in the county. Prince George’s County Executive signed their own ordinance implementing C-PACE financing on August 8th of this year. The result of these developments is that in just a few short years, 17 jurisdictions in Maryland have enabled C-PACE programs. Of these, 15 have opted into the MD-PACE program (Montgomery County and Prince George’s County operate their own C-PACE programs).
Furthermore, in July the City of Baltimore passed an amendment to Council Bill 18-195 substantially changing the rules guiding C-PACE project eligibility. This amendment allows otherwise eligible projects that have already begun construction to qualify for C-PACE retroactively. Specifically, projects initiated as of July 1st, 2016 may now apply for C-PACE financing up to 30 months after qualifying improvements have been placed on the property. This option will be available through December 31st of 2019. The exact updated text of the legislation is included below:
For projects initiated on or after July 1, 2016, through December 31, 2019, the Administrator may approve a clean energy loan up to 30 months after the property owner places qualifying energy improvements in service, as long as the property owner has filed an initial PACE loan application on or before December 31, 2019.
If you have any questions about the content of C-PACE legislation that has been passed in Maryland or where to find such information, please reach out to PFS.
Jurisdictions in Maryland with a C-PACE Program:
- Allegany County
- Anne Arundel County
- Baltimore County
- Baltimore City
- Carroll County
- Charles County
- Frederick County
- Garrett County
- Harford County
- Howard County
- Kent County
- Montgomery County
- Prince George’s County
- Queen Anne’s County
- Talbot County
- Wicomico County