Welcome to the Utah C-PACE website. Whether you’re a property owner, a developer, a contractor, a mortgage holder, or a capital provider—or you simply want to learn more about Utah C-PACE—our goal is to provide you with the information you need to take advantage of this innovative new program.
This website only pertains to the C-PACE District that is administered and operated by the Governor’s Office of Energy Development (Utah Code Ann. § 11-42a (2017)). Cities and counties seeking information about self-administering C-PACE may refer to Utah Code Ann. § 11-42a-106 (2017).
More than 30 states have passed legislation enabling commercial property assessed clean energy, or C-PACE, among them Utah, which first passed enabling legislation in 2013. The statute authorized local governments to offer commercial and industrial property owners a unique mechanism for financing energy efficiency, renewable energy, and water conservation improvements to their buildings. S.B. Bill 273, enacted in March 2017, amends the earlier legislation by expanding the scope of eligible projects, establishing a statewide C-PACE District, and more clearly defining the process of developing and financing projects. The complete statute can be found at Utah Code Ann. § 11-42a (2017), also referred to as the C-PACE Act.
What is Utah C-PACE?
Utah C-PACE is an innovative program that helps property owners access private-sector financing to install building improvements that can reduce energy consumption and increase the value of their property. The Governor’s Office of Energy Development (OED) directs and administers C-PACE projects through the C-PACE District, which can benefit the state’s economy through new investment, job opportunities, energy savings, and improved air quality.
C-PACE financing is provided by capital providers in an open market. The financing is secured through a voluntary energy assessment and assignable lien that is levied against the owner’s property and is repaid to the capital provider. The financing term is typically based on the useful life of the improvements and can extend up to 30 years. Because the long-term financing can cover up to 100 percent of a building’s modernization project cost and often requires no money down, C-PACE may enable property owners to make substantial upgrades to their buildings. The project’s energy savings may outweigh the C-PACE payments, which creates positive cash flow for the property owner, whose upgraded building may be more valuable after a C-PACE project.
In Utah, and many other states, C-PACE is also available to real estate developers who design and construct buildings that use equipment that is more energy efficient than what is required by the commercial energy code. The financing may help developers fill gaps in their financing plan.
C-PACE benefits a broad range of stakeholders:
- Property owners reduce their energy costs and may improve the value of their building—all with no upfront, out-of-pocket costs.
- Contractors may be able to close more projects and grow their business.
- Developers may be able to use C-PACE to fill gaps in their financing plan.
- Capital providers may receive secure financing opportunities.
- Mortgage holders may benefit from an improved asset. In addition, the increased cash flow of a typical project may strengthen the owner’s repayment ability and reduce mortgage default risk.
- The community may enjoy new investment, and citizens may enjoy more job opportunities, greater energy savings, and improved air quality—all financed with private capital, and not taxpayer dollars.
Who Administers the Program?
The Governor’s Office of Energy Development (OED) administers the C-PACE District described on this website, with administrative support provided by Sustainable Real Estate Solutions, Inc.
What are the Program Administration Fees?
Administration of the C-PACE District is designed to be self-sustaining. A one-time program administration fee, equal to 3 percent of the project finance amount, not to exceed $90,000 per project, is applied to each financed project. This fee is typically included in the total financed amount and is due only if a project is successfully financed.Back to Top
Governor Gary R. Herbert recognizes energy as one of the four cornerstones of Utah’s strength, along with education, job creation, and self-determination. In recognition of this priority, the Governor’s Office of Energy Development (OED) was created in 2011 to advance Utah’s diverse energy sector through planning, policy, and direct engagement with the private sector; and thereby to foster economic growth through energy development and conservation activities and through the provision of affordable, reliable energy. Visit energy.utah.gov to learn more.Back to Top