As we advised in a previous post on this blog, the Garden State Commercial Property Assessed Clean Energy (C-PACE) program was established by the New Jersey Economic Development Authority (EDA) as a mechanism to finance, among other things, commercial renewable energy projects, energy efficiency initiatives, electric vehicle charging stations, microgrids, power purchase agreements, as well as water efficiency and other authorized improvements where “capital providers” pay the upfront costs of the project and are then repaid through a real property assessment levied by the participating municipality.
Under C-PACE preliminary draft guidelines posted by the EDA on its website on April 13, 2023, “eligible properties” are defined to include “schools, hospitals, institutions of higher education, or religious institutions” that otherwise meet the eligibility criteria. Accordingly, the C-PACE program is expected to be a popular option for hospitals and other healthcare sector entities looking to rehabilitate facilities or adopt clean energy initiatives while seeking to avoid the upfront capital expenditures typically required for such projects.
This Client Alert by Greenbaum attorney Maura E. Blau provides an overview of key definitions, application and eligibility criteria, fees and more as outlined in the EPA’s draft guidelines, on which public comment will be open through May 15, 2023.