Just about two months after the New Jersey Economic Development Authority (“NJEDA”) approved the Garden State Commercial Property Assessed Clean Energy program, or “C-PACE”, it has released form documents for municipalities wanting to opt into the Program. The documents include a sample ordinance and form Program Agreement to be executed by the NJEDA and the municipality. The C-PACE program will provide low interest rate loans to certain property owners, including commercial and industrial property owners and tax-exempt/nonprofit entities, seeking to undertake certain improvements expand or implement energy efficiency and water conservation (i.e. electric vehicle charging stations and improved stormwater management systems). Municipalities are required to first opt-in before property owners in their town can apply for the Program. The application process for owners has yet to commence, but the NJEDA states it will start accepting applications shortly on a rolling basis.
—
Source: Press Release from the New Jersey Economic Development Authority
NJEDA Releases Opt-In Documents for Municipalities to Participate in Garden State C-PACE Program
TRENTON, N.J. (December 12, 2024) – The New Jersey Economic Development Authority (NJEDA) has published municipality opt-in documents to participate in the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program. The program will allow commercial property owners in Participating Municipalities to access a new form of financing to undertake energy efficiency, water conservation, renewable energy, and resiliency improvements.
WHAT: The Garden State C-PACE Program allows property owners to repay investments from Qualified Capital Providers into eligible projects through a special assessment to a Participating Municipality, similar to the owner’s real property tax, sewer, or water bill. The Participating Municipality then remits the payment to the initial capital provider. This unique form of financing can result in lower-cost, longer-term financing, making it easier for projects to be cashflow-positive from the outset. Municipalities are required to opt-in prior to any project application.
WHO: Municipalities interested in participating in the Garden State C-PACE program.
WHEN: Municipalities are required to first adopt the Opt-In Ordinance prior to submitting an application for participation in the Program to the Authority. Applications will open shortly and will be accepted on a rolling basis. For more information and to view the documents, click here. Interested parties may send questions to gardenstatecpace@njeda.gov.