Bill to expand successful and mutually beneficial Commerical Property Assessed Clean Energy funding receives bipartisan support
LANSING, Mich. (May 25, 2023) — Yesterday, the Michigan Senate passed legislation to expand the scope of projects and properties eligible for Commercial Property Assessed Clean Energy financing. Sen. Kristen McDonald Rivet (D-Bay City) sponsored Senate Bill 303, which together with Senate Bill 302 (sponsored by Sen. Darrin Camilleri), would increase access to C-PACE, a valuable financing tool resulting in over $332 million in energy savings over the past decade.
“Expanding C-PACE will help more Michigan businesses make investments to lower their costs and carbon footprint. This is a smart policy for our climate, Michigan businesses, and jobs. I’m excited that it’s my first big environmental legislation to pass the Senate,” said Sen. McDonald Rivet.
“As we continue our efforts to mitigate the effects of PFAS, lead, and floods, this legislation expands access to an economic development tool that’s both pro-environment and pro-business. More owners will be able to secure their property and achieve savings with this commonsense approach to addressing climate change.”
Sen. McDonald Rivet’s legislation would reduce barriers for property owners to pursue C-PACE financing, expand the program to agricultural property, and add water conservation and environmental remediation projects as eligible for C-PACE loans.
C-PACE is widely seen as a public-private policy success and this step toward its expansion received bipartisan support in the Senate as well as praise from environmental and economic stakeholders.
“Michigan EIBC and our members applaud the Senate passage of SB 302 and SB 303 on a bipartisan vote,” said Dr. Laura Sherman, president of the Michigan Energy Innovation Business Council (EIBC). “These commonsense bills will make it easier for businesses across Michigan to make cost-effective energy efficiency and renewable energy upgrades. The C–PACE program has a proven track record of success with hundreds of millions in energy savings projects financed so far.”
For the past decade, local governments across Michigan have used C-PACE to engage with private lenders, building owners and contractors on energy efficient projects. It’s a voluntary tool which municipalities may use to establish districts promoting energy efficiency and has measures to ensure transparency and consumer protection including requirements for public hearing and approval.
Todd Williams, President of Lean and Green Michigan, recently wrote in a letter to lawmakers: “Michigan’s commercial PACE market is a leading example of the power of private sector, market-based solutions that can be deployed through public-private partnerships. We are proud of the impact that PACE has had in Michigan, and we look forward to the continued growth of this important tool helping Michigan commercial property owners to improve business operations, lower their energy bills, and make their properties more valuable—all through market driven private investment.”
C-PACE financing uses 100% private capital and creates no liability for the state or local governments. Commercial property owners are able to use the loans for energy efficiency or renewable energy projects that would otherwise cost too much upfront.
# # #
Selected to serve as one of the Michigan Senate’s two Assistant Majority Floor Leaders, Sen. McDonald Rivet has 30 years of experience in educational and economic policy and strategic leadership. She represents the 35th Senate District.