Mayor Bronson Congratulates Governor Dunleavy and Alaska State Legislature for Expanding Clean Energy Financing Program

 

Mayor's Office

6/30/2022


Anchorage, AK ­– Today, Anchorage Mayor Dave Bronson congratulated Governor Mike Dunleavy and the Alaska State Legislature for the passage and signing of HB 227 sponsored by Representative Calvin Schrage which will expand opportunities for commercial property owners to finance clean energy and resilience measures in buildings. The C-PACE (Commercial Property Assessed Clean Energy) program helps owners of commercial and industrial properties obtain low-cost, long-term financing for clean energy projects. The costs are paid back through a voluntary special assessment alongside the property tax bill.   

“The statutory clean-ups are based on best practices from other states' programs and will ensure efficient statewide promulgation, said Mayor Dave Bronson.  “These changes will greatly facilitate investment in our building stock, especially at a time when economic development is needed most. The projects will improve underlying building stock, reduce energy costs, and create local jobs, all with private financing."

“HB 227 offers all Alaskan developers a way to quickly complete medium to large-scale projects into positive cash flow starting day one," said Tom Harris, CEO of Ki Energy in Southcentral Alaska. “C-PACE is good for business, good for the environment, and good for Alaska. With enough energy, what can't you do?"

The Municipality launched the state's first C-PACE program in April 2021 to facilitate the financing of clean energy projects in commercial buildings. C-PACE makes energy-efficient upgrades to Anchorage's commercial buildings easier to finance. The financing arrangement attaches the payment obligations to the property as a lien, rather than to the borrower, and reduces collection risks for lenders. C-PACE financing is intended to cover the full costs of eligible improvements, with little or no up-front, out-of-pocket cost to the owner. The cost of administering the program is expected to be entirely offset by program fees.

"Northrim Bank is pleased to work with the Municipality of Anchorage in support of the C-PACE program for local commercial building owners, non-profits, industrial and manufacturing centers and multifamily property owners which provides economic benefits to our local economy," said Phillip Reid, Vice President Commercial Loans at Northrim Bank. “Supporting programs such as C-PACE provides long-term fixed-rate private financing for clean energy and resiliency improvements to commercial properties that will improve and strengthen the opportunities for Alaskans throughout the state to participate in this program."

​To date, 38 states and Washington D.C. have enabled PACE legislation. Nationwide, over $2 billion has been invested through over 2,500 commercial projects, creating 24,000 jobs. Anchorage is the first local government in Alaska to create a C-PACE program, though the local program was designed with partners to be easily adopted by other tax assessing jurisdictions in Alaska.

HB 227 expands the scope of the original C-PACE legislation with the following changes:

  • Includes new construction
  • Allows resiliency projects
  • Allows C-PACE refinancing with a two year “look back" period
  • Considers a property's “market" value rather than assessed value
  • Eliminates the Savings-to-Investment Ratio and extends the maximum loan term from 20 to 30 years

Visit www.muni.org/CPACE for more information, including instructions on applying and to sign-up for newsletter announcements.

Media Contact: Shaina Kilcoyne, Energy and Sustainability Manager, shaina.kilcoyne@anchorageak.gov (907) 744-1815

      Melanie Lucas-Conwell, 49SAF Manager, melanie.lucasconwell@anchorageak.gov  (907) 343-4898 

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