County to consider implementing new state financing program for energy projects
During their March 22 meeting, County Commissioners will consider creating a county-wide Property Assessed Capital Enhancement program.
The program was established during the 2021 Legislature and allows local governments to “designate an area of the territory of the local government as a district within which an authorized local government official and the record owners of a privately owned commercial or industrial facility, covered multifamily housing accommodation…or agricultural property may enter into written contracts to impose assessments on the property to repay the financing by the owners of energy conservation projects,” as defined under state law.
Essentially, the program provides low-cost, long-term loans for eligible projects, according to the Montana Department of Commerce.
Commissioners approved a resolution of intent earlier in March to create the PACE program and will hold a public hearing during their March 22 meeting.
The county is proposing two types of projects that would be qualified for PACE financing: energy conservation measures and renewable energy systems.
Financing for qualified projects under the PACE program will be provided by qualified third-party lenders selected by the property owners. Those lenders are required to have contracts with the county to service those assessments, according to the county.
Under the lender contracts, the county “will maintain and continue the assessments for the benefit of such lenders and enforce the assessment lien for the benefit of a lender in the event of a default by an owner. Cascade County will not, at this time, provide financing of any sort for the PACE program,” according to the county.
The county intends to use the Montana Facility Finance Authority to serve as the independent third-party program administrator on its behalf, which complies with the PACE guidelines, according to the county.
The PACE program falls under the Montana Department of Commerce, and according to the agency, the program “empowers building owners to save energy and money, communities to create new jobs and local economies to flourish—all without any taxpayer assistance.”
