HARTFORD, CT - Governor Dannel P. Malloy,
Department of Energy and Environmental Protection (DEEP) Commissioner
Daniel C. Esty, State Senator Bob Duff (D-Norwalk), and other state and
local officials announced Monday the State of Connecticut’s first energy
efficiency project financed through the Commercial & Industrial
Property Assessed Clean Energy (C-PACE) program, a new and innovative
tool that allows property owners to finance efficiency upgrades with
little or no upfront costs and re-pay the loan over time on their
property tax bill.
“Through the use of innovative financing tools like C-PACE, we can make
energy cleaner, cheaper, and more reliable,” said Governor Malloy.
“Improving energy efficiency, addressing conservation, and supporting
alternative sources of power are important for growing Connecticut’s
clean energy economy and reducing costs for residents, businesses, and
government.”
The shopping plaza at 542 Westport Avenue in Norwalk financed a $285,000
lighting upgrade through C-PACE. The lighting improvement project is
expected to reduce electricity costs by $17,500 per year, and C-PACE
will allow the owners to make the payments on their property tax bill
over time. The owners also plan to use C-PACE and other financing
support available under Governor Malloy’s energy plan to install a 100
kilowatt solar project at the site.
“We must bring new thinking and new approaches to the table to achieve
our energy vision. Innovation in financing is as critical as innovation
in technology – and that is why we established the nation’s first green
bank – the Clean Energy Finance and Investment Authority – which
administers C-PACE as well as a number of other key financing
initiatives,” said Daniel C. Esty, Commissioner of DEEP. “We applaud the
City of Norwalk for adopting C-PACE early on and moving forward with
it.”
“C-PACE will help hundreds of Connecticut businesses save real money on
their energy costs, and do it by being more environmentally friendly.
All of the businesses that rent in this shopping center, both now and in
the future, will see a direct benefit from this project,” said Senator
Duff (D-Norwalk). “It is very personally fulfilling to see the first
C-PACE project take root here in Norwalk. I began working with the
banking community on this concept as chair of the Banks Committee and
vice-chair of the Energy Committee. So many people have come together to
make this program a reality, and I especially thank Governor Malloy and
Commissioner Esty for their support and for being here today.”
Along with 17 other cities and towns, Norwalk was one of the first
cities to authorize C-PACE financing. A dozen more municipalities are
expected adopt the program in the coming months.
Background on C-PACE:
· C-PACE (Commercial and Industrial Property Assessed Clean
Energy) is administered by the Clean Energy Finance and Investment
Authority (CEFIA) as part of the state’s Energize Connecticut
initiative, which helps ratepayers lower costs and use clean energy.
· C-PACE allows building owners to access capital to finance
qualifying energy efficiency and renewable energy improvements by
placing a voluntary assessment on their property tax bill. Property
owners pay for the improvements over time through this additional charge
without having to use their own capital. The repayment obligation
transfers automatically to the next owner if the property is sold.
· The program requires that energy upgrades eligible for
financing must lower the energy consumption of the building or enable
the building to produce clean energy. Typical C-PACE measures include
high efficiency lighting, heating ventilation air conditioning (HVAC)
upgrades, high efficiency chillers, boilers, furnaces, and water heating
systems, and renewable energy systems such as solar and fuel cells.
· C-PACE financing was made possible by the Connecticut State
Legislature in PA 12-2, which passed authorizing legislation.
Background on the Clean Energy Finance and Investment Authority (CEFIA)
· CEFIA was established by Connecticut’s General Assembly on
July 1, 2011 as a part of Public Act 11-80. This new quasi-public agency
supersedes the former Connecticut Clean Energy Fund. CEFIA’s mission is
to help ensure Connecticut’s energy security and community prosperity
by realizing its environmental and economic opportunities through clean
energy finance and investments. As the nation’s first full-scale clean
energy finance authority, CEFIA will leverage public and private funds
to drive investment and scale-up clean energy deployment in Connecticut.
