The Property Insurance and Energy Reduction Act (PIERA) allows a county, municipality, or improvement district to adopt a program to issue bonds, notes, or other types of financing methods to finance improvements to certain real properties through assessments on the property tax bill (Act 2015-494.)
A Commercial Property Assessed Clean Energy (C-PACE) program is a low-cost, long-term financing mechanism for resiliency and energy efficiency improvements through special assessments on property taxes. The economic and community development benefits associated with C-PACE have a direct impact on the community. The Governor appointed the Alabama Department of Economic and Community Affairs (ADECA), Energy Division to exercise regulatory jurisdiction over programs and activities under the Act (Executive Order 695).
ADECA shall have the authority to adopt reasonable rules, interpretations, and guidance, consistent with the laws of this state, as may be necessary to carry out this act.
Increasing Energy Affordability and Resiliency in Alabama Through C-PACE Financing
In 2019, the ADECA Energy Division received a competitive award from the U.S. Department of Energy to help develop and implement a C-PACE program for Alabama. The Energy Division worked with the National Association of State Energy Officials (NASEO) to provide a comprehensive analysis of C-PACE programs across the country to identify lessons learned and best practices from other states in order to develop the best program possible for Alabama. The report, Considerations for an Alabama Commercial Property Assessed Clean Energy (C-PACE) Program, details their findings and includes suggestions for consideration in the development of a C-PACE program for Alabama.
One of the most important steps in the development process is engaging with local governments and stakeholders to understand their processes, needs, and concerns. If you would like to be a part of the stakeholder working group, please subscribe to our mailing list to receive updates and information about participating.