HomeMy WebLinkAboutAgenda 09-04-2025; 12-7 - Information Item - Memorandum - Commercial Property Assessed Capital Expenditure (C-PACE) Program Overview and Potential Adoption in Orange County 1
INFORMATION ITEM
ORANGE COUNTY
To: Board of County Commissioners
Travis Myren, County Manager
From: Amy Eckberg, Sustainability Programs Manager
Date: September 4, 2025
Subject: Commercial Property Assessed Capital Expenditure (C-PACE)
Program Overview and Potential Adoption in Orange County
Background:
The State of North Carolina recently authorized a statewide Commercial Property
Assessed Capital Expenditure (C-PACE) program through Senate Bill 802 (July 2024).
The program is administered by the Economic Development Partnership of North
Carolina (EDPNC) and enables local governments to opt in by adopting a resolution of
intent followed by a final resolution after a public hearing.
C-PACE is a financing mechanism that allows commercial property owners to fund
energy efficiency, renewable energy, water conservation, and resiliency improvements
through voluntary property tax assessments. This tool can be used for new construction
or renovations for industrial, agricultural, nonprofit, and multifamily residential properties
with 5 or more units.
Key Features:
• Up to 100% financing of eligible project costs with no upfront payment
required.
• Fixed interest rates and long-term repayment (typically up to 20-30 years).
• Assessment remains with the property—not the owner—if the property is
sold.
• No taxpayer funds are used; financing is provided by private capital
providers.
• Potential for significant utility bill savings, increased property values, and
reduced greenhouse gas emissions.
Recent Developments in North Carolina:
• July 2024: Senate Bill 802 established the statewide C-PACE framework.
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• August 2024 — Present: EDPNC developed a program toolkit and began
outreach to local governments.
• February 2025: City of Wilmington and New Hanover County became the
first local governments in North Carolina to adopt the program.
All Costs Are Paid by the Property Owner:
Participation does not make the County financially or legally responsible for C-PACE
assessments; these remain the sole responsibility of the property owner and capital
provider. Property owners who choose to use C-PACE cover:
o The application fee ($750)
o The processing fee (1% of the financing, capped at $50k)
• The administrative fee ($500 at closing)
These fees go to EDPNC (and county register of deeds for filing)
Counties pay nothing to participate in C-PACE. Their role is limited to authorizing and
administering the assessment mechanism, while all costs are borne by the property
owner and capital provider, with EDPNC administering the program.
Alignment with Climate and Economic Goals:
C-PACE aligns with the County's Climate Action Plan mission to advance an equitable,
low-carbon future while fostering sustainable economic growth. By enabling private
investment in clean energy and resiliency upgrades, C-PACE can:
• Reduce greenhouse gas emissions.
• Improve community resilience to climate impacts.
• Support economic development by lowering operating costs for
businesses.
• Encourage green building practices in new developments
Next Steps for Orange County:
The Towns have expressed interest in participating in the C-PACE program. For the
program to move forward, Orange County needs to take formal action to join. To
participate, the County would need to:
1. Adopt a Resolution of Intent to participate in C-PACE financing.
2. Hold a Public Hearing and adopt a final resolution authorizing participation.
3. Collaborate with EDPNC on marketing, outreach, and administration.
4. Assign billing, collection, and enforcement responsibilities to the capital provider
(per state law).
Staff will prepare a resolution of intent for Orange County to participate in the statewide
C-PACE program for a future meeting.
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