Michigan Energy Innovation Business Council applauds introduction of commercial PACE bills
LANSING – New legislation that will create jobs by expanding the ability of building developers and owners to invest in energy efficiency and renewable energy projects was applauded today by the Michigan Energy Innovation Business Council (Michigan EIBC).
Since 2010, local governments in Michigan have been allowed to establish commercial PACE financing districts, with more than $210 million for energy efficiency projects financed through Michigan’s commercial property assessed clean energy (commercial PACE) market. More than 50 local governments – representing nearly 75% of Michigan residents – have voluntarily participated over the past decade.
“For more than a decade, local governments across Michigan have engaged private lenders, building owners and contractors to finance and build energy efficient projects and it’s truly a success story,” said Dr. Laura Sherman, president of Michigan EIBC. “With more than $210 million in energy savings projects financed so far, these bills will make it easier for businesses across Michigan to upgrade their buildings and implement advanced energy solutions. We look forward to working with the Legislature to pass these bills.”
Senate Bill 302 and Senate Bill 303 will expand the types of projects that can be financed using commercial PACE – making this already effective tool more robust and available for more building upgrades and advanced energy projects.
“C-PACE has been a public-private policy success for over a decade. Together, these bills seek to build on that success by expanding opportunities for developers and owners to start new construction and upgrades in cost-effective, energy-minded ways,” said Sen. Kristen McDonald Rivet. “Increasing investment in this space leads to more projects and jobs that are wins for Michigan’s economy and environment.”
“These bills facilitate common-sense changes to allow property owners, builders and communities to better utilize the PACE project funding that’s currently available,” said Sen. Darrin Camilleri. “As we prepare for the challenges of the 21st century, it’s obvious that water conservation and environmental hazard projects should be added to the list of projects that are eligible for this funding.”
“These bills bring common sense updates to the Michigan commercial PACE statute and will increase the effectiveness and availability of private investment in the future of Michigan properties and businesses,” said Todd M. Williams, President & General Counsel, Lean & Green Michigan.
“These amendments streamline the closing process for lenders and borrowers alike, making it time-efficient for developers to build in a more energy-efficient manner,” said Bali Kumar, Chief Operating Officer of PACE Loan Group. “As an extremely active C-PACE lender in Michigan, our Michigan borrowers have been asking us for these changes for years.”
Cliff Kellogg, Executive Director of the C-PACE Alliance said, “The C-PACE Alliance fully supports the amendments to Michigan’s C-PACE statute, encouraging more investment in Michigan’s economic growth, energy efficiency, resiliency, and more.”
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The Michigan Energy Innovation Business Council (Michigan EIBC) is a trade organization with more than 140 business members. Our mission is to grow Michigan’s opportunities for innovation and business growth by offering a unified voice to create a business-friendly environment for the advanced energy industry in Michigan. Michigan EIBC represents companies across the full range of the advanced energy sector, including: advanced materials, batteries and energy storage, biomass and biofuels, combined heat and power, community development, consulting, demand response, electric vehicles and mobility, energy efficiency, geothermal, law, lighting, lobbying and advocacy, performance contracting, purchasers of renewable energy, smart grid and optimization, solar, and wind. Advanced Energy Economy is a National Associate Member of Michigan EIBC.
