The bill S.138 establishes a framework for Commercial Property-Assessed Clean Energy (C-PACE) projects in Vermont, allowing municipalities to create C-PACE districts. Under the new subchapter added to 24 V.S.A., towns, cities, or incorporated villages can designate themselves as C-PACE districts, enabling property owners who enter into written agreements with the municipality to be subject to special assessments for financing renewable energy and energy efficiency projects. The bill outlines the requirements for property owners to enter into these agreements, including the necessity of an energy savings analysis and lender consent, and specifies that the assessments will be a first lien on the property, subordinate only to property tax liens.

Additionally, the bill amends existing laws to incorporate provisions related to the C-PACE program, including the ability for municipalities to charge fees for its operation and clarifying the liability of municipalities in relation to these projects. It also introduces specific conditions regarding the repayment of assessments and the treatment of liens associated with C-PACE projects. The act is set to take effect on July 1, 2026, and includes provisions that exempt C-PACE assessments from certain existing lien regulations, thereby enhancing the financing options available for commercial property owners looking to invest in clean energy improvements.

Statutes affected:
As Introduced: 24-87
As Passed By the Senate -- Official: 24-87, 24-3263, 24-3264, 24-3265, 24-3268, 24-3255, 9-46
As Passed By the Senate -- Unofficial: 24-3263, 24-3264, 24-3265, 24-3268, 24-3255, 9-46