OFFICE OF LEGISLATIVE AUDITOR
Fiscal Note
Fiscal Note On: HB 619 HLS 21RS 1010
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 21, 2021 12:47 PM Author: HILFERTY
Dept./Agy.: Parish Governing Authorities
Subject: Commercial Property Clean Energy Resilience Program Analyst: Jamie Mergist
PROPERTY OR SEE FISC NOTE LF Page 1 of 1
Authorizes parishes governing authorities to create commercial property assessed clean energy resilience programs
Purpose of the Bill: This bill authorizes parish governing authorities to establish, by ordinance, commercial property
assessed clean energy resilient loan programs (C-PACE) within federally designated opportunity zones located in their
respective parishes. The purpose of C-PACE is, in part, to provide property owners with access to loans to improve water and
energy efficiency and resiliency against disasters (e.g. hurricanes) of eligible property. The bill provides requirements for
the program, including requirements for eligibility, administration, and loans.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
This bill may increase local fund expenditures by an indeterminable amount.
An official with a third-party administrator for C-PACE programs in Virginia indicated that this bill may increase local
government expenditures by an indeterminable amount for administrative costs related to the program if managed by the
local government. However, this official indicated that typically local governments hire third-party administrators who pay for
the majority of program setup and administrative costs with the local government paying for the cost of enforcing delinquent
C-PACE loans through the property tax sale process. This official also indicated that the bill would not impact state
expenditures.
An official with the St. Bernard Parish Government (Parish) indicated that Parish expenditures may increase by an
indeterminable amount due to administrative and enforcement costs if the Parish is the program administrator.
REVENUE EXPLANATION
This bill may increase local fund revenues by an indeterminable amount.
An official with a third-party administrator for C-PACE programs in Virginia indicated that this bill may increase local
government revenue by an indeterminable amount if local governments impose fees on participating property owners.
However, this official indicated that, in her experience, local governments usually do not charge such fees as they usually
contract with third-party administrators to administer C-PACE programs. This official indicated that her own organization
charges an administrative fee of 1.25% percent on the total project costs (up to $50,000) at closing. This official also
indicated that the bill would not impact state revenue.
An official with the St. Bernard Parish Government indicated that Parish revenue may increase by an indeterminable amount
if the Parish administers the program and collects an administrative fee.
Our research indicates that administration fees for C-PACE programs throughout the United States vary. For example, we
noted that participating property owners in Delaware are charged an administrative fee of 2.5% of the loan amount (up to
$75,000) and a county servicing fee up to $1,500.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Michael G. Battle
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Manager, Advisory Services