To: Sussex County Council
From: League of Women Voters of Sussex County
RE: Commercial Property Assessed Clean Energy Program (C-PACE)
Date: January 20, 2021
Dear Michael H. Vincent - Council President, Council District 1
Cynthia Green - Council District 2
Mark Schaeffer - Council District 3
Douglas B. Hudson - Council District
John L. Rieley - Council District 5
The League of Women Voters of Sussex County (LWVCSDE) supports the use of energy efficiency programs and increased use of renewable energy. These practices slow global warming and protect both the environment and the health of our citizens. Commercial Property Assessed Clean Energy (C-PACE) programs have become a popular way for business owners to make major steps in saving on their energy costs without paying a large upfront cost. The loans made through C-PACE are similar to bonds in that they are based on the value of the property and are paid back through a surcharge on the property taxes the businesses pay over coming decades.
As with bonds, the loan stays with the property and may be continued by a new owner. Because the default rate on loans made through this program is very low, the interest paid can be lower than possible through other options. Significantly, under the terms of a C-PACE agreement, the County would always be in first position for repayment in the event of a default sale. Therefore, the C-PACE lender only gets paid what it is owed AFTER the County is paid whatever taxes it is owed.
The LWVSCDE supports the establishment of C-PACE. This program is designed to facilitate financing for eligible clean energy improvements to qualifying commercial, industrial, agricultural, and multifamily housing (containing five or more dwelling units), non-profit and agricultural properties across Sussex County. We believe that it can increase the number of commercial properties that are renovated for energy efficiency and that install solar panels or other qualifying methods of producing renewable energy. There are numerous businesses throughout Sussex County that would be capable of doing most, if not all, of the work involved in renovations. This program would also likely increase employment in the related trades.
The LWVSCDE therefore requests that the Sussex County Council vote their approval of this program, and sign the C-PACE agreement that has been introduced so that it can benefit all manner of business enterprises across our County.
Sincerely,
Gwendolyn R.Y. Miller
President, League of Women Voters of Sussex County, Delaware
www.SussexLWV.org
Tel: 215-850-5535
grybm [at] outlook.com
cc: Todd F. Lawson, Sussex County Administrator
