Commercial, Energy Efficiency, Regulation  -  December 9, 2019

Buffalo pursues clean-energy financing program

Commercial and nonprofit building owners might soon be able to finance energy efficiency projects under a new program under consideration with the Buffalo, N.Y. Common Council.

The Council's legislative committee Dec. 3 recommended enacting a local law that would precede signing an Energy Improvement Corporation municipal agreement for a nonprofit, statewide local development corporation to act on the city's behalf, The Buffalo News reported Dec. 7.

Under the state's new Property Assessed Clean Energy (PACE) financing program, building owners have access to private capital for renewable energy and energy efficiency upgrades to their building.

The corporation who administers the new financing program, EIC, bills the property owners and directs them to remit the funds to the capital provider, removing any collection obligation from the municipality, in addition to providing a list of pre-approved lenders and reviewing and approving each financing to make sure it is aligned with the program's guidelines. The newspaper predicts that the full Council will adopt the legislation when it meets Tuesday.

"Smart policies like PACE financing can unlock Buffalo's green energy potential, while also creating well-paying jobs," Delaware Council Member Joel P. Feroleto told the publication. "By making energy conservation more attractive and financially attainable for commercial property owners, we are further positioning Buffalo to be a renewable energy leader."

According to the publication, eligible property owners who can participate in the financing program include corporations, both for and not-for profit, as well as limited liability companies, partnerships and real estate investment trusts.