Frequently Asked Questions

What is Colorado C-PACE?

Colorado Commercial Property Assessed Clean Energy (C-PACE) is a program that helps building owners access private-sector financing to upgrade their building with energy efficiency, clean energy, and water efficiency improvements. With C-PACE, building owners receive up to 100 percent financing with attractive repayment terms consistent with the useful life of the improvements (up to 25 years). This typically enables them to undertake larger building modernization projects that addresses multiple deficiencies. In well-designed C-PACE projects, the energy cost savings exceed the PACE payments, creating a cash-flow-positive project. By using C-PACE, building owners can reduce their operating costs, improve the value and competitiveness of their building, meet energy performance goals, and increase their cash flow. Repayment is facilitated through the County property tax assessment process. A voluntary assessment (similar to a sewer district assessment) is placed on the building owner’s property tax bill. The assessment is repaid over the financing term (up to 25 years) and the annual energy cost savings will, in most cases, exceed the annual assessment payment. As a result such projects are typically cash flow positive in the first year. Because the C-PACE assessment obligation runs with the property, the assessment automatically transfers to the next owner when the property is sold.

Who administers Colorado C-PACE?

The statewide Colorado C-PACE program was launched by Colorado’s New Energy Improvement District (NEID), which was created by the Colorado Legislature in 2014. In 2025 NEID is administered by the Exectuive Director of Market Development.

What counties participate in the Colorado C-PACE program?

Visit the Participating Counties page of this website for a current list of counties that participate in the Colorado C-PACE program. The program administrator can accept Pre-Qualification Submission Forms ONLY from owners with properties located in a county that has opted into the Colorado C-PACE program. If you have questions about getting any county to join Colorado C-PACE, email jason@coloradocpace.com.

I noticed the program has a directory of C-PACE project developers. How are these different from contractors?

While a contractor typically focuses on one or two aspects of energy efficiency or renewable energy, such as lighting, HVAC, or solar, for example, a C-PACE project developer focuses on more comprehensive retrofit projects. These firms have the capability to model various project scenarios for the building, help the building owner choose the financing that best meets their needs, and manage the project from application through close and beyond.

Does a contractor need any special licensing or certification?

All contractors should be in compliance with Colorado State and local license requirements. In addition, attendance at one of the recurring Colorado C-PACE contractor training workshops is required to become a Colorado C-PACE registered contractor. There is no charge for attending these sessions.

How do I get started?

Colorado C-PACE provides regularly scheduled free training workshops for contractors. Email jason@coloradocpace.com.

How does the process work?

Colorado C-PACE process involves multiple steps that include:

• Contractor training
• Building selection and prequalification
• Preliminary project scoping
• Proposal preparation and review with the owner
• Project scenario development and optimization
• Project technical review
• Financing
• Construction

For more information see the Process Flow Diagrams in the Colorado C-PACE Program Guide.

How long does it take to prepare a project for submission?

It depends on the complexity of the project. Single ECMs take just a few days. Complex projects that require audits and/or detailed engineering can take 6 to 8 weeks.

How long does it take to get a project financed after an Pre-Qualification Submission Form is submitted?

Timeframes are project-specific and depend on the number of parties involved. In a C-PACE project, the contractor, mortgage holder, and capital provider establish their own schedules with the building owner. Once a project has been approved for financing, it typically takes an average of 60 days to close.

Is the construction contract between the contractor and the owner?

Yes.

When does a contractor get compensated?

After a project has been reviewed by the program administrator and approved by the building owner and mortgage holder (if any), participating capital providers are offered the opportunity to finance the project. The capital provider (selected by the owner) will review the project documentation (provided by the program administrator and the owner), prepare a financing agreement, and schedule a closing. Funds to initiate construction will be disbursed as provided in the financing agreement funds disbursement schedule.

What is the Savings-to-Investment Ratio (SIR)?

The SIR tells all stakeholders whether a project will be cash-flow-positive. It is calculated by dividing the projected energy cost savings over the finance term by the total installed cost of the project, including the cost of equipment, installation, and financing. While the Colorado C-PACE Statute does not require any SIR criteria, the program strongly encourages projects with an SIR>1 for the following reasons:

• Mortgage holders will be more likely to provide consent for projects that show positive cash flow
• Capital providers will look favorably on projects that show positive cash flow
• In general, the higher the SIR, the greater the demonstrated environmental benefits of the project, helping to promote the goals for the Colorado C-PACE program set forth in the C-PACE Statute.

What improvements are eligible for Colorado C-PACE financing?

The following list of typical, proven energy efficiency, renewable energy, resiliency and water conservation technologies is intended as a reference. The program administrator will review other proposed improvements on a case-by-case basis. Energy efficiency

• Automated building controls (BMS, EMS)
• Boilers, chillers and furnaces
• Building envelope (insulation, glazing, windows, etc.)
• High efficiency lighting
• Hot water heating systems
• HVAC upgrades
• New roof (if it will result in energy savings)
• Variable speed drives on motors, pumps and fans

Renewable energy

• Combined heat and power (CHP) systems
• Fuel cells
• Geothermal systems
• Hydroelectric systems
• Recycled energy
• Roof (if used to support a solar PV system)
• Small wind systems
• Solar PV
• Solar thermal
• Waste heat recovery

Water conservation

• Irrigation systems
• Low-flow fixtures (faucets, toilets, etc.)

Resiliency improvements

• Increases a building’s structural resiliency for seismic events
• Improves indoor air quality
• Improves wind or fire resistance
• Improves stormwater quality or reduces on/off-site risk of flash flooding
• Improves the ability of a building to withstand an electrical outage
• Reduces/mitigates urban heat island effect or the effects of extreme heat

Other eligible expenses

• Commissioning costs
• Construction costs related to an eligible improvement
• Energy audit costs
• Engineering and design expenses
• Measurement and verification costs
• Permit fees
• Renewable energy feasibility study costs

This list is not comprehensive. Any improvements that result in utility cost savings and meet other program criteria, will be considered under Colorado C-PACE. See the C-PACE Program Guide, Section 2.B. Eligible Projects, for more information.

How are the energy savings calculated for solar-only projects?

A solar PV feasibility study must be prepared for any project that includes a solar PV installation. For multi-ECM projects, the contractor providing the non-solar ECMs should refer to the Audit Requirements section of the Colorado C-PACE Program Guide. The methodology used for the savings projections are determined during the project development stage. In most cases, an ASHRAE Level I will suffice. For single ECMs such as a boiler replacement, the required documentation can be less comprehensive; however, it should facilitate an SIR calculation. As is the case for all new and innovative programs, we anticipate a learning curve. Therefore, the program administrator will provide tools and support services to streamline the project submission, review and approval process. Regardless of the feasibility study and/or audit level, energy use data collection should comply with the ASTM E2797-15 Building Energy Performance Assessment (BEPA) Standard.

How many years of utility data do I need to establish the energy use baseline?

Three years of utility data is preferred with a minimum of one year, during which time no major renovations should have taken place. For more information, email jason@coloradocpace.com.

Can roof repair or structural work be financed?

Yes. These costs are added to the costs of the solar installation and will reduce the SIR.

For roof-mounted systems, what is required to confirm a roof will handle the additional load?

All roof-mounted systems require an assessment and sign-off by a roofing contractor and a structural engineer. For more information refer to the Solar Feasibility. Refer to the Colorado C-PACE Program Guide for more information or email jason@coloradocpace.com.

Do the projected energy savings need to be normalized for weather conditions?

Yes. Since the energy savings are projected and future weather conditions are unknown, energy savings are projected using average conditions. These projections create baselines for the status quo (which assumes ECMs have not been installed) and for the projected case (which assumes the recommended ECMs have been installed).

Can electricity/fuel-cost escalation factors be used that are higher than the published default factors?

While the default electricity/fuel-cost escalation factors, which are based on industry best practice, should be used, the program administrator will consider higher factors if the contractor submits the rationale for, and the calculations used, to arrive at a different cost escalation factor.

Can I include demand savings?

Yes, but these savings must be directly related to the projected solar energy production.

Can performance degradation factors be used that are lower than the published default factors?

Yes, although the default system performance degradation factor, which is based on industry best practice, should be used. To use a lower factor, the contractor must submit a rationale for, and the calculations used, to arrive at a different performance degradation factor.

Do I need a Letter of Agreement from the utility to take credit for a utility incentive?

Yes.

Will a project with an SIR<1 receive financing?

Yes, but there are hurdles. First, the owner would have to agree to a proposal that is not cash-flow positive. Next, the mortgage holder will have to consent. This should be discussed early in the process to minimize the chance that a project will fail after it has been developed.

Can the solar investment tax credit (ITC) include the roof upgrade?

In some cases, depending on the roof and solar PV system features, tax benefits may be applicable to the roof upgrade or a portion of the roof upgrade and could potentially be included in the projected economic analysis. However, in all cases, the building owner(s) should prepare to consult a tax accountant/attorney to more accurately identify proposed tax benefit values.

Who determines the value MACRS?

The value of the MACRS needs to be provided by the prospective owner or his/her accountant.

What can be done to increase a preliminary SIR that is less than 1.0?

There are many factors that can be adjusted, including cost, anticipated energy production, the potential use of tax credits, MACRS depreciation, and utility incentives. In addition, an owner can directly invest in a project to reduce the financed amount and thereby increase the SIR. The program administrator can model different scenarios to find one that will appeal to the owner and the mortgage holder.

How do I deal with the inverter warranty over the finance term?

The cost of the inverter (extended) warranty should be included in the cost of the project.

Can the program administrator help me prepare a Pre-Qualification Submission Form?

Yes, the program administrator can and will assist in the preparation of a Pre-Qualification Submission Form, if needed.

Can I use a different solar PV electricity production model than PVWatts?

Yes. For more information, refer to the Solar Feasibility Study section in the Colorado C-PACE  Program Guide or email jason@coloradocpace.com.

Will the program administrator attend meetings with the building owner?

Yes. The program administrator routinely attends meetings with building owners and their contractors to support the program and respond to C-PACE related questions.

What do you consider a reasonable de-rate factor for the solar PV model?

0.5 percent. A proposed de-rate factor that is less than 0.05 percent must be supported by data from the system’s manufacturer. In consultation with the solar contractor, any such proposal will be reviewed and either approved, modified or rejected by the program administrator.

Can I use the ITC and MACRS even if I have a utility incentive?

Yes.

What should the commissioning plan include?

A project commissioning effort is intended to confirm that the proposed improvements have been installed according to manufacturers’ guidelines and that the system will perform as expected. The program recommends that contractors prepare a Commissioning Plan, perform commissioning, prepare a Commissioning Report and submit these to the owner and the program administrator for more complex projects. It should include as-built drawings, O&M manuals for each improvement, and a narrative that is appropriate for the size and complexity of the project.

Can Colorado C-PACE finance a battery energy storage system with the solar PV system?

Yes.

Why does the Colorado C-PACE program require the submission of solar system components cut-sheets?

The program administrator relies on cut-sheet data, which is combined with other project data included in the solar feasibility study, to confirm a project’s eligibility.

What is the program administration fee that will be added to each project?

Colorado C-PACE is designed to be self-sustaining. To ensure that the program fees charged to program participants are sufficient to cover the operating costs associated with administering the program, a one-time fee equal to 2.5% of the project finance amount (not to exceed $75,000 per project, with a minimum fee of $5,000 per project) will be assigned to each C-PACE project. The program administration fee is typically included in the total financed amount.

Are there any other fees associated with C-PACE?

Colorado state statute requires each property owner to submit a commitment of title insurance (satisfied by a limited property information guarantee (LPIG)) ordered by the program administrator. The cost of the LPIG title product is available in the Resources section of the program website, and this cost will be included in the project finance amount. The District will also include a $600 closing fee and recording fees. Capital providers may also include legal or closing fees specific to each project that will be included in the project finance amount.

What are ineligible measures, and will C-PACE finance them?

In general, ineligible measures are those that a) are not permanently affixed to the property and b) cannot be expected to save energy or water or generate renewable energy. Read our technical brief for a more detailed definition of ineligible measures and whether they can be included in the C-PACE financing.

My county does not have zoning laws. How can I determine if my property is eligible for the C-PACE program?

The Colorado C-PACE program encourages participation from rural communities. Read this technical brief for information on how to proceed in an area with no zoning laws.

Are public buildings eligible for C-PACE?

They may be. Read this technical brief for detailed information, or contact the program administrator directly for an evaluation of your building.

Can projects be financed retroactively through C-PACE?

Yes. New construction and gut-rehab projects are eligible for C-PACE financing within 24 months from the certificate of occupancy. Refer to the Program Guide for additional details.

How are the energy savings calculated for proposed ECMs?

The methodology for the savings projections is determined during the project development stage. In most cases, an ASHRAE Level I or II Audit will suffice. For single ECMs, such as a boiler replacement, the required documentation can be less comprehensive; however, it should facilitate an SIR calculation. For more information, refer to the C-PACE Program Guide. As is the case for all new programs, a learning curve is expected. Therefore, the program administrator will provide tools and support to streamline the project submission, review and approval process. Regardless of the audit level, energy use data collection should comply with the ASTM E2797-15 Building Energy Performance Assessment (BEPA) Standard. Refer to Audit Requirements section of the Colorado C-PACE Program Guide.

How do I estimate the baseline energy use for a building that is partially vacant?

This scenario requires modeling. For specifics, email jason@coloradocpace.com.

Can a non-energy-saving measure be financed?

Yes, provided it is related to a specific ECM. For instance, a roof or structural repair needed to support a solar system would be eligible. However the costs for such work will be added to the costs of the solar installation and these additional costs will reduce the SIR.

What building simulation model should I use to determine the energy savings in a multi-ECM project?

The most common include DOE’s eQuest and EnergyPro, although other models such as Trane’s Trace 700 and Carrier’s HAP model are also acceptable.

Should the energy savings be evaluated over the estimated system lifetime rather than just over the finance term?

Energy savings are calculated over the expected useful life of the specific ECM. In projects that incorporate multiple ECMs, the weighted useful life of the multiple ECMs is calculated and used to determine the maximum allowable finance term.

Why does the Colorado C-PACE program require the submission of ECM cut-sheets?

Cut sheets provide a wealth of data from the manufacturer of the ECM. This data, when combined with other project data, is used by the program administrator to confirm project eligibility.

Are beneficial electrification projects eligible?

Beneficial electrification (or strategic electrification) projects are projects that involve the replacement of systems involving direct fossil fuel use (e.g. natural gas, propane, heating oil) with systems using electricity only. Beneficial electrification projects provide a path to buildings and systems supplied with energy from renewable energy production sources as opposed to energy production sources or systems that rely on fossil fuel use, resulting in overall emission reduction. If a beneficial electrification project is the only improvement being considered, it is subject to the C-PACE statutory requirements and must demonstrate a reduction in energy consumption or an energy cost savings to be eligible. If beneficial electrification represents one of a number of improvements, if the overall project (all improvements collectively) demonstrates a reduction in energy consumption or an energy cost savings, the electrification measure is eligible as part of the portfolio of improvements.

What are the benefits of long-term Colorado C-PACE financing to building owners?

While many buildings need upgrading, until C-PACE, building owners had no good way to pay for it. C-PACE solves the financial issues associated with a building modernization project by providing 100 percent financing that is long-term, non-recourse, and affordable. Since the financing is based on the building’s financial health, the owner is not required to sign a personal guarantee. Once a project is complete, the building owner has a more valuable, more competitive building, lower utility bills, a more sustainable property, and, often, a higher net operating income if the project was designed to be cash-flow-positive.

My building needs equipment replaced. Is it beneficial to add other improvements at the same time?

When you need to replace a roof, boiler, or other piece of equipment, it’s usually an unwanted expense. Add lighting or other measures that have better paybacks, though, and you may save enough on your utility bills to pay for the entire project. How do you know which measures make sense? Contact the C-PACE program director or a to learn more.

What’s the difference between a contractor and a C-PACE project developer?

A contractor typically focuses on one or two aspects of energy efficiency or renewable energy, such as lighting, HVAC, or solar, for example, and can recommend and install the upgrades you need. A C-PACE project developer, on the other hand, focuses on comprehensive retrofit projects. These firms will take a look at your entire building and model different project scenarios to help you determine which energy upgrades make sense and how best to finance the project. Call a contractor if you know what your building needs and it encompasses only one or two measures. If you’re considering overhauling your building, though, a C-PACE project developer is probably the best place to start.

How do I know if my county is participating in the Colorado C-PACE program?

Visit the Participating Counties page for a current list of counties participating in the Colorado C-PACE program. Colorado C-PACE may only accept Pre-Qualification Submission Forms from property owners located in counties that have joined the program by passing a simple opt-in resolution. Email jason@coloradocpace.com if you have questions about getting your county to join Colorado C-PACE.

Does Colorado C-PACE use taxpayer dollars to fund projects?

No. Colorado C-PACE uses private capital to fund projects. Visit Capital Providers page the for a current list of capital providers participating in the Colorado C-PACE program. The costs to administer the program is paid by program participants through a program administration fee that is included in the total cost of each project.

Are Colorado C-PACE assessments considered “off balance sheet”? Is there clarity on the treatment of C-PACE assessment payments as an operating expense from the perspective of the accounting industry?

Building owners are encouraged to consult their accountants on this matter.

From an accounting perspective, have any auditing firms concluded that the tax lien (which supports the financing) is not a liability of the owner or the building?

There has been no specific ruling by the Financial Accounting Standards Board on this issue.

When is the Colorado C-PACE assessment recorded on the property?

Upon closing of Colorado C-PACE financing, the program administrator instructs the county tax assessor to record an assessment (lien) on the county land records.

Is this a voluntary program?

Yes. Owners who choose not to participate remain unaffected.

How do building owners qualify for financing?

Qualifying for C-PACE financing is based on the property, and not the owner. The C-PACE program administrator will look at:

• The property’s estimated market value (assessed or appraised)
• The amount of the owner’s equity in the property
• The owner’s recent mortgage and property tax payment history
• The dollar value of the proposed energy and/or water-saving improvements.

How much can a building owner borrow using Colorado C-PACE financing?

C-PACE projects typically range from $200,000 to more than $1 million. Constraints on the amount are driven by the financial health of the building and include:

• Building financials
• Loan-to-value percentage (<80% LTV is preferred)
• Other considerations of the mortgage holder.

What are typical Colorado C-PACE financing interest rates?

To ensure the best possible terms, including interest rate and other fees, the building owner can review term sheets from multiple private capital providers, facilitated by the program administrator, to select the best fit.

How is the length of the repayment period determined?

The total amount available to finance a new construction project in Colorado under C-PACE remains up to 20 percent of the total eligible construction costs. The term of the financing can be extended for up to 25 years. For existing building retrofits, the maximum term will still be limited by the weighted average effective useful life of the equipment and can range typically from 10, 15, or up to 25-year terms. Only single measure projects with EULs of 25 years or greater would be able to take advantage of the longer 25-year term, items like roof replacement, solar PV, and elevator modernization projects.

How are tax credits, rebates, and utility incentives incorporated into Colorado C-PACE Financing?

Property owners are encouraged to pursue available federal investment tax credits (ITC), utility rebates, and all other available incentives. All or a portion of total incentives may be subtracted from the amount financed under the C-PACE program.

Are there fees associated with pre-payment of a Colorado C-PACE assessment?

Each C-PACE participating private capital provider sets its own terms, including pre-payment, in its financing agreement with the building owner. It is common for C-PACE capital providers to include a pre-payment fee schedule.

Can I use any contractor?

Yes, however it is important that your contractor become a Colorado C-PACE registered contractor. For more information on the registered contractor process, refer to the Colorado C-PACE Program Guide or email jason@coloradocpace.com.

Is there a submission fee for Colorado C-PACE?

No. There is no fee to submit a Pre-Qualification Submission Form for Colorado C-PACE financing.

How do I apply for Colorado C-PACE?

To apply, simply send a Pre-Qualification Submission Form completed and email jason@coloradocpace.com.

What is the County Servicing fee?

For the billing and collection support services rendered, the county will collect a servicing fee (not to exceed 1 percent of the periodic C-PACE assessment payments) to be paid by the property owner over the term of the C-PACE financing in the normal course of paying their property tax bill.

What is a C-PACE project developer, and do I need one?

Like the name suggests, a C-PACE project developer is a full-service firm experienced in C-PACE project development, which includes energy and financial modeling. Contact a C-PACE project developer if you’d like to discuss how C-PACE financing can fit into your capital stack, and the steps you need to take to qualify for financing.

How do I apply for Colorado C-PACE financing for my project?

To apply for Colorado C-PACE financing, download the from the developers “how it works” page of this website. Upon Pre-Qualification Submission Form completion, submit the completed form and all attachments via email to jason@coloradocpace.com.

Are C-PACE assessments considered off-balance sheet?

Developers are encouraged to consult their accountants on this matter.

Is there clarity on the treatment of C-PACE as an operating expense from the perspective of the accounting industry?

Developers are encouraged to consult their accountants on this matter.

How do developers qualify for financing?

Developers must design their buildings to meet or exceed IECC 2018 to qualify for Colorado’s C-PACE program.

What are the benefits of C-PACE financing for developers?

C-PACE financing allows developers to access affordable, fixed-rate, non-recourse financing for up to 20 percent of their total eligible construction cost, provided they design their building to meet or exceed IECC 2018. In addition, there is no out-of-pocket expense upfront and a personal guarantee is not required. The money can be used to reduce the developer’s equity contribution or other forms of high-cost capital, and the builder ends up with a more efficient, more valuable, and more competitive building.

What is C-PACE for new construction?

Colorado commercial property assessed clean energy (C-PACE) is an innovative new financing mechanism that allows real estate developers to access affordable, long-term, non-recourse financing for the installation of energy efficiency and renewable energy measures in new buildings. The fixed-rate financing is provided by private capital providers through an open-market model to enable competitive rates and terms, and is repaid through a voluntary assessment that is recorded on the property (similar to a sewer assessment) that can extend up to 25 years. You can access Colorado C-PACE financing for up to 20 percent of your building’s total eligible construction cost if you design the building to exceed the 2018 International Energy Conservation Code (IECC) by 5 percent or more. (Meet IECC 2018 and still receive 15 percent.) Repayment is facilitated through the municipal property tax assessment process.

What is the role of the mortgage holder?

Colorado C-PACE project financing is repaid via a voluntary assessment (lien) placed on the property by the County tax assessor and assigned to the financial institution that provides financing for the energy efficiency improvement project. Since the Colorado C-PACE assessment has priority lien status, similar to a sewer assessment, the existing mortgage holder will be asked to provide its consent to the Colorado C-PACE financing. Such consent is entirely voluntary on the part of the mortgage holder.

How does the mortgage holder participate in the Colorado C-PACE project development process?

There are multiple steps that will involve the mortgage holder:

1. Once a building owner determines that a building modernization project may enhance their building’s asset value (collateral) and cash flow (improved mortgage repayment ability), the program administrator and/or the owner will seek a preliminary meeting with the mortgage holder to review the opportunity.
2. At this first meeting, the owner and the C-PACE program administrator will describe the program’s requirements and answer any questions. In particular they will discuss the third-party technical review process to validate the projected energy savings and related key financial metrics associated with the project.
3. Assuming the mortgage holder does not object, the Colorado C-PACE program administrator will collaborate with the owner and the owner’s C-PACE registered contractor to develop and optimize the project to ensure it meets program requirements. See C-PACE Program Guide for more information.
4. The project development and optimization process includes the creation of a Colorado C-PACE Project Finance Report. This report is the culmination of a comprehensive process that includes input and reviews by the owner, contractor and the program administrator. The end product is a carefully designed, optimized project that meets all the requirements of the program.
5. At a second meeting with the mortgage holder this Project Finance Report will be reviewed in detail and a formal request for consent will be made by the owner.

Why have mortgage holders embraced well-designed Colorado C-PACE projects?

The majority of Colorado C-PACE projects generate positive cash flow based on the energy savings. For this reason Colorado C-PACE projects typically have a positive impact to a mortgage holder’s key questions – what is the project’s impact to:

• Borrower’s repayment ability
• Collateral value?

To support mortgage holder project evaluations, the Colorado C-PACE program administration team provides an independent third-party review of the technical and financial projections. Such review is consistent with industry best-practice methodology as defined in the Green Building Certification Institute’s Investor Confidence Project protocol. Moreover, the Colorado C-PACE team leverages its proven project optimization tools and extensive project-experience databases to facilitate quality assurance across the project development life cycle. Given the cash flow generating characteristics of Colorado C-PACE projects, over fifty mortgage lenders in Colorado have consented to Colorado C-PACE projects. See a list of C-PACE Consenting Mortgage Holders in Colorado.

What happens if the building owner is in default of their Colorado C-PACE assessment payment?

Under the Colorado C-PACE Statute (C.R.S. 32-20-101 et seq.), the C-PACE special assessment is subject to the same penalties and the same procedures (up to and including a tax lien sale) in the case of delinquency as is provided for through ad valorem (i.e. property) taxes. The C-PACE assessment has priority over all private liens on the property, is of equal priority to other special assessments, and is junior in priority to general property taxes.

What are responsibilities for a county participating in the Colorado C-PACE program?

The Colorado C-PACE program is designed to utilize the county’s existing method for the billing and collection of property taxes. Upon a C-PACE project finance closing the program administrator will request the county tax assessor to place the C-PACE Assessment on the county property tax roll for the participating property. In advance of the county’s normal property tax billing cycle, e.g. semi-annually, the program administrator will provide to participating counties a list of all C-PACE assessments and the associated billing amount to be included on the building owner’s tax bill. Upon collection of the C-PACE assessment payment, the county will transfer the C-PACE assessment related funds into a C-PACE Program account. The program administrator will then disburse the funds to the appropriate private capital provider that financed the project.

What are the benefits of the Colorado C-PACE program to participating counties?

The Colorado C-PACE Program is designed to empower commercial and industrial building owners to modernize their building energy infrastructure, lower energy use and costs, increase building comfort and asset value – with no upfront costs. These Colorado C-PACE financed projects also advance participating counties’ public policy goals to:

• Create local jobs
• Reduce greenhouse gas emissions
• Increase renewable energy deployment.

These Colorado C-PACE Program public-private partnership generated local economic development impacts require no taxpayer funds, as Colorado C-PACE projects are all financed by private capital providers.

What are the costs to County governments?

The Colorado C-PACE Program is designed to utilize a county’s existing method for the billing and collection of property taxes. Therefore, C-PACE expects minimal administrative costs to be incurred by participating counties. Nevertheless, the program has provided for a surcharge, of up to 1 percent of the Colorado C-PACE assessment amount billed and collected on each property tax bill, to help offset any incremental costs incurred by the county in its normal tax billing and collections process.

How does a county become eligible to participate in the Colorado C-PACE program?

In order to become eligible, C.R.S. 32-20-105(c) requires the Board of County Commissioners to adopt a resolution authorizing the District to conduct the Colorado C-PACE program within that county. In addition, the resolution must authorize the county to enter into the NEID-County Participation Agreement with the District. Once the county and the District sign that agreement, that county will be part of the Colorado C-PACE program, and projects located within that county may be funded using Colorado C-PACE financing. Visit the Counties & Government “How it works” page of this website to download the NEID-County Participation Agreement. Upon completion, submit the Participation Agreement via email to jason@coloradocpace.com.

Will Colorado C-PACE support counties who wish to participate in outreach and education efforts?

Yes, please contact the program administrator via email jason@coloradocpace.com at to arrange a meeting to discuss outreach and education efforts in your county.

How is a Colorado C-PACE assessment repaid?

Colorado C-PACE assessment repayment is managed through a new line item on the building’s property tax bill. Typically the C-PACE assessment annual payments are less than the annual dollar value of the energy saved. As a result such projects are typically cash flow positive to the owner in the first year.

What are the risks associated with Colorado C-PACE financings?

If a building owner is deficient or delinquent on their C-PACE assessment, Colorado C-PACE is not responsible to cover the shortfall. As a C-PACE assessment is associated with the property, not the building owner, in the case of a non-payment, the assessment (which is a priority lien) will fall into arrears and be repaid after all other taxes are satisfied and prior to any outstanding mortgage.

In the event of a bankruptcy, how is recovery money allocated?

Municipal liens related to real property have first priority, followed by any Colorado C-PACE payments in arrears, followed by non-real property municipal liens and assessments, followed by the first mortgage holder.

How is the program marketed to contractors and building owners?

The Colorado C-PACE program administrator will actively engage with building owners, contractors, mortgage holders and capital providers to raise program awareness. In addition, the program administrator will provide county governments (and others) with educational material, including:

• Data on eligible building types,
• Marketing material, and
• In-depth training for contractors seeking to develop projects for building owners.

How does a building owner apply for Colorado C-PACE financing for their project?

To apply for Colorado C-PACE financing, download the from the building owners’ “how it works” page of this website. Upon Pre-Qualificaton Submission Form completion, submit the completed form and all attachments via email to .

What property types are eligible for Colorado C-PACE financing?

Commercial, industrial, agricultural, non-profit and multifamily (with five or more units) properties are eligible to participate in the Colorado C-PACE program. Colorado C-PACE financing is only available for buildings that are located in a county that has opted to participate in the program.

How does a County become eligible to offer Colorado C-PACE financing?

In order to become eligible, C.R.S. 32-20-105(c) requires the Board of County Commissioners to adopt a resolution authorizing Colorado’s New Energy Improvement District (NEID) to conduct the Colorado C-PACE program within that county. In addition, the resolution must authorize the county to enter into the NEID-County Participation Agreement with the District. Once the county and the District sign that agreement, that county will be part of the Colorado C-PACE program, and projects located within that county may be funded using Colorado C-PACE financing.

How do I know which counties are participating in the Colorado C-PACE program?

Visit the of this website for a current list of Counties participating in the Colorado C-PACE program. C-PACE may only accept Pre-Qualification Submission Forms from property owners located in counties that have joined the program by passing a simple opt-in resolution. Feel free to email if you have questions about getting a non-participating county to join Colorado C-PACE.

Who provides the financing?

Funding for C-PACE financing is provided by private capital providers, which may include banks, specialty financiers, institutional investors, insurance companies, or other capital providers.

How much can a building owner finance with Colorado C-PACE?

Colorado C-PACE projects typically range from $200,000 to over $1.0 million. There are no C-PACE program-defined minimum or maximum project financing size limitations. Rather each participating capital provider is expected to set their own financing parameters.

How do I become a Colorado C-PACE Qualified Capital Provider?

Colorado C-PACE has been designed with an open source funding model that allows for any qualified capital provider to participate in funding eligible C-PACE projects. In order to participate in a project funded through Colorado C-PACE, capital providers must meet eligibility criteria set forth by the program. Criteria is defined in a Capital Provider Application and Participation Agreement. Colorado C-PACE encourages capital providers to take steps toward program eligibility prior to submitting a specific project application.

How is the Colorado C-PACE assessment financing secured?

Repayment of the Colorado C-PACE financing is secured by a special assessment (similar to a sewer district or business improvement district assessment) recorded in the property records of the county in which the participating property is located.

What happens if the property is sold?

Because the Colorado C-PACE assessment obligation runs with the property, the assessment has the ability to transfer to the next property owner if the property is sold. C-PACE assessments are billed on the property tax bill with payments due at the same time as property tax payments, thus many observers view PACE financing as less risky than commercial loans, which could generate attractive interest rates and longer terms from the private sector.