Last year, Duprey engaged in a discussion with a lender who inquired about the absence of a C-PACE program in New Hampshire. While Duprey recalled the term vaguely, he sought more details regarding the program.
Upon hearing the lender’s explanation, he recognized its potential to foster the development of multifamily residential buildings, which are urgently needed in the state. By utilizing C-PACE for financing the energy aspects of new construction—such as heat pumps, solar panels, insulation, and energy-efficient windows—developers can secure smaller mortgages for construction, requiring less equity to fund their projects. This, in turn, allows for more financial resources to be allocated toward building additional housing units.
For Duprey, the advantages related to energy efficiency and clean energy are secondary. “This is primarily a loan aimed at facilitating the construction of more housing,” he stated. “Any additional benefits for energy use are just a bonus.”
Subsequently, Duprey prompted the staff at the New Hampshire Business Finance Authority, where he serves as vice chair, to explore the existing C-PACE legislation and analyze its shortcomings. He found that the initial version of the law imposed excessive restrictions on the program, making it less attractive. According to him, municipalities were overwhelmed with administrative responsibilities, and banks were hesitant about a new loan type that would compete with their conventional offerings, as noted by Evans-Brown.
A former chair of the state Republican committee, Duprey initiated outreach to his contacts within the legislature and business sector to develop a comprehensive overhaul of C-PACE that would eliminate these obstacles.
The resulting legislation has received widespread support. Municipalities appreciate that it places the administrative responsibility for C-PACE with the state business finance authority instead of individual cities and towns. To alleviate the concerns of banks, the program will follow a consent model that necessitates approval from the lender holding the first mortgage. Furthermore, banks have accumulated considerable experience with these loans over the past 15 years since the original law was enacted, making them more comfortable with the model now.
On the national stage, 36 states currently have active C-PACE programs, according to data from the nonprofit PaceNation. Last year, these programs attracted $2.42 billion in investments, marking the highest amount on record, the organization reports. In Connecticut, which became the first state to adopt C-PACE in 2012, over $380 million in financing has backed 415 projects, as shared by Mackey Dykes, executive vice president of financing programs for the Connecticut Green Bank, which oversees the state’s program.
“It’s a continuous stream of benefits,” he said. “Without any cost to taxpayers, we are able to achieve these outcomes by leveraging public tools and attracting private lenders.”
The passage of the C-PACE bill in New Hampshire stands out as a rare and welcomed instance of bipartisan collaboration, particularly at a time when climate action contention is high, according to Evans-Brown.
“Isn’t it wonderful to begin the legislative session with something positive?” he remarked.
