State Sen. McDonald Rivet seeks to expand energy efficiency financing

Michigan Sen. Kristen McDonald Rivet represents the 35th Senate District, which includes parts of Bay, Midland, and Saginaw counties.

The Michigan Senate recently passed legislation introduced by Sen. Kristen McDonald Rivet that would expand the scope of projects and properties eligible for energy efficiency or renewable energy financing.

The legislation would increase access to Commercial Property Assessed Clean Energy (C-PACE), a financing program that allows local government units to contract and finance for environmental hazard projects with more properties in its jurisdiction.

According to the bill report, environmental hazard projects generally include the installation of equipment or materials intended to mitigate environmental hazards like contaminants, floods or severe weather.

"As we continue our efforts to mitigate the effects of PFAS, lead and floods, this legislation expands access to an economic development tool that's both pro-environment and pro-business," said McDonald Rivet (D-Bay City). "More owners will be able to secure their property and achieve savings with this commonsense approach to addressing climate change."

C-PACE uses borrowed capital to pay for the upfront costs associated with energy efficiency or renewable energy improvements. That borrowed capital is repaid over time via a voluntary tax assessment.

McDonald Rivet sponsored Senate Bill 303, which together with Senate Bill 302 - sponsored by Sen. Darrin Camilleri (D-Trenton) - would reduce barriers for property owners to pursue C-PACE financing, expand the program to agricultural property, and make water conservation and environmental remediation projects eligible for C-PACE loans. "Expanding C-PACE will help more Michigan businesses make investments to lower their costs and carbon footprint," McDonald Rivet said. "This is a smart policy for our climate, Michigan businesses and jobs." This step toward C-PACE expansion received bipartisan support in the Senate and praise from environmental and economic stakeholders.

"These common sense bills will make it easier for businesses across Michigan to make cost-effective energy efficiency and renewable energy upgrades," said Dr. Laura Sherman, president of the Michigan Energy Innovation Business Council. "The C-PACE program has a proven track record of success with hundreds of millions in energy savings projects financed so far." For the past decade, local governments across Michigan have used C-PACE to engage with private lenders, building owners and contractors on energy efficient projects. It's a voluntary tool which municipalities may use to establish districts promoting energy efficiency and has measures to ensure transparency and consumer protection including requirements for public hearing and approval. C-PACE financing uses 100% private capital and creates no liability for state or local governments. Commercial property owners are able to use the loans for energy efficiency or renewable energy projects that would otherwise have a high cost up front.