November 01, 2014

PACE Financing Opportunities for Environmental and Energy Lawyers

Art Harrington and Amy Heart

It is a well-settled proposition that the future costs for heating, cooling, electrical, and water needs will continue to increase in the foreseeable future. This upward trend in project utility costs is reinforced by the Clean Power Plan for electrical utilities the US Environmental Protection Agency (EPA) proposed on June 2, 2014. The concern over rising utility costs is driving commercial building owners to consider energy efficiency projects to reduce these utility costs today and provide a hedge against these ever-increasing costs. Efficiency projects would make the building more valuable for current and future owners as well as its tenants. However, many of the energy efficiency upgrade proposals frequently encounter a challenge in the traditional lending markets to finance such projects. The required payback period for such efficiency upgrade projects is frequently too long for such projects to “cost out” under traditional lending practices.

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