Department Of Commerce

Key Parties

Contractors

Contractors and engineers specializing in energy efficiency, water conservation or renewable energy systems for commercial buildings can access new sales opportunities through the Last Best PACE program. It offers property owners low-cost financing for up to 100% of capital needed for efficiency and renewable projects, enabling contractors to implement large-scale upgrades. Contractors can begin by helping property owners with applications and must register with Last Best PACE to share their firm's details.

Register Here

Eligible Projects

Last Best PACE is available to eligible commercial and industrial property owners in participating communities, including commercial, industrial, nonprofit, mixed-use, agricultural and multifamily (5+ units) properties. Government-owned and residential properties with four or fewer units are ineligible.

To qualify, both retrofits and new construction must have an Energy Assessment/Audit completed that meets program guidelines. Retrofit EAs must show cost-effectiveness, with savings equal to or greater than the project's cost over its lifespan. New construction/gut rehab EAs must demonstrate improvements exceeding minimum code requirements. An independent third-party review must also verify the EA findings.

Energy Conservation Projects

C-PACE financing can cover energy conservation measures to reduce energy/water consumption or renewable energy systems.

Eligible equipment includes high-efficiency HVAC, boilers, chillers, water heating systems, lighting upgrades, motors, energy management systems, water management systems and controls, solar panels and more. Improvements must be permanently attached to be eligible for Last Best PACE.

Refer to the Program Guidelines for contractor requirements and the program and financing approval process.

 

Becoming A C-PACE Lender

Last Best PACE operates an open market program allowing property owners to choose their preferred lender for eligible projects. It connects property owners with private lenders offering competitive rates and financing terms and conditions.

Why participate in Last Best PACE?

  • Provides a new lending product for funding commercial and industrial building improvements
  • Creates a pipeline for energy efficiency, water conservation and renewable energy projects
  • Supports investments that reduce operating costs, increase property value and enhance tenant attraction and retention
  • Ensures consistent legal infrastructure, uniform guidelines and community cooperation, with Last Best PACE as the primary point of contact

Local Governments

Montana communities can participate in Last Best PACE, a statewide program that helps commercial property owners save energy and money, create jobs and boost local economies — without taxpayer funding. Through Commercial Property Assessed Capital Enhancements, authorized by Section 90-4-1306, MCA, Montana counties and municipalities can offer access to low-cost, long-term financing for energy efficiency, water conservation and renewable energy projects.

  • Projects create jobs, stimulate investment and reduce building operating costs, thereby boosting local economies
  • Low-interest financing cuts capital costs, lowering overall business expenses
  • Building improvements, such as efficient windows, HVAC and lighting, enhance property values and expand the local tax base

Local benefits

Last Best PACE offers a uniform, statewide program for implementing and providing oversight for C-PACE projects, covering program guidelines, project qualification and oversight. It is easy to adopt in communities due to:

  • No cost to local governments: Local governments incur no financial burden, as the Montana Facility Finance Authority administers the program and recovers costs through project fees.
  • Statewide approach: Uniform standards, documents and best practices apply across the state, simplifying participation for all stakeholders — lenders, contractors and building owners.
  • Centralized administration: MFFA serves as a single access point, enforcing program guidelines and ensuring compliance with statutory requirements and repayment terms.
  • Open market: Any qualified lender or contractor can participate, offering competitive financing and fostering local business support.
  • Voluntary participation: Property owners voluntarily apply to the program, only paying the tax assessment if they choose to improve their property.
  • Lender consent: Mortgage lenders must consent to financings, ensuring project buy-in and economic viability.

how to participate

Last Best PACE is available to commercial property owners in all Montana communities, contingent on the local government’s decision to participate. To opt in, a local government must:

  • Adopt a Resolution of Intent;
  • Hold a public hearing for feedback on the program; and
  • Adopt a Resolution Establishing a Program its terms
DOWNLOAD RESOLUTION OF INTENT TEMPLATE
DOWNLOAD FINAL RESOLUTION TEMPLATE

Local governments do not approve individual projects. MFFA coordinates the Last Best PACE program and supports participating communities. Interested local governments should contact the program directly for more information.

Property Owners

 

Increase Property Values With Affordable Financing For Efficiency Improvements

The average commercial building wastes 30% of its energy, according to the EPA. As energy costs rise and sustainability becomes more important, reducing operating expenses and conserving energy remains a priority for commercial property owners in Montana.

Last Best PACE offers low-cost, long-term financing for energy efficiency, water conservation and renewable energy upgrades, overcoming common barriers to investment!

Apply Now

How It Works

  • Property owners develop energy efficiency, water conservation and renewable energy projects with contractors of their choice.
  • Apply to Last Best PACE to qualify the project.
  • Obtain lender consent from existing debt holders, if applicable.
  • Arrange financing with a qualified lender.
  • If approved, contracts are signed with the C-PACE lender and Last Best PACE program.

Financing Benefits:

  • Up to 100% upfront project costs
  • Long repayment terms (20+ years)
  • Reduced energy consumption and operating expenses
  • Upgraded, more efficient and modern systems
  • Immediate return on investment/positive cash flow
  • Increased net operating income and property value
  • Shared cost and energy savings with tenants (if applicable)