MFFA, Commerce Announce New Financing Program for Montana Businesses to Receive Energy Efficiency, Water Conservation, and Renewable Upgrades
HELENA – Today, the Montana Facility Finance Authority (MFFA) and the Department of Commerce announced a new financing program for businesses to save money by installing energy efficiency, water conservation, and renewable upgrades to their buildings.The Commercial Property Assessed Capital Enhancements program (C-PACE), administered by the MFFA, began on January 1, 2022. C-PACE financing lets business owners use the savings from energy and water efficiency upgrades to cover the cost of installation, allowing them to make major upgrades to their facilities at no net cost to the business. The cost of these upgrades is repaid as an assessment on the property's annual tax bill, which allows for cheaper financing and better collateral. “The annual energy savings for C-PACE projects are designed to exceed the annual assessment payment, so property owners save money from the start of the program,” MFFA Executive Director Adam Gill said.
Last year, Governor Greg Gianforte signed C-PACE into law, which authorized MFFA as the statewide administrators of the program under MCA 90-4-13. “C-PACE is an exciting financing tool that allows property owners to secure up to 100% up-front financing for energy efficiency, water conservation, and renewable energy upgrades to their commercial buildings,” Commerce Director Scott Osterman said. “C-PACE has the potential to create jobs, stimulate local economies, and strengthen communities across Montana,” Osterman added.
Montana joins the ranks of states including Minnesota, Washington, Texas, and Utah to provide this type of financing structure to businesses; more than 37 states have approved C-PACE financing. In the past ten years, $4 billion of C-PACE financing was used nationally.
For more information about C-PACE loans, eligibility guidelines, and how to apply, click here.
BACKGROUND: The MFFA was created by the 1983 Legislature and administratively attached to the Montana Department of Commerce. It is governed by a seven-member quasi-judicial board. No public funds or tax monies are appropriated to MFFA – it is funded entirely by proprietary funds with revenues collected from interest, fees, and charges from participating institutions. MFFA was created to help healthcare and related facilities contain future healthcare costs by offering financing at low-cost, tax-exempt interest rates. These cost savings are shared with the consumer in the form of lower facility charges.
Tags: Montana Facility Finance Authority