Vermont's Green Leap: C-PACE Bill to Fuel Clean Energy Investment

MONTPELIER, VT – May 15, 2026 – After years of bipartisan effort, Vermont is poised to launch a powerful new tool to boost its economy and advance its clean energy goals. A landmark bill establishing a Commercial Property Assessed Clean Energy (C-PACE) program has cleared its final legislative hurdle and now awaits the governor's signature. The measure, which was incorporated into the omnibus economic development bill S.327, will enable commercial, industrial, agricultural, and multifamily property owners to access 100% private financing for energy efficiency, renewable energy, and climate resilience projects.

Sponsored by Sen. Thomas Chittenden, the legislation passed with strong bipartisan support, culminating on May 14 when the Senate concurred with the House's amendments. This move sends the bill to the governor's desk, marking a significant milestone that aligns Vermont with more than 40 other states that have successfully leveraged C-PACE to finance billions in sustainable upgrades.

A No-Taxpayer-Cost Economic Engine

At its core, C-PACE is a public-private partnership designed to stimulate private investment without placing any burden on taxpayers. The program allows property owners to fund qualifying projects with long-term, fixed-rate financing from private capital providers. This debt is then repaid over a period of up to 30 years through a voluntary special assessment added to the property's tax bill.

“C-PACE VT will provide powerful economic benefit as a public asset tool that operates at zero cost to taxpayers to injects lower cost capital for sustainable construction to drive development,” said Michele Pitale, Head of C-PACE at CounterpointeSRE, a leading national C-PACE provider.

Projections reviewed by the Vermont Department of Economic Development anticipate a significant statewide impact. The program is expected to unlock hundreds of millions of dollars in private capital over the coming years, creating a powerful multiplier effect across the state's economy. National data supports these projections; as of 2023, C-PACE programs across the U.S. had already generated over $6.9 billion in investment and created an estimated 86,500 job-years in fields like construction, engineering, and green trades. By adopting this proven model, Vermont aims to generate similar growth, reduce commercial energy costs, and improve its overall economic competitiveness.

Empowering Vermont's Commercial Sector

The direct beneficiaries of C-PACE will be Vermont's property owners, who gain access to a flexible and affordable way to overcome the high upfront costs of major building upgrades. The program covers a wide array of projects, including modern HVAC systems, LED lighting, solar panel installations, high-efficiency windows, building envelope improvements, and water conservation measures.

Because the financing can cover 100% of project costs and is repaid over the long term, the annual energy savings generated by the upgrades often exceed the annual C-PACE payment, making projects cash-flow positive from the start. Furthermore, the assessment is tied to the property, not the owner. If the property is sold, the repayment obligation automatically transfers to the next owner, who continues to benefit from the building's improved performance and lower operating costs. This structure encourages investment in long-term resilience and efficiency that might otherwise be deferred.

The legislation is also expected to support a wide range of development, from new multifamily housing solutions to complex adaptive-reuse projects, such as the proposed transformation of the Greatwood Farm creative campus at Goddard in Plainfield.

Navigating the C-PACE Landscape

While the program offers substantial benefits, its structure includes important considerations for both property owners and lenders. The C-PACE assessment holds a senior lien on the property, meaning it takes priority over other debts, including the primary mortgage. To protect the interests of existing lenders, the Vermont legislation requires their written consent before a C-PACE financing can be approved. This key provision, a standard feature in successful C-PACE programs nationwide, ensures that all financial stakeholders are in agreement.

This commercial-focused program is distinct from Residential PACE (R-PACE) programs, which have faced criticism elsewhere for insufficient consumer protections. Vermont's C-PACE model is designed for sophisticated commercial borrowers and incorporates the crucial safeguard of lender consent. The program will be administered locally, with municipalities choosing to opt-in to make it available in their jurisdictions.

Experienced capital providers are already preparing to enter the Vermont market. CounterpointeSRE, a firm with a track record of financing major projects including a record-setting $255.9 million adaptive reuse in San Francisco and a $156 million film studio in New York City, has been a vocal supporter. “We look forward to partnering in Vermont to help building owners access flexible, long-term financing that accelerates clean energy and resilience upgrades,” said Kurt Pollem, a Managing Director at the firm and a Manchester Center resident.

Aligning with the Vermont Brand

The development of C-PACE in Vermont was a multi-year, collaborative effort involving extensive input from lenders, developers, municipalities, and economic development leaders. This holistic approach ensures the final program reflects core Vermont values of local control, fiscal responsibility, and a commitment to environmental innovation without imposing mandates or new state spending.

Vermont has had limited authority for residential PACE since 2013, but this bill closes a critical gap for the commercial sector, which is a major contributor to statewide energy consumption. By enacting C-PACE, the state not only provides its businesses with a vital tool for growth and sustainability but also strengthens its position as a leader in the green economy.

“This legislation brings together lenders, developers, municipalities, and economic development leaders around a practical, no-taxpayer-cost solution,” said Libby Moyer, communications lead for the C-PACE Vermont working group. “C-PACE VT will deliver immediate economic wins for Vermont businesses while advancing clean energy goals, a true win-win that reflects the best of bipartisan collaboration and the Vermont brand.”