Bill > S0138

This bill expands Vermont's existing Property-Assessed Clean Energy (PACE) program to include commercial and industrial buildings, in addition to residential properties. Currently, PACE allows property owners to finance renewable energy or energy efficiency improvements through a special assessment on their property. The bill defines "commercial or industrial building" as any building that is not a residential dwelling. Under the proposed changes, municipalities can submit to voters the question of designating themselves as a PACE district, and if approved, commercial and industrial property owners can enter into written agreements with the municipality to finance energy-related improvements. These improvements can include renewable energy projects or energy efficiency upgrades. Property owners who participate must meet underwriting criteria established by the Department of Financial Regulation to ensure they can meet the assessment payment obligations. The legislation will take effect on July 1, 2025, providing municipalities and property owners time to prepare for the expanded program. This change aims to encourage energy efficiency and renewable energy adoption in the commercial and industrial sectors by offering an alternative financing mechanism.

Agriculture and Natural Resources

https://legislature.vermont.gov/bill/status/2026/S.138