The short answer is No—and here’s why.
As municipalities consider opting in to the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program, one question sometimes arises:
“Do we have the staff capacity to handle the billing, collection, and remittance of C-PACE assessments?”
It’s a fair concern—but in practice, the administrative burden on municipalities is minimal, especially when compared to the program’s substantial benefits in terms of economic development, job creation, energy savings, and climate resilience.
Here’s What Municipalities Actually Do
Under the Garden State C-PACE program, participating municipalities:
- Pass a simple ordinance to opt into the program.
- Add the C-PACE assessment to the tax roll, just like any other special assessment.
- Collect the annual (or semiannual) payment and remit it to the capital provider (lender), as specified in the recorded agreement.
That’s it. The process is repetitive, procedural, and automatable—not materially different from other property tax or assessment functions your finance department already performs.
In fact, the NJ Economic Development Authority (NJEDA), which administers the statewide program, has designed it to be as low-impact as possible for local government staff.
Municipalities Are Compensated
Far from being a burden, municipalities are also authorized to charge a series of administrative fees that cover their time and effort, as specified in the NJEDA Program Guidelines:
| Fee Type | Max Fee |
|---|---|
| Closing Fee | $500–$750 per project |
| Amendment Fee | $250–$350 per change |
| Rebilling Fee | $250 per request |
| Annual Servicing Fee | $500 per year, per project |
These fees are paid by the property owner, not the town. Most municipalities will see just a handful of projects in the early years—especially since all C-PACE projects must pay prevailing wages under NJ law. But for every project that does move forward, the municipality can be compensated for its administrative role.
Why Opting In Is Still a No-Brainer
The cost-benefit balance for C-PACE is overwhelmingly in favor of participation. Here’s what your town gets:
- No taxpayer dollars or municipal credit are at risk
- Private investment in your community’s building stock
- Energy efficiency and climate upgrades for commercial, industrial, and nonprofit buildings
- Job creation and local economic development
- A tool that aligns with your municipality’s climate and sustainability goals
For most towns, participating in C-PACE is like getting a new economic development engine with no fuel cost and very little maintenance.
Still Have Questions?
We understand that every municipality has its own processes and priorities. That’s why NJPACE and other nonprofit partners are here to support your transition and help answer any questions along the way. We’re happy to provide the model ordinances, guidance, and best practices to make the process seamless.
To get started or talk through any concerns, contact us.