HB1819 amends Virginia’s C-PACE (Commercial Property Assessed Clean Energy) statute to expand and clarify how local governments may create and operate financing programs for energy- and resilience-related improvements on commercial property. The bill defines a broader set of eligible improvements, including energy efficiency, water efficiency and safe drinking water, renewable energy, resiliency, stormwater management, environmental remediation, and electric vehicle infrastructure. It also clarifies what properties may participate, expressly including most commercial real estate and certain multifamily, condominium, cooperative, and commercial condominium properties, while excluding residential real estate with fewer than five dwelling units.
The bill authorizes localities to establish C-PACE loan programs by ordinance and sets out required program elements such as eligible improvement categories, funding and repayment terms, administrative fees, and draft contract terms. It permits localities to combine C-PACE payments with utility or property tax billing, requires opportunities for private lenders to participate, and allows local governments to delegate billing and collection to third parties. It also creates a voluntary special assessment lien to secure the loan, gives that lien property-tax-like enforcement tools, and specifies when it may take priority over existing mortgages or deeds of trust, including requiring subordination agreements and proof the borrower is current on obligations.
A major structural change is the creation of a statewide C-PACE sponsor role for the Department of Energy. DOE must select a private program administrator through a competitive process to develop a statewide loan program, and localities may opt into that statewide program by adopting or amending their ordinance and signing a locality agreement within 30 days. The bill also adds procedural requirements such as a public hearing with newspaper notice before adoption of a local ordinance and a priority system for oversubscribed programs that may favor applicants meeting income or assessed-value criteria.
The bill’s impact on state law is to modernize and broaden Virginia’s C-PACE framework, making it easier for localities to finance clean energy, resilience, and related property upgrades while standardizing program administration and lien enforcement. It affects local governments, property owners, lenders, program administrators, and the Department of Energy by expanding eligible projects and properties, clarifying lien mechanics, and creating a statewide program option that could reduce local administrative burdens.
The overall sentiment appears strongly favorable and bipartisan. The bill advanced through committee and floor votes with overwhelming support, including unanimous or near-unanimous votes in several stages and final agreement by both chambers. The main points of potential contention are the lien priority provisions, the use of special assessments that run with the land, and the requirement that mortgage holders consent before a C-PACE lien can take priority over existing debt. There may also be some concern about local administrative complexity, borrower eligibility standards, and the statewide DOE-sponsored model, but the recorded votes suggest these issues did not generate significant opposition.
HB1819 expands and refines Virginia Code § 15.2-958.3 governing C-PACE financing by broadening eligible improvements and eligible properties, authorizing local ordinances to create or join C-PACE loan programs, and establishing detailed rules for program administration, billing, collection, and lien enforcement. It creates a statewide Department of Energy-sponsored program option and clarifies the legal status and priority of voluntary special assessment liens securing C-PACE loans, affecting local governments, commercial property owners, lenders, and program administrators.
The bill was received very positively throughout the legislative process, with strong bipartisan support in subcommittee, committee, and floor votes in both chambers. The near-unanimous votes suggest broad agreement on the policy goal of expanding clean-energy and resilience financing tools for commercial property. No committee transcript was provided, but the voting history indicates little visible opposition.
The most notable policy concerns center on the voluntary special assessment lien and its interaction with existing mortgages and deeds of trust. The bill requires subordination agreements and proof of borrower financial standing before a C-PACE lien can take priority, reflecting sensitivity to lender concerns. Other possible points of contention include the breadth of eligible properties and improvements, the use of local billing and collection mechanisms, and the new statewide DOE-sponsored program structure, though the recorded votes show these issues did not produce substantial legislative resistance.