(a) A local government may establish a C-PACER program and exercise all powers granted under this chapter.
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Terms Used In Tennessee Code 68-205-104

  • Commercial property: means :
    (A) Privately owned commercial, industrial, or agricultural real property. See Tennessee Code 68-205-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Financing: means financing and refinancing for qualified projects under this chapter. See Tennessee Code 68-205-102
  • Local government: means a county, metropolitan government, municipality, or other political subdivision of this state. See Tennessee Code 68-205-102
  • program: means a commercial property assessed clean energy program established under this chapter. See Tennessee Code 68-205-102
  • Program administrator: means the entity designated by a local government to administer a C-PACER program, including:
    (A) A department or individual within a local government. See Tennessee Code 68-205-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Property owner: means the owner or owners on title, duly recorded, of a commercial property. See Tennessee Code 68-205-102
  • Qualified improvement: means a permanent improvement installed and affixed to commercial property and intended to:
    (A) Decrease energy consumption or demand through the use of efficiency technologies, products, or activities that reduce or support the reduction of energy consumption. See Tennessee Code 68-205-102
  • Qualified project: means a project approved by the program administrator, involving the installation or modification of a qualified improvement, including new construction or the adaptive reuse of eligible property with a qualified improvement, and including qualified improvements installed no more than two (2) years prior to the date of application. See Tennessee Code 68-205-102
  • Record owner: means the owner listed on the property's legal documents on file or the owner of an estate for years created pursuant to a written ground lease agreement or similar agreement. See Tennessee Code 68-205-102
  • Region: means a geographical area as determined by a local government pursuant to §. See Tennessee Code 68-205-102
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b)

(1) The local government shall designate a region within its boundaries as an area in which C-PACER activities are eligible.
(2) If the local government is a county, then the region designated may encompass the whole of the unincorporated and incorporated areas inside the county’s boundaries.
(c) Except as otherwise provided in subsection (g), a local government that establishes a program, or establishes a program through its designee, including the program administrator, may enter into a written assessment contract with a property owner to establish a voluntary assessment to repay the owner’s financing of a qualified project on the owner’s property as long as the conditions set forth in § 68-205-103 are met.
(d) A local government may administer a program, delegate administration pursuant to § 68-205-107, delegate administration to the program administrator, or delegate administration to a single, independent, and qualified third party for all C-PACER assessments within the region as identified in subsection (b).
(e) If the program provides for third-party administration, then the local government official authorized to enter into a written contract with a property owner pursuant to subsection (c) shall also enter into a written contract with the program administrator. The contract must require the third party to reimburse the local government for costs associated with monitoring the program, imposing the assessment, and billing and collecting payments on behalf of the third party.
(f) The financing for assessments imposed may include, but is not limited to:

(1) The cost of materials and labor necessary for the installation or modification of a qualified improvement;
(2) Permit fees;
(3) Inspection fees;
(4) Lender fees;
(5) Program application and administrative fees;
(6) Project development and engineering fees;
(7) Interest reserves;
(8) Capitalized interest, in an amount determined by the owner of the commercial property and the third party providing financing under this section; and
(9) Other fees or costs incurred by the property owner incident to the installation, modification, or improvement on a specific or pro rata basis, as determined by the local government.
(g) Prior to entering into the written assessment contract, the local government shall require each record owner to consent to the assessment, which may be executed in the owner’s sole and absolute discretion, and acknowledge in writing that the owner may be responsible for the payment of any remaining principal balance of the assessment upon the sale of the property unless the remaining balance is assumed by the acquiring property owner.
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