COMMITTEE ON DISASTER RECOVERY AND 
INFRASTRUCTURE 
05/26/2026-AMENDED AND REPORTED OUT TO THE FLOOR 
04/24/2026-REPORTED OUT TO THE COMMITTEE ON RULES AND JUDICIARY 
 
BILL NO. 
36-0248 
 
Thirty-Sixth Legislature of the Virgin Islands 
 
 
 
February 10, 2026 
 
 
 
An act amending title 29 Virgin Islands Code by enacting the Commercial Property Assessed 
Clean Energy (C-PACE) Act 
 
 
 
PROPOSED BY: 
 
 
Senator Avery L. Lewis 
Sponsors: Marise C. James and Clifford A. Joseph, Sr. 
Co-sponsors: Hubert L. Frederick and Novelle E. Francis, Jr. 
 
WHEREAS, Commercial Property Assessed Clean Energy (C-PACE) is a financing 
1 
mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy 
2 
and hurricane protection improvements to private commercial property; 
3 
WHEREAS, C-PACE is a national initiative, but programs are established locally and 
4 
tailored to meet regional market needs; 
5 
WHEREAS, the C-PACE financing terms are based on the useful life of the 
6 
improvement which can be in excess of 25 years; 
7 
WHEREAS, the C-PACE non-credit based financing can cover 100 percent of a 
8 
project’s costs for property owners; 
9 
WHEREAS, C-PACE financing is secured through a voluntary assessment on the 
10 
property, and has the same priority as other local public benefit assessments; 
11 
WHEREAS, the C-PACE program aims to decrease energy and water costs and 
12 
encourage energy and water sustainability; 
13 
2 
 
WHEREAS, the C-PACE payments run with the property, not the property owner, and 
1 
the assessments are legally transferable upon sale; 
2 
WHEREAS, the Legislature of the Virgin Islands finds that the financing of qualified 
3 
projects through C-PACE special assessments is a valid public purpose; Now, Therefore, 
4 
Be it enacted by the Legislature of the Virgin Islands: 
5 
SECTION 1.  Title 29 Virgin Islands Code is amended by adding a chapter 25 that reads: 
6 
“Chapter 25.  Commercial Property Assessed Clean Energy (C-PACE) 
7 
§1501.  Definitions 
8 
As used in this chapter: 
9 
(1) 
“Assessment contract” means the voluntary agreement between the Government of 
10 
the Virgin Islands and a property owner to place a special assessment on property to secure 
11 
repayment of financing from a capital provider under the C-PACE program. 
12 
(2) 
“Capital provider” means a private third-party entity including its designee, 
13 
successor, and assigns, which makes or funds C-PACE financing or refinancing under this 
14 
chapter. 
15 
(3) 
“Commercial property” means privately owned commercial, industrial, or 
16 
agricultural real property, or privately owned residential real property consisting of five or 
17 
more dwelling units, and includes property owned by nonprofit, charitable, or religious 
18 
organizations. 
19 
(4) 
“C-PACE program” or “program” means a commercial property assessed clean 
20 
energy program established under this chapter. 
21 
(5) 
“Energy Office” means the Virgin Islands Energy Office as established in 3 V.I.C. 
22 
§8. 
23 
(6) 
“Financing” means financing and refinancing for qualified projects under this 
24 
chapter. 
25 
3 
 
(7) 
“Financing agreement” means the contract under which a property owner agrees to 
1 
repay a capital provider for the C-PACE financing, including, details of finance charges, fees, 
2 
debt servicing, accrual of interest and penalties, and terms relating to treatment of prepayment 
3 
and partial payment, billing, collection, and enforcement of the C-PACE financing. 
4 
(8) 
“Owner of record” means the owner listed on the property’s deed, title, or tax 
5 
records or the owner of an estate for years created pursuant to a written ground lease agreement 
6 
or similar agreement. 
7 
(9) 
“Program administrator” means the Virgin Islands Energy Office, or a private 
8 
independent third party designated by the Energy Office; provided, that the administrative 
9 
procedures used conform to this chapter. 
10 
(10) “Program guidebook” means a comprehensive document that illustrates the 
11 
applicable program and establishes appropriate guidelines, specifications, underwriting and 
12 
approval criteria, and standard application forms consistent with the administration of a 
13 
program and not detailed in this chapter, including: 
14 
(A) a form assessment contract between the Energy Office and the property 
15 
owner specifying the terms of assessment under the program, financing provided by a 
16 
third party, and remedies for default or foreclosure; 
17 
(B) a form Notice of Assessment and C-PACE lien; or 
18 
(C) a form Notice of Assignment of Assessment and C-PACE lien between the 
19 
Energy Office and a capital provider. 
20 
(11) “Project application” means an application submitted to the Energy Office for C-
21 
PACE financing, assessment and lien. 
22 
(12) “Property owner” means the owner or owners of record, of a commercial property. 
23 
(13) “Qualified improvement” means a permanent improvement installed and affixed to 
24 
commercial property and intended to: 
25 
4 
 
(A) decrease energy consumption or demand using efficiency technologies, 
1 
products, or activities that reduce or support the reduction of energy consumption; 
2 
(B) support the production of clean, renewable energy, including using a product, 
3 
device, or interacting group of products or devices on the customer’s side of the meter 
4 
that generates electricity, provides thermal energy, or regulates temperature; 
5 
(C) decrease water consumption or demand, increase water conservation and 
6 
storage, and address safe drinking water using efficiency technologies, products, or 
7 
activities that reduce or support the reduction of water consumption or increase the 
8 
storage of water; 
9 
(D) allow for the reduction or elimination of lead from water that may be used 
10 
for drinking or cooking; 
11 
(E) 
increase water or wastewater resilience, through storm retrofits, flood 
12 
mitigation, and stormwater management, or increase wind resistance, energy storage, 
13 
microgrids, and other resilience projects approved by the Energy Office; 
14 
(F) 
improvements and upgrades for compliance with the Federal Americans with 
15 
Disabilities Act of 1990, 42 U.S.C. § 12101 et seq. (1990) ; and 
16 
(G) hurricane resilience and retrofitting. 
17 
(4) 
“Qualified project” means a project approved by the Virgin Islands Energy Office, 
18 
involving the installation or modification of a qualified improvement, including new 
19 
construction or the adaptive reuse of eligible property with a qualified improvement installed 
20 
no more than five years prior to the date of application are eligible as qualified projects. 
21 
§1502.  Program authorization 
22 
(a) 
The Government of the Virgin Islands, through the Virgin Islands Energy Office, 
23 
shall establish a C-PACE program and exercise all powers granted under this chapter. 
24 
5 
 
(b) 
The entire boundaries of the islands of St. Thomas, St. John, St. Croix, and Water 
1 
Island are eligible for C-PACE.  
2 
(c) 
A written assessment contract with a property owner, in conformance with the 
3 
provisions of this chapter, establishing a voluntary assessment to repay the owner’s financing 
4 
of a qualified project on the owner’s property constitutes the valid imposition of a special 
5 
assessment on the property, junior only to a lien for property taxes. 
6 
(d) 
The financing for assessments imposed may include: 
7 
(1) 
The cost of materials and labor necessary for the installation or modification 
8 
of a qualified improvement; 
9 
(2) 
permit fees; 
10 
(3) 
inspection fees; 
11 
(4) 
lender fees; 
12 
(5) 
program application and administrative fees; 
13 
(6) 
project development and engineering fees; 
14 
(7) 
interest reserves; 
15 
(8) 
capitalized interest, in an amount determined by the owner of the commercial 
16 
property and the third-party providing financing under this chapter; and  
17 
(9) 
 
other fees or costs incurred by the property owner incident or ancillary 
18 
to the installation, modification, or improvement on a specific or pro rata basis, as 
19 
determined by the Government of the Virgin Islands. 
20 
(e) 
The written assessment contract constitutes written notice to the owner of record 
21 
that the owner and their successors or assigns may be responsible for the payment of any 
22 
remaining principal balance of the assessment upon the refinance or sale of the property unless 
23 
the remaining principal balance is assumed by an acquiring and successor property owner.  The 
24 
6 
 
Energy Office shall require each owner of record to acknowledge, in writing, the notice as part 
1 
of the execution of the contract. 
2 
§1503.  Program establishment 
3 
(a) 
The Energy Office, in conjunction with the Office of the Lieutenant Governor, shall 
4 
administer the program. 
5 
(b) 
The Energy Office may: 
6 
(1) 
hire and set the compensation of a program administrator and program staff; 
7 
(2) 
delegate or contract for professional or administrative services necessary to 
8 
administer the program on a nonexclusive basis; 
9 
(3) 
If the program provides for third-party administration, then the Energy Office 
10 
official  may enter into a written contract with a property owner under   section 1502(c) 
11 
and shall also enter into a written contract with the party that administers the program,  
12 
which must require the third party to reimburse the Energy Office for costs associated 
13 
with monitoring the program, imposing the assessment, and billing and collecting 
14 
payments on behalf of the third party; and  
15 
(4) 
impose servicing fees to offset the actual and reasonable costs of 
16 
administering a program, a servicing fee for approved applications at a rate of one per 
17 
cent of the total amount financed, not to exceed $50,000, and an application fee of not 
18 
more than $500.    
19 
§1504.  Program terms 
20 
(a) 
The Energy Office shall impose a voluntary special assessment to repay the 
21 
financing of qualified projects on commercial property located in a region. 
22 
(b) 
The Energy Office shall not impose an assessment to repay the financing of the 
23 
purchase or installation of products or devices not permanently affixed to commercial property. 
24 
7 
 
(c) 
The Energy Office shall impose a voluntary special assessment only after a project 
1 
application is approved and the financing transaction closed.  The special assessment is created 
2 
through a written contract between the Energy Office and the owner of record or the owner of 
3 
an estate for years of the property to be assessed, created pursuant to a written ground lease or 
4 
similar agreement.  
5 
(d) 
Before entering into the written assessment contract, the property owner shall 
6 
obtain and furnish to the Energy Office a written statement, executed by each holder of a 
7 
mortgage or deed of trust on the property securing indebtedness, in their sole and absolute 
8 
discretion, that consents to the assessment and indicates that the assessment does not constitute 
9 
an event of default under the mortgage or deed of trust. 
10 
“The property owner shall certify that: 
11 
(1) 
the title of the benefited property is not in dispute; and 
12 
(2) 
the property owner is: 
13 
(A) the legal owner of the benefited property; 
14 
(B) current on mortgage and property tax payments; and 
15 
(C) not insolvent or in bankruptcy proceedings.” 
16 
(e) 
The total indebtedness of the property, including the C-PACE assessment, must not 
17 
exceed 90% of the value of the property, with the exception that properties qualified under the 
18 
federal low-income housing tax credit program set forth in 26 USC. § 42 are exempt from this 
19 
requirement. 
20 
(f) 
The C-PACE assessment must not exceed 35% of the fair market value of the 
21 
property as improved and stabilized, according to a certified appraisal. 
22 
(g) 
The term of the special assessment shall not exceed the weighted average of the 
23 
useful life of the qualified project that is the basis for the assessment. 
24 
§1505.  Application and review 
25 
8 
 
(a) 
The Energy Office, or its third-party designee, shall establish a C-PACE 
1 
application and review process to evaluate project applications for C-PACE financing.  At a 
2 
minimum: 
3 
(1) 
an applicant must demonstrate that the project provides a benefit to the 
4 
public, in the form of energy or water resource conservation, reduced public health costs 
5 
or risk, or reduced public emergency response cost or risk; 
6 
(2) 
for an existing building where energy or water usage improvements are 
7 
proposed, an applicant must provide: 
8 
(A) an energy analysis by a licensed engineering firm, engineer, or other 
9 
qualified professional listed in the program guidebook; and 
10 
(B) a statement by the author of the analysis that the proposed qualified 
11 
improvements will either result in more efficient use or conservation of energy or 
12 
water, or the addition of renewable sources of energy or water; or 
13 
(3) 
Where resilience improvements are proposed, an applicant must provide 
14 
certification by a licensed professional engineer or other qualified professional listed in 
15 
the program guidebook stating that the qualified improvements will result in improved 
16 
resilience; and 
17 
(4) 
For new construction, an applicant must provide certification by a licensed 
18 
professional engineer or engineering firm stating that the proposed qualified 
19 
improvements will enable the project to exceed the current building code requirements 
20 
for: 
21 
(A) energy efficiency;  
22 
(B) water efficiency; 
23 
(C) renewable energy;  
24 
(D) renewable water; or  
25 
9 
 
(E) meet or exceed resilience standards for the local government’s building 
1 
codes or, if none are available, compliance with a nationally available and 
2 
recognized resiliency standard. 
3 
(b) 
The Energy Office, or its third-party designee, shall establish a process for 
4 
reviewing and approving applications for financing.  Alternatively, the Energy Office, or its 
5 
third-party designee, may require a qualified capital provider to certify to the local government, 
6 
in accordance with a process described in the program guidebook, that the property owner and 
7 
the project qualifies for financing within this act and complies with this chapter and the 
8 
program guidebook. 
9 
(c) 
The Energy Office’s duties shall also include: 
10 
(1) 
execution and recording of the written assessment contract between the 
11 
property owner and the USVI, by a duly authorized official, as well as execution and 
12 
recording of the Virgin Islands’ Notice of Assessment and C-PACE lien; and  
13 
(2) 
execution and recording of the assignment of the assessment agreement, the 
14 
Notice of Assessment and C-PACE lien, and Notice of Assignment of Assessment and 
15 
C-PACE lien to the capital provider. 
16 
(d) 
The Energy Office may authorize a capital provider to record executed assessment 
17 
contracts, Notices of Assessment, C-PACE liens, assignments, and related documents on 
18 
behalf of the program to facilitate efficient transaction processing and closing.” 
19 
§1506.  Collection and enforcement 
20 
(a) 
The capital provider providing financing for a special assessment has primary 
21 
responsibility for the billing; collection; and enforcement of the special assessment in 
22 
accordance with the terms of the financing agreement and applicable Virgin Islands law, 
23 
including 28 V.I.C. § 531; unless otherwise agreed to by the Energy Office and the Office of 
24 
the Tax Assessor. 
25 
10 
 
(b) 
The Energy Office may coordinate with the Office of the Tax Assessor for the 
1 
billing, collection, and enforcement of special assessments.  Participation by the Office of the 
2 
Tax Assessor is voluntary.” 
3 
(c) 
After an approved project is completed, an applicant shall provide to the Energy 
4 
Office written verification, as defined in the program guidebook, stating that the qualified 
5 
project was properly completed and is operating as intended. 
6 
(d) 
For any approved project, the capital provider may be subject to an audit regarding 
7 
the assignment of the C-PACE assessment and lien from the Energy Office. 
8 
§1507.  Direct purchase or lease 
9 
Proposed arrangements for financing a qualified project may authorize the property 
10 
owner to: 
11 
(1) 
directly purchase the related equipment and materials for the installation or 
12 
modification of a qualified improvement; or 
13 
(2) 
contract directly, including through lease, power purchase agreement, or 
14 
other service contract, for the related equipment and materials used in the installation or 
15 
modification of a qualified improvement. 
16 
§1508.  Recording 
17 
(a) 
The Energy Office shall execute and record a written Notice of Assessment and C-
18 
PACE lien in the records of the Office of the Recorder of Deeds. The notice must contain: 
19 
(1) 
the amount of the assessment;  
20 
(2) 
the legal description of the property;  
21 
(3) 
the name of each property owner;  
22 
(4) 
a copy of the written assessment contract;  
23 
(5) 
a reference to C-PACE authorizing the placement of the assessment; 
24 
(6) 
the date on which the lien was created;  
25 
11 
 
(7) 
the principal amount of the lien; and 
1 
(8) 
the term of the lien. 
2 
(b) 
The Energy Office may delegate all recording responsibilities under this section to 
3 
the capital provider receiving the assignment. 
4 
§1509.  Lien priority 
5 
(a) 
The entirety of the principal amount of the special assessment is a first and prior 
6 
lien against the commercial property on which the assessment is imposed, from the date on 
7 
which the notice of special assessment, and junior only to a lien for taxes under 33 V.I.C. § 
8 
2331. 
9 
(b) 
The lien runs with the land until paid in full, and that portion of the assessment 
10 
under the assessment contract that is not yet due shall not be accelerated or eliminated by 
11 
foreclosure of a property tax lien under title 33 V.I.C., subtitle 2, chapter 89, subchapter Ill, a 
12 
foreclosure utilizing 28 V.I.C. § 531 et seq., or any other foreclosure in law or equity. 
13 
(c) 
A provision of a deed of trust, mortgage, or other agreement between a lienholder 
14 
and a property owner providing for the acceleration of any payment under the deed of trust, 
15 
mortgage, or agreement solely as the result of entering into an agreement to finance an 
16 
assessment is unenforceable under an executed consent pursuant to section 1505(d).  A 
17 
lienholder or loan servicer may increase the monthly amount held in escrow as required to 
18 
annually pay the assessment. 
19 
§1510.  Prohibited actions 
20 
In administering the C-PACE program, the Energy Office may not: 
21 
(1) 
make the issuance of a permit, license, or other authorization from the Virgin 
22 
Islands to a person who owns property in the region contingent on the person entering 
23 
into a written contract to repay the financing of a qualified project through special 
24 
assessments under this chapter; or 
25 
12 
 
(2) 
otherwise compel a person who owns property to enter into a written contract 
1 
to repay the financing of a qualified project through special assessments. 
2 
§1511.  Non-liability of the Virgin Islands; no full faith or credit 
3 
(a) 
The Government of the Virgin Islands, its officers, and employees are not liable at 
4 
law or equity for actions taken under this chapter, except in cases of gross negligence, 
5 
recklessness, or willful misconduct.  
6 
(b) 
The Government of the Virgin Islands may not use public funds to fund or repay a 
7 
loan between a capital provider and property owner.  This chapter does not pledge, offer, or 
8 
encumber the full faith and credit of the Government of the Virgin Islands for a lien amount 
9 
through a C-PACE program. 
10 
BILL SUMMARY 
11 
This bill amends title 29 Virgin Islands Code by enacting the Commercial Property 
12 
Assessed Clean Energy (C-PACE) Act to provide a mechanism for commercial property 
13 
owners in the Virgin Islands to decrease energy and water costs and encourage energy and 
14 
water sustainability. 
15 
BR25-0609/February 4, 2026/PFA 
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36-808- DRAFTED ON YELLOW.docx 
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