Commercial Property Assessed Clean Energy Act and Resilience Act; create.

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To: Judiciary A; Ways and
Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Johnson

HOUSE BILL NO. 12

AN ACT TO ESTABLISH THE COMMERCIAL PROPERTY ASSESSED CLEAN 1
ENERGY AND RESILIENCE (C-PACER) ACT, TO ALLOW CERTAIN FINANCING 2
FOR AGRICULTURAL, COMMERCIAL, INDUSTRIAL AND MULTIFAMILY PROPERTY 3
OWNERS TO SEEK LONG-TERM FINANCING FROM PRIVATE LENDERS FOR CLEAN 4
ENERGY RESILIENCY IMPROVEMENTS; TO DEFINE CERTAIN TERMS; TO 5
AUTHORIZE LOCAL GOVERNMENTS TO IMPOSE A VOLUNTARY SPECIAL 6
ASSESSMENT TO REPAY THE FINANCING ON CERTAIN PROJECTS; TO 7
AUTHORIZE SUCH LOCAL GOVERNMENTS TO ESTABLISH A C-PACER PROGRAM AS 8
WELL AS THE BOUNDARIES FOR C-PACER ACTIVITIES ARE ELIGIBLE FOR 9
FUNDING; TO PROVIDE THE TERMS OF A C-PACER PROGRAM; TO PROVIDE 10
THAT LOCAL GOVERNMENTS MAY ADMINISTER A PROGRAM OR DELEGATE THE 11
ADMINISTRATION OF SUCH PROGRAM TO A THIRD PARTY; TO PROVIDE THAT 12
SUCH PROGRAM MUST INCLUDE AN APPLICATION AND REVIEW PROCESS TO 13
EVALUATE PROJECT APPLICATIONS FOR C-PACER FINANCING; TO PROVIDE 14
CERTAIN DUTIES FOR A LOCAL GOVERNMENT THAT ESTABLISHES A C-PACER 15
PROGRAM; TO PROVIDE THAT A LOCAL GOVERNMENT MAY AUTHORIZE 16
FINANCING THROUGH SPECIAL ASSESSMENTS; TO PROVIDE THAT A LOCAL 17
GOVERNMENT MAY AGREE TO JOINTLY IMPLEMENT OR ADMINISTER A C-PACER 18
PROGRAM; AND FOR RELATED PURPOSES. 19
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 20
SECTION 1. (1) This act is known and may be cited as the 21
"Commercial Property Assessed Clean Energy and Resilience Act." 22
(2) It is the intent of the Legislature to authorize the 23
establishment of a commercial property assessed clean energy and 24
storm resiliency (C-PACER) program that jurisdictions may 25
voluntarily implement to ensure that free and willing owners of 26
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agricultural, commercial, industrial, and multifamily residential 27
properties can obtain low-cost, long-term financing for qualifying 28
improvements. By authorizing local governments to adopt C-PACER 29
programs, the Legislature finds that a valid public purpose exists 30
because the use of C-PACER will increase economic development, 31
lower insurance costs, and lower disaster and emergency response 32
and aid costs to local governments. C-PACER programs will also 33
decrease energy and water costs and encourage energy and water 34
sustainability. 35
SECTION 2. (1) As used in this act: 36
(a) "Capital provider" means a private third-party 37
entity, including its designee, successor, and assigns, that makes 38
or funds C-PACER financing, including refinancing, under this act; 39
(b) "Commercial property" means: 40
(i) Privately owned commercial, industrial, or 41
agricultural real property; 42
(ii) Privately owned residential real property 43
consisting of five (5) or more dwelling units, including property 44
owned by nonprofit, charitable, or religious organizations; and 45
(iii) Property owned by this state or a local 46
government entity, but leased to a privately owned entity, 47
including: 48
1. Industrial development corporations; 49
2. Housing authorities; or 50
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3. Health, educational and housing facility 51
boards; 52
(c) "C-PACER program" or "program" means a commercial 53
property assessed clean energy program established under this act; 54
(d) "Financing" means financing and refinancing for 55
qualified projects under this act; 56
(e) "Financing agreement" means the contract under 57
which a property owner agrees to repay a capital provider for the 58
C-PACER financing, including, but not limited to, details of 59
finance charges, fees, debt servicing, accrual of interest and 60
penalties, and terms relating to treatment of prepayment and 61
partial payment, billing, collection, and enforcement of the 62
C-PACER financing; 63
(f) "Local government" means a county, municipality, or 64
other political subdivision of this state; 65
(g) "Program administrator" means the entity designated 66
by a local government to administer a C-PACER program, including: 67
(i) A department or individual within a local 68
government; 69
(ii) A quasi-governmental organization such as an 70
industrial development corporation, housing authority, or health, 71
educational, and housing facility board; 72
(iii) A capital provider; or 73
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(iv) Another private and independent third party 74
designated by the local government, municipality, or other 75
political subdivision of this state; 76
(h) "Program guidebook" means a comprehensive document 77
that illustrates the applicable program and establishes 78
appropriate guidelines, specifications, underwriting and approval 79
criteria, and standard application forms consistent with the 80
administration of a program and not detailed in this act, 81
including: 82
(i) A form assessment contract between the local 83
government and the property owner specifying the terms of 84
assessment under the program, financing provided by a third party, 85
and remedies for default or foreclosure; 86
(ii) A form local government notice of assessment 87
and C-PACER lien; or 88
(iii) A form notice of assignment of assessment 89
and C-PACER lien between a local government and a capital 90
provider; 91
(i) "Project application" means an application 92
submitted for a program to demonstrate that a proposed project 93
qualifies for C-PACER financing and for a C-PACER assessment and 94
lien; 95
(j) "Property owner" means the owner or owners on 96
title, duly recorded, of a commercial property; 97
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(k) "Qualified improvement" means a permanent 98
improvement installed and affixed to commercial property and 99
intended to: 100
(i) Decrease energy consumption or demand through 101
the use of efficiency technologies, products, or activities that 102
reduce or support the reduction of energy consumption; 103
(ii) Support the production of clean, renewable 104
energy, including through the use of a product, device, or 105
interacting group of products or devices on the customer's side of 106
the meter that generates electricity, provides thermal energy, or 107
regulates temperature; 108
(iii) Decrease water consumption or demand and 109
address safe drinking water through the use of efficiency 110
technologies, products, or activities that reduce or support the 111
reduction of water consumption; 112
(iv) Allow for the reduction or elimination of 113
lead from water that may be used for drinking or cooking; or 114
(v) Increase water or waste water resilience, 115
including through storm retrofits, flood mitigation, and 116
stormwater management, or wind resistance, energy storage, 117
microgrids, and other resilience projects approved by the local 118
government; 119
(l) "Qualified project" means a project approved by the 120
program administrator, involving the installation or modification 121
of a qualified improvement, including new construction or the 122
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adaptive reuse of eligible property with a qualified improvement, 123
and including qualified improvements installed no more than two 124
(2) years prior to the date of application; 125
(m) "Record owner" means the owner listed on the 126
property's legal documents on file or the owner of an estate for 127
years created pursuant to a written ground lease agreement or 128
similar agreement; and 129
(n) "Region" means a geographical area as determined by 130
a local government pursuant to Section 4 of this act. 131
SECTION 3. (1) A local government may impose a voluntary 132
special assessment to repay the financing of qualified projects on 133
commercial property located in a region. 134
(2) A local government shall not impose an assessment to 135
repay the financing of the purchase or installation of products or 136
devices not permanently affixed to commercial property. 137
(3) A local government may impose a voluntary special 138
assessment only after a project application is approved. The 139
special assessment must be created through a written contract 140
between the local government and the record owner of the property 141
to be assessed. 142
(4) Prior to entering into the written assessment contract, 143
the record owner shall obtain and furnish to the local government 144
a written statement, executed by each holder of a mortgage or deed 145
of trust on the property securing indebtedness, in the sole and 146
absolute discretion of each holder of a mortgage or deed of trust 147
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on the property, that consents to the assessment and indicates 148
that the assessment does not constitute an event of default under 149
the mortgage or deed of trust. 150
SECTION 4. (1) A local government may establish a C-PACER 151
program and exercise all powers granted under this act. 152
(2) (a) The local government shall designate a region 153
within its boundaries as an area in which C-PACER activities are 154
eligible. 155
(b) If the local government is a county, then the 156
region designated may encompass the whole of the unincorporated 157
and incorporated areas inside the county's boundaries. 158
(3) Except as otherwise provided in subsection (7) of this 159
section, a local government that establishes a program, or 160
establishes a program through its designee, including the program 161
administrator, may enter into a written assessment contract with a 162
property owner to establish a voluntary assessment to repay the 163
owner's financing of a qualified project on the owner's property 164
as long as the conditions set forth in Section 3 of this act are 165
met. 166
(4) A local government may administer a program, delegate 167
administration pursuant to Section 7 of this act, delegate 168
administration to the program administrator, or delegate 169
administration to a single, independent, and qualified third party 170
for all C-PACER assessments within the region as identified in 171
subsection (2) of this section. 172
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(5) If the program provides for third-party administration, 173
then the local government official authorized to enter into a 174
written contract with a property owner pursuant to subsection (3) 175
of this section shall also enter into a written contract with the 176
program administrator. The contract must require the third party 177
to reimburse the local government for costs associated with 178
monitoring the program, imposing the assessment, and billing and 179
collecting payments on behalf of the third party. 180
(6) The financing for assessments imposed may include, but 181
is not limited to: 182
(a) The cost of materials and labor necessary for the 183
installation or modification of a qualified improvement; 184
(b) Permit fees; 185
(c) Inspection fees; 186
(d) Lender fees; 187
(e) Program application and administrative fees; 188
(f) Project development and engineering fees; 189
(g) Interest reserves; 190
(h) Capitalized interest, in an amount determined by 191
the owner of the commercial property and the third party providing 192
financing under this section; and 193
(i) Other fees or costs incurred by the property owner 194
incident to the installation, modification, or improvement on a 195
specific or pro rata basis, as determined by the local government. 196
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(7) Prior to entering into the written assessment contract, 197
the local government shall require each record owner to consent to 198
the assessment, which may be executed in the owner's sole and 199
absolute discretion, and acknowledge in writing that the owner may 200
be responsible for the payment of any remaining principal balance 201
of the assessment upon the sale of the property unless the 202
remaining balance is assumed by the acquiring property owner. 203
SECTION 5. (1) To establish a C-PACER program under this 204
act, the local government must act in the following order: 205
(a) Adopt a resolution of intent that includes: 206
(i) A finding that the financing of qualified 207
projects through special assessments is a valid public purpose; 208
(ii) A statement that the local government 209
intends to authorize direct financing between property owners and 210
capital providers as the means to finance qualified projects; 211
(iii) A local government or its designee, 212
including the program administrator, is authorized to impose fees 213
to offset the actual and reasonable costs of administering a 214
program. The fees may be assessed as part of the program 215
application, to be paid by the property owner requesting to 216
participate in the program. Service fees of approved applications 217
must be calculated as one percent (1%) of the total amount 218
financed, not to exceed Fifty Thousand Dollars ($50,000.00). 219
Service fees retained by a local government or its designee must 220
be placed into a reserve account and utilized for the local 221
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government and assessor-related costs if the local government 222
chooses to exercise its authority under Section 7(4) of this act. 223
If the local government does not choose to exercise its authority 224
under Section 7(4) of this act, then the funds must be placed into 225
an account designated by the local government or its designee; 226
(iv) A description of the types of qualified 227
projects that may be subject to special assessments; 228
(v) A description of the boundaries of the 229
region; 230
(vi) A description of any proposed 231
arrangements for administration of the program, including 232
administration pursuant to this act, to be available; 233
(vii) A description of local government 234
debt-servicing procedures if a third party is responsible for 235
servicing the installment payments on the C-PACER financing, 236
unless delegated pursuant to Section 7(2) of this act; 237
(viii) A statement of the time and place for 238
a public hearing on the proposed program as required in subsection 239
(1)(b) of this section; and 240
(ix) A statement identifying the appropriate 241
local official and the county tax collector for consulting about 242
the collection of proposed special assessments with property taxes 243
imposed on the assessed property; 244
(b) Hold a hearing for the public to comment on the 245
proposed program; and 246
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(c) Adopt a resolution establishing the program and its 247
terms. 248
(2) Subject to the terms of the resolution establishing the 249
program as provided in subsection (1) (3) of this section, the 250
local government may amend a program by resolution. 251
(3) A local government is authorized to impose fees to 252
offset the actual and reasonable costs of administering a program, 253
the fees may be assessed as part of the program application, to be 254
paid by the property owner requesting to participate in the 255
program. Service fees of approved applications must be calculated 256
as one percent (1%) of the total amount financed, not to exceed 257
Fifty Thousand Dollars ($50,000.00). Service fees retained by a 258
local government must be placed into a reserve account and 259
utilized for assessor-related costs if the local government 260
chooses to exercise its authority under Section 7(4) of this act. 261
If the local government does not choose to exercise its authority 262
under Section 7(4) of this act, then the funds must be placed into 263
an account designated by the local government. 264
SECTION 6. The terms of a program established pursuant to 265
Section 5(1)(c) of this act must include: 266
(a) Appropriate eligibility factors, including 267
certification by the property owner that: 268
(i) The property owner requesting to participate 269
in the program: 270
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1. Is the legal owner of the benefited 271
property; 272
2. Is current on mortgage and property tax 273
payments; and 274
3. Is not insolvent or in bankruptcy 275
proceedings; and 276
(ii) The title of the benefited property is not in 277
dispute; 278
(b) A requirement that: 279
(i) The amount of the assessment, plus existing 280
indebtedness on the property, does not exceed ninety percent (90%) 281
of the fair market value of the property as determined by a 282
qualified appraiser, with the exception that properties qualified 283
under the federal low-income housing tax credit program set forth 284
in 26 USC Section 42 are exempt from this requirement; and 285
(ii) The amount of the assessment does not exceed 286
twenty-five percent (25%) of the fair market value of the property 287
as determined by a qualified appraiser; 288
(c) A description of the types of qualified projects 289
that may be subject to special assessments; 290
(d) A statement identifying the local government 291
official authorized to enter into and execute written contracts on 292
behalf of the local government; 293
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(e) A statement that the period of the special 294
assessment must not exceed the weighted average of the useful life 295
of the qualified project that is the basis for the assessment; and 296
(f) A statement explaining the procedures for imposing 297
voluntary special assessments, the billing and collecting of the 298
voluntary special assessments, and remedies for enforcement of 299
delinquent special assessments, unless the local government 300
delegates these duties pursuant to Section 7(4)(b) of this act. 301
SECTION 7. (1) A program must establish a C-PACER 302
application and review process to evaluate project applications 303
for C-PACER financing. The program must prescribe the form and 304
manner of the application. At a minimum: 305
(a) An applicant must demonstrate that the project 306
provides a benefit to the public, in the form of energy or water 307
resource conservation, reduced public health costs or risk, or 308
reduced public emergency response cost or risk; 309
(b) For an existing building: 310
(i) Where energy or water usage improvements are 311
proposed, an applicant must provide: 312
1. An energy analysis by a licensed 313
engineering firm, engineer, or other qualified professional listed 314
in the program guidebook; and 315
2. A statement by the author of the analysis 316
that the proposed qualified improvements will either result in 317
more efficient use or conservation of energy or water, the 318
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reduction of greenhouse gas emissions, or the addition of 319
renewable sources of energy or water; or 320
(ii) Where resilience improvements are proposed, 321
an applicant must provide certification by a licensed professional 322
engineer stating that the qualified improvements will result in 323
improved resilience; 324
(c) For new construction, an applicant must provide 325
certification by a licensed professional engineer or engineering 326
firm stating that the proposed qualified improvements will enable 327
the project to exceed the current building code's requirements 328
for: 329
(i) Energy efficiency; 330
(ii) Water efficiency; 331
(iii) Renewable energy; 332
(iv) Renewable water; or 333
(v) Resilience; and 334
(d) The applicant must include a certification by a 335
licensed professional engineer or professional firm in the 336
appropriate area of expertise that the economic benefits of the 337
improvements exceed the costs of the assessment. 338
(2) A local government shall establish a process for 339
reviewing and approving applications for C-PACER financing. The 340
local government may require a qualified capital provider to 341
certify to the local government, in accordance with a process 342
approved by the local government, that the property owner and the 343
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project qualify for financing within this act and complies with 344
this act and the program guidebook. 345
(3) The local government's duties also include: 346
(a) Execution and recording of the written assessment 347
contract between the property owner and the local government, by a 348
duly authorized official, as well as execution and recording of 349
the local government notice of assessment and C-PACER lien; and 350
(b) Execution and recording of the assignment of the 351
assessment agreement, the notice of assessment and C-PACER lien, 352
and notice of assignment of assessment and C-PACER lien to the 353
capital provider. 354
(4) A local government may choose to bill, collect, and 355
enforce the C-PACER assessment and lien, subject to the following 356
guidelines: 357
(a) The local government may enforce the assessment 358
lien in the same manner that a property tax lien against 359
commercial property is enforced by the local government as 360
follows: 361
(i) Delinquent installments of the assessment 362
incur interest and penalties in the same manner as delinquent 363
property taxes; 364
(ii) In an enforcement or foreclosure action, 365
assessments not yet due must not be accelerated or eliminated by 366
foreclosure, including the foreclosure of a property tax. 367
However, delinquent interest in accordance with the financing 368
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agreement must be included in the enforcement or foreclosure 369
action; and 370
(b) The local government may apply the proceeds of an 371
enforcement action in the same manner as it applies the proceeds 372
from enforcement actions for delinquent property taxes, including 373
the local government's right to apply the proceeds to the payment 374
of the actual costs of the enforcement action as provided by law; 375
(c) (i) The local government may delegate these 376
responsibilities to the capital provider if the capital provider 377
is solely responsible for billing, collection, and enforcement of 378
the special assessment and lien. Under this subsection, 379
delinquent installments incur interest and penalties as specified 380
in the financing agreement between the property owner and capital 381
provider. Enforcement of a delinquent installment must be in the 382
same manner as that of a deed of trust, except that assessments 383
not yet due may not be accelerated or eliminated by foreclosure of 384
the past due amount of the lien. Outstanding and delinquent 385
property taxes at the time of the enforcement action must be 386
satisfied along with the delinquent amounts of the special 387
assessment, subject to Section 10 of this act; and 388
(ii) The local government, its officers, and 389
employees, are not liable at law or equity for actions taken 390
pursuant to this section, except in cases of gross negligence, 391
recklessness, or willful misconduct. 392
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(5) After an approved project is completed, an applicant 393
shall provide to the local government written verification 394
provided by a licensed professional engineer or engineering firm, 395
as defined in the program guidebook, stating that the qualified 396
project was properly completed and is operating as intended. 397
(6) For an improved project, the capital provider may be 398
subject to an audit regarding the assignment of the C-PACER 399
assessment and lien from the local government or program 400
administrator. 401
SECTION 8. The proposed financing agreement for financing a 402
qualified project may authorize the property owner to directly 403
purchase the related equipment and materials for the installation 404
or modification of a qualified improvement. 405
SECTION 9. (1) A local government that authorizes financing 406
through special assessments under this act shall: 407
(a) File a written notice of assessment and C-PACER 408
lien in the records of the office of the county registrar of deeds 409
of the county in which the property is located. The notice must 410
contain: 411
(i) The amount of the assessment; 412
(ii) The legal description of the property; 413
(iii) The name of each property owner; 414
(iv) A copy of the written assessment contract; 415
and 416
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(v) A reference to this section authorizing the 417
placement of the assessment and C-PACER lien on the property; 418
(b) File and record each C-PACER lien in the real 419
property records of the county in which the property is located. 420
The recording must contain: 421
(i) The legal description of the eligible property; 422
(ii) The name of each property owner; 423
(iii) The date on which the lien was created; 424
(iv) The principal amount of the lien; and 425
(v) The term of the lien; and 426
(c) Record the executed assignment of the assessment 427
agreement, notice of assignment of assessment, and C-PACER lien, 428
or may delegate the recording to the capital provider receiving 429
the assignment. 430
(2) The amount of funds allotted through a program must be 431
segregated from the calculation of the undisputed portions 432
necessary for property tax appeals as provided by law. 433
SECTION 10. (1) Except as otherwise provided by law, a 434
special assessment that complies with Section 3 of this act, and 435
any interest or penalties on the assessment: 436
(a) Is a first and prior lien against the commercial 437
property on which the assessment is imposed, from the date on 438
which the notice of special assessment is recorded pursuant to 439
Section 9 of this act, until the assessment, interest, or penalty 440
is paid; and 441
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(b) Has the same priority status as a lien for any 442
other ad valorem tax. 443
(2) The lien runs with the land, and that portion of the 444
assessment under the assessment contract that is not yet due must 445
not be accelerated or eliminated by foreclosure of a property tax 446
lien. 447
(3) A provision of a deed of trust, mortgage, or other 448
agreement between a lienholder and a property owner providing for 449
the acceleration of any payment under the deed of trust, mortgage, 450
or agreement solely as the result of entering into an agreement to 451
finance an assessment is unenforceable; provided, that the 452
conditions set forth under Section 3 of this act are satisfied. 453
SECTION 11. The local government may contract with another 454
local governmental entity, including a county assessor of 455
property, to perform the duties of the local government relating 456
to the billing, collection, enforcement, and remittance of special 457
assessments imposed pursuant to this act. 458
SECTION 12. (1) A combination of local governments may 459
agree to jointly implement or administer a program under this act. 460
(2) If two (2) or more local governments implement a program 461
jointly, then a single public hearing held jointly by the 462
cooperating local governments is sufficient to satisfy Section 463
5(1)(b). 464
SECTION 13. A local government that establishes a region 465
shall not: 466
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(a) Make the issuance of a permit, license, or other 467
authorization from the local government to a person who owns 468
property in the region contingent on the person entering into a 469
written contract to repay the financing of a qualified project 470
through special assessments under this act; or 471
(b) Otherwise compel a person who owns property in the 472
region to enter into a written contract to repay the financing of 473
a qualified project through special assessments. 474
SECTION 14. Residential property consisting of four (4) or 475
fewer dwelling units does not qualify for financing under the 476
C-PACER program. 477
SECTION 15. The state, a county, or local government shall 478
not use public funds to fund or repay a loan between a capital 479
provider and property owner. This act does not pledge, offer, or 480
encumber the full faith and credit of a local government. A local 481
government shall not pledge, offer, or encumber its full faith and 482
credit for a lien amount through a C-PACER program. 483
SECTION 16. When a local government establishes a C-PACER 484
program pursuant to Section 5 of this act, the collection 485
procedures must comply with this act and shall not otherwise 486
infringe on a taxpayer's right to appeal. 487
SECTION 17. Notwithstanding this act to the contrary, prior 488
to approval of financing on a leasehold owned by this state or a 489
local government, but leased to a privately owned entity 490
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ST: Commercial Property Assessed Clean Energy
Act and Resilience Act; create.
as described in Section 2 (1)(b)(iii) of this act, the consent of 491
this state or the local government must be obtained. A change to 492
the leasehold must be approved by this state or the local 493
government, as applicable. This state or a local government must 494
be held harmless if the privately owned entity to which the 495
leasehold is leased defaults on a financing agreement for a 496
leasehold changed in accordance with this section. 497
SECTION 18. If any provision of this act or its application 498
to any person or circumstance is held invalid, then the invalidity 499
shall not affect other provisions or applications of the act that 500
can be given effect without the invalid provision or application, 501
and to that end, the provisions of this act are severable. 502
SECTION 19. This act shall take effect and be in force from 503
and after July 1, 2026. 504