HomeMy WebLinkAbout04 1009 23COUNTY OF JEFFERSON
STATE OF WASHINGTON
An Ordinance Adopting a New )
Chapter 15.20 of the Jefferson County )
Code to Establish A Commercial )
Property Assessed Clean Energy and ) ORDINANCE NO. 04-1009-23
Resiliency (“C-PACER”) Program )
within Jefferson County )
WHEREAS,ongoing detrimental impacts from climate change pose a threat to
Jefferson County’s natural environment, economic security, and public health and safety; and
1
WHEREAS, the Intergovernmental Panel on Climate Change (“IPCC”) was established
in 1988 as the United Nations body for assessing the science related to climate change, with the
objective of providing governments at all levels with scientific information they can use to develop
climate policies; and
WHEREAS, in 2018, the IPCC issued a special report assessing projected impacts at a
global average warming of 1.5°C and higher levels of warming, and indicated that “ambitious
mitigation actions are indispensable to limit warming to 1.5°C while achieving sustainable
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development and poverty eradication.”The report included new warnings on the impacts of
climate change, and documented that global emissions need to be on a steep decline within the
next decade to avoid the worst impacts of climate change; and
WHEREAS, Washington State has set a legal commitment to reduce climate pollution
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45% below 1990 levels by 2030, and by 95% by 2050, and has set requirements for reduction of
greenhouse gas emissions from buildings by passage of the Clean Buildings Act in 2019; and
WHEREAS, in 2009, the Jefferson County Board of County Commissioners (“BoCC”)
and Port Townsend City Council jointly adopted the first “Inventory of Energy Usage and
Associated Greenhouse Gas Emissions” by Jefferson County Resolution Number 06-09 and City
of Port Townsend Resolution Number 09-002, which measured 2005 greenhouse gas emissions
associated with the community, the city and the county; and
1
See https://www.ipcc.ch/about/
2
See Special Report: Global Warming of 1.5°C(IPCC 2018)
https://www.ipcc.ch/sr15/chapter/chapter-1/
3
Washington State Office of Financial Management, Proposed 2022 Supplemental Budget and
Policy Highlights at 1
(https://ofm.wa.gov/sites/default/files/public/budget/statebudget/highlights/budget22/08_Climate
2022.pdf )
1
WHEREAS, the City of Port Townsend and Jefferson County joint Climate Action
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Committee in its February 27, 2019 meetingauthorized a more expansive inventory of
community-wide emissions to include those emissions associated with the City of Port Townsend,
Jefferson County, Jefferson Transit, Jefferson Healthcare, Port of Port Townsend, Jefferson Public
Utility District, Port Townsend Paper Corporation and the Fort Worden Public Development
Authority; and
WHEREAS, the Climate Action Committee approved an updated 2018 inventory on June
24, 2020, finding that the community-wide greenhouse gas contributions of residential,
commercial and industrial sectors declined from 2005 to 2018 by 88.1%, 85.7% and 51.1%
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respectively and a net decrease in greenhouse gas emissions of 40% from 2005 levels;
and
WHEREAS, the 2018 updated inventory documents that 32% of community-wide carbon
dioxide emissions originated from stationary sources such as buildings for residences, agricultural
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activities and industry; and
WHEREAS, on June 11, 2020, SSHB 2405, the Washington Legislature’s adopted
Commercial Property Assessed Clean Energy and Resilience ("C-PACER") program went into
effect in Washington, which allows counties to implement their own county C-PACER programs
in accordance with chapter 36.165RCW; and
WHEREAS, C-PACER helps communities achieve important energy and water
conservation goals through efficiency projects that upgrade old equipment to maximize energy
efficiency and replace fossil fuels with renewables and thereby reduce greenhouse gas emissions;
and
WHEREAS, C-PACER programs provide a structure for owners of existing or newly
designed agricultural, commercial, and multi-family residential properties to obtain low-cost,
long-term, financing for energy and resiliency projects in exchange for generating community
benefits that may reduce greenhouse gases, increase flood and earthquake resiliency; and
WHEREAS, by providing access to more affordable financing property owners that may
have been unable to afford energy efficiency or other resiliency upgrades to their properties such
as earthquake or flood improvements may now be able to do so; and
WHEREAS, Jefferson County has determined that creation and operation of a commercial
property assessed clean energy and resiliency program is in the public’s best interest to serve public
4
https://test.co.jefferson.wa.us/WeblinkExternal/DocView.aspx?id=2182448&dbid=0&repo=Jeff
erson
5
See Jefferson County, WA2018 Inventory of Greenhouse Gas Emissions at 8 (Climate Action
Comm., 6/24/2020)
https://www.co.jefferson.wa.us/DocumentCenter/View/10166/2018_JeffCo_GHG_Inventory_Rep
ort_approved_062420
6
Id. at 6.
2
health and safety interests within the community through energy and water conservation and
reduction in emergency response risks; and
WHEREAS,the BoCC held a public hearing on this ordinance and acceptedpublic
testimony at its regularly scheduled meeting on October 9, 2023 at 1220 Jefferson Street, Port
Townsend, WA.
NOW THEREFORE, BE IT ORDAINED:
Section 1. The BoCC hereby adopts the above “Whereas” clauses as Findings of Fact.
Section 2. The BoCC adopts a new chapter 15.20 of the Jefferson County Code, as set out in the
Appendix 1.
Section 3. Severability. If any section, subsection, sentence, clause, phrase or section of this
Ordinance or its application to any person or circumstance is held invalid, the remainder of this
Ordinance or its application to other persons or circumstances shall be fully valid and shall not be
affected.
Section 4. Effective Date.This Ordinance becomes effective on November 5, 2023.
Section 5. SEPA Categorical Exemption.This Ordinance is categorically exempt from the State
Environmental Policy Act under WAC 197-11-800 (19).
(SIGNATURES FOLLOW ON THE NEXT PAGE)
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th
APPROVED and ADOPTED this q day of OC A V' , 2023.
JEFFERSO COUNTY BOARD OF
CO I NERS
``�c��Rsss coy'•.� Greg Brothe on, Chair
SEAL:?cnn SEAL ' K e De n, Member
,,,,,,�NN,,,�"" Hei i Eisenhour, Member
ATTEST:
Ca kurc C /(y/23
Carolyn Oallaway, CMC/ Date
Clerk of the Board
Approved as to form only:
0• C 10/11/2023
Philip C. Hunsucker Date
Chief Civil Deputy Prosecuting Attorney
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APPENDIX1
A new chapter 15.20 of the Jefferson County Code is enacted to read:
COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY
AND RESILIENCY (“C-PACER”) PROGRAM
15.20.010 Program established.
15.20.020 Definitions.
15.20.030 Application process.
15.20.040 Assessment agreement.
15.20.050 Assignment.
15.20.060 Financing arrangements.
15.20.070 Capital provider requirements.
15.20.080 Certification of professionals.
15.20.090 No liability.
15.20.100 Program guidebook; form documents; open application date; reporting
requirements.
15.20.010 Program established.
(1) There is hereby established a Commercial Property Assessed Clean Energy and Resiliency
(“C-PACER”) Program (“the program”), which is available to owners of eligible property under
the program located in Jefferson County, both in incorporated and unincorporated areas, including
the City of Port Townsend.
(2) The program is enacted as authorized by Chapter 36.165 of the Revised Code of
Washington (“the C-PACER Act”). It is a voluntary program to allow owners of agricultural,
commercial, and industrial properties and of multifamily residential properties to obtain low-cost,
long-term financing for qualifying improvements, including energy efficiency, water conservation,
renewable energy, and resiliency projects. The program shall be consistent with the C-PACER
Act. The program may include additional requirements to ensure efficiency and to provide
meaningful benefits to Jefferson County and its citizens from clean energy and resiliency projects.
(3) No services may be offered or advertised through the program, including marketing and
participant education services, except separately itemized services offered upon impartial terms by
qualified third-party providers.
(4) The program shall be administered by the Department of Community Development
(“department”), which is the authority to administer the program consistent with its purposes. The
department may contract for the program to be wholly or partially administered by any public or
private entity or organization, provided that the department shallretain final authority over the
content of the program guidebook and program forms.
(5) The department shall charge fees as set out in the department’s fee schedule. The
department may also charge an administration fee to offset costs of establishing and administering
the program as specified in the fee schedule.
15.20.20 Definitions.
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(1) “Assessment” means the voluntary agreement of a property owner to allow a county to
place an annual assessment on their property to repay C-PACER financing.
(2) “Assessment agreement” means the form agreement approved by the department and
described in JCC 15.20.040.
(3) “Assignment” means the form assignment agreement approved by the department and
described in JCC 15.20.050.
(4) “Capital provider” means any private entity, their designee, successor, and assigns that
makes or funds C-PACER financing under a C-PACER Financing Arrangement to owners of
eligible property and meets all requirements of JCC 15.20.070 and the program guidebook.
(5) “C-PACER assessment” mans an annual assessment to an eligible property imposed by
Jefferson County under an assessment agreement.
(6) “C-PACER financing” means an investment from a capital provider to a property owner to
finance or refinance a qualified project as described under this chapter.
(7) “C-PACER financing arrangement” means the complete financing agreement between a
capital provider and the owner of eligible property for the purpose of financing qualified
improvements and eligible costs.
(8) “C-PACER lien” means the lien recorded against an eligible property by Jefferson County
to secure payment of a C-PACER assessment and related amounts under the C-PACER financing
arrangement.
(9) “Department” means the Jefferson County Department of Community Development.
(10) “Eligible costs” means the cost of materials and labor necessary for or incident to the
installation or modification of a qualified improvement. Eligible costs may include the pro-rata or
specific costs(as appropriate) of permit and inspection fees, project development and engineering
fees, program application and administration fees, third-party review and verification fees, lender's
fees, capitalized interest, interest reserves, and escrow for prepaid property taxes and insurance.
Total eligible costs for new construction may not exceed 30 percent of total costs of the qualified
project. Eligible costs do not include costs related to land acquisition or environmental or
geological testing or remediation.
(11) "Eligible property" means privately-owned commercial, industrial, or agricultural real
property, or multifamily residential real property with five or more dwelling units, located in
Jefferson County. Eligible property may be owned by any type of business, corporation,
individual, or nonprofit organization permitted by state law.
(12) “Financing agreement” means the contract under which a property owner agrees to repay
a capital provider for the C-PACER financing, including, but not limited to, details of any finance
charges, fees, debt servicing, accrual of interest and penalties, and any terms relating to treatment
of prepayment and partial payment of the C-PACER financing.
(13) "Greenhouse gas" has the same meaning as provided in RCW 70A.45.010.
(14) "Fossil fuel" has the same meaning as provided in RCW 19.405.020.
(15) "Owner" means thefee simple owner(s) of an eligible property and includes any group of
persons or entities who together own eligible property in fee simple.
(16) "Program" means the Jefferson County C-PACER program established under this chapter.
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(17) "Program administrator" means the department or an organization contracting with the
department for the administration of the program.
(18) "Program guidebook" means a comprehensive document which details the program
requirements, and any appropriate guidelines, specifications, underwriting, and approval criteria,
as well as any standard application forms, determined by the department to be necessary or
appropriate for the administration of the program and consistent with this chapter.
(19) "Qualified improvement" means a permanent improvement affixed to real property, and
intended to:
(a) decrease energy consumption or demand through use of efficiency technologies,
products, or activities that reduce or support the reduction of energy consumption,
allow for the reduction in demand, or support the production of clean, renewable
energy, including but not limited to a product, device, or interacting group of
products or devices on the customer’s side of the meter that generates electricity,
provides thermal energy, or regulates temperature;
(b) decrease water consumption or demand and address safe drinking water through
the use of efficiency technologies, products, or activities that reduce or support the
reduction of water consumption, allow for the reduction in demand, or reduce or
eliminate lead from water which may be used for drinking or cooking; or
(c) increase resilience, including but not limited to seismic retrofits, flood mitigation,
stormwater management, wildfire and wind resistance, energy storage, and
microgrids.
"Qualified improvement" does not include the installation, maintenance, or repair of
equipment that burns fossil fuel or an improvement that merely replaces an existing
improvement without providing any additional public benefit.
(20) "Qualified project" means a project approved by the program administrator involving the
purchase and installation or modification of a qualified improvement, including new construction
or the adaptive reuse of eligible property with a qualified improvement, that provides a significant
public benefit related to the intended purpose of qualified improvement.
(21) "Significant public benefit for existing structures" means that the qualified improvement,
or the resulting performance of the system or structure as a whole if the qualified improvement
cannot be independently evaluated:
(a) Will result in more efficient use or conservation of energy or water, the reduction
of greenhouse gas emissions, or the addition of renewable sources of energy or
water;
(b) Meets or exceeds energy performance standards in Chapter 194-50 WAC if the
structure is a building covered by that chapter;
(c) Is reasonably expected to reduce the annual amount of energy purchased from a
utility, or the amount of greenhouse gas emitted, by at least 20 percent, including
through on-site production and use of clean, renewable energy;
(d) Is the replacement of existing fossil-fuel burning space or water-heating
equipment with electric options, which may include the replacement of related
system elements;
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(e) Meets or exceeds the requirements for water efficiency under Jefferson County
building codes or, if more stringent, Washington State building codes;
(f) Meets or exceeds safe drinking water standards for lead contamination, as set by
the Washington State Department of Health; or
(g) Meets or exceeds seismic, flood, or other building resiliency requirements under
Jefferson County building codes or, if more stringent, Washington State building
codes.
(22) "Significant public benefit for new construction” means that the qualified improvement, or
the resulting performance of the system or the new structure as a whole if the qualified
improvement cannot be independently evaluated:
(a) Exceeds the requirements of the Washington State Energy Code;
(b) Is reasonably expected to reduce the annual amount of energy that would
otherwise be expected to be used or purchased from a utility, or the amount of
greenhouse gas emitted, by at least 30 percent, including on-site production and
use of clean, renewable energy;
(c) Exceeds the requirements for water efficiency under the Washington State
building codes;
(d) Exceeds safe drinking water standards set by the Washington State Department
of Health for lead contamination; or
(e) Exceeds seismic, flood, or other building resiliency requirements under
Washington State building codes.
15.20.030 Application process.
(1) The owner(s) of eligible property, or its agent, and a capital provider may jointly submit a
project application to the program administrator for review. The holder of a ground lease may
apply if appointed by the owner as an agent for purposes of participating in the program and the
owner agrees with encumbrance of the eligible property with a C-PACER lien. The appointment
must include an acknowledgment that the C-PACER lien takes precedence over all other liens or
encumbrances, except a lien for taxes imposed by the state, a local government, or a junior taxing
district, as provided in RCW 36.165.060.
(2) The project application must include certification by a licensed and qualified professional
engineer, or other professional identified in JCC 15.20.080, that the qualified improvements, either
individually or in combination with other qualified improvements included in the qualified project,
are expected to provide a significant public benefit, and that the term of the proposed C-PACER
Financing does not exceed the weighted average effective useful life of the proposed qualified
improvements. Significant public benefit may be determined by any reasonable means, including
by comparisons of actual or estimated utility costs or greenhouse gas emissions.
(3) The project application must include:
(a)A declaration signed under penalty of perjury by the owner(s) stating that:
(i) The qualified improvements shall be permanently affixed; and
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(ii) Upon completion of the qualified project, the owner will provide the program
administrator with written notice that the project is properly completed and is
operating as intended;
(b) The capital provider's written assurance that it will be responsible for the billing
and collection of the annual C-PACER assessment, and for the enforcement and
foreclosure of the C-PACER lien, including judgment sale requirements; and
(c) Any additional items appropriate for administrative purposes specified in the
program guidebook.
(4) As soon as practicable after receipt, the program administrator must inform the applicants
whether the project application has been approved or denied.
(a) If a project application is complete, the program administrator will approve the
application.
(b) If the project application is denied, the program administrator will identify the
reasons for denial. The applicant must have an opportunity to correct or
supplement the project application for resubmission.
(c) If a project application is finally denied, the owner and capital provider may
appeal the denial in an adjudicative proceeding subject to chapter 2.30 JCC, filed
with the Jefferson County hearing examiner as an appeal of a non-land use matter
under JCC 2.30.080 (2) (b) (vii).
(5) The project application must include the written consent for the eligible property to
participate in the program from the holders of all liens, mortgages, or other security
interests in the eligible property. If the eligible property is a multifamily residential
property with five or more dwelling units, the project application must also include written
consent for the eligible property to participate in the program from all holders of any
affordable housing covenants, restrictions, or regulatory agreements burdening the eligible
property. The consent must include the subordination of the holder's interest and
acknowledgment that the C-PACER lien takes precedence over all other liens or
encumbrances, except a lien for taxes imposed by the state, a local government, or a junior
taxing district, as provided in RCW 36.165.060.
(6) If a project application is approved, the owner and capital provider must submit the
following additional materials to the program administrator:
(a) A copy of the C-PACER financing arrangement meeting the requirements of JCC
15.20.060;
(b) An assessment agreement meeting the requirements of this chapter, signed by the
owner(s) and capital provider, and in a format meeting all recording requirements;
(c) A notice of the assessment and the C-PACER Lien, which meets all recording
requirements of RCW 36.165.050, that that includes language acknowledging
that liens for taxes imposed by the state, a local government, or a junior taxing
district are superior to and take precedence over the C-PACER Lien, as provided
in RCW 36.165.060;
(d) An assignment meeting the requirements of JCC 15.20.050 and this chapter,
signed by the owner(s) and capital provider, and in a format meeting all recording
requirements;
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(e) A current title report suitable for title insurance purposes; and
(f)A request by the capital provider that Jefferson County either record the
assessment agreement, the C-PACER lien, and assignment; or provide some or
all of the original executed documents to an escrow agent for recording.
(7) Within a reasonable amount of time after submission of all additional materials, or at a
later date requested by the applicants,Jefferson County shall sign the assessment agreement and
the assignment, and shall either record the assessment agreement, C-PACER lien, and assignment,
or provide original executed documents to an escrow agent for recording, as requested by the
capital provider.
15.20.040 Assessment agreement.
The assessment agreement must include the owner's:
(1) Request for an annual assessment on the eligible property and consent for Jefferson County
to record a C-PACER lien to secure payment of the assessment;
(2) Authorization for Jefferson County to delegate all duties and assign all rights under the
assessment agreement to the capital provider; and
(3) Acknowledgment that approval of the C-PACER application, participation in the C-
PACER assessment, and recording of the C-PACER lien do not constitute an endorsement by
Jefferson County of the qualified improvements, qualified project, or the C-PACER financing
arrangement.
15.20.50 Assignment.
The assignment shall assign and delegate Jefferson County's rights and duties under the assessment
agreement and the C-PACER lien to the capital provider. The language of the assignment shall
include all of the requirements of this section, stated substantially as follows:
(1) Jefferson County delegates, and the capital provider assumes all obligations,
responsibilities, and duties of Jefferson County or its officers, to the extent permitted by law, for
billing, collection, and enforcement of annual assessment payments and the enforcement and
foreclosure of the C-PACER lien;
(2) Jefferson County has no obligation to defend the C-PACER assessment agreement or C-
PACER lien against any claim by the holder of any other security interest in the eligible property;
(3) As provided in the chapter 36.165 RCW, billing and collection of C-PACER assessments
and delinquent payments, and enforcement of the C-PACER lien are the responsibility of the
capital provider. The capital provider assumes all contractual and statutory obligations as set out
in the chapter 36.165 RCW and this chapter. Jefferson County has no obligation to prosecute the
foreclosure of a C-PACER lien on behalf of the capital provider; and
(4) The capital provider agrees to indemnify and hold Jefferson County harmless for any cost,
expense, loss, or damages arising out of the imposition, assignment, recording, enforcement, and
foreclosure of the C-PACER lien.
15.20.060 Financing arrangements.
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The financial underwriting, evaluation, and terms of C-PACER financing arrangement arethe
responsibility of the capital provider. Notwithstanding the foregoing, a C-PACER financing
arrangement may not include a security interest of any kind in the eligible property, a qualified
improvement, or the qualified project, other than the C-PACER lien, unless subordinate to theC-
PACER lien.
15.20.70Capital provider requirements.
A capital provider will be approved to participate in the program if it is any one of the
following:
(1) Any entity that is currently registered as a C-PACE or C-PACER capital provider in at
least two states or at least two other counties in Washington;
(2) A federal or state-chartered bank or credit union;
(3) Any entity approved to participate in a C-PACER program by the Washington State
Department of Commerce; or
(4) An entity otherwise approved by the department or program administrator as provided in
the program guidebook.
15.20.080 Certification of professionals.
The individual or firm providing any certification required in conjunction with a C-PACER
application must be an energy, sustainability, or green building, water, or resiliency professional
certified by one of the following organizations:
(1) American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE);
(2) Association of Energy Engineers;
(3) Building Performance Institute;
(4) Association of State Floodplain Managers;
(5) North American Board of Certified Energy Practitioners; or
(6) Additional organizations or professional qualifications may be approved by the department
or program administrator as provided in the program guidebook.
15.20.90 Liability.
(1) Jefferson County shall have no liability for and may not enforce any privately-financed
debt under this chapter, nor use public funds to fund or repay any loan under the program.
(2) Nothing in this chapter may be interpreted to pledge, offer, or encumber the full faith and
credit of Jefferson County. No local government located within, or partially within, Jefferson
County may pledge, offer, or encumber its full faith and credit for any amount through the
program.
(3) No employee or elected official of Jefferson County, including members of the Jefferson
County Board of County Commissioners, the treasurer, the assessor, or department director shall
have any personal liability as a result of exercising any rights or responsibilities under this chapter.
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15.20.100 Program guidebook; form documents; open application date; reportingrequirements.
(1) The program administrator shall establish form documents for use with the program,
subject to approval by the department.
(2) The program administrator shall work with capital providers and other stakeholders to
develop and publish a program guidebook meeting the requirements of RCW 36.165.020(3)
. The
department may amend the program guidebook as necessary for the efficient administration of this
chapter through the same stakeholder process. In accordance with RCW 36.165.020, the program
guidebook need not be completed prior to accepting and approving program applications, so long
as the program complies with the provisions of this chapter and chapter 36.165 RCW.
(3)The form documents, program guidebook, and program outline submitted to the Board of
County Commissioners with the ordinance shall become effective on the same date that this
chapter becomes effective.
(4) The program administrator shall begin accepting project applications upon the effective
date of this chapter.
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JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
FROM: Brent A. Butler, Chief Strategy Officer
DATE: October 9, 2023
RE: PUBLIC HEARING for: Ordinance Adopting a New Chapter of the Jefferson
County Code, Chapter 15.20, "to Establish a Jefferson County Commercial
Property Assessed Clean Energy and Resilience (C-PACER) Program"
STATEMENT OF ISSUE:
On September 20, September 27, and October 4, 2023, the Jefferson County/Port Townsend
Leader, the County's newspaper of record, published that this public hearing would be held
before the Board of County Commissioners ("BoCC" or"Board") on October 9, 2023. Prior
discussion regarding the C-PACER program occurred before the Board of County on April 11,
2022. At that meeting, the following individuals provided comments: County Assessor, County
Treasurer, Kitsap Bank's Rich Martinez, Bayside Housing's Gary Keister and Heather Dudley-
Nollette.
Key items discussed by the attendees included:
• C-PACER implements the comprehensive plan's sustainability targets;
• Five Washington counties had adopted the program
• Hastings Estate and Bayside Housing were interested in C,PACER
• DCD would have the greatest capacity impacts
• Technical issues had been resolved
• BoCC expressed concern about capacity impacts (no action was taken).
In response to the 2022 discussion, the Department of Community Development ("DCD")
amended its workplan, adding C-PACER as one of three new projects to the twelve focused
housing projects on the long-range planning list. The March 23, 2023 workplan discussion
before the BoCC identified new or omitted projects, including: 1) the Fee Ordinance/Study, 2) C-
PACER, and 3) Permanent Housing Facilities.
On April 17, 2023, DCD updated the Board on the progress made to date. At that BoCC
meeting, the DCD Director discussed options to reduce the capacity issues related to the C-
PACER program. In attendance were the County Assessor; the County Treasurer; and the C-
PACER Specialist John Kennedy who provided input. Options included administration by
another county through an interlocal agreement or a professional services agreement. On June 1,
2023 the Director was appointed as the Chief Strategy Officer ("CSO"), and C-PACER was
included as one of the CSO's six projects. In this role, the CSO worked collaboratively with the
County Administrator to move forward with Request for Proposals to retain a Program
Administrator and with the Prosecuting Attorney's Office to prepare an implementing ordinance
adopting the program. During this time, Port Ludlow Associates joined Bayside Housing and the
Hastings Estate as interested property owners. Now, after consideration of the issues, DCD
attaches a Draft Ordinance to this Agenda Request as Appendix A for consideration.
At this time, the Board is requested to open a public hearing, accept testimony, close the public
hearing and deliberate, establishing chapter 15.20 C-PACER, in Title 15, Buildings and
Construction as a new Chapter of the Jefferson County Code, known as the Commercial
Property Assessed Clean Energy and Resiliency (C-PACER) Program.
The C-PACER program is managed by a program administrator and the regulations are set forth
in a Program Guidebook (Guidebook) that implements the procedures and requirements through
forms used by participating jurisdictions. A Draft Program Guidebook is attached as Appendix
B. A final Guidebook will be published after discussion with the City of Port Townsend by the
November 5, 2023 effective date of the ordinance. Forms included in the Guidebook are set forth
below:
1. Application Checklist,
2. Lien Holder Consent to C-PACER Assessment and Lien,
3. Certification of Qualified Improvements,
4. Certificate of Capital Provider Qualification,
5. Assessment Agreement for C-PACER Financing,
6. Notice of Assessment Interest and C-PACER Lien,
7. Assignment of Notice of Assessment Interest and C-PACER Lien and Assessment
Agreement
8. Certificate of C-PACER Improvements Completion.
ANALYSIS:
C-PACER financing is repaid by a voluntary assessment on the improved property, secured by a
lien in favor of Jefferson County, which is then immediately assigned to the C-PACER capital
provider. The lien is second only in priority to the lien for unpaid taxes. Once C-PACER financing
is advanced, the administration of the C-PACER financing (including enforcement) is done by the
private capital provider. After the adoption of a C-PACER program, Jefferson County's role is
limited to the approval of an assessment and recordation of a C-PACER lien, as well as to the
administration of the C-PACER program (which may be contracted out to a private third party).
As discussed in the April 2023 agenda request, the C-PACER program would be in conformance with
the Jefferson County Comprehensive Plan ("CP"). Specifically, this program encourages the adoption
of programs, policies and procedures that increase energy efficiency in publicly funded infrastructure
(see CP page 149), partnerships with other stakeholders such as the Public Utility District#1 (see CP
page 331), and resource consuming facilities (CP page 356), among other areas.
Program Administration
After Whatcom and Pierce County declined our invitation to administer the Jefferson County C-
PACER program through an interlocal agreement, DCD published a Request for Proposal (RFP) and
selected Shea, Can& Jewell, Inc. (dba SCJ Alliance) to administer the C-PACER program. SCJ
Alliance was already under contract with the Jefferson County Public Works Department for the
Quilcene Complete Streets Project and most recently completed the City of Port Townsend's Sidewalk
Tunnel Reconstruction and Downtown Streetscape project. They agreed to serve as the C-PACER
Program Administrator, as set forth in the professional services agreement's scope of work dated June
5, 2023. Consequently, DCD would immediately assign the role of program administrator to SCJ
Alliance, and work with them to start the program effective November 5, 2023, which would be the
earliest date the program shall start pursuant to the Department of Commerce's response to DCD's 60-
day notice of intent to amend the county's development regulations.
FISCAL IMPACT:
Holding this public hearing and preparing the associated documents require staff time and resources
which is funded by the general fund. Any subsequent permitting activity carried out under the C-
PACER Ordinance would be funded by the requisite permit fees.
RECOMMENDATION:
Open the Public Hearing, accept testimony, close the hearing, and decide whether to adopt
chapter15.20 JCC.
REVIEWED BY:
140/a.
Mark McCau , County Administrator Date