By Matthew Holloway |
Arizona State Representative Chris Lopez (R-LD16) is leading legislation to establish a Commercial Property Assessed Capital Expenditure (C-PACE) program in Arizona, aiming to expand private investment, modernize infrastructure, and support economic growth in Pinal County and across the state.
The legislation, House Bill 2824, would authorize local governments to offer C-PACE financing for commercial and industrial properties. The market-driven tool allows property owners to access low-cost, long-term private capital for projects that improve energy efficiency, conserve water, enhance resiliency, and fund infrastructure upgrades.
According to HB 2824, the “C-PACE Program” in Arizona would be defined as “a special assessment program that provides commercial property assessed capital expenditure financing for eligible improvements” that local governments may establish through voluntary special assessment agreements with property owners.
Eligible projects under the proposed program include investments in energy systems, water and wastewater infrastructure, building retrofits, manufacturing facilities, agricultural processing, and logistics development, all sectors central to rapid economic growth.
“Pinal County is one of the fastest-growing regions in Arizona, and we need smart, market-driven tools to help our communities keep pace,” Lopez said. “C-PACE unlocks private capital for major commercial and industrial projects without raising taxes or creating new government debt.”
Unlike traditional public financing, which leans heavily on incurring public debt, C-PACE financing relies entirely on private investment. Participation in the program would allow property owners to repay the financing through a special assessment tied to the property, a structure which advocates say provides long-term certainty for lenders and developers while shielding taxpayers.
Similar Commercial Property Assessed Capital Expenditure (C-PACE) frameworks have already been authorized in other states, including North Carolina, Idaho, and Arkansas. Arizona would join over 40 states that have authorized C-PACE, according to the release from Lopez, “helping unlock billions of dollars in private investment nationwide.”
“As Pinal County continues to attract major employers and advanced manufacturing facilities, we must ensure our communities have the infrastructure to support that growth,” Rep. Lopez added. “This legislation gives cities and counties another tool to compete, attract investment, and build for the future.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
