On June 8, the Vermont governor signed into law S. 327, which is a bill that, in relevant part, allows a town, city, or incorporated village to create a commercial property-assessed clean energy (C-PACE) district through a majority vote of the municipality’s legislative body. After creating a district, a municipality must allow for the imposition of special assessments to secure private financing for owners of commercial or industrial buildings for renewable energy, energy efficiency, water conservation, and resiliency improvement projects. The law, which took effect upon passage, defines a commercial or industrial building as any building other than a residential dwelling with fewer than five units. Before entering into a C-PACE agreement, a property owner must obtain the required project analysis or certification for energy, water, renewable energy, resiliency, or new construction improvements, and mortgage or deed of trust holders must consent and confirm that the assessment will not trigger a default. The law gives the assessment lien priority over most other liens, makes it subordinate only to property tax liens, and provides that the lien “runs with the land,” while capping the combined assessment and outstanding mortgage obligations at 90 percent of the property’s appraised value.