Page 12 - NBIZ Magazine 2022 February

TX-PACE

A Win for Climate

and Economic Development

By Autumn Radle

early half of the energy Americans Building optimization and expanding investment in
consume is used to heat, cool, light, and energy efficiency are two important goals of Houston’s
otherwise operate our commercial build- CAP. The largest barrier to implementing energy efficien-
ings. Emissions from energy production cy projects in both the public and private sectors is the
Nand consumption contribute to climate combination of high upfront costs and low availability of
change and are a focus of many local governments’ financing. Property Assessed Clean Energy (TX-PACE)
climate action plans. Houston’s Climate Action Plan helps business and nonprofit property owners overcome
(CAP) is a science-based, community-driven strategy the upfront costs to realize numerous benefits including
for transportation networks, building operations, and increased property value, lower operating costs, and better
waste systems to be as clean and efficient as possible. It financing terms.
includes a high-level greenhouse gas emissions reduc- Adopted by the city in 2015 as an environmental and
tion strategy for the city of Houston to achieve carbon economic development tool, Houston’s commercial TX-PACE
neutrality by 2050. Program incentivizes private building owners to upgrade fa-
The plan demonstrates how the city will adapt and cility infrastructure with little or no upfront capital. Eligible
improve its resilience to climate hazards that impact commercial, multi-family, and industrial property owners
the city today as well as the risks that may increase in can decrease operating costs and use the savings to pay for
the coming years. This plan creates an opportunity for energy efficiency, water conservation, distributed energy,
commercial and industrial real estate owners to increase and resilience upgrades. Owners gain access to private,
efficiencies and lower operating costs without cannibaliz- affordable, and long-term—typically 10–20 years— financing
ing the core business. that is not available through traditional funding avenues.

12 NBIZ ■ February 2022