Page 13 - NBIZ Magazine 2022 February

Incentivizing Energy Efficiency and Water Figure A
Conservation with TX-PACE
Approved by state legislation in 2013 and established
by local governments, TX-PACE is a proven financial tool
that incentivizes Texas’ property owners to upgrade fa-
cility infrastructure with little or no capital outlay. Texas
PACE Authority (TPA) administers PACE programs at no
cost to local governments.
When businesses and nonprofit organizations make
energy and water-saving improvements to commercial,
industrial, and multifamily properties, they not only reduce
operating costs and increase property value, but they also
contribute economic and environmental benefits to their com-
munities, and help make these communities more resilient,
healthy, and sustainable. TX-PACE overcomes the challenges
that have hindered the adoption of energy efficiency and Figure B
related projects in our nation’s buildings. In addition, PACE
helps communities increase their resilience to natural disas-
ters, reduce carbon emotions, and meet their climate change
goals, while also improving building stock, thus contributing
to economic development, including job creation.

TX-PACE – Success Across the State
Since its formation in 2015, TPA has facilitated more
than $190 million in clean energy and water-saving
investments in commercial buildings across the state. (See
Figure A – TX-PACE Investment and Figure B - TPA Project
Tracker). Projects range from $70,000 to $24 million and
are in urban and rural communities throughout Texas.
Seventy-one local governments have now established
uniform TX-PACE programs to enable their businesses
and nonprofits to access TX-PACE financing for property
upgrades resulting in energy and water-efficiency, and Figure C
onsite generation. (See Figure C – TPA Service Areas)
These improvements reduce operating costs and often
also increase property resiliency and safety. Local commu-
nities benefit from economic growth, increased building
resiliency, reduced energy and water demand, and rede-
velopment of older buildings. Property owners love PACE
because they can fund projects with no out-of-pocket costs.
Since PACE financing terms extend to 20 years, it’s
possible to undertake deep, comprehensive retrofits that
have meaningful energy savings and a significant impact
on the bottom line. The annual energy savings for a PACE
project usually exceeds the annual assessment payment,
so property owners are cash flow positive immediately.
The increased NOI dollars can be spent on other capital
projects, budgetary expenses, or business expansion.
Local governments love PACE because it’s an economic de-
velopment initiative that lowers the cost of doing business
in their community. It encourages new business owners to
invest in the area and creates jobs using the local work-
force. PACE projects also have a positive impact on air
quality by creating healthier, more livable neighborhoods.
The city of Houston's CAP (Climate Action Plan)
emphasized its PACE program as a tool for “building
owners to upgrade facility infrastructure with little to no

NBIZ ■ February 2022 13