Travis County PACE Program to Finance Energy Efficiency, Renewable Energy and Water Conservation
Energy efficiency upgrades are widely accepted to be the cheapest way to meet energy needs, yet many businesses don’t make such upgrades because of the up-front costs. That’s why the Texas Legislature passed a law in 2013 to make Property Assessed Clean Energy (PACE) programs for commercial properties possible in Texas.
PACE programs allow property owners to pay for energy efficiency, renewable energy and water conservation measures through low interest loans that are repaid through property tax bills. This mechanism spreads the cost of the upgrades out over time and reduces risk for the property owner because the loan is attached to the property, not the individual.
Until recently though, no PACE programs had been established in Texas. In March, Travis County became the first county in Texas to create a PACE program. The program will allow property owners to choose specific water conservation and energy saving improvements that fit each property’s individual needs.
Just how beneficial is the Texas PACE program? It helps in the local search of “finding the sweet spot in the public policy process where people, natural resources, and the economy are best served”, as Judge Eckhardt told Texas Government Insider. After all, the main goal of the Texas plan is to attain water protection, energy-efficiency developments, and renewable retrofits- all of which would be obtained through economical loans. Texas really is trying to do everything… big.
Keeping PACE in Texas made this first Texas PACE program possible by convening stakeholders to develop a toolkit for local governments to use when creating PACE programs. Not only should other counties follow Travis County, but they should also follow the other 30 states and District of Columbia that have employed PACE programs. With the help of passionate sponsors and volunteer stakeholders, any county can adapt the PACE program, just like Travis County did with its plethora of sponsors and 130 volunteers.