Texas Gov. Rick Perry Approves PACE Program for Low-Cost Financing of Water, Energy Conservation Projects
Texas Gov. Rick Perry has signed legislation allowing local property taxing authorities to enact ordinances enabling Property Assessed Clean Energy (PACE) programs across the state. PACE financing will allow commercial and industrial building owners to obtain low-cost, long-term private sector financing for water conservation and energy-efficiency improvements. With Gov. Perry’s signature, the PACE program is effective immediately. The Texas PACE Act places emphasis on energy and water saving retrofits in industrial and commercial properties, effectively incentivizing some of the largest energy consumers in the country to reduce their consumption. Texas consumes more electricity than any other state, and industry accounts for almost half of that energy use, according to the United States Energy Information Administration.
New efficiencies in equipment and processes - including some efficiencies identified through the US BCSD's By-Product and Water Synergy methodologies - will dramatically lower water usage, energy needs and costs, as well as reduced waste and disposal costs. PACE districts have been authorized in 30 states, with impressive financial benefits already apparent. Recently in Ann Arbor, Michigan, a $65,000 project to improve lighting, insulation, heating and cooling systems and reducing water use at a commercial property was completed and projected savings for tenants in energy costs range from $500 to $5,000 a year.
For the last nine years, CEOs have ranked Texas as the best state in which to do business. “PACE will help Texans meet the conservation goals in our State Water Plan and reduce demand on our electric grid,” says Sen. John Carona, sponsor of SB 385. “These savings will benefit the building owners directly and help keep the Texas economic engine primed for growth and prepared for the continuing influx of people moving to Texas to share in our prosperity.”