HARLINGEN — The Texas PACE Authority is in the Valley, hoping to win hearts, minds and disciples as it brokers energy-efficient upgrades for businesses and nonprofits.
The Texas PACE program recently held an informational contractors’ workshop attended by about 30 people from Cameron, Willacy and Hidalgo counties.
“PACE is a financing program that enables owners of properties to obtain low-cost, long-term loans for energy efficiency projects,” said Ramiro Aleman Jr., industrial development/retention manager for the Harlingen Economic Development Corp.
“This was a first in the entire Rio Grande Valley,” Aleman told board members last week.
The Texas PACE Authority is unique in that it receives no taxpayer dollars for its operation, relying instead on grants from private foundations. It serves as liaison for businesses and nonprofits to make their properties more energy-efficient or water-efficient.
Jonathon Blackburn is managing director for the Texas PACE Authority, which is headquartered in Austin.
He says that, in addition to costing taxpayers nothing, PACE promotes economic development in a community, creates jobs and lowers rates of traditional energy usage.
“From the community perspective, if you’re a growing community with growing electricity demand, you have two choices — build new power plants, or use less power,” Blackburn said.
The Texas PACE Authority has been mostly active around Austin in Travis County. But the organization is moving rapidly to other areas of the state, and the Valley is one of its target areas.
“We actually have live programs in Austin, the Valley, Houston, Dallas and in El Paso,” Blackburn said. “We are actively working to get additional counties up and running.
“We help them go through the statutory process for creating a program,” Blackburn added.
Nationally, the PACE project has been active for several years, and has helped finance more than $2 billion worth of clean-energy upgrades for properties.
“We deal a lot with HVAC systems, mechanical systems. LED lighting, roofs, windows, building control systems and solar panels, which is a pretty popular one,” Blackburn said.
“We operate under very broad criteria, but eventually it has to be something that reduces your utility bill,” Blackburn added.
The Texas PACE Authority will consult with a property owner on hiring a contractor, and help them put a project together that includes the cost of the energy-efficiency upgrade and projected savings over a period of time.
The property owner would then work with PACE to secure local financing for the energy upgrades.
“We’re looking for projects that will save more than they cost, which is a fairly compelling business case, if you’re a property owner, that you can invest and improve operating income at the same time,” Blackburn said.
Blackburn said the advantage of the PACE program is it allows a business or nonprofit to install energy-saving features in their buildings without the often prohibitive out-of-pocket expenses on the front end.
“We’re trying to take that off the table,” he said.
Blackburn says he has traveled to the Valley laying the groundwork for PACE several times this summer, including the contractor’s workshop a couple weeks ago.
He says one of his biggest obstacles is convincing people of the Texas PACE Authority’s transparency.
“The most common question I get is ‘What’s the catch? It sounds too good to be true,’” Blackburn said.
“Really, there is no catch,” he added. “The biggest drawback would be if people don’t take advantage of it.”
What is the Texas PACE Authority?
The Texas PACE Authority was created as a nonprofit organization in 2015 with the goal of streamlining the implementation of clean energy projects in Texas using the “PACE in a Box” model. Enabling legislation for the concept was passed by the Texas Legislature in 2013. The Texas PACE Authority is now expanding to counties and municipalities across Texas.
What does it do?
The Texas PACE Authority helps set up financing for owners of private businesses or nonprofits to install technology to make their properties more energy-efficient or more water-efficient.
Who pays for it?
The Texas PACE Authority is funded by private foundation grants and receives no tax dollars.
Who is eligible?
Private businesses, industrial operations, farming operations, churches, private schools, private hospitals and multi-family residences with five or more units. Single-family homes and government properties are not eligible.
How much does it cost?
Low-interest, long-term loans can be paid off in 15 to 20 years, with the payment being added to the property’s local tax assessment. This means the property can be sold and the loans would continue for the new owner until paid off.
Where in the Valley can I get a PACE Authority loan?
PACE is operational in Cameron and Willacy counties.
Where do I go to apply for a loan to become more energy-efficient?
Contact Jonathon Blackburn at 512-961-8197 or at [email protected]
