Texas PACE (Property Assessed Clean Energy) is a legislatively authorized economic development tool that counties and municipalities can use to advance their objectives to provide quality and valuable services to their constituencies, stakeholders, and taxpayers. Local governments that establish PACE programs enable commercial, industrial, agricultural, nonprofit, and multifamily property owners to voluntarily tie the obligation to repay the cost of energy and water efficiency improvements to their property with a property assessment. The PACE property assessment eliminates the current barriers to investment in maintaining property and allows the obligation to stay with the property and transfer to subsequent owners. TX-PACE is a voluntary tool (and opportunity) that enables owners to lower their operating costs and pay for eligible improvements with the savings generated, taking advantage of affordable, long-term financing provided by private capital providers.

TPA administers TX-PACE programs at no cost to the local government. TPA is funded by administrative fees paid by the property owners and foundation grants. It receives no funding from interested parties and is committed to providing a transparent program as a public service with no interference to the private sector.

A Texas PACE in a Box program has minimal impact on government staff, adds no additional cost to the general taxpayer or burden to the treasury, has the highest levels of consumer protection, and is administered by a nonprofit organization that does not compete with the private sector. In addition, HB 2654 clarifies the intent of the underlying statute and states unequivocally that tax assessor/collectors across Texas and all other public servants have personal immunity for their work on PACE programs in Texas. The program administrator is compensated by an administrative fee paid by the property owner. The current administrative fee in Texas is among the lowest in the nation.

Texas PACE Authority (TPA), the state’s only nonprofit PACE program administrator, was created in 2015
to exclusively provide uniform PACE program administration for Texas counties and cities. PACE is all we
do! We are committed to serving all of Texas, from urban areas to rural communities. TPA offers
unmatched PACE program support, including online service provider training, and materials in English
and Spanish, and works with all eligible lenders to serve all businesses and nonprofits throughout the
state.

Texas communities face significant challenges in meeting the energy and water needs of a rapidly growing economy. By far, the most affordable and readily available supply of energy and water we find will be the existing supply. Meeting these challenges will require significant financial investments. TX-PACE enables property owners to make valuable improvements to property that reduce demands for energy and water in a way that benefits all parties to the arrangement, is completely voluntary, and puts no public funds at risk. The energy and water savings help make Texas businesses, industry, and agriculture more competitive; and, by definition, every property improvement requires work to be done locally. By creating new investment opportunities, TX-PACE will stimulate employment growth and economic development in municipalities and counties throughout Texas in addition to helping local communities achieve critical energy and water conservation goals. TX-PACE projects will help local governments avoid the costs of purchasing additional power and water to meet growing demand and the costs of clean air nonattainment and other environmental costs.

No, state law enables, but does not require jurisdictions to offer a TX-PACE program. If a local government chooses to offer TX-PACE, THEN the governing body is required to designate the specific geographic area (the "region") in which PACE assessments may be placed. The region:

• may include the jurisdictional boundaries of the entire local government; and
• must be located wholly within the local government’s jurisdiction (including a municipality’s extraterritorial jurisdiction).

The PACE Act also gives a local government the ability to create multiple TX-PACE regions within its boundaries, which can be separate, overlapping, or coterminous. To date, all counties and municipalities establishing PACE programs have elected to establish one program including the entire jurisdiction of the local government.

PACE in a Box is the model toolkit that provides local governments with everything they need to establish a sound TX-PACE program. The uniform, turnkey program provides underwriting and technical standards’ best practices and model documents. The program was designed by over 130 stakeholders and is being utilized throughout the state, and serving as a nationwide model.

PACE is a local program. The Texas PACE Act authorizes local governments to implement TX-PACE programs within their jurisdictions. The PACE Act gives local governments broad discretion in designing the specific attributes of their TX-PACE programs. Regional cooperation among local governments on TX-PACE can help minimize administrative costs and will attract more competitive lending to a larger market.

In most states, the assessment repayments are managed through a new line item on the property’s tax bill, but not in Texas. In TX-PACE programs, the private capital provider collects the assessment installments on behalf of the local government. Texas PACE Authority’s PACE administration provides consistency and transparency across the project. As the program administrator, TPA oversees the program workflow including application process, imposition and collection of assessment. The financing is advanced by a private capital provider according to terms as are agreed between the capital provider and the owner in accordance with their underlying loan agreement.

There are no risks to the local government. The Texas PACE Act establishes that the program is a governmental function and that public servants involved in the program have individual immunity. The statute and the project documents make clear that there is no resource to the local government. Additionally, a high level of consumer protection – underwriting and technical standards – is included in the PACE in a Box model to ensure that the projects will deliver the anticipated savings, protecting all the parties involved.

Yes, owners may use a contractor and capital provider of their choice. PACE in Texas is open-market, and as such, a wide range of parties can participate.

TX-PACE is a voluntary program for all parties, mortgage holders can benefit from this economic opportunity. 

If there is an existing mortgage on the property, the current lender will have to consent to allowing a PACE assessment on the property. While this can at first sound tricky, with a little legwork it can be obtained. First, we will help you prepare the case for consent. Lender Consent

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The Texas "PACE in a Box" model was created by over 130 PACE stakeholders to facilitate a consistent, user-friendly approach to TX-PACE design and implementation. The model has been unanimously adopted by every local government establishing a TX-PACE program in Texas.

The model plug and play program contains consumer protection underwriting and technical best practices and model documents. "PACE in a Box" has minimal impact on government staff, adds no additional cost to the general taxpayer or burden to the treasury, and is administered by a nonprofit that does not compete with the private sector. Texas PACE Authority administers the uniform "PACE in a Box" model as a public service on behalf of local governments and is funded through user fees and grants.