By James Cargas, TPA | March 27, 2023

The classic public-sponsored economic redevelopment program involves loans of public funds, tax breaks or grants. Not with Property Assessed Clean Energy (PACE) loans, which typically finance energy and water conservation improvements and on-site generation entirely from private capital providers at no cost to local governments.

Yet PACE programs are run entirely by local governments—typically a county or city’s economic development or sustainability office. These public servants often contract program administration to a nonprofit third-party, like Texas PACE Authority, that have highly skilled staff and operational efficiencies. Currently, 38 states and the District of Columbia have commercial PACE programs.