230 likes | 237 Vues
2015. An Opportunity for Creating Economic Activity With Property Assessed Clean Energy Act; Advancing Facility Improvements and Conservation Related Retrofits into Commercial and Industrial Properties. Created in Texas for Texans. Local Adoption of PACE in Texas.
E N D
2015 An Opportunity for Creating Economic ActivityWith Property Assessed Clean Energy Act;Advancing Facility Improvements and Conservation Related Retrofitsinto Commercial and Industrial Properties
Local Adoption of PACE in Texas “PACE in a Box” is a toolkit of recommendations and document templates for counties and municipalities to: • Create uniform, user friendly, scalable, and sustainable PACE programs • Encourage and support local discussions about forming regional or multi-jurisdictional programs
Impact = Immediate • As soon as the City or County Government officially adopts the PACE resolution! • Model Resolution is already written and included in PACE In a Box guide • Put this on your next Council or Commissioner’s Court agenda for approval • Be a PACE Setter!
Support & History • SB 385, Sen. John Carona and Rep. Jim Keffer • The coalition: • County Judges and Commissioners Association of Texas • Independent Bankers Association of Texas • Texas Association of Business • Texas Association of Counties • Texas Bankers Association • Texas Building Owners and Managers Association • Texas Combined Heat and Power Initiative • Texas Conference of Urban Counties • Texas Manufactures Association • Texas Municipal League • Texas Renewable Energy Industry Association • US Business Council for Sustainable Development • US Green Building Council • Dozens of other organizations and companies
PACE is a Win-Win-Win • Property Owners – lower utility bills, energy independence (CHP) energy efficiency, property value increase • Contractors – source of increase in business, more local hiring, best practices, keeping up with technology advancements • Lenders – new loans, steady & stable process, fully collateralized, 1st lien position, improved asset value • Communities – increased economic development and jobs, improved building infrastructure, more appealing building stock • State of Texas – reduced peak demand, improved grid loading, renewables as source, improved air quality, better water conservation
Critical Elements • Economic Activity • Conservation through efficiency • People making a Difference • Industry competitiveness • Removing the Barriers to private investment
Energy in Texas Today • Texas leads the nation in energy consumption, accounting for 12% of the nation’s energy use and is the fifth largest energy consumer in the world • Demand for electricity has increased 20% since 2000 • Population and Industry growth in Tx is skyrocketing!
Projected Texas Population “More than 1,000 people…move to Texas every day.” Gov. Rick Perry, 12/29/2012.
Industrial Sector Energy Consumption Texas 19% Remainder of U.S. 81% Texas’ industrial sector is a huge, untapped market for energy saving retrofits. They understand the value of making these improvements, but have roadblocks to getting these projects done
STOP: talking about the problem.START: talking about the solution! • Texas Leadership is investing in water and power infrastructure – Water, Energy, Roads • Private Investment in Building Infrastructure – part IV of the solution • By far the cheapest and most affordable supply we find will be the existing supply we can reallocate because of conservation • Old approaches called for mandates or tax and incentive policies that distorted the market and reduced revenues to local governments • New approach…
PACE - Fulfilling Critical Objectives • Economic Activity Opportunities are Key • Conservation through efficiency gains • Property owners enhance building stock • Businesses continually look for ways to lower operating costs and increase competitive advantage • Local government is pressured to lead in areas of conservation and sustainability
Economic Impact of 5 Star Hotel • Jobs for • general contractors • water conservation companies • lighting specialists • HVAC designers/developers • energy managers • commissioning agents • architects, PE’s, energy engineers, auditors, estimators, • mechanics, plumbers, electricians • Revenue and business growth for lighting, controls, automation, HVAC, financial companies • $1.8M’s economic impact = $9,000,000
PACE Tearing Down Barriers PACE Solutions Barriers No down payment and costs spread over time w/ savings Scarce internal capital budget No access to, aversion to financing • Repayment security through senior lien position • Backed by property, not by owner or equipment collateral • No investment-grade credit rating • Lack of collateral assets that don’t fall under first mortgage PACE obligation transfers to the new owner upon sale Uncertain holding period Owner / tenant split incentives Qualifies as NNN pass-thru cost ESCO/contractor guarantees or third party insures performance Skepticism savings/ROI will be realized
Regional PACEis best for Texas 1,200 Municipalities 254 Counties 24 Regional Councils of Government
Pick Up the PACE Bring PACE to your Community Create a local PACE Program. PACE in a Box provides everything you need including model docs. Volunteer at http://www.KeepingPACEinTexas.org/support-pace/join-the-effort Join our members: http://www.KeepingPACEinTexas.org/join-pace Questions? Michael West Michael.West.ATX@gmail.com Charlene Heydinger Charlene.Heydinger@KeepPACE.org
Charlene.Heydinger@KeepPACE.org Platinum Gold Silver Bronze