Texas recently passed legislation allowing jurisdictions to make use of property-assessed clean energy (PACE) programs in order to finance energy efficiency projects. Since Texas is responsible for 10% of the USA’s energy consumption, PACE will be instrumental in unlocking energy savings across many sectors, including for manufacturers. One concern over the PACE initiatives is that PACE program in different cities might have different requirements, causing confusion and program hold-ups. However, a non-profit called Keeping PACE in Texas has introduced a toolkit called “Pace in a Box” that will assist cities across Texas with setting up and standardizing their PACE programs. Pace in a Box makes uses of the Environmental Defense Fund’s Investor Confidence Project that will assist facilities with developing energy and cost savings estimates. By using standardized protocols Pace in a Box will help these program avoid confusion and minimize start-up time and costs.
EDF Helps Standardize Energy Efficiency Projects In TexasForbes, EDF Energy Exchange, April 15, 2014
Texas currently has the highest rate of energy consumption of any U.S. state and accounts for 10% of the country’s total energy consumption. Most of that energy goes to energy-intensive industries, such as aluminum, chemicals, forest products, glass, and petroleum refining, which consume 50% of the state’s energy, compared with a national average of 32%.
Last year, the Texas legislature passed statewide legislation enabling cities to use their property taxes as a way to finance clean energy and energy efficiency for industrial, agriculture, water, and commercial buildings. This innovative financing tool, generally referred to as property-assessed clean energy (PACE), has the potential to unlock a considerable amount of funding for both renewable energy and energy efficiency projects in the state, while simultaneously offering building owners cheaper financing options and secure repayment through their property tax assessment.