Presentation by Jonathon Blackburn of Texas PACE Authority at the 2017 Gulf Coast Water Conservation Symposium.

1. PACE FINANCING
PACE FUNDING FOR WATER
EFFICIENCY IN THE ICI SECTOR

2. +
HIGH
CAPITAL
COST
LOW
WATER
PRICES
=
LONG PAYBACK

3. LOWER
Utility Costs
INCREASE
Net Operating Income
Bottom Line: Increased Building Value

4.  100% LONG TERM
FINANCING
 ENERGY AND
WATER EFFICIENCY

5. How PACE Works
Property owner
repays loan
through property
assessment
Financing provided
to property owner
to pay for energy
project
Property owners
voluntarily sign-up
for financing and
install
energy/water
projects
City or county
creates type of
assessment district

6. ELIGIBLE PROPERTIES
 OFFICE/RETAIL
 INDUSTRIAL
 MULTIFAMILY (5+ UNITS)
 NONPROFITS

7. NOT ELIGIBLE
NEW CONSTRUCTION
• i . e . Greenfield
GOVERNMENT PROPERTY
• Includes school districts, water authorities,
etc
SINGLE FAMILY RESIDENTIAL

8. ELIGIBLE MEASURES
HVAC modification or
replacement
Automated control systems
LED Lighting
Insulation
Windows and doors
Caulking, weather-stripping or
air sealing
Low Flow Water Fixtures
Reclaimed Water Systems
Rainwater collection
On site power generation
(CHP, Microgrids, solar, etc.)
Other

9. CASH FLOW APPROACH: OWNER
Example: $1.1M Chiller Upgrade, Savings $125K/yr
($1,200,000)
($1,000,000)
($800,000)
($600,000)
($400,000)
($200,000)
$0
$200,000
$400,000
0 1 2 3 4 5 6 7 8 9 10
Cumulative Cash Flow
Self-Funded Option Conventional Loan Option PACE Loan Option

11. OTHER CONSIDERATIONS
 TRIPLE NET LEASE PASS-THROUGH
 TRANSFERS ON SALE
 TAX TREATMENT
 NO ACCELERATION ON DEFAULT
 NO PERSONAL GUARANTEE
 FUNDS AVAILABLE FOR
CONSTRUCTION

12. B A R T O N C R E E K
R O U N D R O C K
O U T L E T S
L A K E L I N E
2.4 MILLION GALLONS
PER YEAR

13. MALL UPDATES
M e a s u r e s :
 E x t e r i o r L E D s
 H V A C
 V F D s
 B A S
 W e a t h e r i z a t i o n o f b u i l d i n g s h e l l
 L o w f l o w w a t e r f i x t u r e s
T o t a l P r o j e c t C o s t : ~ $ 4 M
A n n u a l S a v i n g s : $ 5 0 0 , 0 0 0

14. WHERE IS PACE?
Live
 City of Dallas
 Travis County
 The Valley
 Williamson County
 Fort Bend County
 El Paso County
 City of Houston and ETJ
 Brazos County
 Nueces County
 Hays County
Next in Line
 Bexar County
 DFW Counties

15. TEXAS’ OPEN-MARKET
PACE PROGRAM
ADMINISTRATOR
www.TexasPACEAuthority.org