05/05/2025
My Name is Valerie Shoup, I am with Heritage Institute of Sustainability and am representing the Texas PACE Authority (TPA).
Who is TPA: The Texas PACE Authority was founded in 2015 as a nonprofit organization with the goal of streamlining the implementation of PACE-funded clean energy projects in Texas using the “PACE in a BOX” model. Travis County became the state’s first local government to establish a PACE district in March 2015, creating documents that other local governments can use to set up their own districts.
What is PACE in a Box: The Texas Legislature passed a bill (SB 385)(The PACE Act 2013) enabling local governments to create property assessed clean energy (PACE) districts. PACE is a voluntary program allowing property owners to make energy and/or water-related improvements and pay for them over a period of up to 20 years through an assessment on their property.
This program levels the playing field for businesses who previously had financing barriers to upgrading their buildings. Government building administrators can apply for long term financing through SECO to support energy efficiency projects. Now Building owners can get long term financing through the Texas PACE in a Box program. This program allows energy efficiency upgrades to be paid for through energy savings, depreciation, and tax incentives. The goal is to have a savings investment ratio of 1 so that the businesses realize no out of pocket expenses.
This program is critical to the reliability of the Texas Energy Grid. Electricity demand across the Texan market is set to rise to up to 218GW by 2031, according to the latest estimate from the Electric Reliability Council of Texas (ERCOT), the state's grid operator. The projected increase represents a growth of 150GW compared to the current peak demand record of 85.5GW set during 2023's record-breaking heat wave.
We encourage Businesses to:
1) Consider learning about TPA, and allow us to speak to the management team and to encourage reduction energy consumption and to learn about TPA.
2) Set aggressive energy reduction goals.
3) To consider creating a Foundation for matching TPA grants to reduce the load on the Texas energy grid.
With the rising prices after COVID 19 it is often difficult to get the payback required to meet the SIR of 1. Businesses Foundations providing matching grants would benefit Businesses, the City, and the Texas Energy Grid. It is great for the Businesses long term viability, it is great for the local contractors, banks, and good for the community overall.
Why: Local Banks can become PACE lenders, Local Contractors can become trained and become a service provider on the TPA website, Businesses can upgrade their equipment and reduce energy consumption, the Energy Grid will be more reliable for the Businesses and the City in which it resides. Texas PACE Authority is here to help make a sustainable energy grid a reality.
