Published on : Sep 18, 2015
Business owners in Texas will soon benefit from an innovative financing scheme that Rio Grande Valley will adopt for improving the state’s energy and water conservation efforts. This “resolution of intent” was approved by Cameron Country commissioners. The approval will help in setting up a Property Assessed Clean Energy (PACE) program that is completely voluntary in nature. The resolution has a report that gives detailed understanding of how PACE will work it the region.
The idea of PACE germinated in 2008 at California and its Texas version materialized when the legislation was actually passed in 2009. Two years ago the legislature made the 2009 law easier for operations and implementation of the PACE program. As on today, owner of industrial, residential, and commercial properties that are more than five is allowed to be a part of the PACE financing scheme.
A non-profit business organization, Keeping PACE in Texas, helped PACE materialize in a law. The organization is now working towards marketing in several counties. Under the program, property owners will get an up-front financing that will help reimburse their complete total cost of improvements. At the same time it will permit the owners to amortization of debt for better improvements in life.
The aim of the program is to help the property owners to dodge the elongated repayment periods, improve the access to capital, and remove the other market barriers that are a discouragement for water conservation and energy efficiency investments. These improvements reduce the utility costs to a point where the difference is good enough to cover obligations of repayment.