What is the Amarillo PACE Program?
Property Assessed Clean Energy (PACE) is a financial tool that incentivizes property owners in Amarillo (and 5-miles outside Amarillo in the extraterritorial jurisdiction) to upgrade facility infrastructure with little or no capital outlay. Approved by State legislation and established by City Council in September 2017, this voluntary program enables owners to lower their operating costs and use the savings to pay for eligible water conservation, energy efficiency, resiliency, and distributed generation projects. Owners gain access to private, affordable, long-term (typically 10-20 years) financing that is not available through traditional funding avenues.
Eligible property types include Commercial (nonprofit, institutional, hospitality and retail), Industrial (manufacturing and agricultural), and Multifamily (properties with 5 or more units). PACE financing may be used to pay for permanent improvements to existing properties that are intended to decrease water or energy consumption or demand.
Typical Examples Include:
Chillers, boilers, and furnaces • HVAC, BMS, BAS, EMS controls • Lighting • Water heating systems • Energy management systems and controls • Roofing • Windows • Doors • Insulation • Elevator modernization • Pool equipment • Distributed generation systems • Heat recovery and steam traps • Solar panels • Wind turbines • Water management systems and controls • Irrigation equipment • Rainwater collection systems • Toilets • Faucets • Greywater systems… and more!
This unique program enables property owners to overcome traditional market barriers, such as extended payback periods and lack of capital, that discourage investment in energy efficiency and water conservation improvements. PACE provides a new source of property-secured financing for energy efficiency and water conservation retrofits that does not affect conventional lending sources and does not compete for capital with other investment opportunities.
Owners choose a private sector capital provider and voluntarily request the City of Amarillo place a senior lien on the property for the total cost of the project. The owner commits to the City that he/she will pay the PACE assessment installments. PACE is not a personal or business loan. It is a voluntary land-secured assessment that is paid off over time, comparable to a Public Improvement District (PID). The energy and/or water savings are structured to exceed the cost of the assessment, resulting in projects that are cash flow positive. As the assessment is tied to the property, the repayment obligation transfers to the next owner if the property is sold.
The Amarillo City Council recently adopted this program so property owners have another alternative to consider when upgrading their properties. Through the process, the Texas PACE Authority (TPA) was chosen to administer the program. TPA, a nonprofit organization, currently administers all the existing PACE programs in Texas (in over 17 cities and counties). If you are interested in learning more about Amarillo’s PACE program, please contact Bridget Branch, Regional Program Manager, at firstname.lastname@example.org or by calling 1-855-738-7223. Or by visiting www.texaspaceauthority.org for more information.