Houston, TX— There is another reason to celebrate the coming of summer. On June 14th, SB385/HB1094 cleared its final hurdle and was signed by Governor Perry effectively enacting it into law. The Property Assessed Clean Energy Act (PACE Act) was passed this legislative session to address the obstacles property owners currently face that discourage them from making water & energy-efficiency improvements.
PACE empowers property owners to obtain upfront capital for qualified improvements through financing secured by adding an additional assessment to their property tax bill. The upgrades reduce utility costs, which result in positive cash flow, providing the owner a method to pay for the improvements. Lenders are well-protected through the legislation, allowing them to offer low-cost, long-term financing options. This, therefore, enables property owners to take on deeper, more capital-intensive retrofits with greater energy savings and longer payback periods.
Another benefit of the PACE legislation, is that the assessment attaches to the property. If the property is ever sold, the next owner will inherit the assessment. In many cases, landlords will be able to pass these additional assessments to their tenants.
PACE is an innovative way for property owners to pay for energy retrofits, enabling them to upgrade infrastructure that is usually on the waiting list for a capital project.
Similar acts have been enacted in over 20 states across the country. The signature act will boost the economy, help private businesses upgrade their infrastructure, and decrease the demand on the grid. It is a win-win for everyone involved.
