11 - Expansion of Property Assessed Clean Energy Program

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financing, property owners may also qualify for various rebate, tax credit, and incentive programs offered by utility providers and state or federal governmental authorities to encourage these types of investments. 4. Benefits of PACE to the Local Government Among other things, projects financed through PACE will: • Enable property owners and occupants to save substantial amounts in utility costs, • Reduce demand on the electricity grid • Mitigate greenhouse gas emissions associated with energy generation • Enhance the value and efficiency of existing buildings • Boost the local economy by creating new job opportunities and new business opportunities for contractors, engineers, commercial lenders, professionals, and equipment vendors and manufactures • Increase business retention and expansion in the PACE region by enabling cost effective energy and water saving updates to existing property • Improve productivity through optimized energy usage • Support the State's water conservation plan • Better enable the Local Government to meet its water conservation goals Finally, through the reduction in energy consumption as a result of the PACE program, there will be a decreased demand for power resulting in lower emissions from power plants. EPA regulations have significant impacts on air quality standards in Texas. Being non -attainment for priority pollutants in the Clean Air Act endangers federal transportation funding. The PACE program requires minimal support from the Local Government. It is designed to be self-sustaining. Furthermore, because the PACE program is tax neutral, it achieves all of the benefits listed in this Report without imposing a burden on the Local Government's general fund. The 841 Texas Legislature added a provision that explicitly shields the Local Government and its employees, members of the governing body of a local government, employees of a local government, and board members, executives, employees, and contractors of a third party who enter into a contract with a local government to provide administrative services for a program under this chapter.3 5. The Benefits of PACE to Lenders PACE loans are attractive to lenders because they are very secure investments. Like a property tax lien, the assessment lien securing the PACE loan has priority over other liens on the property. Therefore, the risk of loss from non-payment of a PACE loan is low compared to most other types of loans. PACE assessments provide lenders with an attractive new product to assist 3 TX. Local Gov't Code §399.019. In the 85th legislature, HB 2654 clarified that the personal immunity provisions apply to all elected officials performing rights and duties under chapter 399 of the Local Government Code.