Item # 4&5 PPT - PACE Program Resolution to Establish

1. ADMINISTRATION
Presented by:
Phil Laney
Assistant City Manager
RESOLUTION TO ESTABLISH
PACE PROGRAM
ITEM # 4&5
MARCH 14, 2022

2. SUMMARY
 Resolution to establish Property Assessed Clean
Energy (PACE) Program
 PACE provides low-cost, long-term loans for
energy efficiency & water conservation
improvements
 Commercial, nonprofit & large multifamily properties
 Program to be administered by Alamo Council
of Governments (AACOG)
 Program in 12 cities/counties in region
 San Antonio, Boerne, Castle Hills, Fredericksburg

3. BACKGROUND
 Texas Legislature approved PACE Act in 2013 to
provide low-cost, long-term loans
 Water conservation & energy efficiency improvements
 Improvements funded by private lenders
 Improvements paid off by assessments tied to
property, from savings in utility expenses
 Program typically administered by third party

4. PACE IN TEXAS
 74 municipalities
 37 cities
 37 counties

5. PACE IN AACOG REGION
 Balcones Heights
 Boerne
 Castle Hills
 Comal County
 Fredericksburg
 Guadalupe County
 Hondo
 Leon Valley
 Medina County
 Poteet
 San Antonio
 Universal City

6. QUALIFIED IMPROVEMENTS
 Chillers, boilers, furnaces
 HVAC, BMS, EMS Controls
 Energy Mgmt Systems
 Water Heating Systems
 Lighting
 Roofing
 Windows
 Water Mgmt Systems
 Rainwater Collection Systems
 Irrigation Equipment
 Toilets
 Faucets
 Pool equipment
 Cogeneration
 Distributed Generation Systems
 Greywater Systems
 Elevator Modernization
 Doors
 Insulation
 Solar Panels
 Energy efficiency, water conservation, distributed generation & demand
reduction (resiliency)

7. PACE PROGRAM BENEFITS
 Provides 100% up-front funding of all hard & soft
costs
 20+ year repayment term through utility savings =
immediate income source
 Does not tie up borrowing capacity for company
 Requires utility savings to be validated by third party
review
 Property owner selects lender, contractor & project

8. PACE PROGRAM BENEFITS CONTINUED
 Administered by a third party – AACOG – in
transparent manner
 Enhances economic development & sustainability
efforts, including energy & water use

9. PROCESS TO ESTABLISH PACE
 To establish program, 2 meetings required
 Meeting 1
 Post report on how program will work on website
 Pass a resolution of intent
 Meeting 2
 Hold public hearing
 Adopt resolution establishing PACE Program
 Interlocal agreement (ILA) with AACOG to administer
program

10. POLICY ANALYSIS
 City supports efforts to enhance sustainability &
economic development opportunities
 Resolution to Establish authorizes creation of PACE
program to be administered by AACOG
 Improvement projects financed by lenders to
property owners with AACOG oversight
 No administrative, financial or fiduciary
responsibility by City

11. COORDINATION
 AACOG
 City Attorney
 City Manager

12. FISCAL IMPACT
 No fiscal impact to City