C&I PACEin Texas

Dub Taylor, DirectorTexas State Energy Conservation Office

PACE in Texas

• 83rd Session (2013)• SB 385, Sen. John Carona (R) and Rep. Jim Keffer (R)

• The Coalition:• County Judges and Commissioners Association of

Texas• Independent Bankers Association of Texas• Texas Association of Business• Texas Association of Counties• Texas Bankers Association• Texas Building Owners and Managers Association• Texas Combined Heat and Power Initiative• Texas Conference of Urban Counties• Texas Manufacturers Association • Texas Municipal League• Texas Renewable Energy Industry Association • US Green Building Council• Dozens of other organizations and companies

PACE is a Win-Win-Win

● Property Owners – lower utility bills, energy independence (CHP)

energy efficiency, property value increase

● Contractors – source of increase in business, more local hiring,

best practices, keeping up with technology advancements

● Lenders – new loans, steady & stable process, fully collateralized,

Tax Assessment lien position, improved asset value

● State of Texas – reduced peak demand, improved grid loading,

renewables as source, improved air quality, better water

conservation

● Communities – increased economic development and jobs,

improved building infrastructure, more appealing building stock

Key Business Support

Texas Association of Business

“The traditional approach to energy or water conservation

has been to create financial incentives through tax credits

or exemptions, or worse, discriminatory tax or regulatory

policies that distort free markets, mandate investments

with uncertain positive returns and reduce revenues to

state and local governments.”

“SB 385 represents an innovative and creative alternative

that is particularly appealing to TAB – an option that is

consistent with free market principles, is completely

voluntary and puts no public funds at risk.”

PACE in a Box

“PACE in a Box” is a toolkit of

recommendations and templates

for counties and municipalities to:

• Create uniform, user friendly, scalable, and

sustainable PACE programs

• Encourage and support local discussions about

forming regional or multi-jurisdictional programs

• 84th Session (2015): HB 3187, Chairman Keffer

PACE in a Box Supporters

Local Action

Post Report on how the program will work

Pass a Resolution of Intent

Hold a Public Hearing

Adopt a Resolution Establishing PACE Program

Select a County Administrator

Resource Slides

Sector Energy Consumption

Industrial Energy Consumption

Texas Drought Impact

Texas’ Projected Water Demands

and Existing Supplies

Projected Texas Population

“More than 1,000 people…move to Texas every day.”

Gov. Rick Perry, 12/2012.

Example: Retrofit Bid for 5-Star Hotel

ECM Description Annual Dollar Savings Project

Cost

Pay-

backElectric Gas Water O&M Total

Replace two 350 ton Chillers $5,000 $5,000 $10,000 $720,000 72.0

Add Cooling Tower Isolation

Valves$5,000 $5,000 $7,000 2.5

BAS for Central Plant $1,000 $4,000 $5,000 $65,000 10.8

Convert penthouse DX

systems to CHW$15,500 $4,000 $19,500 $97,500 5.0

VFDs on 4 AHUs Economizer $750 $3,000 $3,750 $50,000 13.3

Water Conservation Retrofits $1,000 $5,000 $25,000 $31,000 $255,000 8.2

Convert PIB/VAV boxes to

EMCS Control$20,000 $20,000 $80,000 4.0

Add DC Controls to AHUs in

Penthouse$3,000 $1,500 $4,500 $60,000 13.3

Lighting Retrofits $92,000 $1,500 $93,500 $221,000 2.9

BAS Night Setback for Meeting

Rooms$4,000 $4,000 0.0

Totals $230,250 $5,000 $25,000 $20,500 $280,750 $1,806,000 6.4

Barriers PACE Solutions

G r o s s L e a s e S c e n a r i o