The details
As previously reported by Community Impact, the Property Assessed Clean Energy Program was brought before Montgomery County commissioners in March, and it allows commercial property owners to apply for long-term loans to upgrade energy and water infrastructure such as:
- Heating, ventilation and air conditioning systems
- LED lighting
- Insulation
- Low-flow bathroom fixtures
The proposal was brought forward by Lee McCormick, founder and president of Lone Star PACE–an organization which specializes in managing PACE programs on behalf of community business owners and taxing entities interested in the programs.
How it works
McCormick said the loan is based on the assessed value of a commercial property, which is why Montgomery County had to agree to sponsor the program before the financing was available to business owners. However, McCormick said the county has no stake or liability should a business or property owner default on their loan, and Lone Star PACE would oversee the repayment of the loan.
“They have a low-risk loan for a longer period of time at a relatively low interest rate. The whole goal is to align the utility bill savings with the cost of the financing,” McCormick said. “The first thing that the developers tend to do is cut out the higher efficiency type of equipment. So this kind of gives them the chance to keep that higher efficiency equipment in their budget for that building.”
McCormick said three businesses in Montgomery County–including a bioscience firm, a retail developer and a multi-family development–have already signed on to be a part of the program.
In their words
“As one of the fastest-growing counties in Texas, Montgomery County stands to benefit significantly from increased investment in sustainable, energy-efficient infrastructure. This program will support economic growth, job creation and resource conservation throughout the region,” Lone Star PACE President Lee McCormick said.
“Montgomery County is committed to smart growth strategies that strengthen our economy while preserving the natural resources that make this region so special,” Montgomery County Judge Mark Keough said. “By launching a C-PACE program, we’re giving local business owners access to a powerful financing tool that will support energy efficiency, job creation and long-term economic resilience.”
