Feb. 25, 2013
Thompson & Knight LLP
has organized a statewide effort to enact legislation allowing property owners in
to finance water conservation and energy efficiency upgrades to existing buildings with long-term loans to be repaid through local taxing districts under voluntary property assessments.
The legislation, introduced in SB 385 and HB 1094, will update a 2009
statute to fully authorize municipalities and counties to use property assessments as a conservation and economic development tool. The financing program, known as Property Assessed Clean Energy (PACE), creates a secure repayment structure so that private sector lenders can make loans to pay for the improvements at reasonable interest rates. In the last few years, PACE legislation has been adopted by 27 other states and a number of successful PACE loan programs are already underway.
SB 385 is sponsored by State Senator
, Chairman of the Senate Business and Commerce Committee. HB 1094 is sponsored by State Representative
, Chairman of the House Energy Committee. The goal of these bills is to overcome a number of barriers to investment in energy efficiency and water conservation.
"Some time ago we recognized the deficiencies in the current law, which does not provide sufficient authorization to implement PACE financing programs," says
, a Partner in the
office of Thompson & Knight. "We evaluated PACE statutes enacted in other states and used the best of them to craft legislation that will facilitate viable PACE financing programs in
As part of that effort, Thompson & Knight formed Keeping PACE in
, a non-profit association, to gain public awareness and business sponsorships. With the support of a full-time Executive Director and several Firm attorneys, the association has educated numerous companies, trade associations, and other organizations about the many benefits that can be derived from PACE programs.
"We're excited that SB 385 and HB 1094 have been introduced," says
, a Partner in Thompson & Knight's
office, "and we are optimistic regarding the passage of this legislation during this session. We also hope that our Firm's leadership on this issue has helped raise awareness of the fundamental importance of effective PACE programs in
More information about PACE and links to SB 385 and HB 1094 can be found at
SOURCE Thompson & Knight LLP