There is exciting news out of North Central Texas about the economic development program known as TX-PACE – the Texas Property Assessed Clean Energy Program. The Texas PACE Authority (TPA) is pleased to have been selected by the North Central Texas Council of Governments (NCTCOG) as an administrator of a proposed regional Texas Property Assessed Clean Energy (TX-PACE) program. In February 2025, NCTCOG solicited responses to a request for qualifications from potential administrators of a regional TX-PACE program to be offered in all of the 16 counties within NCTCOG’s jurisdiction. On August 4th, NCTCOG sent a Regional PACE Program Update, including project highlights and links to a variety of PACE resources. 

What is TX-PACE?

TX-PACE is a powerful economic development tool that allows commercial, industrial, and institutional property owners to finance energy and water efficiency improvements with no upfront costs. These upgrades are paid for over time through savings on utility bills, boosting net operating income while reducing the demand on limited energy and water resources.

Why This Matters

TPA already serves as a TX-PACE program administrator in five counties and twelve municipalities in the 16-county NCTCOG region. The opportunity to bring all county and municipal jurisdictions within NCTCOG under one regional program will extend access to a significant economic development tool to many more local governments and commercial and industrial property owners in the region. The TX-PACE program creates opportunities for qualified  property owners to  increase net operating income while reducing utility bills and the demand for energy and water resources that are currently constrained by the demands of a vibrant and growing economy in North Central Texas.

A Proven Model with Statewide Reach

In 2013, the Texas Legislature enacted SB 385, the Texas Property Assessed Clean Energy Act (TX-PACE), subsequently codified as Chapter 399 of the Local Government Code. The purpose of the Act was to create incentives for commercial, industrial and institutional property owners to construct or renovate buildings and infrastructure that reduce operating costs by conserving energy and water utility resources. TX-PACE directs the savings in utility costs to repayment of the project financing obligations, resulting in cost recovery for the owner and a much more secure loan for capital providers. The TX-PACE program represents a financing mechanism that involves mutually beneficial agreements between local governments, private capital providers and private property owners that ensure that the projects undertaken generate savings equal or greater than the actual development costs.

TX-PACE is an economic development tool that offers many advantages that other programs do not.

• Completely voluntary and imposes no mandates on any participant,
• Imposes no cost or risk to local governments or taxpayers, 
• Only applicable to projects that pay for themselves through verified utility cost savings,
• Based on very stringent underwriting and technical standards, and
• Represents financing opportunities for private lenders with substantially less risk.

A Consistent and Collaborative Approach

Any local government wishing to make the TX-PACE program available must formally adopt the program within its jurisdiction. One essential element of TX-PACE that was important to legislators creating the program was that the program be administered consistently in all participating local jurisdictions. The Texas PACE Authority (TPA) is a nonprofit organization established for the express purpose of administering local TX-PACE programs at no cost or risk to a participating local government. As of August 1, 2025, TPA administers a model PACE program that meets the letter and intent of the TX-PACE act in 109 cities and counties in Texas. 

To further the goal of making PACE more widely available, some counties have agreed to cooperative arrangements under the leadership of a regional council of governments to further ensure uniform administration, enhance the consideration of TX-PACE in regional planning and economic development and better support outreach and education efforts related to TX-PACE. TPA currently operates cooperatively with those counties within both the Lower Rio Grande Valley Development Council (LRGVDC) and the Alamo Area Council of Governments (AACOG).

Looking Ahead in North Central Texas

Local governments in the Dallas-Fort Worth Metroplex have long been TX-PACE pioneers, using the program to attract private capital, increase property value, and reduce utility costs. With NCTCOG’s vision for a regional program, more communities can benefit from:

• More financing options for local businesses.
• Increased investment in building infrastructure.
• Reduced environmental impact from lower resource consumption.

TPA is honored to be selected for this role providing C-PACE Administration services and looks forward to partnering with NCTCOG to help expand access to this free-market, cost-effective financing tool across the region.

About Texas PACE Authority:

Texas PACE Authority (TPA) is the nonprofit administrator of more than 100 local TX-PACE programs. TPA empowers commercial, industrial, and multifamily property owners across Texas to make energy and water-saving upgrades that reduce costs, benefit the environment, and support local communities. Working with local governments, lenders, and service providers, TPA has facilitated over half a billion dollars in new investment statewide.  Learn more at www.TexasPACEAuthority.org