Service Provider FAQ

TX-PACE (Texas Property Assessed Clean Energy) is a proven financial tool that enables commercial, industrial, agricultural, nonprofit, and multifamily property owners to upgrade facility infrastructure with little or no upfront capital outlay. The program is designed so that owners lower their operating costs and pay for eligible improvements with the savings generated, taking advantage of affordable, long-term financing.

Service providers will benefit from providing a new offering for customers, increased job creation and retention, and will be able to answer the age-old question, “How are we going to pay for it?” TX-PACE is transforming how contractors look at projects, proving that there is a clear path forward for upgrading infrastructures, implementing energy efficiency, distributed generation, and water-use reduction measures.

TX-PACE is an open-market program, so property owners may choose their service providers. TPA does not endorse individual contractors or service providers. Professionals must meet applicable licensing, professional qualification, and TX-PACE project requirements for the work they perform. To learn how the process works, explore TPA's self-paced training resources.

Visit the Service Provider Directory to explore participating providers. For listing questions, contact admin@texaspaceauthority.org.

Once all documents and materials required as part of a TX-PACE project application have been submitted, allow 10 business days for review and evaluation. If approved, Texas PACE Authority will then issue a notice to proceed to closing. The earlier TPA is contacted, the faster it can assist in streamlining the process.

Property owners are strongly encouraged to address measurement and verification (M&V) in their contracts with engineers and service providers. The Technical Standards Manual requires the service provider to design an M&V program for the property owner’s consideration, but does not mandate that the property owner adopt an ongoing M&V plan. The PACE Act requires that an Independent Third-Party Reviewer (ITPR) review that the energy conservation measure and/or a water conservation measure is installed correctly and operating as intended.

Savings guarantees are not required, although they can be offered. The PACE statute requires an independent third-party engineer to review the baseline and savings projections to make sure they are consistent with the Technical Standards Manual requirements.

In addition to satisfying all underwriting requirements of PACE in a Box *, projects must meet three technical requirements.

• First, the property’s current water and energy use is measured so that a baseline for comparison is established.
• Second, each potential energy or water conserving measure is evaluated to determine projected savings compared to the baseline in a technically sound, consistent, and transparent manner. Findings from these two steps together are compiled in a document referred to as an energy /water assessment report. PACE law requires that each report is evaluated by an independent third-party reviewer (ITPR) who is a licensed engineer.
• Third, after the project retrofit activities are completed, the project must be reviewed by the ITPR to ensure that the project meets the intent of the energy/water assessment report, is properly completed, and is operating as intended. The purpose of performing measurement and verification (M&V) after installation is to validate that the measures are operating as expected and the energy/water savings are being realized. Ongoing M&V is optional, but highly encouraged. Project evaluation by an ITPR provides assurances to the property owner, the capital provider, and the local government that due diligence has been met and that a professional has validated the project using standardized engineering protocols.

*PACE in a Box is a standardized toolkit for Texas local governments, with model documents and underwriting and technical standards. Developed through a broad stakeholder collaboration and formerly managed by Keeping PACE in Texas, it is now maintained by the Texas PACE Standards Alliance (TPSA). Consult the TPSA Document Library for the latest standards and ITPR Workbook.

To successfully complete a TX-PACE application, all projects must be accompanied by an audit from an Independent Third-Party Reviewer (ITPR). To be of value, the work of the ITPR must be both professionally qualified and without conflict or relationship to the project they are reviewing. An ITPR must be a licensed Professional Engineer with energy/water efficiency experience. Additionally, the Professional Engineer should have at least one of the following certifications:

• American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE)
  • Building Energy Assessment Professional (BEAP)
  • Building Energy Modeling Professional (BEMP)
• Association of Energy Engineers (AEE)
  • Certified Energy Manager (CEM)
  • Certified Measurement and Verification Professional (CMVP)
  • Certified Energy Auditor (CEA)
• AABC Commissioning Group
  • Certified Commissioning Authority (CxA)
• Building Commissioning Association
  • Certified Commissioning Professional (CCP)
• Energy Management Association
  • Energy Management Professional (EMP)

All projects will be required to follow protocols developed by the Investor Confidence Project (ICP). To this end, we encourage all ITPRs to be credentialed Quality Assurance Providers (QAP) from the ICP. If you would like more information on ICP and becoming a credentialed QAP, please visit:   http://www.eeperformance.org/

TX-PACE projects must document projected energy or water savings. A key evaluation metric is the Savings-to-Investment Ratio (SIR). Generally, an SIR greater than 1 means the projected lifetime savings exceed the project investment, including applicable financing costs. Review the current PACE in a Box Technical Standards Manual and ITPR Workbook in the TPSA Document Library for detailed technical requirements.

The goal of TPA is to have a well-resourced, efficient, and financially stable organization while keeping costs to a minimum and operating in a lean fashion. To that end, TPA charges three types of fees as part of administration, an application fee, a transaction fee and an annual servicing fee.

For detailed information about our fee structure, visit the Program Documents page >>

No, there are many available partners that can assist with developing and implementing projects and can help accelerate your project deal flow.

Yes. TPA provides self-paced TX-PACE training and educational resources for service providers. Check the TPA website for additional learning opportunities and upcoming events.

Visit the Service Provider Directory to explore participating providers. For listing questions, contact admin@texaspaceauthority.org.

PACE in Texas is open-market, and consequently a wide range of parties can provide capital for TX-PACE financing. Eligible third-party capital providers may include:

• Any federally insured depository institution such as a bank, savings bank, savings and loan association, and federal or state credit union;
• Any insurance company authorized to conduct business in one or more states;
• Any registered investment company, registered business development company, or a Small Business Administration small business
• investment company;
• Any publicly traded entity; or
• Any private entity that:
  • Has a minimum net worth of $5 million;
  • Has at least three years’ experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years’ experience in business or industrial lending or commercial real estate lending; and
  • Can provide independent certification as to availability of funds.

All capital providers must have the ability to carry out, either directly or through a servicer, the bookkeeping and customer service work necessary to manage the assessment accounts.

Note that Texas PACE Authority neither recommends nor endorses any particular PACE capital providers. This directory is provided solely for convenience in consolidating a list of PACE service providers.

Explore potential lenders and other service providers in the TPA Service Provider Directory.

You can contact us directly at admin@texaspaceauthority.org OR 1-855-738-PACE (7223)

Visit the "Where is PACE?" page to find out.