Eligible Measures for PACE Financing
Energy Efficiency Energy management systems
Insulation and air sealing
Boilers and furnaces
Energy recovery and redistribution systems
Motors and drives
Water Efficiency Greywater systems
Renewable Energy Solar hot water
SOURCE: DOE, COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY (PACE) PRIMER
assessment on the property bill, which is
a lien that is senior to the mortgage loan.
While the PACENation website lists more
than 100 lenders that have consented to
a PACE transaction,
none are obliged to do
so. Moreover, lending
institutions don’t have
branches or regions,
says David Gabrielson,
reports that contrac-
tors and owners with
skill and experience
in PACE often have
an advantage in get-
ting approval from the
Properties with mortgages that have
been pooled into a commercial mortgage-backed security pose a special problem
because the mortgage with the PACE
assessment would no longer meet the
original underwriting criteria of the pooled
security. As a result, properties with secu-ritized mortgages are not a good fit.
THE BENEFIT OF BUNDLING
A single PACE transaction can include
a number of different system upgrades.
It is often in the building owner’s interest
to bundle multiple measures into a deep
retrofit project. For example, an elevator
continued from page 9
TOTAL OF $25
40 COMMERCIAL PROJECTS.
long payback from the energy savings –
30 years or more – making it very difficult
to finance the improvement by itself. But
if the modernization were part of a larger
bundle that included solar panels and LED
relamping, the financing might pencil out
favorably. PACE lets owners think big about
A PACE transaction completed in
October provides financing for three Simon
Property Group retail malls in Texas: Barton
Creek Square in Austin, Lakeline Mall in
Cedar Park, and Round Rock Premium
Outlets in Round Rock. The three malls
will be retrofitted with LED lighting and
low-flow water fixtures, and two of the
malls will also receive HVAC improvements.
The three transactions totaled $3 million.
Financing was provided by Petros PACE
Finance of Austin, TX.
PACE programs across Texas are based
on a “PACE in a Box” model designed by
volunteer stakeholders. The model provides
a consistent approach that expedites the
The first step for owners looking at
PACE is determining whether a program
exists in their local property tax district.
The PACENation website has a list of states
with enabling legislation and local programs
within the states. The website has a number of practical resources to help owners
through the process, including guides to
working with existing lenders, case studies,
a legislative toolkit and a document library.
Could You Save
HOW NEW COOLING TECHNOLOGY
PERFORMS IN THE FIELD
Anew control technology for chiller plants relies on variable speed technology to deliver cooling more efficiently. Recent field tests noted savings of
about 35% on energy consumption over the
existing chiller plant’s baseline performance.
Could the technology benefit your facility?
HOW IT WORKS
Space cooling typically accounts for
about 7.4% of a building’s energy consumption (or up to 9.6% for office buildings), but because space cooling is primarily driven by electricity, it may represent
more than its share of the energy bill, GSA
notes. The control technology is intended
to minimize the total power requirements
of centrifugal chiller plants by optimizing
the pressure and temperature setpoints for
chilled and condenser water while controlling
pump and fan speeds for greater efficiency.
The operating configuration is customized
to each installation but generally uses the
minimum number of chillers possible to satisfy mechanical cooling demand, with one
serving as the primary chiller and the others
put into service as needed. Chilled water and
condenser water pumps start and stop along
with the chillers.
The technology was tested at the Frank
M. Johnson Jr. Federal Building and U.S.
Courthouse in Montgomery, AL, from
January to August 2013. The two five-story
buildings are linked together and cover
roughly 460,000 square feet. Space cooling is provided by a central chiller plant with
three 400-ton centrifugal chillers, which
were installed in 1998 and utilize constant-speed compressors and a primary-secondary
chilled water distribution system.