Dallas Banker Teske Tapped for PACE Committee

Bank Sustainably?

Find out how rewarding it can be.
Apply now.

Find out why Green Bank is different and how we live up to our name.

We’ve always done the right thing. And, like you, we’re now working to conserve resources in every step of our process.

Online and electronic banking, green loans, support of 108 Houston-based environmental non-profits and community involvement. And that’s just for starters.

Dallas Banker Teske Tapped for PACE Committee

3rd Party Financing Critical to Encourage Resource Efficiency

 

Tim Teske webTim Teske, Senior Vice President of Financial Institutions Banking with Green Bank, has been named to the committee working to implement Texas’ new Property Assessed Clean Energy (PACE) Act.  Teske and co-team leader Barry Williams of First Victoria are developing recommendations for the 3rd party (bank) financing component of the law.

In June, Texas Governor Perry signed the PACE Act into law.  It authorized municipalities and counties to allow commercial and industrial property owners to obtain low-cost, long-term loans for water conservation, energy-efficiency improvements and renewable retrofits to existing properties.   The law allows the PACE loans to be secured by assessment liens and repaid through annual assessments, like property taxes, which are collected by local governments and remitted to the PACE lenders.

“Property owners will use PACE financing to improve the utility performance of properties and lower overall costs.  With the lien on the property and not the owner, banks are encouraged to finance these improvements because of the very low risk factor,” said Teske.  

PACE financing will be available for permanent improvements to the property that are intended to decrease water or energy consumption or demand.  Eligible improvements will vary based on the PACE program created by individual municipalities and counties.  Generally, the most common improvements will include:

  • Mechanical system modernization including HVAC, chillers, boilers, furnaces and lighting
  • Energy management and controls systems
  • Renewable energy systems and wastewater recovery/reuse
  • Water conservation and irrigation systems

The loan program is expected to significantly increase the state market for energy and water saving projects.  Currently, Texas industry accounts for 33% of the total national utility consumption.   It is also expected that the uptick in conservation projects will benefit service providers.

“We’re proud that one of our bankers has been following this legislation since the beginning,” said Geoff Greenwade, Green Bank president and CEO.  “This is great leadership opportunity from a banking and resource management position.  We’re seeing initial interest from some of our current real estate clients and the firms that perform these large scale improvements.”

Initial sub-committee progress reports have been made and volunteers are working on final recommendations. 

“Recommendations for financing options, loan servicing and outreach to local governments are all being developed,” said Teske.  “Although PACE loans will be administered on a county or city basis, we’re working to develop a basic roadmap that any Texas commercial property owner and lender can follow.”