Deaf Smith County Unlocks Green Financing to Boost Economic Development

HEREFORD, Texas – June 15, 2026 – Deaf Smith County is poised for a new wave of economic growth and sustainable infrastructure development following the establishment of its first Commercial Property Assessed Clean Energy (C-PACE) program. In a move approved by the County Commissioners Court on June 9, the county has appointed Texas-based Lone Star PACE as the program’s third-party administrator, opening the door for commercial property owners to access an innovative and powerful financing mechanism.

The C-PACE program is designed to provide long-term, fixed-rate financing for energy efficiency, water conservation, and renewable energy upgrades on commercial properties. This initiative provides a critical tool for local businesses and developers looking to modernize aging buildings, reduce operating costs, and invest in new construction projects.

“Deaf Smith County is committed to creating opportunities for investment and economic growth,” said County Judge D.J. Wagner. “Establishing a C-PACE program gives developers and property owners another tool to make projects financially feasible while encouraging efficient use of energy and water resources. We are pleased to bring this program to our community and look forward to seeing the benefits it can deliver.”

A New Financial Engine for West Texas

C-PACE is not a traditional loan but rather a voluntary property assessment, a mechanism authorized in Texas by Senate Bill 385 in 2013. Private capital providers, not taxpayers, fund 100% of the project costs. The financing is then repaid over terms of up to 30 years through an assessment added to the property’s tax bill. Because the assessment is tied to the property itself, it automatically transfers to the next owner upon sale, removing a significant barrier for owners hesitant to take on long-term debt.

This structure offers substantial advantages for commercial property owners. It eliminates the need for large upfront capital expenditures, allowing businesses to preserve cash for core operations. The long repayment terms often result in annual energy and water savings that exceed the annual assessment payment, creating a net positive cash flow from day one. C-PACE can fund up to 35% of a project's total capital stack for new construction or gut rehabs, and can also be used to retroactively finance recently completed upgrades.

According to one industry analyst, C-PACE is a uniquely effective tool for property owners. “It’s a simple and affordable way to improve capital efficiency and enhance cash flow,” the analyst noted. “For owners looking to modernize, especially with historic buildings that are often energy-inefficient, it’s a game-changer.” The program is available for a wide range of properties, including office, retail, industrial, agricultural, hospitality, and nonprofit facilities, as well as multifamily residential properties with five or more units.

Driving Economic Growth and Modernization

The introduction of C-PACE is expected to serve as a significant economic catalyst for Deaf Smith County. By filling a crucial financing gap, the program makes previously unfeasible projects viable, encouraging new investment and the revitalization of existing commercial building stock.

“Access to affordable, long-term capital is critical to attracting investment and supporting economic growth in communities across Texas,” said Lee McCormick, President of Lone Star PACE. “C-PACE provides property owners with a flexible financing solution that can help projects move forward, strengthen building performance and create lasting value for the county.”

This economic ripple effect includes direct job creation in construction, engineering, and professional services. A notable case study from Wichita Falls demonstrates this potential: a $13.4 million C-PACE project facilitated by Lone Star PACE helped transform a vacant industrial building for Panda Biotech, creating dozens of manufacturing jobs while dramatically improving the facility's efficiency. By incentivizing the modernization of aging infrastructure, C-PACE makes commercial properties more competitive and attractive to tenants, which in turn strengthens the local tax base and stimulates the broader economy.

Championing Sustainability and Resilience

At its core, the C-PACE program is an instrument for advancing environmental sustainability. Eligible projects are those that demonstrably reduce energy or water consumption or generate clean energy. These can range from installing high-efficiency HVAC systems, LED lighting, and modern insulation to implementing advanced water conservation measures and deploying on-site renewable energy systems like solar panels.

Lone Star PACE’s portfolio highlights the tangible impact of such projects. Since 2020, developments financed through its programs have achieved cumulative annual savings of 13.5 million kilowatt-hours in energy and 21 million gallons of water. These reductions not only lower utility bills for property owners but also decrease the strain on local utilities and the Texas power grid, enhancing community-wide resilience.

By adopting C-PACE, Deaf Smith County joins a growing roster of Texas jurisdictions that are leveraging private capital to meet public policy goals. The program positions the county as a forward-thinking community committed to environmental stewardship, a quality that is increasingly valued by businesses and investors. It provides a market-driven solution to accelerate the adoption of green technologies and build a more sustainable future.

Lone Star PACE: An Experienced Administrator at the Helm

In selecting Lone Star PACE, Deaf Smith County has partnered with one of the most experienced C-PACE administrators in the state. Since its establishment in 2017, the firm has built an impressive track record, facilitating $338 million in C-PACE financing for projects totaling over $1.5 billion in value. The addition of Deaf Smith County expands its footprint to 30 cities and counties across Texas.

Lone Star PACE’s portfolio includes high-profile projects such as a $27 million recapitalization of efficiency systems for the HALL Arts Hotel in Dallas and a $40 million investment in the ViVa Center mixed-use development in Houston. The firm also serves as the administrator for the North Central Texas Council of Governments (NCTCOG), demonstrating its ability to manage large-scale regional programs.

As the program administrator, Lone Star PACE will act as a central resource for the county, managing the application process and ensuring all projects meet the technical and financial standards of the Texas PACE Authority. The firm works as a liaison between property owners, contractors, and private capital providers, simplifying what can be a complex process and ensuring a smooth execution from start to finish. This partnership provides Deaf Smith County with a turnkey solution to launch a successful program that fosters both economic prosperity and environmental responsibility.