GCA and GCIDA have the authority to provide for a number of different types of conduit bond issuances that may be either tax-exempt or taxable. In 2021, the Texas Legislature also provided authority for GCIDA to issue conduit debt under the Property Assessed Clean Energy (PACE) program.
Private activity bonds or PABs generally are bonds where non-governmental entities have a 10% or greater interest in either the facilities being financed or a 10% greater share of the proceeds of the bonds. Tax-exempt PABs issued in the State of Texas are subject to the Texas Bond Review Board PABs allocation process.
The issuance of conduit bonds may be either through a sale in the public debt markets or private placement with a financial institution or other sophisticated investor. Bonds issued by GCIDA are required to be approved by the Texas Economic and Development Office of the Governor of Texas. Additionally, as with all bonds issued by governmental and quasi-governmental entities in the State of Texas, bonds of GCA and GCIDA must be approved as to legality by the Attorney General of Texas.
GCA and GCIDA Conduit Bond Financings
- Water Supply Facilities
- Sewage Facilities
- Solid Waste Disposal Facilities
- Dock and Wharf Facilities
- Governmental Airports
- Local Furnishing of Steam or Electricity
- Small Issue Industrial Development Bonds
- Water Pollution Control Facilities
- Air Pollution Control Facilities
- Water Supply Facilities
- Certain projects that create certain jobs related to:
- manufacturing and industrial facilities,
- research and development facilities,
- military facilities, including closed or realigned military bases,
- transportation facilities, including airports, hangars, railports, rail switching facilities, maintenance, and repair facilities, cargo facilities, related infrastructure located on or adjacent to an airport or railport facility, marine ports, inland ports, mass commuting facilities, and parking facilities,
- distribution centers,
- small warehouse facilities capable of serving as decentralized storage and distribution centers,
- certain job training facilities for use by institutions of higher education,
- regional or national corporate headquarters facilities,
- streets and roads, rail spurs, water and sewer facilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements,
- telecommunications and internet improvements,
- beach remediation along the Gulf of Mexico,
- projects for the creation or retention of certain jobs for the Coast Guard (except the Coast Guard Academy) which are for promoting or supporting a military base in active use to prevent the possible future closure or realignment of the base; attracting new military missions to a military base in active use; or redeveloping a military base that has been closed or realigned,
- projects suitable for use for a career center, if the area to be benefitted by the career center is not located in the taxing jurisdiction of a junior college district and
- job training required or suitable for the promotion of development and expansion of business enterprises.
PACE is an innovative, low-cost, long-term financing for water and energy efficiency and conservation improvements, including distributed generation to commercial and industrial properties. The PACE financing program allows for private-sector lenders and property owners to finance qualified improvements using contractual assessments voluntarily imposed on the property by the owner. As a result, the utility cost savings become the repayment mechanism for the debt.
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Gulf Coast Authority
910 Bay Area Blvd.
Houston, TX 77058
Phone: (281) 488-4115