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Paragon Surge has a listed range of 'Personal (half-elf only)'.
Brown Fur Transmuters can spend a point and cast personal ranged spells as touch spells.
Can a half-elf BFT cast Paragon Surge as a touch spell on non half-elf allies?
If no, can a non-half-elf BFT cast Paragon Surge on a half-elf ally?
Answering your questiosn in order.
1. Yes.... the spell however will have no effect.
2. No, because non-half-elves don't have access to the spell under ordinary circumstances.