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Posts Tagged ‘AB 811’

Ukiah Daily, March 9, 2010

Cool Small Wind Device

Mendocino County, along with the counties of Sonoma, Lake, Humboldt, Del Norte, Trinity and Siskiyou will be receiving a $4.4 million grant from the California Energy Commission to initiate the proposed North Coast Energy Independence Program. The NCEIP is patterned after and represents an expansion of the Sonoma County Energy Independence Program. Implementation of the NCEIP will provide Mendocino County residents and businesses access to funding for residential and commercial energy efficiency and water conservation improvements, and stimulate the County’s economy through development of clean technology jobs.

The NCEIP will be implemented through the North Coast Integrated Regional Water Management Group, a coalition of Mendocino and six other North Coast counties. The NCIRWMG’s governance committee will serve as the principal contact with the California Energy Commission and administer the grant on behalf of the participating North Coast counties. Start-up and implementation of the NCEIP will occur within each county under direction of the respective County Board of Supervisors.

The North Coast and Sonoma County Energy Independence programs are the product of recent State legislation, Assembly Bill 811. Assembly bill 811 became law in 2008 and authorizes cities and counties to finance the installation of energy and water efficiency improvements to existing structures within a designated geographic area. Under AB 811, a city or county can loan money to property owners for the installation of permanent energy and water energy efficiency improvements, with the loan being repaid as a part of the property owner’s regular property tax payments. Repayment of the loan is tied to the property. Consequently, when the property changes ownership the loan repayment obligation automatically transfers to the new property owner.

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OurGreenJourney, May 20, 2009

AB-811-Sonoma-1st-InstallSonoma County has funded its first clean energy loan secured by a lien on property taxes. As we have posted before, the Sonoma County Energy Independence Program is California’s first county wide energy efficiency financing district, authorized by AB 811.

The loan of $25,500 went to homeowners and paid for a 5 kilowatt photovoltaic system, net of an $8,200 California Solar Initiative rebate, and 30% tax credit on the remaining system cost. And it’s reported that there is already $6 million worth of applications for more loans from the programs.

During the Urban Land Institute’s Developing Green Conference last week, the participants talked seriously about the critical milestones that would affect the success of this funding mechanism:

The additional property tax liens created by these loans might disturb some commercial real estate lenders who might see them as a threat to the priority of their loan.

Several folks felt that lenders might become more relaxed about this when they compared the actual loan size to their own mortgage loans (very small), as well as the fact that the loan might accomplish energy efficiency retrofits which upgrade the property – and possibly even its cash flow and value. Note that Sonoma County’s program tells commercial property owners to get the approval of their lenders before applying for their loans.

We’re all still waiting to see that the bond markets will buy paper based on these types of loans, their terms, pricing and conditions. That acceptance is needed to bring increased secondary market liquidity to these funding mechanisms. Without it, these size programs will remain too limited to have much environmental impact and potentially just wither on the vine.

Homebuilders and homeowners should think for a second –> what does it mean for home prices in those areas where homeowners have direct access to easy credit for clean energy systems, energy efficiency retrofits, not to mention some pretty good rebates and tax credits?

Do you think that easy access to this type of green financing (and the benefits of the retrofits that it enables) makes it harder for other property owners to sell their unretrofitted properties at market rates? Will more homebuilders have to build green homes to compete?

Yes, AB 811’s gonna keep things interesting — and good — for a while.

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MendoCoastCurrent, April 26, 2009

berkeleysolar1The California Energy Commission is conducting a workshop on Wednesday, April 29, 2009 in Sacramento, to discuss the American Recovery and Reinvestment Act (ARRA) provisions related to funding for energy projects.

The workshop will focus on Assembly Bill 811 (Levine, Chapter 159, Statutes of 2008) that finances the installation of energy efficiency improvements, distributed generation and renewable energy sources through contractual assessments to determine if and how ARRA money can advance these programs in local jurisdictions.

This workshop is intended to inform and discuss with the public and various stakeholders the types of projects that may be funded, eligible recipients of funds and application processes.

Wednesday, April 29, 2009 from 10 a.m. – 5 p.m.
California Energy Commission
1516 Ninth Street
First Floor, Hearing Room A
Sacramento, California

Remote Attendance
Webcast – Presentations and audio from this meeting will be broadcast over the Internet through Windows Media. For details, please go to [www.energy.ca.gov/webcast/].

Webcast participants will be able to submit questions on areas of interest during the meeting to be addressed by workshop participants via e-mail at [AB811@energy.state.ca.us].

Purpose
Energy Commission staff are exploring the efficacy of supporting AB 811 type programs with American Recovery and Reinvestment Act funds. These would promote the installation of energy efficiency and renewable energy sources or energy efficiency improvements that are permanently fixed to real property and are financed through the use of contractual assessments. Included in this discussion will be the costs and benefits of financing such a program, local and state barriers that may exist to implementing AB 811 related programs, and exploring other financing mechanisms that could be quickly implemented to achieve similar energy efficiency project installation and financing as described in AB 811.

Note that the following criteria for project priorities and expending ARRA funds will be taken into consideration when discussing AB 811 and/or other funding:

  1. Effectiveness in stimulating and creating or retaining green jobs in California;
  2. Achieve lasting and measureable energy benefits consistent with the “Loading Order” priority of energy efficiency systems;
  3. Expend money efficiently, with accountability and minimal administrative burden;
  4. Contribute to meeting California’s energy policy goals as defined by the Energy Commission’s Integrated Energy Policy Report, California Air Resources Board’s AB 32 Scoping Plan as well as other relevant energy policy documents; and
  5. Leverage other federal, state, local and private financing to sustain the economy.

Background
ARRA of 2009 will provide nationally $787 billion in economic investment. The goals of ARRA are to jump start the economy and create jobs for Americans.

The Energy Commission is expected to administer three programs that include: the State Energy Program for approximately $226 million; the Energy Efficiency and Conservation and Block Grant Program for approximately $49.6 million; and the Energy Efficient Appliance Rebate Program estimated at approximately $30 million.

In addition, there is more than $37 billion available nationwide that the United States Department of Energy (DOE) will administer through competitive grants and other financing for energy- and climate change-related programs. The Energy Commission will work with other state agencies, utilities, and other public and private entities to identify ways to leverage these funds for California projects.

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JEFF QUACKENBUSH, North Bay Business Journal, October 6, 2008

Santa Rosa – Sonoma County governments have aggressive goals and strategies for curbing gases blamed for climate change, and they now have a new tool for enticing owners of existing commercial and residential structures into reducing emissions via energy-efficient upgrades.

Several North Bay local governments have put in place green-building standards to encourage or require green building practices and materials on new construction. Green-building standards are gelling in St. Helena, Napa and Napa County.

Yet cutting emissions attributed to existing homes and commercial buildings has been one of the biggest challenges toward the goal of cutting greenhouse gas emissions. 

Assembly Bill 811, signed in July, gives cities and counties authority to create benefit assessment districts in which property owners can decide to “finance” energy upgrades. Owners would enter a “loan” contract with a local government and pay it back via an item on their property-tax bills that would be passed from one owner to the next over 10 or 20 years. It would be senior to any other debt.

Sonoma County is one of the first governments statewide to pursue such districts. 

Sustainable Napa County has been holding workshops with solar-energy vendors on innovative financing programs, and the group is in early talks with local lawmakers about implementing financing akin to the AB 811-like Berkeley First effort, according to program manager Sally Seymour.

Go Solar Marin early 2008 offered assistance for residential photovoltaic systems. The Marin Clean Energy community choice aggregation program for creating renewable-energy power stations and selling electricity to residents is in development.

Last September, the Sonoma County Board of Supervisors opted to explore an AB 811 district. The concept will be tested with Sonoma County Water Agency efforts in the Airport Business Center business park near the Charles M. Schulz-Sonoma County Airport, along Eighth Street East near Sonoma and with homes around the community of Geyserville.

An Airport Green Business Community has formed to increase energy and water efficiency, and businesses representing about two-thirds of the business park’s square footage are participating. The effort is seen as a model for such parks nationwide. Highly treated recycled wastewater from a water agency plant in the park would be used for heating and cooling buildings – saving businesses up to half on utility rates – and irrigating landscapes.

The water agency is exploring a similar use of recycled wastewater from its Sonoma Valley plant for wine-related industrial operations along Eighth Street East and potentially in the Geyserville area from a small treatment plant there. 

One of the prime movers for the county’s AB 811 and other greenhouse gas-fighting efforts is water agency General Manager Randy Poole. The water agency committed to offsetting all carbon dioxide emissions connected to its operations by 2015. “If this program is successful this could be an economic stimulus package not only for the county but also for the country,” Mr. Poole said.

Sonoma County governments signed onto the Climate Action Campaign to cut emissions of carbon dioxide and other greenhouse gases by 25% below 1990 levels by 2015, 10 years sooner than the state’s goal under AB 32. Other municipalities in the county have expressed interest in joining the district, and airport-area businesses have too.

“We’re hoping that interest converts into dollars,” said county Auditor-Controller-Treasurer-Tax Collector Rod Dole. 

County government is moving methodically toward implementing AB 811 because costs to the cash-cautious county could be considerable to get the program started. For example, the city of Palm Desert, an AB 811 leader, has put $2.5 million in city money toward lowering interest rates for property owners to 7% from 8 % the county is paying for the financing.

Mr. Dole thinks the county may not have to dip into its coffers for initial projects. One possible source is bank lines of credit to local government, through which a bank would buy a note, say, for $4 million to cover 100 $40,000 private solar projects.

Average funding per project in Palm Desert for replacement of pool pumps and air-conditioners was $40,000. Mr. Dole anticipates similar per-project averages locally.

Another source would be issuance of private-active bonds after enough proposed projects are amassed. Mr. Dole estimates that $10 million to $15 million in total projects would be enough to spur that effort. In either case, the county would have to offer property owners financing at interest rates, with a margin to cover financing and administrative costs, comparable to home-equity or construction loans, according to Mr. Dole.

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