An energy bill that saves money?
Legislation tied to valley made law
K Kaufmann and Jake Henshaw
The Desert Sun
Gov. Arnold Schwarzenegger on Monday signed a Palm Desert-sponsored bill that will make it easier for residents in the Coachella Valley and across California to go green while cutting back on electric bills.
Assembly Bill 811 will allow California cities to provide residents with low-cost loans for energy-efficient home improvements such as solar panels and high-efficiency air conditioners. Residents would pay back loans through their property taxes.
The bill passed both houses of the state Legislature as an “urgency measure,” which means it goes into effect immediately.
“The governor is committed to reducing greenhouse gas emissions in California, and this legislation underscores that goal by promoting the use of renewable energy,” said Rachel Cameron, a spokeswoman for Schwarzenegger.
Councilman Jim Ferguson, who lobbied hard to get the bill through the Legislature in six months, was jubilant.
“I am thrilled for the residents of Palm Desert,” he said. “I think it's going to save a lot of people a lot of money at the most expensive time of the year.”
Vincent Battaglia, president of Renova Energy Corp., a solar consulting firm in Palm Desert, called the bill historic.
“Our big Achilles heel was the fiscal restraint,” Battaglia said, referring to the high up-front costs of buying solar panels. “That's why solar was not moving forward. This removes the fiscal restraint.”
Palm Desert officials have been laying the groundwork for the city's program in anticipation of the governor's signature.
The first step will be a City Council resolution directing staff to set up the program that the council is expected to pass during a brief meeting at 4 p.m. Thursday in the Civic Center Council Chamber, 73-510 Fred Waring Drive.
A public hearing on the program, with final approval, would then be set for the council's next meeting on Aug. 28, City Manager Carlos Ortega said.
“We can start taking applications even before the council adopts the whole thing,” he said. “It would be good to get a head-start.”
The city initially will bankroll the program with its own funds, but will issue bonds for the longer term, Ortega said.
Desert origins
AB 811 grew out of Palm Desert's ambitious five-year plan to cut city energy use by 30 percent — and the problems officials encountered getting residents to upgrade old air-conditioners, pool pumps and energy-leaking windows.
The high up-front costs of such improvements, often thousands of dollars, proved a major obstacle for many residents even with special rebates from Southern California Edison, a partner in the five-year plan.
Palm Desert proposed the law to update sections in California's Streets and Highways Code that allow cities to set up assessment districts to pay for public improvements such as sewers and roads. AB 811 adds energy-efficient home improvements to the code, but makes the loan and payback plan voluntary.
Assemblyman Lloyd E. Levine, who carried the bill through the Assembly and Senate with broad bipartisan support, said it would “maximize the availability of solar power in California.”
Mayor Steve Pougnet said he is anxious for Palm Springs to set up a loan program and has directed his staff to come up with a plan.
“This is something that obviously is important to the entire valley,” Pougnet said. “We can coordinate to make sure as many people as possible utilize this.”
Jake Henshaw reported from The Desert Sun's Sacramento bureau.
K Kaufmann can be reached at k.kaufmann@thedesertsun.com or 200-6828.
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