Bill to promote energy efficiency makes sense
Staff - the Desert Sun
A Palm Desert-sponsored bill that won the governor's signature Monday will create a win-win situation for property owners and cities across the state looking to become more “green.”
Assembly Bill 811 aims to give residents affordable financing options to improve the energy efficiency of their homes. California cities hoping to join the effort now have a tool to encourage community buy-in by offering low-interest loans to property owners for energy-efficient air conditioners, solar panels, windows and other upgrades.
Cities already have assessment districts to pay for public improvements such as sewers and roads. The law would add energy-efficient home improvement to the code.
Here's how it would work:
Property owners get low-interest loans from their city.
Repayment is done via property tax bill.
If the property is sold, the seller can pay off the loan or it can be assumed by the buyer.
The City Council could make a loan from the general fund to get the program going. Palm Desert estimates that some property owners could save 60 percent on their air conditioning bill alone. “I think it's exciting,” City Manager Carlos Ortega said.
It's a lot to ask residents to spend $10,000 to install the highest efficiency air conditioner they can find, Ortega said. With the new program, residents can repay the loan without feeling such a pinch in the pocketbook.
“They would have to raid their savings, or get a home equity loan,” he said. “This way, all we have to do is say, ‘OK, sign this agreement, here is a payment schedule, we'll collect it through your tax bill and your on your way.' This makes it easier for people to participate.”
We first editorialized on this bill in January, saying AB 811 deserved serious consideration and swift passage. Palm Desert officials hoped Gov. Arnold Schwarzenegger would sign it in the spring, so city officials could have their program up and running by the summer. That didn't happen, but both houses of the Legislature passed the bill as an “urgency measure,” meaning it can go into effect immediately.
Palm Desert has attracted national attention with its program that calls for a 30 percent reduction in energy emissions by 2011. It's an aggressive approach. Last year property owners reduced energy consumption by 10 percent. While the city's 2007 goal was 15 percent, more progress is being made in the second year of the program.
Palm Desert needs community buy-in to meet its goal and this bill may be the ticket to get property owners on board. It's a simple way to get residents to buy and install high-efficiency windows, air conditioners, pool pumps and solar panels.
Loaning money to residents with great incentives and terms is what Palm Desert — and communities statewide — need to kick-start their energy savings plans.
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