Gov. Schwarzenegger Signs “Berkeley Bill” Enabling California Cities to Offer Solar and Energy Efficiency Loans

From - Flex Your Power Energy News
August 6, 2008

With passage of AB 811, California cities and counties have the green light to offer low-interest loans for solar panels and energy-efficiency improvements (Photo: Flickr)

Gov. Schwarzenegger recently signed Assembly Bill 811, giving all California cities and counties the ability to offer low-interest loans for energy-efficiency projects and solar panels to homeowners and small businesses. Residents would pay back the loans through assessments on property tax bills; if they move, the outstanding loan balance is taken over by the new owner. Without the law, some California cities might not have been able to offer the loans for solar panels and efficiency improvements such as insulation, double-paned windows and efficient HVAC systems. While “charter cities” such as Berkeley and San Francisco have supreme authority over municipal affairs, California’s 370 “general law cities” are bound by state laws that might have been prohibitive.

AB 811 was inspired, in part, by a program proposed by Cisco DeVries, chief of staff for Berkeley Mayor Tom Bates, in October of last year (e-Newswire, 10/31/07). For cities interested in developing a loan program, there are a variety of funding options, including using their general fund, issuing municipal bonds or partnering with a utility to get financing, Alex Traverso, a spokesperson for Assemblyman Lloyd Levine, author of AB 811, told Greentech Media. California cities are already racing to be the first to issue the low-interest loans. Berkeley’s effort, called “Berkeley FIRST,” is in the pilot stage. Palm Desert, meanwhile, which is working toward a goal of reducing citywide energy consumption by 30% by 2011 (Power Plug, 4/04/08), has already started a list of interested residents. The city plans to provide loans for as little as $5,000, with no upper limit, for energy-efficiency measures and installation of solar panels.

• Read background: Greentech Media, San Francisco Chronicle and City of Palm Desert
• Related: “Ambitious Palm Desert Energy Efficiency Project Enters Second Year, Partners Ramp Up Offerings, Incentives” (Power Plug, 4/04/08)
• Related: “Bill Enabling Berkeley’s Innovative Solar and Energy Efficiency Financing Plan Passes Assembly Committee” (Power Plug, 1/25/08)
• Related: “Berkeley Unveils Financing Plan That Pays Upfront Cost of Solar and Efficiency Improvements” (e-Newswire, 10/31/07)
• Find rebates, incentives and services for your home, searchable by ZIP code, with Flex Your Power’s Rebate Locator