Kenwood Press on SCEIP

The Kenwood Press

News: 04/01/2009

New energy program funds green projects

Public Forum April 22 in Glen Ellen

Jay Gamel

Obama’s new energy programs haven’t arrived, but Sonoma County has funded its own stimulus plan that will help homeowners and businesses save energy and conserve water through an innovative, $100 million program that allows project paybacks through property tax assessments.

“We think this is Sonoma County’s stimulus package,” County assessor Rod Dole said. Dole is a central player in the Sonoma County Energy Independence Program that was approved and rolled out on Wednesday, March 25, at the Sonoma County Water Agency. SCWA will provide administrative support for the program.

The plan is aimed at reducing the county’s carbon footprint, conserving diminishing water supplies, and putting people back to work.

Before opening day was over, Dole said over $250,000 in program money applications were completed by five applicants, the most expensive of which is for $137,000.

The plan will offer up to $100 million to pay for residential and commercial energy and water conservation projects. The first $45 million is being provided by the county, and, if successful, the county will be able to sell long-term bonds that will retire the initial county outlay and fund continuing projects up to $100 million.

Dole oversees and invests a $1.8 billion fund of county, school, transportation authorities (including SMART and the North Coast Rail Authority), and other special districts. Instead of buying 3.5 percent interest U.S. Treasury bonds as usual, Dole will use the initial $45 million to create county bonds that will fund green project loans at a 7 percent fixed rate. The county’s original investment will be paid back at a half-point over the Treasury rate – meaning a better return for the county on the investment.

“This program pays for itself,” Dole emphasized.

What can the plan do for you? It’s designed to pay for improvements to permanent property, items like better insulation, efficient windows, weather stripping, solar panels, and tankless hot water heaters. It will not fund moveable items like washers and dryers or refrigerators because the loan runs to the property, not the property owner. When the borrower leaves, the improvements have to stay for the next owner.

The state legislature last year approved the idea of counties and cities loaning money for green energy and water conservation programs paid back through property taxes. That means the loan becomes a lien on the property and will be sold with the property. It is not a type of lien that prevents a property from being sold.

Residential applicants don’t need approval from their mortgage holders, but commercial applicants have to give their bankers a chance to make a better deal. The object is to get green projects funded, not to steal bank customers, Dole said.

Banks may even be able to compete with the county program for green residential projects. Exchange Bank’s Lori DeCosta, in charge of consumer loans, said her bank is offering variable home equity lines of credit starting at 4.99 percent, which may be more attractive than the county’s fixed 7 percent loans. Under the county program payback stays with the property while private debt would have to be retired at sale.

Anyone interested in finding out more about the new program should begin by visiting www.sonomacountyenergy.org. The program is explained well and you can even make an online application. Those who prefer a personal approach should go the Sonoma County Water Agency at 404 Aviation Boulevard, near the county airport. There is a counter staffed just to handle applications and questions about the program.

Better yet, attend a public forum on April 22 at the Glen Ellen Firehouse, from 6:30 to 8 p.m. Glen Ellen architect and volunteer fireman Greg Psaledakis has organized a meeting with Supervisor Valerie Brown and other officials to both explain the new program and explore the possibility of several people working together on solar projects to achieve cost savings with bulk equipment purchases. Psaledakis, who works for the Santa Rosa firm of Kellogg+Associates, has worked with green projects in commercial retrofitting and wants to see more green projects going.

“This is for anybody who’s interested in reducing their overall energy costs,” Psaledakis said, noting that 40 people have already signed up to attend. His rule of thumb is that anybody paying more than $80 a month for energy should look into the program. Replacing weather-stripping, installing new windows, replacing heating and air conditioning units, and new ducting can all be encompassed in programs that are available.

If you want to go the forum, please RSVP via email to psaledakis@yahoo.com, or call him at work, 570-1160, ext. 106.