Energy plan linked to tax bills

<p>In three weeks, Sonoma County officials say they'll launch an innovative -- possibly first in the nation -- energy conservation program that loans money to homeowners so they can install devices such as solar panels, tankless water heaters and double-pane windows.</p><p>The loan payments would become part of the homeowner's semiannual property tax bill, much as school and fire district levies appear as separate charges. Repayment would be spread over five years.</p><p>"I know we would be the first county in California to go forward with this program," said Rod Dole, the county's chief financial officer. "Now, San Diego, Santa Clara, Santa Barbara and Marin are interested and watching to see how we handle this."</p><p>Supervisors approved the outline of the energy conservation loan program on Tuesday and scheduled a public hearing for March 24. If approved, county officials anticipate having a Web site up and running the next day so that owners of homes and commercial buildings can learn how to apply.</p><p>At the public hearing, supervisors are likely to resolve several key details on how the program will operate.</p><p>Dole said Wednesday he will recommend that the loans carry a minimum expenditure of $2,500. That would likely exclude less expensive energy conservation measures such as weather stripping, door replacement and insulation.</p><p>A consultant's report for the county concluded that solar photovoltaic units are likely to be the most popular devices sought by property owners. Funding requests for tankless water heaters will be favored by homeowners whose regular tanks wear out, and double-pane windows are likely to be sought by property owners whose older homes still have single-pane windows, according to the study.</p><p>Dole also said he will recommend that supervisors encourage, but not require as a loan condition, energy audits that advise property owners on which conservation measures will provide the most benefit.</p><p>Requiring energy audits, with an average cost of about $600, provoked lengthy debate Tuesday among supervisors and solar power advocates.</p><p>"We have the opportunity to be a model," said Marty Roberts, co-director of Solar Sonoma County. "The program needs an energy analysis that is essential to advise homeowners the best way to spend their money."</p><p>Ann Hancock, who chairs the county's Climate Protection Campaign, called for energy audits as a way to balance expected demand for loans from homeowners and commercial property owners.</p><p>"If all the money is sopped up by big solar projects, it will give a black eye to this program and to Sonoma County," Hancock said. "That is why it is so important to an individual that the cost of the energy audit is reimbursable."</p><p>However, Supervisor Efren Carrillo said he worried that adding $500 to $700 to the loan would put the price of projects out of reach of low- and middle-income homeowners.</p><p>Supervisors approved startup funding for the program with $45 million from the county treasury and $70 million from the Sonoma County Water Agency. Dole said the county would eventually sell bonds to investors such as pension funds to increase the pool of money available for loans.</p><p>Even more help, as much as $6 million, may come from legislation authored by Rep. Mike Thompson, D-St. Helena. It would give local governments access to $2.4 billion in new energy conservation bonds that finance reduction of greenhouse gas emissions and grant credits for purchase of solar systems by homeowners and businesses.</p><p>"The rest of the country is just starting to catch up," Thompson said. "Under provisions I authored, the country will now able to set up programs like Sonoma's to help homeowners and small businesses to install solar panels."</p><p>Also, Thompson recently introduced legislation that allows local governments to finance solar programs through tax exempt bonds.</p><p>"If we could get access to the tax-exempt bond market, we could get long-term and favorable rates for loans to property owners," said Jim Leddy, the county's governmental affairs manager.</p>