Efficiency First

Proponents of energy retrofit programs are hopeful about the possibility of passing federal legislation that would protect bond programs for renewable and energy efficiency projects for homeowners. The Property Assessed Clean Energy (PACE) Act has provided alternative financing opportunities for those looking to conduct energy efficiency retrofits. It has funded retrofits for commercial properties but proponents of the Act and PACENow Coalition (which includes Efficiency First) continue to fight for legislation that would protect homeowners and allow them to implement energy retrofits using similar financing.

This is part of a larger legislative struggle in which some local governments have faced difficulties in receiving federal funding; some states, including California and New York have issued lawsuits against the Federal Housing Finance Agency (FHFA), which has obstructed efforts of property owners to receive PACE funding.  FHFA has made legal motions attempting to combine all of these suits and have them moved into a jurisdiction of their choosing; that attempted effort has failed allowing local courts to make decisions.

If the legislation, which will be discussed in Congress during the next several weeks, is passed it would enable homeowners to pay for retrofits by issuing and protecting PACE bonds, which are paid back through their property taxes. The legislation has received bi-partisan support in the U.S. House of Representatives.

With federal protection, mortgage companies could not discriminate in this way and the funding of clean home retrofits would expand significantly, supplementing the commercial PACE programs already in effect. If the protective legislation is successful, PACE programs would be a step forward for Home Performance Contractors.

For more information, visit:

http://www.environmental-finance.com/news/view/1749

and

http://pacenow.org/