By Dave Lucas
http://stream.publicbroadcasting.net/production/mp3/wamc/local-wamc-875437.mp3
Albany, NY – The New York State legislature recently passed a bill that authorizes municipalities to establish sustainable energy programs that will finance the installation of renewable energy systems and energy efficiency improvements across the state. These programs will make use of a new form of energy finance, known as "Property Assessed Clean Energy" or "PACE."
The legislation will empower communities to launch PACE loan programs, allowing them to leverage federal funds and provide loans to commercial and residential property owners. PACE programs are a recent innovation in finance and have emerged nationwide over the past year during which time 15 states have passed enabling legislation.
Homeowners typically shun expensive retrofits, either because they don't know how long they will live in the property (so they might not get their money back) or because they don't have the cash and don't want to, or can't, borrow money to do it, says Catherine Hill, attorney with Whiteman Osterman & Hanna, a firm that represents companies with a stake in solar and wind power. PACE bonds solve those problems.
With PACE, homeowners don't have to come up with cash or go to their bank. They simply apply to a loan fund, which offers lower interest rates and can structure longer repayment periods than banks. The state and federal government are encouraging homeowners to retrofit their properties to improve energy efficiency and install renewable energy systems. They say it's good for the planet, and ironically, in the long run, it is actually cheaper for the homeowner.
Long Island Assemblyman Bob Sweeney says state leaders have high hopes for the PACE program. Steve Israel is the sponsor of a bill in congress that would expand the federal loan guarantees for PACE Bonds. Currently $454 million in loan guarantees is available.