Bill would fuel energy savings, renewables
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By DANIEL BARLOW Vermont Press Bureau - Published: February 18, 2009
MONTPELIER – If it works in Berkeley, it may work in Vermont.
Senate lawmakers debated a bill Tuesday that would allow municipal governments to borrow money to help property owners pay for efficiency or renewable energy projects – with that money paid back over time through a new local tax.
Modeled after a new state law in California, this bill is aimed at making renewable energy and efficiency projects more affordable for property owners worried about the up-front costs of making major changes to their buildings.
If passed into law, Vermont towns and cities could take out bonds for projects, such as installing solar panels on top of buildings or simply weatherizing a home. Property owners who participate in the program would pay off the money through a special assessment on their tax bills.
James Moore, the clean energy advocate for the Vermont Public Interest Research Group, told lawmakers Tuesday that the city of Berkeley recently raised $1 million for its effort and the program has exceeded expectations.
"Demand was tremendous," Moore said. "We think it will be here too."
At least 60 Vermont cities and towns have energy committees set up that could facilitate this proposed program on the local level, according to Karen Horn, the director of public policy and advocacy for the Vermont League of Cities and Towns.
"This is an amazing tool," Horn said. "This will help us take energy efficiency to the next level."
The high upfront costs and the long delay for a financial payback are barriers for many property owners when it comes to renewable and efficiency projects, said George Twigg, the deputy policy director at Efficiency Vermont.
Efficiency projects in homes can cost upward of $10,000, making it less likely for a property owner to make those investments if they are considering moving or selling the property within the next several years.
If a property owner entered into an agreement with a participating town or city for one of these projects, the municipality would have a lien on the property for that amount until the debt is paid off, perhaps as long as 10-20 years, he explained.
And under this program, if the owner sold the property, the lien and the special tax assessment would remain on that property.
"This is removing a financial barrier that has stopped property owners from making these investments," Twigg said.
If signed into law, residents of each Vermont city and town would vote whether the municipality should participate in the program. The bill also allows for smaller towns to join together in a compact to get better bond deals for larger pools of projects.
Sen. Robert Hartwell, D-Bennington, a member of the Senate Natural Resources and Energy Committee and one of two main sponsors of the bill, stressed Tuesday that all property owners in participating towns and cities would not be paying the additional fee on their tax bills – only the ones who have projects funded by the municipality.
A committee vote on the bill is not yet scheduled.
Contact Daniel Barlow at Daniel.Barlow@timesargus.com
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