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Overview of California Assembly Bill 811 - Energy Independance Program
INTRODUCTION
On July 21, 2008, the California Governor signed into law Assembly Bill 811, allowing cities to establish voluntary contractual assessment programs that finance a wide variety of renewable energy projects and energy improvements. AB 811 provides cities the authority to finance the installation of "Energy Improvements"
to make more affordable and to promote their installation, The Program will provide loans to property owners within the City to finance the installation of Energy Improvements. Property owners will repay the Loans
through an assessment levied against their property which is payable in semi-annual installments on property tax bills.
GOALS
AB 811 "Energy Independance Program" (EIP) will help owners of improved real property make investments in the long-term health of the local, state, and national economy and global environment by providing a long-term financing mechanism for Energy Improvements.
EIP provides multiple benefits. It boosts the local economy by providing jobs in the energy field, and boosts the California making it possible for the state to fulfill energy conservation and climate protection commitments. It will reduce the community’s carbon footprint and may facilitate economic development by assisting with the mitigation of the impacts of future growth in the City.
ELIGIBLE COSTS
EIP loans are available subject to the provisions and restrictions outlined in AB 811 and include the total cost of acquisition and installation of eligible Energy Improvements. Installation costs may include, but are not limited to, energy audit consultations, labor, design, drafting, engineering, permit fees, and applicable inspection charges. Eligible costs may also include the cost of a title search/insurance. Acquisition
costs may include, but are not limited to, the unit price of eligible equipment and any taxes and shipping costs associated with the acquisition.
HIGHLIGHTS
The installation of Energy Improvements can be completed by a qualified contractor of the property owner’s choice, provided such contractor holds the appropriate licenses from, and is in good standing with, the Contractors State License Board.
Energy surveys are highly recommended, but not required. For property owners, participation in EIP means investing in the future by making improvements to their property that will lead to reduced energy usage and reductions in greenhouse gas emissions.
ENERGY EFFICIENCY IMPROVEMENTS
Energy efficiency measures that are Energy Star rated must meet the minimum efficiency
levels required by the U.S. Environmental Protection Agency’s Energy Star Program and
must follow Energy Star guidelines. See www.energystar.gov for more details.
For residential properties, the following Energy Star measures – among others – are
eligible under the Program:
• Attic and wall insulation
• Light fixtures (no bulb-only retrofits)
• Reflective Roofs and Coatings
• Reflective Insulation or Radiant Barriers
• Windows, doors, skylights
• Geothermal exchange heat pumps
• HVAC Systems
• Evaporative coolers
• Natural gas storage water heaters
• Tankless water heaters
• Cool Roof Systems- see http://www.energy.ca.gov/title24/2008standards/index.html.
• Attic fans
• Window filming
• Weather stripping
• Home Sealing
• Solar Systems
• Irrigation sensors
For commercial and industrial properties, the following Energy Improvements are
eligible, in addition to energy efficiency measures listed for residential properties:
• High efficiency electric hand dryers
• Building and energy management systems
• Lighting control systems, including occupancy sensors and other energy-saving measures
• HVAC duct zoning control systems
• Irrigation sensors
Simply Put:
- Low interest rate loan (so far at 7% amortized over 20 years) from the City attached to your property that resides within that city’s limits and to be paid every six months through / along with your County property tax payment;
- Earmarked ONLY for and covers MOST energy efficiencies and renewable energies available to the public;
- Requires NO credit check and can pass to new owners of property without future credit checks through title transfer at escrow.
AB 811 - What's in it for you?
- You, as the owner of residential or commercial real property, immediately enjoy a greatly reduced electric bill with no out-of-pocket expense to you;
- If you sell your home or business, the new buyer can assume the payments, as you benefit from the increased equity at sale;
- Loans have a minimum of $5,000 and no maximum limits;
- Loans are not subject to credit ratings or credit checks;
- The interest rate is fixed at or near 7% and paid bi-annually through your property tax;
- Loans can be used on a variety of energy efficiency improvements and the materials and labor required to install them properly.
AB 811 - More Info
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