Southeast Local Governments Take the Lead on Efficiency

Residential and commercial energy use are two of the three largest sectors in most community greenhouse gas emission inventories (transportation is the third). Local government interest in working with residents and businesses to reduce those emissions has exploded over the past year. This interest has been driven by the opportunities presented by Energy Efficiency Conservation Block Grant and Retrofit Ramp-up funding, and with innovative models like those profiled in ICLEI's 2009 Webinar Series on Innovative Energy Financing.

Southeast local governments are boldly embracing these opportunities and are creating some innovative models of their own. At least 13 local governments in the Southeast are developing programs to offer some kind of financial incentive for energy efficiency improvements to homes and/or businesses. Some will make loans with repayment attached to property taxes, some have come up with other creative ways to offer financing, and some are offering rebates or matching grants to reduce the cost of improvements and make the investment more attractive for homeowners.

Below is a summary of programs ICLEI has collected. If your community has or is creating an incentive program and is not listed below, please let us know! State network calls are a great opportunity to learn the latest about what peers in your state are developing. you can also use ICLEI's Peer Networking tool to contact one of the members referenced below.  ICLEI also expects to offer additional regional webinars in 2010 addressing commercial and residential efficiency programs as follow-up to the November 2009 webinar on Energy Financing Districts; we welcome member suggestions for webinar topics.

Property-Assessed Financing Programs

• Leon County, FL, is piloting a property assessed financing program. The County's internal fund balance is being used for initial program funding. They will start with a pilot program of 100 energy audits, with audit participants having the option to take a loan of up to $6500 to make improvements. Eligible measures will include envelope tightening, caulking, ducts, insulation, and door and window replacement. County building inspectors will check the quality of work after completion.

• Seminole County, FL, is also developing a property assessed financing program. They have allocated EECBG formula funds for program development and will issue bonds to raise capital for the loans.

Other Financing Programs

• Charleston, SC, is developing a program with a portion of EECBG formula funds to offer loans for energy efficiency improvements which residents would repay on their city water bills.

• Columbia, SC, will offer financing with repayment on water bills. They are working with the state energy office to apply for DOE Retrofit Ramp-up funds for the program.
• Knoxville and Knox County, TN, have applied for $5 million under DOE's Retrofit Ramp-up program to support home and business efficiency improvements. A community non-profit lender that previously worked with the county's redevelopment programs has agreed to provide the financing.

Rebate or Grant Programs

• Charlotte, NC, will spend $600,000 of EECBG funds to make energy efficiency retrofits available to 100 homes as a complement to its existing housing rehabilitation assistance program. Eligible homeowners will have an income at or below 80% of the area median income. Priority will be given to homeowners in current revitalization areas. Charlotte has also allocated $1.2 million for energy efficiency retrofits of businesses in Business Corridor Revitalization areas.  This program will leverage between oine and five times the city's investment depending on the efficiency technology. The city is in discussion with banks, including Bank of America and Wells Fargo, about providing financing for these improvements.
  
  

• Nashville, TN, has created Go Green District 18, with a goal of reducing total energy use in that district by 5%. Nashville Energy Services (NES), in partnership with TVA, will provide homeowners with an In-Home Energy Evaluation for a fee of $150. The fee is reimbursed if recommended improvements totaling more than $150 are made. Participants are also reimbursed 50% of the installation cost up to $500. Businesses can get a free evaluation, and homeowners and businesses can track their energy savings online through a special NES program called Powerwise. Participation is being promoted by Kristine LaLonde, Metro Council member for the district and by Mayor Karl Dean.
  
  

• Orlando, FL, is implementing a program using formula block grant funds to retrofit 700 homes with up to $900 spent per home. Orange County, FL, is soliciting contractors to implement a similar program.
  
  

• Atlanta, GA, has designated $2 million, about one-third of the formula block grant funds it received, to matching grants to homeowners for an efficiency improvement program called SHINE (Sustainable Housing in a New Economy). Contractors certified through the Home Performance with ENERGY STAR program will evaluate homes to determine the most cost-effective improvements. The program will leverage utility rebates, federal tax credits, and homeowner funds. Payment will be made directly to contractors at the completion of work. On-bill financing may be available through the natural gas utility. Atlanta has also applied for Retrofit Ramp-up funds from DOE to expand the program, and will try to pursue state authorization for property assessed financing. Decatur, GA is seeking funding through the state energy office and DOE to offer the SHINE program to its residents as well.
  
  

• Sarasota County, FL, has allocated part of their formula block grant funds to rebates for residential efficiency improvements.
  
  

• Alachua County, FL, has set aside block grant funds for a community efficiency program and is holding a community meeting solicit input on program design.

In addition to developing their own programs, local governments in Florida and Georgia are playing a leadership role in introducing enabling legislation at the state level that would accelerate the deployment of property assessed clean energy financing programs.