CS Sunday: Spill Bills & Sunrise Transmission | Clean Skies

Congress is working on two versions of spill bills in the wake of the Gulf oil spill. But those bills may end up costing the renewable energy industry. Neither has a Renewable Electricity Standard and without that wind, solar and geothermal experts say those industries can't flourish. Tyler Suiters delves into the bills, and speaks with a woman whose family invested in solar, and sees a bright future for the energy source.    Watch Video


 





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Solar Panels, Loans and a Turf War

The Obama administration is devoting $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills.

At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they might not accept loans for homes that take advantage of the special financing.

The mixed messages have alarmed state officials and prompted many local governments to freeze their programs, which have been hailed as an innovative way to help homeowners afford the retrofitting of a house with solar panels, which can cost $30,000 or more before incentives.

“The thing that is maddening is that this is having a real-life impact with companies laying off people and homeowners in limbo as all these projects are stalled,” said Clifford Rechtschaffen, a special assistant attorney general in California.

Under the financing programs, a local government borrows money through bonds or other means, and then uses it to make loans to homeowners to cover the upfront costs of solar installations or other energy improvements. Each owner repays the loan over 20 years through a special property tax assessment, which stays with the home even if it is sold.

The technique, known as Property Assessed Clean Energy, or PACE, was pioneered by Berkeley, Calif., in 2008, and 22 states have authorized such programs, which are intended to make it easier and cheaper for homeowners to invest in energy efficiency. So far, only a few thousand people have used them.

But the Energy Department wants to promote the programs — and give an economic boost to companies that install energy systems — through the $150 million in stimulus funds, which are intended to help communities cover setup and administrative costs.

Fannie Mae and Freddie Mac, the government entities that guarantee more than half of the residential mortgages in the United States, have different priorities. They are worried that taxpayers will end up as losers if a homeowner defaults on a mortgage on a home that uses such creative financing. Typically, property taxes must be paid first from any proceeds on a foreclosed home.

In letters sent to mortgage lenders on May 5, Fannie Mae and Freddie Mac stated that energy-efficiency liens could not take priority over a mortgage. “The purpose of this industry letter is to remind seller/servicers that an energy-related lien may not be senior to any mortgage delivered to Freddie Mac,” wrote Patricia J. McClung, a Freddie Mac executive.

However, the agencies did not offer guidance to mortgage lenders on how to handle properties that carry the energy liens. Backers of the programs fear that mortgage lenders, who depend on Fannie and Freddie to buy their home loans, will now start demanding that the entire lien be paid off before issuing a new loan.

That is what happened to Deke DeKay of Healdsburg, Calif., when he sold a house in nearby Geyserville in May. Mr. DeKay, who had purchased the foreclosed home as an investment, put in new insulation and heating and cooling systems, financed by $11,000 from Sonoma County’s program.

“We thought this would be an interesting way of upgrading the home’s energy efficiency without adding to the purchase price,” Mr. DeKay said. “Then right before the close of escrow, the bank discovered this stuff Fannie Mae and Freddie Mae put out and refused to approve the loan without the assessment being paid off first.”

Now Mr. DeKay is worried about his own home, which carries a $25,500 lien for a five-kilowatt solar array installed last year. “If we ever want to refinance the house, it will be impossible for us to do that,” he said.

State and local officials, including Gov. Arnold Schwarzenegger of California and Mayor Michael R. Bloomberg of New York, and some members of Congress have jumped into the fray, pressing the Federal Housing Finance Agency, which oversees Fannie and Freddie, for clarification of its position on the financing programs.

“The letters have had a devastating impact on PACE programs in California, placing at risk hundreds of millions of dollars of federal stimulus funding, hundreds of millions of dollars of state, local and private funding, and impacting California’s efforts to promote green jobs and greenhouse gas emissions reductions,” Ken Alex, a senior assistant attorney general in California, wrote in a June 22 letter to the housing agency.   Read Full story in    NYTIMES








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Poll: Americans Are Willing to Make Energy Sacrifices for a Better Future

Maybe it's something in the air--or in the Gulf--but Americans have finally decided that they are willing to make personal sacrifices for the betterment of both the environment and the economy. In a recent national survey commissioned by GE, 79% of those polled said they would adjust their energy consumption habits and behaviors in the short term to ensure bigger changes in the long-term--most likely because 72% of respondents believe that their energy use can directly harm the country's economic growth. As part of their commitment to change, 88% of those polled said they would be willing to use a smart device like a smart meter, thermostat, or smart appliance. That's encouraging news for companies like GE that are investing big bucks in smart grid-aware microwaves, oven ranges, hot water heaters, dryers, and more. These surveys are tied into larger concerns about the economy, as reported in a poll this week from the New York Times and CBS. According to the poll, 48% of Americans disapprove of the way the President is handling the economy, and only 34% believe that Obama has a clear plan for creating jobs. And while GE's survey indicates that Americans are willing to take charge on energy issues, the CBS poll shows that they also want government leadership. Fifty-nine percent of those polled think that Obama doesn't have a plan to deal with the Gulf oil disaster, and the majority of respondents want more environmental regulation for offshore drilling. Changing attitudes about energy use might not be directly related to the Gulf oil disaster, but the heartbreaking images of oil-soaked animals certainly have an effect. And as long as environmental issues impact our checkbooks, Americans will continue to care. 
Via Fast Company





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Obama to address nation on Gulf spill, demand BP damage fund

 President Obama plans to address the nation this week about the Gulf of Mexico oil spill, the worst in U.S. history. White House adviser David Axelrod told NBC's Meet the Press Sunday that Obama will discuss the disaster after he returns from a visit to the region Monday and Tuesday, reports the Associated Press. "The president will announce several steps" for handling the spill's fallout, Alexrod said. Scientists estimate the Gulf spill has spewed anywhere from 40 million gallons of oil to more than 100 million gallons since the Deepwater Horizon rig, run by energy giant BP, exploded April 20.
Axelrod said Obama, who meets Wednesday at the White House with BP executives, will demand the company fund an escrow account that a third-party panel will administer to distribute damage claims from individuals and businesses hurt by the Gulf spill, reports POLITICO.

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