Clayton: Setting the PACE for energy efficiency

CLAYTON -- The city may approve a Property Assessed Clean Energy program allowing homeowners to make energy-efficient home improvements that are financed as a property tax assessment instead of a regular loan.

Homeowners could now take advantage of a program first offered to commercial and multiresidential property owners. Funds for water- and energy-efficient projects such as windows and water pumps requires no credit or income verification because homeowners essentially tax themselves.

Jack Cooper, of Custom Exteriors Inc. explained the Home Energy Renovation Opportunity program to the Clayton council at their Jan. 6 meeting because city approval is required before the program can be authorized by the state in each municipality.

"Everybody benefits," Cooper said later. "It reduces water and energy use, improves home values, and creates jobs. Lower utility bills help cover the cost of the payment and you get a tax deduction."

Community Development director Charlie Mullen said the city staff is researching Cooper's proposal and will likely make a decision soon. HERO and CaliforniaFIRST have been approved in Martinez. Walnut Creek recently approved HERO and San Francisco voted for CaliforniaFIRST on Jan. 5.

"CaliforniaFIRST came to us last fall and has cleared the state validation process. We think HERO will be available in Martinez by summer of 2015," said Michael Chandler, senior management analyst in Martinez.

"We liked the idea that there is a friendly competition between the companies and we can give residents more options. There is a CaliforniaFIRST page on our website (services, sustainability, PACE) and we will put one up for HERO when it is ready."

There is no cost to the cities involved, and Cooper said energy improvements increase home values because trained, certified contractors install energy-saving products.

HERO also helps resolve issues between homeowners and contractors, who are not paid until the customer signs a notice of completion, according HERO's website.

Heating and cooling systems (including solar), lighting upgrades, doors, insulation siding and other improvements can be financed over periods of time from five to 20 years depending on durability and energy/water savings. In other words, the improvement has to outlast the financing.

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Clayton: Setting the PACE for energy efficiency