Do you think that Dutchess County should follow the innovative example of the City of Berkeley and allow homeowners here in our area the opportunity to be part of a voluntary sustainable energy financing district to install solar panels on their roofs-- the cost to be repaid over twenty years through an annual special tax on county property tax bills?

If you do, sign on to this petition, pass it along to all you know, and send a letter to all in our County Legislature at countylegislators@co.dutchess.ny.us (see Sept. 18th New York Times article on this below; also much more from City of Berkeley website).

Joel Tyner
Dutchess County Legislature Environmental Committee Chair
County Legislator (Clinton/Rhinebeck)
324 Browns Pond Road
Staatsburg, NY 12580
joeltyner@earthlink.net
(845) 876-2488

[see: www.NYTimes.com/2008/09/18/us/18solar.html?partner=rssnyt&emc=rss;
www.CityofBerkeley.info/ContentDisplay.aspx?id=26580;
www.CityofBerkeley.info/ContentDisplay.aspx?id=27076]

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[text here below of resolution submitted to our County Legislature on this]

WHEREAS, many Dutchess County homeowners who want solar panels on their roofs still can't afford the up-front costs involved; putting more solar panels on houses locally will create clean, green jobs to help take our local economy out of the recession, and can help lower electric bills for county homeowners and lower area carbon emissions and heat content, clean up local air quality, saving money on Medicaid costs for Dutchess County taxpayers, as more than one out of every ten county residents has asthma, bronchitis, or emphysema, according to the American Lung Association of New York State, and

WHEREAS, Berkeley FIRST (Financing Initiative for Renewable and Solar Technology) is a solar financing program offered by the City of Berkeley in California and a great example for Dutchess County; Berkeley FIRST provides property owners an opportunity to borrow money from the City's Sustainable Energy Financing District to install solar photovoltaic electric systems on their properties and allow the cost to be repaid over twenty years through an annual special tax on their property tax bill, the tax only to be paid by Berkeley property owners who voluntarily participate in this program, and

WHEREAS, there is relatively little up-front cost to the property owner with this program, the financing costs are comparable to a traditional equity line or mortgage, and since the solar system stays with the property, so does the tax obligation; if the property is transferred or sold, the new owners will pay the remaining tax obligation, and

WHEREAS, the program is intended to entice people who might be scared away by the high initial cost of retrofitting homes to incorporate solar power or become more energy-efficient; participating homeowners would pay roughly $180 more per month on their property tax bills, though much of that cost would be recouped in savings on electric bills, and

WHEREAS, the FIRST program will initially fund forty installations distributed throughout Berkeley, a city with one-third the population of Dutchess County; it will provide financing up to $37,500 per installation for either residential or commercial properties; during this pilot phase the City will evaluate the program and determine whether another round of funding can be made available, and

WHEREAS, the debt involved here is quite secure, as it is backed by the property tax revenues in a city that collects 98 percent of the money it is owed each year; venture capitalists continue to pour billions of dollars into the development of alternative-energy technologies, and

WHEREAS, the annual special tax amount for each property owner is calculated based upon the cost of the energy project installed in that property owner's residential or commercial property, the interest rate paid by the City on Special Tax Bonds or other monies used to fund the cost of that property owner's energy project, and the administrative charges levied by the City and County, and

WHEREAS, the interest rate is set at 3.25\% over the ten-year U.S. Treasury Note; the interest rate is fixed for the twenty-year duration of the repayment once a participant requests funding; in order for a property to be eligible to join this new property tax district it must not have any notices of default on mortgage, property taxes or any other type of financial obligation; no tax liens as a result of a failure to pay taxes within past three years and no current mechanic liens in excess of $1,000, and therefore be it

RESOLVED, that the Dutchess County Legislature requests that the Dutchess County Economic Development Corporation work with the Dutchess County Finance Department and Dutchess County Real Property Tax Agency to evaluate the feasibility of a program similar to Berkeley FIRST for Dutchess County and report back to the County Legislature on this in February 2008, and be it further

RESOLVED, that a copy of this resolution be sent to the Dutchess County Executive, Dutchess County Economic Development Corporation, Dutchess County Finance Department, and Dutchess County Real Property Tax Agency.

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"Berkeley Approves City-Backed Loans for Solar Panels"
by Felicity Barringer [New York Times 9/18/08]
http://www.nytimes.com/2008/09/18/us/18solar.html?partner=rssnyt&emc=rss

SAN FRANCISCO The Berkeley City Council moved late Tuesday to eliminate one of the biggest obstacles to making homes more energy-efficient: the upfront cost.

In a move being watched by other cities around the country, the Council unanimously approved a program to give city-backed loans to property owners who install rooftop solar-power systems. The loans, which are likely to total up to $22,000 apiece, would be paid off over 20 years as part of the owners property-tax bills.

While the more conventional approach of government rebates and tax breaks is being tried by the State of California and many other jurisdictions, this is the first time that a special property tax district has been created expressly to help retrofit homes and businesses to reduce electrical use. In Berkeley, these districts have previously been used to pay for neighborhood improvements, like burying electrical wiring.

Property owners can opt to join the new district, which was established by the council vote. The final piece of the puzzle, however, is still missing: a deal with a lender whose capital the city would use to finance the program.

At first, Berkeley seeks to raise $1.5 million for a pilot program for about 50 homes. If its program is successful, the kitty could eventually contain tens of millions of dollars, and hundreds of property owners could be eligible.

If the early phase of the program lives up to the high expectations of its backers, the city government is likely to expand the field of projects it will finance, supporting energy-efficiency initiatives like putting in double-glazed windows or adding insulation.

The citys mayor, Tom Bates, said in an interview shortly before the vote, I think this is probably the most important contribution Berkeley can make toward taking on global warming and reducing greenhouse gases.

He added, I think the idea is going to go like wildfire through other city governments. He said nearly two dozen cities, from San Francisco to Annapolis, Md., and Seattle to Cambridge, Mass., had called, indicating they wanted to follow suit.

The program, said Daniel M. Kammen, a professor of energy at the University of California, Berkeley, and director of its Institute of the Environment, is intended to entice people who might be scared away by the high initial cost of retrofitting homes to incorporate solar power or become more energy-efficient.

Participating homeowners would pay roughly $180 more per month on their property tax bills, though the hope is that much of that cost would be recouped in savings on electric bills.

We have about 100 names of people who have expressed interest in the program, said G. Craig Hill, a representative of the firm Northcross, Hill & Ach, which is advising the City Council on the financial details. Mr. Hill said he was negotiating with two private groups willing to try to resell the new city-backed debt obligations in a skittish marketplace.

Christine Daniel, a deputy city manager working with Mr. Hill, said, I would argue that this is very, very secure debt, since it is backed by the property tax revenues in a city that collects 98 percent of the money it is owed each year. She added, Weve certainly gotten a lot of calls from cities that are interested, but most cities are saying, Lets wait and see how Berkeley does.

Professor Kammen said he was not worried, pointing out that venture capitalists have been pouring billions of dollars into the development of alternative-energy technologies.
Theres so much more money there than ideas, he said.

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From www.cityofberkeley.info/ContentDisplay.aspx?id=26580...

Berkeley FIRST (Financing Initiative for Renewable and Solar Technology)

Program Description

Berkeley FIRST is a solar financing program offered by the City of Berkeley. Itprovides property owners an opportunity to borrow money from the Citys Sustainable Energy Financing District to install solar photovoltaic electric systems and allow the cost to be repaid over 20 years through an annual special tax on their property tax bill. The tax will only be paid by Berkeley property owners who voluntarily participate in the Berkeley FIRST program.

Berkeley FIRSTis intended to solve many of the financial hurdles facing property owners who want to install solar systems. To calculate the cost benefit of the Berkeley FIRST program for your household energy needs please see the UC Berkeley RAELcalculatoron the UC Berkeley website. The advantages of the Berkeley FIRST program are:

There is relatively little up-front cost to the property owner.
The cost for the solar system is paid for through a special tax on the property, and is spread over 20 years.
The financing costsare comparable to atraditional equity line or mortgage.
Since the solar system stays with the property, so does the tax obligationif the property is transferred or sold, the new owners will pay the remaining tax obligation.

The FIRST program willinitially fund40installations distributed throughout Berkeley.It will provide financing up to $37,500 per installation for either residential or commercial properties. Property owners in all areas of the City are encouraged to apply. During this pilot phase the City will evaluate the program and determine whether another round of funding can be made available.

Application Process

Renewable Funding LLC is under contract with the City of Berkeley as the third party administrator for the Berkeley FIRST program.They oversee the application process and will be reviewing all application property documentation.The online applicationprocess begins on Wednesday November 5, 2008 at 9am. Click here toapplyto the Berkeley FIRST program on the Renewable Funding LLC website.

The application requires the following information:

Property owner(s) name, address and telephone numbers
Initial bid amount on solar installation (P.V.)
Contractor name that provided the initial bid
Property verifications and disclosures
Agreement to program terms and conditions
Credit card payment of $25.00 for funding reservations*

*The credit card payment will only be required if the property owner is notified by the Program Administrator that the application is eligible for funding. The applicant will then have 7 days to make the on-line payment.

Application Schedule

Wednesday November 5th 9am: On-Line Application Opens
Wednesday November 19th 9am: On-Line Application Closes
Thursday November 20th 5pm: Property Owners Notified of Reservation Status
Wednesday November 26th 5pm: Reservation Fee Submission Deadline
WednesdayDecember 3rd5pm: Application Approval Notification

Program Eligibility Requirements

1. All property owners on title must agree to terms of the program and sign the required FIRST documents.

2. Property must not have any notices of default on mortgage, property taxes or any other type of financial obligation; no tax liens as a result of a failure to pay taxes within past 3 years and no current mechanic liens in excess of $1,000.

3. Property must comply with the City of Berkeley Residential or Commercial Ordinances (RECO/CECO) prior to the disbursement of payment for the solar installation

4. Property owner is required to apply for and comply with theCalifornia Solar Initiative(CSI) rebate program in order to receive a rebate on the cost of the program

5. Property owner is required to consent to release of names and contact information to CSI and PG&E billing information for the period of 18 months prior and following installation.

If you have questions about the program, you may email us at solar@ci.berkeley.ca.us.

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From www.cityofberkeley.info/ContentDisplay.aspx?id=27076...

Berkeley FIRST Frequently Asked Questions

What does FIRST stand for?

Financing Initiative for Renewable and Solar Technology.

What is the relationship between the City of Berkeley and Renewable Funding?

Renewable Funding LLC is under contract with the City of Berkeley as the third party administrator for the Berkeley FIRST program.Renewable Funding oversees the application process and will be reviewing all application property documentation. To learn more about Renewable Funding, please visit:www.renewfund.com.

Does Berkeley FIRST fund Energy Efficiency and Solar Hotwater installation?

The pilot program will provide funding only for solar photovoltaic systems. Depending on future funding, it is hoped that Berkeley FIRST will ultimately be able to expand funding to solar thermal and other major energy efficiency projects. In many circumstances, the most cost effective way to reduce energy costs is to improve the efficiency of a building.

Are there limits to the number of people who can participate?

The FIRST program will initially fund 40 installations distributed throughout Berkeley. It will provide financing of up to $37,500 per installation for either residential or commercial properties Citywide. Property owners in all areas of the City are encouraged to apply. During this pilot phase the City will evaluate the program and determine whether another round of funding can be made available.
I don't live in Berkeley; can I still apply for funding from this program?

Only residential or commercial properties located in the City of Berkeley are eligible for funding; however Berkeley property owners do not have to live in Berkeley to apply.

Will I be taxed if do notwant to participate?

No, the special tax is not imposed on taxpayers who choose not to participate in the program. Property owners will pay a special tax only if they opt-in to the Special Tax District and have work done on their property as part of the program.

How much will I pay if I do choose to participate?

The annual special tax amount for each property owner is calculated based upon (a) the cost of the energy project installed in that property owners residential or commercial property, (b) the interest rate paid by the City on Special Tax Bonds or other monies used to fund the cost of that property owners energy project, (c) administrative charges levied by the City and County.

How will the interest rate on the Bonds be calculated?

The interest rate is set at 3.25\% over the 10-year U.S. Treasury Note. The interest rate is fixed for the 20-year duration of the repayment once a participant requests funding.City and County property tax administrations will also be included in the final rate.

What if the property owner does not pay the Special Tax?

The Berkeley FIRST Special Tax, like other property taxes, will be secured by a lien on the subject property, which ranks senior to the first mortgage.Failure to pay property taxes can lead to the foreclosure of a property in order to collect delinquent taxes.

If I participate in the Berkeley FIRST program, can I still get other tax deductions, credits and rebates?

Program participants are required to apply to the California Solar Initiative (CSI) rebate program, which will help off-set the total cost of your solar project.The FIRST program does not reduce the amount of the rebate available through the CSI program. Participants should consult a tax professional to determine whether income deductions or tax credits may be claimed on personal taxes.

How quickly will I receive payment from the City?

Once the installation is completed and the final inspection from the City of Berkeley Building and Safety Division is signed off, the property owner can request payment from the City's Solar Financing District.In order to receive payment, the property owner must submit all final documents required as part of the Solar Financing District Agreement including:

Copy of final invoice from installer, including as built system size per CSI requirements
California Solar Initiative rebate letter
Final inspection notice
Signed authorization for release of CSI and PG&E information
Signed program terms and disclosures
Signed unanimous consent and liability release

The City of Berkeley will verify RECO or CECO compliance prior to authorizing the disbursement of funds.

What happens if I sell my property?

The special tax obligation will remain as an obligation of the property when the property is sold. If the owner sells the property prior to the end of the 20-year tax period, the new owner takes over the special tax obligation as part of the annual tax obligation on the property. The energy systems are part of the property and ownership of the energy system will transfer to the new owner at the clsoe of the real estate sale.

Can I use any contractor for solar installation?

The owner can contract directly with any qualified private solar installer registered with the California Solar Initiative (www.gosolarcalifornia.ca.gov)

I am a solar installer or contractor and would like to participate.What is the process?

In order to participate in the program, installers must be registerd with the California Solar Initiative (www.gosolarcalifornia.ca.gov). Contracts are made solely between property owners and installers, not the Berkeley FIRST program. For more information on the role of the solar installer please see thepowerpoint presentations from the Solar Installer's Workshop.

Please click here to sign up for the city's mailing list (www.CityofBerkeley.info/Sustainable) and to learn about upcoming public workshops.For further questions, please feel free to email us atsolar@ci.berkeley.ca.us

Energy and Sustainable Development, 2120 Milvia St., Berkeley, CA 94704
Questions or comments? Email: NDeSnoo@cityofberkeley.info Phone: (510) 981-7439