Sonoma County Sonoma County AB 811AB 811

Rod Dole – ACTTC

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

AB 811 – BenefitsAB 811 – Benefits

• Enabling Residential/Commercial Property Owners to make responsible and affordable energy and resource conservation improvements to existing structures

• Provide unique financing and repayment vehicle to the Property Owner to fund Improvements

• Provide job opportunities in the energy and resource conservation improvement fields

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

AB 811 – TAB 811 – TECHNOLOGYECHNOLOGY

• Energy Efficiency & Renewables– Photovoltaic (PV)– Fuel Cells– High-efficiency HVAC– High-efficiency windows & Insulation– Geothermal exchanges

• Water Conservation– Tankless water heaters– Low-flow devices– Rain cisterns– Smart irrigation systems

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

AB 811 – BAB 811 – BACKGROUNDACKGROUND

• Governor signed AB 811 (Levine) as an urgency measure

• Brought the concept to Sonoma County Board of Supervisors on 9/16/08

• Presented Feasibility Report to Board of Supervisors on 2/3/09

• Other Jurisdictions: Sonoma County is leading the way for Counties in California– Santa Clara, San Diego counties have stated an interest in exploring the

program– Berkeley has a similar program, but not AB 811– ABAG is in early stages of exploring a regional effort

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

AB 811 – BAB 811 – BACKGROUNDACKGROUND

• Program enters into agreement with property owner to fund energy and water improvements to existing residential and commercial property

• Property owner agrees to a contractual assessment on property tax bill for up to 20 years

• Criteria for loan approval– No “Clouds” on Property Title– Current on Property Taxes– Current on Mortgage(s)

• Property secures the loan and stays with property

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

AB 811 – FAB 811 – FINANCESINANCES

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

Loans to participants; Interest

will cover administration costs plus Treasury note.

SCEIP Program Treasury Note Property Tax System

Bonds;when loan volume reaches threshold.

AB 811 – FAB 811 – FINANCESINANCES

• Treasury invests in a series of notes

• Proceeds of the notes are used to finance loans to participants

• Participant payments come in via property tax system, paying the loan principal plus an interest rate to cover program operational expenses – analogous to a bank loan

• Bonds or other long term investment repays the note in full

• With long term financing, Treasury can invest in a new series of notes

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

AB 811 – NAB 811 – NEXT EXT SSTEPSTEPS

• Proposed Timeline:

– February 3, 2009: Today’s workshop

– March 3, 2009: Resolution of Intention

– March 24, 2009: Hearing to establish the Program

– Implementation at a date determined in Hearing

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM

Questions & CommentsQuestions & Comments

SONOMA COUNTY – ENERGY INDEPENDENCE PROGRAM