Just in time for Earth Day, Santa Barbara County is rolling out a new program intended to make it easier and cheaper
for residents and business owners to retrofit their buildings for greener energy use.
The program, EmPowerSBC, is designed to kick-start construction by providing up-front financing for county-approved projects.
According to David Matson, director of the county’s Department of Housing and Community Development, energy efficient retrofitting hasn’t kept up at the rate desired by state and local governments. If implemented correctly, Matson said, not only would the EmPower program increase green retrofits, but it would also create 900 new jobs by 2020. The figure represents nearly half of the workforce lost by the local construction industry as a result of the recession.
“Ultimately it’s jobs, jobs, jobs,” Matson said. “There’s an opportunity to create new businesses, to create partnerships and teamwork across the community that can be quite powerful to achieve those goals.”
After more than a year in the planning stages, the Board of Supervisors agreed to move forward with the program at its April 13 meeting, including it in the 2010-11 budget considerations by a 3-2 vote. Supervisors Joe Centeno and Joni Gray voted against the program.
“Governments shouldn’t be in the business of lending money to people,” Gray told the Sun. “I agree it will create jobs, but the very same jobs could be created through private sector loans. You still get the tax breaks, you still get the incentive to do it, and you still have to qualify for the loan, so I don’t see it as any different.”
Implementation hinges on the board’s approval of a $5 million investment from the county’s general fund to a revolving fund to seed the program. If approved, Matson said, the county’s investment would be put into the municipal bond market with proceeds put back into the program.
“Our goal with this revolving fund is that it won’t sell out,” he explained. “It will continue on into perpetuity, and that’s why it’s so important to have the resources from the board during the budget hearings to get this program up and running.”
The vote is expected to occur in late June or early July. If it passes, homeowners will be able to receive low-interest loans of up to $75,000 for approved projects, while businesses will have access to as much as $250,000.
EmPower—an acronym for Elective Municipal Programs to Optimize Water, Energy, and Renewables—is one of the first 10 programs of its kind in the country. Other similar public-private partnerships have started in Sonoma County, and the city and county of San Francisco, with positive results.
Sonoma County’s program, Matson said, resulted in an influx of 10 new businesses and 900 jobs in four months. It also brought an economic boost of $40 million in new capital there. In Santa Barbara County, the county’s initial investment would create a multiplier effect, he said, resulting in an economic growth of $160 million by 2020.
EmPowerSBC received support from the Santa Maria Valley Contractors Association, environmental groups, and various chambers of commerce.
Robin Hayhurst, executive director of the Santa Maria Valley Contractors Association, representing 600 local independent contractors, said the program represents a true community investment in economic development.
“It’s another creative way to finance something that someone might not have thought of before,” Hayhurst said. “I don’t see a risk at all. The worst-case scenario is that the money gets paid back at a 7 percent interest over a period of time, which is a lot more than the county could make on $5 million sitting in an account somewhere. I really see it as a very positive program.”
Gary Gordon, owner of Santa Ynez Valley Solar, a local installer, called the program a “win-win situation” and said it would put solar power in the hands of people who otherwise couldn’t afford it.
“This program is just going to change everything,” Gordon said. “It’s going to be great for the local contractors, who are going to be able to hire more people, and it’s going to boost the economy.”
Gordon said EmPower would eliminate the two major hurdles currently keeping homeowners from purchasing solar panels: The $20,000 average start-up cost and the reluctance to invest long-term in a project that usually outlives the homeowners’ time of residence.
“I expect [business] to get tremendously busy,” he said. “I can’t wait.”
Though applications won’t be available until after final approval by the supervisors, more than 50 contractors and individuals have signed up on the EmPowerSBC website. Already, online visitors can pick from acceptable projects and find licensed contractors to do the work.
Acceptable retrofitting projects include attic and wall insulation, lighting controls, HVAC systems, door and window replacements, irrigation systems, low-flow showerheads, and duct repair.
Projects would be considered on a first-come, first-served basis and would have to carry a minimum price tag of $2,500. Any project costing more than $100,000 would have to be approved by the Board of Supervisors, Matson said.
Participants would be required to fill out an application for a desired project. Once approved, a contractor would be chosen to complete the work. The property owner would then submit a request for repayment and an assessment lien would be placed on the owner’s property tax.
Property owners would then be billed on their tax statements twice yearly and required to pay a percentage of the project’s cost, amortized from five to 20 years, depending on the expected life of the project.
Staff Writer Jeremy Thomas can be contacted at jthomas@santamariasun.com.
This article appears in Apr 22-29, 2010.