INTRODUCTION

I am in the process of trying to get the City of Benicia to implement a Solar Tax Incentive Program....Below is the text of a presentation I gave to the City Counsel today--which outlines the program. And following the text of the speach, are issues that were raised by Counsel Members. These issues will form the basis of my "to-do" list going forward....


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I’m here tonight to discuss renewable energy.

You know, there are no shortages of alternative energy….however, there is a shortage of ideas on how to transition from old technology to clean and renewable sources of energy.

I’m here tonight, to ask you to consider an idea—an incentive program that would make economic sense for any property owner to convert to solar, reduce our carbon footprint, create jobs, and do all of this without any cost to the City.

This isn’t a new idea—the City of Berkeley is implementing this program as we speak.


The Berkeley plan works like this:

Any property owner in the City is eligible for the program

The owner consults with an approve photovoltaic installer and agrees on a system

The City “fronts” the cost of installing a photovoltaic system (less any rebates and other incentives) by obtaining a low interest loan through qualified lenders.

The City recoups the cost of the loan via an assessment on the property owner’s property tax over the course of 20 years. The City may also attach an “administrative fee” to cover clerical costs.

The assessment is passed from property owner to property owner (if sold) until paid in full.

The City would be guaranteed repayment through the taxing authority of the government.


The program has the following economic benefits:

The biggest obstacle to obtaining solar—the upfront costs-- are no longer an issue

The homeowner will likely get the “loan” a lower rate (since the City is obtaining the loan) and the collection of the loan is done through the taxing authority of the government.

The homeowner’s property tax assessment (both principal and interest) are likely tax deductible thereby providing a substantial tax incentive to the property owner.

The program encourages investment in local renewable energy businesses—creating good, local jobs.

There is no risk/cost to the City.


The program has the following environmental benefits

Encourages the use of renewable energy via appealing to one's pocketbook.

Encourages the use of electric vehicles (they are available)—people can drive for free!

The program could be expanded to include wind, water recycling, and natural gas vehicle appliances (like the Honda GX).

Benicia could be an example for other cities!

I hope the counsel will consider such a program. It is not often that Counsel has the opportunity to encourage investment in renewable energy, lower taxes, and create jobs. Please let me know if I can help.

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Questions raised by City Counsel Members:

1. Does being a "General Law City" preclude us from implementing such a plan (As opposed to Berkeley, which is a Charter City.
2. What are the numbers? What would a system cost and how much could one save under such a program?

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My "To-Do" List Going Forward:

1. Go to next City Counsel Meeting and inform them of this blog.
2. Get estimates for solar installation on my house.
3. Check with the City Attorney to see if she has any input on "general law" vs. "charter city" designation, and how that would affect our ability to introduce such a program.
4. Check with the Solano County Tax Assessor to see if he/she has any input on Benicia's ability to place an assessment on one's property tax.
5. Check with the City of Berkeley to see if they have any input on the implementation of such a program.
6. Clarify with Counsel that they would not need to "borrow" a bunch of money to fund the program--instead they would be the "conduit" to obtaining a loan from a qualified lender and assisting with the collection of the loan by placing an assessment on one's property tax.