Galt plans to help residents with energy-efficient projects

The city of Galt is in the process of applying to become a pilot city for a statewide clean energy program.

The California First program will allow residents to finance expensive green energy and solar projects, and then repay the financing over 20 years through their property tax bills.

Councilman Andrew Meredith said the statewide program will be an advantage to a city the size of Galt, because it would be a large burden to create a way for the city to finance these projects.

Earlier this year and last year, Meredith campaigned in other cities in Sacramento County, to see if they could join together to create some type of financing. But when the state program came along, he wanted to make sure Galt was a pilot city.

"It's for homeowners who were thinking about making energy efficiency upgrades or installing solar panels to have a financing mechanism that is easy to acquire and readily available," Meredith said.

One of the main advantages is the financing will stay with the home regardless of who has the title, Meredith said. Residents will be able to finance the improvements without having to worry about staying in the home or business long enough to make back the investment.

"They don't have to worry about paying a huge up-front cost, moving in five years and then not realizing the full benefits of the upgrades," Meredith said.

The initial interest rates will be between 6 to 10 percent, but those could be reduced if the city finds extra funding. The interest is also tax-deductible.

The Galt City Council approved Tuesday considering whether to join the pilot program at a future meeting. City staff said they are looking to bring back the issue at the Dec. 15 meeting, unless the city does not receive all the information from the program in time.

At the meeting, Meredith also mentioned that there is an advantage to the city starting the program now, while property values are already depressed. He said residents can start making the payments, and there won't be much difference in their property tax bill when compared with past year's.

Meredith also said the program will help improve Galt's local economy.

"It will stimulate development, stimulate investment and stimulate employment opportunities," he said.

Here are some basics of the program:

Who can participate?

Owners of residential, multi-family, commercial, industrial and nonprofit properties can participate if they meet the requirements.

What projects will be covered?

Projects that improve air sealing and ventilation, insulation, water heating, and space heating and cooling, which includes high-efficiency air conditioners and furnaces.

The project also includes lighting, daylighting, windows, doors and skylights, reflective roofing, high-efficiency pool pumps and energy storage systems.

Property owners can also install solar, wind and fuel cell systems.

When will it start?

The pilot program will launch around May or June.

Who is participating in the pilot program?

Cities can participate if they are in one of 14 participating counties, which includes Sacramento but not San Joaquin County. In Sacramento County, Galt, Sacramento, Folsom, Citrus Heights and Rancho Cordova have all expressed interest in participating.

What are the costs for the city to participate?

There are no financial costs to the city other than staff time.

By participating in the pilot program, Galt will not have to pay the $12,500 start-up fee. The fee covers $5,000 for marketing and technical set up, and the rest is for legal and court validation processes. Cities that join the program in the future will have to pay the fee.

Staff time will be a quarter to a half of a full-time employee during the first six months. After that, it will be take up a quarter of an employee's time. The city's planning staff will handle the work, which will mostly be doing community outreach and participating in conference calls and meetings with California First to work out issues.

How will residents receive the credits?

Step 1: Property owners will visit a Web site to learn about the program, financing terms and to find approved contractors and improvements.

Step 2: Applicants will then apply online and pay the application fee. The California First employees will evaluate the proposed project and may require an energy audit for certain improvements.

Step 3: Once the project is approved, the property owner will receive a reservation for funding and have a lien placed on the property. The applicant will have between six and nine months to install the solar system or energy efficiency project and return to the Web site to request payment. Building permits must be obtained if necessary.

Step 4: After the property owner signs a form and provides documentation, the check covering the project will be issued to the property owner or contractor.

Contact reporter Maggie Creamer at maggiec@lodinews.com or read her blog at www.lodi-news.com/blogs/citybuzz.

Reader Feedback

Caring Galt Mom wrote on Nov 20, 2009 5:50 AM:

" Another solid idea young man. Glad to see your idea come to light as a real program. You're half as old as your counterparts and twice as productive. Great story Mrs. Creamer.....now let's get some people to sign up. "

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