Redlands considers districts that could provide 'green' loans

The Press Enterprise

March 4, 2009--City officials are considering a plan to establish assessment districts for residents and businesses as a way to help finance "green" projects such as solar panels and other energy-efficiency improvements.

Called AB 811 assessment districts, they offer low-interest loans that can be repaid as an item on the property owner's property tax bill, said Gary van Dorst, director of Redlands Quality of Life Department.

The Redlands City Council discussed setting up an AB 811 program at its Tuesday meeting.

Similar assessment districts have been set up in Berkeley, where it took property owners just nine minutes to grab about $1.5 million in available funds, van Dorst said.

Assembly Bill 811 allows cities and counties to designate areas where property owners can enter into contractual assessments to finance installation of solar and other renewable energy generation.

Homeowners can use the money to improve energy efficiency.

A little more than two years ago, Palm Desert authorized a citywide voluntary assessment district primarily to pay for solar installations. Residents or local businesses borrow the money from a bond or loan fund and repay it over time through a property tax assessment.

Palm Desert's program partners with Southern California Edison and the Southern California Gas Co. The city hopes to cut 215 million kilowatt-hours of power usage over five years.

If homeowners sell, the remaining loan balance is taken over by the new owner, city officials said.

Redlands is considering using several funding options, from issuing municipal bonds or partnering with a utility for financing to tapping the city's general fund.

Reach Michael Perrault at 951-368-9474 or mperrault@PE.com

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