From Grist online mag: Florida governor’s race: Sink vs. Scott

by Jonathan Hiskes, September 9th, 2010

Florida governor candidate Rick Scott is largely an enigma on energy and environmental issues. The hospital-chain executive, who eked out a surprise win over an establishment candidate in the Republican primary, has no record in public office to evaluate. His website's environment page consists of terse pledges to protect beaches and the Everglades. He hasn't been bringing up environmental issues on the campaign trail. When a reporter asked him about the scientific consensus on climate change, he said, "I have not been convinced," and was unsure what further evidence could convince him.


Scott would seem to be more certain on one issue: his support for offshore drilling. "It's a naïve, knee-jerk reaction to call for a ban on drilling," he says on his website in response to the Deepwater Horizon blowout that sent oil washing up on Florida Panhandle shores.

Yet Scott has backed off on this position too, saying in July, "We are not going to drill now. It's not safe. It doesn't make any sense ... [but] if we figure out some day that it's safe I think we ought to look at it.''

His opponent, Democratic state treasurer Alex Sink, has revealed more of her cards. She came out strongly opposed to offshore drilling when Republican lawmakers proposed opening state waters last year. She has released a detailed clean-energy plan centered on promoting efficiency, entrepreneurship, and partnerships between businesses and the state's universities.

"Right now, Florida's lack of a clear vision and a consistent energy policy is costing Floridians good jobs -- that ends when I am governor," she said in a news release.

So far, environmental issues haven't gotten much attention in Florida's jobs-focused gubernatorial race, despite the state's vulnerability to climate change and its largely untapped renewable-energy potential. Florida is particularly susceptible to sea-level rise, saltwater encroaching on its water supply, and hurricanes and tropical storms of increased intensity. And the Sunshine State would seem to be a natural hotspot for solar installations, yet it generates less solar electricity than New Jersey (even Massachusetts and Connecticut outperform it on a per-capita basis).

That's not for lack of effort from departing Gov. Charlie Crist, who became an unlikely climate leader, enacting a climate plan in 2007 and joining fellow Republican Arnold Schwarzenegger in organizing state-level action during the Bush years. But Florida's legislature prevented him from taking important steps, like implementing a renewable energy standard -- something 27 other states have used to attract cleantech businesses.

A renewable standard "is the holy grail of the [Florida] environmental community, something they've been working on for years," said Adam Rivera of Environment Florida. Sink supports one, while Scott hasn't made his position clear.

Florida's popular solar rebate program has a $40 million, 15,000-application backlog, and whether the next governor refuels it will be an early signal of his or her priorities, Rivera said.

The state also enacted a law last year that discouraged sprawl by making it easier for developers to build in dense urban areas. But a judge ruled it unconstitutional last month, and it could take leadership from the governor's office to pass a new version next year. [Update: A Florida commenter says the law wasn't clearly "anti-sprawl." While encouraged urban infill, it also made exurban growth easier; it's been called a sop to developers in response to the building-industry collapse.]

And, of course, Florida wields huge influence in national debates as a swing state and one poised to gain congressional seats in the upcoming redistricting process -- which the governor will oversee.

So it's worth knowing where the candidates stand on green issues, even if they aren't bringing them up.

Read the rest on Grist

Feds screw up local innovation - PACE on hold throughout the country

I've tried to keep this blog confined to city, county, and state solar news, but I can't keep quiet about the infuriating stupidity coming out of Washington DC these days.

The mortgage Goliath Fannie Mae and Freddie Mac have taken a very serious swipe at the David of solar financing - PACE.  The newly hatched plan by local governments to use their taxing authority to come up with clever ways to break through the "first cost" barrier for energy efficiency and small scale solar, wind, geo, etc. was dealt a huge blow back in March when Fannie/Freddie announced that they wouldn't buy any mortgage with a PACE lien on it.

This is an extraordinary over-reach into the taxing authority of local governments.  Basically, the mortgage giants are determining which government taxes they believe are worthy and which aren't.  It really isn't that simple, but it is potentially precedent setting.  Fannie/Freddie don't like this tax lien "cutting in line" in front of the mortgage repayment in case of default.  That would be fine if PACE were truly a traditional loan instrument, but it isn't.  It behaves like a taxing district like a storm-water, garbage collection or street lighting improvement district.  The improvement is passed along with the property instead of having to be paid off upon sale of the property.

Having Fannie/Freddie dis PACE like this had an immediate chilling effect on these programs everywhere.  Boulder backed out of their next bond issue and returned deposits to people, San Francisco just launched and then aborted their PACE program.

Other PACE programs in the works, including local governments here have been waiting for the promised "clarification" from the mortgage backer's regulatory parent - Federal Housing Finance Authority (FHFA) - but were shocked when the agency made a bigger mess of things with their letter.

Most people in the business see the FHFA letter as the final blow to an administrative fix and now believe the only way to fix this once and for all is to seek a legislative remedy - Congress.  That should be quick and easy right?

The Department of Energy - a backer and early proponent of the widespread implementation of PACE - now is telling block grant recipients that were using those funds for PACE start-up to rethink that strategy.

All is not lost though.  The PACE concept is readily accepted by both political parties, so it actually has a shot in Congress unless it gets stuck to a more controversial bill.  And FHFA doesn't touch the commercial market, so PACE could still be used to help improve office parks, industrial buildings and other non-residential properties.  This isn't the major focus of PACE, but could keep it alive long enough to show that it is a successful model for the rapid deployment of efficiency and small scale renewables.

Enough ranting for now - next time I hope to have information about local plans to deal with this mess.

Related articles:

New York Times, July 3rd -Loan Giants Opt to Block Energy Programs

Grist, July 6th -Fannie and Freddie to clean-energy program: Drop dead
Environmental Leader, July 7th - Fannie, Freddie Kill PACE Program

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Gov. Crist signs PACE bill

Good news for solar and other small scale renewable energy - Governor Crist signed the Property Assessed Clean Energy bill yesterday.  The issue wasn't really in doubt with significant bipartisan support from the Florida Legislature (as rare as a spotted owl nowadays) and with no notable opposition.  Repubs like it because its a "voluntary tax" - the only type they tend to support. And Dems like it because of the blue-collar job creation implications.

Everyone else likes it because it makes sense.

There's drips of news out there on this, but I found a News Release from the Florida CFO (running for Governor herself) on the matter:

CFO Sink Commends Governor Crist for Signing Energy Efficiency Legislation

Gov. Charlie Crist weighs bill to help cities go green

Gov. Crist is reviewing a bill passed by the Legislature last month that would help establish a `green corridor' PACE program among several South Florida cities. The measure would allow the communities to purchase clean energy systems for residents' homes

BY HOWARD COHEN

Going green could extend to consumers' wallets if Cutler Bay Mayor Paul Vrooman's plan passes muster with the governor.

The program Vrooman has championed, Property Assessed Clean Energy (PACE), enables property owners to borrow money to buy solar panels, wind generators, insulation or shutters for their homes with little upfront expense.

The program would establish a municipal ``green corridor,'' consisting of Cutler Bay, Palmetto Bay, Pinecrest, South Miami and Coral Gables. The five cities would lend money for a homeowner to install a proven energy-saving device -- say, $30,000 in solar panels or $3,000 for solar plumbing.
In return, the cities would place a lien on the home until the loan was paid off by the homeowner, who would be assessed a monthly fee for the loan's duration.

Link to the rest of the Miami Herald story

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Well, there's a bunch the Herald got right and a bunch they totally munched with this story.  I know there's a drive to make all stories have a local angle, and there's a good one with what the cities in the southern part of  Miami-Dade are trying to do, but it isn't everything.  PACE is an umbrella name for using tax-bill financing to get around tight credit markets and the uncertainty of investing in something that may take longer to "pay back" than the homeowner may actually live there.  With Floridians notorious for uprooting themselves every half-dozen years, it is exceedingly difficult to get the average joe-homeowner to invest in their property beyond the granite countertop or whatever Realtor friendly improvement will immediately bump resale value.  So PACE is a tool to get past that since you don't have to settle the debt like you would with a second mortgage or other "traditional" financing vehicle.

Where the Herald totally goofed was mixing the "green corridor" idea with PACE.  The former is a way for small cities like Cutler Bay and its neighbors to bring enough volunteers together for the issuance of debt to start the latter.  That's it.

The County is also pursuing this.  I think there's a report out from the Mayor in response to a Commission directive to come up with a set of options on how to pursue a PACE program for those of us living in the unincorporated area and maybe even the cities.  I'll see if I can find it and will post that here as well.

Update: here's the link to the report.  Summary: County administration thinks PACE is a great idea but they want to bring in a company to do most of the work because of they're cutting budgets and jobs and they don't have the people to manage the program.

  

 

Tax bill financing for efficiency and renewables passes Fla Legislature

A bill making it OK for local government to set up tax bill financing of small scale solar, wind, efficiency, and even hurricane hardening, passed the Legislature on the last day of the session.  The Senate took up HB 7179 passed earlier in the week in the House and passed the bill to allow local governments to create a volunteer program for homeowners and businesses to fund energy efficiency and renewable energy improvements.

The concept, first started in Berkeley California, is pretty simple.  Most people cannot make a huge investment in major renewable energy systems in their homes and businesses (or major efficiency investments for that matter) because of the heavy up-front cost.  They get trapped into the "payback period" concept where you figure out how many years it will take to recover your initial investment.  A better way of evaluating these improvements is through a "return on investment" model.  Property Assessed Clean Energy programs (PACE for short) allows a ROI model instead of payback.  So would a home equity loan, but here's the advantage with PACE - the loan rides with the property, not the owner.  Since these are often substantial permanent investments into the structure that provide benefits that stay with the property, it makes sense that the repayment of the loan stay with the property that is receiving the benefit.  With bank lending at a near standstill, this type of program will give local governments a tool to really boost local investments and job creation.  And property owners will have a new tool to help them make that final commitment to serous energy improvements.

Finally, a decent piece of energy legislation out of Florida.

Miami-Dade looks into tax financing of solar for homeowners

Miami-Dade Commissioner Katy Sorenson pushed a piece of legislation through the Commission calling on the Mayor to develop the "Berkeley model" for renewable energy financing.  Basically a person who lives in an area offering this type of service (currently the City of Berkeley and Palm Springs County, California, Boulder Colorado and a couple other places in the country) can "op-in" to a taxing district like you have for street lights or landscape maintenance.  But instead of mowing the commons of a development, the property owner can use funds to install solar or do major efficiency enhancements like super-efficient windows or an A/C or cool roof and pay back the loan through an assessment on their tax bill.

The resolution calls for a plan to come back for the legislative body's review in three months.

You can read the resolution here

and if you really want a glimpse of what nonsense the Board of County Commissioners can be, watch how long the "debate" dragged out because perennial opponent to Sorenson - Natash Sejas tried to kill the idea and ended up voting against the item along with allies Diaz and Martinez: Video  and click on item 11A9 on the left.