This is how you kill an industry, promise something and then reneg. Such behavior - by the State and from less than honest installers - will shred credibility and make everyone in the business seem to be a shyster. Shame on the State for consistently underfunding the program and knowingly letting it get this out-of-control.
______________________
By Cristina Silva, Times Staff Writer
In Print: Tuesday, August 3, 201
The state owes Floridians $52.7 million in unpaid solar energy rebates and has no immediate plan to honor its financial promise. More than 15,800 people await the rebates, which were dangled before homeowners and businesses to encourage greater investment in solar energy technologies such as solar-power water heaters and electric systems. The state's new fiscal year, which started in July, marks the second consecutive year that the Florida Legislature has refused to fund the popular program. Some people have been on the waiting list for years, said Travis Yelverton, deputy director of the Governor's Energy Office.
read the rest of the article here
Monday, August 9, 2010
Sunday, August 1, 2010
Alex Sink unveils renewable energy plan in Miami
Alex Sink paid a visit to local solar products distributor, Sun Electronics, this last week to announce her energy strategy for Florida. Not surprisingly based on the backdrop of a warehouse full of solar panels, her plan calls for a serious push into renewables and to open the grid to homes and commercial establishments.
For too long, mega-utilities have dominated the "market" for solar, wind, etc by making it difficult to connect to the grid, insisting on outrageous insurance riders, and sucking the oxygen out of renewables by latching their massively subsidized nuclear ambitions onto the tiny little toe-hold that solar, wind, biomass, and efficiency have in the energy mix.
The gubernatorial hopeful sees the struggling solar industry as a gateway to new Florida jobs and a clean/green tech hope for a diversified economy too heavily dependent on tourism, agriculture, and other lower wage jobs.
I've read a number of comments attached to the story in the Miami Herald and the Tampa Tribune (same story by Mary Ellen Klass ran in both papers) that attack solar as being "too expensive" and the usual nonesense about it "only working when the sun is out" by the usual know-nothings. What CFO Sink calls for is a smart suite of policies that will encourage the growth of an industry that is absolutely exploding throughout the rest of the world. Even within the US, Florida is competing with California, Massachusetts, New Jersey, Tennessee, and about a half-dozen other states that are all vying to be the economic center of the new green energy economy. South Florida cities and counties are already jockeying to compete for these naescent industries, but the State has been the biggest impediment. With better policies - like adopting legislation enacting the solar property tax protection amendment to the state constitution, an agressive RPS that the formerly Republican Governor and the State PSC called for, fully funding the rebate program through a tiny public benefit trust fund, and tax credits for expansion and relocation for solar and wind manufacturing firms - we'd have a chance to compete.
Read more
Story in the Miami Herald
Blog post on Naked Politics
For too long, mega-utilities have dominated the "market" for solar, wind, etc by making it difficult to connect to the grid, insisting on outrageous insurance riders, and sucking the oxygen out of renewables by latching their massively subsidized nuclear ambitions onto the tiny little toe-hold that solar, wind, biomass, and efficiency have in the energy mix.
The gubernatorial hopeful sees the struggling solar industry as a gateway to new Florida jobs and a clean/green tech hope for a diversified economy too heavily dependent on tourism, agriculture, and other lower wage jobs.
I've read a number of comments attached to the story in the Miami Herald and the Tampa Tribune (same story by Mary Ellen Klass ran in both papers) that attack solar as being "too expensive" and the usual nonesense about it "only working when the sun is out" by the usual know-nothings. What CFO Sink calls for is a smart suite of policies that will encourage the growth of an industry that is absolutely exploding throughout the rest of the world. Even within the US, Florida is competing with California, Massachusetts, New Jersey, Tennessee, and about a half-dozen other states that are all vying to be the economic center of the new green energy economy. South Florida cities and counties are already jockeying to compete for these naescent industries, but the State has been the biggest impediment. With better policies - like adopting legislation enacting the solar property tax protection amendment to the state constitution, an agressive RPS that the formerly Republican Governor and the State PSC called for, fully funding the rebate program through a tiny public benefit trust fund, and tax credits for expansion and relocation for solar and wind manufacturing firms - we'd have a chance to compete.
Read more
Story in the Miami Herald
Blog post on Naked Politics
Sunday, July 11, 2010
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
.
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
.
Saturday, May 29, 2010
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:
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
Tuesday, May 18, 2010
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 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
------------------------
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.
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.
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