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Lynne Westerfield - Posted 7/26/2010
Last Saturday, the Summit County Energy Working Group met with John Hickenlooper, Democratic candidate for Colorado Governor, for an hour at the Colorado Mountain College, Breckenridge. I thought he was well-spoken, well versed in energy issues and offered some great comments and direction on our local efforts. The following offers some highlights from our conversation and some thoughts from other members of the working group. (Please note, High Country Conservation Center does not endorse one gubernatorial candidate over another. We would be delighted to meet with other candidates from any party. To his credit, Hickenlooper sought us out in order to learn about what is being done in the community.)
Dave November, Vail Resorts Environmental Manager, said “I find his thinking on economic development very interesting and unique. I thought he had some good ideas on matching up energy efficiency and job creation in the New Energy Economy. He was clearly interested in the community-based nature of the Summit County energy working group.”
Valuing energy efficiency: Mr. Hickenlooper expressed that those involved in the market cycle of a home need to learn how to value energy efficiency. Appraisers, for example, do not always recognize the increased value to a home that energy efficiency improvements can bring. About the current trouble with the FHFA and Fanny Mae and Freddy Mac surrounding property assessed loan programs, he expressed that he stood behind the property assessed loan programs. “They put money into the pocket of homeowners,” he said, which is good for the local economy.
Point-of-sale energy audits: Mr. Hickenlooper shared a model for point-of-sale energy audits, which is beign developed in Denver. He explained they were working with realtors in order to incorporate energy audits into the sale of a home, by trying to cut down the audit turn around time to two weeks or less, so that sale of the home was not delayed. In Denver, Mr. Hickenlooper supports a non-regulatory approach to incorporating audits into home sale, seeking to accomplish the same task by educating and motivating realtors, and streamlining process.
Planning: After explaining our local planning process, Mr. Hickenlooper expressed an interest in seeing community-based approaches to economic development planning. Local plans could then be brought to a state level, instead of visa-versa.
Nerdy But Cool? Mr. Hickenlooper’s self-depreciating humor goes a long way in selling his point. But we think this self-description is fairly accurate. He was a little nerdy, but he was definitely cool (he drank beer with us) and sharp and well versed and personable.
Comments are moderated by HC3. Send comments to lynne@highcountryconservation.org. They will be posted within 24 hours.
RockiesJ- posted 2:00 pm 7/24/10
I read throught he transcript of Hickenlooper's debate with McInnis in front of the oil and gas industry. I have to say that he did not come accross in transcript as the straighforwad and man of ideas and action he is in person. If you ahev the chance to hear him speak - go see him.
JMFrisco- posted 2:54 pm 7/24/10
I thought he had some good ideas, but more than anything he specifically said, I liked what appeared to be his philosophy of getting people together around ideas and getting people talking. He has in interesting approach.
Property Assessed Clean Energy Programs Under Attack by Mortgage Giants
Lynne Westerfield - Posted 7/09/2010
Property assessed clean energy (PACE) programs have been put on hold in Eagle, Boulder, Pitkin and Gunnison Counties and across the country due to interference from mortgage giants Fannie Mae and Freddie Mac, despite efforts from the Obama administration to clear up the disagreement.PACE programs stimulate the economy, lower household energy costs and provide a low cost way for homeowners to make improvements. PACE prograsm are attractive to homeowners because they often have longer terms and lower interest rates that home equity loans, and are paid back through a special assessment on property taxes.
With Colorado’s construction unemployment rate above 20%, a critical result of the program is its stimulation of demand for home performance contractors and retrofitters. Homeowners willing to make the investment get higher performing homes and lower monthly energy bills. Payment is tied to the property, which makes sense when you consider that more efficient homes sell for more and retain their market value better even in a recession.
It seems like a win-win. However, what Fannie Mae and Freddie Mac take issue with is that homeowners who fall behind on payments must repay their energy assessment before their mortgage. Fannie and Freddie have stated they may not honor mortgages with an energy efficiency property assessment attached.
However, property-assessed programs do not act as traditional loans in the way Fannie and Freddie imply. Programs are administered on a county or city level and use the same benefit assessment power that local governments use to provide infrastructure improvements such as sidewalks or new sewer lines and assess payment to individual properties. This longstanding power of municipal government allows these local assessments to be paid first. We think it makes sense to categorize energy efficiency as just this sort of infrastructure improvement, since energy upgrades lower energy costs on the property indefinitely and have added benefits to the community, such as increasing energy independence and decreasing dependence on polluting fuel sources.
The argument with Fanny Mae and Freddie Mac has also put a statewide property-assessed program on hold that would allow any County in Colorado to opt in to a state-wide district (recently signed HB 1328 signed into law in June). Summit has been looking to this opportunity as an option for expanding its program next year. Nearby counties have been watching this legislation as a way to bring property assessed programs to their Counties. Here at HC3 we have received numerous requests to start a similar program in nearby Lake County, which would depend on this state-wide opportunity.
Obama Administration officials recently began talks with the Federal Housing Finance Agency (FHFA), which regulates Fannie and Freddie, in order to clear up the mess. However, according to Cisco DeVries, who began the PACE program, in a communication to PACE supporters, "unfortunately, the discussions between the Obama Administration and the FHFA have not been successful. DOE (Department of Energy) and the White House have informed us that the senior lien, regardless of how structured, accelerated, or insured, is not acceptable to the regulators. New guidance from Fannie and Freddie to this effect is due out soon."
PACE programs are not just popular in Colorado. Twenty-two states have passed laws allowing such programs and the Obama administration backed the idea with $100 million in stimulus-act funding. Congress may address legislation that will allow the property-assessed clean energy programs to move forward, but this may take months. In the mean time, homeowners who want to fund some simple improvements like adding insulation or a few solar panels will have to wait, unless they live in Summit County, and in that case they should thank the County and Town of Breckenridge for their leadership in keeping the program going.
Comments are moderated by HC3. Send comments to lynne@highcountryconservation.org. They will be posted within 24 hours.
BNMan65 - posted 2:18 pm 7/9/10
I've been following this issue and it seems like Fannie and Freddie don't have much of a case. It makes sense to cut back on risky bahavior but energy improvements actually save money monthly, eventually paying themselves of. This actually helps the homeowner pay the mortgage. Not sure what they're thinking.
SusanT2C - posted 3:08 pm 7/9/10
Nice Job Summit. I'm excited to live in one of the only Counties able to keep this program going.
BlueBonnet - posted 4:11 pm 7/9/10
Thanks. I've been a little confused by this issue (but interested). This piece is very informative. Way to go Summit County!!!
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