Here’s how it works:

• The rebate amount is based on the software-modeled energy use reduction in your home as a result of a home energy upgrade
• A 20% reduction earns $2000 in rebates. Each 5% reduction beyond that earns another $375, up to $3500
• This is a limited pilot program

Here’s how you get the money:

• Hire a home performance contractor (that’s us!) to perform an energy audit of your home
• Work with your specialist to choose and implement cost-effective improvements to achieve the desired energy use reduction
• Receive your rebate money as you enjoy your newly efficient, comfortable home!

Why Recurve?

• We provide all necessary steps in one place (audit, remodel, retest) and we manage the application process for you
• Our team is the most experienced in the Bay Area in comprehensive energy audits and home energy remodels
• We’re Building Performance Institute (BPI) Accredited

Learn more here. Call (415) 728-9726 or click here to get started!

The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, supports S. 3434, the “Home Star Energy Retrofit Act of 2010,” which would provide a solid framework for a worthwhile, incentive-based program that would create American jobs while saving energy.

The home retrofit industry is a uniquely American industry: the vast majority of windows, doors, and insulation for these retrofits are manufactured in the United States. Since 2006, this industry has been decimated, with more than 650,000 jobs lost. The incentives provided by S. 3434 would create good, living-wage jobs for American workers, while providing homeowners the ability to make a substantial dent in their overall energy costs.

The Chamber supports S. 3434 and hopes this important legislation is considered by the full Senate in the near term.

Visit www.efficiencyfirst.org/home-star to learn more about the proposed HOME STAR incentive program, and about how you can join the trade association Efficiency First and other national organizations in supporting this important legislation.

A free Webinar recording at www.utilityexchange.org/webinar/20100701 will help your shop get ready for HOME STAR’s performance-based GOLD STAR incentive with a road map to BPI accreditation.

PACE programs stalled by federal mortgage regulators
Property Assessed Clean Energy (PACE) financing programs across the country have been suspended following recent actions by Fannie Mae and Freddie Mac, the government-sponsored corporations that back most home mortgages in the United States. The problem is that the Federal Housing Finance Agency (FHFA), which oversees Fannie and Freddie, doesn’t like the idea of PACE liens taking precedence over mortgages in foreclosure proceedings—despite the fact that energy improvements typically increase the value of a home, and the potential financial impact on the mortgage industry is comparatively small.

PACE programs, which allow property owners to pay for a wide range of energy improvements with loans attached to their property tax assessments, have been lauded as an innovative, transformative financing model for energy efficiency and renewable energy projects. But in May, Fannie and Freddie started spreading the word among commercial lenders that properties with energy improvement liens that are senior to mortgage debt would not meet FHFA underwriting standards. The FHFA confirmed the new policy on July 6 when it issued guidelines that have effectively made it impossible for homeowners to get approval for mortgages on homes with pace liens attached. (A grandfather cause exempts PACE loans issued before July 6.)
That leaves homeowners and contractors caught in the crossfire as most PACE programs have stopped making loans, projects are being suspended, and $150 million in federal stimulus funding allocated to PACE financing is being diverted to other programs. However, at least one prominent PACE program—the Sonoma County Energy Independence Program (SCEIP) in Northern California—has announced that it will continue to issue energy improvement loans in defiance of federal mortgage regulators, “predicated on the SCEIP providing full and complete disclosure about program participation to any potential applicants and ensuring the public fully understands the consequences of participation.”

PACE advocates around the country are pushing for a judicial or legislative solution to the impasse. California Attorney General Jerry Brown has filed suit in United States District Court seeking reversal of the FHFA ruling, and on July 15, Rep. Mike Thompson and 29 other members of Congress introduced the PACE Assessment Protection Act of 2010, which would force Fannie and Freddie to adopt underwriting guidelines that support PACE lending. But for now at least, most homeowners will have to find other ways to finance energy improvement projects.

Unfortunately, the discussions between the Obama Administration and the FHFA have not been successful. DOE 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. DOE has begun notifying ARRA grant recipients that they probably want to start moving their grant funds away from residential PACE.

A subsequent report in the New York Times confirmed that Cathy Zoi, the DOE’s Assistant Secretary for Energy Efficiency and Renewable Energy, had contacted DeVries to say that “the administration needed to begin contingency planning on what to do with stimulus funding for PACE.” The Times also quoted Ben Pearlman, a county commissioner in Boulder, Colorado, who received a similar call from Secretary Zoi saying that “in light of the circumstances we should look at other ways of financing energy efficiency with the stimulus money.”

Although Fannie, Freddie and the FHFA have yet to issue formal guidelines regarding PACE liens, local governments across the country are freezing their property-assessed lending programs pending government action that would clear the way for PACE lending to resume.

Meanwhile, Rep. Barney Frank, chairman of the House Financial Services Committee, and Rep. Henry Waxman, head of the House Energy and Commerce Committee, have sent a letter urging administration officials to “quickly identify, agree on and publish guidelines that would allow PACE financing programs to continue while ensuring that both taxpayer and private mortgage investments are protected.” And the Washington Post has cited an anonymous source within the Department of Energy saying that the DOE is “seeking protection for homeowners who have already taken on PACE financing.”

Minimal financial impact: Earlier on Friday, before these latest reports began to surface, the Times‘ Todd Woody posted a thought-provoking analysis suggesting that the potential liability related to PACE liens would be tiny:

Putting aside whether such liens are any different from the property tax assessments commonly used to finance municipal improvements, how big a potential liability would Fannie and Freddie face?

Not very big, according to an analysis by the California attorney general’s office.

In a June 22 letter to the Federal Housing Finance Agency, which oversees Fannie and Freddie, Ken Alex, a senior assistant attorney general, cited the example of a homeowner who obtains $15,000 in financing from a PACE program to pay for a solar array and energy efficiency upgrades.

With a 7 percent interest rate and a 20-year payback term, the annual assessment on the homeowner’s property tax bill would be about $1,500.

“At the time of foreclosure for failing to pay the mortgage, it is likely that at most, one PACE assessment of $1,500 would have achieved priority lien status,” Mr. Alex wrote.

“This exercise suggests that with a portfolio of Fannie/Freddie mortgages that have PACE liens, assuming a high foreclosure rate of 10 percent, PACE seniority would average $150 per home,” he added. “Using a more reasonable foreclosure rate of 5 percent, average PACE seniority per home would be a mere $75.”

More on this topic:

• Energy Lien Is Little Threat to Loan Giants (New York Times, 7/2/2010)
• Obama Admin Unable to Resolve Shutdown of PACE Clean-Energy Program (Grist, 7/3/2010)
• Loan Giants Opt to Block Energy Programs (New York Times, 7/3/2010)
• U.S. Lawmakers Urge Guidance for Clean Energy Loans (Reuters, 7/3/2010)
• Green Initiative’s Future Murky as Regulators Weigh Risks to Homeowners (Washington Post, 7/4/2010)
• Fannie and Freddie to clean-energy program: Drop dead (Grist, 7/6/2010)

How Does the ME2 Program Work?

• You must get a home energy audit to qualify for the rebates
• Since the program is sponsored by the city of Berkeley, you must own a single-family home or duplex in the city and meet certain income guidelines. You must be up-to-date on your taxes and liens.
• Recurve will help you apply for the ME2 rebate program which is available based on a lottery system based on applications received during a 2 week period (July 6- 20). People who will get the rebates will be selected at random from the pool of applicants after July 20th at midnight
• Special financing is available through Recurve – if you want to finance the net (after rebate) cost of your home improvements

When is the ME2 Program Available?
Sign up for a home energy audit now. The ME2 Program is taking applications for the lottery July 6 – 20, 2010. It’s likely the money will run out during these 2 weeks, but if it doesn’t, they’ll accept applications on a first come, first serve basis after the 20th. The PG&E Pilot Program will have money available for a longer timeframe.

Full details here: http://www.recurve.com/what-we-do/financing/berkeley1/

As a reminder, a PACE bond is a bond where the proceeds are lent to commercial and residential property owners to finance energy retrofits (efficiency measures and small renewable energy systems) and who then repay their loans over 20 years via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts or finance companies and the proceeds can be typically used to retrofit both commercial and residential properties.

The advantages of PACE programs include significant job creation, reduction in greenhouse gas emissions, lower energy bills and substantially reduced upfront cost for energy improvements, increase in property value, improved return on investment, and many more.

Check out the article in the New York Times here.

Read the full article in the New York Times here.

Governor Arnold Schwarzenegger issued a statement after President Barack Obama outlined more details of a new Home Star program that encourages American families to invest in energy saving home improvements which will also help create jobs. Said Governor Schwarzenegger:

“I am excited about the Home Star program that the President detailed today. Offering incentives to Americans who make their homes more energy efficient will help create jobs and save homeowners money while also helping to reduce greenhouse gas emissions. This is a promising idea, and Democrats and Republicans should work together to enact it into law.”

Obama has previously said that shifting the U.S. toward cleaner, renewable sources of energy and making homes — particularly older houses — more energy-efficient will help accomplish three goals: reducing America’s dependence on foreign energy sources, creating much-needed jobs and saving consumers money on their utility bills.

Under the first level of energy rebates, Silver Star, consumers would be eligible for rebates between $1,000-$1,500 for a variety of home upgrades, including adding insulation, sealing leaky ducts and replacing water heaters, HVAC units, windows, roofing and doors. There would be a maximum rebate of $3,000 per home.

Under the second level, Gold Star, consumers who get home energy audits and then make changes designed to reduce energy costs by at least 20 percent would be eligible for a $3,000 rebate. Additional rebates would be available for savings above 20 percent.

The administration expects household demand for energy upgrades to be boosted once the program is underway, similar to how Cash for Clunkers boosted demand for fuel-efficient vehicles.

Read the full article from Associated Press here.

Read the full article here.