House Bill 1389, Finance Energy Improvement with Assessments, is brought to the committee by bill sponsor, Rep Susan Fisher, D Buncombe. The bill started as a request from city of Asheville and the county of Buncombe quickly signed on. Others involved in crafting the bill include: The UNC School of Government, city of Raleigh, city of Winston Salem, Duke university (Nichols Institute, I’m sure), Sierra Club, NCSEA and the Local Government Commission has signed off on it. No mention of how taxpayers feel about their money being used like this.
This bill authorizes cites and counties to create a program to finance the installation of renewable energy sources or energy efficiency improvements that are permanently fixed to real property through loans that are repaid by contractual assessments on the real property.
Rep Bill Faison, D Orange, applauds the creativity of the idea. Rep Darrell McCormick, R Forsyth, asks about priority of the lien. The lien will stay with the property. Have banks been asked? No, but the same as is now done under assessments. Rep David Lewis, R Harnett, says the tax lien is paid first but this is not a tax lien so it stays with the property.
Rep Edgar Starnes, R Caldwell, asks about examples: solar panels, water cooling or heating apparatus, wind mills qualify – there is another permitting bill – windmills would qualify if they meet the criteria. City or county can designate an area where they will finance these – does not supercede any zoning or home owners’ association regulations. Sometimes it’s hard to see the whole picture when you’re only looking at one piece. We need to also look at permitting, zoning. And financing all together. Rep Deborah Ross, D Wake, says we do have someone who works for a city and knows how these things work. Mr. Stan McLawhorn with city of Raleigh says city received federal stimulus money has $400,000 to spend and they want to sue it for this and anticipate most being used for solar panels.
Rep John Blust, R Guilford, asks what exactly is renewable energy? Fisher says Chapter 62, aka SB 3 defines it. Seems like energy efficiency could be used for anything – not defined in statute and would be up to the local governemnr to define.
Rep David Lewis asks if this will between the local government and individual property owner? Yes. Would local governments establish some kind of criteria to ensure the loans could be repaid? Yes. Concerns with cities becoming loan officers – Raleigh rep, McLawhorn says no problem – they’re already doing it.
Rep Bill McGhee, R Forsyth has questions about defaulted loans. Assured there is a process in place.
Bill passes with a voice vote with Rep Edgar Starnes voting no.
Basically what we have here is taxpayers paying money to fund government’s energy agenda – whether you agree with it or not. Local tax revenue will be going to install solar panels on your neighbor’s house; not for police protection or to improve water and sewer service.
