If approved by the City Council this month, Annapolis’ Energy Zone Program would start in November (Photo: Flickr)

Yesterday, Power Plug Editor Justin Gerdes wrote about the City of Palm Desert’s new Energy Independence Program (Power Plug, 9/9/08), which will help residents pay the upfront cost of energy efficiency and solar upgrades with loans that are repaid by property tax assessments.

This brilliant concept, which was conceived by Cisco DeVries, formerly chief of staff for Berkeley Mayor Tom Bates, was introduced by Bates in October 2007 (e-Newswire, 10/31/07). Within days, DeVries and other Berkeley officials were inundated with questions from government officials throughout California and the United States and around the world.

At least one city outside California is ready to follow Berkeley and Palm Desert’s lead. A new program in Annapolis, Maryland, called the Annapolis EZ (Energy Zone) Program would offer tax-exempt, low-interest rate loans to property owners who install energy-efficient equipment, with payments on those loans placed directly on property tax bills. According to city officials, the savings from reducing power consumption should balance out the cost of the loan and, eventually, yield savings for property owners for many years to come (as the case study in yesterday’s post illustrated). The city is partnering with the Maryland Energy Administration, Annapolis and Anne Arundel County Chamber of Commerce Foundation, and CommerceFirst Bank to get the program started. No tax dollars would be used to pay for loans, city officials told the Annopolis Capital.

According to City Administrator Bob Agee, Maryland law prohibits energy improvements from raising assessments on properties. One of the goals of the program, says Agee and other city officials, is to tie financial responsibility for energy improvements to the property – instead of the owner assuming all the upfront costs. If the property owner sells, the loan is taken on by the new owner.

Here’s how the program would work. Property owners who want to finance energy improvements to their properties, such as a high-efficiency HVAC system, energy-efficient windows or rooftop solar panels, can apply for a low-interest loan from the Chamber of Commerce Foundation through a funding pool provided by CommerceFirst. The Maryland Energy Administration conducts energy efficiency audits property owners need to secure the loan and provides homeowners a list of certified contractors who can install efficiency improvements.

Annapolis Mayor Ellen O. Moyer says she will introduce a resolution to adopt the Energy Zone program before the City Council this month. If approved, the Energy Zone program would start in November.

• Related: “Palm Desert Launches California’s First Energy Efficiency and Solar Loan Program” (Power Plug, 9/9/08)