What is AB 811?
AB811 allows local government to offer energy project loans to eligible property owners
Assembly Bill (AB) 811 allows local government entities to offer sustainable energy project loans to eligible property owners. Through the creation of sustainable energy financing districts, property owners can finance renewable onsite generation installations and energy efficiency improvements through a voluntary assessment on their individual property tax bills.The assessment district approach adds a new and potentially powerful option to the clean energy finance landscape.
Property Owners benefit by avoiding the upfront installation cost of renewable onsite generation systems and energy efficiency measures and eliminating concerns that they will sell the property before recovering the system investment from utility bill savings. The result is that property owners in participating jurisdictions can finance their greening efforts without financial risk.
Cities benefit from forming clean energy assessment districts or opting into broader AB811 programs. Clean energy investments funded through these programs will assist local governments in reaching the goals of Assembly Bill 32, the California Global Warming Solutions Act of 2006. The AB 811 mechanism requires little or no investment of general funds and presents very low risk given that the loan repayment is a senior lien on the property,ahead of the mortgage itself.
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