(Bump! Bump! Exciting, win-win legislation! - promoted by Eric B.)
Democratic State Representative Joel Sheltrown of West Branch will introduce legislation this week that would put green energy production within the financial reach of most Michigan homeowners and business owners. The proposal was brought to his attention by MichLib bloggers and is modeled after similar laws in other states.
The legislation will allow local units of government to issue bonds to provide for loans to homeowners and businesses located within their jurisdiction for renewable energy production and energy efficiency improvements. The bill will increase local green energy production and energy efficiency improvements in Michigan and to stimulate green energy jobs in those fields.
Under the bill, energy production includes wind energy, solar energy or geothermal energy. Energy efficiency improvements incldue federal Energy Star qualifying improvements affixed to the structure.
The decision to seek and issue bonds is left to the local unit of government under the bill. It is voluntary. The process for distributing loans under the bonds is also left to the local unit of government, preserving local control of the process.
The loans would not exceed a 20 year re-payment period. The interest rate on the loans would not be more than 0.5% higher than the interest rate on the bond. The amount of the loans would be limited to no more than $10 per square foot of the structure ($20,000 on a 2,000 sq. ft. structure). Repayment of the loan would be made through winter and summer property taxes and would remain with the property in the event of a sale.
Beacuse the interest rate on the loan is kept to a rate just above that of a municipal bond and the loan is qualified through the property rather than the property's owners credit rating, it would provide most Michigan property owners with the means of generating their own renewable energy and making energy efficiency improvements on their homes or businesses that would otherwise be out of reach. If signed into law, it could provide for a surge of green energy jobs in the state for green energy manufacturing, local servicing, contractors and builders.
The bill will have no fiscal impact on the state as it does not provide a state tax credit and the loan program is not dependent on state budget support.
The photo above shows the existing wind turbine installed by Horrock's Market in Lansing. |
