Los Angeles County AB 811 Program
When asked, most property owners are in favor of implementing energy efficiency projects or installing solar on their property. However, the often high initial cost of the investment tends to prohibit this. There are plenty of rebates and incentives available to property owners for receipt after the energy efficiency project has been implemented, but there are not many available to help kick-start the initial process.
On April 14, 2009, the Los Angeles County (County) Board of Supervisors directed staff to begin establishing a County-wide energy efficiency and renewable energy financing program pursuant to Assembly Bill 811, Chapter 159 Statutes of 2008 (AB 811) passed by the California legislature. The key features of this County-wide AB 811 Program include:
• Provide financing prior to the start of a project with the intention of eliminating the “first cost” hurdle.
• Provide municipal financing for energy efficiency and renewable energy projects on private property.
• Require little or no upfront cost to property owners without impacting their credit.
• Allow the benefitted property to serve as a security deposit.
• Administer financing costs through a property tax assessment which transfers with the sale of the property.
• Availability to property owners in participating cities located within the County and all unincorporated areas.
Why a County-wide Program?
Federal, state and local authorities stress that regional collaboration is critical in developing viable Climate Action Plans and achieving greenhouse gas reduction goals and other regional sustainability objectives. Reducing energy usage and encouraging the use of renewable resources in existing buildings is a key industry strategy as indicated in the chart below:
A County-wide program provides the following benefits:
• Achieves economy of scale saving time and cost in developing financing districts.
• Advances a consistent program design across a large area and population.
• Develops a regional network for workforce development, quality control and results measurement.
• Achieves consistent regional messaging, marketing and education
• Allows regional coordination with other stakeholders.
Program Benefits
In addition to achieving regional sustainability goals and greenhouse gas reductions, a successful County-wide AB 811 program will produce these ongoing, long-term benefits:
• Creation of green jobs and green jobs training programs.
• Stimulus for regional economic development.
• Transformation of our region into a center of energy efficiency and renewable energy application.
• Reduction of greenhouse gas emissions.
• Provision of tangible and highly beneficial service and benefits to constituents.
Implementation Progress
Los Angeles County plans to kick-off its AB 811 Program with the funds made available through the American Recovery and Reinvestment Act (ARRA). L.A. County applied for the ARRA Federal Energy Efficiency and Conservation Block Grant and was awarded 15.4 million dollars, a portion of which will be applied to the County’s AB 811 program. The County is in the process of applying for other similar monetary awards.
The County has completed and will conduct the following:
• Investigated and confirmed the legal feasibility and requirements of AB 811.
• Investigated and confirmed the financial feasibility and requirements of implementing a County-wide AB 811 program.
• Develop a financial analysis and project financing program.
• Create a region-wide program design, implementation and administration structure.
• Engage regional stakeholders in planning and development.
Supporting Documents
Board of Supervisor’s Status Reports:
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