New Law Provides Energy Loans to Oregon Homeowners

Bill offers home insulation retrofits
An Energy Efficiency and Sustainable Technology law will provide $15 million in loans in the next 2 years
 
By David Steves – The Register-Guard – August 3, 2009

How would you like to be able to add insulation that keeps your house cooler in the summer and warmer in the winter — and then pay for it with the money you could end up saving on your utility bill over the next 20 years?

It may sound too good to be true, but it’s just what new state legislation promises to deliver.

The new Energy Efficiency and Sustainable Technology bill, signed into law in Eugene by Gov. Ted Kulongoski, will provide $15 million in loans over the next two years to Oregon homeowners. Unlike conventional home improvement loans, the money can be repaid with utility bills.

The bill’s authors, including Rep. Chris Edwards, D-Eugene, say they fully expect that the reduced energy usage — and lower utility bills — will provide consumers with enough savings to pay back the loans.

Edwards was part of a bipartisan group of House members who came up with the bill and worked it through the 2009 session. It is now awaiting Oregon Department of Energy rule-making so it can be tested in a few areas.

Eugene is one of five places in Oregon to express interest in piloting the program. If it’s included as a testing area, then Eugene residents could be taking out loans and hiring contractors to retrofit their homes for greater energy efficiency or to add renewable energy components by late this year or early next year, Edwards said.

Energy Efficiency Mortgages are Available

What’s the Scoop on Energy Loans?
by M. Radnich – Cascade Business News – April 1, 2009

Global warming is the most urgent environmental crisis of our time. Studies have shown that 25 percent of carbon emissions are from residential dwellings. 

Energy Loans for homeowners to improve their carbon footprint are becoming a necessity for those who want to be environmentally responsible. A recent analysis by the Environmental Protection Agency (EPA) confirmed that Energy Efficient Mortgages (EEM’s) can have a dramatic impact on increasing the opportunities for home ownership. The analysis found than an average 6.8 percent more families would be able to qualify for a mortgage through an energy efficient mortgage.

Energy Efficient mortgages can be used to make significant energy efficient improvements in one out of four existing and new homes, according to the Joint Center for Housing Studies (HUD/DOE).

A study published in the Appraisal Journal documented that the market value of a home increases $20 for every $1 decrease in the annual energy costs. A recent analysis by the Pacific Northwest National Laboratory, building a home to exceed the Model Energy Code would result in an annual savings of $170 to $425. Applying these findings to the analysis published in the Appraisal Journal would equate to an increased home market value of $4,250 to $10,625.

The purpose of the Energy Loan Program in Central Oregon, (also known as SELP), is to promote energy conservation and renewable energy resource development.  This State of Oregon program offers low-interest loans for projects that:
• Save energy
• Produce energy from renewable resources such as water, wind, geothermal, solar, biomass, waste materials or waste heat
• Use recycled materials to create products 
• Use alternative fuels
• The Energy Loan Program can loan to individuals, businesses, schools, cities, counties, special districts, state and federal agencies, public corporations, cooperatives, tribes, and non-profits. Projects must be in Oregon.