HomeMy WebLinkAboutRes 09-34 - Amnd EIP Admin Guidelines & Set a PH CITY OF PALM DESERT
OFFICE OF ENERGY MANAGEMENT
STAFF REPORT
REQUEST: Adopt Resolution of Intent No. q9-34 Directing Staff to Prepare the
Appropriate Amendments to Energy Independence Program (EIP)
Administrative Guidelines and Set Thursday June 25t", 2009 as a Public
Hearing for Consideration of Adoption.
SUBMITTED BY: Patrick Conlon, Director of Office of Energy Management
DATE: May 21, 2009
CONTENTS: 1) Resolution No. 09-34
2) Revised EIP Administrative Guidelines
3) Consent Agreement
Recommendation:
By Minute Motion, Adopt Resolution of Intent No. 09-34 Directing Staff to Prepare the
Appropriate Amendments to the Energy Independence Program (EIP) Administrative
Guidelines and Set Thursday June 25t", 2009 as a Public Hearing for Consideration of
Adoption.
Executive Summary:
The adoption of this Resolution on Intent will authorize Staff to prepare a report on the
following 3 recommended amendments to the EIP Administrative Guidelines:
1. A Consent Agreement signed by the property owner's bank or lending agency will
be required on all EIP loans $30,000 and higher;
2. The maximum EIP loan will be $100,000;
3. 50% of EIP funds available for loans will be reserved for energy efficiency
improvements.
These revisions to the EIP Administrative Guidelines have been reviewed by the
Finance Committee and have been recommended to the City Council for approval.
This Resolution of Intent also establishes the necessary public hearing for the final
consideration of adoption of these amendments.
Discussion:
As the City has gained experience through Phases 1 and 2 of the EIP, it has become
apparent that 3 changes are needed to make this program sustainable.
The first change, the one with the most significant impact on the loan applicants, is a
new requirement that all loans for $30,000 and higher have a "Consent Agreement" signed by
EIP Administrative Guidelines Amendments
May 21, 2009
Page 2 of 2
the property owner and their bank or lending agency that holds the First Trust Deed on the
property. The Consent Agreement stipulates that the lender consents to placing an
assessment on the property and that this lien is superior to the existing Deed of Trust. Once
signed and notarized, the Consent Agreement will be recorded on the property.
Prior to this requirement, the EIP loan contract documents only required the owner to
sign a Disclosure, in which the owner was directed to review their existing Loan Contract,
and, if required, obtain permission from their lender to enter into the EIP loan. Many
mortgages and loan contracts have language which prohibits a homeowner from entering into
a voluntary assessment, which would place an assessment lien in a superior position to their
Deed of Trust. Assessments levied through a traditional assessment district, like utility
undergrounding, curbs and gutters, and sewers are not considered to be voluntary
assessments, and as such are not subject to a lender's approval. EIP loans are considered
voluntary assessments.
It is unclear what effect this new requirement for a Consent Agreement will have on
the EIP loan applicants. For example, the average EIP loan for a photovoltaic solar system
has been approximately $35,000. If the property owner cannot get lender approval with a
Consent Agreement, the property owner could apply for an EIP loan under the $30,000
threshold, and thus be exempt from the Consent Agreement requirement.
The second change places a $100,000 maximum cap on EIP loans. This change will
allow EIP funding to serve more applicants.
The third change reserves 50% of the program funds for energy efficiency
improvements. We have learned in Phases 1 and 2 that photovoltaic solar loans used a
disproportionate share of the available loan funds. Over 74% of EIP Phase 1 and 2 funds
went to photovoltaic projects. Energy efficiency improvements are more cost-effective to the
property owner than a photovoltaic solar system. Therefore, staff recommends a change to
the EIP Administrative Guidelines that sets aside 50% of the available funding and earmarks
those funds for EIP energy efficiency loans.
A final issue, which Finance Department staff is currently working on, was suggested
at the Finance Committee meeting of April 28, 2009. The proposed simple interest rate for
EIP loans in the next phase of funding will be 7% APR. The members of the Finance
Committee suggested that this 7% rate was too low for commercial EIP loans, but the 7%
rate is appropriate for residential loans. Finance Department staff is working on an alternative
rate for commercial EIP loans and will bring forward their recommendation at a future
Finance Committee meeting, and if approved, to a future City Council meeting.
Please contact Patrick Conlon, Director of Office of Energy Management with any questions.
Submitted by: Approval:
�
Pa rick Conlon hn Wohlmuth
Director of Office of Energy Management ity Manager
G:\Energy Management\Pat Conlon\Staff Reports�2009 Staff Reports\EIP Amendments to Admin Guidelines SR 5-21-09.doc
ADJOURNED REGi1LAR
PALM DESERT CITY COIINCIL MEETING MAY 21, 2009
%IV. NEW BIISINESS
A. REQUEST FOR APPROVAL OF ACTION RELATED TO AMENDING THE CITY OF PALM DESERT'S
ENERGY INDEPENDENCE PROGRAM (EIP) ADMINISTRATIVE GUIDELINES AND SETTING A
PUBLIC HEARING THEREON FOR THURSDAY, JUNE 25, 2009.
Rec: Waive further reading and adopt Resolution No. 09-34, declaring the
intent to amend the City of Palm Desert's Energy Independence Program
(EIP) Report and Administrative Guidelines prepared pursuant to Section
5898.22 of the California Streets and Highways Code and setting a public
hearing thereon.
CTfY COUNCILA�ON
APPROVED DEN?ED
R CEIVED OTHER
MCETI C DAT —oZ `
AYES / 1 �`
NOrS:�?�
A}3SENT: _�UOYI�C ^—
A[3STAIN:
vr�a�r�rrr� �v:
�arghar�ail c�n F'i!e with City Cle�• s Office
RESOLUTION NO. 09-34
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM DESERT, CALIFORNIA, DECLARING
ITS INTENTON TO AMEND ENERGY INDEPENDENCE
PROGRAM REPORT AND ADMINISTRATIVE
GUIDELINES PREPARED PURSUANT TO
SECTION 5898.22 OF THE CALIFORNIA STREETS AND
HIGHWAYS CODE AND SETTING A PUBLIC HEARING
THEREON
WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code (the "Act"), the City Council established its Energy Independence Program (the
"Program") to assist property owners with the cost of installing distributed generation renewable
energy sources or making energy efficient improvements that are permanently fixed to their
property; and
WHEREAS, in connection with the Program and as required by the Act, the Director of
the City's Office of Energy Management (the "Director") prepared a report (the "Report") in
accordance with Section 5898.22 of the Act; and
WHEREAS, the Report contains (a) a map showing the boundaries of the territory
within which the Program is proposed to be offered, (b) a draft application for participation in
the Program (the "Application"), (c) a draft contract (the "Contract") specifying the terms and
conditions that would be agreed to by a property owner and the City for participation in the
Program, (d) a statement of city policies concerning contractual assessments including: (1)
identification of types of facilities, distributed generation renewable energy sources, or energy
efficiency improvements that may be financed through the use of contractual assessments (the
"Authorized Equipment List"), (2) identification of a City official authorized to enter into
contractual assessments on behalf of the City, (3) a maximum aggregate dollar amount of
contractual assessments, (4) a method for setting requests from property owners for financing
through contractual assessments in priority order in the event that requests appear likely to
exceed the authorization amount, (e) a plan for raising a capital amount required to pay for wark
performed pursuant to contractual assessments, (� a statement of or method for determining the
interest rate and time period during which contracting property owners would pay any
assessment, (g) the establishment of any reserve fund or funds, (h) the apportionment of all or
any portion of the costs incidental to financing, administration, and collection of the contractual
assessment program among the consenting property owners and the City, and (i) a report on the
results of the consultations with the County Auditor-Controller's office; and
WHEREAS, on August 28, 2008, the City Council approved the Report
following a full and fair public hearing at which interested persons were afforded the opportunity
to object to, inquire about or provide evidence with regard to the proposed Program or any of its
particulars;
WHEREAS, the City Council now desires to amend the Report (i) to require
documentation of consent by a preexisting lender for any Program loan that is $30,000 or more, (ii)
1
RESOLUTION NO. 09-34
to establish $100,000 as the m�imum amount of any Program loan, (iii) to require fifty percent of
funds available for Program loans to be reserved for energy efficiency upgrades and retrofits, and
(iv) to make other changes that the Directar or City Manager determines are necessary for
implementation of the Program;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
HEREBY FINDS, DETERMINES, RESOLVES,AND ORDERS AS FOLLOWS:
Section 1. The City Council hereby directs the Director to prepare and file at or
before the time of the public hearing described in Section 2 hereof with the City Council
proposed amendments to the Report as described in the Recitals hereto.
Section 2. The City Council hereby calls a public hearing to be held on June 25,
2009, at 4:00 p.m., or as soon thereafter as feasible, in the Council Chamber, 73-510 Fred
Waring Drive, Palm Desert, California, on the proposed amendments to the Report. At the
public hearing all interested persons may appear and hear and be heard and object to or inquire
about the proposed amendments to the Report.
Section 3. The City Clerk is hereby directed to provide notice of the public hearing
by publishing this Resolution once a week for two weeks, pursuant to Section 6066 of the
California Government Code, in The Desert Sun and the first publication shall not occur later
than 20 days before the date of such hearing.
PASSED, APPROVED AND ADOPTED this day of 20_, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
2
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�'J��►L�t �►��EI�T
Energy Independence Program Report
and
Administrative Guidelines
Outline
Introduction
Goa/s
Background
Benefits
Program Administration
Program Requirements
Eligib/e Property Owners
Eligib/e Properties
Consent Agreement
Eligib/e Equipment
Eligible Costs
Tracks for Participation
The Efificiency Track
The So/ar Track
The Custom Measure Track
Financial Strategy
Energy Surveys and So/ar Site Checks
Energy/ndependence Program Parameters
Minimum Loan Amount
Maximum Loan Amount
Maximum Porlfolio
Duration
Interest Rate
Administrative Fees
Changes to Report
Appendices
A. Equipment List
B. Map of Program Area
C. Draft Program Application
D. Draft Loan Contract
E. Summary of Loan Process
Revision May 21, 2009
1
Introduction
This Report has been prepared pursuant to Section 5898.22 of the California Streets and
Highways Code in connection with the establishment of the City of Palm Desert Energy
Independence Program ("EIP"). This is the guiding document for EIP and fulfills the
Section 5898.22 requirements that this report contain:
1. A map showing the boundaries of the territory within which contractual
assessments are proposed. (See Appendix B.)
2. A draft contract between a property owner and the City. (See Appendix D.)
3. City olp icies concerning contractual assessments.
4. A plan for raising a capital amount to pay for the work performed.
The Energy Independence Program described herein is designed to help Palm Desert
property owners save energy and gain independence from the scarcity of sources of
energy that are compromising the California power grid, threatening national security,
and endangering the global climate.
The Energy Independence Program he/ps Pa/m Desert property owners
save energy and money while doing right for the environment.
Goals
EIP will carry out the City's mission of helping property owners of improved real
property make principled investments in the long-term health of the local, state, and
national economy and global environment.
EIP aims to provide multiple benefits. By enabling property owners to take responsible
energy actions, the program seeks to cut their utility bills. At the same time it shores up
the local economy,the California power grid, and national and global energy interests,
and makes it possible for Palm Desert to fulfill energy conservation and climate
protection commitments.
The City has established a goal to reduce electric and natural gas energy consumption by
30%. The City welcomes innovative energy solutions that will contribute to this goal.
The City intends to initially fund EIP with $2.5 million for energy reduction investments
that might not have otherwise been possible, with a m�imum aggregate amount of$25
million.
Backqround
As a result of Palm Desert's authorship and advocacy of what became Assembly Bill
811, the bill was approved by the California Legislature, signed into law by the Governor
on July 21, 2008 and became immediately effective as an urgency measure. Under this
bill, the California Legislature has declared that a public purpose will be served by a
contractual assessment program that provides the local government with the authority to
finance the installation of distributed generation renewable energy sources—such as solar
2
-- and energy efficiency improvements that are affixed to residential, commercial,
industrial, or other real property (collectively known as "Energy Improvements").
To make Energy Improvements more affordable and to promote their installation, AB
811 provides procedures for authorizing voluntary assessments to finance the cost of
these improvements. The Energy Independence Program works with the free and willing
consent of owners of the property on which the Energy Improvements are to be made.
The City will make loans ("EIP Loans")to property owners within the City to finance the
installation of Energy Improvements pursuant to contractual assessment agreements.
Property owners in the City will repay EIP Loans through an assessment levied against
their property which is payable in semi-annual installments on property t�bills.
Prostram Benefits
From the Cit,�perspective, the Energy Independence Program will be a key element in
achieving the City's 30% energy reduction goals. EIP provides a significant channel for
funneling more resources into the shift to greater efficiency and renewable energy, while
securing the energy future. For example, $25 million of energy efficiency and renewable
energy investments has the potential to provide over$50 million in direct consumer
benefits over time while contributing to regional, state, national and international goals.
For property owners, EIP offers:
■ A no-money-down means of financing Energy Improvements.
■ Fixed-rate loans.
■ Financing without requiring a property appraisal.
■ A stream-lined loan process.
Proqram Administration
EIP will be administered by the City's Office of Energy Management("OEM"), which is
headed by the Director of the Office of Energy Management (the "Director") and staffed
by EIP professionals. EIP staff will be responsible for:
■ Community outreach
■ Energy surveys
■ Solar site checks
■ Advising property owners
■ Processing loan applications
■ Managing and tracking funds available for EIP Loans
■ Monitoring individual and collective energy conservation
■ Integrating EIP with Palm Desert's successful Set to Save rebate program.
The intent of these services is to provide a"turn-key" service for Palm Desert property
owners who would otherwise be unable or unwilling to finance efficiency measures and
renewable energy options. Their participation is critical to the City in achieving its 30%
3
energy reduction goals and for the State to meet its greenhouse gas commitments to
reduce carbon emissions to 1990 levels by 2020.
Program Requirements
Elis�ible Pronertv Owners
All owners of improved real property are eligible for the Energy Independence Program.
Owners may be individuals, associations, business entities, cooperatives, and virtually
any owner which pays real property taxes.
A property owner needs to be current in the payment of property t�es and the property
must be free and clear of all liens. Property owners are eligible to make multiple
applications for additional Energy Improvements with the maximum aggregate of these
applications not to exceed $100,000.
Elis�ible Properties
EIP Loans are available to all owners of improved real properties in the City including,
but not limited to, residential, commercial, and industrial properties. Unfortunately at this
time, EIP Loans are not available for properties that do not pay property taxes, such as
governmental entities and certain non-profit corporations.
Consent Aqreement
All EIP loans $30,000 or more shall have a Consent Agreement signed by the lending
agency authorizing the placement of the Notice of Assessment on the property.
Elis�ible Equipment
EIP affords property owners in Palm Desert the opportunity to take advantage of a wide
range of energy-savings measures, consistent with the following provisions:
1. EIP provides financing for Energy Improvements that are permanently affixed to
property.
2. EIP Loans are specifically made available for Energy Improvements. Property
owners that elect to engage in broader retrofit projects—such as home or business
remodeling—will only be provided EIP Loans for that portion of the costs used to
retrofit existing structures with Energy Improvements. (This is discussed further
in Eligible Costs.)
3. EIP Loans are intended for retrofit activities to replace outdated equipment and to
install new equipment that takes energy off the grid. However, EIP Loans are
also made available for purchasers of new homes and businesses that wish to add
Energy Improvements after the property owner takes title to the property.
4
4. EIP Loans are made available for the following types of improvements that are
presented in greater detail in Appendix A:
a. Efficiency Measures. EIP sup�orts a wide range of efficiency measures as
presented in Appendix A. EIP also supports Energ�provements that are
eligible for Set to Save program rebates.
b. Solar S. st�. EIP Loans will be available for a range of solar systems,
from photovoltaic to solar thermal.
c. Custom Measures. Upon review and approval by the Office of Energy
Management, EIP Loans are made available for emerging technologies for
Energy Improvements that provide new ways to save or generate energy
and that will be evaluated on a case-by-case basis.
5. EIP is flexible and provides three "Tracks" for participation that focus on
Efficiency Measures, Solar Systems, and Custom Measures. See "Tracks for
Participation" below for more information.
6. EIP Loans are also made available for combinations of Energy Improvements
such as bundling energy efficiency and renewable energy measures. For instance,
a property owner may choose to replace both an aging and inefficient air
conditioner and install a solar system.
Elis�ible Costs
Eligible costs of the Energy Improvements include the cost of equipment and installation.
Installation costs may include, but are not limited to, labor, drafting, engineering, permit
fees, and inspection charges.
The installation of Energy Improvements can be completed by a qualified contractor of
the property owner's choice. Eligible costs do not include labor costs for property
owners that elect to do the work themselves.
In each case,the Office of Energy Management will determine whether the estimated
equipment and installation costs are reasonable. The OEM will evaluate market
conditions and may require additional bids to determine whether costs are reasonable.
While the property owner will be able to select the bidder of his or her choice, the amount
available for the EIP Loan may be limited to an amount deemed reasonable by the OEM,
and may be reviewed by the City Manager and the Palm Desert City Council.
Tracks for Participation
There are three ways for property owners to participate in the Program. Eligible
equipment and standards are presented in greater detail in Appendix A:
5
The Efficiencv Track
The Efficiency Track covers a wide range of energy efficiency fixtures, from windows
and doors, attic insulation that are Energy Star rated. Packaged and central air
conditioning systems must meet the minimum efficiencies specified in the Set to Save
program. Given Palm Desert's preponderance of pools, specific efficiency requirements
are presented for pool pumps and heaters. All other efficiency measures must go through
the Custom Measure Track. .
The Solar Svstem Track
The Solar System Track makes available Energy Independence Program loans for Energy
Improvements. The Solar Track also helps property owners with solar electric and solar
thermal investments by offering optional, no-cost solar site checks and consultation by
EIP experts.
Custom Measure Track
All other proposed measures follow the Custom Measure Track. These measures may
include renewable energy sources (other than solar), such as wind, geothermal, and
potentially solar-hydrogen fuel cells, as well as more complex and innovative energy
management solutions and emerging technologies. The developments of technologies are
encouraged by EIP as a means of diversifying the City's energy sources.
Applicants for the Custom Measure Track should consult the OEM to determine
eligibility. In some cases, the findings of national energy laboratories and nationally
accredited research and testing centers will be required for EIP approval. In all cases, the
City reserves the right to decline funding of a custom measure.
Energy Surveys and Solar Site Checks
The Office of Energy Management offers energy surveys at owners' properties. During
these on-site surveys, a trained Program expert will review as appropriate, energy
efficiency, energy management, and renewable energy opportunities and EIP financial
details with the property owner. The property owner will then be advised as to the
potential Energy Improvements, their estimated costs and savings through EIP
participation.
Energy surveys are highly recommended but not required.
The Financial Strategy
The City will create the Energy Independence Program Fund which may accept funds
from any available source and which may disburse such funds for the purpose of funding
Energy Improvements. Loan repayments—through the property assessment mechanism
—will be made to the Energy Loan Fund.
6
The City initially will seed the Energy Loan Fund with$2.5 million from the General
Fund. Thereafter,the Energy Loan Fund may be funded from a number of other potential
sources, and combinations of sources, which may include but are not limited to additional
funding from the General Fund,the issuance of notes, bonds, ar agreements with utilities
or public or private lenders or other governmental entities and quasi-governmental
entities such as CALPERS.
EIP Funds will then be used by the City for additional EIP Loans and/or to establish a
Reserve Fund or pay administrative costs and/or to reimburse itself for advancing moneys
from the General Fund to the EIP Fund.
At a minimum, $1.25 million of the $2.5 million loan amount will be reserved for EIP
Loans for residential property owners. The Office of Energy Management will report on
penetration to the City Manager and Council on a quarterly basis at a minimum,
providing Council with the information necessary to shift funds as it elects to do so at its
sole discretion.
The City may also establish an EIP Reserve Fund if bonds are issued to cover EIP Loan
payments in the event of assessment delinquencies prior to foreclosure and t� sale if
deemed necessary by the City Manager and the City Council.
Energy Independence Program Parameters
Minimum Eners�v Loan Amount
The minimum size for an EIP Loan is $5,000.
Maximum Eners�v Loan Amount
The maximum size for an EIP Loan is $100,000. All EIP Loans greater than $60,000
must be approved by the City Manager.
Maximum Portfolio
The maximum principal amount of the Energy Loans to property owners under the
Program is $25 million. This may be increased by the City Council at its discretion. A
minimum of 50%of the loan funds available shall be set aside and used only for energy
efficiency upgrades and retrofits, as determined by the Office of Energy Management.
Duration
EIP Loans are made available for up to 20-year terms to accommodate a wide range of
efficiency measures and renewable energy investments. The term of the loan is in the
discretion of the property owner in consultation with the Office of Energy Management.
7
Interest Rate
EIP Loans will be made for the initial $2.5 million an annual interest rate not to exceed
7% for all loans. Thereafter,the City Council will maintain the discretion to adjust the
interest rate up to an amount not to exceed 10%. The Council will determine interest rates
so that the Energy Loan Fund remains financially viable up to the legal limit.
The City will set the interest rate for an EIP Loan at the time that the City and property
owner enter into the contractual assessment agreement.
Administrative Fees
The City of Palm Desert will offer the Energy Independence Program as an additional
City service that will help property owners achieve their energy goals, while helping the
City achieve its energy and climate protection goals. The City of Palm Desert will be
responsible for all EIP marketing and outreach, as well as the duties of the Office of
Energy Management.
The City may elect to cover a portion of its costs through the "spread"between its
combined earnings rate, and the EIP Loan issuance rate. Similarly, it may elect to recover
EIP costs through a spread between bond rates and loan rates, or the spread between
interest rates of any financial vehicle. The City will not charge property owners a fixed
administrative fee.
Two forms of costs will be the responsibility of the property owner:
1. Title costs—including title insurance—will be shared by the property owner and
the City. This cost to the property owner will not exceed $200 per EIP Loan
2. Assessment collection costs will appear as a line item on property taxes not to
exceed $40 per property per year—and will be paid by property owners. This cost
was determined after consultation with the County of Riverside Assessor's Office.
Changes to Report
The Director or City Manager may make changes to this Report that the Director or City
Manager reasonably determines are necessary to clarify its provisions. Any changes to
this Report that materially modify the Energy Independence Program shall only be made
after approval by the City Council.
The City Manager or Director may modify from time to time the Equipment List, draft
Loan Contract and draft Application attached hereto as Appendix A, Appendix D and
Appendix C, respectively, as deemed necessary by the City Manager or the Director to
effectuate the purposes of the Program.
8
Appendix A: Equipment List
The Energy Independence Program offers EIP loans for a number of equipment types,
including efficiency measures, solar systems, and other innovative, energy-saving custom
measures. In each case, the use of rebates and tax credits to prepay a portion of the loan
is at the discretion of property owner.
Efficiencv Measures
The Energy Independence Program provides services and loans for a wide range of
Energy Star-rated efficiency measures, including many Set to Save Efficiency Measures
for which property owners can get rebates as well as EIP Loans. Excepting HVAC
equipment as noted below, efficiency measures that are Energy Star rated must meet the
Energy Star minimum efficiency levels.
For all packaged and central air conditioning systems funded in this loan program, the
minimum efficiency levels shall be as required by the current minimum requirements set
forth in Set to Save program.
All other proposed efficiency measures will be considered in the Custom Measure Track.
The City of Palm Desert anticipates that Energy Star requirements will "ratchet up"to
greater efficiency levels over time. Energy Star will also become more inclusive of
technologies over time. Thus the EIP will evolve with Energy Star and the market for
energy-efficient technologies.
The following Energy Star measures—among others—are eligible in the Efficiency
Track.
■ Attic and wall insulation
■ Light fixtures (no bulb-only retrofits)
■ Reflective roofs and coatings
■ Windows, doors, and skylights
Pool Equipment
Given the preponderance of pools in Palm Desert the following prescriptive standards
must be upheld for Efficiency Track funding:
o Pool circulating pumps (must be Variable Flow and/or Multi-speed with
controllers)
o Natural gas pool heaters (must have a thermal efficiency of 84% or
greater)
9
Solar Equipment
Solar Track funding is available for a wide range of solar equipment. EIP Loans will be
available for photovoltaic equipment and installers listed by the California Energy
Commission. Solar thermal equipment must be rated by the Solar Rating Certification
Council (SRCC). As with efficiency measures, the property owner maintains the
discretion as to whether to prepay a portion of the gross loan with any solar rebates and
tax credits.
Eligible solar equipment includes:
■ Solar thermal systems (hot water)
■ Photovoltaic systems (electricity)
o Battery back-up systems will be allowed
o Funding for off-grid systems will be allowed
o PV systems can be sized to accommodate plug-in electric vehicles
Custom Measures
The City of Palm Desert encourages innovation in saving energy to meet its energy-
savings goals. Custom Measures will only be funded for EIP Loans if sufficient proof of
energy savings is provided to the Office of Energy Management that the measure will
reduce usage by 20%. The Director reserves the right to defer funding until he deems the
evidence sufficient to verify this perfortnance requirement.
The following types of ineasures—among others—will be considered for EIP Loans
through the Custom Measure Track:
■ Building Energy Management controls
■ HVAC Duct zoning control systems
■ Irrigation pumps and controls
■ Lighting controls
■ Motors and controls
■ Natural gas fuel cells
■ Water heating equipment
o Tank-style
o Tankless
o Central water heating system
As these "Custom Measures"become Energy Star rated they will be included in the
Efficiency Measure Track.
10
RECORDING REQUESTED BY:
City of Palm Desert
PREPARED BY AND WHEN
RECORDED MAIL TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn.: Benjamin Druyon
A.P.N:
File No:
CONSENT AGREEMENT
THIS AGREEMENT is made this day of , 2009, by
and between , a ("Owner") and
, a (`Beneficiary"), and for the benefit of the CITY
OF PALM DESERT, a municipal corporation ("Lender").
WITNESSETH
WHEREAS, Owner has executed a deed of trust dated , to Beneficiary, as
trustee and beneficiary thereunder, covering that certain real property described in Exhibit A
attached hereto ("Property"), to secure a promissory note in the sum of$ , and
recorded on as Instrument No. in the Official Records of
Riverside County ("Deed of Trust"); and
WHEREAS, Owner has executed, or is about to execute, a loan agreement with the Lender
("Loan Agreement")by which the Lender will make a loan to the Owner in a principal amount
not to exceed $ ("Loan") to finance the purchase and installation of a
certain renewable energy system on the Property in connection with the Lender's Energy
Independence Program, and such Loan will be payable with interest and upon the terms and
conditions described in the Loan Agreement; and
WHEREAS, pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code, the repayment by the Owner of the principal and interest on the L.oan will be
paid by a statutory assessment levied against the Property (the "AssessmenY') notice of which
shall be recorded against the Property in the Official Records of Riverside County, and which
Assessment, together with the interest thereon and any penalties, shall constitute a lien (the
"Lien") on the Property, and which Assessment shall be collected in installments on the property
tax bill pertaining to the Property, and shall be subject to the same penalties, remedies and lien
priorities as for real property taxes in the event of non-payment by the Owner; and
P6401-0001\1116812v2.d o c
WHEREAS, Lender is willing to make the Loan provided that the Beneficiary consents to the
Loan, the levy of the Assessment against the Property, the imposition of the Lien upon the
Property, and the recordation of the notice of Assessment in the Official Records of Riverside
County and acknowledges that the Lien shall be prior and superior to the lien or charge of the
Deed of Trust.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and
other valuable consideration, the receipt and sufficiency of which consideration is hereby
acknowledged, and in order to induce Lender to make the Loan, it is hereby dedared, understood
and agreed as follows:
1) That the Lien shall unconditionally be and remain at all times a lien on the
Property prior and superior to the lien or charge of the Deed of Trust.
2) That L,ender would not make the Loan without this Agreement.
Beneficiary declares, agrees and acknowledges that:
1. Beneficiary consents to and approves (a) all provisions of the Loan Agreement,
including but not limited to those pertaining to the disbursement of the proceeds of the I,oan, and
the Owner's execution of the Loan Agreement, and (b) the levy of the Assessment against the
Property, the imposition of the Lien upon the Property and the recordation of the notice of
Assessment in the Official Records of Riverside County with the effect as to its nature and
priority hereinabove described, and Beneficiary hereby confirms that the Owner's execution of
the Loan Agreement will not constitute a default under the Deed of Trust.
2. Lender in making disbursements pursuant to the Loan Agreement is under no
obligation or duty to Beneficiary, and Lender shall have no responsibiliry to see to the
application of the proceeds of the Loan by the Owner, or to such other person or persons to
whom Lender disburses such proceeds.
3. Beneficiary understands that in reliance upon, and in consideration of, this
consent, approval and confirmation, the Loan will be made by the Lender to the Owner and, as
part and parcel thereof, specific monetary and other obligations are being and will be entered into
which would not be made or entered into by the Lender or Owner but for and in reliance upon
this consent, approval and confirmation by Beneficiary.
The Beneficiary and Owner agree that:
A. This Agreement shall be binding on and inure to the benefit of the legal
representatives, heirs, successors and assigns of the parties hereto.
B. This Agreement shall be governed by and construed in accordance with the laws
of the State of California.
C. This Agreement may be signed by different parties hereto in counterparts with the
same effect as if the signatures to each counterpart were upon a single instrument, and all
counterparts shall be deemed an original of this Agreement.
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D. Each of the parties hereto shall, whenever and as often as they reasonably shall be
requested to do so by the other party, execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, any and all such further instruments and documents as may be
reasonably necessary to carry out the intent and purpose of this Agreement, and to do any and all
further acts reasonably necessary to carry out the intent and purpose of this Agreement.
E. In the event any legal action is commenced by any party hereto concerning this
Agreement or the rights and duties hereunder of any party hereto, whether such action be an
action for damages, or for equitable or declaratory relief, the prevailing party in such litigation
shall be entitled to, in addition to all other relief as may be granted by the court, reasonable sums
as and for attorneys' fees in an amount to be set by the court.
F. Each person or entity executing this Agreement on behalf of a party hereto
represents and warrants that such person or entity is duly and validly authorized to do so on
behalf of such party with full right and authority to execute this Agreement and to bind such
party with respect to all of its obligations hereunder.
BENEFICIARY:
�
a,
By:
Name:
Title
By:
Name:
Title
OWNER:
,
a
By:
Name:
Title
By:
Name:
Title
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P6401-0001�l l 16812v2.doc