SCARBOROUGH – The Scarborough Town Council recently approved the

town’s participation in the Property Assessed Clean Energy (PACE)

Act program, a program facilitated by Efficiency Maine to help

residents conduct weatherization upgrades at their homes. South

Portland and Cape Elizabeth may soon follow suit.

SCARBOROUGH – The Scarborough Town Council recently approved the town’s participation in the Property Assessed Clean Energy (PACE) Act program, a program facilitated by Efficiency Maine to help residents conduct weatherization upgrades at their homes.

A public hearing will be held on the subject at the Oct. 6 Scarborough Town Council meeting.

Other towns could soon follow Scarborough’s lead.

The Cape Elizabeth Town Council has decided to pass the topic on to the Ordinance Committee, which has been provided with a copy of a model ordinance by the state from Town Manager Mike McGovern. The committee is expected to make a recommendation to the council soon.

The South Portland City Council is also expected to decide whether or not to adopt the ordinance, after discussing it briefly at their Sept. 20 meeting. The council voted unanimously to act on the ordinance at its Oct. 4 meeting.

At the Sept. 20 meeting, Councilor Tom Blake called it an “excellent ordinance” and one that goes along with the city’s desire to be a clean and sustainable community.

Get efficient

Debbie Atwood, a representative from the Maine Green Energy Alliance, a subgroup of Efficiency Maine, an organization established to strengthen energy conservation in the state, said the PACE program was made possible through a $30 million federal stimulus grant from the U.S. Department of Energy. The bulk of that grant – $20 million – has been set aside for the program.

Through the program homeowners are eligible for up to $15,000 from a revolving loan fund to do a variety of home energy improvements, including insulation, air sealing and heating system upgrades, among other improvements. Interest rates are likely to be between 5 and 7 percent.

There are no income restrictions to participate in the program. Eligible homeowners are required to be up to date on their property taxes and sewer charges, have no outstanding tax or sewer liens and not be subject to a reverse mortgage or a notice of delinquency or foreclosure.

Efficiency Maine Executive Director Michael Stoddard said 30 percent of the loan is given to the homeowners before the work is done to help get the work started. The balance of the loan is given upon completion of the work. He said this gives Efficiency Maine some assurance that the work was done correctly and is indeed energy efficient.

“It helps the individual homeowners by reducing energy costs. Investing in cost-effective energy upgrades, including insulation, air sealing, upgraded heating systems, will save money on heating and energy costs,” he said. “The homeowner will then have more money in their pocket or bank account. Macroeconomic studies have shown when residents of Maine avoid spending money on imported heating fuels they have more money to spend on local goods and services.”

In order to access the funding, Atwood said, an individual is required to get an energy audit from an approved energy auditor, typically at a cost of $400-$500, though that may be reduced through the program. Efficiency Maine has a list of approved auditors on its website, efficiencymaine.com.

“The energy auditor is really where this program hinges because it is the energy auditor makes the recommendations,” Atwood said.

“The audit,” Stoddard said, “will include a report about what steps are appropriate for the home. It is also important from a quality control approach so we can make sure the homeowners are getting quality energy improvements in their homes.”

Once homeowners have a set of recommendations in hand, they can choose which ones to follow. The one exception is additional insulation, which must be installed under the program if it is recommended and a loan is accepted.

The homeowner can hire any contractor to do the work. The auditor is required to return to the home to test the energy efficiency of the home after the improvements are made.

There is no financial liability to the town, said Scarborough Town Councilor Judy Roy. In fact, the only obligation on the part of the town is to institute an education/outreach effort to promote the availability of the funds. According to Roy, Maine Green Energy Alliance is working with PACE officials to help communities adopt such an educational effort.

The educational element, she said, reaches farther than simply the PACE program and is designed to educate residents about home energy savings opportunities in general.

Scarborough Town Manager Tom Hall said as part of the effort, people will be knocking on doors to inform the public about the program.

If ultimately passed in South Portland, Assistant City Manager Erik Carson said he and the energy sustainability coordinator, Ann Archino Howe, will push the educational outreach effort in that community.

Time to act

Scarborough Town Council Chairwoman Carol Rancourt has seen the benefits of home energy improvements firsthand.

“I think this is a wonderful idea. I participated in my own energy audit program through Maine State Housing two years ago,” she said. Through the improvements, Rancourt said, she was able to properly insulate her home and switch over to natural gas.

“Using this type of program can be helpful in both reducing your carbon footprint and making your life more comfortable,” she said.

The program is designed to be a long-term program because as homeowners pay back the loan, the fund will be replenished to keep the program going. The loan is tied to the house, not its owner, so if the house is sold, the loan is transferred from the seller to buyer.

The establishment of the program is part of a larger initiative in Maine to become a leader in green and alternative energy practices. By the year 2030, the state aims to reduce liquid fossil fuel consumption by at least 30 percent, while weatherizing 100 percent of residences and 50 percent of businesses.

As towns and cities begin discussing adopting the ordinance for their respective communities, Stoddard said Efficiency Maine continues to iron out the details of the program. That includes finalizing the loans interest rates and the length of the loan period.

When all that is finalized, Stoddard said, it is a great time for homeowners to take advantage of the opportunity to make their home more efficient. There is currently a $1,500 federal tax credit for home energy improvements, but that is scheduled to run out at the end of the year.

“People who think they are ready to do a home energy improvement project should act now,” Stoddard said. “There has never been a better time to get both the rebate, the tax credit and the PACE funding.”