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By Jeffrey P. Aboussie
Missourians spend about $15 billion a year on home energy use, but there’s growing evidence that residential clean energy improvements not only help lower utility bills but also lead to a range of benefits for households, the community and the nation as a whole. Encouraging homeowners to go solar or install energy-efficient windows is a no-brainer for policy makers who are looking to build an economically and environmentally bright future for generations to come.
The state of Missouri has a new initiative in place called Property Assessed Clean Energy that is primed to help homeowners use less energy, lower utility bills, make their homes safer and more comfortable, reduce emissions that cause climate change, and create local investment in a clean energy economy, including new construction-related jobs.
But you can’t benefit if you don’t take part. PACE is only available in cities that join the Missouri Clean Energy District, a governmental subdivision created to meet these public policy objectives. That’s where St. Louis come in.
PACE started in California, where it has been in place since 2008. The concept is simple: Homeowners who want to increase their home’s efficiency can pay for home improvements rated to save energy over time through their property taxes. The improvements can be repaid over 20 years, depending on the useful life of the products installed. Homeowners can take advantage of PACE financing with no money down. And, because the financing is for a fixed asset that stays with the home, payments may be transferable to the new owner when the property is sold — unlike any other form of financing.
Since PACE was first launched, the program has been a huge success in hundreds of communities around California. The PACE program most responsible for that success is Renovate America’s HERO Program, which the Missouri Clean Energy District chose to provide PACE financing in Missouri. In just over four years, HERO has financed $1.71 billion in clean energy improvements across more than 70,000 California homes — creating 14,500 quality local jobs and pumping $2.95 billion in economic stimulus into communities up and down the state. And these benefits came at no cost to taxpayers, because the financing is backed by private institutional investors like pensions and insurance companies that buy green bonds.
If all counties and cities in Missouri had access to the HERO Program, it would stimulate the creation of 6,000 new family-wage jobs across the state over the next five years. These jobs would be the result of improvements made by 35,000-40,000 homeowners and lead to a total economic impact of $1 billion in our state.
More than 60 Missouri municipalities have voted to make PACE available to their residents, including Kansas City, Springfield and Jefferson City. Working families in St. Louis are looking to the city and county to pass a similar ordinance so that they, too, can take advantage of this innovative program to install anything from solar panels to a cool roof and more efficient windows and doors … or insulation, ductwork and air conditioning.
A strong city is built with a good, growing and sustainable job market. This means we need to invest in the upfront costs that drive that efficiency. Both of these ideals have the men and women of the skilled trades at their core.
The Building and Construction Trades are committed to helping to make the greater St. Louis region more prosperous for workers and all residents with an eye toward an environmentally responsible future. Now is the time for the St. Louis County Council and the St. Louis Board of Aldermen to join the Missouri Clean Energy District and take an important step toward fueling opportunities for union and minority-owned firms to be part of the clean energy revolution.
Jeffrey P. Aboussie is the executive secretary-treasurer of the St. Louis Building Trades Unions.