HomeMy WebLinkAbout6730RESOLUTION NO. 6730
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, CONSENTING TO INCLUSION OF THE PROPERTIES
WITHIN THE INCORPORATED AREA OF THE CITY OF ARCADIA IN
THE LOS ANGELES COUNTY ENERGY PROGRAM ( "LACEP ") AND
APPROVING THE REPORT THAT SETS FORTH THE PARAMETERS
OF THAT PROGRAM AND CERTAIN RELATED MATTERS
WHEREAS, Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code (the "Act ") authorizes cities and counties to assist free and willing
property owners in financing the installation of distributed generation renewable energy
sources and energy and water efficiency improvements (the "Improvements ") that are
permanently fixed to residential, commercial, industrial or other real property through a
contractual assessment program; and
WHEREAS, the Board of Supervisors (the "Board of Supervisors ") of the County
of Los Angeles, a political subdivision of the State of California (the "County "), has
established a contractual assessment program named the Los Angeles County Energy
Program ( "LACEP ") pursuant to the Act; and
WHEREAS, the parameters of LACEP are set forth in the Report attached hereto
as Exhibit A (the "Report") and such Report has been prepared by the Director of the
Internal Services Department of the County, as Program Administrator (the "Program
Administrator "), pursuant to Section 5898.22 of the Act and approved by the Board of
Supervisors; and
WHEREAS, the Act authorizes the County to enter into contractual assessments
with property owners located within incorporated cities only subsequent to the approval
of the legislative body of the related city to participate in LACEP; and
WHEREAS, the City of Arcadia desires to participate with the County in LACEP,
under terms and conditions agreed to by the City of Arcadia and the County, and
provide for participation in LACEP by property owners located within City limits; and
WHEREAS, this Council of the City of Arcadia (this "City Council ") has reviewed
the Report.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1. The recitals set forth hereinabove are true and correct in all respects.
Section 2. The City Council finds and declares that properties in the City's
incorporated area will be benefited by participation in LACEP.
Section 3. This City Council ratifies the resolution adopted by the Board of
Supervisors on April 6, 2010 declaring the Board of Supervisors' intention to order the
implementation of a contractual assessment program to finance Improvements pursuant
to the Act.
Section 4. This City Council hereby approves the Report substantially in the
form attached hereto as Exhibit "A" and finds and determines that changes to the
parameters of LACEP that are not material in nature do not require the approval of this
Council.
Section 5. This City Council hereby approves the inclusion in LACEP of all of
the properties in the incorporated area within the City, as same may be amended
through annexation from time to time, the acquisition, construction and installation within
City limits of the Improvements set forth in the Report upon the request and agreement
of the affected property owner, and the assumption of jurisdiction thereover by the
County for the aforesaid purposes. The adoption of this Resolution by this City Council
constitutes the approval by the City of Arcadia to participate in the LACEP. This City
Council further authorizes the County to set the terms of and implement LACEP and to
take each and every action necessary or desirable for financing the Improvements,
including the levying, collecting and enforcement of the contractual assessments to
finance the Improvements and the issuance of bonds secured by such contractual
assessments.
Section 6. The City Clerk is directed to file a certified copy of this Resolution
with the Los Angeles County Office of Sustainability, located at 1100 North Eastern
Avenue, Los Angeles, California 90063.
Section 7. City staff is authorized and directed to coordinate with the County,
including the Program Administrator and County staff, to facilitate operation of LACEP.
City staff is also authorized and directed to do all acts and things which may be required
by this Resolution, or which may be necessary or desirable in carrying out LACEP as
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described in the Report, as may be amended from time to time, and approved by this
Resolution, and all matters incidental thereto.
Section 8. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this 20th day of July , 2010.
ATTEST:
APPROVED AS TO FORM:
C)6 i. 6-be
Stephen P. Deitsch
City Attorney
3
Mayor of the City of Arcadia
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF ARCADIA )
I, JAMES H. BARROWS, City Clerk of the City of Arcadia, hereby certifies
that the foregoing Resolution No. 6730 was passed and adopted by the City Council
of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a
regular meeting of said Council held on the 20th day of July, 2010 and that said
Resolution was adopted by the following vote, to wit:
AYES: Council Member Harbicht, Kovacic, Segal and Amundson,
NOES: None
ABSENT: Council Member Chandler
4
ity Clerk of the City of Arcadia
Los Angeles County
Energy Program
(LACEP)
PROGRAM REPORT
EXHIBIT A 6730
Table of Contents
Los Angeles County Energy Program
Program Report
I. INTRODUCTION 1
Background 1
Program Benefits 2
Program Administration 3
Program Duration 3
II. PROGRAM REQUIREMENTS 3
Geographic Parameters and Participating City Requirements 3
Eligible Owners and Properties 4
Eligible Improvements 5
Eligible Costs 5
III. PROGRAM FINANCING 5
Strategy to Raise Capital 5
The Energy Fund 6
Maximum Aggregate Contractual Assessment 6
Administrative Costs /Application Fee 6
Maximum Disbursement Amounts 7
Single and Multiple Disbursements 7
Assessment Interest Rate 7
Annual Administrative Assessment; Consultation with County Auditor - Controller 7
Assessment Term 7
Assessment Collection and Default 7
Rebates and Incentives 8
Financing Process 8
Priority of Funding 9
Property Owner Financial Responsibilities 9
IV. CHANGES TO THE PROGRAM REPORT 9
Appendix A: Area Map
Appendix B: Eligible Improvements
Appendix C: Draft Assessment Contract - omitted to save paper
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L INTRODUCTION
Los Angeles County Energy Program
Program Report
The Los Angeles County Energy Program ( "LACEP" or "Program ") is intended to help property owners
make capital investments in distributed generation renewable energy sources and energy efficiency and
water efficiency improvements (collectively known as "Improvements ") that will provide long -term benefits
and reduced energy bills. The Program will provide a financing mechanism for the Improvements through
an assessment contract (the "Assessment Contract ") between the County of Los Angeles (the "County ")
and the property owner, pursuant to which the County will disburse a specified amount to the property
owner. The property owner will pay contractual assessments levied against the property through annual
installments on the property tax bill. If the owner sells the subject property prior to full repayment of the
assessment, the repayment obligation remains a lien on the subject property. The County intends to
finance the Program in part by issuing (or causing to be issued) bonds payable from contractual
assessment revenues. Participation in the Program is completely voluntary and property taxes for non-
participating property owners are unaffected by the Program.
This Program Report ( "Report") is prepared pursuant to Section 5898.22 of Chapter 29 of the California
Streets and Highways Code ( "Chapter 29 ") in connection the establishment of LACEP. It includes the
following:
1) A map showing the boundaries of the Program - the territory within which contractual
assessments are proposed to be offered. See Appendix A attached hereto.
2) A draft Assessment Contract specifying the terms and conditions that would be
applicable to the property owner and the County. See Appendix C attached hereto.
3) A statement of County policies concerning voluntary contractual assessments, including
all of the following:
• Identification of the types of facilities, distributed generation renewable energy
sources, or energy or water efficiency improvements that may be financed
through the use of contractual assessments.
• Identification of one or more County officials authorized to enter into voluntary
contractual assessments on behalf of the County.
• A maximum aggregate dollar amount of voluntary contractual assessments.
4) A method for establishing priority order among the requests from property owners for
financing through LACEP.
5) A financing plan for raising capital.
6) A report on the results of consultations with the County Auditor - Controller concerning the
additional fees, if any, that will be charged for incorporating the proposed voluntary
contractual assessments into the general taxes of the County on real property, and a plan
for financing the payment of those fees.
Background
Widespread implementation of distributed generation renewable energy sources and energy efficiency
and water efficiency measures in existing buildings within the County will help the State of California
( "State ") reach the greenhouse gas reduction goals set forth under State Assembly Bill 32 ( "AB 32 ") and
help the County and surrounding cities achieve their own targeted reductions. Participating property
owners can help to achieve greenhouse gas reductions, reduce water and energy use, and save money
by investing in these measures.
Chapter 29 authorizes various public agencies, including counties and cities, to designate areas within
which free and willing property owners can enter into contractual assessments to finance the installation
of Improvements that are permanently fixed to residential, commercial, industrial, agriculture or other real
property. LACEP is the voluntary contractual assessment program developed by the County pursuant to
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Chapter 29. Any assessments and liens under LACEP are levied only with the consent of free and willing
owners of the property on which Improvements are to be made. The Program will provide financing for
qualifying property owners within the County to install Improvements pursuant to the terms and conditions
of the Assessment Contracts. Property owners will pay contractual assessments levied against their
property in installments on their property tax bills. Each contractual assessment is tied directly to the
applicable property and any unpaid amount at sale or other disposition of the property will remain on the
property and become the responsibility of the subsequent owner.
Program Benefits
Los Angeles County Energy Program
Program Report
LACEP is intended to provide multiple benefits, including the potential for reduced utility bills for
participating property owners. LACEP also offers a means of financing Improvements with a lower equity
contribution than may be required in a conventional financing and establishes a loan obligation that is
attached to the property and not to the individual borrower. The financing is intended to be competitive
with conventional fixed -rate loans and provide for a streamlined financing and repayment process. All
available State, utility or other energy efficiency, water efficiency or renewable energy rebates, incentives
and all State and federal tax credits remain available to the property owner in connection with the
Improvements (subject to applicable rules, restrictions, regulations and the current status of programs
administered by other such entities), unless otherwise specified.
Incorporated cities may participate in LACEP without incurring the costs of forming separate programs
because LACEP's geographical boundary is coterminous with the County's boundaries and includes,
subject to such cities' approval of participation in LACEP, all 88 incorporated cities. Having a single
program available to all residents of the County is anticipated to increase participation by eliminating
confusion for residents in finding the appropriate program. Cities may join LACEP by adopting a
resolution allowing property owners in their respective jurisdictions to apply for financing and implement
Improvements under LACEP.
The Program seeks to mitigate long -term regional greenhouse gas production through the reduction of
energy usage from traditional utility sources and help the County and participating cities satisfy the
State's greenhouse gas reduction goals under AB 32. When it was signed into law in 2006, AB 32
established statewide goals for the reduction of greenhouse gas emissions and may yet require counties
and cities to adopt regional greenhouse gas emission limits similar to the statewide target of achieving
1990 levels of greenhouse gas emissions by 2020. To the extent permitted by law, the County will hold
and retain any carbon credits, offsets, carbon cap allocations, or other benefits attributable to the
Improvements financed by LACEP. It is the intention of the County to apply any benefits resulting from
such carbon credits to the furtherance of LACEP.
LACEP has the potential to provide a significant industry shift in the region towards an energy efficiency,
water efficiency and renewable energy economy. LACEP aims to be a catalyst in spurring a new "green"
economy in the County by supporting energy project inspection and installation jobs, job training and
workforce development, local manufacturing and distribution, research and development, and marketing
and outreach.
For the first few years of the Program, American Recovery and Reinvestment Act ( "ARRA ") grants will be
used to partially fund LACEP. By the end of the ARRA funding term in 2012, LACEP seeks to achieve
the following goals:
1. Retrofit 15,000 single - family homes with a 20% average energy reduction.
2. Create 1,600 home energy retrofit jobs and 1,000 ancillary jobs.
3. Reduce annual purchased energy consumption in retrofitted homes by an aggregate 150 billion
British Thermal Units and $2 million in utility charges per year.
4. Reduce the County's annual greenhouse gas emissions attributable to energy consumption in its
existing housing stock by 20,000 tons of carbon dioxide.
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The benefits to both the regional economy and the environment are expected to increase once individual
cities join LACEP, as the above forecasts are quantified solely for unincorporated areas of the County.
Program Administration
The Program will be governed by the Board of Supervisors of the County of Los Angeles, which will
approve the Program parameters, approve the issuance of bonds, and delegate authority to authorized
officers to administer the Program.
The Director of the County's Internal Services Department will serve as the Program Administrator and
will provide day -to -day management of the Program, including design, implementation, and
administration. The authority to approve and enter into individual Assessment Contracts will be delegated
by the Board of Supervisors to the Program Administrator.
The County Office of Sustainability ( "COS "), within the Internal Services Department, and the Program
Administrator will manage all Program activities, including, but not limited to, the following:
• Marketing and community outreach;
• Energy surveys and technical support for individual projects;
■ Customer service, including question and answer support to interested Program participants;
• Assisting in project development;
■ Processing Program applications;
• Managing and tracking funds available for financing Improvements;
• Managing and tracking progress of the Improvements and financing therefor;
• Tracking individual and collective energy and greenhouse gas benefits;
• Integrating LACEP with other County, State, utility and regional rebate /incentive programs;
• Working and coordinating with participating cities and other jurisdictions;
• Providing information on local and regional environmental programs; and
• Reporting progress and expenditures according to mandated reporting methods applicable to
appropriated funds, including amounts received pursuant to ARRA.
These activities are intended to provide quality Program design, administration and implementation for
qualifying property owners who may otherwise be unable to finance and install the Improvements.
Program Duration
Los Angeles County Energy Program
Program Report
Unless otherwise directed by the Board of Supervisors, the Program will continue as long as there is
sufficient demand and funding for the Improvements.
II. PROGRAM REQUIREMENTS
Geographic Parameters and Participating City Requirements
LACEP is available in the unincorporated areas of the County immediately upon establishment of the
Program by the Board of Supervisors. Cities within the County may join LACEP and make assessment
financing available to qualifying property owners located within their city's boundaries. Anytime after the
County's establishment of the Program, a city's legislative body may adopt a resolution requesting
inclusion in the County Program. Pursuant to such resolution to participate in the Program, the city will
find and declare that the properties in the city's incorporated area will benefit from participation. Further,
the city's resolution will authorize the County to set the terms of LACEP, implement the Program, and
take action necessary for financing the Improvements.
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Los Angeles County Energy Program
Program Report
Participation in LACEP offers cities and their property owners the following advantages:
• An opportunity to save money through energy and water efficiency improvements;
• The ability to take advantage of substantial financial incentives and rebates from multiple
sources;
• A financing mechanism that establishes an obligation that remains attached to the property; and
• Job creation and stimulation of the economy.
Cities may elect to withdraw from participation in LACEP by adopting a resolution terminating their
involvement. If a participating city elects to withdraw from LACEP, no future assessment financing will be
made in that city, but assessment obligations made previous to the city's termination will remain in effect.
A map showing the Proposed Program boundaries is attached in Appendix A.
Eligible Owners and Properties
All owners of improved real property within participating areas are eligible to submit an application for
LACEP. Qualifying property owners may be individuals, associations, business entities, cooperatives and
any owner who pays real property taxes. At this time, financing through LACEP is not available for
properties that are not subject to property taxes, such as governmental entities and certain non - profit
corporations.
To protect the Program from defaults and to improve access to the capital markets, property owners must
meet the following minimum requirements to qualify for financing:
• Property is located within Los Angeles County, and if within the boundaries of a city, the city has
adopted a resolution to join the Program;
• Applicant is the legal owner of the property;
• All legal owners of the property agree to participate in the Program;
• The property is not subject to involuntary liens as set forth in the Assessment Contract or any
other Program document;
• Property taxes and assessments are current on the property and have not been delinquent for a
period up to 5 years (or since the date of the most recent transfer if less than 5 years);
• Property owner certifies that he /she is not in bankruptcy and the property is not an asset in a
bankruptcy proceeding;
• Property owner certifies that he /she has not declared bankruptcy within the last 10 years;
• Property owner certifies and demonstrates that he /she is current on his /her mortgage, has not
defaulted on the deed(s) of trust and can legally enter into the Program;
• Improvement costs are reasonable to property value. Property must meet a minimum value -to-
lien ratio';
• Property must meet a positive equity test and not exceed a maximum loan- to- value ratio; and
• Property is subject to the appropriate jurisdiction's (County, city, or town) permitting and
inspections and all other applicable federal, State, and local codes and regulations.
Property owners may submit more than one application for funding under the Program if additional
Improvements are desired by the owner. However, all existing criteria must be met at the time of each
new application. Valuation of the property will reflect either the assessed value or the market value as
determined by using established industry approved methodologies. Costs for the scope of work will be
based on contractor estimates, quotes provided by the property owner, and general industry standards.
Additional due diligence or underwriting criteria may be required for the financing of large projects.
Value of the property divided by the amount of the contractual assessment.
2 Aggregate total of all liens secured by real estate mortgages on the property divided by the value of the property.
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III. PROGRAM FINANCING
Los Angeles County Energy Program
Program Report
The Program Administrator may exercise discretion in determining eligibility and any additional criteria
required for financing Improvements. Furthermore, the minimum eligibility requirements provided in this
Report are subject to change pursuant to the future financing needs of the Program.
Eligible Improvements
The Program provides property owners the opportunity to take advantage of a wide range of
Improvements, subject to the following provisions:
• The Program will only finance distributed generation renewable energy sources and energy
efficiency and water efficiency measures that are permanently fixed to the property.
• Property owners who elect to engage in broader retrofit projects (such as residential or
nonresidential remodeling) will only be provided financing for costs associated with Improvements
available under the Program.
• The Program is intended to finance the replacement of working, inefficient equipment and
building materials and the installation of new equipment and building materials that reduce energy
consumption (beyond that required by existing, applicable building codes), produce renewable
energy, or reduce energy in connection with water usage. The Program will also make financing
available for purchasers of residential, commercial or industrial properties who wish to add
Improvements after transfer of title is complete.
• Property owners are responsible for the Improvements installed on their property. Property
owners must address performance and other system - related issues directly with the installer in
accordance with the terms of their contract with the installer. Property owners are responsible for
maintenance and repair of the Improvements.
Examples of Improvements available for financing under LACEP are provided in Appendix B.
Eligible Costs
Eligible costs of the Improvements include the cost of surveys and audits, permits and inspections,
equipment, installation from licensed, approved professionals, and follow -up inspections. Installation
costs may include, but are not limited to, energy audit consultations, labor, design, drafting, engineering,
permit fees, and inspection charges. A qualified contractor of the property owner's choice can be
selected to complete installation of Improvements.
For each property, the Program Administrator will determine whether the estimated equipment and
installation costs are reasonable. The Program Administrator will evaluate market conditions and may
require the property owner to provide additional bids to determine whether costs are reasonable. While
the property owner will be able to choose the contractor of his /her choice, the amount eligible for the
LACEP financing may be limited to the amount deemed reasonable by the Program Administrator.
Projects that exceed a certain size and dollar amount may be subject to additional review.
Strategy to Raise Capital
The County intends to raise capital for the Program through one or more of the following financing
arrangements:
• Issuing or causing the issuance of bonds pursuant to Section 5898.28 of the Streets and
Highways Code, the principal and interest of which will be repaid from contractual assessments;
3 All Improvements that require permits will be required to obtain such a permit from the local jurisdiction. Final inspection will
ensure that the Improvements were completed.
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• Advancement of certain County funds or funds held by the County Treasurer and Tax Collector,
which will be repaid through contractual assessments or reimbursed from proceeds of a debt
issuance;
• Application of funds received pursuant to federal and State programs and available for LACEP
financing purposes;
• Issuing debt or entering into loan arrangements to fund the Improvements; and
• Private or owner - arranged financing.
Los Angeles County Energy Program
Program Report
To the extent that the County issues debt, it is expected to include a debt service reserve fund in the
amount sufficient to enhance the marketability of the debt. The proceeds of the debt issuance will be
applied to cover the costs of Improvements, fund the debt service reserve fund, and pay costs of
issuance of the debt. The County may also pursue other financing options not listed above should such
options benefit the ongoing viability of the Program.
The Enemy Fund
The County will create a special fund, the Energy Fund ( "Fund "), which will hold contractual assessments
revenues received pursuant to the Assessment Contracts. Moneys in the Fund shall be used to make
payments on debt issued by or on behalf of the County, fund certain administrative costs of the Program,
replenish the debt service reserve fund, if required, and repay funds advanced by the County. Amounts
in the Fund may also be used to finance additional Improvements secured by contractual assessments
and any other reasonable activity needed to advance the Program. Payment of the contractual
assessments will be made pursuant to Assessment Contracts between the property owner and the
County.
Maximum Aggregate Contractual Assessment
The County is authorized to enter into up to $1.0 billion in aggregate dollar amount of voluntary
contractual assessments. The County will coordinate the timing and issuance of debt with the goal of
providing the lowest possible interest rate to qualifying property owners and maintaining the long -term
financial viability of the Program.
Administrative Costs /Application Fee
The County will offer the Program as an additional County service that will help property owners achieve
reductions on their energy bills and other environmental goals, while helping the County achieve its own
environmental goals. The County will be responsible for:
• Development and operation of LACEP;
• Acquisition of LACEP financing;
• Overall reporting of Program status and goals, including reports to financing agencies, regulators,
and stakeholders;
• Overall structure and enforcement of Program governance; and
• Management and administration of LACEP consultants needed to perform services under the
Program.
Certain administrative costs are anticipated in connection with the aforementioned responsibilities. All or
a portion of such administrative costs may be financed through the interest component of the contractual
assessment. The Program may also assign direct fees or charges to property owners for certain services
provided during the process of securing an Assessment Contract. The County will recover a portion of
these initial administrative costs through a one -time application fee.
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Maximum Disbursement Amounts
Assessment Interest Rate
The County will set a maximum disbursement amount for individual properties under the Assessment
Contract. Where possible, the actual amount disbursed to a participating property owner pursuant to an
Assessment Contract will equal the actual cost of Improvements. In the event that the final cost of
Improvements exceeds the agreed upon maximum disbursement amount, the property owner will be
solely responsible for the payment of excess costs incurred to complete the Improvements.
Single and Multiple Disbursements
Los Angeles County Energy Program
Program Report
Most disbursements will be delivered to property owners in a single payment upon completion of the
Improvements. However, upon Program Administrator approval, some projects may qualify for multiple
disbursements, which will allow for one or more payments to be made prior to project completion.
The County will set a maximum interest rate for individual properties under the Assessment Contract.
The final interest rate will be determined such that the total amount of contractual assessment payments
(principal and interest) will be sufficient to repay the debt issued to finance the Improvements, pay the
financing costs of such debt issuance, finance a debt service reserve fund with respect to such debt and
fund eligible administrative costs so that the Program remains financially viable. The County Treasurer
and Tax Collector, in conjunction with the Program Administrator, will determine individual contractual
assessment interest rates. Under no circumstances will the interest rate exceed the maximum rate
allowed by law.
Annual Administrative Assessment; Consultation with County Auditor - Controller
LACEP reserves the right to charge an Annual Administrative Assessment to cover costs incurred by the
County for the ordinary and necessary costs of administering the levy and collection of the contractual
assessments and all other administrative costs and incidental expenses related to the debt to be issued.
Separate from any application fee or administrative cost recovered through amounts paid on the
contractual assessment interest rate, the Annual Administrative Assessment will be collected in the same
manner as the contractual assessment and may be adjusted annually to reflect changes in costs. The
County Auditor - Controller has been consulted regarding any fees resulting from the incorporation of the
contractual assessments into the general taxes of the County on real property. It has been determined
that any such fees shall be collected pursuant to the Annual Administrative Assessment.
Assessment Term
The term of the contractual assessments will be no greater than the expected useful life of the
Improvements for each individual Assessment Contract. In no event will the term of any contractual
assessment exceed the maximum term allowed by law. The term of each contractual assessment will be
set under the Assessment Contract.
Assessment Collection and Default
The contractual assessments will be collected in the same manner and at the same time as the general
property taxes of the County. The contractual assessments are subject to the same penalties, remedies,
and lien priorities in the event of delinquency and default. If any contractual assessment becomes
delinquent and property taxes remain unpaid, the County shall have the right to initiate foreclosure
proceedings on the subject property. The LACEP foreclosure policy will be developed in connection with
future financing arrangements and will take into consideration any required covenants associated with a
bond issuance.
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Rebates and Incentives
Financin. Process
Los Angeles County Energy Program
Program Report
Financing through the Program may coincide with current and future distributed generation renewable
energy, energy efficiency and water efficiency financial incentives available from utility providers as well
as local, State, federal, and other agencies. The value of expected rebates and incentives will be
factored into the financing available to the property owner. The Program will advise, and may require
that, participants apply for any and all applicable rebates and incentives available at the time of financing.
References to rebates and financial incentives in this Report do not include income tax rebates.
The process for property owners to receive financing through LACEP is designed to be helpful,
transparent, and straightforward. Presented below are the general procedures for the application,
funding, and repayment process:
• Education. Property owners may access a variety of resources to learn about the Program, the
financing terms, and other details. These resources may include a Program website, service
centers staffed to assist property owners, and information made available at community events.
Application. Property owners may apply for a funding reservation from LACEP and pay a non-
refundable application fee. Applications must include a proposed project (scope of work) and a
contractor bid.
Review and Approval. The Program Administrator will approve an application only after
confirming that the applicant and proposed project satisfy the underwriting criteria and other
Program requirements.
Reservation of Funds. Once the application is approved, the Program Administrator and the
property owner will enter into the Assessment Contract. At this point in time, a maximum
disbursement amount, loan term, and maximum interest rate will be set. The property owner will
also agree to the terms and conditions of the Assessment Contract. The Program Administrator
will provide assessment information to the County and an assessment lien will be filed with the
County Registrar- Recorder.
Installation. The property owner will receive a notice to proceed with the Improvements. A
qualified installer must complete the installation of authorized Improvements on the property
within the required timeframe after receiving the notice. In some cases, the Program
Administrator in his /her sole discretion may grant a time extension.
Evidence of Compliance/ Disbursement of Funds. The County is not obligated to disburse
funds unless and until each of the requirements set forth under the Assessment Contract are
satisfied or waived by the Program Administrator. Upon satisfaction of the above, the Program
Administrator will release funds to the property owner in the amount of the actual cost of
Improvements, but not exceeding the maximum disbursement amount set forth in the
Assessment Contact. At this time, the Program Administrator will notify the property owner of the
actual interest rate and amount of the contractual assessment.
Repayment. After the release of funds, the County will place the assessment on the property tax
roll for the tax year immediately following the disbursement date. The property owner will be
expected to pay the contractual assessment installments in the amounts and at the times
specified in the Assessment Contract. Prepayment of the contractual assessment will be
permitted, however, penalties may apply. Any applicable penalties resulting from prepayment will
be set forth in the Assessment Contract.
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Los Angeles County Energy Program
Program Report
Priority of Funding
Applications from property owners for financing will be given priority based on the date on which the
application is approved. If a request from a property owner for financing would cause LACEP to exceed
the maximum amount of contractual assessments for the Program, then that application will be ineligible
for financing. The Program Administrator shall retain the authority to grant exceptions to the priority
status of individual applications.
Property Owner Financial Responsibilities
The following types of costs are examples of those that will be the responsibility of the property owner
and will not be financed through the Program:
• Application fee;
• If applicable, title insurance and property insurance costs;
• Late payment fees;
• If applicable, costs associated with compliance with the California Environmental Quality Act; and
• Costs associated with repairs and maintenance of the Improvements.
IV. CHANGES TO THE PROGRAM REPORT
The Program Administrator may make changes to this Report that he /she reasonably determines are
necessary to clarify its provisions. Any changes made to this Report that materially modify the LACEP
shall only be made after approval by the Board of Supervisors.
The Program Administrator may modify the schedule of eligible Improvements attached as Appendix B
and the draft Assessment Contract attached as Appendix C as deemed necessary or desirable to
effectuate the intent of the Program.
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Appendix A: Area Map
Los Angeles County Energy Plan
Program Report
N?IF 141 \N(+t
k?I I!1 ty:fl L; Y;At I! �N
fqv ,f
Pacif ic Ocean
SCALE IN MILES
0 2 4 0 12
INCORPORATED AREAS
UNINCORPORATED AREAS
SUPERVISORIAL DISTRICT
BOUNDARIES
4.004 SQUARE MILES
Appendix A I A 1
Eligible improvements will include, but are not limited to, the following types of Improvements, subject to
approval by the Program Administrator:
Energy Efficiency Improvements
• Air sealing
• Duct sealing and weather stripping
• Attic, duct, floor, roof and wall insulation
• Hot water system insulation
• Fans (Bathroom, ceiling, whole house)
■ Energy efficient pool pumps
■ HVAC systems
• Programmable thermostats and energy management systems
• Light fixtures
• Energy Star cool roof
• Radiant barriers
■ Windows, doors, skylights
• Window film
Water Efficiency Improvements
• Hot water heater
• On- demand water recirculation control pump
• High - efficiency toilets and urinals
• Showerheads and aerators
■ Smart irrigation/ Water efficient landscaping
• Rainwater harvesting system
• Grey water system
Distributed Generation Renewable Energy Improvements
■ Solar hot water heating systems
• Solar thermal installation
• Solar space heating
• Photovoltaic systems
• Wind energy systems
• Fuel cell power systems
Appendix B: Eligible Improvements
Los Angeles County Energy Program
Program Report
Appendix B 1 B 1
Appendix C: Draft Assessment Contract
33 pages
- omitted to save paper-
Los Angeles County Energy Program
Program Report
Appendix C 1 C -1