LEAN $ GREEN: Bay County to Consider Joining State Energy Financing Plan
December 29, 2013
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Andy Levin aims to transform Michigan's energy outlook through an innovative new program, Lean & Green Michigan.
Bay County commissioners in January will decide whether to join a new Lean & Green Michigan movement that sounds almost too good to be true.
It's time for Michigan's utilities to move into the 21st Century and away from coal, commissioners were told Dec. 17 by Andrew S. Levin, former state energy chief.
The county can join other units of government, such as Saginaw, Ingham, Wayne, Macomb and Washtenaw counties, in the program that provides financing for "green energy" projects.
Lean & Green Michigan is one of America's first statewide Property Assessed Clean Energy (PACE) initiatives -- and Michigan's marketplace for energy efficiency and renewable energy financing, explained Levin.
The plan, contained in a relatively new state statute, allows local employers to secure low-interest, long-term loans to achieve "greener" buildings. Loan payments would be collected through the business' property tax bills and paid to the bank that serves as the lender.
The improvements that qualify for financing include upgraded heating and cooling systems, LED lighting, savings on water usage, solar panels, wind turbines, and basic upgrades to windows and doors.
The loan program would not involve any tax dollars, Levin said. The county Treasurer's Office would secure the loan payments during the bi-annual property tax collection process and pass those funds on to the participating banks. The county would also enforce a declaration that these special assessments would be collected on schedule and would become a top-priority lien on future tax bills if a recipient company was sold.
According to its website, Lean & Green Michigan helps commercial, industrial and multi-family property owners finance energy projects, eliminate waste and save money through innovative financing solutions that make energy projects profitable for all parties -- property owners, contractors and financial institutions and even municipalities which experience a growing tax base.
Lean & Green Michigan is a public-private partnership that uses Michigan's new PACE statute but takes a market-based approach to energy finance and economic development. "In essence, we leverage the PACE statute to maximum effect by bringing private capital to bear to solve companies' energy problems, to create work for contractors and jobs for workers, and to green our communities," said Levin.
Counties, cities and townships host the Lean & Green Michigan PACE district, but they pay nothing to initiate the program or for ongoing program administration and bear no risk, according to Levin.
Property owners, contractors and financial institutions get a free market in which to arrange energy deals that pencil out for all concerned, using the PACE financing mechanism to lower the cost of capital and create positive cash flow from day one.
Projects are funded through property tax assessments on a long-term basis; investors in what amounts to municipal bonds get six to 12 percent returns, mighty attractive in today's market.
"Each year, Michigan sends over $1.36 billion out of state to import coal for unneeded and uneconomic coal-fired power plants," said Levin, son of U.S. Rep. Sander Levin and creator of Michigan's "No Worker Left Behind" program launched under the administration of Gov. Jennifer Granholm.
"Our money goes out of state, and we're left with the enormous threats to Michigan's health and environment by relying on coal-fired power plants. Michigan can't afford the enormous health and environmental threats, we can't afford the skyrocketing costs, and we can't afford to harness ourselves to dirty coal.
"Jobs for clean and renewable energy are rare bright spot in Michigan's economy. Between 2005 and 2008, Michigan's Green Jobs sector was the only part of our economy that actually grew.
"Our state can create hundreds of sustainable, family wage jobs by investing in energy saving measures as well as renewable resources. Renewable sources of energy are less expensive, cleaner, and present more ways to meet our energy needs while investing our resources for good local jobs in Michigan," he said,concluding:.
"Transitioning to a clean energy economy in Michigan ensures prosperity, good jobs and healthy families in the future."
Levin is the founder of Levin Energy Partners, LLC, Bloomfield Hills. Andy holds a bachelor's degree from Williams College, a Juris Doctor from Harvard Law School, and a master's degree in Asian Languages and Cultures from the University of Michigan's Rackham Graduate School, where he was a Mellon Fellow in the Humanities. ###
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jklei Says:
On December 31, 2013
at 07:51 PM
Happy New Year. Enjoyed the articles!
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