Brian Cummins · Special Energy Improvement District: Cleveland and Inner-Ring Suburbs

September 14th, 2010

Cleveland City Council discussed a resolution today (Res. No. 1078-10 – introduced in July 2010) that will officially begin the process to involve the City in what is being planned as an Advanced Energy District.

The new special improvement district being created for promoting investment in advanced energy would include the City of Cleveland and 16 municipalities that make up the First Suburbs Consortium Development Council (FSCDC).  The resolution is expected to pass under suspension next Monday 9/20/10.  It represents one of the first steps each participating municipality needs to take with a follow-up ordinance that will approve the articles of incorporation and other requirements.

In June this year the initiative received $100,000 and was ranked 3rd in the EfficientGovNow competition sponsored by the Fund for Our Economic Future.

The new property assessed clean energy (PACE) legislation that has allowed for this development was passed last year (HB1 – 7/17/2009) and modified in June 2010 (SB232)– 6/4/2010).

Some of the key components of the Advanced Energy Special Improvement District (AESID) include: creating longer-term, lower cost funding to pay for energy improvements; ability to aggregate projects for longer-term bond financing; systems can be financed for as much as 30-years; ability to aggregate renewable energy credits; eligibility for state (see more) and federal investment tax credit equal to 30 percent of the eligible costs of a project; and, utilization of net metering.

REF:

Brian Cummins
Cleveland City Council, Ward 14

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2 Comments »

2 Responses to “Special Energy Improvement District: Cleveland and Inner-Ring Suburbs”

  1. Carla Says:
    September 14th, 2010 at 9:59 pm

    Wow. This is great. So the Medical Center Company, 3rd highest polluter (in terms of particulate matter) in the city, could be the poster child of this effort by turning its coal-burners to clean, green, alternative energy–right? Right? Right now?

    There it is, MCCO, owned by CWRU and University Hospitals, guaranteeing the latter of a constant stream of chronically ill patients. Just waiting for the AESID to change everything.

    And the Cleveland City Council is discussing it. Hhhmmm….

  2. Brian Cummins Says:
    September 15th, 2010 at 10:06 am

    Carla, actually no, MCCO would not qualify.

    The new law is for new installations. And, although the law (SB 232) did include amendments that added 1) Clean coal technology; 2) Advanced nuclear technology; and, 3) Cogeneration technology the initial bill’s (HB1) intent was to try to incentivize investments in renewable energy, i.e., solar and wind.

    According to most solar and wind proponents in the State, Ohio’s effective tax rate for renewable energy technologies is anywhere from 4 to 8 times higher than most of our neighboring states.

    The bill was initiated to deal primarily with that issue, to make Ohio more competitive for renewable energy installations.

    The amendments that added clean coal and nuclear are said to be obvious compromises but very likely meaningless, as the financing and sighting of such facilitates would be difficult if not impossible given the applications deadlines (2013).

    In addition the law requires that County’s approve of projects.

    REF:

    Clean Energy Lobby Day Legislative Priorities
    May 10, 2010, SB223 Financing Clean Energy through Revolving Loan Funds
    http://ohiosierraclub.org/wp-content/uploads/2009/10/Energy-Lobby-Day-Bills-and-Asks.pdf Asked to “not support tax breaks for coal or nuclear facilities”

    (Ohio) Municipal Solar Financing Law Background, http://www.greenenergyohio.org/page.cfm?pageID=2488

    Bill Analysis – SB 232 – As Passed by Senate
    http://www.legislature.state.oh.us/analysis.cfm?ID=128_SB_232&ACT=As%20Enrolled&hf=analyses128/s0232-ps-128.htm