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<br />December 21, 2009 Section 3: Building Energy Use <br /> <br /> <br /> <br /> <br />Page 18 <br />public and private investment, but will also result in cost savings and local job opportunities over <br />time. <br />Encouraging or mandating retrofits of existing buildings has proven challenging for many cities <br />due to significant market barriers. Often, building owners lack the incentives to upgrade <br />inefficient equipment, especially in the case of a rental property where the benefit of the <br />upgrade accrues to the renter who pays the utility bills. Nearby jurisdictions – San Francisco <br />and Berkeley – have claimed considerable success implementing residential and commercial <br />energy conservation ordinances (RECO and CECO) to continually improve energy efficiency in <br />the existing residential building stock. <br />These policies mandate energy efficiency measures when a residential property changes <br />hands. The average energy savings associated with RECO measures currently ranges from <br />about 10 to 20 percent per building.11 Other opportunities such as in home energy services and <br />low income weatherization can also achieve significant savings. <br />The actions that the City of San Leandro can take to promote energy efficiency span mandatory <br />requirements to improve properties at time of sale, to programs that offer financial support and <br />incentives for upgrades, to specific activities to educate homeowners in order to overcome <br />informational barriers to energy efficiency. A number of specific ideas and actionable measures <br />are presented below for consideration. <br /> Establish a standard for energy improvements in existing residential properties. In <br />collaboration with local realtors, energy service providers and other community <br />stakeholders, develop and phase in a local energy standard for existing residential buildings <br />that is designed to facilitate deep cost-effective reductions in energy use. Compliance with <br />energy standards may be required to take advantage of certain incentives and financing, <br />and at certain major events such as major renovations, point of sale and condo conversions. <br /> Adopt a third-party or municipal financing program for residential energy efficiency <br />projects. This action would establish a program in which property owners can finance <br />energy efficiency projects. Property owners can take out a loan to pay for the cost of energy <br />efficiency improvements over 20 years through an annual special tax on their property tax <br />bills. The participating city or county provides funding (potentially through a third-party) for <br />the project from a bond or loan fund that is repaid through the owner‘s property tax bills. <br /> <br />11 San Francisco Planning + Urban Research Association (SPUR). <br />http://www.spur.org/publications/library/report/critical_cooling/option1