Staff Writer

A member of Kennebunk’s Energy Efficiency Committee was in Arundel Monday to pitch an energy efficiency loan program to selectmen.

Maine legislators recently passed the Property Assessed Clean Energy program, known as PACE, a revolving loan fund to help people make homes more energy efficient, said Steve Thomas, the committee member.

“It can be used to pay for new windows, insulation, whatever,” Thomas said.

The revolving loan comes from Efficiency Maine through the federal government. Efficiency Maine has $20 million to lend homeowners up to $15,000 each through their municipal governments.

Anyone who applies for a loan must have an energy audit to see what improvements should be made to a property, Thomas said. After efficiency improvements are complete, an exit audit is conducted to see how much money the improvements will save in energy costs. Those savings are the amount a homeowner pays back on the loan each month.

“For example, if a homeowner is saving $75 a month on their energy bills, whatever the auditor says the savings is, that is the monthly payment, for up to 20 years,” Thomas said.

Thomas said legislators passed PACE through emergency legislation during its short session in April and left few unanswered questions. The interest rates for loans has not been determined, but Thomas said he expected it to be about 5 percent. He said it is unclear how improvements will affect future tax assessments.

Thomas said any improvements on a house that’s assessed value increased would be deducted from the homeowner’s monthly loan payment.

Before homeowners can participate, towns with a board of selectmen as governing body must pass a new ordinance on the November ballot.

 Thomas said that the ordinance must be approved by voters because PACE loan payments are added to property tax bills. Approval does not obligate anyone in town to take part in the program.

Advocates are rushing to get the new fund approved by towns because the money from federal stimulus funds is intended to be used as quickly as possible to create new jobs.

“I’m in a group of more than 370 energy auditors in Maine and most of them are not doing much right now,” Thomas said. He predicted the $20 million will go fast once the program is approved by towns in November.

“If you snooze you lose,” said Planning Board Member Marty Cain.

Arundel Town Manager John Fraser said the town should give homeowners a choice to pursue the program.

Selectmen agreed to hold a public hearing before the November election after legislators clear up a few more questions about the program.

Kennebunk Selectmen held a public hearing for PACE during the Tuesday Aug. 10 meeting, after the Post’s deadline.

Staff Writer Suzanne Hodgson can be reached at 282-4337, ext. 233.