The 14x Stimulus Implementation Guide
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| By: | ARCHITECTURE 2030 |
| With: | ICLEI – Local Governments for Sustainability, RESNET, and Veterans Green Jobs |
14 times the number of jobs, generate $3 in new taxes for the federal government, and return $1 in new tax revenues back to state and local government coffers.
To use Seattle, WA as an example, if the city were to invest $3 million of its $6.2 million Energy Efficiency and ConservationBlock Grant (EECBG) funding in the 14x plan, the plan would generate $42 million in local private spending and create 654 new jobs. The federal government would receive $9 million in new taxes while $3 million in new tax revenue would go into city, county and state coffers. An incredible return on investment.
The more money invested, the greater the return. So, if the $3 million invested by Seattle is matched by state stimulus
funds for a total amount of $6 million, the plan would generate $84 million in local private spending and create 1309 new
jobs. The federal government would receive $18 million in new taxes while $6 million in new tax revenue would go into city,
county and state coffers.
In addition, the 14x Stimulus plan is well aligned with the desired outcomes of the EECBG Program provided under the
American Recovery and Reinvestment Act of 2009 (ARRA), including:
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- increased energy efficiency, reduced energy consumption, and reduced energy costs through efficiency
improvements
in the Building Sector;
- new jobs and increased productivity to spur economic growth and community development;
- accelerated deployment of market-ready distributed renewable energy technologies, including wind, solar,
geothermal, hydropower, biomass and hydrogen technologies;
- improved air quality and related environmental and health indicators associated with the reduction of
fossil fuel emissions;
- improved coordination of energy-related policies and programs across jurisdictional levels of governance
and with other
local and community level programs in order to maximize the impact of this program on
long-term local priorities;
- leveraging of the resources of federal, state, and local governments, utilities and utility regulators, and
private sector and non-profit organizations to maximize the resulting energy, economic, and environmental
benefits; and
- widespread use of innovative financial mechanisms that transform markets.
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Plan Summary
The 14x Stimulus plan proposes using government funding (such as ARRA funds) to create a local mortgage buy-down
program that offers reduced mortgage interest rates contingent upon renovating or building new to meet specific energy
reduction targets. To qualify for the program, a homeowner is required to invest a minimum amount in efficiency and
energy reduction measures, creating demand for construction jobs and generating much-needed private spending. The
cost of the efficiency upgrades is added into the mortgage, but, because of the lower interest rate, the homeowners
monthly mortgage payments are significantly lower. The homeowner also benefits from lower monthly energy costs.
Steps for Implementation
Any local government can implement the plan. However, the more government entities that work together, the greater the benefits. We encourage local governments to work together and with their state whenever feasible to multiply their resources and the resultant benefits.
Following is an outline of suggested steps for governments to take to begin putting the plan into action:
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- Present the 14x Stimulus plan to governors, mayors, county commissioners and other leaders, including at city and
county council meetings to generate interest and get buy-in. [NOTE: 2030 can provide presentation slides and
estimated numbers, such as private spending generated, jobs created, and state local/federal tax revenue
collected
for governments who wish to include this information in their presentations.]
- Meet with banks to determine which ones will participate and:
- what they will need in order to be able to offer the 14x mortgage interest rates,
- who will qualify (qualifying criteria),
- and other relevant issues.
- Determine other major players, such as:
- appraisers,
- energy auditors (Contact: Steve Baden, President of RESNET, at 760-806-3448 or sbaden@resnet.us),
- regional planning and/or NGO entities (existing entities that help cities and the county work on joint efforts),
- energy task force entity,
- State Energy Office contact, and
- existing energy programs that can be leveraged, such as programs offered through utility companies.
- Determine funding level by:
- determining the number of local government entities that will participate and the amount of funding that each
will contribute to the 14x plan and
- determining if the state will contribute matching funds for the plan.
- Hold a meeting of all key leaders and major players to determine roles and an implementation plan, including:
- creating an Oversight Committee and other relevant leadership,
- determining if other state, local and regional programs can be leveraged,
- if necessary, drafting a county or city ordinance/resolution detailing the rules of conduct, such as:
- requiring contractors to complete the job on time and within budget,
- determining who will inspect and certify the work (ex. inspector, HERS rater, etc.),
- requiring 14x participants to provide their utility bills, so that energy reductions can be tracked,
- requiring installation of a Smart Meter (real-time energy-use reader) in the homes of participants,
- limiting the amount of bank fees charged on 14x loans,
- and other relevant issues.
- determining how many 14x existing and new building mortgages will be offered (based on funding level),
[NOTE: To leverage the government funding 14 times, 70% of the stimulus dollars must be allocated
to buying
down existing home mortgage rates, 20% must be allocated for new home mortgages (HERS 70),
and 10% must
be allocated for new home mortgages (HERS 50).]
- determining the appraisal process for participating homes,
- creating a list of qualifying contractors, auditors, and appraisers, and
- determining who will track the benefits of the plan as required by the Fed and how they will be tracked,
including:
- the number of jobs created and retained,
- energy savings on a per-dollar-invested basis,
- renewable energy capacity installed,
- GHG emissions reduced,
- funds leveraged,
- and other relevant data.
- If applying for EECBG funding, submit the 14x Stimulus plan as your Energy Efficiency and Conservation Strategy
(EECS). [NOTE: 2030 is currently developing a 14x Stimulus template for governments to submit for their EECS.]
- Explore the possibility of state and federal tax credits to leverage the large tax revenues generated from the plan.
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14x Stimulus at-a-Glance (.pdf)
The 14x Stimulus Implementation Guide; Download (.pdf)
Download the 14x Stimulus Plan; Download the Financial Analyses
Take Action to Implement 14x Stimulus in Your Community
LOCAL GOVERNMENTS: 14x Template Language for EECS – Attachment B1
For Strategic Planning
For Implementation
