Whatcom County Partnership Leads the Nation with New Program for Energy Efficiency Lending

FOR IMMEDIATE RELEASE 
August 5, 2010 – Whatcom County, WA
 

Whatcom County Partnership leads the nation with new program for energy efficiency lending 

Whatcom County, WA – Home and business owners can now get loans for energy efficiency projects using an innovative loan loss reserve program. Dozens of communities around the country are exploring using Stimulus funds to encourage private financial institutions to get on board, and Whatcom County’s Community Energy Challenge is the first in Washington State and one of the first in the nation to make it happen.

On August 4, 2010, the first loan was made by Banner Bank to a homeowner in Ferndale, Washington to pay for energy efficiency upgrades. The work was completed by Azimuth Integral Homes, a local construction firm participating in the Community Energy Challenge. The energy efficiency project included air sealing, installing insulation throughout the home, and providing proper ventilation.  This work will yield an estimated annual savings of more than $700, will also help increase the comfort of the home, offer improved indoor air quality, and ensure that the house is more durable. Staff from Opportunity Council provided an initial home energy assessment, oversaw the project to ensure top quality workmanship, and assisted the homeowner with accessing all rebates, incentives, and tax credits they were eligible to receive. The loans through Banner Bank are available to participants to pay the balance of the cost. Similar services and loans are available to small businesses in Whatcom County through Sustainable Connections.

This loan loss reserve (LLR) program provides the bank with limited protections from the first losses on a portfolio of energy efficiency loans, but encourages them to maintain safe lending practices. This allows the bank to provide more attractive loans with lower interest rates, longer terms and enhanced access to credit. The LLR stretches the public funds much farther than a traditional revolving loan program, and unlike a loan guarantee program, the public risk is clearly capped.

Banner Bank was selected through a request for proposals process last January. “We saw this
program as a way to live Banner’s community bank values. We added up the attributes: creating green jobs, building the communities where we live and work, and teaming up with important community partners. These are all part of Banner Bank’s core mission to Do the Right Thing” said Bruce Clawson, Banner’s local Senior Vice President.

 Four funding sources, all enabled by the American Recovery and Reinvestment Act, have been combined to capitalize the loss reserve fund. All Whatcom County local governments are working together to make this program a success, with combined grant funds anticipated to leverage about $10 million in energy efficiency projects.

“This program is a win for the home and business owners who will be saving money because of these projects. It’s a win for the local contractors who are doing the work. It’s a win for the economy. And it’s a win for the environment. The City of Bellingham is proud to be a partner,”
said Mayor Dan Pike.
                       
“This effort really showcases what we can do when we work together,” adds Ferndale Mayor Gary Jensen. “Strong local partnerships allowed us say that we are all working together and that was a compelling case to funders.”

County Executive Pete Kremen said. “This region has been number one in the nation in Green Power. We are a climate showcase community and we are leaders in many other indicators of sustainability. It is gratifying to be leading on energy efficiency issues as well.”  

Over the next two years the Community Energy Challenge will help 900 homeowners and 150 small businesses in Whatcom County save energy and complete energy efficiency retrofits. These projects will create approximately 35 direct jobs and $10 million in economic activity. Participants interested in saving money and energy can get started with an energy assessment - $95 for homes and $65 for businesses. For more information visit: www.communityenergychallenge.org.

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Many thanks to the Community Energy Challenge Lead sponsors:
City of Bellingham, City of Ferndale, Whatcom County and Banner Bank