Prospects dim for green project funds

Montgomery County officials were hoping that a pitch for nearly $100 million in green projects would attract federal stimulus funds, but as the economy has deteriorated, so have their chances.

Soon after the 2008 elections, talk of an economic stimulus package gave hope to local politicians, and environmentally minded projects seemed a surefire strategy. Montgomery Council President Phil Andrews and Executive Ike Leggett wrote a letter to the county’s congressional representatives asking for stimulus funds to be directed locally, and included a list that contained more than 30 green projects.

“Montgomery County is a prime example of a local government that is able to quickly translate federal dollars into active projects, and to do so in a way that … helps develop a green economy, and creates jobs,” the letter said.

The projects ranged from $1.3 million to expand bike paths around the county to job training for green construction, the creation of a long-term, no-interest federal loan program to fund home energy audits and retrofitting homes for energy-efficiency.

Bethesda Green, a community organization, sought $150,000 to “transform an office suite into a green technology demonstration site … [and] community meeting area on green issues.” Another project would build a bike station in conjunction with the new Silver Spring Transit Center, complete with bike valet parking, repair services, and sales of bike equipment.

But now, the $825 billion stimulus package currently making its way through Congress looks to direct money to states before local jurisdictions, and the green focus has faced stiff competition from projects that offer greater short-term economic gains, like tax cuts and construction projects.

By directing money to Maryland first, facing its own $2 billion budget shortfall, projects involving local roads and organizations will be pushed further down a long pipeline.

However, one program championed by Montgomery County Council’s green guru, Councilman Roger Berliner, has survived congressional wrangling partially intact with the support of powerful Rep. Chris Van Hollen. Aside from being the fifth-ranking Democrat in the House, Van Hollen is also vice chairman of Congress’ Renewable Energy and Energy Efficiency Caucus.

About $2.4 billion, or 0.3 percent of the total stimulus package, will be offered to states and large jurisdictions, like Montgomery County, in the form of backing bonds for green energy projects. Montgomery would likely be eligible for almost $10 million in bond authority, according to Van Hollen’s office.

In Montgomery, the revenue collected by issuing the bonds would most likely fund a unique program offering zero-interest loans to homeowners who want to retrofit their homes to make them energy-efficient. Paying back the loan would be attached to the property tax bill and be transferred to whomever next buys the home and enjoys the benefits of lower utility bills.

In total, about $27 billion, or 3 percent of the total stimulus package, will be used to promote energy efficiency nationwide.

Though the green spending “is not as robust as many would’ve liked,” Berliner said, “the sooner we take steps in that direction, the better the planet and the economy will be.”

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