Berkeley, Oakland to get Clean Energy Fund

Living up to their commitment to the environment, the Cities of Berkeley and Oakland are taking proactive steps to fund clean energy in their communities:

Berkeley and Oakland are poised to become the first cities in the nation to help create an innovative fund that would allow small businesses and public agencies to install solar and other clean-energy systems.

The fund would act like a community development bank by advancing money to install energy-efficient electricity generation and conservation equipment that local businesses would lease and could ultimately buy.

If hired by the cities, a Berkeley firm called Power Factors would create an action plan for raising $50 million to $100 million through sales of insurance-backed public bonds and from private investors.

A $50 million investment would produce about 10 megawatts of clean energy generation and five megawatts of decreased energy consumption, according to a city estimate. One megawatt is enough to power about 750 homes.

Berkeley's City Council on Tuesday approved paying Power Factors $52,500 to identify potential commercial customers and vendors this year. The Oakland City Council has agreed to pay $97,500 but has not approved a contract with the firm.