Three cheers for the state Legislature for its approval this week of a new form of energy finance called PACE, short for Property Assessed Clean Energy.

A "cash for caulkers" weatherization program would lead to permanent cost savings for homeowners and reduce CO2 emissions.The new law (passed at the urging of hundreds of NYLCV supporters - thank you for taking action!) enables municipalities to establish programs that eliminate the upfront cost for energy efficiency improvements by allowing property owners to pay for them over 15-20 years through an increase in their annual property taxes.

This long-term repayment mechanism results in annual energy savings that greatly exceed the annual property tax cost, making PACE finance highly attractive to home and building owners. Local governments can issue bonds, backed solely by the property tax surcharge, to finance the energy efficiency improvements.

The Clinton Climate Initiative's Energy Efficiency Building Retrofit Program, part of the former President's Clinton Foundation, recently espoused taking this idea to a nationwide level. President Clinton made similar remarks last week in a speech before the National League of Conservation Voters in New York City.

Rahm Emanuel, President Obama's chief of staff, told the New York Times that the administration seriously is considering a so-called "cash for caulkers" home weatherization program as an economic stimulus plan that would ultimately save people money in energy costs.