The Energy Efficiency and Conservation Block Grant money awarded to New York City will be managed by the Department of Citywide Administrative Services. The grant will help property owners here finance energy-saving retrofits in existing buildings, said to be responsible for 75% of the city's carbon emissions.

In a release, Mayor Michael Bloomberg says the grant will "jump-start the energy efficiency retrofit industry so we can meet the ambitious goals we set in PlaNYC," the sustainability program originally announced on Earth Day 2007. The city had announced a plan last year to use $16 million in stimulus money to create a loan fund that would help offset the upfront costs of retrofits. "With today's grant, the city will be able to significantly build on and extend this plan," Bloomberg says.

PACE loan programs, usually financed through municipal bonds, enable municipalities to help commercial and residential property owners cover the upfront costs of energy efficiency improvements or renewable energy projects. The owners can then pay off the projects over a timeframe of up to 20 years through incremental charges on their property taxes. The concept originated through a 2008 pilot program in Berkeley, CA.