SACRAMENTO, Calif. — California homeowners and businesses may soon be able to look to their cities and counties for help in financing energy efficiency upgrades to their property, under a bill signed into law this week by Gov. Arnold Schwarzenegger.

The legislation, AB811 authored by Assemblyman Lloyd Levine, D-Van Nuys,  enables cities and counties to provide low-interest loans to owners of homes or businesses who would like to make renewable energy or energy efficiency improvements and would otherwise be unable to afford them.  

The loans would be used to pay the upfront costs to install solar panels or dual pane windows, replace air conditioning units or finance similar projects.  Owners would pay back the loans through assessments on their annual property tax bills.

The law is among the many measures being taken in the state to help California achieve its goal of reducing greenhouse gas emissions by 30 percent by 2020.

Before the legislation was enacted only charter cities, which account for 108 of the state's 478 cities, could offer low-interest loans. The new law allows all cities and counties to create such a program, but leaves it to the cities and counties to figure out how to set up the programs and where to get the money to pay for them.

The measure follows legislation by the Berkeley City Council, which approved a loan program in November to help pay upfront costs for solar power installation projects at city homes and businesses.