FARMINGTON — Selectmen agreed Tuesday to start the process of adopting an ordinance that would help townspeople and businesses get low-interest loans for energy-saving improvements to their properties.

If the ordinance is adopted, Farmington would join 110 other municipalities, according to Efficiency Maine, that have adopted a Property Assessed Clean Energy ordinance. It allows residents to borrow money awarded to the Efficiency Maine Trust under the federal Energy Efficiency and Conservation Block Grant program and to enter into a contract with the trust to administer the PACE program, according to the draft ordinance.

Recent advertising about the program prompted interest from a local resident, Town Manager Richard Davis told the board. A town ordinance is required for any resident to apply for a loan.

The Maine Legislature approved the 2009 PACE law to increase the affordability of clean energy for homeowners and businesses.

If the town adopts an ordinance, residents can apply for loans of up to $15,000 at 4.99 percent interest, Davis told the board. The application requires that an energy audit be done on the property.

The loans can be used for home energy improvements, including solar thermal systems, wind systems, air-sealing and insulation, wood pellet systems and geothermal systems, Davis said.

He suggested contracting with the Efficiency Maine Trust, rather than having town personnel administering the loans.

Contracting with Efficiency Maine would cost the town nothing and “takes the town out of the loop,” Davis said. Applications and payments would be handled by the trust.

For the town to adopt the ordinance, a public hearing must be held and the ordinance must be approved at a special town meeting.

More information is available on the Efficiency Maine website at www.efficiencymaine.com/pace.

abryant@sunjournal.com