Bill Text: HI SB2815 | 2010 | Regular Session | Introduced
Bill Title: Hawaii Clean Energy Bond Loan Program
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2010-02-12 - (S) Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2815 Detail]
Download: Hawaii-2010-SB2815-Introduced.html
|
THE SENATE |
S.B. NO. |
2815 |
|
TWENTY-FIFTH LEGISLATURE, 2010 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO CLEAN ENERGY BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the initial capital investment required by property owners to install renewable energy systems and energy efficiency improvements on residential and commercial properties is a significant barrier to reaching the State’s clean energy targets. In order for the State to reach energy efficiency and clean energy goals, increased activity in residential and small commercial projects is essential. Employing innovative financing to remove known barriers and stimulate enterprise in the clean energy sector is beneficial to the public.
A property assessed clean energy bond is a bond where the proceeds are loaned to commercial and residential property owners to finance efficiency improvements and small renewable energy systems. The property owners repay their loans over a prescribed time period via an annual assessment on their property tax bill. The liability to repay the bond is attached to the property as an assessment on real property, rather than on the individual. The bonds can be issued by states, counties, or municipalities and the proceeds can be typically used to retrofit both commercial and residential properties.
Sixteen other states have already established this type of bond financing or loan programs and two other states have pending bond legislation. Assisting projects and investment in Hawaii can provide jobs and long-term energy, environmental, and economic benefits.
This Act is compatible with the goals and objectives of the Hawaii clean energy initiative and is in the public interest. This Act will increase energy security, provide economic diversification, provide increased career opportunities for Hawaii residents, and attract funding and investment to Hawaii.
The purpose of this Act is to establish a property assessed clean energy bond financing program in the State.
SECTION 2. Chapter 39, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§39- Property assessed clean energy bond program. (a) Beginning July 1, 2011, and ending December 31, 2030, a property assessed clean energy bond program is authorized under this section.
(b) As used in this section:
"Renewable energy system" means a system that produces thermal or electrical energy from renewable sources, including units with an electrical back-up component that are intended for use within the residential or commercial property on which it is located. The following systems shall be deemed to be renewable energy systems:
(1) Solar hot water systems;
(2) Solar photovoltaic systems;
(3) Small wind systems; and
(4) Biogas systems.
"Energy efficiency improvements":
(1) Means the installation or physical modifications to a property that are designed to reduce energy consumption;
(2) Does not include appliances such as washing machines, dryers, dishwashers, and other similar appliances;
(3) Include the following:
(A) Air sealing and ventilation;
(B) Insulation;
(C) Space heating and cooling;
(D) Water heating;
(E) Hardwired lighting;
(F) Daylighting;
(G) Windows;
(H) Doors and skylights;
(I) Reflective roofs; and
(J) Energy efficiency improvements to swimming pool equipment and landscaping.
"Residential properties" mean those properties as defined by the county code for the particular county in which the property is located.
"Commercial properties" mean those properties as defined by the county code for the particular county in which the property is located.
(c) The State may issue bonds and either acting alone or in partnership with a county or counties as authorized under chapter 39 and section 46-8, may incur debt for, or otherwise finance renewable energy systems and energy efficiency improvements undertaken by individual property owners within the State.
The State shall establish a loan program or utilize an existing loan program to lend the proceeds of the property assessed clean energy bonds. The principal and interest on the bonds shall be a general obligation of the State and the applicable portion of property tax payments from the affected properties within the participating county or counties, upon agreement between the State and the county or counties, shall be applied to service the debt on the bonds.
(d) The department of business, economic development, and tourism shall contract with a third-party administrator to manage and administer the property assessed clean energy bond program under this section.
The third-party program administrator's duties and responsibilities shall be established by the department of business, economic development, and tourism by rule or order, and may include:
(1) Establishing criteria and procedures for the qualification of technologies and systems, and performing energy audits; including identifying the energy efficiency improvements and renewable energy systems that qualify for property assessed clean energy loan financing and developing appropriate procedures for the qualification of these improvements and systems;
(2) Calculating a property's current energy consumption and energy costs when an application is submitted by the property owner, and estimating the potential cost benefits that could be realized through energy efficiency improvements or installation of renewable energy systems on the subject property;
(3) Providing education and training on energy efficiency improvements to applicants, including education and training on the selection and use of improvements to maximize energy efficiency;
(4) Prescribing the loan repayment periods and providing projected property tax assessment estimates when the applicant opts to take advantage of the financing made available under this section, including establishing deadlines for loan repayments and providing applicant property owners with the projected property tax assessment estimates that will be due and collected along with the ad valorem property tax bill; provided that the time allowed for the property owner to repay the assessment shall not exceed the life expectancy of the systems or improvements; provided further that in instances where multiple systems or improvements have been installed, the length of time shall not exceed the average lifetime of all projects, weighted by cost;
(5) Assisting the counties with administrative duties related to the execution of this program, including the following:
(A) Initiation and authorship of all written agreements between participating property owners and the counties or funding institutions;
(B) Public outreach and program promotion within the counties, including community informational briefings and making available information relating to the program; and
(C) Revision to existing county documents needed to efficiently collect property tax assessment payments from participating property owners;
(6) Distributing state bond proceeds appropriated for this program to participating property owners or funding institutions, including responsibility for ensuring loan repayment to the State from revenues generated by participating county property tax assessments as described in this section; and
(7) Collecting, compiling, and reporting all data and information relating to the property assessed clean energy bond program to the State, department of business economic development and tourism, and the department of budget and finance;
provided that the criteria, qualifications, procedures, and lifetimes of projects described in subparagraphs (1) and (3) shall be determined with approval from the department of business, economic development, and tourism.
(e) For a county to access funding generated by the sale of bonds issued by the State under this section, the county shall voluntarily agree to participate in the program authorized under this section by enacting an ordinance or other legally binding action. County participation shall constitute an agreement to institute and collect property tax payments, through the ad valorem real property tax collection schedule, in connection with the repayment of each individual loan financed by the bond proceeds under this chapter.
(f) This section shall take precedence over any conflicting provisions contained in any other section of this chapter.
(g) If any subsection, paragraph, clause, or provision of this section, or its application to any person or transaction or other circumstances, is for any reason held to be unconstitutional or invalid, the invalidity or unenforceability of the subsection, paragraph, or clause shall not affect the validity or enforceability of any of the remaining subsections, paragraphs, clauses, or provisions of this section, and to this end this section shall be considered severable."
SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $50,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2010-2011 for the purposes identified in section 2 of this Act.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 4. Free exercise of the counties. This Act does not in any way prohibit or limit the counties to institute a property assessed clean energy or similar financing program for and within their respective county, independent of state partnership or involvement.
SECTION 5. This Act shall take effect on July 1, 2010.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Bond Financing; Clean Energy
Description:
Establishes a property assessed clean energy bond financing program for renewable energy system and energy efficiency improvements on residential and commercial properties, and authorizes the issuance of general obligation bonds to finance the program.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
