Bill Text: IN SB0260 | 2011 | Regular Session | Amended
Bill Title: Clean energy improvement financing district.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2011-03-28 - First reading: referred to Committee on Local Government [SB0260 Detail]
Download: Indiana-2011-SB0260-Amended.html
Citations Affected: IC 36-9.
Synopsis: Clean energy improvement financing district. Allows the
legislative body of a political subdivision (other than a township) to
establish a clean energy improvement financing district for the purpose
of issuing bonds to fund clean energy improvements for voluntary
participants in the program. Provides that the bond proceeds are used
to pay all costs associated with the improvements and that assessments
are imposed only on participating property owners to repay the bonds.
Establishes a 20 year period for bond repayment and for the payment
of assessments on each property. Provides that assessments are billed,
collected, and enforced in the same manner as property taxes.
Effective: July 1, 2011.
January 6, 2011, read first time and referred to Committee on Rules and Legislative
Procedure.
January 20, 2011, amended; reassigned to Committee on Utilities and Technology.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Chapter 39.5. Clean Energy Improvement Financing Districts
Sec. 1. This chapter applies to all political subdivisions except townships.
Sec. 2. As used in this chapter, "clean energy improvement" means a fixture, product, system, device, or interacting group of devices that is permanently installed behind the meter of any building to:
(1) produce energy from one (1) or more clean energy resources; or
(2) reduce energy consumption.
Sec. 3. As used in this chapter, "clean energy resources" means the following sources and programs for the production or conservation of electricity:
(1) Energy from wind.
(2) Solar energy.
(3) Photovoltaic cells and panels.
(4) Energy from:
(A) landfill gas to electric systems; and
(B) manure to gas systems.
(5) Geothermal heating and cooling systems.
(6) Energy from waste heat recovery systems.
(7) Conservation measures that reduce electricity consumption.
Sec. 4. (a) As used in this chapter, "conservation measure" means:
(1) a facility alteration;
(2) an alteration of a structure (as defined in IC 36-1-10-2); or
(3) a technology upgrade;
designed to reduce energy or other operating costs.
(b) The term includes the following:
(1) Providing insulation of the facility or structure and systems in the facility or structure.
(2) Installing or providing for window and door systems, including:
(A) storm windows and storm doors;
(B) caulking or weatherstripping;
(C) multiglazed windows and doors;
(D) heat absorbing or heat reflective glazed and coated windows and doors;
(E) additional glazing;
(F) the reduction in glass area; and
(G) other modifications that reduce energy consumption.
(3) Installing automatic energy control systems.
(4) Modifying or replacing heating, ventilating, or air conditioning systems.
(5) Unless an increase in illumination is necessary to conform to Indiana laws or rules or local ordinances, modifying or replacing lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility or structure.
Sec. 5. As used in this chapter, "designated body" refers to a legislative body that administers this chapter with respect to a district. The term includes a legislative body designated under section 7(c) of this chapter.
Sec. 6. As used in this chapter, "district" refers to a clean energy improvement financing district established in a resolution or
ordinance adopted under section 7 of this chapter.
Sec. 7. (a) The legislative body of a political subdivision, or the
legislative bodies of two (2) or more political subdivisions, may
adopt a preliminary resolution or ordinance to:
(1) establish a clean energy improvement financing district;
and
(2) authorize in the district the financing of clean energy
improvements under this chapter.
(b) A preliminary resolution or ordinance adopted under
subsection (a) must contain the following:
(1) The geographic boundaries of the proposed district.
(2) A description of the proposed method of financing of clean
energy improvements installed in the district.
(c) If the legislative bodies of two (2) or more political
subdivisions adopt a preliminary resolution or ordinance, the
preliminary resolutions or ordinances must:
(1) comply with subsection (b);
(2) be identical; and
(3) designate one (1) legislative body to administer the
requirements of this chapter with respect to the district
established in the preliminary resolution or ordinance.
A legislative body designated under subdivision (3) must have
authority to issue bonds.
(d) The boundaries of a district need not coincide with those of
other political subdivisions.
Sec. 8. A designated body may do the following:
(1) Enter into an agreement with another entity concerning
the following:
(A) The development of marketing and public information
programs for a district.
(B) The issuance of bonds under this chapter.
(2) Apply for grants, loans, or other awards on behalf of the
district.
Sec. 9. The designated body shall publish notice of a hearing on
the preliminary resolution or ordinance in accordance with
IC 5-3-1 and on the designated body's web site. The notice must
state the date, time, and place at which the designated body will
hear all interested persons.
Sec. 10. (a) At the hearing specified in the notice under section
9 of this chapter, the designated body shall do the following:
(1) Hear interested persons.
(2) Receive and compile data on the costs of clean energy
improvements proposed to be installed in buildings located in
the district.
(3) Rescind, modify, or confirm the resolution or ordinance.
(b) If the designated body confirms, or modifies and confirms,
the resolution or ordinance:
(1) the clean energy improvement financing district is
established; and
(2) the clean energy improvements installed in buildings
located in the district may be financed according to the
resolution or ordinance.
Sec. 11. (a) A property owner that desires to participate in the
proposed clean energy improvement financing shall submit an
application to the designated body in the form and according to a
schedule determined by the designated body. The application must
contain the following:
(1) The address and legal description of the property on which
the clean energy improvement for which the property owner
desires financing will be installed.
(2) A description and the cost of all clean energy
improvements proposed to be installed on the property.
(3) A statement of intent to participate in the financing of the
clean energy improvement through the imposition of a special
assessment on the property.
(4) A statement showing no delinquent property taxes or
special assessments on the property for the shorter of the
following:
(A) The two (2) immediately preceding taxable years.
(B) The period during which the property owner has
owned the property.
(5) A statement that the assumed cost savings to the owner of
the property over the useful life of the clean energy
improvement, based on industry standards, will exceed the
actual cost of the clean energy improvement.
(b) The designated body shall:
(1) review; and
(2) approve or deny;
an application submitted under subsection (a) according to a
schedule determined by the designated body. The designated body
shall use the costs reported under subsection (a)(2) to determine a
total assessment for each property for which an application was
approved.
(c) A property owner may withdraw or amend an application at
any time before a special assessment is levied on the owner's
property under section 12 of this chapter.
(d) The designated body shall establish a procedure by which
the designated body may adjust the amounts of assessments
determined under subsection (b) to ensure that collections from the
assessments are adequate to make all payments on the bonds as
described in section 15 of this chapter.
Sec. 12. (a) Based on the assessments determined under section
11(b) of this chapter, and subject to any withdrawal or amendment
of an application under section 11(c) of this chapter, a designated
body shall have an assessment roll prepared and levy a special
assessment on each property in the clean energy improvement
financing district for which one (1) or more clean energy
improvements will be financed under this chapter. The assessment
roll must include the following for each property subject to an
assessment under this chapter:
(1) The name of the owner.
(2) A description of the property.
(3) The total assessment.
(4) The annual installment of the assessment determined
under section 13 of this chapter.
An assessment indicated against a property on the assessment roll
is presumed to be of special benefit to the property.
(b) Immediately after the assessment roll is prepared and filed,
the designated body shall publish a notice according to IC 5-3-1.
The assessment roll is not considered to be completed for purposes
of the subsection until any adjustments under section 11(d) of this
chapter are made. The notice must do the following:
(1) Describe the purpose of the assessment.
(2) State that the assessment roll, with the names of owners
and descriptions of property subject to assessment and the
amounts of any assessments, is on file and may be inspected in
the designated body's office.
(c) Following any adjustments under section 11(d) of this
chapter, the designated body shall complete and confirm the
assessment roll. The assessment roll must show the total assessment
opposite each name and a description of the property on the roll.
The designated body shall:
(1) deliver the completed assessment roll to:
(A) the auditor and treasurer of each county in which a
property listed on the roll is located; and
(B) the municipal fiscal officer if the financing under this
chapter is initiated by a municipality; and
(2) publish a notice of the completed assessment roll according
to IC 5-3-1.
(d) Except as provided in subsection (e), the decision of the
designated body as to all assessments is final and conclusive on all
parties.
(e) An owner of an assessed property may appeal a special
assessment to the circuit or superior court for the county in which
the assessed property is located. The clerk of the court shall certify
the judgment to the designated body. The designated body shall
immediately notify the property owner of the amount of the
assessment fixed by the court.
Sec. 13. (a) All assessments under this chapter are payable to the
treasurer of the county in which the property that is subject to the
assessment is located. The county treasurer shall:
(1) annually over the twenty (20) year bond payment period
under section 15 of this chapter bill to the property an amount
equal to the quotient of the total assessment determined for
the property under this chapter divided by twenty (20); and
(2) bill the amount under subdivision (1) annually to a
property regardless of any changes in ownership of the
property.
(b) Subject to subsection (d), a county treasurer shall bill,
collect, and enforce the assessments in the same manner that
property taxes are billed, collected, and enforced.
(c) A county treasurer shall distribute assessments collected
under subsection (b) to the auditor of the county in which the
designated unit that levied the assessments is located for deposit in
a separate special fund under section 14 of this chapter.
(d) The county treasurer shall specify on each property tax
statement that the assessment under this chapter is separate and
distinct from the property tax.
Sec. 14. The proceeds from assessments levied by a designated
body under this chapter constitute a separate special fund for the
security and payment of any bonds issued by the designated body
under section 15 of this chapter, including:
(1) debt service reserves to secure the payment of the bonds;
and
(2) expenses, duties, and costs associated with:
(A) the issuance, sale, or payment of the bonds;
(B) the billing, collection, or enforcement of the
assessments; or
(C) an agreement described in section 8 of this chapter.
Sec. 15. (a) The designated body shall issue bonds in anticipation of the collection of the assessments to finance the installation of clean energy improvements in buildings, regardless of whether the buildings or the real property on which the buildings are located are privately or publicly owned. The designated body shall:
(1) issue and sell the bonds in the manner prescribed for other bonds of the political subdivision; and
(2) make the payments on the bonds described in section 14 of this chapter over a term of twenty (20) years.
The designated body may issue the bonds at any time after a district is established.
(b) The designated body shall use the proceeds of the bonds issued under subsection (a) to pay:
(1) the costs of the clean energy improvements for the properties for which applications were approved under section 11(b) of this chapter, subject to any adjustments under section 11(d) of this chapter or any appeals under section 12 of this chapter; and
(2) to the extent permitted by federal law, any expenses, duties, or costs described in section 14(2) of this chapter.
(c) Bonds issued under this section:
(1) are not an obligation of the political subdivision that issued bonds but are an indebtedness of the district; and
(2) are payable solely from proceeds of special assessments levied by the designated body under section 12 of this chapter.
