Bill Text: MI HB5012 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Energy: alternative sources; property assessed clean energy program; include new construction projects. Amends sec. 9 of 2010 PA 270 (MCL 460.939). TIE BAR WITH: HB 5011'21
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2021-09-30 - Placed On Third Reading [HB5012 Detail]
Download: Michigan-2021-HB5012-Introduced.html
HOUSE BILL NO. 5012
A bill to amend 2010 PA 270, entitled
"Property assessed clean energy act,"
by amending section 9 (MCL 460.939), as amended by 2017 PA 242.
the people of the state of michigan enact:
Sec. 9. (1) The report on the proposed property assessed clean energy program required under section 7 shall include all of the following:
(a) A form of contract between the local unit of government and the record owner governing the terms and conditions of financing and assessment under the program.
(b) Identification of an official authorized to enter into a program contract on behalf of the local unit of government.
(c) A maximum aggregate annual dollar amount for all financing to be provided by the local unit of government under the program.
(d) An application process and eligibility requirements for financing energy projects. under the program.
(e) A method Methods for determining interest rates on assessment installments, repayment periods, and the maximum amount of an assessment, and interest rates on assessment installments.
(f) Explanation An explanation of how assessments will be made and collected consistent with section 13(2).
(g) A plan for raising capital to finance improvements under the program. The plan may include any of the following:
(i) The sale of bonds or notes, subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.section 15.
(ii) Amounts to be advanced by the local unit of government through funds available to it from any other source.
(iii) Owner-arranged financing from a commercial lender. Under owner-arranged financing, the local unit of government may impose an assessment pursuant to section 11 and forward payments to the commercial lender or the record owner may pay the commercial lender directly.
(h) Information regarding all of the following, to the extent known, or procedures to determine the following in the future:
(i) Any reserve fund or funds to be used as security for bonds or notes described in subdivision (g).
(ii) Any application, administration, or other program fees to be charged to record owners participating in the program that will be used to finance costs incurred by the local unit of government as a result of the program.
(i) A requirement that the term of an assessment not exceed the useful life of the energy project paid for by the assessment.
(j) A requirement for an appropriate ratio of the amount of the assessment to the assessed value of the property.
(k) A requirement that the record owner of property subject to a mortgage obtain written consent from the mortgage holder before participating in the program.
(l) Provisions for marketing and participant education.
(m) Provisions for an adequate debt service reserve fund.
(n) Quality assurance and antifraud measures.provisions.
(o) A requirement that a baseline energy audit or baseline energy modeling be conducted before an energy project is undertaken, to establish future energy savings. After the energy project is completed, the local unit of government shall obtain verification that the renewable energy system, anaerobic digester energy system, or energy efficiency improvement was properly installed and is operating as intended.
(p) For an energy project financed with more than $250,000.00 in assessments, both of the following:
(i) A requirement for ongoing measurements that establish the savings realized by the record owner from the energy project.
(ii) A Unless waived by the record owner, a requirement that , in the contract for installation of the energy project, the contractor guarantee to the record owner that the energy project will achieve a savings-to-investment ratio greater than 1 and agree to pay the record owner, on an annual basis, any shortfall in savings below this level. This subparagraph does not apply to a new construction energy project.
(q) For a new construction energy project, a requirement that the building or other structure exceed applicable requirements of the Michigan uniform energy code, parts 10 and 10a of the construction code, R 408.31059 to 408.31071a and 408.31087 to 408.31099 of the Michigan Administrative Code.
(2) The local unit of government shall make the report available for review on the local unit of government's website or at the office of the clerk or the official authorized to enter into contracts on behalf of the local unit of government under the property assessed clean energy program.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No.5011 (request no. 02930'21) of the 101st Legislature is enacted into law.
