Bill Text: NH HB576 | 2023 | Regular Session | Enrolled
Bill Title: Relative to administration of a commercial property assessed clean energy (C-PACE) program in a clean energy efficiency and clean energy district.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2023-06-21 - Signed by Governor Sununu 06/20/2023; Chapter 91; Eff:08/19/2023 [HB576 Detail]
Download: New_Hampshire-2023-HB576-Enrolled.html
HB 576-FN-A-LOCAL - VERSION ADOPTED BY BOTH BODIES
14Feb2023... 0162h
6Apr2023... 0692h
2023 SESSION
23-0399
06/10
HOUSE BILL 576-FN-A-LOCAL
SPONSORS: Rep. Mangipudi, Hills. 11; Rep. Darby, Hills. 11; Rep. McWilliams, Merr. 30; Rep. Preece, Hills. 17; Sen. Watters, Dist 4; Sen. Altschiller, Dist 24
COMMITTEE: Science, Technology and Energy
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AMENDED ANALYSIS
This bill clarifies the use of a commercial property assessed clean energy (C-PACE) model in a clean energy efficiency and clean energy district under RSA 53-F. The bill also provides for senior lien status for clean energy efficiency and clean energy districts and for the lien of the assessment contract to run with the property until the assessment is paid in full.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
14Feb2023... 0162h
6Apr2023... 0692h 23-0399
06/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Authority; Energy Efficiency and Clean Energy Districts; C-PACE Programs. Amend RSA 53-F:3 by inserting after paragraph VI the following new paragraph:
VII. Adoption of a clean energy efficiency and clean energy district shall include a commercial property assessed clean energy (C-PACE) model implemented according to the most recent U.S. Department of Energy (DOE) released best practice guidelines for PACE financing programs.
2 Energy Efficiency and Clean Energy Districts; Priority Lien and Collection. Amend RSA 53-F:8 to read as follows:
53-F:8 Priority; Collection and Enforcement. Collection of special assessments under this chapter shall be made by the tax collector or other official responsible for property tax or municipal service charge collection. A municipality shall commit bills for amounts due on the special assessments, including interest and any charges, to the tax collector with a warrant signed by the appropriate municipal officials requiring the tax collector to collect them. Each year bills for amounts due on the special assessments shall coincide with bills for property taxes or municipal service charges. [Each special assessment on the property of a participating property owner shall create a lien on the property pursuant to RSA 80:19, except that the lien shall be junior to existing liens of record at the time the bill for the assessment is mailed to the participating property owner. Enforcement powers for nonpayment shall be those provided under RSA 80 relative to property tax collection, including RSA 80:19; provided, however, a tax sale of the property shall not extinguish prior liens of record. At the time of enforcement, only the past due balances of the special assessment under this chapter, including all interest, charges, and penalties, shall be due for payment. Notwithstanding any other provision of law, in the event of a transfer of property ownership through foreclosure or a sheriff's sale by a senior mortgagee or lienholder which has consented to the making of a loan by a private lender under the provisions of this chapter, the lien of the municipality shall not be extinguished, and the net proceeds of the sale, if any, after payment of all prior obligations to mortgagees and lienholders, costs and expenses of foreclosure or sheriff's sale, shall be first applied to the payment of any past due balances of the loan and then any excess shall be applied against the remaining balance of the loan. If a senior mortgagee or lienholder has not given its consent to the loan, a foreclosure or sheriff's sale by the mortgagee or lienholder shall extinguish all junior mortgages and liens.] Each special assessment imposed under a clean energy efficiency and clean energy district program pursuant to an assessment contract, including any interest on the assessment and any penalty, shall, upon recording of the assessment contract in the county in which the district area is located, constitute a lien against the property on which the assessment is imposed until the assessment, including any interest or penalty, is paid in full. The lien of the assessment contract shall run with the property until the assessment is paid in full and a satisfaction or release for the same has been recorded by the town, city, or district or its program administrator and shall have the same lien priority and status as other property tax and special assessment liens as provided in RSA 80. The town, city, or district, or any permitted assignee, shall have all rights and remedies in the case of default or delinquency in the payment of an assessment as it does with respect to delinquent property taxes and other delinquent special assessments as set forth in RSA 80, except that all prior recorded mortgages or liens shall retain priority over the lien of the assessment contract unless all such mortgagees or lienholders of record have consented to the lien as provided for in RSA 53-F:5.
3 Effective Date. This act shall take effect 60 days after its passage.
23-0399
Amended 4/12/23
HB 576-FN-A-LOCAL- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2023-0692h)
FISCAL IMPACT: [ ] State [ ] County [ X ] Local [ ] None
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Revenue | $0 | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
This bill clarifies the use of a commercial property assessed clean energy (C-PACE) model in a clean energy efficiency and clean energy district under RSA 53-F. The bill also provides for the lien of the assessment contract to run with the property until the assessment is paid in full.
The New Hampshire Municipal Association indicates, for a city, town, or village district that chooses to adopt the provisions of this chapter, it is unclear exactly how much this bill will impact local expenditures. The proposed Property-Assessed Clean Energy (PACE) financing would allow property owners to borrow money from a local government to pay for energy improvements. Under RSA 53:F, local governments may, but are not required to, establish such programs. Under current law, PACE financing can only be provided through private entities. This legislation expands the role of the municipality in the creation of energy efficiency and clean energy districts.
The amount borrowed for a project would be repaid via a special assessment on the property. Owners of private property (zoned for residential, commercial, industrial, or "other" uses, excluding residential property containing less than five units) may opt into an energy financing district after such a district has been created and may obtain funding for a broad array of energy efficiency upgrades and/or renewable energy investments that are permanently affixed on or off the property.
If the municipality votes to establish this district they would have an administrative role in the assessment of energy improvements and entering into loan agreements with qualified property owners. In the event of a foreclosure, the bill provides the town, city, or district, or any permitted assignee, shall have all rights and remedies in the case of default or delinquency in the payment of an assessment as it does with respect to delinquent property taxes and other delinquent special assessments, except that all prior recorded mortgages or liens shall retain priority over the lien of the assessment contract unless all such mortgagees or lien holders of record have consented to the lien as provided for in RSA 53-F:5.
AGENCIES CONTACTED:
New Hampshire Municipal Association
