Bill Text: WV HB2534 | 2018 | Regular Session | Introduced
Bill Title: Authorizing local units of government to adopt local energy efficiency partnership programs
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-21 - To House Finance [HB2534 Detail]
Download: West_Virginia-2018-HB2534-Introduced.html
WEST virginia Legislature
2017 regular session
By
[
to the Committee on Energy then Finance.
A BILL to amend the Code
of West Virginia, 1931, as amended, by adding thereto a new article, designated
§5B-2I-1, §5B-2I-2, §5B-2I-3, §5B-2I-4, §5B-2I-5, §5B-2I-6 and §5B-2I-7, all
relating to authorizing local units of government to adopt local energy efficiency
partnership programs and to create districts to promote the use of energy
efficiency improvements by owners of certain real property; providing for
financing of programs through voluntary property assessments, commercial
lending and other means; authorizing local unit of government to issue bonds,
notes and other evidences of indebtedness and to pay the cost of energy
efficiency improvements from the proceeds thereof; providing for the repayment
of bonds, notes and other evidences of indebtedness; authorizing certain
fees; prescribing powers and duties of
certain governmental officers and entities; and providing remedies.
Be it enacted by the
Legislature of West Virginia:
That the Code of West
Virginia, 1931, as amended, be amended by adding thereto a new article,
designated §5B-2I-1, §5B-2I-2, §5B-2I-3, §5B-2I-4, §5B-2I-5, §5B-2I-6 and §5B-2I-7,
all to read as follows:
ARTICLE 2I. LOCAL ENERGY EFFICIENCY PARTNERSHIP ACT.
§5B-2I-1. Short title.
This
article shall be known and may be cited as the "Local Energy Efficiency
Partnership Act".
§5B-2I-2. Definitions.
As used
in this article:
(1)
"District" means a district created under a local energy efficiency
partnership program by a local unit of government that lies within the local
unit of government's jurisdictional boundaries. A local unit of government may
create more than one district under the program, and districts may be separate,
overlapping or coterminous.
(2)
"Energy efficiency improvement" means equipment, devices, or
materials intended to decrease energy consumption, including, but not limited
to:
(A)
Insulation in walls, roofs, floors, foundations or heating and cooling
distribution systems;
(B)
Storm windows and doors; multiglazed windows and doors; heat-absorbing or
heat-reflective glazed and coated window and door systems; and additional
glazing, reductions in glass area, and other window and door system
modifications that reduce energy consumption;
(C)
Automated energy control systems;
(D)
Heating, ventilating or air-conditioning and distribution system modifications
or replacements;
(E)
Caulking, weather-stripping and air sealing;
(F)
Replacement or modification of lighting fixtures to reduce the energy use of
the lighting system;
(G)
Energy recovery systems;
(H)
Daylighting systems;
(l)
Installation or upgrade of electrical wiring or outlets to charge a motor
vehicle that is fully or partially powered by electricity;
(J)
Measures to reduce the usage of water or increases the efficiency of water
usage;
(K) Any
other installation or modification of equipment, devices, or materials approved
as a utility cost-savings measure by the governing body.
(3)
"Energy project" means the installation or modification of an energy
efficiency improvement.
(4)
"Governing body" means the county commission of a county, or the
council or other similar elected legislative body of a municipality.
(5)
"Local unit of government" means a county or municipality.
(6)
"Person" means an individual, firm, partnership, association,
corporation, unincorporated joint venture, or trust, organized, permitted, or
existing under the laws of this state or any other state, including a federal
corporation, or a combination thereof. However, person does not include a local
unit of government.
(7)
"Property" means privately owned commercial or industrial real
property located within the local unit of government.
(8)
"Local energy efficiency partnership program" or "program"
means a program as described in section three of this article.
(9)
"Record owner" means the person or persons possessed of the most
recent fee title or land contract vendee's interest in property as shown by the
records of the clerk of the county commission.
§5B-2I-3. Establishment of local energy efficiency
partnership program.
(a)
Pursuant to the procedures set forth in this section, a local unit of
government may establish a local energy efficiency partnership program and may,
from time to time, create a district or districts under the program.
(b)
Under a program, the local unit of government may enter into a contract with
the record owner of property within a district to finance or refinance one or
more energy projects on the property. The contract may provide for the
repayment of the cost of an energy project through assessments upon the
property benefitted. The financing or refinancing may include the cost of
materials and labor necessary for installation, permit fees, inspection fees,
application and administrative fees, bank fees, and all other fees that may be
incurred by the record owner pursuant to the installation on a specific or pro
rata basis, as determined by the local unit of government.
(c) To
establish a local energy efficiency partnership program, the governing body of
a local unit of government shall take the following actions in the following
order:
(1)
Adopt a resolution of intent that includes all of the following:
(A) A
finding that the financing of energy projects is a valid public purpose;
(B) A
statement of intent to provide funds for energy projects, which may be repaid
by assessments on the property benefitted, with the agreement of the record
owners;
(C) A
description of the proposed arrangements for financing the program;
(D) The
types of energy projects that may be financed;
(E)
Reference to a report on the proposed program as described in section four of
this article, and a location where the report is available pursuant to section
four of this article; and
(F) The
time and place for a public hearing on the proposed program;
(2)
Hold a public hearing at which the public may comment on the proposed program,
including the report required by section four of this article;
(3)
Adopt a resolution establishing the program and setting forth its terms and
conditions, including all of the following:
(A)
Matters required by section four of this article to be included in the report;
for this purpose, the resolution may incorporate the report or an amended
version thereof by reference; and
(B) A
description of which aspects of the program may be amended without a new public
hearing and which aspects may be amended only after a new public hearing is
held.
(d) A
local energy efficiency partnership program may be amended by resolution of the
governing body. Adoption of the resolution shall be preceded by a public
hearing if required pursuant to subdivision (3), subsection (c) of this
section.
§5B-2I-4. Report requirements on proposed local energy
efficiency partnership program.
(a) The
report on the proposed program required under section three of this article
shall include all of the following:
(1) A
form of contract between the local unit of government and record owner
governing the terms and conditions of financing and assessment under the
program;
(2)
Identification of an official authorized to enter into a program contract on
behalf of the local unit of government;
(3) A
maximum aggregate annual dollar amount for all financing to be provided by the
local unit of government under the program;
(4) An
application process and eligibility requirements for financing energy projects
under the program;
(5) A
method for determining interest rates on assessment installments, repayment
periods, and the maximum amount of an assessment.
(6)
Explanation of how assessments will be made and collected consistent with
section five of this article;
(7) A
plan for raising capital to finance improvements under the program. The plan
may include any of the following:
(A) The
sale of bonds or notes, subject to appropriate laws and rules;
(B)
Amounts to be advanced by the local unit of government through funds available
to it from any other source; or
(C)
Owner-arranged financing from a commercial lender; under owner-arranged
financing, the local unit of government may impose an assessment pursuant to
section five of this article and forward payments to the commercial lender or
the record owner may pay the commercial lender directly;
(8)
Information regarding all of the following, to the extent known, or procedures
to determine the following in the future:
(A) Any
reserve fund or funds to be used as security for bonds or notes described in
subdivision (7) of this section;
(B) 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;
(9) A requirement that the term of an
assessment not exceed the useful life of the energy project paid for by the
assessment;
(10) A requirement for an appropriate ratio of
the amount of the assessment to the assessed value of the property;
(11) A requirement that the record owner of
property subject to a mortgage obtain written consent from the mortgage holder
before participating in the program;
(12)
Provisions for marketing and participant education;
(13)
Provisions for adequate debt service reserve fund;
(14)
Quality assurance and antifraud measures;
(15) A
requirement that a baseline energy audit 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
energy efficiency improvement was properly installed and is operating as
intended;
(16)
For an energy project financed with more than $250,000 in assessments, both of
the following:
(A) A
requirement for ongoing measurements that establish the savings realized by the
record owner from the energy project; and
(B) 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 one and agree to pay the record owner,
on an annual basis, any shortfall in savings below this level.
(b) 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 contracts on behalf of the local unit of
government under the local energy efficiency partnership program.
§5B-2I-5. Assessment imposed under a local energy
efficiency partnership program.
(a) A
local unit of government may impose an assessment under a local energy
efficiency partnership program only pursuant to a written contract with the
record owner of the property to be assessed.
(b)
Before entering into a contract with a record owner under a program, the local
unit of government shall verify all of the following:
(1)
That there are no delinquent taxes, special assessments, or water or sewer
charges on the property; and
(2)
That there are no delinquent assessments on the property under a local energy
efficiency partnership program.
(c) An
assessment imposed under a local energy efficiency partnership program,
including any interest on the assessment and any penalty, is 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 runs with the property and has
the same priority and status as other property tax and assessment liens. The
local unit of government has all rights in the case of delinquency in the
payment of an assessment as it does with respect to delinquent property taxes.
When the assessment, including any interest and penalty, is paid, the lien
shall be removed from the property.
(d)
Installments of assessments due under a program shall be included in each
property tax bill and shall be collected at the same time and in the same
manner as property taxes collected according to article one, chapter eleven-a
of this code. Alternatively, installments may be billed and collected as
provided in a special assessment ordinance of general applicability adopted by
the local unit of government pursuant to state law or local charter.
§5B-2I-6. Issuance of bonds.
(a) A
local unit of government may issue bonds or notes to finance energy projects
under a local energy efficiency partnership program.
(b)
Bonds or notes issued under subsection (a) of this section may not be general
obligations of the local unit of government, but shall be secured by one or
more of the following as provided by the governing body in the resolution or
ordinance approving the bonds or notes:
(1)
Payments of assessments on benefitted property within the district or districts
specified;
(2)
Reserves established by the local unit of government from grants, bond or note
proceeds, or other lawfully available funds;
(3)
Municipal bond insurance, lines or letters of credit, public or private
guaranties, standby bond purchase agreements, collateral assignments,
mortgages, and any other available means of providing credit support or
liquidity;
(4) Tax
increment revenues that may be lawfully available for such purposes; or
(5) Any
other amounts lawfully available for such purposes.
(c) A
pledge of assessments, funds, or contractual rights made by a governing body in
connection with the issuance of bonds or notes by a local unit of government
under this article constitutes a statutory lien on the assessments, funds, or
contractual rights so pledged in favor of the person or persons to whom the
pledge is given, without further action by the governing body. The statutory
lien is valid and binding against all other persons, with or without notice.
(d)
Bonds or notes of one series issued under this article may be secured on a
parity with bonds or notes of another series issued by the local unit of
government pursuant to the terms of a master indenture or master resolution
entered into or adopted by the governing body of the local unit of government.
(e)
Bonds or notes issued under this article, and interest payable on such bonds
and notes, are exempt from all taxation by this state and its political
subdivisions.
(f)
Bonds or notes issued under this article further essential public and
governmental purposes, including, but not limited to, reduced energy costs,
reduced greenhouse gas emissions, economic stimulation and development,
improved property valuation, and increased employment.
§5B-2I-7. Joint implementation of programs.
(a) A
local unit of government may join with any other local unit of government, or
with any person, or with any number or combination thereof, by contract or
otherwise as may be permitted by law, for the implementation of a local energy
efficiency partnership program, in whole or in part.
(b) If
a local energy efficiency partnership program is implemented jointly by two or
more local units of government pursuant to subsection (a) of this section, a
single public hearing held jointly by the cooperating local units of government
is sufficient to satisfy the requirements of subdivision (2), subsection (c),
section three of this article.
NOTE: The purpose of this bill is
to authorize local units of government to adopt local energy efficiency
partnership programs and to create districts to promote the use of energy
efficiency improvements by owners of certain real property; to provide for the
financing of such programs through voluntary property assessments, commercial
lending, and other means; to authorize a local unit of government to issue
bonds, notes, and other evidences of indebtedness and to pay the cost of energy
efficiency improvements from the proceeds thereof; to provide for the repayment
of bonds, notes, and other evidences of indebtedness; to authorize certain
fees; to prescribe the powers and duties of certain governmental officers and
entities; and to provide remedies.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.
