Full Text of SB1700 100th General Assembly
SB1700sam003 100TH GENERAL ASSEMBLY | Sen. Karen McConnaughay Filed: 5/17/2017
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| 1 | | AMENDMENT TO SENATE BILL 1700
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1700 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. If and only if House Bill 2831 of the 100th | 5 | | General Assembly becomes law as engrossed, then the Property | 6 | | Assessed Clean Energy Act is amended by changing Sections 5 and | 7 | | 25 as follows: | 8 | | (10000HB2831eng, Sec. 5)
| 9 | | Sec. 5. Definitions. As used in this Act: | 10 | | "Alternative energy improvement" means the installation or | 11 | | upgrade of electrical wiring, outlets, or charging stations to | 12 | | charge a motor vehicle that is fully or partially powered by | 13 | | electricity. | 14 | | "Assessment contract" means a voluntary written contract | 15 | | between the local unit
of government and record owner governing | 16 | | the terms and conditions of financing and
assessment under a |
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| 1 | | program. | 2 | | "PACE area" means an area within the jurisdictional | 3 | | boundaries of a local unit of government created by an | 4 | | ordinance or resolution of the local unit of government to | 5 | | provide financing for energy projects under a property assessed | 6 | | clean energy
program. A local unit of government may create | 7 | | more than one PACE area under
the program, and PACE areas may | 8 | | be separate, overlapping, or coterminous. | 9 | | "Energy efficiency improvement" means equipment, devices, | 10 | | or materials
intended to decrease energy consumption or promote | 11 | | a more efficient use of electricity, natural gas,
propane, or | 12 | | other forms of energy on property, including, but not limited | 13 | | to, all of the
following: | 14 | | (1) insulation in walls, roofs, floors, foundations, | 15 | | or heating and
cooling distribution systems; | 16 | | (2) storm windows and doors, multi-glazed windows and | 17 | | doors, heat-absorbing
or heat-reflective glazed and coated | 18 | | window and door systems, and additional glazing, | 19 | | reductions in glass area, and other window and
door system | 20 | | modifications that reduce energy consumption; | 21 | | (3) automated energy control systems; | 22 | | (4) high efficiency heating, ventilating, or | 23 | | air-conditioning and
distribution system modifications or | 24 | | replacements; | 25 | | (5) caulking, weather-stripping, and air sealing; | 26 | | (6) replacement or modification of lighting fixtures |
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| 1 | | to reduce the
energy use of the lighting system; | 2 | | (7) energy controls or recovery systems; | 3 | | (8) day lighting systems; and | 4 | | (9) any other installation or modification of | 5 | | equipment, devices, or
materials approved as a utility | 6 | | cost-savings measure by the governing
body. | 7 | | "Energy project" means the installation or modification of | 8 | | an alternative energy improvement, energy
efficiency | 9 | | improvement, or water use improvement, or the acquisition, | 10 | | installation, or improvement of a renewable energy
system that | 11 | | is or will be affixed to new or a stabilized existing property | 12 | | (not new construction) . | 13 | | "Governing body" means the county board or board of county | 14 | | commissioners of a county, the city council of a city, or the | 15 | | board of trustees of a village. | 16 | | "Local unit of government" means a county, city, or | 17 | | village. | 18 | | "Person" means an individual, firm, partnership, | 19 | | association, corporation,
limited liability company, | 20 | | unincorporated joint venture, trust, or any other type of | 21 | | entity that is recognized by law and has the title to or | 22 | | interest in property. "Person" does not include a local unit of | 23 | | government or a homeowner's or condominium association. | 24 | | "Program administrator" means a for-profit entity or | 25 | | not-for profit entity that will administer a program on behalf | 26 | | of or at the discretion of the local unit of government. It or |
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| 1 | | its affiliates, consultants, or advisors shall have done | 2 | | business as a program administrator or capital provider for a | 3 | | minimum of 18 months and shall be responsible for arranging | 4 | | capital for the acquisition of bonds issued by the local unit | 5 | | of government to finance energy projects. | 6 | | "Property" means privately-owned commercial, industrial, | 7 | | non-residential agricultural, or multi-family (of 5 or more | 8 | | units) real property
located within the local unit of | 9 | | government, but does not include property owned by a local unit | 10 | | of government or a homeowner's or condominium association. | 11 | | "Property assessed clean energy program" or "program" | 12 | | means a
program as described in Section 10. | 13 | | "Record owner" means the person who is the titleholder or | 14 | | owner of the beneficial interest in property. | 15 | | "Renewable energy resource" includes energy and its | 16 | | associated renewable energy credit or renewable energy credits | 17 | | from wind energy, solar thermal energy, photovoltaic cells and | 18 | | panels, biodiesel, anaerobic digestion, and hydropower that | 19 | | does not involve new construction or significant expansion of | 20 | | hydropower dams. For purposes of this Act, landfill gas | 21 | | produced in the State is considered a renewable energy | 22 | | resource. The term "renewable energy resources" does not | 23 | | include the incineration or burning of any solid material. | 24 | | "Renewable energy system" means a fixture, product, | 25 | | device, or
interacting group of fixtures, products, or devices | 26 | | on the customer's side of the meter that use one or more |
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| 1 | | renewable energy resources to generate electricity. | 2 | | "Water use improvement" means any fixture, product, | 3 | | system, device, or interacting group thereof for or serving any | 4 | | property that has the effect of conserving water resources | 5 | | through improved water management or efficiency.
| 6 | | (Source: 10000HB2831eng.) | 7 | | (10000HB2831eng, Sec. 25)
| 8 | | Sec. 25. Contracts with record owners of property. | 9 | | (a) After creation of a program and PACE area, a record | 10 | | owner of property within the PACE area may apply with the local | 11 | | unit of government or its program administrator for funding to | 12 | | finance an energy project. | 13 | | (b) A local unit of government may impose an assessment | 14 | | under a property
assessed clean energy program only pursuant to | 15 | | the terms of a recorded assessment contract with the
record | 16 | | owner of the property to be assessed. | 17 | | (c) Before entering into an assessment contract with a | 18 | | record owner under
a program, the local unit of government | 19 | | shall verify all of the following: | 20 | | (1) that the property is within the PACE area; | 21 | | (2) that there are no delinquent taxes, special | 22 | | assessments, or
water or sewer charges on the property; | 23 | | (3) that there are no delinquent assessments on the | 24 | | property under
a property assessed clean energy program; | 25 | | (4) there are no involuntary liens on the property, |
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| 1 | | including, but
not limited to, construction or mechanics | 2 | | liens, lis pendens or judgments against the
record owner, | 3 | | environmental proceedings, or eminent domain
proceedings; | 4 | | (5) that no notices of default or other evidence of | 5 | | property-based
debt delinquency have been recorded and not | 6 | | cured; | 7 | | (6) that the record owner is current on all mortgage | 8 | | debt on the
property, the record owner has not filed for | 9 | | bankruptcy in the last 2 years, and the property is not an | 10 | | asset to a current bankruptcy. | 11 | | (7) all work requiring a license under any applicable | 12 | | law to make a
qualifying improvement shall be performed by | 13 | | a registered contractor that has agreed to adhere to a set | 14 | | of terms and conditions through a process established by | 15 | | the local unit of government. | 16 | | (8) the contractors to be used have signed a written | 17 | | acknowledgement that the local unit of government will not | 18 | | authorize final payment to the contractor until the local | 19 | | unit of government has received written confirmation from | 20 | | the record owner that the improvement was properly | 21 | | installed and is operating as intended; provided, however, | 22 | | that the contractor retains all legal rights and remedies | 23 | | in the event there is a disagreement with the owner; | 24 | | (9) that the amount of the assessment in relation to | 25 | | the greater of the assessed value of the property or the | 26 | | appraised value of the property, as determined by a |
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| 1 | | licensed appraiser, does not exceed 25%; and | 2 | | (10) a requirement that an assessment of the existing | 3 | | water or energy use or and a modeling of expected monetary | 4 | | savings has have been conducted for any proposed project. | 5 | | (d) At least 30 days before entering into an agreement with
| 6 | | the local unit of government, the record owner shall provide to | 7 | | the holders or
loan servicers of any existing mortgages | 8 | | encumbering or otherwise
secured by the property a notice of | 9 | | the record owner's intent to enter
into an assessment contract | 10 | | with the local unit of government, together with the maximum | 11 | | principal amount to be financed and the
maximum annual | 12 | | assessment necessary to repay that amount, along
with a request | 13 | | that the holders or loan servicers of any existing
mortgages | 14 | | consent to the record owner subjecting the property to the
| 15 | | program. A verified copy or other proof of those notices and | 16 | | the written
consent of the existing mortgage holder for the | 17 | | record owner to enter
into the assessment contract and | 18 | | acknowledging that the existing
mortgage will be subordinate to | 19 | | the financing and assessment
agreement and that the local unit | 20 | | of government can foreclose the
property if the assessment is | 21 | | not paid shall be provided to the local
unit of government. | 22 | | (e) A provision in any agreement between a local unit of
| 23 | | government and a public or private power or energy provider or | 24 | | other
utility provider is not enforceable to limit or prohibit | 25 | | any local unit of
government from exercising its authority | 26 | | under this Section. |
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| 1 | | (f) The record owner has signed a certification that the | 2 | | local unit of government has complied with the provisions of | 3 | | this Section, which shall be conclusive evidence as to | 4 | | compliance with these provisions, but shall not relieve any | 5 | | contractor, or local unit of government, from any potential | 6 | | liability. | 7 | | (g) This Section is additional and supplemental to county | 8 | | and
municipal home rule authority and not in derogation of such | 9 | | authority
or limitation upon such authority.
| 10 | | (Source: 10000HB2831eng.) | 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law or upon the effective date of House Bill 2831 of | 13 | | the 100th General Assembly, whichever occurs later.".
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