Chapter 361
2013 -- S 0900 SUBSTITUTE A
Enacted 07/15/2013
A N A C T
RELATING TO
PUBLIC UTILITIES AND CARRIERS - PROPERTY ASSESSED CLEAN ENERGY - RESIDENTIAL
PROGRAM
Introduced By: Senators Conley, Pearson, Sosnowski, Miller, and Goodwin
Date Introduced: May 02, 2013
It is enacted by the
General Assembly as follows:
SECTION 1. Title 39 of the General Laws entitled
"PUBLIC UTILITIES AND
CARRIERS" is hereby
amended by adding thereto the following chapter:
CHAPTER
26.5
PROPERTY
ASSESSED CLEAN ENERGY - RESIDENTIAL PROGRAM
39-26.5-1.
Legislative findings. -- It is hereby found and
declared:
(1) Investing in
energy efficiency and renewable energy improvements is financially
beneficial over time, as well as good for the environment;
(2) Upfront costs are
a barrier to investments in major energy improvements;
(3) There are few
financing options available that combine easy qualification, an
attractive interest rate, and a relatively long repayment term;
(4) Property-Assessed
Clean Energy, hereinafter referred to as PACE, is a voluntary
financing mechanism which allows homeowners to access
affordable, long-term financing for
energy upgrades to their property;
(5) PACE financing
offers incremental special assessment payments that are low and
fixed for up to twenty (20) years, with no upfront costs;
the PACE special assessment fees
transfer to the new owner when a property is sold, or the
assessment obligation can be paid in full
at transfer; and electricity and fuel bills are lower
than they would be without the improvements;
and
(6) PACE financing
will allow
help meet community sustainability, greenhouse gas
emissions reductions, and energy goals and
will provide a valuable service to the citizens of their
communities.
39-26.5-2.
Definitions. – As used in this chapter, the
following definitions apply:
(1)
"Dwelling" means a residential structure or mobile home which
contains one to four
(4) family housing units, or
individual units of condominiums or cooperatives.
(2) "Eligible
net metering system" means a facility generating electricity as defined in
section 39-26.4-2.
(3) "Eligible
renewable energy resources" means resources as defined in section 39-26-5.
(4) "Energy
efficiency projects" means those projects that are eligible under section
39-1-
27.7 or projects that have
been defined as eligible in the PACE rules and regulations.
(5) "Loan loss
reserve fund (LRF)" means funds set aside to cover losses in the event of
loan defaults.
(6)
"Municipality and towns and cities" means any
powers set forth in title 45 of the general laws.
(7) "Net
metering" means using electricity as defined in section 39-26.4-2.
(8) "Office of
energy resources" or "office" means the
resources within the department of administration.
(9) "PACE
assessment" means the special assessment placed on a PACE property in
accordance with section 39-26.5-4.
(10) "PACE
municipality" means a municipality voluntarily designated by its city or
town council as a property-assessed clean energy
municipality.
(11) "PACE
property" means any property which is the subject of a written agreement
entered into pursuant to section 39-26.5-4.
(12)
"Project" means a distinct installation of an eligible energy
efficiency system or
eligible renewable energy net metering system.
(13)
"Property-Assessed Clean Energy" is a means for qualifying homeowners
to finance
energy efficiency and renewable energy improvements to their
property.
39-26.5-3.
Property-assessed clean energy municipality. -- A town or city
council by
resolution may designate the municipality as a property-assessed
clean energy municipality, also
referred to as a "PACE municipality."
39-26.5-4. Written agreements, consent of dwelling owners, energy
savings analysis.
-- After January 1, 2014, a PACE municipality may enter
into a written agreement with any
dwelling owner within the municipality who has:
(1) An energy savings
analysis approved by the office or an analysis performed under
plans approved by the commission pursuant to section
39-1-27.7;
(2) An energy
efficiency and/or renewable energy project description approved by the
office; and
(3) A commitment from
a financial institution to provide funds to complete the project.
The agreement will
require the dwelling owner to consent to be subject to the terms of the
lien as set forth in section 39-26.5-6.
39-26.5-5.
Rights of dwelling owners. -- A dwelling owner who has
entered into a
written agreement with a municipality under section 39-26.5-4
may enter into a contract for the
installation or construction of a project relating to renewable
energy as defined in section 39-26-
5, or relating to energy efficiency as defined in
section 39-1-27.7 or as defined by the office under
subsection 39-26.5-8(a).
39-26.5-6.
Priority of PACE assessment lien. -- (a) A lien
for a PACE assessment shall
be: subordinate to all liens on the property in
existence at the time the lien for the assessment is
filed; subordinate to a first mortgage on the property
recorded after such filing; and superior to
any other lien on the property recorded after such
filing. This subsection shall not affect the status
or priority of any other municipal or statutory lien;
(b) At the time of a
transfer of property ownership, including foreclosure, the past due
balances of any special assessment under this chapter shall be
due for payment. In the event of a
foreclosure action, the past due balances shall include all
payments on a PACE assessment that
are due and unpaid as of the date of the foreclosure.
Unless otherwise agreed, all payments on the
PACE assessment that become due after the date of
transfer by foreclosure or otherwise shall
remain a lien on the PACE property and shall be the
responsibility of the transferee.
39-26.5-7. Loan
loss reserve fund. -- (a) The office
shall contract with an approved
financial institution to create a Loan Loss Reserve Fund,
(LRF).
(b) In the event that
there is a foreclosure of a PACE property and the proceeds resulting
from a foreclosure are insufficient to pay the past due
balances on the PACE assessment, after all
superior liens have been satisfied, then payment from the LRF
shall be made from the LRF in the
amount of the past due balances on the PACE assessment. The
LRF shall be administered by the
financial institution selected by the office, with the office
providing oversight of the LRF.
39-26.5-8.
Assistance to municipalities. -- The office
shall:
(1) Commencing
on/or before July 1, 2014 and thereafter, publish on its website a list of
the types of eligible energy efficiency and renewable
energy projects; and
(2) Provide
information concerning implementation of this chapter to each municipality
that requests such information;
(3) Offer
administrative and technical assistance to and offer to manage the PACE
program on behalf of any PACE municipality that voluntarily participates
in the PACE program;
and
(4) Develop and offer
informational resources to help residents make best use of the
PACE program.
39-26.5-9.
Monitoring, reporting, compliance, underwriting criteria.
-- The office
shall determine compliance with the underwriting criteria,
standards, and procedures established
within this chapter and shall include an accounting of the
PACE program in the annual report due
on April 15th of each year to the general assembly under
subsection 39-2-1.2(k). The report shall
describe the implementation and operation of the PACE program
including program receipts,
disbursements, and earnings.
39-26.5-10.
Operations. -- The PACE program shall operate
in accordance with all
generally accepted banking practices and real estate practices,
except as specifically stated within.
39-26.5-11.
Rules and regulations. -- The office is
authorized to promulgate necessary
rules and regulations in order to assure that PACE programs
shall be successfully instituted in
implementation of any other energy program in whose coordination the
office is involved.
SECTION 2. This act shall take effect upon passage.
=======
LC02393/SUB A
=======