1Providing for the Property Assessed Clean Energy Program; and
2authorizing municipalities and municipal authorities to
3provide clean energy financing to residential and commercial
4property owners.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Short title.

8This act shall be known and may be cited as the Property
9Assessed Clean Energy Program Act.

10Section 2. Declaration of policy.

11The General Assembly finds and declares as follows:

12(1) The production and efficient use of energy will
13continue to play a central role in the future of this
14Commonwealth and the nation as a whole.

15(2) The development, production and efficient use of
16renewable energy will advance the security, economic well-
17being and public and environmental health of this
18Commonwealth and will contribute to the energy independence

1of our nation.

2(3) The financing of clean energy improvements and the
3powers conferred and expenditures made pursuant to this act
4will serve a valid public purpose. This act is expressly
5declared to be in the public interest.

6Section 3. Definitions.

7The following words and phrases when used in this act shall
8have the meanings given to them in this section unless the
9context clearly indicates otherwise:

10"Energy efficiency improvement." Energy efficiency
11technologies, products and activities that reduce or support the
12reduction of energy consumption or support the production of
13clean, renewable energy and that are or will be permanently
14fixed to real property.

15"Green wet weather infrastructure improvements."
16Improvements on residential, commercial or industrial real
17property and in buildings, whether the real property or
18buildings are privately or publicly owned, that maintain,
19restore or mimic natural systems to infiltrate, evapotranspirate
20or recycle stormwater.

21"Program." The Property Assessed Clean Energy Program
22established under section 4.

23"Water efficiency improvements." Improvements designed to
24decrease water demand and usage on residential, commercial or
25industrial real property and in buildings, whether the real
26property or buildings are privately or publicly owned.

27Section 4. Program.

28(a) Program established.--The Property Assessed Clean Energy
29Program is established whereby municipalities and municipal
30authorities are authorized to operate a financing program in

1accordance with this act. The goals of the program are to:

2(1) Provide capital at the lowest possible cost for the
3purpose of supporting conservation, energy efficiency
4improvement, water efficiency improvement, wet weather
5infrastructure improvement and renewable energy projects for
6residential and commercial structures.

7(2) Expand and simplify the process of obtaining small-
8scale local energy project financing.

9(3) Leverage multiple sources of public and private
10capital through a unified and strategic funding mechanism.

11(4) Provide technical and financing information to the
12public and to businesses.

13(5) Foster energy savings.

14(6) Stimulate job growth.

15(7) Help to substantially reduce carbon emissions.

16(b) Program.--

17(1) The governing body of a municipality or municipal
18authority may establish by ordinance or resolution a low-cost
19alternative energy financing program to assist owners of real
20property within the municipality or in the case of a
21municipal authority, within the boundaries of the
22municipality or municipalities that organized the authority,
23with installing and implementing alternative energy
24technologies, including, but not limited to, solar
25photovoltaic, solar thermal energy, wind energy, geothermal
26energy or energy efficiency technologies, products and
27activities and wet weather infrastructure improvements that
28reduce energy or water consumption or support the production
29of clean, renewable energy on owners' real property.

30(2) A municipality may administer a financing program or

1opt to participate through a municipal authority. A
2municipality that is governed by 53 Pa.C.S. Pt. VII Subpt. B
3(relating to indebtedness and borrowing) may incur
4indebtedness under 53 Pa.C.S. Pt. VII Subpt. B or may utilize
5other funding, such as general fund revenue, for the purpose
6of providing financing under this act. A municipal authority
7shall provide financing under this act in accordance with its
8authority under 53 Pa.C.S. Ch. 56 (relating to municipal
9authorities). The financing of alternative energy
10technologies pursuant to this act shall be treated as a
11permitted project under 53 Pa.C.S. § 5607 (relating to
12purposes and powers), and the provisions of 53 Pa.C.S. Ch. 56
13shall apply to the program, except to the extent that 53
14Pa.C.S. (relating to municipalities generally) is
15inconsistent with the provisions of this act.

16(c) Recipients.--A municipality or municipal authority may
17provide financing under this act to:

18(1) Residential property owners, including low-income
19residential property owners, for the financing of energy
20efficiency improvement, water efficiency improvement, wet
21weather infrastructure improvement and renewable energy
22projects.

23(2) Commercial property owners for the financing of:

24(i) Energy efficiency improvement projects.

25(ii) Water efficiency improvement and wet weather
26infrastructure improvement.

27(iii) Renewable energy projects with an electric
28generating capacity of not more than 100 kilowatts.

29(d) Assessments.--A municipality or a municipal authority
30undertaking clean energy financing may assess the cost of the

1financing, plus reasonable administrative costs and at a
2reasonable rate of interest, against property benefited or
3improved thereby to the extent of the benefits, provided that
4the assessments shall not be made unless all owners of the
5property have consented in writing to the financing and
6assessment. The municipality or a municipal authority may, by
7ordinance or resolution, authorize payment of assessments in
8equal installments over a fixed period of time.

9(e) Claims.--Except as otherwise provided in this 
10subsection, claims to secure the payment of assessments shall be 
11entered in the prothonotary's office of the county at the same 
12time and in the same form and shall be filed and collected in 
13the same manner as municipal claims are filed and collected 
14pursuant to the act of May 16, 1923 (P.L.207, No.153), referred 
15to as the Municipal Claim and Tax Lien Law. Notwithstanding the 
16provisions of this section as to installment payments and the 
17collection thereof, the claim shall be filed for the entire 
18amount of the assessment.

19(f) Default.--In the case of a default in the payment of any
20installment, the municipality or municipal authority shall not
21obtain a judgment or otherwise initiate collection proceedings
22for any amount in excess of installments that are delinquent for
23a period of 60 days after the date due plus reasonable attorney
24fees and costs of collection as may be authorized by law.

25(g) Subsequent owner.--A seller shall notify a subsequent
26purchaser of the existence of a lien for the assessment. The
27lien for the assessment must be satisfied upon conveyance of the
28property.

29Section 5. Effective date.

30This act shall take effect immediately.