Regular Session 2015-2016 House Bill 2380 P.N. 3969

PRINTER'S NO. 3969

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2380

Session of

2015

INTRODUCED BY GALLOWAY, THOMAS, KINSEY, SCHREIBER, BROWNLEE,

SCHWEYER, ROZZI, COHEN, DAVIS, READSHAW, FARINA, ROSS AND

DONATUCCI, OCTOBER 3, 2016

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,

OCTOBER 3, 2016

AN ACT

Providing for the Property Assessed Clean Energy Program; and

authorizing municipalities and municipal authorities to

provide clean energy financing to residential and commercial

property owners.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Property

Assessed Clean Energy Program Act.

Section 2. Declaration of policy.

The General Assembly finds and declares as follows:

(1) The production and efficient use of energy will

continue to play a central role in the future of this

Commonwealth and the nation as a whole.

(2) The development, production and efficient use of

renewable energy will advance the security, economic well-

being and public and environmental health of this

Commonwealth and will contribute to the energy independence

of our nation.

(3) The financing of clean energy improvements and the

powers conferred and expenditures made pursuant to this act

will serve a valid public purpose. This act is expressly

declared to be in the public interest.

Section 3. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Energy efficiency improvement." Energy efficiency

technologies, products and activities that reduce or support the

reduction of energy consumption or support the production of

clean, renewable energy and that are or will be permanently

fixed to real property.

"Green wet weather infrastructure improvements."

Improvements on residential, commercial or industrial real

property and in buildings, whether the real property or

buildings are privately or publicly owned, that maintain,

restore or mimic natural systems to infiltrate, evapotranspirate

or recycle stormwater.

"Program." The Property Assessed Clean Energy Program

established under section 4.

"Water efficiency improvements." Improvements designed to

decrease water demand and usage on residential, commercial or

industrial real property and in buildings, whether the real

property or buildings are privately or publicly owned.

Section 4. Program.

(a) Program established.--The Property Assessed Clean Energy

Program is established whereby municipalities and municipal

authorities are authorized to operate a financing program in

20160HB2380PN3969 - 2 -

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

(1) Provide capital at the lowest possible cost for the

purpose of supporting conservation, energy efficiency

improvement, water efficiency improvement, wet weather

infrastructure improvement and renewable energy projects for

residential and commercial structures.

(2) Expand and simplify the process of obtaining small-

scale local energy project financing.

(3) Leverage multiple sources of public and private

capital through a unified and strategic funding mechanism.

(4) Provide technical and financing information to the

public and to businesses.

(5) Foster energy savings.

(6) Stimulate job growth.

(7) Help to substantially reduce carbon emissions.

(b) Program.--

(1) The governing body of a municipality or municipal

authority may establish by ordinance or resolution a low-cost

alternative energy financing program to assist owners of real

property within the municipality or in the case of a

municipal authority, within the boundaries of the

municipality or municipalities that organized the authority,

with installing and implementing alternative energy

technologies, including, but not limited to, solar

photovoltaic, solar thermal energy, wind energy, geothermal

energy or energy efficiency technologies, products and

activities and wet weather infrastructure improvements that

reduce energy or water consumption or support the production

of clean, renewable energy on owners' real property.

(2) A municipality may administer a financing program or

20160HB2380PN3969 - 3 -

opt to participate through a municipal authority. A

municipality that is governed by 53 Pa.C.S. Pt. VII Subpt. B

(relating to indebtedness and borrowing) may incur

indebtedness under 53 Pa.C.S. Pt. VII Subpt. B or may utilize

other funding, such as general fund revenue, for the purpose

of providing financing under this act. A municipal authority

shall provide financing under this act in accordance with its

authority under 53 Pa.C.S. Ch. 56 (relating to municipal

authorities). The financing of alternative energy

technologies pursuant to this act shall be treated as a

permitted project under 53 Pa.C.S. § 5607 (relating to

purposes and powers), and the provisions of 53 Pa.C.S. Ch. 56

shall apply to the program, except to the extent that 53

Pa.C.S. (relating to municipalities generally) is

inconsistent with the provisions of this act.

provide financing under this act to:

(1) Residential property owners, including low-income

residential property owners, for the financing of:

(i) Energy efficiency improvement projects.

(ii) Water efficiency improvement and wet weather

infrastructure improvement projects.

(iii) Renewable energy projects.

(2) Commercial property owners for the financing of:

(i) Energy efficiency improvement projects.

(ii) Water efficiency improvement and wet weather

infrastructure improvement projects.

(iii) Renewable energy projects with an electric

generating capacity of not more than 100 kilowatts.

(d) Assessments.--A municipality or a municipal authority

20160HB2380PN3969 - 4 -

undertaking clean energy financing may assess the cost of the

financing, plus reasonable administrative costs and at a

reasonable rate of interest, against property benefited or

improved thereby to the extent of the benefits, provided that

the assessments shall not be made unless all owners of the

property have consented in writing to the financing and

assessment. The municipality or a municipal authority may, by

ordinance or resolution, authorize payment of assessments in

equal installments over a fixed period of time.

(e) Claims.--Except as otherwise provided in this

subsection, claims to secure the payment of assessments shall be

entered in the prothonotary's office of the county at the same

time and in the same form and shall be filed and collected in

the same manner as municipal claims are filed and collected

pursuant to the act of May 16, 1923 (P.L.207, No.153), referred

to as the Municipal Claim and Tax Lien Law. Notwithstanding the

provisions of this section as to installment payments and the

collection thereof, the claim shall be filed for the entire

amount of the assessment.

(f) Default.--In the case of a default in the payment of any

installment, the municipality or municipal authority may not

obtain a judgment or otherwise initiate collection proceedings

for any amount in excess of installments that are delinquent for

a period of 60 days after the date due plus reasonable attorney

fees and costs of collection as may be authorized by law.

(g) Subsequent owner.--A seller shall notify a subsequent

purchaser of the existence of a lien for the assessment. The

lien for the assessment must be satisfied upon conveyance of the

property.

Section 5. Effective date.

20160HB2380PN3969 - 5 -

This act shall take effect immediately.

20160HB2380PN3969 - 6 -