PRINTER'S NO. 2416

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1722

Session of

2017

INTRODUCED BY HARPER, COMITTA, WATSON, M. QUINN, MICCARELLI,

MURT, BRIGGS, FRANKEL, V. BROWN, SOLOMON, O'BRIEN, WARREN,

BULLOCK, CHARLTON, BARRAR AND SANTORA, SEPTEMBER 14, 2017

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 12 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

Sec.

4301. Purpose of chapter.

4302. Definitions.

4303. Establishment of program.

4310. Joint implementation.

§ 4301. Purpose of chapter.

This chapter authorizes the establishment of property

assessed clean energy programs in this Commonwealth, which is

important so that owners of commercial and industrial properties

can obtain low-cost, long-term financing for energy efficiency,

water conservation and renewable energy projects.

§ 4302. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

Alternative Energy Portfolio Standards Act when qualified

project applications are approved.

"Assessment." A charge against the real property within a

district:

(1) Levied and collected by the county or municipality

that establishes the district.

(2) Made only upon the real property whose owner has

executed a written agreement with the governing body agreeing

to the charge.

(3) The proceeds of which can only be used to fund local

note, mortgage, loan, deed of trust, instrument, refunding note

or other evidence of indebtedness or obligation used to finance

a qualified project.

"Clean energy project." A project that does any of the

following:

(1) Replaces or supplements an existing energy system

that utilizes nonrenewable energy with an alternative energy

system.

(2) Facilitates the installation of an alternative

energy system in an existing building or a major renovation

of a building.

(3) Facilitates the retrofit of an existing building to

meet high-performance building standards.

program.

"Local financing." A bond provided or facilitated by a

municipality, county, district, economic development

corporation, related authority or a government sponsored entity.

The term does not include general obligation bonds.

"Municipality." A city, borough, incorporated town or

township.

"Owner financing." A bond provided by a real property owner.

"Property assessed clean energy program" or "program." A

means of financing qualified projects in a district through an

contracted responsibilities through the use of qualified

subcontractors.

(2) Possesses all valid, current licenses, registrations

or other certificates required for the contractor or its

employees by Federal, State or local law necessary for the

type of work required for a qualified project.

(3) Does not have any outstanding liability to the

county or municipality in which the qualified project is

located in the form of tax obligations, fines or other fees,

unless the contractor or subcontractor has entered into and

workers' compensation insurance and unemployment insurance.

"Qualified project." The installation or modification of a

permanent improvement fixed to real property that is a clean

water usage, the installation or modification of which is

performed by a qualified party in a district. The term includes

installation of alternative energy generating equipment affixed

to the land or building.

"Real property." Agricultural, commercial or industrial land

or a building owned by an individual, partnership, limited

liability corporation, corporation or nonprofit. The term does

not include multi-family housing or residential property.

"Water conservation project." A project that reduces the

usage of water or increases the efficiency of water usage.

shall include the following:

(1) Requirement of all clean energy projects to comply

with national energy efficiency standards.

(2) Development of criteria and procedures to determine

the eligibility of real property and owners for participation

in the program.

(3) Other measures as needed to satisfy the requirements

of this chapter or to ensure that the program is effective,

efficient and fair to property owners.

(b) Notice to municipalities.--A county that establishes a

§ 4304. Notice to mortgage holder required for participation.

Before real property may be subject to an assessment under

the program and begin local financing or owner financing of a

qualified project, the following must occur:

(1) The holder of any existing lien on the real property

intention to participate in the program and acknowledge in

writing to the property owner and the county or municipality

that established the program that the holder has received the

notice.

(2) The holder of any existing lien on the real property

must provide written consent to the property owner and the

county or municipality that established the program that the

property may participate in the program.

§ 4305. Review required.

(a) General rule.--A program shall require for each proposed

qualified project a scope of work, energy baseline or water

usage baseline and the projected energy savings or water usage

reductions in order to establish the viability of the qualified

was properly completed.

§ 4306. Notice.

(a) Notice.--A county or municipality that establishes a

project financed through an assessment.

(b) Contents of notice.--The notice under subsection (a)

shall contain:

(1) The legal description of the property.

(2) The name of each property owner.

(3) The total amount of the qualified project and a

complete description of the qualified project.

(4) The assessment needed to satisfy the bond.

(5) A reference to the statutory assessment lien

provided under this chapter.

(1) Is a first and prior lien against the real property

on which the assessment is imposed from the date on which the

notice of contractual assessment is recorded and until the

assessment, interest or penalty is satisfied.

(2) Has the same priority status as a lien for any other

tax imposed by any county, municipality or agency of the

Commonwealth and is treated as such.

(3) In the event the property owner fails to pay

assessments due, both past due and the total assessment on

the property may be discharged, compromised or abated in the

(b) Lien.--

(1) The lien runs with the land, and that portion of the

assessment under the assessment contract that has not yet

become due is not eliminated by foreclosure of a property tax

lien.

(2) No assessment may be accelerated or extinguished

until fully paid.

(c) Enforcement.--The assessment lien may be enforced by the

county or municipality in the same manner that a property tax

lien against real property may be enforced by the county or

recover costs and expenses, including attorney fees, in a suit

to collect a delinquent installment of an assessment in the same

manner as in a suit to collect a delinquent property tax.

§ 4308. Collection of assessments.

establishes a district shall collect the assessments for the

district using the present tax collection process and remit for

payment of the local financing or owner financing.

§ 4309. Bonds.

(a) Issuance.--Local financing or owner financing may be

used to issue bonds to finance qualified projects.

(b) Restrictions.--Bonds issued under this chapter may not

be general obligations of the county or municipality.

(c) Use of proceeds.--Funds generated from the issuance of a

bond may only be used for the following purposes:

(2) Infrastructure related to and necessary for a

qualified project.

for a qualified project.

(4) Payment of normal and customary issuance and closing

fees of a bond.

(5) Normal and customary administrative fees necessary

to continue operations of the county or municipality

financing agency. The fees can include, but are not limited

to, audit and application fees.

§ 4310. Joint implementation.