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