Legislative Document No. 1748 S.P. 582 In Senate, May 16, 2019
An Act To Allow for the Establishment of Commercial Property Assessed Clean Energy Programs
Reference to the Committee on Energy, Utilities and Technology suggested and ordered printed.
DAREK M. GRANT Secretary of the Senate
Presented by Senator SANBORN, H. of Cumberland. Cosponsored by Representative STROM of Pittsfield and Senators: BLACK of Franklin, LUCHINI of Hancock, WOODSOME of York, Representatives: BERRY of Bowdoinham, HICKMAN of Winthrop, RYKERSON of Kittery, SHEATS of Auburn, WADSWORTH of Hiram.
Printed on recycled paper 1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 35-A MRSA c. 101 is enacted to read: 3 CHAPTER 101
4 COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY
5 §10201. Declaration of public purpose
6 It is declared that the establishment and implementation of commercial property 7 assessed clean energy, or commercial PACE, programs to finance energy savings 8 improvements are public purposes.
9 §10202. Definitions
10 As used in this chapter, unless the context otherwise indicates, the following terms 11 have the following meanings.
12 1. Commercial PACE. "Commercial PACE" means commercial property assessed 13 clean energy.
14 2. Commercial PACE agreement. "Commercial PACE agreement" means an 15 agreement that authorizes the creation of a commercial PACE assessment on qualifying 16 property and that is approved in writing by all owners of the qualifying property at the 17 time of the agreement.
18 3. Commercial PACE assessment. "Commercial PACE assessment" means an 19 assessment made against qualifying property to finance an energy savings improvement.
20 4. Commercial PACE ordinance. "Commercial PACE ordinance" means an 21 ordinance adopted by the legislative body of a municipality for the purpose of 22 participating in a commercial PACE program.
23 5. Commercial PACE program. "Commercial PACE program" means a program 24 established under this chapter by the trust, a 3rd party contracted by the trust or a 25 municipality, under which commercial property owners can finance energy savings 26 improvements on qualifying property.
27 6. Energy savings improvement. "Energy savings improvement" means an 28 improvement to qualifying property that, as determined by the trust, is new and 29 permanently affixed to qualifying property and that: 30 A. Will result in increased energy efficiency and substantially reduced energy use 31 and: 32 (1) Meets or exceeds applicable United States Environmental Protection Agency 33 and United States Department of Energy Energy Star program or similar energy 34 efficiency standards established or approved by the trust; or
Page 1 - 129LR1608(01)-1 1 (2) Involves weatherization of commercial or industrial property in a manner 2 approved by the trust; or 3 B. Involves a renewable energy installation, an electric thermal storage system or 4 any heating equipment that meets or exceeds standards established or approved by 5 the trust. 6 7. Qualifying property. "Qualifying property" means real commercial property 7 that: 8 A. Does not have a residential mortgage; and 9 B. Is located in a municipality that participates in a commercial PACE program 10 pursuant to this chapter. 11 8. Renewable energy installation. "Renewable energy installation" means a fixture, 12 product, system, device or interacting group of devices installed behind the meter at a 13 qualifying property, or on contiguous property under common ownership, that produces 14 energy or heat from renewable sources, including, but not limited to, photovoltaic 15 systems, solar thermal systems, highly efficient wood heating systems, geothermal 16 systems and wind systems.
17 9. Trust. "Trust" means the Efficiency Maine Trust established in section 10103.
18 §10203. Commercial PACE programs
19 1. Establishment; administration. The trust, a 3rd party contracted by the trust or a 20 municipality that has adopted a commercial PACE ordinance may establish a commercial 21 PACE program. Notwithstanding any other provision of law to the contrary, the trust 22 may use funds from its administrative fund or program funds to pay reasonable 23 administrative expenses of the trust, a 3rd party contracted by the trust or a municipality 24 incurred to carry out the purposes of this chapter.
25 2. Energy savings improvement financing. Financing for energy savings 26 improvements may be provided by any funds available for those improvements, except 27 for proceeds from the regional greenhouse gas initiative as defined in Title 38, section 28 580-A, subsection 19. If funds are provided by a nongovernmental lender, including, but 29 not limited to, banks and investment firms, the nongovernmental lender has the 30 contractual right to receive commercial PACE assessment payments. Commercial PACE 31 financing may cover up to 100% of an energy savings improvement's costs, including 32 audits, energy savings improvement development and application fees.
33 3. Program administration; municipal participation and liability. A commercial 34 PACE program must be administered as follows. 35 A. A municipality that has adopted a commercial PACE ordinance may: 36 (1) Administer the functions of a commercial PACE program, including, but not 37 limited to, entering into commercial PACE agreements with commercial property 38 owners and collecting commercial PACE assessments; or
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