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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 |
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1 | and
municipal home rule authority and not in derogation of such | ||||||
2 | authority
or limitation upon such authority.
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3 | (Source: 10000HB2831eng.) | ||||||
4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law or upon the effective date of House Bill 2831 of | ||||||
6 | the 100th General Assembly, whichever occurs later. |