Topic: Key Provisions
Topic type:
Key Provisions summarizing the main points in the legislation.
Clean Energy Assessment Districts - Provisions of Act 45 – (Sec. 15e)
Full text of Act 45, the Vermont Energy Bill: http://www.leg.state.vt.us/docs/2010/Acts/ACT045.pdf
The section of the Energy Bill dealing directly with 'Clean Energy Assessment Districts':
http://www.veic.org/Libraries/Resource_Library_Documents/Act_45_PACE.sflb.ashx
Municipal powers expanded – Municipalities may
- act alone or in concert with other municipalities – 24 VSA § 2291 (23)
- incur debt or other financing to finance renewable energy or energy efficiency projects for property owners - 24 VSA § 2291 (23)
- Must follow underwriting criteria consistent with BISHCA standards - 24 VSA §3262 (a)
- Not liable for project performance failure - 24 VSA §3265 (a)
- May create reserve fund to use in event of foreclosures - 24 VSA §3269
- Funded by participating property owners – requires disclosure
- Capitalized in accordance with standards approved by BISHCA
- If use bonding to finance this, must pledge full faith and credit of municipality - 24 VSA §3265 (b)
Voters must approve the CEAD designation at annual or special meeting - 24 VSA §3261
- Only those who have entered into written agreement are subject to special assessment - 24 VSA §3262.
Process for property owners
- Analysis that quantifies project costs, energy savings and carbon impacts including annual cash-flow analysis. Analysis must be reviewed and approved by PSB-appointed energy efficiency utility (EEU) – i.e. Efficiency Vermont & BED. Analysis can be performed by EEU or other qualified (as determined by municipality) entity -24 VSA §3262(b).
- Written Agreement must provide: - 24 VSA §3262(c)
- Length of time to repay assessment. Length of time must be ≤ average life of measure (weighted by cost) as determined by EEU or qualified entity
- Provision for collecting past due balance at transfer of property - future payments able to continue as lien, unless property is foreclosed
- Risks associated with participation
- Analysis above recorded in Land records and disclosed to potential buyers – Recording Cost - 24 VSA §3262(d)
- Minimum of 30 days notice to existing mortgage holders -24 VSA §3262(e)
- Max amount (principal) for all properties – 24 VSA §3262(f) &(g)
- 15% of assessed value of property, (capped at 30K for residential)
- Assessment + Outstanding mortgages = ≤ 90% of assessed value
- For residential (1-4 family) owners, - 24 VSA §3262(g)
- must meet Lending requirements in Chapter 4 of Title 9 (interest ≤18%, disclosure, etc)
- max term = 20 years
- May enter into private agreement for installation or construction of project - 24 VSA §3264
- PAY Assessment
- Release of Lien after - 24 VSA §3268
- Full payment of value of assessment
- Foreclosure action
Eligible Projects
- Energy Efficiency Projects – List to be developed on or before July 1 of each year by EEU - 24 VSA §3267
- Renewable projects as defined in 30 VSA 8002(2) - “resource that is being consumed at a harvest rate at or below its natural regeneration rate” - not fossil fuels or nuclear, yes to methane and hydro ≤ 200MW
# # #
