Vermont S 138: An act relating to commercial property-assessed clean energy projects

Bill Text

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S.138
Introduced by Senator Chittenden
Referred to Committee on Natural Resources and Energy
Date: April 1, 2025
Subject: Municipal and county government; energy; renewable energy;
property-assessed clean energy
Statement of purpose of bill as introduced: This bill proposes to allow
commercial and industrial buildings to qualify for property-assessed clean
energy projects.
An act relating to commercial property-assessed clean energy projects
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 24 V.S.A. chapter 87, subchapter 2 is amended to read:
Subchapter 2. Property-Assessed Clean Energy
§ 3261. PROPERTY-ASSESSED CLEAN ENERGY DISTRICTS;
APPROVALOF VOTERS
(a)(1) In this subchapter, “district” means a property-assessed clean energy
district.
(2) The legislative body of a town, city, or incorporated village may
submit to the voters of the municipality the question of whether to designate
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the municipality as a property-assessed clean energy district. In a district, only
those property owners who have entered into written agreements with the
municipality under section 3262 of this title would be subject to a special
assessment, as set forth in section 3255 of this title.
(b) Upon a vote of approval by a majority of the qualified voters of the
municipality voting at an annual or special meeting duly warned for that
purpose, the municipality may incur indebtedness for or otherwise finance
projects relating to renewable energy, as defined in 30 V.S.A. § 8002(17), or to
eligible projects relating to energy efficiency as defined by section 3267 of this
title, undertaken by owners of dwellings, as defined in Section 103(v) of the
federal Truth in Lending Act, or by owners of commercial or industrial
buildings within the boundaries of the town, city, or incorporated village.
(c) As used in this chapter, “commercial or industrial building” means any
building other than a residential dwelling.
§ 3262. WRITTEN AGREEMENTS; CONSENT OF PROPERTY
OWNERS;
ENERGY SAVINGS ANALYSIS
(a) Upon an affirmative vote made pursuant to section 3261 of this title and
the performance of an energy savings analysis pursuant to subsection (b) of
this section, an owner of a dwelling, as defined in Section 103(v) of the federal
Truth in Lending Act, or an owner of a commercial or industrial building,
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BILLAS INTRODUCED AND PASSED BY SENATE S.138
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within the boundaries of a district may enter into a written agreement with the
municipality that shall constitute the owner’s consent to be subject to a special
assessment, as set forth in section 3255 of this title. Entry into such an
agreement may occur only after January 1, 2012. A participating municipality
shall follow underwriting criteria established by the Department of Financial
Regulation, and shall establish other qualifying criteria to provide an adequate
level of assurance that property owners will have the ability to meet
assessment payment obligations. A participating municipality shall refuse to
enter into a written agreement with a property owner who fails to meet the
underwriting or other qualifying criteria.
* * *
Sec. 2. EFFECTIVE DATE
This act shall take effect on July 1, 2025.
Sec. 1. 24 V.S.A. chapter 87, subchapter 3 is added to read:
Subchapter 3. Commercial Property-Assessed Clean Energy
§ 3275. COMMERCIAL PROPERTY-ASSESSED CLEAN ENERGY
DISTRICTS; APPROVAL OF LEGISLATIVE BODY
(a)(1) The legislative body of a town, city, or incorporated village may vote
to designate the municipality as a commercial property-assessed clean energy
district or C-PACE district. In a district, only those property owners who have
entered into written agreements with the municipality under section 3276 of
this title would be subject to a special assessment, as set forth in section 3255
of this title.
(2) In this subchapter, “district” means a commercial property-assessed
clean energy district which includes the entire municipality.
(b) Upon a vote of approval by a majority of the legislative body of the
municipality voting at a duly warned meeting, the municipality shall allow for
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the imposition of a special assessment to secure private financing for property
owners for projects relating to renewable energy, as defined in 30 V.S.A. §
8002(17), or to eligible projects relating to energy efficiency as defined by
section 3267 of this title, undertaken by owners of commercial or industrial
buildings within the boundaries of the municipality.
(c) As used in this chapter, “commercial or industrial building” means any
building other than a residential dwelling with fewer than five units.
§ 3276. WRITTEN AGREEMENTS; CONSENT OF PROPERTY
OWNERS; ENERGY S