LRB-3731/1
EVM:sbb&kjf:ph
2011 - 2012 LEGISLATURE
February 3, 2012 - Introduced by Senators Cowles, Holperin and Wanggaard,
cosponsored by Representatives Weininger, T. Larson, Spanbauer, Tauchen
and Molepske Jr. Referred to Committee on Energy, Biotechnology, and
Consumer Protection.
SB425,1,4 1An Act to renumber and amend 66.0627 (8); and to create 66.0627 (8) (b),
266.0627 (8) (c), 66.0627 (8) (d) and 66.0627 (8) (e) of the statutes; relating to:
3loans and repayment assistance by a political subdivision for energy and water
4improvements to premises and collection of the debt by special charge.
Analysis by the Legislative Reference Bureau
Under current law, a city, village, or town may impose a special charge against
real property for services rendered by allocating the cost of the service to the
properties that are served. Generally, a special charge is not payable in installments.
Also under current law, a city, village, town, or county (political subdivision) may
make a loan to, or enter into a loan repayment agreement with, an owner or lessee
of a premises for making or installing certain energy or water efficiency
improvements (property assessed clean energy or PACE program). The political
subdivision may collect a loan repayment under the PACE program as a special
charge. A special charge imposed under the PACE program may be collected in
installments.
Under this bill, a political subdivision that imposes a special charge under the
PACE program and allows the charge to be paid in installments may allow a third
party that has provided financing for the PACE program project to collect the
installments. Also under this bill, a delinquent PACE program special charge
installment becomes a lien on the property that benefits from the PACE program
project. Also under this bill, if the political subdivision funds a PACE program
project that costs $250,000 or more, the political subdivision must require the owner

of the premises to obtain a written guarantee from the contractor or project engineer
that the PACE program project will achieve a savings-to-investment ratio greater
than 1.0 or that the contractor or engineer will pay the owner any shortfall in
savings. For a PACE program project that costs less than $250,000, a political
subdivision may require a third party technical review of the projected savings before
making a PACE program loan or agreement.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB425, s. 1 1Section 1. 66.0627 (8) of the statutes is renumbered 66.0627 (8) (a) and
2amended to read:
SB425,2,153 66.0627 (8) (a) A political subdivision may make a loan, or enter into an
4agreement regarding loan repayments to a 3rd party for owner-arranged or
5lessee-arranged financing,
to an owner or lessee of a premises located in the political
6subdivision for making or installing an energy efficiency improvement, a water
7efficiency improvement, or a renewable resource application to the premises, or enter
8into an agreement with the owner or lessee regarding loan repayments to a 3rd party
9for owner-arranged or lessee-arranged financing for such purposes
. If a political
10subdivision makes such a loan or enters into such an agreement under this
11paragraph
, the political subdivision may collect the loan repayment as a special
12charge under this section. Notwithstanding the provisions of sub. (4), a special
13charge imposed under this subsection paragraph may be collected in installments
14and may be included in the current or next tax roll for collection and settlement under
15ch. 74 even if the special charge is not delinquent.
SB425, s. 2 16Section 2. 66.0627 (8) (b) of the statutes is created to read:
SB425,3,217 66.0627 (8) (b) A political subdivision that imposes a special charge under par.
18(a) may permit special charge installments to be collected by a 3rd party that has

1provided financing for the improvement or application and may require that the 3rd
2party inform the political subdivision if a special charge installment is delinquent.
SB425, s. 3 3Section 3. 66.0627 (8) (c) of the statutes is created to read:
SB425,3,74 66.0627 (8) (c) An installment payment authorized under par. (a) that is
5delinquent becomes a lien on the property that benefits from the improvement or
6application as of the date of delinquency. A lien under this paragraph has the same
7priority as a special assessment lien.
SB425, s. 4 8Section 4. 66.0627 (8) (d) of the statutes is created to read:
SB425,3,169 66.0627 (8) (d) A political subdivision that, under par. (a), makes a loan to, or
10enters an agreement with, an owner for making or installing an improvement or
11application that costs $250,000 or more shall require the owner to obtain a written
12guarantee from the contractor or project engineer that the improvement or
13application will achieve a savings-to-investment ratio of greater than 1.0 and that
14the contract or engineer will annually pay the owner any shortfall in savings below
15this level. The political subdivision may determine the method by which a guarantee
16under this paragraph is enforced.
SB425, s. 5 17Section 5. 66.0627 (8) (e) of the statutes is created to read:
SB425,3,2218 66.0627 (8) (e) If the making or installing of an improvement or application
19under par. (a) costs less than $250,000, the political subdivision may require a
203rd-party technical review of the projected savings of the improvement or
21application as a condition of making a loan or entering into an agreement under par.
22(a).
SB425, s. 6 23Section 6. Initial applicability.
SB425,4,2
1(1) This act first applies to loans made or agreements entered into on the
2effective date of this subsection.
SB425,4,33 (End)
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