Michigan Laws 460.939 – Report; contents; availability
Current as of: 2023 | Check for updates
|
Other versions
Terms Used In Michigan Laws 460.939
- Anaerobic digester: means a device for optimizing the anaerobic digestion of biomass for the purpose of recovering biofuel for energy production. See Michigan Laws 460.933
- Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
- Contract: A legal written agreement that becomes binding when signed.
- Energy efficiency improvement: means equipment, devices, or materials intended to decrease energy consumption, including, but not limited to, all of the following:
(i) Insulation in walls, roofs, floors, foundations, or heating and cooling distribution systems. See Michigan Laws 460.933Energy project: means the installation or modification of an energy efficiency improvement or the acquisition, installation, or improvement of a renewable energy system or anaerobic digester energy system. See Michigan Laws 460.933 Local unit of government: means a county, township, city, or village. See Michigan Laws 460.933 Mortgage: The written agreement pledging property to a creditor as collateral for a loan. program: means a program as described in section 5(2). See Michigan Laws 460.933 Property: means privately owned commercial or industrial real property located within the local unit of government. See Michigan Laws 460.933 Record owner: means the person or persons possessed of the most recent fee title or land contract vendee's interest in property as shown by the records of the county register of deeds. See Michigan Laws 460.933 Renewable energy system: means a fixture, product, device, or interacting group of fixtures, products, or devices on the customer's side of the meter that use 1 or more renewable energy resources to generate electricity. See Michigan Laws 460.933
(1) The report on the proposed program required under section 7 shall include all of the following:
(a) A form of contract between the local unit of government and record owner governing the terms and conditions of financing and assessment under the program.
(b) Identification of an official authorized to enter into a program contract on behalf of the local unit of government.
(c) A maximum aggregate annual dollar amount for all financing to be provided by the local unit of government under the program.
(d) An application process and eligibility requirements for financing energy projects under the program.
(e) A method for determining interest rates on assessment installments, repayment periods, and the maximum amount of an assessment.
(f) Explanation of how assessments will be made and collected consistent with section 13(2).
(g) A plan for raising capital to finance improvements under the program. The plan may include any of the following:
(i) The sale of bonds or notes, subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(ii) Amounts to be advanced by the local unit of government through funds available to it from any other source.
(iii) Owner-arranged financing from a commercial lender. Under owner-arranged financing, the local unit of government may impose an assessment pursuant to section 11 and forward payments to the commercial lender or the record owner may pay the commercial lender directly.
(h) Information regarding all of the following, to the extent known, or procedures to determine the following in the future:
(i) Any reserve fund or funds to be used as security for bonds or notes described in subdivision (g).
(ii) Any application, administration, or other program fees to be charged to record owners participating in the program that will be used to finance costs incurred by the local unit of government as a result of the program.
(i) A requirement that the term of an assessment not exceed the useful life of the energy project paid for by the assessment.
(j) A requirement for an appropriate ratio of the amount of the assessment to the assessed value of the property.
(k) A requirement that the record owner of property subject to a mortgage obtain written consent from the mortgage holder before participating in the program.
(l) Provisions for marketing and participant education.
(m) Provisions for adequate debt service reserve fund.
(n) Quality assurance and antifraud measures.
(o) A requirement that a baseline energy audit be conducted before an energy project is undertaken, to establish future energy savings. After the energy project is completed, the local unit of government shall obtain verification that the renewable energy system, anaerobic digester energy system, or energy efficiency improvement was properly installed and is operating as intended.
(p) For an energy project financed with more than $250,000.00 in assessments, both of the following:
(i) A requirement for ongoing measurements that establish the savings realized by the record owner from the energy project.
(ii) A requirement that, in the contract for installation of the energy project, the contractor guarantee to the record owner that the energy project will achieve a savings-to-investment ratio greater than 1 and agree to pay the record owner, on an annual basis, any shortfall in savings below this level.
(2) The local unit of government shall make the report available for review on the local unit of government’s website or at the office of the clerk or the official authorized to enter contracts on behalf of the local unit of government under the property assessed clean energy program.