HB 2206 Summary

• Authorizes cities, towns, and counties to establish water and energy improvement districts and programs to finance qualified energy or water efficiency improvements on privately-owned commercial, industrial, or residential property (5+ dwelling units) through voluntary contractual assessments.

• Allows property owners to repay financing for qualified improvements through assessments collected with property taxes, with financing provided by third parties or the local government; assessments become first-priority liens on the property.

• Requires local governments to adopt resolutions establishing programs, hold public hearings, prepare detailed reports including form contracts and underwriting standards, and verify property owners' financial ability and mortgage holder consent before participation.

• Mandates independent third-party reviews of baseline water/energy conditions and verification that completed projects operate as intended; allows property owners to purchase equipment directly or use leases and power purchase agreements.

• Permits local governments to issue non-general obligation bonds or notes secured by assessment payments or other lawful funds to finance qualified projects; prohibits local governments from conditioning permits or licenses on program participation.