AZ HB2646

Establishes a C-PACE (Commercial Property Assessed Clean Energy) program allowing municipalities and counties to finance energy efficiency, water conservation, renewable energy, and resiliency improvements on qualifying commercial, industrial, agricultural, and multifamily residential properties through special assessments.

Property owners voluntarily enter into special assessment agreements with local governments, which then assign the special assessment lien to private capital providers who finance the improvements; special assessments are repaid through installment payments collected by the local government or county treasurer.

Special assessment liens have priority superior to all liens except general property taxes and prior special assessments, run with the property through ownership changes, and are not accelerated by foreclosure or bankruptcy of the property owner.

Local governments establish program guidelines through resolution or ordinance after public hearing, including procedures for billing, collection, and enforcement of delinquent assessments using existing property tax collection procedures.

Authorizes local governments to charge administrative fees not exceeding the lesser of one percent of the special assessment financing principal or $50,000, and allows counties to recover collection expenses from county treasurers who participate in collecting assessments.