HB2831 Summary: Property Assessed Clean Energy Act

• Authorizes counties, cities, and villages to establish Property Assessed Clean Energy (PACE) programs that finance energy projects through property assessments repaid via property tax bills.

• Eligible energy projects include energy efficiency improvements, renewable energy systems, alternative energy vehicle charging infrastructure, and water conservation improvements on commercial, industrial, agricultural, and multi-family residential properties.

• Requires property owners to obtain mortgage holder consent before participating, prohibits participation if property has delinquent taxes or existing liens, and limits assessments to 25% of property value.

• Assessment payments constitute a lien on the property with the same priority as property tax liens, and the local government has foreclosure rights for non-payment.

• Permits local governments to issue bonds through a program administrator to finance projects, with bonds secured by assessment payments rather than as general government obligations.