MI HB5640

Authorizes local units of government (counties, townships, cities, villages) to establish property assessed clean energy (PACE) programs to finance renewable energy systems and energy efficiency improvements on commercial and industrial real property.

Allows financing through voluntary property assessments, commercial lending, bond issuance, and other funding mechanisms, with repayment terms not exceeding the useful life of the energy project.

Requires local governments to adopt a resolution of intent, conduct a public hearing, and establish a formal program with specified terms including contract forms, eligibility requirements, interest rates, and quality assurance measures before implementing a PACE program.

Creates assessment liens on benefited property with the same priority as property tax liens, collected through regular tax bills, with local governments having full enforcement rights for delinquent payments.

Authorizes local governments to issue bonds or notes secured by assessment payments, reserves, or other available funds to finance energy projects, with bonds exempt from state and local taxation.