MI HB4992

Village governing bodies may acquire and finance energy conservation improvements to facilities and infrastructure through installment contracts, lease-purchase agreements, or by borrowing money, with costs paid from operating funds or energy savings.

Energy conservation improvements covered include HVAC systems, windows, roofs, insulation, controls, entrance/exit closures, information technology, and municipal utility improvements.

Financing agreements may extend up to 20 years or the useful life of improvements, whichever is less, with notes issued as full faith and credit obligations subject to the Revised Municipal Finance Act.

Lease-purchase agreements are exempted from the Revised Municipal Finance Act, treated as current operating expenses subject to annual appropriation, and terminate immediately if funds are no longer available.

Villages must report to the Department of Treasury within 60 days of project completion regarding facility names, baseline energy consumption, project costs, and estimated savings, then annually for 5 years after completion.