HB 5116 Summary

• Expands the Property Assessed Clean Energy (PACE) program to include residential property in addition to commercial and industrial property by removing restrictions on property types.

• Removes the requirement that property owners obtain written consent from mortgage holders before participating in the PACE program.

• Authorizes local units of government to issue general obligation bonds to establish reserve funds and pay program creation costs, including legal fees, contract preparation, and preliminary energy audits.

• Expands the definition of renewable energy resources to include energy derived from the sun or thermal inertia of the earth, while excluding petroleum, nuclear material, natural gas, and coal.

• Requires local units establishing a PACE program to prepare a comprehensive report including contract terms, financing plans, interest rate methods, energy audits, quality assurance measures, and for projects exceeding $250,000, contractor performance guarantees.