S.F. No. 2720 Summary

• Authorizes cities, counties, and towns to establish voluntary financing programs that allow property owners to finance energy efficiency and renewable energy improvements through revenue bonds repaid via special assessments.

• Defines eligible improvements as building renovations reducing energy consumption, electrical vehicle charging infrastructure, and renewable energy systems (solar thermal, solar photovoltaic, wind, geothermal).

• Requires energy audits or feasibility studies, inspection of all installations with performance verification of at least 10 percent, and completion of all cost-effective improvements before financing repayment begins.

• Limits financing terms to 20 years maximum or the weighted average useful life of improvements, with principal not exceeding 10 percent of assessed property value or actual installation costs.

• Establishes revenue bonds as non-debt obligations of local governments, payable solely from special assessment revenues collected from benefited properties, with liability for assessments running with the property.