Bill No.
11-13
Concerning: Commercial
Property
Assessed Clean Energy Program ­
Established
Revised:
10/28/2013
Draft No.
Introduced:
April 23, 2013
Enacted:
November 19.2013
Executive:
December 2, 2013
Effective:
March 3. 2014
Sunset Date:
...;N:..:.o~n..:::e~
_ _ _ _ __
Ch.
~.
Laws of Mont. Co.
2013
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Berliner
AN
ACT to:
(1) [[establish
a Commercial Property Assessed Clean Energy Program to assist qualifying
commercial property owners to make energy improvements;
(2) establish a revolving loan fund to provide property owners loans under the Program; and
(3)]] require the Executive to develop a plan to implement a Commercial Property Assessed
Clean Energy Program to assist qualifying commercial property owners with energy
improvements and;
al
generally amend the environmental sustainability law.
By adding
Montgomery County Code
Chapter 18A, Environmental Sustainability
Article
5
Section 18A-33[[, 18A-34, 18A-35, 18A-36, 18A-37, and 18A-38]]
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 11-13
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Sec. 1. Article 5 of Chapter 18A ([[Sections]] Section 18A-33[[, 18A-34,
18A-35, 18A-36, 18A-37, and 18A-38]]) is added as follows:
[[Article 5. Commercial Property Assessed Clean Energy Proe;ram]]
H18A-33. Definitions.
In
this Section, the following words have the meanings indicated:
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Commercial or industrial property
means any privately owned commercial or
industrial real property located in the County.
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Commercial Property Assessed Clean Energy Program
or
Program
means
!!
program that facilitates energy improvements and requires repayment through
!!
surcharge on the owner's property tax bill.
Department
means the Department of Finance.
Director
means the Director of the Department or the Director's designee.
Eligible cost
means the net cost of buying or installing an energy
improvement, including any part, component, or accessory necessary to
operate the improvement or device, less any amount received from
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public or
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private program because the improvement or device is or will be made or
installed.
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Energy efficiency improvement
means any equipment, device, or material that
is intended to decrease energy consumption, including:
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ill
insulation in any wall, roof, floor, foundation, or heating and cooling
distribution system;
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ill!!
storm windows or door, multi-glazed window or door, heat-absorbing
or heat-reflective glazed and coated window and door system; and
additional glazing, reduction in glass area, and other window and door
system modification that reduces energy consumption;
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an automated energy control system;
heating, ventilating, or air-conditioning and distribution system
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BILL
No. 11-13
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modification or replacement;
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caulking, weather-stripping, and air sealing;
replacement or modification of
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lighting fixture to reduce the energy
use of the lighting system;
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m
(2)
an energy recovery system;
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day lighting system;
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the installation or upgrade of electrical wiring or outlets to charge
motor vehicle that is fully or partially powered
Qy
electricity;
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D.ID
any measures to reduce the usage of water or increases the efficiency of
water usage; or
a.D
any other installation or modification of an equipment, device, or
material approved as
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utility cost-savings measure.
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Qualirying commercial real property
means any commercial or industrial
property that meets the qualifications established for the Commercial Property
Assessed Clean Energy Program.
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Renewable energy resource
means
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resource that naturally replenishes over
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human, not
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geological, time frame and that is ultimately derived from solar
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power, water power, or wind power.
Renewable energy resource
does not
include petroleum, nuclear, natural
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or coal. A renewable energy resource
comes from the sun or from thermal inertia of the earth and minimizes the
output oftoxic material in the conversion ofthe energy and includes:
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biomass;
solar and solar thermal energy;
wind energy;
geothermal energy; and
methane gas captured from
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landfill.
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Renewable energy system
means
fixture, product, device, or interacting
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BILL No. 11-13
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group of fixtures, products, or devices on the customer's side of the meter that
uses at least one renewable energy resource to generate electricity.
Renewable
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energy system
includes
f!:
biomass stove, but does not include an incinerator or
digester.]]
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[[18A-34. Commercial Property
Assessed
Clean Energy Pro2ram established.
ill
(Q)
Established.
The Director must create and administer
f!:
Commercial
Property Assessed Clean Energy Program.
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Bond issuance authorized.
The Director may issue
f!:
bond to finance
f!:
qualifying commercial real property to fund eligible costs to make an
energy efficiency improvement on the property.
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(£)
Owner-arranged or lessee-arranged financing.
The Director may enter
into an agreement regarding repayments to
f!:
third
Pf!:r!y
for owner­
arranged or lessee-arranged financing to fund eligible costs to make an
energy efficiency improvement on
f!:
qualifying commercial real
property. The agreement regarding repayments must provide for the
repayment of the cost of the energy efficiency improvement and any
cost of administering the Program through an assessment on the
property benefited. The financing may include the cost of materials and
labor necessary for installation, any permit fee, any inspection fee, any
application or administrative fee, any bank fee, and any other fee that
the owner may incur for the installation.]]
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[[18A-35. Eli2ibility;
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of funds.
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Eligibility.
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A property owner must have an energy audit or renewable energy
system feasibility analysis on the qualifying commercial real
property that assesses the expected energy cost savings of the
energy improvement over the useful life ofthe improvement.
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A property owner must obtain the consent of any existing
mortgage holder.
A property owner must agree to repay the amount financed
through the County
tax
bill for that property, as required by
Section 18A-36.
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An energy efficiency improvement must be permanently fixed to
!!
qualifying commercial real property.
ill
If the cost of an energy efficiency improvement exceeds
$250,000, the property owner must provide for ongomg
measurements to establish the savings realized from the
improvement.
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(Q)
Any contract to install an energy efficiency improvement that
exceeds $250,000 must require the contractor to guarantee to the
property owner that the improvement will achieve
!!
savings-to­
investment ratio greater than
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(hl
Property Tax Assessment
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An assessment may be imposed only under
!!
written contract
between the Department and the property owner. Before entering
into
!!
contract under the Program, the Department must verify
that:
(A)
there are no delinquent taxes, special assessments, or water
or sewer charges on the property; and
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an
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there are not delinquent assessments on the property under
!!
property assessed clean energy program.
The property tax assessment must not exceed the useful life of the
energy efficiency improvement.
The total amount financed must not exceed 10% of the assessed
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BILL
No. 11-13
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value of the qualifying commercial real property.
{£)
Disclosure to property owner.
The Director must disclose any cost or
risk associated with participating in the Program, including any risk
related to the failure of the property owner to
!mY
the property tax
assessment to
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property owner.]]
[[18A-36. Repayment of funds; lien.
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The owner of qualifying commercial real property must agree to repay
the financed amount through the County property tax bill for that
property.
(Q)
Under owner-arranged financing, the County may impose
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property tax
assessment and forward payments to the third
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financer or the
property owner may
!mY
the third
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financer directly.
{£)
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If the property owner sells the property, the seller must disclose that the
buyer must continue to repay the assessment through the property tax
bill.
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The amount financed and any accrued interest constitute
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first lien on
The
the real property to which the assessment applies until paid.
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amount financed and accrued interest are collectable
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suit or tax sale
like all other real property taxes, to the extent allowed
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State law. If
the property owner does not
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the amount financed and accrued
interest as required, the property may be certified to the Department of
Finance and the lien may be sold at the tax sale conducted
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the
County.]]
[[18A-37. Regulations.
The Executive must adopt regulations under Method
Program.]]
Sec. 1. Article 5 of Chapter 18A (Section 18A-33) is added as follows:
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to administer the
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Article 5. Commercial Property Assessed Clean Energy Program.
18A-33. Commercial Property Assessed Clean Energy Program.
W
Definition.
In
this Section,
Commercial Property Assessed Clean
Energy Program
or
Program
means a program that facilitates energy
improvements and requires repayment through a surcharge on the
owner's property tax bill.
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The Executive must. by May 19,2014. prepare a plan for implementing
a Commercial Property Assessed Clean Energy Program that analyzes
and provides recommendations on the following elements:
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(±l
standards for eligible energy and environmental improvements:
energy audit or project design review requirements:
procedures for monitoring project progress and post-installation
inspections:
program funding sources;
lending standards and priorities:
minimum and maximum loan amounts:
interest rates. terms. and conditions:
application
procedures.
including
necessary
supporting
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(1)
00
(2J
documentation:
criteria for adequate security;
Rrocedures to refer applicants to other public and private sources
of funds and incentives:
am
£ll)
procedures related to decisions on loan acceptance and denial. or
loan terms and conditions:
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procedures for nonpayment or default:
disclosure requirements for real estate transactions:
criteria for loan disbursement: and
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Approved:
any
additional requirements necessary for program operation or
security ofloan funds identified
by
the Executive.
cy Navarro, President, County Council
Date
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Approved:
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Isiah
~4fij2
ggett, County x cutive
Date
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This is a correct copy o/Council action.
Linda M. Lauer, Clerk ofthe Council
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