SENATE BILL No. 845

November 29, 2001, Introduced by Senator VAN REGENMORTER and referred to the

Committee on Finance.

A bill to amend 1846 RS 16, entitled

"Of the powers and duties of townships, the election and duties

of township officers, and the division of townships,"

by amending section 75b (MCL 41.75b), as amended by 1990 PA 230.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 75b. (1) A township board may provide for energy con-

2 servation improvements to be made to township facilities and may

3 pay for the improvements from operating funds of the township or

4 from the savings which THAT result from the energy conservation

5 improvements. Energy conservation improvements may include, but

6 are not limited to, heating system improvements, fenestration

7 improvements, roof improvements, the installation of any insula-

8 tion, the installation or repair of heating or air conditioning

9 controls, and entrance or exit way closures.

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1 (2) The township board may acquire 1 or more of the energy

2 conservation improvements described in subsection (1) by

3 installment contract or may borrow money and issue notes for the

4 purpose of securing funds for the improvements or may enter into

5 contracts in which the cost of the energy conservation improve-

6 ments is paid from a portion of the savings which THAT result

7 from the energy conservation improvements. These contractual

8 agreements may provide that the cost of the energy conservation

9 improvements are paid only if the energy savings are sufficient

10 to cover their cost. An installment contract or notes issued

11 pursuant to this subsection shall extend for a period of time not

12 to exceed 10 years. Notes issued pursuant to this subsection

13 shall be full faith and credit, tax limited obligations of the

14 township, payable from tax levies and the general fund as pledged

15 by the township board. The notes shall be ARE subject to the

16 municipal finance act, Act No. 202 of the Public Acts of 1943,

17 being sections 131.1 to 139.3 of the Michigan Compiled Laws

18 REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

19 141.2821. The notes shall bear interest at a rate determined by

20 the township board, not to exceed the rate provided in section 1a

21 of chapter III of the municipal finance act, Act No. 202 of the

22 Public Acts of 1943, being section 133.1a of the Michigan

23 Compiled Laws. This subsection does not limit in any manner the

24 borrowing or bonding authority of a township as provided by law.

25 (3) If energy conservation improvements are made as provided

26 in this section, the township board shall report the following

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1 information to the Michigan public service commission within 60

2 days of the completion of the improvements:

3 (a) Name of each facility to which an improvement is made

4 and a description of the conservation improvement.

5 (b) Actual energy consumption during the 12-month period

6 before completion of the improvement.

7 (c) Project costs and expenditures.

8 (d) Estimated annual energy savings.

9 (4) If energy conservation improvements are made as provided

10 in this section, the township board shall report to the Michigan

11 public service commission, by July 1 of each of the 5 years after

12 the improvements are completed, only the actual annual energy

13 consumption of each facility to which improvements are made. The

14 forms for the reports required by this section shall be furnished

15 by the Michigan public service commission.

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