December 8, 2009, Introduced by Reps. Sheltrown, Scripps, Mayes, McDowell, LeBlanc, Nerat, Polidori, Melton, Ball, Lindberg, Meadows and Cushingberry and referred to the Committee on Energy and Technology.
A bill to authorize a local unit of government to create a
program to promote green energy use; to authorize a local unit of
government to issue bonds and make loans from the proceeds of those
bonds for certain purposes; to provide for the repayment of loans;
and to prescribe the powers and duties of certain officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "local
green energy bond act".
Sec. 3. (1) A local unit of government may create and operate
a program to promote green energy use by homeowners and businesses
located in the local unit of government.
(2) In order to fund a program as provided in subsection (1),
a local unit of government may issue bonds as provided in this act.
The proceeds of those bonds shall be used to make loans to
homeowners and businesses located in the local unit of government.
A loan under this act shall be used by the homeowner or business
only for 1 or more of the following purposes:
(a) Electrical production from wind energy, solar energy, or
geothermal energy for the owner's home or business.
(b) Energy efficiency improvements that are affixed to an
owner's home or business including, but not limited to, any of the
following:
(i) Windows and doors.
(ii) Insulation.
(iii) Roofs, including metal and asphalt.
(iv) HVAC equipment.
(v) Nonsolar water heaters.
(vi) Biomass stoves.
(vii) Geothermal heat pumps.
(viii) Solar panels.
(ix) Solar water heaters.
(x) Small wind energy systems.
(xi) Fuel cells.
Sec. 5. (1) A local unit of government may issue bonds secured
by the repayment of loans to fund a program as described in section
3.
(2) The bonds issued under this act shall be approved by the
department of treasury before their issuance, but shall not
otherwise be subject to the provisions of the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(3) The bonds issued under this act shall not be general
obligations of the local unit of government issuing the bonds. The
bonds are declared to be issued for an essential public and
governmental purpose, and, together with interest on those bonds
and income from those bonds, shall be exempted from all taxes.
Sec. 7. A local unit of government that issues bonds to make
loans to homeowners and businesses in the local unit of government
under this act shall establish a loan application and review
process and the criteria for approving a loan application.
Sec. 9. (1) A loan made to a homeowner or business under this
act is subject to all of the following conditions:
(a) The term of the loan shall not exceed 20 years.
(b) The interest rate on the loan shall be 0.5% higher than
the interest on the bond, fixed or variable.
(c) The amount of the loan to the homeowner or business shall
not exceed $10.00 for every square foot of the home or business.
(2) Loan repayments shall be included in each summer and
winter tax bill issued under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, and shall be collected at the same time
and in the same manner as taxes collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155. A delinquent
loan payment is not the basis for forfeiture, foreclosure, and sale
of property for delinquent taxes under the general property tax
act, 1893 PA 206, MCL 211.1 to 211.155.
(3) The local unit of government may place a lien on the
owner's property or business to ensure repayment of the loan.
Sec. 11. As used in this act, "local unit of government" means
a county, city, village, or township.