7 LONG TITLE
8 General Description:
9 This bill enacts definitions in the Commercial Property Assessed Clean Energy Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ enacts definitions; and
13 ▸ makes technical corrections.
14 Money Appropriated in this Bill:
16 Other Special Clauses:
18 Utah Code Sections Affected:
20 11-42a-102, as last amended by Laws of Utah 2019, Chapter 399
22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 11-42a-102 is amended to read:
24 11-42a-102. Definitions.
25 (1) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
26 the standards established in bin 4 Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
28 district levies on private property under this chapter to cover the costs of an energy efficiency
29 upgrade, a renewable energy system, or an electric vehicle charging infrastructure.
30 (b) "Assessment" does not constitute a property tax but shares the same priority lien as
31 a property tax.
33 Section 11-42a-206.
35 area that directly benefits from improvements.
38 directly or indirectly or held for one of the following purposes or activities, regardless of
39 whether the purpose or activity is for profit:
40 (i) commercial;
41 (ii) mining;
42 (iii) agricultural;
43 (iv) industrial;
44 (v) manufacturing;
45 (vi) trade;
46 (vii) professional;
47 (viii) a private or public club;
48 (ix) a lodge;
49 (x) a business; or
50 (xi) a similar purpose.
51 (b) "Commercial or industrial real property" includes:
52 (i) private real property that is used as or held for dwelling purposes and contains:
53 (A) more than four rental units; or
54 (B) one or more owner-occupied or rental condominium units affiliated with a hotel;
56 (ii) real property owned by:
57 (A) the military installation development authority, created in Section 63H-1-201; or
58 (B) the Utah Inland Port Authority, created in Section 11-58-201.
60 (a) up to 100% of the cost of installing, acquiring, refinancing, or reimbursing for an
61 improvement, as determined by the owner of the property benefitting from the improvement; or
62 (b) the amount payable to one or more contractors for the assessment, design,
63 engineering, inspection, and construction of an improvement.
66 11-42a-106 to implement the C-PACE Act in collaboration with governing bodies, under the
67 direction of OED.
69 (a) permanently affixed to commercial or industrial real property; and
70 (b) designed to deliver electric energy to a qualifying electric vehicle or a qualifying
71 plug-in hybrid vehicle[
73 (a) within the jurisdictional boundaries of a local entity that approves an energy
74 assessment area or, if the C-PACE district or a state interlocal entity levies the assessment, the
75 C-PACE district or the state interlocal entity;
76 (b) containing only the commercial or industrial real property of owners who have
77 voluntarily consented to an assessment under this chapter for the purpose of financing the costs
78 of improvements that benefit property within the energy assessment area; and
79 (c) in which the proposed benefitted properties in the area are:
80 (i) contiguous; or
81 (ii) located on one or more contiguous or adjacent tracts of land that would be
82 contiguous or adjacent property but for an intervening right-of-way, including a sidewalk,
83 street, road, fixed guideway, or waterway.
85 (a) issued under Section 11-42a-401; and
86 (b) payable in part or in whole from assessments levied in an energy assessment area.
88 assessment area that arises from the levy of an assessment in accordance with Section
91 adopts under Section 11-42a-201 that:
92 (a) designates an energy assessment area;
93 (b) levies an assessment on benefitted property within the energy assessment area; and
94 (c) if applicable, authorizes the issuance of energy assessment bonds.
96 local entity under Section 11-42a-201 that:
97 (a) designates an energy assessment area;
98 (b) levies an assessment on benefitted property within the energy assessment area; and
99 (c) if applicable, authorizes the issuance of energy assessment bonds.
101 (a) permanently affixed to commercial or industrial real property; and
102 (b) designed to reduce energy or water consumption, including:
103 (i) insulation in:
104 (A) a wall, roof, floor, or foundation; or
105 (B) a heating and cooling distribution system;
106 (ii) a window or door, including:
107 (A) a storm window or door;
108 (B) a multiglazed window or door;
109 (C) a heat-absorbing window or door;
110 (D) a heat-reflective glazed and coated window or door;
111 (E) additional window or door glazing;
112 (F) a window or door with reduced glass area; or
113 (G) other window or door modifications;
114 (iii) an automatic energy control system;
115 (iv) in a building or a central plant, a heating, ventilation, or air conditioning and
116 distribution system;
117 (v) caulk or weatherstripping;
118 (vi) a light fixture that does not increase the overall illumination of a building, unless
119 an increase is necessary to conform with the applicable building code;
120 (vii) an energy recovery system;
121 (viii) a daylighting system;
122 (ix) measures to reduce the consumption of water, through conservation or more
123 efficient use of water, including installation of:
124 (A) low-flow toilets and showerheads;
125 (B) timer or timing systems for a hot water heater; or
126 (C) rain catchment systems;
127 (x) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
128 measure by the governing body or executive of a local entity;
129 (xi) measures or other improvements to effect seismic upgrades;
130 (xii) structures, measures, or other improvements to provide automated parking or
131 parking that reduces land use;
132 (xiii) the extension of an existing natural gas distribution company line;
133 (xiv) an energy efficient elevator, escalator, or other vertical transport device;
134 (xv) any other improvement that the governing body or executive of a local entity
135 approves as an energy efficiency upgrade; or
136 (xvi) any improvement that relates physically or functionally to any of the
137 improvements listed in Subsections [
139 (a) for a county, city, town, or metro township, the legislative body of the county, city,
140 town, or metro township;
141 (b) for a local district, the board of trustees of the local district;
142 (c) for a special service district:
143 (i) if no administrative control board has been appointed under Section 17D-1-301, the
144 legislative body of the county, city, town, or metro township that established the special service
145 district; or
146 (ii) if an administrative control board has been appointed under Section 17D-1-301, the
147 administrative control board of the special service district;
148 (d) for the military installation development authority created in Section 63H-1-201,
149 the board, as that term is defined in Section 63H-1-102; and
150 (e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
151 defined in Section 11-58-102.
153 upgrade, renewable energy system, or electric vehicle charging infrastructure that:
154 (a) a property owner has requested; or
155 (b) has been or is being installed on a property for the benefit of the property owner.
157 assessment bond and calling, retiring, or paying prior bonds, including:
158 (a) legal and accounting fees;
159 (b) charges of financial advisors, escrow agents, certified public accountant verification
160 entities, and trustees;
161 (c) underwriting discount costs, printing costs, and the costs of giving notice;
162 (d) any premium necessary in the calling or retiring of prior bonds;
163 (e) fees to be paid to the local entity to issue the refunding assessment bond and to
164 refund the outstanding prior bonds;
165 (f) any other costs that the governing body determines are necessary and proper to incur
166 in connection with the issuance of a refunding assessment bond; and
167 (g) any interest on the prior bonds that is required to be paid in connection with the
168 issuance of the refunding assessment bond.
170 payment of an assessment is payable.
172 (a) for the C-PACE district or any state interlocal entity, the boundaries of the state;
174 (b) for each local entity, the boundaries of the local entity.
176 Local Government Entities - Local Districts.
178 (i) a county, city, town, or metro township;
179 (ii) a special service district, a local district, or an interlocal entity as that term is
180 defined in Section 11-13-103;
181 (iii) a state interlocal entity;
182 (iv) the military installation development authority, created in Section 63H-1-201;
183 (v) the Utah Inland Port Authority, created in Section 11-58-201; or
184 (vi) any political subdivision of the state.
185 (b) "Local entity" includes the C-PACE district solely in connection with:
186 (i) the designation of an energy assessment area;
187 (ii) the levying of an assessment; and
188 (iii) the assignment of an energy assessment lien to a third-party lender under Section
191 assessment bonds that a local entity issues.
194 (26) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
196 be incurred in connection with an energy assessment area, including:
197 (a) appraisals, legal fees, filing fees, facilitation fees, and financial advisory charges;
198 (b) underwriting fees, placement fees, escrow fees, trustee fees, and paying agent fees;
199 (c) publishing and mailing costs;
200 (d) costs of levying an assessment;
201 (e) recording costs; and
202 (f) all other incidental costs.
204 adopts in accordance with Section 11-42a-201.
206 whole by a refunding assessment bond.
208 assessments from which the prior bonds are payable.
210 assessments from which the prior bonds are payable.
212 water rights and leasehold rights.
214 defined in Section 54-2-1.
215 (34) "Qualifying electric vehicle" means a vehicle that:
216 (a) meets air quality standards;
217 (b) is not fueled by natural gas;
218 (c) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
220 (d) is an OEM vehicle except that the vehicle is fueled by a fuel described in
221 Subsection (34)(c).
222 (35) "Qualifying plug-in hybrid vehicle" means a vehicle that:
223 (a) meets air quality standards;
224 (b) is not fueled by natural gas or propane;
225 (c) has a battery capacity that meets or exceeds the battery capacity described in
226 Subsection 30D(b)(3), Internal Revenue Code; and
227 (d) is fueled by a combination of electricity and:
228 (i) diesel fuel;
229 (ii) gasoline; or
230 (iii) a mixture of gasoline and ethanol.
232 property within an energy assessment area to pay an assessment levied on the property after the
233 local entity has reduced the assessment because of the issuance of a refunding assessment
234 bond, in accordance with Section 11-42a-403.
236 issues under Section 11-42a-403 to refund, in part or in whole, energy assessment bonds.
238 interacting group of devices that is permanently affixed to commercial or industrial real
239 property not located in the certified service area of a distribution electrical cooperative, as that
240 term is defined in Section 54-2-1, and:
241 (i) produces energy from renewable resources, including:
242 (A) a photovoltaic system;
243 (B) a solar thermal system;
244 (C) a wind system;
245 (D) a geothermal system, including a generation system, a direct-use system, or a
246 ground source heat pump system;
247 (E) a microhydro system;
248 (F) a biofuel system; or
249 (G) any other renewable source system that the governing body of the local entity
251 (ii) stores energy, including:
252 (A) a battery storage system; or
253 (B) any other energy storing system that the governing body or chief executive officer
254 of a local entity approves; or
255 (iii) any improvement that relates physically or functionally to any of the products,
256 systems, or devices listed in Subsection [
257 (b) "Renewable energy system" does not include a system described in Subsection
259 unless the system:
260 (i) (A) existed before the creation of the energy assessment area; and
261 (B) beginning before January 1, 2017, provides energy to property outside of the area
262 that became the energy assessment area; or
263 (ii) provides energy to property outside the energy assessment area under an agreement
264 with a public electrical utility that is substantially similar to agreements for other renewable
265 energy systems that are not funded under this chapter.
269 (a) an interlocal entity created under Chapter 13, Interlocal Cooperation Act, by two or
270 more counties, cities, towns, or metro townships that collectively represent at least a majority
271 of the state's population; or
272 (b) an entity that another state authorized, before January 1, 2017, to issue bonds,
273 notes, or other obligations or refunding obligations to finance or refinance projects in the state.
275 association, bank, credit union, or any other entity that provides loans directly to property
276 owners for improvements authorized under this chapter.