15Mar2011… 0528h





AN ACT relative to energy efficiency and clean energy districts.

SPONSORS: Rep. C. McGuire, Merr 8

COMMITTEE: Municipal and County Government


This bill establishes that financing for participating property owners in energy efficiency and clean energy districts may be provided through issuance of municipal revenue bonds but not from general municipal revenues.

This bill also removes the priority lien provision for loans made by energy efficiency and clean energy districts under RSA 53-F.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15Mar2011… 0528h




In the Year of Our Lord Two Thousand Eleven

AN ACT relative to energy efficiency and clean energy districts.

Be it Enacted by the Senate and House of Representatives in General Court convened:

68:1 Municipal Revenue Bonds; Definitions. Amend RSA 33-B:1, VI to read as follows:

VI. “Revenue-producing facilities” means water works, broadband infrastructure as defined in RSA 38:38, I(e), purchased or constructed in areas not served by an existing broadband carrier or provider, sewerage systems, sewage treatment or disposal facilities, solid waste disposal or resource recovery facilities, parking facilities, facilities for the production, generation, transmission, or distribution of electricity or gas [and], any other real or personal property or interests in a municipality or regional water district owned or controlled by the municipality or regional water district, from the operation of which revenues are or are expected to be derived by the municipality, or regional water district, and qualifying energy conservation and clean energy improvements for which a municipality provides financing pursuant to RSA 53-F.

68:2 Energy Efficiency and Clean Energy Districts; Authority. Amend RSA 53-F:3, I-II to read as follows:

I. Incur debt for the purpose of providing financing to property owners within the district, including through issuance of municipal revenue bonds, Qualified Energy Conservation Bonds or Clean Renewable Energy Bonds. Any such debt [shall constitute a pledge of the municipality’s full faith and credit] may be secured by a pledge of revenues, moneys, rights, and proceeds under this chapter, and except as may be otherwise provided in this chapter, shall be subject to the provisions of RSA 33 and RSA 33-B.

II. Establish a revolving fund pursuant to RSA 31:95-h using [general municipal revenues, bond funds,] federal Energy Efficiency and Conservation Block Grant funds, or grant funds from any federal, state, private, or other source[, provided that the use of general municipal revenues shall be pursuant to an appropriation by special warrant article in accordance with RSA 32 and the municipality’s appropriation procedures].

68:3 Energy Efficiency and Clean Energy Districts; Financing Terms. Amend RSA 53-F:7, II to read as follows:

II. A municipality that provides financing to participating property owners shall establish a loss reserve account and maintain funds in such account at a level that meets generally accepted standards for property-assessed clean energy finance programs. Funds in a loss reserve account shall not be provided from general municipal revenues.

68:4 Definition; Special Assessment. Amend RSA 53-F:1, VI to read as follows:

VI. “Special assessment” means a special assessment within the meaning and subject to the provisions of RSA 80:19, except as provide in RSA 53-F:8.

68:5 Risk of Enforcement of Special Assessment Liens. Amend RSA 53-F:4, II to read as follows:

II. The municipality shall disclose to participating property owners the risks associated with participating in the program, including risks related to their failure to make payments and the risk of enforcement of property tax or special assessment liens under RSA [80:19] 53-F:8.

68:6 Priority, Collection, and Enforcement. Amend RSA 53-F:8 to read as follows:

53-F:8 Priority; Collection and Enforcement. Collection of assessments under this chapter shall be made by the tax collector or other official responsible for property tax or municipal service charge collection. A municipality shall commit bills for amounts due on the assessments, including interest and any charges, to the tax collector with a warrant signed by the appropriate municipal officials requiring the tax collector to collect them. Each year bills for amounts due on the assessments shall coincide with bills for property taxes or municipal service charges [and]. Each assessment on the property of a participating property owner shall create a lien on the property pursuant to RSA 80:19, except that the lien shall be junior to existing liens of record at the time the bill for the assessment is mailed to the participating property owner. Enforcement powers for nonpayment shall be those provided under RSA 80 relative to property tax collection, including RSA 80:19; provided, however, a tax sale of the property shall not extinguish prior liens of record. At the time of enforcement, only the past due balances of the assessment under this chapter, including all interest, charges, and penalties, shall be due for payment. Notwithstanding any other provision of law, in the event of a transfer of property ownership through foreclosure[, collection by the municipality shall be limited to any past due balances and future payments shall neither be accelerated nor extinguished by foreclosure] or a sheriff’s sale by a senior lienor, the lien of the municipality shall be extinguished. Payment of a past due balance from the loss reserve established under this chapter shall not relieve a participating property owner from the obligation to pay that amount.

68:7 Effective Date. This act shall take effect 60 days after its passage.

Approved: May 16, 2011

Effective Date: July 15, 2011