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Current law requires a political subdivision that makes a PACE program loan
or agreement for an improvement or application that costs $250,000 or more to
require the owner to obtain a written guarantee from the contractor or project
engineer that the improvement or application will achieve a savings-to-investment
ratio of greater than 1.0 and that the contractor or engineer will annually pay the
owner any shortfall in savings below this level.
This bill eliminates this requirement and instead provides that a political
subdivision must require the owner or lessee to do the following:
1. With some exceptions, obtain either 1) a third-party assessment of the
baseline water or energy use of the owner or lessee's property and an assessment of
the expected monetary savings due to the improvement or 2) an assessment of the
renewable energy production of the improvement and the monetary benefit to be
generated by the improvement.
2. After the making, installation, or maintenance of the improvement or
application is complete, provide a verification that the improvement or application
was properly made, installed, or maintained or, for a loan or agreement solely for the
operation of an improvement or application, that at the time the loan is made or the
agreement entered into the improvement or application was in proper operational
condition.
This bill also provides that a political subdivision must require an owner or
lessee to obtain the written consent of all holders of a mortgage on the premises as
a condition of obtaining a PACE program loan or agreement and that the repayment
period of a PACE loan or agreement may not exceed 30 years.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB719,1 1Section 1. 66.0627 (1) (ad) (intro.) of the statutes is amended to read:
AB719,3,3
166.0627 (1) (ad) (intro.) “Brownfield revitalization project" means any of the
2following actions when taken upon commercial or industrial premises that are
3located on, or that constitute, brownfields, as defined in s. 238.13 (1) (a):
AB719,2 4Section 2. 66.0627 (1) (am) of the statutes is amended to read:
AB719,3,95 66.0627 (1) (am) “Energy efficiency or reliability improvement" means an
6improvement to a residential, commercial, or industrial premises that reduces the
7usage of energy, or increases the efficiency or reliability of energy usage, at the
8premises, including energy storage or backup power generation improvements or
9improvements that facilitate participation in a microgrid
.
AB719,3 10Section 3. 66.0627 (1) (ao) of the statutes is created to read:
AB719,3,1311 66.0627 (1) (ao) “EV infrastructure improvement” means an improvement to
12a premises to provide facilities for charging vehicles that are fully or partially
13powered by electricity.
AB719,4 14Section 4. 66.0627 (1) (bk) of the statutes is created to read:
AB719,3,1515 66.0627 (1) (bk) “Renewable resource application” means any of the following:
AB719,3,1716 1. An improvement to a premises that allows for the production of energy
17through the incorporation of solar thermal electric or photovoltaic energy.
AB719,3,1918 2. An improvement to a premises that allows for the small scale derivation of
19electricity from a renewable resource listed under s. 196.378 (1) (h).
AB719,3,2020 3. A manure digestion or other biomass system that produces natural gas.
AB719,5 21Section 5. 66.0627 (1) (bm) of the statutes is created to read:
AB719,3,2522 66.0627 (1) (bm) “Resiliency improvement” means an improvement to a
23premises intended to increase resilience or improve the durability of infrastructure,
24including an improvement intended to improve storm and wind durability or wind
25resistance or to assist in fire suppression or mitigation of damage from flooding.
AB719,6
1Section 6. 66.0627 (1) (cg) of the statutes is created to read:
AB719,4,82 66.0627 (1) (cg) “Storm water control measure” means an improvement to a
3premises that uses structural or nonstructural measures, practices, techniques, or
4devices designed to mitigate the negative impacts of storm water runoff or other
5surface runoff to the premises, including an infiltration system, wet detention pond,
6constructed wetland, grassed swale, or vegetative roofing system. “Storm water
7control measure” does not include a rain barrel or cistern designed for temporary
8storage of precipitation.
AB719,7 9Section 7. 66.0627 (1) (d) of the statutes is amended to read:
AB719,4,1210 66.0627 (1) (d) “Water efficiency improvement" means an improvement to a
11residential, commercial, or industrial premises that reduces the usage of water, or
12increases the efficiency of water usage, at the premises.
AB719,8 13Section 8. 66.0627 (8) (a) of the statutes is renumbered 66.0627 (8) (a) 1. and
14amended to read:
AB719,4,2215 66.0627 (8) (a) 1. A Except as provided in subd. 2., a political subdivision may
16make a loan, or enter into an agreement regarding loan repayments to a 3rd party
17for owner-arranged or lessee-arranged financing, to an owner or lessee of a premises
18located in the political subdivision for a brownfield revitalization project or for the
19financing or refinancing of
making or, installing, operating, or maintaining an
20energy efficiency or reliability improvement, a water efficiency improvement, EV
21infrastructure improvement, resiliency improvement, storm water control measure,

22or a renewable resource application to the premises.
AB719,9 23Section 9. 66.0627 (8) (a) 2. of the statutes is created to read:
AB719,5,224 66.0627 (8) (a) 2. A political subdivision may not make a loan or enter into an
25agreement under subd. 1. for the financing or refinancing of making, installing,

1operating, or maintaining a resiliency improvement for a premises to which a
2floodplain zoning ordinance applies unless all of the following apply:
AB719,5,63 a. If the premises is a nonconforming building, as defined in s. 87.30 (1d) (a)
41., the building would be permanently repaired, reconstructed, or improved so as to
5comply with all applicable requirements of the floodplain zoning ordinance for the
6area of the floodplain that it occupies after completion of the resiliency improvement.
AB719,5,97 b. If the political subdivision participates in the National Flood Insurance
8Program, the owner or lessee of the premises agrees to maintain any flood insurance
9policy required under the program for the premises.
AB719,10 10Section 10. 66.0627 (8) (am) of the statutes is amended to read:
AB719,5,1911 66.0627 (8) (am) If a political subdivision makes a loan or enters into an
12agreement under par. (a) 1. or (ag), the political subdivision may collect the loan
13repayment as a special charge under this section. Notwithstanding sub. (4), a special
14charge imposed under this paragraph may be collected in installments and may be
15included in the current or next tax roll for collection and settlement under ch. 74 even
16if the special charge is not delinquent. If a political subdivision makes a loan, or
17enters into an agreement regarding loan repayments to a 3rd party, for a brownfield
18revitalization project under par. (a),
the repayment period may not exceed 20 30
19years.
AB719,11 20Section 11 . 66.0627 (8) (c) of the statutes is amended to read:
AB719,6,221 66.0627 (8) (c) An installment payment authorized under par. (am) that is
22delinquent becomes a
A political subdivision that makes a loan or enters into an
23agreement under par. (a) or (ag) has a
lien on the property that benefits from the
24improvement or application in the amount of the loan or the amount to be repaid
25under the agreement
as of the date of delinquency the making of the loan or the entry

1into the agreement
. A lien under this paragraph runs with the land and has the same
2priority as a special assessment lien.
AB719,12 3Section 12. 66.0627 (8) (cm) of the statutes is created to read:
AB719,6,54 66.0627 (8) (cm) 1. If an installment payment authorized under par. (am) is
5delinquent, a lien under par. (c) may be enforced by foreclosure under s. 75.521.
AB719,6,106 2. The governing body of a county may assign the county's right to take
7judgment with respect to any parcel that is subject to subd. 1. to a 3rd party that is
8party to a loan repayment agreement under par. (a) or (ag). An assignment under
9this subdivision shall be in accordance with s. 75.106, except that s. 75.106 (1) and
10(2) (d), (e), and (f) do not apply.
AB719,13 11Section 13. 66.0627 (8) (d) of the statutes is renumbered 66.0627 (8) (d) (intro.)
12and amended to read:
AB719,6,2113 66.0627 (8) (d) (intro.) A political subdivision that, under par. (a) 1., makes a
14loan to, or enters an agreement with, an owner or lessee for making or, installing,
15operating, or maintaining
an improvement or application that costs $250,000 or
16more
shall require the owner or lessee to obtain a written guarantee from the
17contractor or project engineer that the improvement or application will achieve a
18savings-to-investment ratio of greater than 1.0 and that the contractor or engineer
19will annually pay the owner any shortfall in savings below this level. The political
20subdivision may determine the method by which a guarantee under this paragraph
21is enforced
do all of the following:
AB719,7,5 221. For an energy efficiency or reliability improvement or water efficiency
23improvement, obtain a 3rd-party assessment of the baseline water or energy use of
24the owner or lessee's property and an assessment of the expected monetary savings
25due to the improvement or, for a renewable resource application, obtain an

1assessment of the renewable energy production of the application and the expected
2monetary benefit to be generated by the application
. This paragraph subdivision
3does not apply to a loan or agreement for a brownfield revitalization project, a
4customer-side water service line replacement, an EV infrastructure improvement,
5a resiliency improvement, or a storm water control measure
.
AB719,14 6Section 14 . 66.0627 (8) (d) 2. of the statutes is created to read:
AB719,7,127 66.0627 (8) (d) 2. After the making, installation, or maintenance of the
8improvement or application is complete, provide a verification that the improvement
9or application was properly made, installed, or maintained or, for a loan or agreement
10solely for the operation of an improvement or application, that at the time the loan
11is made or the agreement entered into the improvement or application was in proper
12operational condition.
AB719,15 13Section 15. 66.0627 (8) (e) of the statutes is repealed.
AB719,16 14Section 16. 66.0627 (8) (f) of the statutes is created to read:
AB719,7,1715 66.0627 (8) (f) A political subdivision shall require that the owner or lessee
16obtain the written consent of all holders of a mortgage on the premises as a condition
17of making a loan or entering into an agreement under par. (a).
AB719,17 18Section 17 . Initial applicability.
AB719,7,2119 (1) This act first applies to an application made to a political subdivision for a
20loan or an agreement regarding loan repayment to a 3rd party on the effective date
21of this subsection.
AB719,7,2222 (End)
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