EVM:amn
2021 - 2022 LEGISLATURE
2021 Assembly BILL 719
November 18, 2021 - Introduced by Representatives Thiesfeldt and Ramthun,
cosponsored by Senator Cowles. Referred to Committee on Local
Government.
AB719,1,7 1An Act to repeal 66.0627 (8) (e); to renumber and amend 66.0627 (8) (a) and
266.0627 (8) (d); to amend 66.0627 (1) (ad) (intro.), 66.0627 (1) (am), 66.0627 (1)
3(d), 66.0627 (8) (am) and 66.0627 (8) (c); and to create 66.0627 (1) (ao), 66.0627
4(1) (bk), 66.0627 (1) (bm), 66.0627 (1) (cg), 66.0627 (8) (a) 2., 66.0627 (8) (cm),
566.0627 (8) (d) 2. and 66.0627 (8) (f) of the statutes; relating to: loans and
6repayment assistance by a political subdivision for certain improvements to
7properties and collection of the debt by special charge.
Analysis by the Legislative Reference Bureau
This bill makes various changes to the property assessed clean energy (PACE)
program.
Under current law, a municipality may impose a special charge against real
property for services rendered by allocating the cost of the service to the properties
that are served. Generally, a special charge is not payable in installments. Also under
current law, under the PACE program, a city, village, town, or county (political
subdivision) may make a loan to, or enter into a loan repayment agreement with, an
owner or lessee of a premises for certain energy or water efficiency improvements or
renewable resource applications. The political subdivision may collect a loan
repayment under the PACE program as a special charge. A special charge imposed
under the PACE program may be collected in installments. Also, a political

subdivision may allow a third party that has provided financing for the PACE
program project to collect the installments.
This bill allows a political subdivision to make PACE program loans or
agreements for electric vehicle infrastructure, storm water control measures, and
energy reliability improvements. The bill also allows, with certain limitations for
premises located in floodplains, a political subdivision to make PACE program loans
or agreements for improvements intended to improve the resiliency of a premises.
Under current law, a PACE installment payment that is delinquent becomes a
lien on the property that benefits from the improvement or application as of the date
of delinquency. Under this bill, a political subdivision that makes a loan or enters
into an agreement under the PACE program has a lien on the property that benefits
from the improvement or application in the amount of the loan or the amount to be
repaid under the agreement as of the date of the making of the loan or the entry into
the agreement.
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: