Bill > H2889

This bill establishes a Residential Sustainable Energy Program, which allows for Property Assessed Clean Energy (PACE) projects, to promote residential energy efficiency improvements. Under this program, a financing entity, such as a special purpose entity created by the Massachusetts Development Finance Agency (the "agency"), can issue PACE bonds, which are revenue bonds not backed by the general credit of the state, to fund energy improvements like renovations or renewable energy system installations on qualifying residential properties. These improvements must be permanently fixed to the property and aim to reduce energy consumption. Municipalities can participate by agreeing to assess, collect, and remit "betterment assessments" from property owners who voluntarily consent to these assessments as a way to repay the financing for the PACE projects. These betterment assessments, which are charges on property for public improvements, will be secured by a lien on the property that takes precedence over most other liens, except for municipal property taxes, and will remain even if the property is sold. The program aims to ensure that the projected energy cost savings from the improvements over their useful life, which cannot exceed 20 years, outweigh the costs. The Department of Energy Resources will oversee and approve each PACE project, ensuring the cost savings outweigh the expenses, and the agency will establish guidelines and potentially a reserve program to support the PACE bonds.