Michigan House Bill HB5118

Michigan 2023-2024 Regular Session

• Introduced: 10/10/23
• Refer: 10/10/23

Caption

Energy: alternative sources; participation in property assessed clean energy program; extend to energy, environmental hazard, and water usage projects on residential property. Amends title of 2010 PA 270 (MCL 460.931 - 460.949); designates sec. 1 as pt. 1 & secs. 3 - 19 as pt. 2 & adds pt. 3. TIE BAR WITH: HB 5119'23

Impact

The implication of HB 5118 is significant as it broadens the scope of projects eligible for financing under the Property Assessed Clean Energy program. It allows for improvements related to water usage, sewage treatment, and air quality among other sectors, promoting an overall greener approach to property development and health initiatives. Additionally, the ability for local units to finance these projects through assessments on property owners helps mitigate upfront costs associated with implementing clean energy projects, thus encouraging widespread participation and investment in energy efficiency.

Summary

House Bill 5118 amends the Property Assessed Clean Energy Act to extend financing options for renewable energy systems, energy efficiency improvements, and a variety of environmental hazard projects to residential properties. This expansion allows local governments to create districts that can implement assessments on property owners to fund such projects. The bill enables financing through voluntary property assessments, commercial lending, and other means, while offering avenues for municipalities to issue bonds to secure funds for these improvements.

Contention

Despite the positive intentions behind HB 5118, there may be contention over the imposition of assessments on property owners, particularly regarding the repayment terms and potential risks of liens on properties. There are concerns about the financial burden on property owners, especially for those with tight budgets or lower income levels, as assessments could lead to foreclosure if unpaid. Furthermore, critics may argue about equitable access to the program, especially for seniors and low-income families, necessitating strict provisions for transparency and understanding of financial responsibilities.