Relating to authorizing local government programs to provide assessments for residential water and energy improvements in designated regions, including authorizing the issuance of obligations to provide financing for the programs; authorizing a fee.
Impact
The impact of HB3363 on state laws relates primarily to the financing mechanisms for energy and water efficiency upgrades. Specifically, it enables local governments to utilize tax assessments to fund improvements, thereby incentivizing homeowners to invest in sustainable upgrades. The bill effectively creates a framework that allows for the financing of improvements via bonds, which secures repayment through contractual assessments embedded in property taxes. Consequently, this could lead to increased rates of home renovations that adhere to energy conservation standards, enhancing community resilience and environmental sustainability.
Summary
House Bill 3363 introduces the Residential Property Assessed Clean Energy (R-PACE) Act, which authorizes local governments in Texas to establish programs that enable financing for residential water and energy improvements. The bill amends the Government Code to include provisions for local government programs that provide assessments for these improvements through contractual assessments on real property, facilitating the issuance of bonds to fund such programs. This allows homeowners to make energy-efficient modifications and improvements without the immediate financial burden, as costs can be repaid over time via property assessments.
Contention
Notable points of contention surrounding HB3363 include concerns regarding the financial implications for local governments and property owners. Critics may question the feasibility and safety of such financing models, particularly around the long-term viability of assessments and the potential for increased tax burdens on homeowners. Furthermore, the bill mandates that local governments cannot compel property owners into participation, which may lead to disparities in access to these beneficial programs. The question of affordability and equitable access to funding for energy-retrofitting projects also remains a critical discussion point amongst lawmakers and the public.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to the formation of special districts for the purpose of storm mitigation and resiliency, energy, water, and indoor air utilizing private funding sources; providing thereto the ability of specific entities to use conduit financing; and establishing specific consumer protection provisions for residential property owners related to the program.