By and through this article, the Town of Cumberland declares
as its public purpose the establishment of a municipal program to
enable its citizens to participate in a property-assessed clean energy
("PACE") program so that owners of qualifying property can access
financing for energy-saving improvements to their properties located
in the Town. The Town of Cumberland declares its purpose and the provisions
of this article to be in conformity with federal and State laws.
The Town enacts this article pursuant to Public Law 2009, Chapter
591, of the 124th Maine State Legislature, "An Act To Increase the
Affordability of Clean Energy for Homeowners and Businesses," also
known as "the Property Assessed Clean Energy Act" or "the PACE Act"
(codified at 35-A M.R.S.A. § 10151 et seq.).
This article shall be known and may be cited as "the Town of
Cumberland Property Assessed Clean Energy (PACE) Ordinance" (this
"article").
Except as specifically defined below, words and phrases used
in this article shall have their customary meanings; as used in this
article, the following words and phrases shall have the meanings indicated:
ENERGY-SAVING IMPROVEMENT
An improvement to qualifying property that is new and permanently
affixed to qualifying property and that:
A.
Will result in increased energy efficiency and substantially
reduced energy use and:
(1)
Meets or exceeds applicable United States Environmental Protection
Agency and United States Department of Energy Energy Star program
or similar energy efficiency standards established or approved by
the trust; or
(2)
Involves air sealing, insulating, and other energy efficiency
improvements of residential, commercial or industrial property in
a manner approved by the trust; or
B.
Involves a renewable energy installation or an electric thermal
storage system that meets or exceeds standards established or approved
by the trust.
PACE AGREEMENT
An agreement between the owner of qualifying property and
the trust that authorizes the creation of a PACE mortgage on qualifying
property and that is approved in writing by all owners of the qualifying
property at the time of the agreement, other than mortgage holders.
PACE ASSESSMENT
An assessment made against qualifying property to repay a
PACE loan.
PACE DISTRICT
The area within which the municipality establishes a PACE
program hereunder, which is all that area within the municipality's
boundaries.
PACE LOAN
A loan, secured by a PACE mortgage, made to the owner(s)
of a qualifying property pursuant to a PACE program to fund energy-saving
improvements.
PACE MORTGAGE
A mortgage securing a loan made pursuant to a PACE program
to fund energy-saving improvements on qualifying property.
PACE PROGRAM
A program established under state statute by the trust or
a municipality under which property owners can finance energy-savings
improvements on qualifying property.
RENEWABLE ENERGY INSTALLATION
A fixture, product, system, device or interacting group of
devices installed behind the meter at a qualifying property, or on
contiguous property under common ownership, that produces energy or
heat from renewable sources, including, but not limited to, photovoltaic
systems, solar thermal systems, biomass systems, landfill gas to energy
systems, geothermal systems, wind systems, wood pellet systems and
any other systems eligible for funding under federal Qualified Energy
Conservation Bonds or federal Clean Renewable Energy Bonds.
TRUST
The Efficiency Maine Trust established in 35-A M.R.S.A. § 10103
and/or its agent(s), if any.
Standards adopted; rules promulgated; model documents: If the
trust adopts standards, promulgates rules, or establishes model documents
subsequent to the municipality's adoption of this article and those
standards, rules or model documents substantially conflict with this
article, the municipality shall take necessary steps to conform this
article and its PACE program to those standards, rules, or model documents.
Except as specifically defined below, words and phrases used
in this article shall have their customary meanings. As used in this
article, the following words and phrases shall have the meanings indicated:
COMMERCIAL PACE AGREEMENT
An agreement that authorizes the creation of a commercial
PACE assessment on qualifying property and that is approved in writing
by all owners of the qualifying property at the time of the agreement
and by Town Council.
COMMERCIAL PACE DISTRICT
The area within which the Town establishes a commercial PACE
program hereunder, which is all that area within the Town's boundaries.
COMMERCIAL PACE LIEN
A lien secured against a qualifying property that is created
by a commercial PACE assessment.
COMMERCIAL PACE LOAN
A loan, payable through a commercial PACE assessment and
secured by a C- PACE lien, made to the owner(s) of a qualifying property
pursuant to a commercial PACE program to fund energy savings improvements.
COMMERCIAL PACE PROGRAM
A program established under this article pursuant to the
Commercial PACE Act under which commercial property owners can finance
energy savings improvements on qualifying property.
ENERGY SAVINGS IMPROVEMENT
An improvement or series of improvements to qualifying property
that are new and permanently affixed to qualifying property and that:
A.
Will result in increased energy efficiency or substantially
reduced energy use and:
(1)
Meet or exceed applicable United States Environmental Protection
Agency and United States Department of Energy "ENERGY STAR®" program or similar energy efficiency standards
established or approved by the Trust; or
(2)
Involve weatherization of commercial or industrial property
in a manner approved by the Trust; or
B.
Involve a renewable energy installation, an energy storage system
as defined in 35-A M.R.S. § 3481(6), an electric thermal
storage system, electric vehicle supply equipment or heating equipment
that meets or exceeds standards established or approved by the Trust.
Heating equipment that is not a renewable energy installation must
be heating equipment that produces the lowest carbon emissions of
any heating equipment reasonably available to the property owner,
as determined by the Trust, and must meet the requirements of 35-A
M.R.S. § 10204(1)(B).
QUALIFYING PROPERTY
Real commercial property in the Town that:
A.
Does not have a residential mortgage;
B.
Is not owned by a residential customer or small commercial customer
as defined in 35-A M.R.S. § 3016(1)(C) and (D), respectively;
C.
Consists of five or more rental units if the property is a commercial
building designed for residential use;
D.
Is not owned by a federal, state or municipal government or
public school; and
E.
Is located in a municipality that participates in a commercial
PACE program.
RENEWABLE ENERGY INSTALLATION
A fixture, product, system, device or interacting group of
devices installed behind the meter at a qualifying property, or on
contiguous property under common ownership, that produces energy or
heat from renewable sources, including but not limited to, photovoltaic
systems, solar thermal systems, highly efficient wood heating systems,
geothermal systems and wind systems that do not on average generate
more energy or heat than the peak demand of the property.
TOWN
The Town of Cumberland.
TRUST
The Efficiency Maine Trust, established in 35-A M.R.S. § 10103
and/or its agents, if any.
C-PACE loans may be provided by any qualified capital provider
private lender participating in the C-PACE program and a C-PACE agreement
may contain any terms agreed to by the lender and the property owner,
as permitted by law, for the financing of energy savings improvements.
Unless the Town specifically designates funding sources made available
to it or appropriated by it for the express purpose of its commercial
PACE program and agrees to provide financing for energy savings improvements,
the Town will not finance or fund any loan under the commercial PACE
program, and shall serve only as a program sponsor to facilitate loan
repayment by including the commercial PACE assessment on the property
tax bill for the property, and shall incur no liability for the loan.
This article is intended to comply with the Commercial PACE
Act and the administrative rules of the Trust issued in connection
with the Commercial PACE Act, as the same may be amended. If the Trust
or any state or federal agency adopts standards, promulgates rules,
or establishes model documents subsequent to the Town's adoption
of this article and those standards, rules or model documents substantially
conflict with this article, the Town shall take necessary steps to
conform this article and its commercial PACE program to those standards,
rules or model documents.