To achieve the public benefits of protecting the economic and social well-being by reducing energy costs in the community and risks to the community associated with future escalation in energy prices, and addressing the threat of global climate change, any municipality which has adopted the provisions of this chapter and established an energy efficiency and clean energy district may, upon a finding by the governing body of the municipality, after notice and hearing, that the energy conservation and efficiency and clean energy improvements will serve the public purposes as set forth in this chapter and not primarily be for the benefit of private persons or uses even though such private benefits and uses may incidentally result, do the following:

1. I. The authority is designated by the legislature to administer the program for all municipalities within the state. The authority is authorized to, at its direction, contract with a third party, whether private or governmental, to manage the day-to-day administration of the program. Anticipated expenses for the administration of the program shall be borne by the owners of eligible properties participating in the program.
2. II. A municipality which adopts this chapter shall thereafter be authorized to establish one or more energy efficiency and clean energy districts. A municipality, at its discretion, may establish the district within the entirety of its jurisdictional boundaries.

3. III. A municipality may enter into an agreement with a property owner to impose a voluntary special assessment to repay the financing of qualified projects on commercial property located in a region.

   1. (a) A finding that the financing of qualified projects through special assessments is a valid public purpose;
   2. (b) A statement that the municipality intends to authorize direct financing between property owners and capital providers as the means to finance qualified projects;
   3. (c) A statement that the municipality intends to authorize special assessments, entered into voluntarily by a property owner with the municipality by means of the written assessment contract, as the means to repay the financing for qualified projects available to property owners;
   4. (d) A description of the types of qualified projects that may be subject to special assessments;
   5. (e) A description of the boundaries of the region;
   6. (f) That administration of the program shall be by the authority or its designee; and

   7. (g) A statement identifying the appropriate municipal program official or department responsible for executing the appropriate documentation for the imposition of a special assessment.

      III-e. The authority is authorized to impose fees and charges deemed necessary by the authority for the purposes of administering the program. To the degree collected from the property owner, the authority shall reimburse a municipality for actual expenses incurred by the municipality in the performance of the municipalities' duties pursuant to this chapter.

   III-a. An assessment may not be imposed to repay the financing of the purchase or installation of products or devices not permanently affixed to commercial property.

   III-b. A municipality may enter into an agreement to impose a voluntary special assessment only after a project application is approved. The special assessment is created through a written contract between the municipality and with the recorded property owner of the commercial property or the property owner of a leasehold estate to be assessed.

   III-c. Prior to entering into the written assessment contract, the property owner must receive and furnish to the program administrator a written statement, executed by each holder of a mortgage or deed of trust on the property securing indebtedness, consenting to the assessment and indicating that the assessment does not constitute an event of default under the mortgage or deed of trust.

   III-d. To establish a C-PACER program under this chapter, the municipality shall take action in the following order, and adopt a resolution that includes:

4. IV. Participate in state or federal programs providing support for municipal energy efficiency and clean energy finance programs such as those authorized by this chapter.
5. V. Enter into agreements with owners of eligible property in which the owners have consented to make energy conservation and efficiency improvements or clean energy improvements to their properties and to have the municipality include a special assessment to pay for such improvements on their property tax bills, their bills for water or sewer service or another municipal service, or separate bills, provided that such agreements shall not affect the tax liability or municipal services charges of other participating or nonparticipating property owners in the district.

Source. 2010, 215:2. 2011, 68:2, eff. July 15, 2011. 2014, 294:2, eff. Sept. 30, 2014. 2015, 121:2, eff. June 8, 2015. 2023, 91:1, eff. Aug. 19, 2023. 2025, 1:3, eff. March 10, 2025.