Authorizing cities and counties to establish energy investment districts and district boards and providing for financing of energy investments

The bill specifies measures that are considered energy investments. The bill requires the governing bodies of the counties and cities participating in an energy investment district to appoint an energy investment district board to manage and administer the district. The board must consist of at least three members, but in no case fewer than the number of participating cities and counties, and the agreement creating the district must set the term length of board members. The bill authorizes a board to exercise all powers and duties necessary to manage and administer the energy investment district, as provided in the agreement, including the power to adopt bylaws, adopt an official seal, sue and be sued, make and enter into contracts with public and private entities, employ staff, levy and collect special assessments, borrow money from a public or private source and issue bonds, finance energy investment projects, collect fees, and invest funds. A board must exist for a minimum duration necessary to finance any assessment contracts that the board enters into. The bill requires a board to enter into an assessment contract with a property owner to finance a project if the board finds that there are sufficient resources for the project, the estimated monetary benefit, as determined by the board after consulting with an outside expert, is equal to or greater than the total cost of the project, and the project complies with all applicable ordinances and regulations in the county or city where the property is located. An assessment contract executed between a board and a property owner must include a description of the project, a mechanism for verifying the final costs of the project and ensuring that financing provided does not exceed the final costs of the project, an agreement by the property owner to pay special assessments and any applicable fees for a specified period and a schedule of assessments, a statement that the obligations provided in the assessment contract are a covenant that run with the land, an acknowledgment that subdividing property subject to the contract requires the contract or an amendment to the contract to divide the total special assessments due, and written consent to the levy and collection of special assessments and any applicable fees charged from all entities holding mortgages on the property or contract sellers of the property. The bill requires a board to provide a copy of a signed assessment contract to the local assessor and county auditor of the county where the property is located, as well as filing the agreement with the county recorder. A board is authorized to enter into more than one assessment contract for a single property so long as each contract relates to a separate project. A board shall determine an inspection procedure for completed energy investments financed pursuant to the bill. The bill provides that the total special assessments levied by a board cannot exceed the sum of the cost of the project, including all incidental costs and fees. A board may also charge a fee of up to percent of the total cost of the project, not to exceed $20,000. A board must levy and collect special assessments in the manner as provided in the assessment contract and with the same priority as real property taxes. Special assessments and fees not paid within the time period set forth in the assessment contract are delinquent and become a lien on the property.4. The bill authorizes a board to issue bonds payable from the special assessments. The board must authorize an issuance of bonds by resolution and may determine the form of the bonds, so long as any interest rates do not exceed those permitted by Code chapter 74A. The bonds do not constitute a debt of the state or of the city or county where the property is located, and must contain a statement to that effect. The bill requires a board to submit an annual report to the governing body of each participating county and city in the district, which must include, for the preceding year, a description of each project completed, the amount of special assessments due and the amount collected for the fiscal year ending during the preceding year, a summary of the public benefits resulting from the projects completed, a description of assessment contracts entered into, and the amount of administrative costs incurred by the board.