October 15, 2015, Introduced by Rep. Pscholka and referred to the Committee on Local Government.
A bill to amend 1846 RS 16, entitled
"Of the powers and duties of townships, the election and duties of
township officers, and the division of townships,"
by amending section 75b (MCL 41.75b), as amended by 2002 PA 226.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 75b. (1) A township board may provide for energy
conservation improvements to be made to township facilities or
infrastructure and may pay for the improvements from operating
funds of the township or from the savings that result from the
energy conservation improvements. Energy conservation improvements
may include, but are not limited to, heating, ventilating, or air-
conditioning system improvements, fenestration improvements, roof
improvements, the installation of any insulation, the installation
or
repair of heating, ventilating, or air conditioning air-
conditioning
controls, and entrance or exit
way closures,
information technology improvements associated with an energy
conservation improvement, and municipal utility improvements
associated with an energy conservation improvement.
(2) The township board may acquire 1 or more of the energy
conservation improvements described in subsection (1) by
installment contract, which may include a lease-purchase agreement
described in subsection (5), or may borrow money and issue notes
for the purpose of securing funds for the improvements or may enter
into contracts in which the cost of the energy conservation
improvements is paid from a portion of the savings that result from
the energy conservation improvements. These contractual agreements
may provide that the cost of the energy conservation improvements
are paid only if the energy savings are sufficient to cover their
cost. An installment contract, a lease-purchase agreement described
in subsection (5), or notes issued pursuant to this subsection
shall
extend for a period of time not to exceed 10 20 years
from
the date of installation of the energy conservation improvement.
Notes issued pursuant to this subsection shall be full faith and
credit, tax limited obligations of the township, payable from tax
levies and the general fund as pledged by the township board. The
notes are subject to the revised municipal finance act, 2001 PA 34,
MCL 141.2101 to 141.2821. A lease-purchase agreement issued
pursuant to this subsection shall not be subject to the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, and
shall not be a municipal security or a debt as those terms are
defined in that act. This subsection does not limit in any manner
the borrowing or bonding authority of a township as provided by
law.
(3) If energy conservation improvements are made as provided
in this section, the township board shall report the following
information to the Michigan public service commission within 60
days of the completion of the improvements:
(a) Name of each facility to which an improvement is made and
a description of the conservation improvement.
(b) Actual energy consumption during the 12-month period
before completion of the improvement.
(c) Project costs and expenditures.
(d) Estimated annual energy savings.
(4) If energy conservation improvements are made as provided
in this section, the township board shall report to the Michigan
public service commission, by July 1 of each of the 5 years after
the improvements are completed, only the actual annual energy
consumption of each facility to which improvements are made. The
forms for the reports required by this section shall be furnished
by the Michigan public service commission.
(5) An installment contract described in this section may
include a lease-purchase agreement, which may be a multiyear
contractual obligation that provides for automatic renewal unless
positive action is taken by the legislative body to terminate that
contract. Payments under a lease-purchase agreement shall be a
current operating expense subject to annual appropriations of funds
by the legislative body and shall obligate the legislative body
only for those sums payable during the fiscal year of contract
execution or any renewal year thereafter. The legislative body may
make payments under a lease-purchase agreement from any legally
available funds or from a combination of energy or operational
savings, capital contributions, future replacement costs avoided,
or billable revenue enhancements that result from energy
conservation improvements, provided that the legislative body has
determined that those funds are sufficient to cover, in aggregate
over the full term of the contractual agreement, the cost of the
energy conservation improvements. The lease-purchase agreement will
terminate immediately and absolutely and without further obligation
on the part of the legislative body at the close of the fiscal year
in which it was executed or renewed or at such time as appropriated
and otherwise unobligated funds are no longer available to satisfy
the obligations of the legislative body under the lease-purchase
agreement. During the term of the lease-purchase agreement, the
legislative body shall be the vested owner of the energy
conservation improvements and may grant a security interest in the
energy conservation improvements to the provider of the lease-
purchase agreement. Upon the termination of the lease-purchase
agreement and the satisfaction of the obligations of the
legislative body, the provider of the lease-purchase agreement
shall release its security interest in the energy conservation
improvements.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.