SB 894 — Virginia Energy Efficiency Revolving Fund; created.

SESSION history | hilite | pdf | print version 18105086D18106396D SENATE BILL NO.

894 OfferedAMENDMENT JanuaryIN 19,THE 2018NATURE OF A BILLSUBSTITUTE to(Proposed amendby the CodeSenate ofCommittee Virginiaon byFinance addingon inJanuary Chapter31, 82018) of(Patron TitlePrior 58.1to aSubstitute--Senator sectionWagner) numberedA 58.1-818BILL andto amend the Code of Virginia by adding in Title 62.1 a chapter numbered 23.3, consisting of sections numbered 62.1-241.13 through 62.1-241.16, relating to loans to localities and other entities to fund energy efficiency projects.

---------- Patron-- Wagner ---------- Referred to Committee on Finance ---------- Be it enacted by the General Assembly of Virginia:

That the Code of Virginia is amended by adding in Chapter of Title 58.1 a section numbered 58.1-818 and by adding in Title 62.1 a chapter numbered 23.3, consisting of sections numbered 62.1-241.13 through 62.1-241.16, as follows:

§ 58.1-818.

Deposit of certain recordation tax revenues to the Virginia Energy Efficiency Revolving Fund.

No later than September 1 of each fiscal year immediately following a fiscal year in which the total revenue generated by the state taxes imposed pursuant to this chapter except §§ 58.1-802.2 and 58.1-817 that was deposited into the state treasury exceeded $325 million, there shall be transferred to the Virginia Energy Efficiency Revolving Fund established in § 62.1-241.14 an amount equal to 40 percent of the excess revenue.

"Department" means the Department of Mines, Minerals and Energy.

"Other entities" means public institutions of higher education.

There shall be set apart as a permanent and perpetual fund, to be known as the Virginia Energy Efficiency Revolving Fund, sums appropriated to the Fund by the General Assembly, including all receipts by the Fund from loans made by it to local governmentsgovernments, or other entities, all income from the investment of moneys held in the Fund, and any other sums designated for deposit to the Fund from any source public or private.

Loans to local governmentsgovernments. and other entities.

Except as otherwise provided in this chapter, with such amounts as appropriated to the Fund, moneys in the Fund shall be used solely to make interest-free loans to local governments or other entities to finance or refinance all or part of the cost of any project.

The local governments or other entities to which loans are to be made, the purposes of the loan, the amount of each such loan, the conditions of any loan from the Fund, the interest rate on each loan, and the repayment terms thereof, which may vary between loan recipients, shall be designated in writing by the Board to the Authority following consultation with the Authority.

TheIn consultation with the Department, the Authority shall give priority to projects that (i) most rapidly recoup costs through energy efficiency savings or (ii) have the greatest long-term savings, provided that the Authority may set minimum project sizes.

Annual payments by a local government or other entity shall be an amount that approximates 75 percent of the annual estimated energy-related savings attributable to the project, unless a higher percentage is needed to achieve repayment in the permitted time.

Unless otherwise agreed to by the Authority and a local government or other entity, the term of the loan shall be the lesser of 10 years or 80 percent of the life of the project.

ExceptEach asloan setshall forthbe inevidenced subsectionby A,appropriate thebonds Authorityor shallnotes determineof the termslocal andgovernment conditionspayable ofto any loan from the Fund,Fund. which may vary between loan recipients.

EachThe loanbonds shallor benotes evidencedshall byhave appropriatebeen bondsduly orauthorized notesby of the local government orand otherexecuted entityby payableits toauthorized thelegal Fund.representatives.

The bonds or notes shall have been duly authorized by the local government or other entity and executed by its authorized legal representatives.

The Authority may perform other acts, including the conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title, and interest therein, to the Fund, or take other actions as may be deemed necessary or desirable by the Authority to secure payment of the principal and interest, if any, on the loan from the Fund and to provide for the remedies of the Fund in the event of any default in the payment of the loan.loan, including, if appropriate, taking the action required by § 15.2-2659 to obtain payment of any amounts in default.

All local governments or other entities borrowing moneys from the Fund are authorized to perform any acts, take any action, adopt any proceedings, and make and carry out any contracts that are contemplated by this chapter.

Such contracts need not be identical among all local governments or other entities but may be structured as determined by the AuthorityDepartment according to the needs of the contracting local governments or other entities and the Fund.

Subject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan subject to any guidelines that may be adopted by the Board.Department.

E.

In order to carry out the administration and management of the Fund, the Authority is granted the power to employ officers, employees, agents, advisors, and consultants, including, without limitation, attorneys, financial advisors, engineers and other technical advisors, and public accountants and, the provisions of any other law to the contrary notwithstanding, to determine their duties and compensation without the approval of any other agency or instrumentality.

The Authority may disburse from the Fund its reasonable costs and expenses incurred in the administration and management of the Fund.

The Authority may provide a portion of its fee to the Department to cover the Department's costs and expenses.