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Bill

Bill

LC 222

Revise commercial property assessed clean energy laws

2025 Regular Session

Montana revises PACE financing rules for commercial clean energy projects, potentially affecting property tax assessment priority and energy upgrade accessibility.

(LC) Draft Delivered to Requester
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Bill Summary · LC 222

Legislative bill overview

Bill LC 222 proposes revisions to Montana's commercial property assessed clean energy (PACE) financing laws. PACE programs allow property owners to finance energy efficiency and renewable energy improvements through assessments on their property tax bills. The bill would modify how these programs operate, though specific provisions are not yet publicly detailed as the draft is still in development.

Why is this important

PACE financing has become a significant mechanism for funding clean energy upgrades in commercial properties, affecting both property owners' access to capital for energy improvements and local government administration. Changes to PACE laws can impact Montana's ability to meet energy efficiency goals, property owner costs, and the competitiveness of the clean energy market. The revisions could also affect how property tax systems function and lender protections.

Potential points of contention

  • Lender priority and consumer protection: Disputes over whether PACE assessments should have priority over mortgage liens, which has caused foreclosure complications in some states
  • Disclosure and transparency requirements: Debate over what information property owners must receive about long-term payment obligations and project performance guarantees
  • Program administration and oversight: Questions about state versus local control, inspection standards, and contractor licensing requirements for clean energy projects

Compiled from official sources — confirm details with the bill’s official record.

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