§ 3270. State PACE Reserve Fund
(a) The State PACE Reserve Fund is established to be held in the custody of and administered by the State Treasurer. The purpose of the State PACE Reserve Fund shall be to reduce, for those districts for which the entity described in subsection 3269(f) of this title administers the loss reserve fund, the risk faced by an investor making an agreement with a municipality to finance such a district.
(b) The Treasurer may invest monies in the Fund in accordance with 32 V.S.A. § 434. All balances in the Fund at the end of the fiscal year shall be carried forward and shall not revert to the General Fund. Interest earned shall remain in the Fund. The Treasurer's annual financial report to the General Assembly under 32 V.S.A. § 434 shall contain an accounting of receipts, disbursements, and earnings of the Fund.
(c) At the direction of the Treasurer, a sum shall be transferred to the Fund from monies deposited into the Energy Efficiency Fund pursuant to 30 V.S.A. § 209(e)(1)(A) (net capacity savings payments) and 209(e)(1)(B) (net revenues from the sale of carbon credits).
(1)(A) For a given year, the sum transferred under this subsection shall be:
(i) five percent of the total amount of those assessments concerning which owners of real property, in the districts described in subsection (a) of this section, are expected to enter into written agreements pursuant to section 3262 of this title during the year; and
(ii) such additional amount, if any, that is necessary to meet the full amount of payments reasonably expected to be made from the State PACE Reserve Fund during that year.
(B) In no event shall the sum transferred under this subsection exceed the limits on the total amount of funding from the State PACE Reserve Fund set forth under subsection (f) of this section.
(2) When directing a transfer under this subsection, the Treasurer shall notify the Commissioners of Finance and Management and of Public Service, the Chair of the Public Utility Commission, and the entity described in subsection 3269(f) of this title. Monies shall not be disbursed from the State PACE Reserve Fund until necessary resources are transferred to the Fund.
(d) Monies deposited to the State PACE Reserve Fund and any interest on monies in that Fund shall be used for the sole purpose of paying claims as described in subsections (e) and (f) of this section. In no event shall any monies received or held by the State of Vermont, other than monies deposited into the State PACE Reserve Fund or interest on monies in that Fund, be available to meet this obligation or the payment of a remaining past due balance or any other obligation under this subchapter.
(e) In this section, "remaining past due balance" means that amount, if any, of a past due balance on an assessment under this subchapter that exists:
(1) immediately following foreclosure on a property in a district that participates in the loss reserve fund administered by the entity described in subsection 3269(f) of this title; and
(2) after the application, to the past due balances of the assessment on that property, of the proceeds available from the foreclosure, net of superior liens, and of the assets of that loss reserve fund.
(f) The obligation of the State PACE Reserve Fund shall be to fund 90 percent of a remaining past due balance, upon presentation of a claim and application acceptable to the Treasurer and the entity described in subsection 3269(f) of this title, provided that the total amount of all such funding from the State PACE Reserve Fund shall not exceed the smallest of the following:
(1) $1,000,000.00.
(2) The funds available pursuant to subsection (d) of this section.
(3) Five percent of the total of all assessments under this subchapter in the districts that participate in the loss reserve fund administered by the entity described in subsection 3269(f) of this title. (Added 2011, No. 47, § 18h, eff. Jan. 1, 2012.)