Prior to initiating a project to be funded through membership
shares, capital stock, or other permissible securities, the renewable energy
cooperative corporation shall disclose, in writing, to all members, prospective
members, and prospective investors, all material information about the project.
For purposes of this subsection, "writing" includes printed, electronic and
internet media. However, all disclosures shall be made available in printed
format and prospective purchasers shall be notified of the option to obtain
printed disclosures at no cost. Information disclosed shall include, but are
not limited to, the following:
(1)
Basic terms of the project, including:
(a)
The cost of the project;
(b)
Projected amount of energy to be generated;
(c) Probable users or purchasers of the
energy;
(d) Anticipated revenue to
be generated by the project; and
(e) Anticipated returns and distribution of
revenue to investors.
(2) The physical location of the
electricity-generating facility and the type of facility planned to be built
and operated.
(3) Property leased
or acquired by the renewable energy cooperative corporation in order to
construct the facility.
(4)
Information on the risks that may arise based on the outcome of an engineering
analysis done to assess the suitability of a location for the project.
(5) Site surveys or other
evaluations of the energy yields anticipated by the construction of the
facility.
(6) All zoning
approvals, building permits, and other regulatory permissions the renewable
energy cooperative corporation must secure in order to complete the project.
(7) Insurance coverage for the
projects, and risks if insurance coverage becomes more expensive or is
unattainable at commercially reasonable rates.
(8) An estimate of how much money the
renewable energy cooperative corporation intends to raise for the project, how
the money will be held in escrow or otherwise impounded, and how much the
renewable energy cooperative corporation may need to raise to complete the
project, if any.
(9) If notes are
offered to the membership or investors for a particular project, the renewable
energy cooperative corporation shall disclose at a minimum the interest rate,
the term, the maturity of the notes, payment dates, expected source of
repayment, use of the proceeds, any conditions on prepayment, and a ban on
secondary trading.
(10) A
calculation of estimated net proceeds or savings that may be apportioned,
distributed and paid to a member for the generation of electricity, and any
risks to patronage posed by increased costs or decreased revenue.
(11) All other material information related
to the project.
(12) Amendments to
any information described in subsections (a) through (i) to account for any
material changes in the project.
