HF 1147

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 08:21pm

A bill for an act
relating to energy; defining terms in the energy improvements program for local
governments; amending Minnesota Statutes 2012, sections 216C.435, subdivision
8, by adding a subdivision; 216C.436, subdivision 2; 429.101, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 216C.435, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Cost-effective energy improvements. new text end

new text begin "Cost-effective energy
improvements" mean energy improvements that have been identified in an energy audit
or renewable energy system feasibility study as repaying their purchase and installation
costs in 20 years or less, based on the amount of future energy saved and estimated future
energy prices.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216C.435, subdivision 8, is amended to read:

Subd. 8.

Qualifying real property.

"Qualifying real property" means a
single-family or multifamily residential dwelling, or a commercial or industrial building,
that the implementing entity has determined, after review of an energy audit or renewable
energy system feasibility study, can be benefited by installation of new text begin cost-effective new text end energy
improvements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2012, section 216C.436, subdivision 2, is amended to read:

Subd. 2.

Program requirements.

A financing program must:

(1) impose requirements and conditions on financing arrangements to ensure timely
repayment;

(2) require an energy audit or renewable energy system feasibility study to be
conducted on the qualifying real property and reviewed by the implementing entity prior
to approval of the financing;

(3) require the inspection of all installations and a performance verification of at
least ten percent of the energy improvements financed by the program;

(4) new text begin not prohibit the financing of all cost-effective energy improvements not otherwise
prohibited by this section;
new text end

new text begin (5) new text end require that all cost-effective energy improvements be made to a qualifying
real property prior to, or in conjunction with, an applicant's repayment of financing for
energy improvements for that property;

deleted text begin (5) deleted text end new text begin (6) new text end have energy improvements financed by the program performed by licensed
contractors as required by chapter 326B or other law or ordinance;

deleted text begin (6) deleted text end new text begin (7) new text end require disclosures to borrowers by the implementing entity of the risks
involved in borrowing, including the risk of foreclosure if a tax delinquency results from
a default;

deleted text begin (7) deleted text end new text begin (8) new text end provide financing only to those who demonstrate an ability to repay;

deleted text begin (8) deleted text end new text begin (9) new text end not provide financing for a qualifying real property in which the owner is not
current on mortgage or real property tax payments;

deleted text begin (9) deleted text end new text begin (10) new text end require a petition to the implementing entity by all owners of the qualifying
real property requesting collections of repayments as a special assessment under section
429.101;

deleted text begin (10) deleted text end new text begin (11) new text end provide that payments and assessments are not accelerated due to a default
and that a tax delinquency exists only for assessments not paid when due; and

deleted text begin (11) deleted text end new text begin (12) new text end require that liability for special assessments related to the financing runs
with the qualifying real property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2012, section 429.101, subdivision 2, is amended to read:

Subd. 2.

Procedure for assessment.

Any special assessment levied under
subdivision 1 shall be payable in a single installment, or by up to ten equal annual
installments as the council may provide new text begin , except that a special assessment made under an
energy improvements financing program under subdivision 1, paragraph (c), may be
repayable in up to 20 equal installments new text end . With deleted text begin this exception deleted text end new text begin these exceptions new text end , sections
429.061, 429.071, and 429.081 shall apply to assessments made under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end