HF 1835

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; establishing wind energy conversion system loan guarantee
program; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 216C.

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

Section 1.

new text begin [216C.42] WIND ENERGY LOAN GUARANTEE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Created. new text end

new text begin (a) The wind energy loan guarantee program is created
to be administered by the commissioner of commerce. The purpose of the program is
to encourage the financing, construction, and operation in Minnesota of wind energy
conversion systems. The program must:
new text end

new text begin (1) guarantee financial institutions that provide financing for a wind energy
conversion system that the state will guarantee, in case of a borrower's default, up to 15
percent of the value of the amount financed, not to exceed $300,000 for each system;
new text end

new text begin (2) allow the interest rate to be negotiable between the financial institution and
borrower, except that one percent on the outstanding balance must be charged annually
as a loan guarantee fee and paid to the state and deposited in the account established in
subdivision 2;
new text end

new text begin (3) require that the financial institution making a loan guaranteed pursuant to this
section must be located in Minnesota; and
new text end

new text begin (4) require that the wind energy conversion system for which financing is requested
be located in Minnesota.
new text end

new text begin (b) The program may not provide insurance for more than 20 systems.
new text end

new text begin Subd. 2. new text end

new text begin Wind energy loan guarantee account. new text end

new text begin The wind energy loan guarantee
account is established as a separate account in the special revenue fund in the state
treasury. The account consists of the proceeds of the loan guarantee fees collected
annually, any federal money that may be made available for this program, money
appropriated or donated to the account, and any interest earned on investments of money
in the account. Money in the account is appropriated to the commissioner for the purposes
of this section. State guarantee payments must be disbursed as the first source for payment
on default of a loan.
new text end

new text begin Subd. 3. new text end

new text begin Rules. new text end

new text begin The commissioner may adopt rules to operate the program.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the commissioner of commerce for
deposit in the wind energy loan guarantee account in the special revenue fund for the
purposes of that account. The appropriation does not lapse.
new text end