HF 2748

as introduced - 91st Legislature (2019 - 2020) Posted on 03/28/2019 02:24pm

A bill for an act
relating to capital investment; energy; establishing a loan fund for energy
conservation improvements in schools; appropriating money; authorizing the sale
and issuance of state bonds; 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.372] SCHOOL ENERGY CONSERVATION LOAN PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
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new text begin (b) "Energy conservation improvement" means the predesign, design, acquisition,
construction, or installation of a solar energy system for a school building that (1) is
incorporated into the building or is a permanent fixture, (2) has a useful life of more than
ten years, and (3) is designed to result in a demand-side net reduction in energy use by the
school building's electrical, heating, ventilating, air-conditioning, or hot water systems.
new text end

new text begin (c) "School district" means an independent or special school district.
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new text begin Subd. 2. new text end

new text begin Establishment; conditions. new text end

new text begin (a) A school energy conservation improvement
loan program is established to make loans to school districts for energy conservation
improvements as provided in this section.
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new text begin (b) The commissioner shall make loans on a first-come, first-served basis.
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new text begin (c) A school district may not be awarded more than an aggregate total of $......., whether
for one or more projects or one or more loans under this section. A loan may be for up to
....... percent of total project costs.
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new text begin (d) A loan interest rate must be at one-half the rate the state pays in interest for the
various purpose bonds sold immediately preceding the issuance of the loan to the school
district. A loan term must not exceed 15 years.
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new text begin (e) Loan principal and interest payments must begin no later than one year after
completion of the project.
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new text begin (f) Loan principal and interest payments must be deposited in the state bond fund under
section 16A.641.
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new text begin Subd. 3. new text end

new text begin Applications. new text end

new text begin A school district applying for an energy conservation improvement
loan must submit an application to the commissioner on a form, in the manner, and at the
time prescribed by the commissioner. An applicant must supply the following information:
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new text begin (1) the total estimated cost of the energy conservation improvements and the loan amount
sought;
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new text begin (2) a description of energy conservation improvements;
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new text begin (3) a detailed budget for the project, including all sources and uses of money;
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new text begin (4) calculations sufficient to demonstrate the expected energy and monetary savings that
result from construction and installation of the energy conservation improvements;
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new text begin (5) information demonstrating the school district's ability to repay the loan; and
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new text begin (6) any additional information requested by the commissioner.
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new text begin Subd. 4. new text end

new text begin Exception. new text end

new text begin Section 126C.10, subdivision 14, clause (11), does not apply to
loans made under this section. A loan made under this section is not included in the
calculation of debt for purposes of debt limits under section 475.53, subdivision 4.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION; BOND SALE AUTHORIZATION.
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new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $16,000,000 is appropriated from the bond proceeds
fund to the commissioner of commerce to provide loans to school districts for energy
conservation improvements under Minnesota Statutes, section 216C.372.
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new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the bond
proceeds fund, the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $16,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
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new text begin EFFECTIVE DATE. new text end

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