<a id="pl.1.3"></a><var>1.3</var>investments; requiring a report; appropriating money;amending Minnesota <br/>
<a id="pl.1.4"></a><var>1.4</var>Statutes 2006, section 216C.09; Minnesota Statutes 2007 Supplement, section <br/>
<a id="pl.1.5"></a><var>1.5</var>216B.241, by adding a subdivision; proposing coding for new law in Minnesota <br/>
<a id="pl.1.6"></a><var>1.6</var>Statutes, chapters 16B; 216C; repealing Laws 2007, chapter 57, article 2, section <br/>
<a id="pl.1.7"></a><var>1.7</var>30.<br/>
<a id="pl.1.8"></a><var>1.8</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.9"></a><var>1.9</var>    Section 1. <b>[16B.321] DEFINITIONS.</b><br/>
<a id="pl.1.10"></a><var>1.10</var>    Subdivision 1. <b>Scope.</b> For the purpose of this section and section 16B.322, the terms <br/>
<a id="pl.1.11"></a><var>1.11</var>defined in this section have the meanings given them.<br/>
<a id="pl.1.12"></a><var>1.12</var>    Subd. 2. <b>Energy improvement project.</b> "Energy improvement project" means:<br/>
<a id="pl.1.13"></a><var>1.13</var>    (1) a project to improve energy efficiency in a building or facility, including the <br/>
<a id="pl.1.14"></a><var>1.14</var>design, acquisition, installation, construction, and commissioning of equipment or <br/>
<a id="pl.1.15"></a><var>1.15</var>improvements to a building or facility owned or operated by a state agency, and training <br/>
<a id="pl.1.16"></a><var>1.16</var>of building or facility staff necessary to properly operate and maintain the equipment or <br/>
<a id="pl.1.17"></a><var>1.17</var>improvements; or<br/>
<a id="pl.1.18"></a><var>1.18</var>    (2) a project to design, acquire, install, construct, and commission equipment or <br/>
<a id="pl.1.19"></a><var>1.19</var>products to utilize solar, wind, geothermal, biomass, or other alternative energy sources in <br/>
<a id="pl.1.20"></a><var>1.20</var>heating, cooling, or providing electricity for a building or facility owned or operated by a <br/>
<a id="pl.1.21"></a><var>1.21</var>state agency and training of building or facility staff necessary to properly operate and <br/>
<a id="pl.1.22"></a><var>1.22</var>maintain the equipment or improvements.<br/>
<a id="pl.1.23"></a><var>1.23</var>    Subd. 3. <b>Energy project study.</b> "Energy project study" means a technical and <br/>
<a id="pl.1.24"></a><var>1.24</var>financial study of one or more energy improvement projects, including:<br/>
<a id="pl.1.25"></a><var>1.25</var>    (1) an analysis of historical energy consumption and cost data;<br/>
<a id="pl.2.1"></a><var>2.1</var>    (2) a description of existing equipment, structural elements, operating characteristics, <br/>
<a id="pl.2.2"></a><var>2.2</var>and other conditions affecting energy use;<br/>
<a id="pl.2.3"></a><var>2.3</var>    (3) a description of the proposed energy improvement projects;<br/>
<a id="pl.2.4"></a><var>2.4</var>    (4) a detailed budget for the proposed project; and<br/>
<a id="pl.2.5"></a><var>2.5</var>    (5) calculations sufficient to demonstrate the expected energy and operational cost <br/>
<a id="pl.2.6"></a><var>2.6</var>savings and reduction in fossil-fuel use.<br/>
<a id="pl.2.7"></a><var>2.7</var>    Subd. 4. <b>Financing agreement.</b> "Financing agreement" means a tax-exempt <br/>
<a id="pl.2.8"></a><var>2.8</var>lease-purchase agreement entered into by the commissioner of administration and a <br/>
<a id="pl.2.9"></a><var>2.9</var>financial institution under a standard project financing agreement offered under section <br/>
<a id="pl.2.10"></a><var>2.10</var>16B.322, subdivision 4.<br/>
<a id="pl.2.11"></a><var>2.11</var>    Subd. 5. <b>State agency.</b> "State agency" means any state officer, employee, board, <br/>
<a id="pl.2.12"></a><var>2.12</var>commission, authority, department, or other agency of the executive branch of state <br/>
<a id="pl.2.13"></a><var>2.13</var>government.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.14"></a><var>2.14</var>    Sec. 2. <b>[16B.322] ENERGY IMPROVEMENT FINANCING PROGRAM FOR </b><br/>
<a id="pl.2.15"></a><var>2.15</var><b>STATE GOVERNMENT.</b><br/>
<a id="pl.2.16"></a><var>2.16</var>    Subdivision 1. <b>Commissioner's authority and duties; state agency authority.</b> The <br/>
<a id="pl.2.17"></a><var>2.17</var>commissioner shall administer this section. A state agency may enter into contracts for the <br/>
<a id="pl.2.18"></a><var>2.18</var>purposes of this section with the commissioner and participating financial institutions. All <br/>
<a id="pl.2.19"></a><var>2.19</var>technical services and construction contracts must be executed through the appropriate <br/>
<a id="pl.2.20"></a><var>2.20</var>procurement procedure in chapters 16B, 16C, and other applicable law.<br/>
<a id="pl.2.21"></a><var>2.21</var>    Subd. 2. <b>Program eligibility; voluntary program participation; targeted </b><br/>
<a id="pl.2.22"></a><var>2.22</var><b>technical services.</b> A state agency may elect to participate in the program. The <br/>
<a id="pl.2.23"></a><var>2.23</var>commissioner may prioritize and target technical services offered under subdivision 3 to <br/>
<a id="pl.2.24"></a><var>2.24</var>state agencies with state buildings or facilities that the commissioner determines offer the <br/>
<a id="pl.2.25"></a><var>2.25</var>greatest potential to improve energy efficiency or reduce use of fossil-fuel energy.<br/>
<a id="pl.2.26"></a><var>2.26</var>    Subd. 3. <b>Target technical services.</b> The commissioner may require full or <br/>
<a id="pl.2.27"></a><var>2.27</var>partial reimbursement of costs for technical services provided to a state agency, subject <br/>
<a id="pl.2.28"></a><var>2.28</var>to terms and conditions specified and agreed to by contract prior to the delivery of <br/>
<a id="pl.2.29"></a><var>2.29</var>technical services. The commissioner of commerce may transfer up to $1,000,000 of the <br/>
<a id="pl.2.30"></a><var>2.30</var>appropriation in Laws 1988, chapter 686, article 1, section 38, to the commissioner of <br/>
<a id="pl.2.31"></a><var>2.31</var>administration for the purposes of this section.<br/>
<a id="pl.2.32"></a><var>2.32</var>    Subd. 4. <b>Financing agreement.</b> The commissioner shall solicit proposals from <br/>
<a id="pl.2.33"></a><var>2.33</var>private financial institutions and may enter into a financing agreement with one or more <br/>
<a id="pl.2.34"></a><var>2.34</var>financial institutions. The term of the financing agreement must not exceed 15 years <br/>
<a id="pl.2.35"></a><var>2.35</var>from the date of final completion of the energy improvement project. The financing <br/>
<a id="pl.3.1"></a><var>3.1</var>agreement is assignable to the state agency operating or managing the state building or <br/>
<a id="pl.3.2"></a><var>3.2</var>facility improved by the energy improvement project. The proceeds from the financing <br/>
<a id="pl.3.3"></a><var>3.3</var>agreement are appropriated to the commissioner and may be used for the purposes of <br/>
<a id="pl.3.4"></a><var>3.4</var>this section and are available until spent.<br/>
<a id="pl.3.5"></a><var>3.5</var>    Subd. 5. <b>Qualifying energy improvement projects.</b> The commissioner may <br/>
<a id="pl.3.6"></a><var>3.6</var>approve an energy improvement project and enter into a financing agreement if the <br/>
<a id="pl.3.7"></a><var>3.7</var>commissioner determines that:<br/>
<a id="pl.3.8"></a><var>3.8</var>    (1) the project and financing agreement have been approved by the governing body <br/>
<a id="pl.3.9"></a><var>3.9</var>or head of the state agency that operates or manages the state building or facility to be <br/>
<a id="pl.3.10"></a><var>3.10</var>improved;<br/>
<a id="pl.3.11"></a><var>3.11</var>    (2) the project is technically and economically feasible;<br/>
<a id="pl.3.12"></a><var>3.12</var>    (3) the state agency that operates or manages the state building or facility has made <br/>
<a id="pl.3.13"></a><var>3.13</var>adequate provision for the operation and maintenance of the project;<br/>
<a id="pl.3.14"></a><var>3.14</var>    (4) if an energy efficiency improvement, the project has a substantial likelihood to <br/>
<a id="pl.3.15"></a><var>3.15</var>result in a positive cash flow in each year the financing agreement is in effect; and<br/>
<a id="pl.3.16"></a><var>3.16</var>    (5) if a renewable energy improvement, the project has a substantial likelihood to <br/>
<a id="pl.3.17"></a><var>3.17</var>reduce use of fossil-fuel energy.<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 6. <b>Program costs.</b> Program costs incurred by the commissioner or a state <br/>
<a id="pl.3.19"></a><var>3.19</var>agency that are not reimbursed or paid directly under a financing agreement may be paid <br/>
<a id="pl.3.20"></a><var>3.20</var>with funds made available to the commissioner under section 216C.43, subdivision 10.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.3.21"></a><var>3.21</var>    Sec. 3. Minnesota Statutes 2007 Supplement, section 216B.241, is amended by adding <br/>
<a id="pl.3.22"></a><var>3.22</var>a subdivision to read:<br/>
<a id="pl.3.23"></a><var>3.23</var>    Subd. 9. <b>Coordination with utility conservation improvement programs.</b> The <br/>
<a id="pl.3.24"></a><var>3.24</var>contractor selected by the commissioner in subdivision 2 shall ensure that the local <br/>
<a id="pl.3.25"></a><var>3.25</var>government makes use of all applicable conservation improvement programs provided <br/>
<a id="pl.3.26"></a><var>3.26</var>by utilities providing electric or natural gas service. Consistent with direction from the <br/>
<a id="pl.3.27"></a><var>3.27</var>commissioner, a utility may count the savings resulting from its energy improvement <br/>
<a id="pl.3.28"></a><var>3.28</var>projects under sections 16B.322 and 216C.43 towards the utility's energy-saving goal <br/>
<a id="pl.3.29"></a><var>3.29</var>under section 216B.241, subdivision 1c.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.30"></a><var>3.30</var>    Sec. 4. Minnesota Statutes 2006, section 216C.09, is amended to read:<br/>
<a id="pl.3.31"></a><var>3.31</var><b>216C.09 COMMISSIONER DUTIES.</b><br/>
<a id="pl.3.32"></a><var>3.32</var>    (a) The commissioner shall:<br/>
<a id="pl.3.33"></a><var>3.33</var>    (1) manage the department as the central repository within the state government for <br/>
<a id="pl.3.34"></a><var>3.34</var>the collection of data on energy;<br/>
<a id="pl.4.1"></a><var>4.1</var>    (2) prepare and adopt an emergency allocation plan specifying actions to be taken <br/>
<a id="pl.4.2"></a><var>4.2</var>in the event of an impending serious shortage of energy, or a threat to public health, <br/>
<a id="pl.4.3"></a><var>4.3</var>safety, or welfare;<br/>
<a id="pl.4.4"></a><var>4.4</var>    (3) undertake a continuing assessment of trends in the consumption of all forms of <br/>
<a id="pl.4.5"></a><var>4.5</var>energy and analyze the social, economic, and environmental consequences of these trends;<br/>
<a id="pl.4.6"></a><var>4.6</var>    (4) carry out energy conservation measures as specified by the legislature and <br/>
<a id="pl.4.7"></a><var>4.7</var>recommend to the governor and the legislature additional energy policies and conservation <br/>
<a id="pl.4.8"></a><var>4.8</var>measures as required to meet the objectives of sections 
         <statute_ref>216C.05</statute_ref> to 
         <statute_ref>216C.30</statute_ref>;<br/>
<a id="pl.4.9"></a><var>4.9</var>    (5) collect and analyze data relating to present and future demands and resources <br/>
<a id="pl.4.10"></a><var>4.10</var>for all sources of energy;<br/>
<a id="pl.4.11"></a><var>4.11</var>    (6) evaluate policies governing the establishment of rates and prices for energy <br/>
<a id="pl.4.12"></a><var>4.12</var>as related to energy conservation, and other goals and policies of sections 
         <statute_ref>216C.05</statute_ref> to <br/>
<statute_ref><a id="pl.4.13"></a><var>4.13</var>216C.30
         </statute_ref>, and make recommendations for changes in energy pricing policies and rate <br/>
<a id="pl.4.14"></a><var>4.14</var>schedules;<br/>
<a id="pl.4.15"></a><var>4.15</var>    (7) study the impact and relationship of the state energy policies to international, <br/>
<a id="pl.4.16"></a><var>4.16</var>national, and regional energy policies;<br/>
<a id="pl.4.17"></a><var>4.17</var>    (8) design and implement a state program for the conservation of energy; this <br/>
<a id="pl.4.18"></a><var>4.18</var>program shall include but not be limited to, general commercial, industrial, and residential, <br/>
<a id="pl.4.19"></a><var>4.19</var>and transportation areas; such program shall also provide for the evaluation of energy <br/>
<a id="pl.4.20"></a><var>4.20</var>systems as they relate to lighting, heating, refrigeration, air conditioning, building design <br/>
<a id="pl.4.21"></a><var>4.21</var>and operation, and appliance manufacturing and operation;<br/>
<a id="pl.4.22"></a><var>4.22</var>    (9) inform and educate the public about the sources and uses of energy and the <br/>
<a id="pl.4.23"></a><var>4.23</var>ways in which persons can conserve energy;<br/>
<a id="pl.4.24"></a><var>4.24</var>    (10) dispense funds made available for the purpose of research studies and projects <br/>
<a id="pl.4.25"></a><var>4.25</var>of professional and civic orientation, which are related to either energy conservation, <br/>
<a id="pl.4.26"></a><var>4.26</var>resource recovery, or the development of alternative energy technologies which conserve <br/>
<a id="pl.4.27"></a><var>4.27</var>nonrenewable energy resources while creating minimum environmental impact;<br/>
<a id="pl.4.28"></a><var>4.28</var>    (11) charge other governmental departments and agencies involved in energy-related <br/>
<a id="pl.4.29"></a><var>4.29</var>activities with specific information gathering goals and require that those goals be met;<br/>
<a id="pl.4.30"></a><var>4.30</var>    (12) design a comprehensive program for the development of indigenous energy <br/>
<a id="pl.4.31"></a><var>4.31</var>resources. The program shall include, but not be limited to, providing technical, <br/>
<a id="pl.4.32"></a><var>4.32</var>informational, educational, and financial services and materials to persons, businesses, <br/>
<a id="pl.4.33"></a><var>4.33</var>municipalities, and organizations involved in the development of solar, wind, hydropower, <br/>
<a id="pl.4.34"></a><var>4.34</var>peat, fiber fuels, biomass, and other alternative energy resources. The program shall be <br/>
<a id="pl.4.35"></a><var>4.35</var>evaluated by the alternative energy technical activity; and<br/>
<a id="pl.5.1"></a><var>5.1</var>    (13) dispense loans, grants, or other financial aid from money received from <br/>
<a id="pl.5.2"></a><var>5.2</var>litigation or settlement of alleged violations of federal petroleum-pricing regulations <br/>
<a id="pl.5.3"></a><var>5.3</var>made available to the department for that purpose. The commissioner shall adopt rules <br/>
<a id="pl.5.4"></a><var>5.4</var>under chapter 14 for this purpose.<br/>
<a id="pl.5.5"></a><var>5.5</var>    (b) Further, the commissioner may participate fully in hearings before the <br/>
<a id="pl.5.6"></a><var>5.6</var>Public Utilities Commission on matters pertaining to rate design, cost allocation, <br/>
<a id="pl.5.7"></a><var>5.7</var>efficient resource utilization, utility conservation investments, small power production, <br/>
<a id="pl.5.8"></a><var>5.8</var>cogeneration, and other rate issues. The commissioner shall support the policies stated in <br/>
<a id="pl.5.9"></a><var>5.9</var>section 
         <statute_ref>216C.05</statute_ref> and shall prepare and defend testimony proposed to encourage energy <br/>
<a id="pl.5.10"></a><var>5.10</var>conservation improvements as defined in section 
         <statute_ref>216B.241</statute_ref>.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.5.11"></a><var>5.11</var>    Sec. 5. <b>[216C.42] DEFINITIONS.</b><br/>
<a id="pl.5.12"></a><var>5.12</var>    Subdivision 1. <b>Scope.</b> For the purpose of this section and section 216C.43, the terms <br/>
<a id="pl.5.13"></a><var>5.13</var>defined in this section have the meanings given them.<br/>
<a id="pl.5.14"></a><var>5.14</var>    Subd. 2. <b>Energy improvement project.</b> "Energy improvement project" means <br/>
<a id="pl.5.15"></a><var>5.15</var>a project to improve energy efficiency in a building or facility, including the design, <br/>
<a id="pl.5.16"></a><var>5.16</var>acquisition, installation, and commissioning of equipment or improvements to a building <br/>
<a id="pl.5.17"></a><var>5.17</var>or facility, and training of building or facility staff necessary to properly operate and <br/>
<a id="pl.5.18"></a><var>5.18</var>maintain the equipment or improvements.<br/>
<a id="pl.5.19"></a><var>5.19</var>    Subd. 3. <b>Energy project study.</b> "Energy project study" means a technical and <br/>
<a id="pl.5.20"></a><var>5.20</var>financial study of one or more energy improvement projects, including:<br/>
<a id="pl.5.21"></a><var>5.21</var>    (1) an analysis of historical energy consumption and cost data;<br/>
<a id="pl.5.22"></a><var>5.22</var>    (2) a description of existing equipment, structural elements, operating characteristics, <br/>
<a id="pl.5.23"></a><var>5.23</var>and other conditions affecting energy use;<br/>
<a id="pl.5.24"></a><var>5.24</var>    (3) a description of the proposed energy improvement projects;<br/>
<a id="pl.5.25"></a><var>5.25</var>    (4) a detailed budget for the proposed project; and<br/>
<a id="pl.5.26"></a><var>5.26</var>    (5) calculations sufficient to demonstrate the expected energy savings.<br/>
<a id="pl.5.27"></a><var>5.27</var>    Subd. 4. <b>Financing agreement.</b> "Financing agreement" means a tax-exempt <br/>
<a id="pl.5.28"></a><var>5.28</var>lease-purchase agreement entered into by a local government and a financial institution <br/>
<a id="pl.5.29"></a><var>5.29</var>under a standard project financing agreement offered under section 216C.43, subdivision 6.<br/>
<a id="pl.5.30"></a><var>5.30</var>    Subd. 5. <b>Local government.</b> "Local government" means a Minnesota county, <br/>
<a id="pl.5.31"></a><var>5.31</var>statutory or home rule charter city, town, school district, or any combination of those units <br/>
<a id="pl.5.32"></a><var>5.32</var>operating under an agreement to exercise powers jointly.<br/>
<a id="pl.5.33"></a><var>5.33</var>    Subd. 6. <b>Program.</b> "Program" means the energy improvement financing program <br/>
<a id="pl.5.34"></a><var>5.34</var>for local governments authorized by section 216C.43.<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 7. <b>Supplemental cash flow agreement.</b> "Supplemental cash flow agreement" <br/>
<a id="pl.6.2"></a><var>6.2</var>means an agreement by the commissioner to lend funds to a local government up to an <br/>
<a id="pl.6.3"></a><var>6.3</var>amount necessary to ensure that the cumulative payments made by the local government <br/>
<a id="pl.6.4"></a><var>6.4</var>under a financing agreement minus the amount loaned by the commissioner do not exceed <br/>
<a id="pl.6.5"></a><var>6.5</var>the actual energy and operating cost savings attributable to the energy improvement <br/>
<a id="pl.6.6"></a><var>6.6</var>project for the term of the supplemental cash flow agreement.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.6.7"></a><var>6.7</var>    Sec. 6. <b>[216C.43] ENERGY IMPROVEMENT FINANCING PROGRAM FOR </b><br/>
<a id="pl.6.8"></a><var>6.8</var><b>LOCAL GOVERNMENT.</b><br/>
<a id="pl.6.9"></a><var>6.9</var>    Subdivision 1. <b>Commissioner's authority and duties; local government </b><br/>
<a id="pl.6.10"></a><var>6.10</var><b>authority.</b> The commissioner shall administer this section. A local government may <br/>
<a id="pl.6.11"></a><var>6.11</var>enter into contracts for the purposes of this section with the commissioner, the primary <br/>
<a id="pl.6.12"></a><var>6.12</var>contractor, other contracted technical service providers, and participating financial <br/>
<a id="pl.6.13"></a><var>6.13</var>institutions.<br/>
<a id="pl.6.14"></a><var>6.14</var>    Subd. 2. <b>Program eligibility; voluntary program participation; targeted </b><br/>
<a id="pl.6.15"></a><var>6.15</var><b>technical services.</b> A local government may elect to participate in the program. The <br/>
<a id="pl.6.16"></a><var>6.16</var>commissioner may prioritize and target technical services offered under subdivision <br/>
<a id="pl.6.17"></a><var>6.17</var>5 to public entities that the commissioner determines offer the greatest potential for <br/>
<a id="pl.6.18"></a><var>6.18</var>cost-effective energy improvement projects.<br/>
<a id="pl.6.19"></a><var>6.19</var>    Subd. 3. <b>Primary contractor for technical, financial, and program management </b><br/>
<a id="pl.6.20"></a><var>6.20</var><b>services.</b> The commissioner may enter into a contract for the delivery of technical <br/>
<a id="pl.6.21"></a><var>6.21</var>services, financial management, marketing, and administrative services necessary for <br/>
<a id="pl.6.22"></a><var>6.22</var>implementation of the program.<br/>
<a id="pl.6.23"></a><var>6.23</var>    Subd. 4. <b>Targeted technical services.</b> The commissioner shall offer technical <br/>
<a id="pl.6.24"></a><var>6.24</var>services to targeted public entities to conduct energy project studies. The commissioner <br/>
<a id="pl.6.25"></a><var>6.25</var>may contract with one or more qualified technical service providers to conduct energy <br/>
<a id="pl.6.26"></a><var>6.26</var>project studies for targeted public entities. The commissioner may require full or partial <br/>
<a id="pl.6.27"></a><var>6.27</var>reimbursement of costs for technical services provided to a local government, subject to <br/>
<a id="pl.6.28"></a><var>6.28</var>terms and conditions specified and agreed to by contract prior to the delivery of technical <br/>
<a id="pl.6.29"></a><var>6.29</var>services. A local government may independently procure technical services to conduct an <br/>
<a id="pl.6.30"></a><var>6.30</var>energy project study, but the energy project study must be reviewed and approved by the <br/>
<a id="pl.6.31"></a><var>6.31</var>commissioner to qualify an energy improvement project for a financing agreement under <br/>
<a id="pl.6.32"></a><var>6.32</var>subdivision 6 or a supplemental cash flow agreement under subdivision 7.<br/>
<a id="pl.6.33"></a><var>6.33</var>    Subd. 5. <b>Participation of technical service providers statewide.</b> Program <br/>
<a id="pl.6.34"></a><var>6.34</var>activities must be implemented to encourage statewide participation of engineers, <br/>
<a id="pl.6.35"></a><var>6.35</var>architects, energy auditors, contractors, and other technical service providers. The <br/>
<a id="pl.7.1"></a><var>7.1</var>commissioner may provide training on energy project study requirements and procedures <br/>
<a id="pl.7.2"></a><var>7.2</var>to technical service providers.<br/>
<a id="pl.7.3"></a><var>7.3</var>    Subd. 6. <b>Standard project financing agreement.</b> The commissioner shall solicit <br/>
<a id="pl.7.4"></a><var>7.4</var>proposals from private financial institutions and may enter into a standard project <br/>
<a id="pl.7.5"></a><var>7.5</var>financing agreement with one or more financial institutions. A standard project financing <br/>
<a id="pl.7.6"></a><var>7.6</var>agreement must specify terms and conditions uniformly available to all participating <br/>
<a id="pl.7.7"></a><var>7.7</var>public entities for financing to implement energy improvement projects under this section. <br/>
<a id="pl.7.8"></a><var>7.8</var>A local government may choose to finance an energy improvement project by means other <br/>
<a id="pl.7.9"></a><var>7.9</var>than a standard project financing agreement, but a supplemental cash flow agreement <br/>
<a id="pl.7.10"></a><var>7.10</var>under subdivision 7 must not be offered unless the commissioner determines that the other <br/>
<a id="pl.7.11"></a><var>7.11</var>financing means creates no greater potential obligation under a supplemental cash flow <br/>
<a id="pl.7.12"></a><var>7.12</var>agreement than would be created through a standard project financing agreement.<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subd. 7. <b>Supplemental cash flow agreement.</b> (a) The commissioner may offer <br/>
<a id="pl.7.14"></a><var>7.14</var>a supplemental cash flow agreement to a participating local government for qualifying <br/>
<a id="pl.7.15"></a><var>7.15</var>energy improvement projects. The term of a supplemental cash flow agreement may not <br/>
<a id="pl.7.16"></a><var>7.16</var>exceed 15 years. Terms and conditions of a supplemental cash flow agreement must be <br/>
<a id="pl.7.17"></a><var>7.17</var>agreed to by contract prior to a local government entering into a financing agreement.<br/>
<a id="pl.7.18"></a><var>7.18</var>    (b) A supplemental cash flow agreement contract must include, but is not limited to:<br/>
<a id="pl.7.19"></a><var>7.19</var>    (1) specification of methods and procedures to measure and verify energy cost <br/>
<a id="pl.7.20"></a><var>7.20</var>savings;<br/>
<a id="pl.7.21"></a><var>7.21</var>    (2) obligations of the local government to operate and maintain the energy <br/>
<a id="pl.7.22"></a><var>7.22</var>improvements;<br/>
<a id="pl.7.23"></a><var>7.23</var>    (3) procedures to modify the supplemental cash flow agreement if the local <br/>
<a id="pl.7.24"></a><var>7.24</var>government modifies operating characteristics of its building or facility in a manner that <br/>
<a id="pl.7.25"></a><var>7.25</var>adversely affects energy cost savings;<br/>
<a id="pl.7.26"></a><var>7.26</var>    (4) interest charged on the loan, which may not exceed the interest on the related <br/>
<a id="pl.7.27"></a><var>7.27</var>financial agreement; and<br/>
<a id="pl.7.28"></a><var>7.28</var>    (5) procedures for resolution of disputes.<br/>
<a id="pl.7.29"></a><var>7.29</var>    Subd. 8. <b>Qualifying energy improvement projects.</b> A local government may <br/>
<a id="pl.7.30"></a><var>7.30</var>submit to the commissioner, on a form prescribed by the commissioner, an application for <br/>
<a id="pl.7.31"></a><var>7.31</var>a financing agreement authorization and supplemental cash flow agreement for energy <br/>
<a id="pl.7.32"></a><var>7.32</var>improvement projects. The commissioner shall approve an energy improvement project <br/>
<a id="pl.7.33"></a><var>7.33</var>for a supplemental cash flow agreement and authorize eligibility for a financing agreement <br/>
<a id="pl.7.34"></a><var>7.34</var>if the commissioner determines that:<br/>
<a id="pl.7.35"></a><var>7.35</var>    (1) the application has been approved by the governing body or agency head of the <br/>
<a id="pl.7.36"></a><var>7.36</var>local government;<br/>
<a id="pl.8.1"></a><var>8.1</var>    (2) the project is technically and economically feasible;<br/>
<a id="pl.8.2"></a><var>8.2</var>    (3) the local government has made adequate provision for the operation and <br/>
<a id="pl.8.3"></a><var>8.3</var>maintenance of the project;<br/>
<a id="pl.8.4"></a><var>8.4</var>    (4) the project has a substantial likelihood to result in a positive cash flow in each <br/>
<a id="pl.8.5"></a><var>8.5</var>year the financing agreement is in effect; and<br/>
<a id="pl.8.6"></a><var>8.6</var>    (5) adequate funds will be available to the commissioner to fulfill the supplemental <br/>
<a id="pl.8.7"></a><var>8.7</var>cash flow agreement.<br/>
<a id="pl.8.8"></a><var>8.8</var>    Subd. 9. <b>Program costs.</b> Program costs incurred by the commissioner or a public <br/>
<a id="pl.8.9"></a><var>8.9</var>entity that are not direct costs to implement energy improvement projects may be paid <br/>
<a id="pl.8.10"></a><var>8.10</var>with program funds appropriated under subdivision 10.<br/>
<a id="pl.8.11"></a><var>8.11</var>    Subd. 10. <b>Funding; appropriation; receipts.</b> Petroleum violation escrow funds <br/>
<a id="pl.8.12"></a><var>8.12</var>appropriated to the commissioner by Laws 1988, chapter 686, article 1, section 38, for <br/>
<a id="pl.8.13"></a><var>8.13</var>state energy loan programs for schools, hospitals, and public buildings, and reappropriated <br/>
<a id="pl.8.14"></a><var>8.14</var>by Laws 2007, chapter 57, article 2, section 30, are appropriated to the commissioner <br/>
<a id="pl.8.15"></a><var>8.15</var>for the purposes of this section and are available until spent. The commissioner may <br/>
<a id="pl.8.16"></a><var>8.16</var>transfer up to $1,000,000 of this appropriation to the commissioner of administration for <br/>
<a id="pl.8.17"></a><var>8.17</var>the purposes of section 16B.322.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.8.18"></a><var>8.18</var>    Sec. 7. <b>REPORT; GREEN STAR AWARD EXPANSION.</b><br/>
<a id="pl.8.19"></a><var>8.19</var>    The Pollution Control Agency and the Office of Energy Security in the Department <br/>
<a id="pl.8.20"></a><var>8.20</var>of Commerce shall, in collaboration with the clean energy resource teams (CERT's), <br/>
<a id="pl.8.21"></a><var>8.21</var>submit a report by February 2, 2009, to the chairs and ranking minority members of the <br/>
<a id="pl.8.22"></a><var>8.22</var>senate and house of representatives committees with primary jurisdiction over energy <br/>
<a id="pl.8.23"></a><var>8.23</var>policy that makes recommendations regarding how to expand eligibility to receive the <br/>
<a id="pl.8.24"></a><var>8.24</var>Green Star award, described in Minnesota Statutes, section 114C.25, to include cities and <br/>
<a id="pl.8.25"></a><var>8.25</var>communities that take action to help meet the state's greenhouse gas emissions reduction <br/>
<a id="pl.8.26"></a><var>8.26</var>goals established in Minnesota Statutes, section 216H.02, subdivision 1. The report must <br/>
<a id="pl.8.27"></a><var>8.27</var>address, at a minimum, the following issues:<br/>
<a id="pl.8.28"></a><var>8.28</var>    (1) the criteria for actions cities and communities must take in order to receive a <br/>
<a id="pl.8.29"></a><var>8.29</var>Green Star award;<br/>
<a id="pl.8.30"></a><var>8.30</var>    (2) what entity or entities would issue the award;<br/>
<a id="pl.8.31"></a><var>8.31</var>    (3) the length of time during which the award may be displayed;<br/>
<a id="pl.8.32"></a><var>8.32</var>    (4) existing state financial and technical assistance available to communities and <br/>
<a id="pl.8.33"></a><var>8.33</var>cities to assist them to reduce greenhouse gas emissions;<br/>
<a id="pl.8.34"></a><var>8.34</var>    (5) sources of additional funding needed to implement the program; and<br/>
<a id="pl.8.35"></a><var>8.35</var>    (6) any other issues that need to be resolved in order to implement the program.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.9.1"></a><var>9.1</var>    Sec. 8. <b> REPEALER.</b><br/>
<a id="pl.9.2"></a><var>9.2</var>Laws 2007, chapter 57, article 2, section 30, is repealed.<br/>
<a id="pl.9.3"></a><var>9.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>