1.1 	A bill for an act
1.2 	relating to energy; establishing an air ventilation improvement and geothermal 
1.3 	infrastructure for schools financing program; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. AIR VENTILATION IMPROVEMENT AND GEOTHERMAL 
1.6 	INFRASTRUCTURE FOR SCHOOLS FINANCING PROGRAM.
 1.7 		Subdivision 1.Establishment. An air ventilation improvement and geothermal 
1.8 	infrastructure for schools financing program is established in the Minnesota Climate 
1.9 	Innovative Finance Authority. The purpose of the program is to provide low-interest financing 
1.10 	to school districts for air ventilation improvements and the installation of geothermal energy 
1.11 	systems on or adjacent to school buildings.
1.12 		Subd. 2.Priority; goals. The Minnesota Climate Innovative Finance Authority must 
1.13 	prioritize the use of program money in a manner that achieves a high ratio of private to 
1.14 	public money invested through financing mechanisms that support, enhance, and complement 
1.15 	the program's goals, including:
1.16 	(1) prioritizing schools and students in communities with high rates of poverty, as 
1.17 	determined by receipt of federal Title I funding;
1.18 	(2) funding an equal number of projects inside the seven-county metropolitan area and 
1.19 	outside the seven-county metropolitan area;
1.20 	(3) serving as a financial resource to reduce the upfront and total costs to implement 
1.21 	qualified projects; and
2.1 	(4) developing consumer protection standards to ensure that financial support is (i) 
2.2 	provided responsibly and transparently, and (ii) in the participating project owners' financial 
2.3 	interest.
2.4 		Subd. 3.Eligibility. To receive financing under this section, a borrower must be an 
2.5 	independent school district under Minnesota Statutes, section 120A.05, subdivision 10; a 
2.6 	special school district under Minnesota Statutes, section 120A.05, subdivision 14; or a 
2.7 	cooperative unit under Minnesota Statutes, section 123A.24, subdivision 2.

2.8 	Sec. 2. APPROPRIATION.
 2.9 		Subdivision 1.General fund. $....... in fiscal year 2026 is appropriated from the general 
2.10 	fund to the Minnesota Climate Innovative Finance Authority for the air ventilation 
2.11 	improvement and geothermal infrastructure for schools financing program.
2.12 		Subd. 2.Renewable development account. Notwithstanding Minnesota Statutes, section 
2.13 	116C.779, subdivision 1, paragraph (j), $....... in fiscal year 2026 is appropriated from the 
2.14 	renewable development account in the special revenue fund to the Climate Innovative 
2.15 	Finance Authority for the air ventilation improvement and geothermal infrastructure for 
2.16 	schools financing program.
2.17 		Subd. 3.Cancellation. Any amount appropriated in subdivisions 1 and 2 that is not used 
2.18 	for financing by June 30, 2027, cancels to the account the money was appropriated from.