2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/04/2021 05:08pm
A bill for an act
relating to energy; establishing a revolving loan account for energy conservation
in state buildings; appropriating money; amending Minnesota Statutes 2020,
sections 16B.86; 16B.87.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2020, section 16B.86, is amended to read:
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(a) For purposes of this section and section 16B.87, the
following terms have the meanings given them.
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(b) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (d).
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(c) "Energy conservation improvement" has the meaning given in section 216B.241,
subdivision 1, paragraph (e).
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(d) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
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(e) "Project" means the energy conservation improvements financed by a loan made
under this section.
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(f) "State building" means an existing building owned by the state of Minnesota.
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The deleted text begin productivitydeleted text end new text begin state building energy conservation
improvement revolvingnew text end loan account is new text begin established as new text end a deleted text begin specialdeleted text end new text begin separatenew text end account in the state
treasury. new text begin The commissioner shall manage the account and shall credit to the account
investment income, repayments of principal and interest, and any other earnings arising
from assets of the account. new text end Money in the account is appropriated to the commissioner of
administration to make loans to deleted text begin finance agency projects that will result in either reduced
operating costs or increased revenues, or both, for a state agencydeleted text end new text begin state agencies to implement
energy conservation and energy efficiency improvements in state buildings under section
16B.87new text end .
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This section is effective the day following final enactment.
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Minnesota Statutes 2020, section 16B.87, is amended to read:
The deleted text begin Productivitydeleted text end new text begin State Building Energy Conservation
Improvementnew text end Loan Committee consists of the commissioners of administration, management
and budget, and deleted text begin revenuedeleted text end new text begin commercenew text end . The commissioner of administration serves as chair of
the committee. The members serve without compensation or reimbursement for expenses.
new text begin (a) new text end An agency shall apply for a loan on a form
deleted text begin provideddeleted text end new text begin developednew text end by the commissioner of administrationdeleted text begin .deleted text end new text begin that requires an applicant to
submit the following information:
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(1) a description of the proposed project, including existing equipment, structural
elements, operating characteristics, and other conditions affecting energy use that the energy
conservation improvements financed by the loan modify or replace;
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(2) the total estimated project cost and the loan amount sought;
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(3) a detailed project budget;
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(4) projections of the proposed project's expected energy and monetary savings;
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(5) information demonstrating the agency's ability to repay the loan;
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(6) a description of the energy conservation programs offered by the utility providing
service to the state building from which the applicant will seek additional funding for the
project; and
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(7) any additional information requested by the commissioner.
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new text begin (b)new text end The committee shall review applications for loans and shall award a loan based upon
criteria adopted by the committee. deleted text begin The committee shall determine the amount, interest, and
other terms of the loan. The time for repayment of a loan may not exceed five years.deleted text end new text begin A loan
made under this section must:
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(1) be at or below the market rate of interest, including a zero interest loan; and
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(2) have a term no longer than seven years.
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(c) In making awards, the committee shall give preference to:
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(1) applicants that have sought funding for the project through energy conservation
programs offered by the utility serving the state building that is the subject of the application;
and
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(2) to the extent feasible, applications for state buildings located within the electric retail
service area of the utility that is subject to section 116C.779.
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An agency receiving a loan under this section shall repay the loan
according to the terms of the loan agreement. The principal and interest must be paid to the
commissioner of administrationnew text begin ,new text end who shall deposit it in the deleted text begin productivitydeleted text end new text begin state building energy
conservation improvement revolvingnew text end loan deleted text begin funddeleted text end new text begin account. Payments of loan principal and
interest must begin no later than one year after the project is completednew text end .
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Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$15,000,000 in fiscal year 2022 is transferred from the renewable development account
established under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner
of administration for deposit in the state building energy conservation improvement account
established in Minnesota Statutes, section 16B.86, for the purpose of providing loans to
state agencies for energy conservation projects under Minnesota Statutes, section 16B.87.
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This section is effective the day following final enactment.
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