Minnesota Legislature
HF 1360
as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2019 01:02pm
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A bill for an act
relating to energy; modifying the commercial PACE loan program; amending
Minnesota Statutes 2018, section 216C.436, subdivisions 1, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2018, section 216C.436, subdivision 1, is amended to read:
Subdivision 1.
Program purpose and authority.
An implementing entity may establish
a commercial PACE loan program to finance cost-effective energy improvementsnew text begin, which
includes new construction,new text end to enable owners of qualifying commercial real property to pay
for the cost-effective energy improvementsnew text begin, including new construction,new text end to the qualifying
real property with the net proceeds and interest earnings of revenue bonds authorized in
this section. An implementing entity may limit the number of qualifying commercial real
properties for which a property owner may receive program financing.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 216C.436, subdivision 4, is amended to read:
Subd. 4.
Financing terms.
Financing provided under this section must have:
(1) a cost-weighted average maturity not exceeding the useful life of the energy
improvements installed, as determined by the implementing entity, but in no event may a
term exceed 20 years;
(2) a principal amount not to exceed the deleted text beginlesserdeleted text endnew text begin greaternew text end of new text begineither: (i) new text end20 percent of the
new text begin appraised value, accepted or approved by the mortgage lender, or (ii) the new text endassessed value of
the real property on which the new text begincost-effective energy new text endimprovements deleted text beginare to be installeddeleted text endnew text begin are
installed or providing an energy savings benefitnew text end or the actual cost of installing the energy
improvements, including the costs of necessary equipment, materials, and labor, the costs
of each related energy audit or renewable energy system feasibility study, and the cost of
verification of installation; and
(3) an interest rate sufficient to pay the financing costs of the program, including the
issuance of bonds and any financing delinquencies.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end