as introduced - 91st Legislature (2019 - 2020) Posted on 03/18/2019 02:41pm
A bill for an act
relating to energy; requiring a study; appropriating money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) The commissioner of commerce shall contract with an independent consultant with
experience in financing energy conservation and renewable energy projects for a study of
the prospects, options, benefits, and costs of developing a green bank in Minnesota.
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(b) The study shall analyze, at a minimum:
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(1) the structure, authorities and duties, and operations of green banks operating in other
states, including:
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(i) the types of projects green banks finance;
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(ii) the process of aggregating multiple small projects into financial instruments that are
attractive to private lenders and securitizing and marketing those instruments;
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(iii) how green banks can stimulate demand for capital for projects as well as supply the
capital;
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(iv) the levels of the initial capital provided to green banks from public funds, and the
length of time before which the banks generated sufficient funds to fully pay their operating
expenses; and
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(v) how green banks can utilize existing bonding tools;
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(2) the implications of developing a green bank as a public, quasi-public, or nonprofit
entity;
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(3) existing energy efficiency and financing programs in Minnesota and the gaps that a
Minnesota green bank could most effectively fill; and
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(4) a business plan and timeline outlining start-up operations and milestones of a
Minnesota green bank.
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(c) By January 1, 2020, the commissioner of commerce must submit the report required
under this section to the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over energy policy.
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(d) For the purposes of this section, "green bank" means an institution that finances the
deployment of renewable energy and energy efficiency projects by aggregating individual
projects to develop turn-key financial products that leverage capital from private lenders,
enabling broader implementation of those projects while preserving public funds through
loan repayment.
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(e) By January 1, 2020, the commissioner of commerce must submit the report required
under this section to the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over energy policy.
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This section is effective the day following final enactment.
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Notwithstanding section 116C.779, subdivision 1, paragraph (j), $....... in fiscal year
2020 is appropriated from the renewable development account established in Minnesota
Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for a grant to
conduct the green bank study described in subdivision 1.
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