HF 2566

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:

Section 1. new text begin MINNESOTA GREEN BANK STUDY.
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new text begin (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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new text begin (b) The study shall analyze, at a minimum:
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new text begin (1) the structure, authorities and duties, and operations of green banks operating in other
states, including:
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new text begin (i) the types of projects green banks finance;
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new text begin (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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new text begin (iii) how green banks can stimulate demand for capital for projects as well as supply the
capital;
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new text begin (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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new text begin (v) how green banks can utilize existing bonding tools;
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new text begin (2) the implications of developing a green bank as a public, quasi-public, or nonprofit
entity;
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new text begin (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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new text begin (4) a business plan and timeline outlining start-up operations and milestones of a
Minnesota green bank.
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new text begin (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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new text begin (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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new text begin (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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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION.
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new text begin 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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