HF 3109

as introduced - 86th Legislature (2009 - 2010) Posted on 02/22/2010 11:34am

A bill for an act
relating to energy; authorizing green energy revenue bonds; permitting local
assessments for energy improvements by cities and counties; amending
Minnesota Statutes 2008, sections 429.011, by adding subdivisions; 429.021,
subdivision 1; 429.031, subdivision 3; Minnesota Statutes 2009 Supplement,
sections 429.011, subdivision 2a; 469.153, subdivision 2; proposing coding for
new law in Minnesota Statutes, chapter 469.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2009 Supplement, section 429.011, subdivision 2a,
is amended to read:

Subd. 2a.

Municipality; certain counties.

"Municipality" also includes the
following:

(1) a county in the case of construction, reconstruction, or improvement of a county
state-aid highway;

(2) a county in the case of construction, reconstruction, or improvement of a county
highway as defined in section 160.02 including curbs and gutters and storm sewers;

(3) a county exercising its powers and duties under section 444.075, subdivision 1;

(4) a county for expenses not paid for under section 403.113, subdivision 3,
paragraph (b), clause (3); deleted text begin and
deleted text end

(5) a county in the case of the abatement of nuisances deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) a county in the case of on-site energy conservation and renewable energy
improvements.
new text end

Sec. 2.

Minnesota Statutes 2008, section 429.011, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Municipality, energy conservation and renewable energy
improvements. new text end

new text begin For purposes of construction, improvement, alteration, and reconstruction
of an on-site energy conservation and renewable energy system, a municipality may
provide the improvements through and impose special assessments upon the request
of a port authority, economic development authority, industrial development authority,
or housing and redevelopment authority.
new text end

Sec. 3.

Minnesota Statutes 2008, section 429.011, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin On-site energy conservation and renewable energy improvements.
new text end

new text begin "On-site energy conservation and renewable energy improvements" means any type of
active or passive improvement, including insulation; windows or doors; heating, cooling,
or other building systems; lighting systems; energy-related process or manufacturing
changes; energy demand monitoring and regulation equipment; and any other type of
device, improvement, or equipment installed in a building and its property and equipment
for on-site renewable energy generation including, but not limited to, solar photovoltaics
and solar thermal, as well as energy storage devices that may include mobile equipment
charging capability, whether the devices, equipment, or improvements so installed are
publicly or privately owned.
new text end

Sec. 4.

Minnesota Statutes 2008, section 429.021, subdivision 1, is amended to read:

Subdivision 1.

Improvements authorized.

The council of a municipality shall have
power to make the following improvements:

(1) To acquire, open, and widen any street, and to improve the same by constructing,
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
including the beautification thereof and including storm sewers or other street drainage
and connections from sewer, water, or similar mains to curb lines.

(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and
sanitary sewers and systems, including outlets, holding areas and ponds, treatment plants,
pumps, lift stations, service connections, and other appurtenances of a sewer system,
within and without the corporate limits.

(3) To construct, reconstruct, extend, and maintain steam heating mains.

(4) To install, replace, extend, and maintain street lights and street lighting systems
and special lighting systems.

(5) To acquire, improve, construct, reconstruct, extend, and maintain water works
systems, including mains, valves, hydrants, service connections, wells, pumps, reservoirs,
tanks, treatment plants, and other appurtenances of a water works system, within and
without the corporate limits.

(6) To acquire, improve and equip parks, open space areas, playgrounds, and
recreational facilities within or without the corporate limits.

(7) To plant trees on streets and provide for their trimming, care, and removal.

(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
property and to fill the same.

(9) To construct, reconstruct, extend, and maintain dikes and other flood control
works.

(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.

(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
promote a pedestrian skyway system. Such improvement may be made upon a petition
pursuant to section 429.031, subdivision 3.

(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
underground pedestrian concourses.

(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote
public malls, plazas or courtyards.

(14) To construct, reconstruct, extend, and maintain district heating systems.

(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire
protection systems in existing buildings, but only upon a petition pursuant to section
429.031, subdivision 3.

(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
sound barriers.

(17) To improve, construct, reconstruct, extend, and maintain gas and electric
distribution facilities owned by a municipal gas or electric utility.

(18) To purchase, install, and maintain signs, posts, and other markers for addressing
related to the operation of enhanced 911 telephone service.

(19) To improve, construct, extend, and maintain facilities for Internet access and
other communications purposes, if the council finds that:

(i) the facilities are necessary to make available Internet access or other
communications services that are not and will not be available through other providers or
the private market in the reasonably foreseeable future; and

(ii) the service to be provided by the facilities will not compete with service provided
by private entities.

(20) To assess affected property owners for all or a portion of the costs agreed to
with an electric utility, telecommunications carrier, or cable system operator to bury or
alter a new or existing distribution system within the public right-of-way that exceeds the
utility's design and construction standards, or those set by law, tariff, or franchise, but only
upon petition under section 429.031, subdivision 3.

new text begin (21) To construct, reconstruct, improve, alter, and maintain on-site energy
conservation and renewable energy improvements for buildings and property, but only
upon a petition under section 429.031, subdivision 3. The activities under this clause
may also be undertaken by a port authority, economic development authority, industrial
development authority, or housing and redevelopment authority, and the municipality may
act on the request of those entities in imposing special assessments.
new text end

Sec. 5.

Minnesota Statutes 2008, section 429.031, subdivision 3, is amended to read:

Subd. 3.

Petition by all owners.

Whenever all owners of real property abutting
upon any street named as the location of any improvement shall petition the council to
construct the improvement and to assess the entire cost against their property, the council
may, without a public hearing, adopt a resolution determining such fact and ordering the
improvement. The validity of the resolution shall not be questioned by any taxpayer
or property owner or the municipality unless an action for that purpose is commenced
within 30 days after adoption of the resolution as provided in section 429.036. Nothing
herein prevents any property owner from questioning the amount or validity of the special
assessment against the owner's property pursuant to section 429.081. In the case of a
petition for the municipality to own and install a fire protection system, a pedestrian
skyway system, new text begin on-site energy conservation and renewable energy improvements, new text end or
on-site water contaminant improvements, the petition must contain or be accompanied
by an undertaking satisfactory to the city by the petitioner that the petitioner will grant
the municipality the necessary property interest in the building to permit the city to enter
upon the property and the building to construct, maintain, and operate the fire protection
system, pedestrian skyway system, new text begin on-site energy conservation and renewable energy
improvements, new text end or on-site water contaminant improvements. In the case of a petition for
the installation of a privately owned fire protection system, a privately owned pedestrian
skyway system, new text begin privately owned on-site energy conservation and renewable energy
improvements, new text end or privately owned on-site water contaminant improvements, the petition
shall contain the plans and specifications for the improvement, the estimated cost of the
improvement and a statement indicating whether the city or the owner will contract for
the construction of the improvement. If the owner is contracting for the construction
of the improvement, the city shall not approve the petition until it has reviewed and
approved the plans, specifications, and cost estimates contained in the petition. The
construction cost financed under section 429.091 shall not exceed the amount of the cost
estimate contained in the petition. In the case of a petition for the installation of a fire
protection system, a pedestrian skyway system, new text begin on-site energy conservation and renewable
energy improvements, new text end or on-site water contaminant improvements, the petitioner may
request abandonment of the improvement at any time after it has been ordered pursuant
to subdivision 1 and before contracts have been awarded for the construction of the
improvement under section 429.041, subdivision 2. If such a request is received, the city
council shall abandon the proceedings but in such case the petitioner shall reimburse the
city for any and all expenses incurred by the city in connection with the improvement.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 469.153, subdivision 2, is
amended to read:

Subd. 2.

Project.

(a) "Project" means (1) any properties, real or personal, used
or useful in connection with a revenue producing enterprise, or any combination of
two or more such enterprises engaged or to be engaged in generating, transmitting, or
distributing electricity, assembling, fabricating, manufacturing, mixing, processing,
storing, warehousing, or distributing any products of agriculture, forestry, mining, or
manufacture, or in research and development activity in this field, or in the manufacturing,
creation, or production of intangible property, including any patent, copyright, formula,
process, design, know-how, format, or other similar item; (2) any properties, real or
personal, used or useful in the abatement or control of noise, air, or water pollution, or in
the disposal of solid wastes, in connection with a revenue producing enterprise, or any
combination of two or more such enterprises engaged or to be engaged in any business
or industry; (3) any properties, real or personal, used or useful in connection with the
business of telephonic communications, conducted or to be conducted by a telephone
company, including toll lines, poles, cables, switching, and other electronic equipment
and administrative, data processing, garage, and research and development facilities;
(4) any properties, real or personal, used or useful in connection with a district heating
system, consisting of the use of one or more energy conversion facilities to produce hot
water or steam for distribution to homes and businesses, including cogeneration facilities,
distribution lines, service facilities, and retrofit facilities for modifying the user's heating
or water system to use the heat energy converted from the steam or hot water.

(b) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, or any combination of two or more
such enterprises engaged in any business.

(c) "Project" also includes any properties, real or personal, used or useful for the
promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts,
recreational facilities of the type that may be acquired under section 471.191, and related
facilities.

(d) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, whether or not operated for profit,
engaged in providing health care services, including hospitals, nursing homes, and related
medical facilities.

(e) "Project" does not include any property to be sold or to be affixed to or consumed
in the production of property for sale, and does not include any housing facility to be
rented or used as a permanent residence.

(f) "Project" also means the activities of any revenue producing enterprise involving
the construction, fabrication, sale, new text begin purchase, new text end or leasing of equipment or products to be
used in new text begin the reduction of energy demand and in new text end gathering, processing, generating, new text begin storing, new text end
transmitting, or distributing solar, wind, geothermal, biomass, agricultural or forestry
energy crops, or other alternative energy sources for use by any person or any residential,
commercial, industrial, or governmental entity in heating, cooling, or otherwise providing
energy for a facility owned or operated by that person or entity.

(g) "Project" also includes any properties, real or personal, used or useful in
connection with a county jail, county regional jail, community corrections facilities
authorized by chapter 401, or other law enforcement facilities, the plans for which are
approved by the commissioner of corrections; provided that the provisions of section
469.155, subdivisions 7 and 13, do not apply to those projects.

(h) "Project" also includes any real properties used or useful in furtherance of the
purpose and policy of section 469.141.

(i) "Project" also includes related facilities as defined by section 471A.02,
subdivision 11.

(j) "Project" also includes an undertaking to purchase the obligations of local
governments located in whole or in part within the boundaries of the municipality that are
issued or to be issued for public purposes.

new text begin (k) "Project" also includes any properties designated as a qualified green building
and sustainable design project under section 469.1655.
new text end

Sec. 7.

new text begin [469.1655] QUALIFIED GREEN BUILDING AND SUSTAINABLE
DESIGN PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Project designation and eligibility. new text end

new text begin (a) A municipality or
redevelopment agency issuing revenue bonds under sections 469.152 to 469.165 may
designate the project for which the bonds are issued as a qualified green building and
sustainable design project as provided in this section.
new text end

new text begin (b) The issuer must ensure that each designated project substantially:
new text end

new text begin (1) reduces consumption of electricity compared to conventional construction;
new text end

new text begin (2) reduces daily carbon dioxide emissions compared to energy generated from coal;
new text end

new text begin (3) increases the use of solar photovoltaic cells in this state; or
new text end

new text begin (4) increases the use of fuel cells to generate energy.
new text end

new text begin (c) Before designating a project under this section, the issuer must document in
writing that the project will satisfy the eligibility criteria in this section.
new text end

new text begin (d) At least 75 percent of the square footage of commercial buildings that are part of
the project must be registered with a recognized green building rating system, including
Minnesota's sustainable building guidelines or the United States Green Building Council's
LEED certification, or in the case of residential buildings, Minnesota GreenStar rating,
and must be reasonably expected to receive the certification.
new text end

new text begin Subd. 2. new text end

new text begin Applications. new text end

new text begin An application for designation under this section must
include a project proposal that describes the energy-efficiency, renewable energy, and
sustainable design features of the project and demonstrates that the project satisfies the
eligibility criteria in this section. The application must include a description of:
new text end

new text begin (1) the amount of electric consumption reduced as compared to conventional
construction;
new text end

new text begin (2) the amount of carbon dioxide daily emissions reduced compared to energy
generated from coal;
new text end

new text begin (3) the amount of the gross installed capacity of the project's solar photovoltaic
capacity measured in megawatts; and
new text end

new text begin (4) the amount in megawatts of the project's energy generated by fuel cells.
new text end

new text begin Subd. 3. new text end

new text begin Use of bond financing. new text end

new text begin The project proposal must include a description of
the bond financing that will be allocated for financing of one or more of the following:
new text end

new text begin (1) the purchase, construction, integration, or other use of energy-efficiency,
renewable energy, and sustainable design features of the project; or
new text end

new text begin (2) compliance with certification standards cited under subdivision 1, paragraph (d).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for bonds issued after June 30, 2010.
new text end