Minnesota Legislature
HF 3205
as introduced - 88th Legislature (2013 - 2014) Posted on 03/19/2014 12:17pm
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A bill for an act
relating to energy; modifying an existing microenergy loan program to include
certain community energy projects; amending Minnesota Statutes 2012, sections
216C.145; 216C.146, subdivisions 1, 2, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 216C.145, is amended to read:
216C.145 MICROENERGY new text begin AND COMMUNITY ENERGY EFFICIENCY
new text end LOAN PROGRAM.
Subdivision 1.
Definitions.
(a) The definitions in this subdivision apply to this
section.
(b) "deleted text begin Small-scaledeleted text end Renewable energynew text begin and community energy efficiencynew text end " projects
include solar thermal water heating, solar electric or photovoltaic equipment, small
wind energy conversion systems of less than 250 kW, anaerobic digester gas systems,
microhydro systems up to 100 kW, deleted text begin anddeleted text end heating and cooling applications using new text begin solar thermal
or new text end geothermal energynew text begin , and industrial, commercial, or public energy efficiency projectsnew text end .
(c) "Unit of local government" means any home rule charter or statutory city, county,
commission, district, authority, or other political subdivision or instrumentality of this
state, including a sanitary district, park district, the Metropolitan Council, a port authority,
an economic development authority, or a housing and redevelopment authority.
Subd. 2.
Program established.
The commissioner of commerce shall develop,
implement, and administer a microenergy new text begin and community energy efficiency new text end loan program
under this section.
Subd. 3.
Loan purposes.
(a) The commissioner may issue low-interest, long-term
loans to units of local government to new text begin (1) new text end finance community-owned or publicly owned
deleted text begin small scaledeleted text end new text begin small-scalenew text end renewable energy systems or deleted text begin todeleted text end new text begin cost-effective energy efficiency
improvements to public buildings, (2)new text end provide loans or other aids to small businesses
to install small-scale renewable energy systemsnew text begin , or (3) provide loans or other aids to
industrial or commercial businesses for cost-effective energy efficiency projects or to
install small-scale renewable energy systemsnew text end .
(b) The commissioner may participate in loans made by the Housing Finance
Agency to residential property owners, private developers, nonprofit organizations,
or units of local government under sections 462A.05, subdivisions 14 and 18; and
462A.33 for the construction, purchase, or rehabilitation of residential housing to facilitate
the installation of small-scale renewable energy systems in residential housing and
cost-effective energy conservation improvements identified in an energy efficiency audit.
The commissioner shall assist the Housing Finance Agency in assessing the technical
qualifications of loan applicants.
Subd. 4.
Technical standards.
The commissioner shall determine technical
standards for small-scale renewable energy systems new text begin and community energy efficiency
projects new text end to qualify for loans under this section.
Subd. 5.
Loan proposals.
(a) At least once a year, the commissioner shall publish in
the State Register a request for proposals from units of local government for a loan under
this section. Within 45 days after the deadline for receipt of proposals, the commissioner
shall select proposals based on the following criteria:
(1) the reliability and cost-effectiveness of the renewable new text begin or energy efficiency
new text end technology to be installed under the proposal;
(2) the extent to which the proposal effectively integrates with the conservation and
energy efficiency programs new text begin or goals new text end of the energy utilities serving the proposer;
(3) the total life cycle energy use and greenhouse gas emissions reductions per
dollar of installed cost;
(4) the diversity of the renewable energy new text begin or energy efficiency new text end technology installed
under the proposal;
(5) the geographic distribution of projects throughout the state;
(6) the percentage of total project cost requested;
(7) the proposed security for payback of the loan; and
(8) other criteria the commissioner may determine to be necessary and appropriate.
Subd. 6.
Loan terms.
A loan under this section must be issued at the lowest interest
rate required to recover principal and interest plus the costs of issuing the loan, and must
be for a minimum of 15 years, unless the commissioner determines that a shorter loan
period of no less than deleted text begin tendeleted text end new text begin five new text end years is necessary and feasible.
Subd. 7.
Account.
A microenergy new text begin and community energy efficiency new text end loan account is
established in the state treasury. Money in the account consists of the proceeds of revenue
bonds issued under section 216C.146, interest and other earnings on money in the account,
money received in repayment of loans from the account, legislative appropriations, and
money from any other source credited to the account.
Subd. 8.
Appropriation.
Money in the account is appropriated to the commissioner
of commerce to make microenergy new text begin and community energy efficiency new text end loans under this
section and to the commissioner of management and budget to pay debt service and other
costs under section 216C.146. Payment of debt service costs and funding reserves take
priority over use of money in the account for any other purpose.
Sec. 2.
Minnesota Statutes 2012, section 216C.146, subdivision 1, is amended to read:
Subdivision 1.
Bonding authority; definition.
(a) The commissioner of
management and budget, if requested by the commissioner of commerce, shall sell and
issue state revenue bonds for the following purposes:
(1) to make microenergy new text begin and community energy efficiency new text end loans under section
216C.145;
(2) to pay the costs of issuance, debt service, and bond insurance or other credit
enhancements, and to fund reserves; and
(3) to refund bonds issued under this section.
(b) The aggregate principal amount of bonds for the purposes of paragraph (a),
clause (1), that may be outstanding at any time may not exceed new text begin $100,000,000 of which up
to new text end $20,000,000new text begin shall be reserved for microenergy projectsnew text end ; the principal amount of bonds
that may be issued for the purposes of paragraph (a), clauses (2) and (3), is not limited.
(c) For the purpose of this section, "commissioner" means the commissioner of
management and budget.
Sec. 3.
Minnesota Statutes 2012, section 216C.146, subdivision 2, is amended to read:
Subd. 2.
Procedure.
The commissioner may sell and issue the bonds on the terms and
conditions the commissioner determines to be in the best interests of the state. The bonds
may be sold at public or private sale. The commissioner may enter into any agreements or
pledges the commissioner determines necessary or useful to sell the bonds that are not
inconsistent with section 216C.145. Sections 16A.672 to 16A.675 apply to the bonds. The
proceeds of the bonds issued under this section must be credited to the microenergy new text begin and
community energy efficiency new text end loan account created under section 216C.145.
Sec. 4.
Minnesota Statutes 2012, section 216C.146, subdivision 3, is amended to read:
Subd. 3.
Revenue sources.
The debt service on the bonds is payable only from the
following sources:
(1) revenue credited to the microenergy new text begin and community energy efficiency new text end loan
account from the sources identified in section 216C.145 or from any other source; and
(2) other revenues pledged to the payment of the bonds.