HF 3228

as introduced - 86th Legislature (2009 - 2010) Posted on 03/01/2010 09:09am

A bill for an act
relating to energy; the environment; creating renewable energy source conversion
grant program for municipal utilities and cooperative electric associations;
authorizing issuance and sale of bonds; appropriating money; proposing coding
for new law in Minnesota Statutes, chapter 216C.

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

Section 1.

new text begin [216C.435] RENEWABLE ENERGY SOURCE CONVERSION
GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The commissioner of commerce shall develop, implement,
administer, and oversee the renewable energy source conversion grant program under this
section. The commissioner shall specifically develop procedures, qualifications, and
technical standards for municipal utilities and cooperative electric associations to qualify
for a grant under this program.
new text end

new text begin Subd. 2. new text end

new text begin Grant purposes. new text end

new text begin The commissioner may issue grants to finance the
conversion of coal-fired facilities of community-owned or publicly owned municipal
utilities or cooperative electric associations to facilities generating electricity from
renewable energy sources listed in section 216B.2422, subdivision 1, paragraph (c), for the
purposes of reducing greenhouse gas emissions, enhancing the environment and natural
resources of Minnesota, and promoting green energy development and jobs.
new text end

new text begin Subd. 3. new text end

new text begin Grant proposals and selection criteria. new text end

new text begin (a) The commissioner shall
receive requests for proposals from statutory and home rule charter cities for grants under
this section. The commissioner shall select proposals based on the following criteria:
new text end

new text begin (1) the reliability and availability of the renewable energy source proposed to
replace coal;
new text end

new text begin (2) the reliability and cost-effectiveness of the renewable energy technology to
be installed under the proposal;
new text end

new text begin (3) the extent to which the proposal effectively integrates with the environmental,
conservation, and energy-efficiency programs and goals of this state;
new text end

new text begin (4) the life cycle energy use and greenhouse gas emissions reductions per dollar of
installed cost;
new text end

new text begin (5) the geographic distribution of projects throughout the state;
new text end

new text begin (6) the total cost of the project and the percentage of that cost requested as a grant;
and
new text end

new text begin (7) other criteria the commissioner may determine to be necessary or appropriate.
new text end

new text begin Subd. 4. new text end

new text begin Account; appropriation. new text end

new text begin (a) A renewable energy source conversion grant
program account is established in the state treasury. Money in the account consists of the
proceeds of bonds issued under section 216C.436, interest and other earnings on money in
the account, legislative appropriations from the outdoor heritage fund or other state funds,
and money from any other source credited to the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner of commerce to make
grants under this section and to the commissioner of management and budget to pay debt
service and other costs under section 216C.436. Payment of debt service costs and funding
reserves take priority over use of money in the account for any other purpose.
new text end

Sec. 2.

new text begin [216C.436] RENEWABLE ENERGY SOURCE CONVERSION BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Bonding authority; definition. new text end

new text begin (a) The commissioner of
management and budget, if requested by the commissioner of commerce, shall sell and
issue state bonds for the following purposes:
new text end

new text begin (1) to make grants under section 216C.435;
new text end

new text begin (2) to pay the costs of issuance, debt service, and bond insurance or other credit
enhancements, and to fund reserves; and
new text end

new text begin (3) to refund bonds issued under this section.
new text end

new text begin (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 $..,...,...; the principal
amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and
(3), is not limited.
new text end

new text begin (c) For the purpose of this section, "commissioner" means the commissioner of
management and budget.
new text end

new text begin Subd. 2. new text end

new text begin Procedure. new text end

new text begin 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.435. Sections 16A.672 to 16A.675 apply
to the bonds. The proceeds of the bonds issued under this section must be credited to
the renewable energy source conversion grant program account created under section
216C.435.
new text end

new text begin Subd. 3. new text end

new text begin Revenue sources. new text end

new text begin The debt service on the bonds is payable only from the
following sources:
new text end

new text begin (1) revenue credited to the renewable energy source conversion grant program
account from the sources identified in section 216C.435 or from any other source; and
new text end

new text begin (2) other revenues pledged to the payment of the bonds.
new text end

new text begin Subd. 4. new text end

new text begin Refunding bonds. new text end

new text begin The commissioner may issue bonds to refund
outstanding bonds issued under subdivision 1, including the payment of any redemption
premiums on the bonds and any interest accrued or to accrue to the first redemption date
after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the
discretion of the commissioner, be applied to the purchases or payment at maturity of the
bonds to be refunded, or the redemption of the outstanding bonds on the first redemption
date after delivery of the refunding bonds and may, until so used, be placed in escrow to
be applied to the purchase, retirement, or redemption. Refunding bonds issued under this
subdivision must be issued and secured in the manner provided by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Not a general or moral obligation. new text end

new text begin Bonds issued under this section are
not public debt, and the full faith, credit, and taxing powers of the state are not pledged
for their payment. The bonds may not be paid, directly in whole or in part from a tax of
statewide application on any class of property, income, transaction, or privilege. Payment
of the bonds is limited to the revenues explicitly authorized to be pledged under this
section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
revenues and other legal security for them is insufficient.
new text end

new text begin Subd. 6. new text end

new text begin Trustee. new text end

new text begin The commissioner may contract with and appoint a trustee for
bondholders. The trustee has the powers and authority vested in it by the commissioner
under the bond and trust indentures.
new text end

new text begin Subd. 7. new text end

new text begin Pledges. new text end

new text begin A pledge made by the commissioner is valid and binding from
the time the pledge is made. The money or property pledged and later received by the
commissioner is immediately subject to the lien of the pledge without any physical
delivery of the property or money or further act, and the lien of the pledge is valid and
binding as against all parties having claims of any kind in tort, contract, or otherwise
against the commissioner, whether or not those parties have notice of the lien or pledge.
Neither the order nor any other instrument by which a pledge is created need be recorded.
new text end

new text begin Subd. 8. new text end

new text begin Bonds; purchase and cancellation. new text end

new text begin The commissioner, subject to
agreements with bondholders that may then exist, may, out of any money available for the
purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are
then redeemable, the redemption price then applicable plus accrued interest to the next
interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price
applicable on the first date after the purchase upon which the bonds become subject to
redemption plus accrued interest to that date.
new text end

new text begin Subd. 9. new text end

new text begin State pledge against impairment of contracts. new text end

new text begin The state pledges and
agrees with the holders of any bonds that the state will not limit or alter the rights vested in
the commissioner to fulfill the terms of any agreements made with the bondholders, or
in any way impair the rights and remedies of the holders until the bonds, together with
interest on them, with interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceeding by or on behalf of the bondholders,
are fully met and discharged. The commissioner may include this pledge and agreement
of the state in any agreement with the holders of bonds issued under this section.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $..,...,... is transferred to the renewable energy source conversion grant program
account from the outdoor heritage fund and is appropriated to the commissioner of
commerce for disbursal as grants for the purposes of Minnesota Statutes, sections
216C.435 and 216C.436.
new text end