HF 3996

as introduced - 90th Legislature (2017 - 2018) Posted on 03/19/2018 03:08pm

A bill for an act
relating to energy; modifying the energy improvements program; amending
Minnesota Statutes 2016, sections 216C.435, subdivision 8, by adding subdivisions;
216C.436, subdivision 2, by adding subdivisions; repealing Minnesota Statutes
2016, section 216C.436, subdivision 4.

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

Section 1.

Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Eligible measures. new text end

new text begin “Eligible measures” means residential energy improvements
that are permanently affixed to the property and that meet one or more standards or
certification criteria that have been established by a federal agency, including but not limited
to the United States Department of Energy and the United States Environmental Protection
Agency, a state agency, or a credible third-party private organization that publishes generally
acceptable standards with respect to the measure.
new text end

Sec. 2.

Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 7b. new text end

new text begin Program administrator. new text end

new text begin “Program administrator” means a for-profit or a
not-for-profit organization that administers an energy improvement program on behalf of
an implementing entity.
new text end

Sec. 3.

Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 7c. new text end

new text begin Property owner. new text end

new text begin “Property owner” means a property owner of record on the
property subject to the energy improvement assessment.
new text end

Sec. 4.

Minnesota Statutes 2016, section 216C.435, subdivision 8, is amended to read:

Subd. 8.

Qualifying deleted text begin real deleted text end new text begin commercial new text end property.

"Qualifying deleted text begin real deleted text end new text begin commercial new text end property"
means a deleted text begin single-family or deleted text end multifamily residential dwelling, or a commercial or industrial
building, that the implementing entity has determined, after review of an energy audit or
renewable energy system feasibility study, can be benefited by installation of cost-effective
energy improvements.

Sec. 5.

Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Qualifying residential property. new text end

new text begin “Qualifying residential property” means a
single-family or other residential dwelling of four or fewer units that the implementing
entity has determined, after a review of the eligible measures to be installed, can benefit
from installation of the eligible measures.
new text end

Sec. 6.

Minnesota Statutes 2016, section 216C.436, subdivision 2, is amended to read:

Subd. 2.

new text begin Qualifying commercial property new text end program requirements.

A financing program
new text begin for qualifying commercial property new text end must:

(1) impose requirements and conditions on financing arrangements to ensure timely
repayment;

(2) require an energy audit or renewable energy system feasibility study to be conducted
on the qualifying real property and reviewed by the implementing entity prior to approval
of the financing;

(3) require the inspection of all installations and a performance verification of at least
ten percent of the energy improvements financed by the program;

(4) not prohibit the financing of all cost-effective energy improvements not otherwise
prohibited by this section;

(5) require that all cost-effective energy improvements be made to a qualifying real
property prior to, or in conjunction with, an applicant's repayment of financing for energy
improvements for that property;

(6) have energy improvements financed by the program performed by licensed contractors
as required by chapter 326B or other law or ordinance;

(7) require disclosures to borrowers by the implementing entity of the risks involved in
borrowing, including the risk of foreclosure if a tax delinquency results from a default;

(8) provide financing only to those who demonstrate an ability to repay;

(9) not provide financing for a qualifying real property in which the owner is not current
on mortgage or real property tax payments;

(10) require a petition to the implementing entity by all owners of the qualifying real
property requesting collections of repayments as a special assessment under section 429.101;

(11) provide that payments and assessments are not accelerated due to a default and that
a tax delinquency exists only for assessments not paid when due; and

(12) require that liability for special assessments related to the financing runs with the
qualifying real property.

Sec. 7.

Minnesota Statutes 2016, section 216C.436, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Financing requirements for qualifying commercial property programs.
new text end

new text begin Financing provided for qualifying commercial property programs must have:
new text end

new text begin (1) a cost-weighted average maturity not exceeding the useful life of the energy
improvements installed as determined by the implementing entity, but not to exceed a term
of 20 years;
new text end

new text begin (2) a principal amount not to exceed the lesser of 20 percent of (i) the assessed value of
the real property on which the improvements are to be installed, or (ii) the actual cost of
installing the energy improvements, including the costs of necessary equipment, materials,
and labor, the costs of each related energy audit or renewable energy system feasibility
study, and the cost of verification of installation; and
new text end

new text begin (3) an interest rate sufficient to pay the financing costs of the program, including the
issuance of bonds and any financing delinquencies.
new text end

Sec. 8.

Minnesota Statutes 2016, section 216C.436, is amended by adding a subdivision
to read:

new text begin Subd. 2b. new text end

new text begin Qualifying residential property programs eligible measures. new text end

new text begin (a) A program
administrator shall establish, maintain, and make publicly available an eligible measures
list of energy improvements that has been approved by the implementing entity and shall
establish reasonable procedures for the inclusion, maintenance, and removal of information
included on the eligible measures list. The eligible measures list shall, at a minimum, include
the following information for each measure appearing on that list:
new text end

new text begin (1) a name or description of the measure;
new text end

new text begin (2) eligibility criteria, including performance thresholds, certification requirements, and
installation criteria; and
new text end

new text begin (3) expected useful life.
new text end

new text begin (b) A program administrator may offer energy improvements not included in the eligible
measures list if the administrator establishes, maintains, and makes publicly available:
new text end

new text begin (1) an application process approved by the local government to permit a contractor or
property owner to request an energy improvement assessment for a custom measure; and
new text end

new text begin (2) guidelines that have been approved by the local government by which the program
administrator shall review and approve the application for a custom measure. Guidelines
shall identify minimum requirements and criteria that must be met in order for a custom
measure to be approved.
new text end

new text begin (c) Ancillary work may be included in a financing agreement for energy improvements
only if the scope of the ancillary work is directly related to and necessary for the installation
of an eligible measure.
new text end

new text begin (d) Any eligible measure financed under an energy improvements program shall be
affixed to a building or other part of the property and shall constitute an improvement to
the property.
new text end

Sec. 9.

Minnesota Statutes 2016, section 216C.436, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Financing requirements for qualifying residential property programs. new text end

new text begin (a)
A program administrator shall not submit for recordation by a local government any financing
agreement unless the following criteria are met:
new text end

new text begin (1) all property taxes for the property subject to the financing agreement are current.
The program administrator shall ask the property owner whether there has been no more
than one late payment of property taxes on the property for the previous three years or since
the current owner acquired the property, whichever period is shorter;
new text end

new text begin (2) the property subject to the financing agreement has no recorded and outstanding
involuntary liens in excess of $1,000, indexed for inflation;
new text end

new text begin (3) the property subject to the financing agreement has no notices of default currently
recorded, which have not been rescinded;
new text end

new text begin (4) the property owner has not been subject to any bankruptcy proceedings within the
last seven years, except that the property owner may have been subject to a bankruptcy
proceeding that was discharged or dismissed more than two years before the application
date and the property owner has had no more than one 30-day late payment on any mortgage
debt or nonmortgage debt, excluding debt incurred in connection with medical expenses,
as reported on their consumer credit report during the 12 months immediately preceding
the application date;
new text end

new text begin (5) the property owner is current on all mortgage debt on the subject property and has
no more than one 30-day late payment for the debt reported on their consumer credit report
during the 12 months immediately preceding the application date;
new text end

new text begin (6) the property subject to the financing agreement is within the jurisdiction of the
implementing entity;
new text end

new text begin (7) the financing does not exceed 20 percent of the market value of the property, inclusive
of existing recorded assessments;
new text end

new text begin (8) the total balance of energy improvement assessments and mortgage-related debt
recorded against the property subject to the energy improvement assessment does not exceed
97 percent of the fair market value of the property as established by the valuation;
new text end

new text begin (9) the term of the energy improvement assessment does not exceed the estimated useful
life of the eligible measure to which the greatest portion of funds disbursed under the
financing agreement is attributable; and
new text end

new text begin (10) the property owner has disclosed whether additional energy improvement
assessments that have not been recorded have been authorized by any property owner to be
placed on the same subject property.
new text end

new text begin (b) A program administrator shall calculate a market value determination using one of
the following:
new text end

new text begin (1) an automated valuation model, using the following criteria:
new text end

new text begin (i) the automated valuation model must be provided by a third-party vendor;
new text end

new text begin (ii) the automated valuation model must have estimation models with confidence scores
and periodic statistical calibration by the third-party vendor;
new text end

new text begin (iii) the program administrator must request at least three automated valuation models
for each property. The estimated value for each model shall be the average between the
high and low values, if a range is provided; and
new text end

new text begin (iv) the program administrator shall use the estimated value with the highest confidence
score for a property. If an automated valuation model meeting the criteria under items (i)
to (iii) does not return a confidence score for a subject property, the program administrator
shall use the average of all estimated values that have been returned; and
new text end

new text begin (2) the assessed value of the real property on which the improvements are to be installed.
new text end

new text begin (c) The market value determination shall be disclosed to the property owner prior to
signing the financing agreement.
new text end

new text begin (d) A program administrator shall determine, prior to recordation of an energy
improvement financing agreement, that the property owner has a reasonable ability to pay
the annual payment obligation for the energy improvement assessment based on the property
owner income, assets, and current debt obligations. The determination process shall be
based on the following factors:
new text end

new text begin (1) at least one property owner shall submit on their application their monthly income
and monthly housing expenses;
new text end

new text begin (2) housing expenses shall include all mortgage principal and interest payments,
insurance, property taxes, mortgage guaranty insurance, and other preexisting fees and
assessments on the property. Household income may include the income of any persons 18
years of age or older who reside at the property. For any person whose income is considered,
the person's debt obligations must also be considered under the provisions of this section.
The program administrator shall not be required to consider more income than is necessary,
or verify assets if verified income is sufficient to determine the ability to pay the annual
payment obligation;
new text end

new text begin (3) debt obligations calculated in accordance with paragraph (f); and
new text end

new text begin (4) the equity of the property securing the assessment shall not be considered in a
calculation of ability to pay.
new text end

new text begin (e) The program administrator shall determine and consider the current or reasonably
expected income or assets of the property owner that the program administrator relies upon
to determine a property owner’s ability to pay the annual payment obligation for the energy
improvements assessment using reasonably reliable third-party records of the property
owner’s income or assets. The program administrator may use automated verification,
provided the source of that verification is (i) specific to the income of the property owner
and not based on predictive or estimation methodologies, and (ii) has been deemed sufficient
for verification purposes by a federal mortgage lending authority or regulator. Examples of
records the program administrator may use to verify the property owner’s income or assets
include, but are not limited to:
new text end

new text begin (1) a pay stub issued within the last 30 days or financial institution records showing
deposit activity within the last 60 days;
new text end

new text begin (2) copies of tax returns the property owner filed with the Internal Revenue Service or
the Franchise Tax Board;
new text end

new text begin (3) Internal Revenue Service Form W-2 (Wage and Tax Statement) or other similar
Internal Revenue Service forms that are used for reporting wages or tax withholding;
new text end

new text begin (4) payroll statements, including the Department of Defense Leave and Earnings
Statement (LES);
new text end

new text begin (5) financial institution records, such as bank statements or investment account statements
reflecting the value of particular assets;
new text end

new text begin (6) records from the property owner’s employer or third party that obtained income
information from the employer; and
new text end

new text begin (7) records from a federal, state, or local government agency stating the property owner’s
income, including benefits or entitlements.
new text end

new text begin (f) A program administrator shall consider the monthly debt obligations of the property
owner to determine a property owner’s ability to pay the annual obligation of the qualifying
improvements assessment using reasonably reliable third-party records, including one or
more consumer credit reports from agencies that meet the requirements of United States
Code, title 15, section 1681a, paragraph (p). For purposes of this paragraph, monthly debt
obligations means:
new text end

new text begin (1) all secured and unsecured debt reflected in the consumer credit reports obtained by
the program administrator;
new text end

new text begin (2) monthly housing expenses; and
new text end

new text begin (3) any stated alimony or child support obligations.
new text end

new text begin (g) In calculating the ability of the property owner to pay the annual obligation, the
program administrator shall determine that the property owner’s income is sufficient to
meet:
new text end

new text begin (1) the annual energy improvement assessment obligation;
new text end

new text begin (2) any mortgage payments, as defined by the higher of the borrowers self-reported
housing expenses or the mortgage payments identified in the consumer credit reports obtained
by the program administrator;
new text end

new text begin (3) all other existing debts and obligations identified in paragraph (f); and
new text end

new text begin (4) sufficient residual income to meet basic household living expenses. A program
administrator may make reasonable estimation of basic living expenses based on the number
of persons in the household.
new text end

new text begin (h) In the case of emergency or immediate necessity, the requirements of paragraph (e)
may be waived for the funding and recordation of a qualifying improvements assessment
to finance a heating, ventilation, and air conditioning (HVAC) system, boiler, or other
system whose primary function is temperature regulation in a home if all of the following
are met:
new text end

new text begin (1) the program administrator first attempted to use an automated means of verification
as described in paragraph (e);
new text end

new text begin (2) if the program administrator was unable to verify the property owner’s income
pursuant to paragraph (e), the program administrator may rely on the stated income of the
property owner;
new text end

new text begin (3) the funding is limited to the emergency or immediate necessity energy program
improvement and any required ancillary work necessary to the installation and safe operation
of the energy program improvement;
new text end

new text begin (4) the property owner executes a waiver of their right to cancel and confirms the
emergency or immediate necessity of the eligible measure; and
new text end

new text begin (5) the amount of the financing agreement does not exceed $15,000 or a monthly
equivalent payment on the energy improvement program assessment of $125, both indexed
for inflation, whichever is greater.
new text end

new text begin (i) If the determination of a property owner’s ability to pay an annual payment obligation
is lower than the actual annual energy improvement payment obligation under an energy
improvement assessment and the consumer is obligated under a home improvement contract
directly related to such an assessment, the program administrator is responsible for the
difference unless the determination was based on any misrepresentation by any property
owner.
new text end

new text begin (j) An implementing entity may enter into a financing agreement only with the record
owner of the affected property. Any financing agreement entered into under this subdivision
shall be recorded in the public records of the county in which the property is located within
five days after execution of the agreement. An agreement, including supporting documents
and disclosures, entered into under this subdivision does not need to be notarized.
new text end

Sec. 10.

Minnesota Statutes 2016, section 216C.436, is amended by adding a subdivision
to read:

new text begin Subd. 2d. new text end

new text begin Qualifying residential property program oral confirmation; disclosure;
right to cancel; contractor requirements. new text end

new text begin (a) Before a property owner executes an energy
improvement assessment contract, a program administrator operating under an implementing
entity shall:
new text end

new text begin (1) provide a copy of the energy improvement assessment contract;
new text end

new text begin (2) make an oral confirmation, via mobile device or telephone, of the key terms of the
assessment contract, in plain language, with the property owner or a verified authorized
representative of the owner on the call and shall obtain acknowledgment from the property
owner on the call to whom the oral confirmation is given;
new text end

new text begin (3) record the oral confirmation in an audio format under applicable laws, to be
maintained for five years. The program administrator does not comply with this requirement
through the use of a prerecorded message or other similar device or method; and
new text end

new text begin (4) the program administrator shall develop additional procedures to address the needs
and concerns of the elderly to be approved by the implementing entity.
new text end

new text begin (b) Oral confirmation shall include but is not limited to the following:
new text end

new text begin (1) the eligible measure is being funded by an assessment;
new text end

new text begin (2) the total estimated amount the property owner must pay under the energy improvement
assessment contract, including applicable fees;
new text end

new text begin (3) the estimated date the first payment is due;
new text end

new text begin (4) the term of the assessment contract;
new text end

new text begin (5) payments on the energy improvement assessment contract must be collected along
with the property taxes;
new text end

new text begin (6) the property will be subject to a lien during the term of the energy improvement
assessment contract;
new text end

new text begin (7) the property owner has disclosed whether additional energy improvement assessments
have been authorized by any property owner to be placed on the property;
new text end

new text begin (8) the property owner understands and affirms the financial information provided, and
the property owner has the financial means to make payments on the financing agreement
in addition to other expenses;
new text end

new text begin (9) any potential utility savings are not guaranteed, and do not reduce the non-ad valorem
assessment payments or total assessment amount;
new text end

new text begin (10) the program administrator and contractor do not provide tax advice, and the property
owner should seek professional tax advice if the property owner has questions regarding
the tax impact of the non-ad valorem assessment or energy improvements assessment
contract;
new text end

new text begin (11) the obligations under the energy improvement assessment contract may be required
to be paid in full before the property owner sells or refinances the property; and
new text end

new text begin (12) the property owner may be subject to penalties in the event of a delinquency or
default.
new text end

new text begin (c) At the commencement of the oral confirmation, the program administrator shall ask
if the property owner on the call prefers to communicate during the oral confirmation
primarily in a language other than English. If the preferred language is supported by the
program administrator, the oral confirmation shall be given in that primary language, except
where the property owner on the call chooses to communicate through the property owner's
interpreter. If the preferred language is not supported and an interpreter is not chosen by
the property owner on the call, the financing agreement may not proceed. For the purposes
of this section, “the property owner's interpreter” means a person, not a minor, able to speak
fluently and read with full understanding both the English language and any of the languages
specified in this section and who is not employed by, and whose services are not made
available through, the program administrator, the public agency or the contractor, excepting
entities or individuals certified or approved by a local government for translation services
in the preferred language.
new text end

new text begin (d) Beginning on July 1, 2019, if the oral confirmation was conducted primarily in a
language other than English, the program administrator shall deliver, in writing, the financing
agreement, disclosure form, and right to cancel form in the language in which the oral
confirmation was conducted, that includes a translation of every term and condition in that
contract or agreement.
new text end

new text begin (e) Every implementing entity that offers qualifying improvements under this section
shall be required to develop a disclosure form for homeowners. The disclosure form shall
disclose all key financing terms of the financing agreement including, but not limited to:
new text end

new text begin (1) the total amount funded, including the cost of the installed improvements together
with program fees and capitalized interest, if any;
new text end

new text begin (2) the annual tax obligation;
new text end

new text begin (3) the annual payment amounts;
new text end

new text begin (4) the term of the assessment;
new text end

new text begin (5) the stated rate of interest;
new text end

new text begin (6) the annual percentage rate;
new text end

new text begin (7) a payment schedule;
new text end

new text begin (8) the improvements to be installed;
new text end

new text begin (9) if the property owner sells or refinances the property, the property owner may be
required to pay off the assessment as a condition of sale or refinance;
new text end

new text begin (10) no penalty shall be assessed or collected for prepayment of the assessment;
new text end

new text begin (11) any potential utility savings are not guaranteed and do not reduce the assessment
payments or total assessment amount;
new text end

new text begin (12) the assessment must be collected along with the property taxes and results in a lien
on the property;
new text end

new text begin (13) the payments will be added to their property tax bill;
new text end

new text begin (14) failure to pay the assessment may result in penalties and fees, and may result in the
property owner losing the home; and
new text end

new text begin (15) the property owner should seek professional tax advice if the property owner has
questions regarding tax credits, tax deductibility, or the tax impact on the assessment or
financing agreement.
new text end

new text begin A program administrator shall present the disclosure form to a property owner for
acknowledgment prior to the execution of a financing agreement.
new text end

new text begin (f) A program administrator is required, as a part of its financing agreement, to provide
a three-day right to cancel the energy improvements financing. The three-day right expires
on or before midnight of the third business day after a property owner signs the financing
agreement. A program administrator shall be required to provide a printed form for the right
to cancel that is presented to the property owner no later than the time of signing of the
financing agreement.
new text end

new text begin (g) The implementing entity shall develop a form to notify the property owner in writing
and include in the call procedure that the property owner may rescind any financing
agreement entered into under this subdivision no later than three business days after entering
into the agreement. All program administrators shall be required to provide the form at the
same time as the disclosure form. The notification shall be provided to the property owner
as a printed copy unless the property owner agrees to an electronic copy.
new text end

new text begin (h) The property owner may waive the right to cancel if all of the following are met:
new text end

new text begin (1) the contract is executed in connection with the making of emergency or immediately
necessary repairs to protect persons or real or personal property;
new text end

new text begin (2) the property owner initiated the contract for the emergency repair or immediately
necessary repair;
new text end

new text begin (3) the property owner provides a separate statement that is handwritten in ink by the
property owner and dated and signed by each property owner, describing the situation that
requires immediate remedy and expressly acknowledging that the contractor has informed
the property owner of the right to cancel and the property owner waives the right to cancel
the sale; and
new text end

new text begin (4) if the property owner waives the right to cancel on the home improvement contract
to allow the home improvement contractor to proceed with installation and then cancels the
energy improvements program financing, the cancellation does not invalidate the home
improvement contract.
new text end

new text begin (i) A program administrator shall not permit contractors or other third parties to advertise
the availability of financing agreements administered by the program administrator or to
solicit property owners on behalf of the program administrator unless the requirements in
clauses (1) to (8) are met:
new text end

new text begin (1) the contractor maintains a license in good standing with the Department of Labor
and Industry, as well as any other permits, licenses, or registrations required to engage in
business in the jurisdiction where the contractor operates and maintains any required bond
and insurance coverage;
new text end

new text begin (2) the program administrator obtains the contractor’s written agreement that the
contractor or third party will comply with applicable advertising and marketing laws and
regulations, and all other applicable laws;
new text end

new text begin (3) a program administrator shall not provide any direct or indirect cash payment or
other thing of material value to a contractor in excess of the actual price charged by that
contractor to the property owner for the sale and installation of one or more efficiency
improvements financed by a financing agreement. This prohibition does not apply to any
communication between a program administrator and a contractor, any information disclosed
by or to a program administrator, or any service provided by a program administrator to a
contractor to enable or facilitate the installation of efficiency improvements for an application
or prospective application for energy improvements financing;
new text end

new text begin (4) a program administrator is not permitted to reimburse expenses to a contractor for
advertising and marketing campaigns and collateral. The reimbursement of a contractor’s
bona fide and reasonable training expenses related to energy improvement financing is
permitted, provided that such training expenses are actually incurred by the contractor.
Reimbursement shall not exceed $100 per each salesperson or agent of the contractor who
participated in such training and shall be paid directly to the contractor, not the contractor's
salespersons or agents;
new text end

new text begin (5) a program administrator shall not provide any direct cash payment or other thing of
value to a property owner explicitly conditioned upon that property owner entering into a
financing agreement. Programs or promotions that offer reduced fees or interest rates to
property owners are neither a direct cash payment or other thing of value, provided that the
reduced fee or interest rate is reflected in the financing agreement and is in no circumstance
provided to the property owner as cash consideration;
new text end

new text begin (6) a program administrator, contractor, or third party shall not make any representation
as to the tax deductibility of a financing agreement unless that representation is consistent
with the representations, statements, or opinions of the Internal Revenue Service or the
Department of Revenue with regard to the tax treatment of non-ad valorem assessments;
new text end

new text begin (7) at the time of sale, a program administrator shall not provide to a contractor engaged
in soliciting financing agreements on its behalf any information that discloses the amount
of funds for which a property owner is eligible for qualifying improvements of the amount
of equity in a property; and
new text end

new text begin (8) a contractor shall not provide a different price for a project financing under this
section than the contractor would provide if paid in cash by the property owner.
new text end

Sec. 11.

Minnesota Statutes 2016, section 216C.436, is amended by adding a subdivision
to read:

new text begin Subd. 2e. new text end

new text begin Qualifying residential property program reporting requirements. new text end

new text begin (a) An
implementing entity offering energy improvements shall, on an annual basis, make publicly
available on the Web site of the implementing entity a report that contains the following
information along with all methodologies and supporting assumptions or sources relied
upon in preparing the report:
new text end

new text begin (1) the number of energy improvements assessments funded by city, county, and zip
code;
new text end

new text begin (2) the aggregate dollar amount of energy improvements assessments funded by city,
county, and zip code;
new text end

new text begin (3) the average dollar amount of energy improvements assessments funded by city,
county, and zip code;
new text end

new text begin (4) the categories of installed measures, whether energy efficiency, renewable energy,
flood mitigation, and disaster resiliency, and the percentage of qualifying improvements
assessments represented by each category type on a number and dollar basis, by city, county,
and zip code;
new text end

new text begin (5) the number of defaulted assessments and for each defaulted assessment:
new text end

new text begin (i) the total defaulted amount;
new text end

new text begin (ii) the number and dates of missed payments; and
new text end

new text begin (iii) city, county, and zip code in which the underlying property is located;
new text end

new text begin (6) the percentage the defaults represent of the total assessments within each zip code;
new text end

new text begin (7) the total number of parcels defaulted and the number of years in default for each
property;
new text end

new text begin (8) estimated total amount of energy saved, the estimated total dollar amount of the
savings by property owners by measures installed in the calendar year, by city, county, and
zip code, the total number of energy savings improvements, and the number of improvements
installed that meet the Energy Star program standards of the United States Environmental
Protection Agency, including the overall average efficiency rating of installed units for each
product type;
new text end

new text begin (9) estimated total amount of renewable energy produced by measures installed in the
calendar year, by city, county, and zip code. In addition, report the total number of renewable
energy installations, including the average and median system size;
new text end

new text begin (10) estimated amount of greenhouse gas emissions reductions;
new text end

new text begin (11) estimated number of jobs created;
new text end

new text begin (12) the average and median amount of annual and total energy improvement assessments
based on city, county, and zip code; and
new text end

new text begin (13) the number and percentage of homeowners over 60 years of age by city, county,
and zip code.
new text end

new text begin (b) All reports made publicly available under this subdivision shall include only aggregate
data and shall not include any nonpublic personal information.
new text end

Sec. 12.

Minnesota Statutes 2016, section 216C.436, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Applicability; contractual obligations. new text end

new text begin Nothing in this section shall be
construed to void, invalidate, impair, or release a property owner from the contractual
obligations incurred under the financing agreement or to create or modify any rights or
obligations not expressly created or modified under a financing agreement subject to this
section.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 216C.436, subdivision 4, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 18-5819

216C.436 ENERGY IMPROVEMENTS PROGRAM FOR LOCAL GOVERNMENTS.

Subd. 4.

Financing terms.

Financing provided under this section must have:

(1) a cost-weighted average maturity not exceeding the useful life of the energy improvements installed, as determined by the implementing entity, but in no event may a term exceed 20 years;

(2) a principal amount not to exceed the lesser of 20 percent of the assessed value of the real property on which the improvements are to be installed or the actual cost of installing the energy improvements, including the costs of necessary equipment, materials, and labor, the costs of each related energy audit or renewable energy system feasibility study, and the cost of verification of installation; and

(3) an interest rate sufficient to pay the financing costs of the program, including the issuance of bonds and any financing delinquencies.