Minnesota Legislature
HF 4043
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/30/2006 |
Current Version - as introduced
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A bill for an act
relating to energy; changing energy conservation investment loan program into a
grant program; amending Minnesota Statutes 2004, section 216C.37.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 216C.37, is amended to read:
216C.37 ENERGY CONSERVATION INVESTMENT LOANnew text begin OR GRANTnew text end .
Subdivision 1.
Definitions.
In this section:
(a) "Commissioner" means the commissioner of commerce.
(b) "Energy conservation investments" means all capital expenditures that are
associated with conservation measures identified in an energy project study, and that have
a ten-year or less payback period.
(c) "Municipality" means any county, statutory or home rule charter city, town,
school district, or any combination of those units operating under an agreement to jointly
undertake projects authorized in this section.
(d) "Energy project study" means a study of one or more energy-related capital
improvement projects analyzed in sufficient detail to support a financing application. At a
minimum, it must include one year of energy consumption and cost data, a description
of existing conditions, a description of proposed conditions, a detailed description of the
costs of the project, and calculations sufficient to document the proposed energy savings.
Subd. 2.
Eligibility.
The commissioner shall approve loansnew text begin or grantsnew text end to
municipalities for energy conservation investments. A loannew text begin or grantnew text end may be made to a
municipality that has demonstrated that it has complied with all the appropriate provisions
of this section and has made adequate provisions to assure proper and efficient operation
of the municipal facilities after improvements and modifications are completed.
Subd. 3.
Application.
Application for a loannew text begin or grantnew text end to be made pursuant to this
section shall be made by a municipality to the commissioner on a form the commissioner
prescribes by rule. The commissioner shall review each application to determine:
(1) whether or not the municipality's proposal is complete;
(2) whether the calculations and estimates contained in the energy project study
are appropriate, accurate, and reasonable;
(3) whether the project is eligible for a loannew text begin or grantnew text end ;
(4) the amount of the loannew text begin or grantnew text end for which the project is eligible; and
(5) the means by which the municipality proposes to finance the project including:
(i) a loan new text begin or grant new text end authorized by this section;
(ii) a grant of money appropriated by state law;
(iii) a grant to the municipality by an agency of the federal government within the
amount of money then appropriated to that agency; or
(iv) the appropriation of other money of the municipality to an account for the
construction of the project.
Subd. 3a.
Additional information.
During application review, the commissioner
may request additional information about a proposed energy conservation investment,
including information on project cost. Failure to provide information requested
disqualifies a loannew text begin or grantnew text end applicant.
Subd. 3b.
Public accessibility of loannew text begin or grantnew text end application data.
Data contained
in an application submitted to the commissioner for a loannew text begin or grantnew text end to be made pursuant to
this section, including supporting technical documentation, is classified as "public data
not on individuals" under section 13.02, subdivision 14.
Subd. 4.
Conditions for loannew text begin or grantnew text end approval; repayment.
The commissioner
shall approve loansnew text begin or grantsnew text end to municipalities on the following conditions:
(a) A municipality must demonstrate that the project is economically feasible, and
that it has made adequate provisions to assure proper and efficient operation of the facility
once the project is completed.
(b) A loan made pursuant to this section is repayable over a period of not more than
ten years from the date the loan is made. Interest shall accrue from the date the loan is
made, but the first payment of interest or principal shall not be due until one year after
the loan was made. The principal shall be amortized in equal periodic payments over the
remainder of the term of the loan. The accrued interest on the balance of the loan principal
shall be due with each payment. Interest attributable to the first year of deferred payment
shall be paid in the same manner as principal.
(c) Public schools shall receive funding priority whenever approvable loannew text begin or grantnew text end
applications exceed available funds.
Subd. 5.
Payment; obligation.
The commissioner shall not approve payment to a
municipality pursuant to an approved loan until the commissioner has determined that
financing of the project is assured by an irrevocable undertaking, by resolution of the
governing body of the municipality, to annually levy or otherwise collect an amount of
money sufficient to pay the principal and interest due on the loan as well as any of the
commissioner of finance's administrative expenses according to the terms of the loan.
Subd. 6.
Receipts; appropriation.
The commissioner of finance shall deposit in
the state treasury all principal and interest payments received in repayment of the loans
authorized by this section. These payments shall be credited to the bond proceeds fund
and are appropriated to the commissioner of finance for the purposes of that account.
new text begin Subd. 6a. new text end
new text begin Grants. new text end
new text begin
Grants may only be made with funds commonly referred to
as Exxon petroleum violation escrow funds and may be combined with loans. The
commissioner shall make grants of those funds until there are no funds remaining and
shall grant the funds as soon as practicable to qualified applicants. The commissioner shall
attempt to distribute grants evenly throughout the state and evenly between large and small
student population districts, to the extent grants are made to school districts.
new text end
Subd. 7.
Rules.
The commissioner shall adopt rules necessary to implement this
section. The rules shall contain as a minimum:
(1) procedures for application by municipalities;
(2) criteria for reviewing loannew text begin or grantnew text end applications; and
(3) procedures and guidelines for program monitoring, closeout, and evaluation.