SF 1121

as introduced - 88th Legislature (2013 - 2014) Posted on 05/20/2013 10:07am

A bill for an act
relating to energy; defining terms in the energy improvements program for local
governments; amending Minnesota Statutes 2012, sections 216C.435, subdivision
8, by adding a subdivision; 216C.436, subdivision 2; 429.101, subdivision 2.

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

Section 1.

Minnesota Statutes 2012, section 216C.435, is amended by adding a
subdivision to read:

Subd. 3a.

Cost-effective energy improvements.

"Cost-effective energy
improvements" mean energy improvements that have been identified in an energy audit
or renewable energy system feasibility study as repaying their purchase and installation
costs in 20 years or less, based on the amount of future energy saved and estimated future
energy prices.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2012, section 216C.435, subdivision 8, is amended to read:

Subd. 8.

Qualifying real property.

"Qualifying real property" means a
single-family or 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.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2012, section 216C.436, subdivision 2, is amended to read:

Subd. 2.

Program requirements.

A financing program 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;

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

(6) (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;

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

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

(9) (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;

(10) (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

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2012, section 429.101, subdivision 2, is amended to read:

Subd. 2.

Procedure for assessment.

Any special assessment levied under
subdivision 1 shall be payable in a single installment, or by up to ten equal annual
installments as the council may provide, except that a special assessment made under an
energy improvements financing program under subdivision 1, paragraph (c), may be
repayable in up to 20 equal installments. With this exception these exceptions, sections
429.061, 429.071, and 429.081 shall apply to assessments made under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.