SF 2786

as introduced - 86th Legislature (2009 - 2010) Posted on 02/19/2010 12:46pm

A bill for an act
relating to energy; modifying microenergy loan program; amending Minnesota
Statutes 2008, sections 216C.145, subdivisions 3, 5; 216C.146, subdivision 1.

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

Section 1.

Minnesota Statutes 2008, section 216C.145, subdivision 3, is amended to
read:

Subd. 3.

Loan purposes.

(a) The commissioner may issue low-interest, long-term
loans to units of local government to finance community-owned or publicly owned small
scale renewable energy systems new text begin and conservation measures new text end or to provide loans or other
aids to deleted text begin small businesses deleted text end new text begin property owners new text end to install small-scale renewable energy systems new text begin
and conservation measures in residential, commercial, industrial, or institutional property new text end .

new text begin (b) The commissioner may make loans for energy conservation and renewable
energy improvement projects that include, but are not limited to, campuses, neighborhoods,
industrial parks or subdivisions, or other building complexes. The utilities serving these
projects must be involved in the planning to ensure effective integrated use of the utilities'
energy conservation, demand response, smart-grid, and renewable energy programs and
grid safety and reliability.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end 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.

Sec. 2.

Minnesota Statutes 2008, section 216C.145, subdivision 5, is amended to read:

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 technology to be installed
under the proposal;

(2) the extent to which the proposal effectively integrates with the conservation and
energy efficiency programs 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 technology installed under the proposal;

new text begin (5) the diversity of renewable energy supply ownership models;
new text end

deleted text begin (5) deleted text end new text begin (6) new text end the geographic distribution of projects throughout the state new text begin and among
cooperative associations, municipal utilities, and investor-owned utilities new text end ;

deleted text begin (6) deleted text end new text begin (7) new text end the percentage of total project cost requested;

deleted text begin (7) deleted text end new text begin (8) new text end the proposed security for payback of the loan; and

deleted text begin (8) deleted text end new text begin (9) new text end other criteria the commissioner may determine to be necessary and
appropriate.

Sec. 3.

Minnesota Statutes 2008, 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 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 deleted text begin $20,000,000 deleted text end new text begin $100,000,000 new 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.