SF 4149

as introduced - 91st Legislature (2019 - 2020) Posted on 05/18/2020 07:50am

A bill for an act
relating to energy; establishing a revolving loan fund for energy conservation in
schools; 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.372] SCHOOL ENERGY CONSERVATION REVOLVING LOAN
FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
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new text begin (b) "Energy conservation" means a net reduction in energy use.
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new text begin (c) "Energy conservation improvement" means a measure or program (1) that targets
consumer behavior, equipment, processes, or devices, and (2) whose implementation is
designed to result in a net reduction in energy use.
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new text begin (d) "Project" means the energy conservation improvements financed by a loan made
under this section.
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new text begin (e) "School district" means an independent or special school district.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A school energy conservation revolving loan fund is established
in the Department of Commerce to make loans to school districts to implement energy
conservation improvements in school district buildings. The fund must be credited with (1)
investment income, and (2) principal and interest repayments. Money in the fund is annually
appropriated to the commissioner and does not lapse.
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new text begin Subd. 3. new text end

new text begin Fund management. new text end

new text begin The commissioner must manage and administer the school
energy conservation revolving loan fund.
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new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin Applicants for loans must submit an application to the
commissioner on a form prescribed by the commissioner. An applicant must supply the
following information:
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new text begin (1) the total estimated project cost and the loan amount sought;
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new text begin (2) a description of existing equipment, structural elements, operating characteristics,
and other conditions affecting energy use that the energy conservation improvements financed
by the loan modify or replace;
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new text begin (3) a description of the proposed project;
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new text begin (4) a detailed project budget;
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new text begin (5) calculations sufficient to demonstrate the expected energy and monetary savings that
result from implementation of the project;
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new text begin (6) information demonstrating the school district's ability to repay the loan; and
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new text begin (7) any additional information requested by the commissioner.
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new text begin Subd. 5. new text end

new text begin Loan conditions. new text end

new text begin (a) Loans must be made at zero interest rates for terms not
to exceed 15 years.
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new text begin (b) Payments of loan principal must begin no later than one year after the project is
completed.
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new text begin Subd. 6. new text end

new text begin Exception. new text end

new text begin Section 126C.10, subdivision 14, clause (11), does not apply to
loans made under this section.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $20,500,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of commerce to establish a revolving loan fund to provide loans to school districts for energy
conservation projects under Minnesota Statutes, section 216C.372. This is a onetime
appropriation.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end