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HF 70

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/04/2021 05:08pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/11/2021
1st Engrossment Posted on 02/08/2021
2nd Engrossment Posted on 03/04/2021

Current Version - 2nd Engrossment

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A bill for an act
relating to energy; establishing a revolving loan account for energy conservation
in state buildings; appropriating money; amending Minnesota Statutes 2020,
sections 16B.86; 16B.87.

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

Section 1.

Minnesota Statutes 2020, section 16B.86, is amended to read:


16B.86 deleted text beginPRODUCTIVITYdeleted text endnew text begin STATE BUILDING ENERGY CONSERVATION
IMPROVEMENT REVOLVING
new text end LOAN ACCOUNT.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 16B.87, the
following terms have the meanings given them.
new text end

new text begin (b) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (d).
new text end

new text begin (c) "Energy conservation improvement" has the meaning given in section 216B.241,
subdivision 1, paragraph (e).
new text end

new text begin (d) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
new text end

new text begin (e) "Project" means the energy conservation improvements financed by a loan made
under this section.
new text end

new text begin (f) "State building" means an existing building owned by the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Account established. new text end

The deleted text beginproductivitydeleted text endnew text begin state building energy conservation
improvement revolving
new text end loan account is new text beginestablished as new text enda deleted text beginspecialdeleted text endnew text begin separatenew text end account in the state
treasury. new text beginThe commissioner shall manage the account and shall credit to the account
investment income, repayments of principal and interest, and any other earnings arising
from assets of the account.
new text endMoney in the account is appropriated to the commissioner of
administration to make loans to deleted text beginfinance agency projects that will result in either reduced
operating costs or increased revenues, or both, for a state agency
deleted text endnew text begin state agencies to implement
energy conservation and energy efficiency improvements in state buildings under section
16B.87
new text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 16B.87, is amended to read:


16B.87 AWARD AND REPAYMENT OF deleted text beginPRODUCTIVITYdeleted text endnew text begin STATE BUILDING
ENERGY IMPROVEMENT CONSERVATION
new text end LOANS.

Subdivision 1.

Committee.

The deleted text beginProductivitydeleted text endnew text begin State Building Energy Conservation
Improvement
new text end Loan Committee consists of the commissioners of administration, management
and budget, and deleted text beginrevenuedeleted text endnew text begin commercenew text end. The commissioner of administration serves as chair of
the committee. The members serve without compensation or reimbursement for expenses.

Subd. 2.

Award and terms of loans.

new text begin(a) new text endAn agency shall apply for a loan on a form
deleted text begin provideddeleted text endnew text begin developednew text end by the commissioner of administrationdeleted text begin.deleted text endnew text begin that requires an applicant to
submit the following information:
new text end

new text begin (1) a description of the proposed project, including existing equipment, structural
elements, operating characteristics, and other conditions affecting energy use that the energy
conservation improvements financed by the loan modify or replace;
new text end

new text begin (2) the total estimated project cost and the loan amount sought;
new text end

new text begin (3) a detailed project budget;
new text end

new text begin (4) projections of the proposed project's expected energy and monetary savings;
new text end

new text begin (5) information demonstrating the agency's ability to repay the loan;
new text end

new text begin (6) a description of the energy conservation programs offered by the utility providing
service to the state building from which the applicant will seek additional funding for the
project; and
new text end

new text begin (7) any additional information requested by the commissioner.
new text end

new text begin (b)new text end The committee shall review applications for loans and shall award a loan based upon
criteria adopted by the committee. deleted text beginThe committee shall determine the amount, interest, and
other terms of the loan. The time for repayment of a loan may not exceed five years.
deleted text end new text beginA loan
made under this section must:
new text end

new text begin (1) be at or below the market rate of interest, including a zero interest loan; and
new text end

new text begin (2) have a term no longer than seven years.
new text end

new text begin (c) In making awards, the committee shall give preference to:
new text end

new text begin (1) applicants that have sought funding for the project through energy conservation
programs offered by the utility serving the state building that is the subject of the application;
and
new text end

new text begin (2) to the extent feasible, applications for state buildings located within the electric retail
service area of the utility that is subject to section 116C.779.
new text end

Subd. 3.

Repayment.

An agency receiving a loan under this section shall repay the loan
according to the terms of the loan agreement. The principal and interest must be paid to the
commissioner of administrationnew text begin,new text end who shall deposit it in the deleted text beginproductivitydeleted text endnew text begin state building energy
conservation improvement revolving
new text end loan deleted text beginfunddeleted text endnew text begin account. Payments of loan principal and
interest must begin no later than one year after the project is completed
new text end.

Sec. 3. new text beginTRANSFER.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$15,000,000 in fiscal year 2022 is transferred from the renewable development account
established under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner
of administration for deposit in the state building energy conservation improvement account
established in Minnesota Statutes, section 16B.86, for the purpose of providing loans to
state agencies for energy conservation projects under Minnesota Statutes, section 16B.87.
new text end

new text begin EFFECTIVE DATE. new text end

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