HF 320

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2013 05:52pm

A bill for an act
relating to capital investment; establishing the school energy conservation
revolving loan program; permitting school districts to repay energy conservation
loans from levies made without voter approval; authorizing the sale and issuance
of state general obligation bonds; appropriating money; amending Minnesota
Statutes 2012, section 126C.40, subdivision 5; proposing coding for new law
in Minnesota Statutes, chapter 216C.

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

Section 1.

Minnesota Statutes 2012, section 126C.40, subdivision 5, is amended to read:

Subd. 5.

Energy conservation.

new text begin (a) new text end For loans approved before March 1, 1998, the
district may annually include as revenue under section 123B.53, without the approval of a
majority of the voters in the district, an amount sufficient to repay the annual principal
and interest of the loan made pursuant to sections deleted text begin 216C.37 and deleted text end 298.292 to 298.298.
deleted text begin For energy loans approved after March 1, 1998, school districts must annually transfer
from the general fund to the debt redemption fund the amount sufficient to pay interest
and principal on the loans.
deleted text end

new text begin (b) A district may annually include as revenue under section 123B.53, without the
approval of a majority of the voters in the district, an amount sufficient to repay the annual
principal and interest of a loan made pursuant to sections 216C.37 and 216C.372.
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.

new text begin [216C.371] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this section and section 216C.372, the
following terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Capital improvement. new text end

new text begin "Capital improvement" means the acquisition or
betterment of public land, buildings, and other public improvements of a capital nature,
as permitted by the Minnesota Constitution, article XI, section 5, clause (a). It does not
include repair or maintenance.
new text end

new text begin Subd. 3. new text end

new text begin Energy audit. new text end

new text begin "Energy audit" has the meaning given in section 216C.435,
subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Energy improvement. new text end

new text begin "Energy improvement" means a renovation or
retrofitting of a school building that is permanently affixed to the property and that results
in a net reduction in energy consumption without altering the principal source of energy.
new text end

new text begin Subd. 5. new text end

new text begin School building. new text end

new text begin "School building" means a permanent structure owned
by and used for school district purposes that has a permanently installed heating or
cooling system.
new text end

new text begin Subd. 6. new text end

new text begin School district. new text end

new text begin "School district" means a public independent, common,
special, or intermediate school district or a charter school.
new text end

new text begin Subd. 7. new text end

new text begin Statewide greenhouse gas emissions. new text end

new text begin "Statewide greenhouse gas
emissions" has the meaning given in section 216H.01, subdivision 2.
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. 3.

new text begin [216C.372] SCHOOL ENERGY CONSERVATION REVOLVING LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Loan program established. new text end

new text begin A school energy conservation
revolving loan program account is established in the state bond proceeds fund to
receive appropriations of state bond proceeds. Money in the account is appropriated
to the commissioner of commerce to make loans to school districts for eligible capital
improvement projects as provided in this section and to pay reasonable and actual costs
of administering the loan program, not to exceed interest earned on fund assets. The
commissioner of management and budget must credit to the account all investment income
on money in the account, and all repayments of principal and interest. Section 16A.642
does not apply to money in the account or the program. The commissioner of commerce
shall manage and administer the revolving loan program and individual accounts in the
revolving loan account.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The school energy conservation revolving loan program is
created to provide financial assistance to school districts to make energy improvements in
school buildings that reduce statewide greenhouse gas emissions and improve indoor air
quality in schools.
new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin The commissioner of commerce shall make loans on a first
come, first-served basis. A school district may not be awarded more than an aggregate
total of $......., whether for one or more projects or one or more loans under this section.
new text end

new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin A school district applying for a loan must submit an
application to the commissioner of commerce in the manner and on forms prescribed by
the commissioner. An applicant must provide the following information:
new text end

new text begin (1) the name and contact information of the school district and the persons
responsible for loan administration and project implementation matters;
new text end

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

new text begin (3) a description of the energy improvements to be made to school buildings as part
of the project, and new equipment and materials to be installed;
new text end

new text begin (4) the proposed methods and sources of funds to be used to repay a loan made
under this section;
new text end

new text begin (5) the proposed source of matching funds to be used in conjunction with a loan
made under this section, as required under subdivision 5;
new text end

new text begin (6) the results of an energy audit conducted by an independent contractor estimating
the energy savings that will be realized as a result of the project;
new text end

new text begin (7) a description of the projected improvements in indoor air quality achieved as
a result of the project, if applicable; and
new text end

new text begin (8) any additional information requested by the commissioner of commerce.
new text end

new text begin Subd. 5. new text end

new text begin Loan conditions. new text end

new text begin (a) A loan made under this section must:
new text end

new text begin (1) represent no more than one-half of the total cost of the project;
new text end

new text begin (2) have a repayment term no longer than 20 years; and
new text end

new text begin (3) bear interest at or below the market rate.
new text end

new text begin (b) A school district loan recipient may apply towards the school district's share of
the total project costs the amount that the school district spent on the energy audit, and any
amounts it spends to implement energy audit recommendations that are part of the overall
project but that are not eligible for financing with the loan money.
new text end

new text begin Subd. 6. new text end

new text begin Biennial report. new text end

new text begin The commissioner of commerce shall report by February
1 of each even-numbered year to the chairs and ranking minority members of the
committees of the house of representatives and senate with jurisdiction over energy policy,
education finance, and capital investment. The report must identify the school districts and
school buildings in which projects have been financed through the program, the amount of
the loans, the total project costs, the estimated and, if possible, measured energy savings
and greenhouse gas emissions reductions, the demand for loans and the availability of
loan money, and any other information the commissioner determines would be useful to
the legislature. The commissioner shall also submit the report as required in section 3.195.
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. 4. new text begin PUBLIC SCHOOL ENERGY CONSERVATION REVOLVING LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $....... is appropriated from the bond proceeds fund
to the commissioner of commerce for the school energy conservation revolving loan
program under Minnesota Statutes, sections 216C.371 and 216C.372.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $....... in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
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