216C.37 ENERGY CONSERVATION INVESTMENT LOAN.
Subdivision 1. Definitions.
In this section:
(a) "Commissioner" means the commissioner of commerce.
(b) "Energy conservation investments" means all capital expenditures that are associated
with conservation measures identified in an energy project study, and that have a ten-year or
less payback period.
(c) "Municipality" means any county, statutory or home rule charter city, town, school
district, or any combination of those units operating under an agreement to jointly undertake
projects authorized in this section.
(d) "Energy project study" means a study of one or more energy-related capital improvement
projects analyzed in sufficient detail to support a financing application. At a minimum, it must
include one year of energy consumption and cost data, a description of existing conditions,
a description of proposed conditions, a detailed description of the costs of the project, and
calculations sufficient to document the proposed energy savings.
Subd. 2. Eligibility.
The commissioner shall approve loans to municipalities for energy
conservation investments. A loan may be made to a municipality that has demonstrated that it has
complied with all the appropriate provisions of this section and has made adequate provisions
to assure proper and efficient operation of the municipal facilities after improvements and
modifications are completed.
Subd. 3. Application.
Application for a loan to be made pursuant to this section shall be
made by a municipality to the commissioner on a form the commissioner prescribes by rule. The
commissioner shall review each application to determine:
(1) whether or not the municipality's proposal is complete;
(2) whether the calculations and estimates contained in the energy project study are
appropriate, accurate, and reasonable;
(3) whether the project is eligible for a loan;
(4) the amount of the loan for which the project is eligible; and
(5) the means by which the municipality proposes to finance the project including:
(i) a loan authorized by this section;
(ii) a grant of money appropriated by state law;
(iii) a grant to the municipality by an agency of the federal government within the amount of
money then appropriated to that agency; or
(iv) the appropriation of other money of the municipality to an account for the construction
of the project.
Subd. 3a. Additional information.
During application review, the commissioner may
request additional information about a proposed energy conservation investment, including
information on project cost. Failure to provide information requested disqualifies a loan applicant.
Subd. 3b. Public accessibility of loan application data.
Data contained in an application
submitted to the commissioner for a loan to be made pursuant to this section, including supporting
technical documentation, is classified as "public data not on individuals" under section
Subd. 4. Conditions for loan approval; repayment.
The commissioner shall approve loans
to municipalities on the following conditions:
(a) A municipality must demonstrate that the project is economically feasible, and that it
has made adequate provisions to assure proper and efficient operation of the facility once the
project is completed.
(b) A loan made pursuant to this section is repayable over a period of not more than ten years
from the date the loan is made. Interest shall accrue from the date the loan is made, but the first
payment of interest or principal shall not be due until one year after the loan was made. The
principal shall be amortized in equal periodic payments over the remainder of the term of the loan.
The accrued interest on the balance of the loan principal shall be due with each payment. Interest
attributable to the first year of deferred payment shall be paid in the same manner as principal.
(c) Public schools shall receive funding priority whenever approvable loan applications
exceed available funds.
Subd. 5. Payment; obligation.
The commissioner shall not approve payment to a
municipality pursuant to an approved loan until the commissioner has determined that financing
of the project is assured by an irrevocable undertaking, by resolution of the governing body
of the municipality, to annually levy or otherwise collect an amount of money sufficient to
pay the principal and interest due on the loan as well as any of the commissioner of finance's
administrative expenses according to the terms of the loan.
Subd. 6. Receipts; appropriation.
The commissioner of finance shall deposit in the state
treasury all principal and interest payments received in repayment of the loans authorized by this
section. These payments shall be credited to the bond proceeds fund and are appropriated to the
commissioner of finance for the purposes of that account.
Subd. 7. Rules.
The commissioner shall adopt rules necessary to implement this section. The
rules shall contain as a minimum:
(1) procedures for application by municipalities;
(2) criteria for reviewing loan applications; and
(3) procedures and guidelines for program monitoring, closeout, and evaluation.
Subd. 8.[Repealed, 1994 c 616 s 12
History: 1983 c 289 s 115 subd 1; 1983 c 323 s 1; 1984 c 640 s 32; 1Sp1985 c 12 art 7 s 1;
1986 c 444; 1987 c 186 s 15; 1987 c 289 s 1; 1987 c 312 art 1 s 10 subd 1; 1987 c 386 art 3 s
16,17; 1989 c 271 s 31; 1993 c 163 art 1 s 28; 1993 c 327 s 15; 1994 c 616 s 2-5; 1996 c 305
art 2 s 42; 1Sp2001 c 4 art 6 s 51