Bill Text: MN HF2375 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: On-bill loan repayment programs provided, and long-range emission reduction planning required.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2014-03-13 - Second reading [HF2375 Detail]
Download: Minnesota-2013-HF2375-Engrossed.html
1.2relating to energy; providing for on-bill loan repayment programs; requiring
1.3long-range emission reduction planning;amending Minnesota Statutes 2012,
1.4sections 216B.241, by adding a subdivision; 216B.2422, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 216B.241, is amended by adding a
1.7subdivision to read:
1.8 Subd. 5d. On-bill loan repayment programs. (a) For the purposes of this
1.9subdivision:
1.10(1) "utility" means a public utility, municipal utility, or cooperative electric
1.11association that provides electric or natural gas service to retail customers; and
1.12(2) "on-bill loan repayment program" means a program in which a utility collects
1.13on a customer's bill repayment of a loan to the customer by an eligible lender to finance
1.14the customer's investment in eligible energy conservation or renewable energy projects,
1.15and remits loan repayments to the lender.
1.16(b) A utility may include as part of its conservation improvement plan an on-bill
1.17loan repayment program to enable a customer to finance eligible projects with installment
1.18loans originated by an eligible lender. An eligible project is one that is either an energy
1.19conservation improvement, or a project that uses an eligible renewable energy source as
1.20that term is defined in section 216B.2411, subdivision 2, paragraph (b), but does not
1.21include mixed municipal solid waste or refuse-derived fuel from mixed municipal solid
1.22waste. An eligible renewable energy source also includes solar thermal technology that
1.23collects the sun's radiant energy and transfers it to a storage medium for distribution as
2.1energy to heat or cool air or water, and meets the requirements of section 216C.25. To be
2.2an eligible lender, a lender must:
2.3(1) have a federal or state charter and be eligible for federal deposit insurance; or
2.4(2) be a government entity, including an entity established under chapter 469, that
2.5has authority to provide financial assistance for energy efficiency and renewable energy
2.6projects.
2.7The commissioner must allow a utility broad discretion in designing and implementing an
2.8on-bill loan repayment program, provided that the program complies with this subdivision.
2.9(c) A utility may establish an on-bill loan repayment program for all customer
2.10classes or for a specific customer class.
2.11(d) A public utility that implements an on-bill repayment program under this
2.12subdivision must enter into a contract with one or more eligible lenders that complies
2.13with the requirements of this subdivision and contains provisions addressing capital
2.14commitments, loan origination, transfer of loans to the public utility for on-bill loan
2.15repayment, and acceptance of loans returned due to delinquency or default.
2.16(e) A public utility's contract with a lender must require the lender to comply with all
2.17applicable federal and state laws, rules, and regulations related to lending practices and
2.18consumer protection, and to conform to reasonable and prudent lending standards.
2.19(f) A public utility's contract with a lender may provide:
2.20(1) for the public utility to purchase loans from the lender with a condition that the
2.21lender must purchase back loans in delinquency or default; or
2.22(2) for the lender to retain ownership of loans with the public utility servicing the
2.23loans through on-bill repayment as long as payments are current.
2.24The risk of default must remain with the lender. The lender shall not have recourse against
2.25the public utility except in the event of negligence or breach of contract by the utility.
2.26(g) If a public utility customer makes a partial payment on a utility bill that includes
2.27a loan installment, the partial payment must be credited first to the amount owed for
2.28utility service, including taxes and fees. A public utility may not suspend or terminate
2.29a customer's utility service for delinquency or default on a loan that is being serviced
2.30through the public utility's on-bill loan repayment program.
2.31(h) An outstanding balance on a loan being repaid under this subdivision is a financial
2.32obligation only of the customer who is signatory to the loan, and not to any subsequent
2.33customer occupying the property associated with the loan. If the utility purchases loans
2.34from the lender as authorized under paragraph (f), clause (1), the utility must return to the
2.35lender a loan not repaid when a customer borrower no longer occupies the property.
3.1(i) Costs incurred by a public utility under this subdivision are recoverable as provided
3.2in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs
3.3for billing system modifications necessary to implement and operate an on-bill loan
3.4repayment program and for ongoing costs to operate the program. Approved costs may be
3.5counted toward a utility's conservation spending requirements under subdivisions 1a and
3.61b. Energy savings from energy conservation improvements resulting from this section
3.7may be counted toward satisfying a utility's energy-savings goals under subdivision 1c.
3.8(j) This subdivision does not require a utility to terminate or modify an existing
3.9financing program and does not prohibit a utility from establishing an on-bill financing
3.10program in which the utility provides the financing capital.
3.11(k) A municipal utility or cooperative electric association that implements an on-bill
3.12loan repayment program shall design the program to address the issues identified in
3.13paragraphs (d) to (h) as determined by the governing board of the utility or association.
3.14 Sec. 2. Minnesota Statutes 2012, section 216B.2422, is amended by adding a
3.15subdivision to read:
3.16 Subd. 2c. Long-range emission reduction planning. Each utility required to file
3.17a resource plan under this section shall include in the filing a narrative identifying and
3.18describing the costs, opportunities, and technical barriers to the utility continuing to make
3.19progress on its system toward achieving the state greenhouse gas emission reduction goals
3.20established in section 216H.02, subdivision 1, and the technologies, alternatives, and steps
3.21the utility is considering to address those opportunities and barriers.
1.3long-range emission reduction planning;amending Minnesota Statutes 2012,
1.4sections 216B.241, by adding a subdivision; 216B.2422, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 216B.241, is amended by adding a
1.7subdivision to read:
1.8 Subd. 5d. On-bill loan repayment programs. (a) For the purposes of this
1.9subdivision:
1.10(1) "utility" means a public utility, municipal utility, or cooperative electric
1.11association that provides electric or natural gas service to retail customers; and
1.12(2) "on-bill loan repayment program" means a program in which a utility collects
1.13on a customer's bill repayment of a loan to the customer by an eligible lender to finance
1.14the customer's investment in eligible energy conservation or renewable energy projects,
1.15and remits loan repayments to the lender.
1.16(b) A utility may include as part of its conservation improvement plan an on-bill
1.17loan repayment program to enable a customer to finance eligible projects with installment
1.18loans originated by an eligible lender. An eligible project is one that is either an energy
1.19conservation improvement, or a project that uses an eligible renewable energy source as
1.20that term is defined in section 216B.2411, subdivision 2, paragraph (b), but does not
1.21include mixed municipal solid waste or refuse-derived fuel from mixed municipal solid
1.22waste. An eligible renewable energy source also includes solar thermal technology that
1.23collects the sun's radiant energy and transfers it to a storage medium for distribution as
2.1energy to heat or cool air or water, and meets the requirements of section 216C.25. To be
2.2an eligible lender, a lender must:
2.3(1) have a federal or state charter and be eligible for federal deposit insurance; or
2.4(2) be a government entity, including an entity established under chapter 469, that
2.5has authority to provide financial assistance for energy efficiency and renewable energy
2.6projects.
2.7The commissioner must allow a utility broad discretion in designing and implementing an
2.8on-bill loan repayment program, provided that the program complies with this subdivision.
2.9(c) A utility may establish an on-bill loan repayment program for all customer
2.10classes or for a specific customer class.
2.11(d) A public utility that implements an on-bill repayment program under this
2.12subdivision must enter into a contract with one or more eligible lenders that complies
2.13with the requirements of this subdivision and contains provisions addressing capital
2.14commitments, loan origination, transfer of loans to the public utility for on-bill loan
2.15repayment, and acceptance of loans returned due to delinquency or default.
2.16(e) A public utility's contract with a lender must require the lender to comply with all
2.17applicable federal and state laws, rules, and regulations related to lending practices and
2.18consumer protection, and to conform to reasonable and prudent lending standards.
2.19(f) A public utility's contract with a lender may provide:
2.20(1) for the public utility to purchase loans from the lender with a condition that the
2.21lender must purchase back loans in delinquency or default; or
2.22(2) for the lender to retain ownership of loans with the public utility servicing the
2.23loans through on-bill repayment as long as payments are current.
2.24The risk of default must remain with the lender. The lender shall not have recourse against
2.25the public utility except in the event of negligence or breach of contract by the utility.
2.26(g) If a public utility customer makes a partial payment on a utility bill that includes
2.27a loan installment, the partial payment must be credited first to the amount owed for
2.28utility service, including taxes and fees. A public utility may not suspend or terminate
2.29a customer's utility service for delinquency or default on a loan that is being serviced
2.30through the public utility's on-bill loan repayment program.
2.31(h) An outstanding balance on a loan being repaid under this subdivision is a financial
2.32obligation only of the customer who is signatory to the loan, and not to any subsequent
2.33customer occupying the property associated with the loan. If the utility purchases loans
2.34from the lender as authorized under paragraph (f), clause (1), the utility must return to the
2.35lender a loan not repaid when a customer borrower no longer occupies the property.
3.1(i) Costs incurred by a public utility under this subdivision are recoverable as provided
3.2in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs
3.3for billing system modifications necessary to implement and operate an on-bill loan
3.4repayment program and for ongoing costs to operate the program. Approved costs may be
3.5counted toward a utility's conservation spending requirements under subdivisions 1a and
3.61b. Energy savings from energy conservation improvements resulting from this section
3.7may be counted toward satisfying a utility's energy-savings goals under subdivision 1c.
3.8(j) This subdivision does not require a utility to terminate or modify an existing
3.9financing program and does not prohibit a utility from establishing an on-bill financing
3.10program in which the utility provides the financing capital.
3.11(k) A municipal utility or cooperative electric association that implements an on-bill
3.12loan repayment program shall design the program to address the issues identified in
3.13paragraphs (d) to (h) as determined by the governing board of the utility or association.
3.14 Sec. 2. Minnesota Statutes 2012, section 216B.2422, is amended by adding a
3.15subdivision to read:
3.16 Subd. 2c. Long-range emission reduction planning. Each utility required to file
3.17a resource plan under this section shall include in the filing a narrative identifying and
3.18describing the costs, opportunities, and technical barriers to the utility continuing to make
3.19progress on its system toward achieving the state greenhouse gas emission reduction goals
3.20established in section 216H.02, subdivision 1, and the technologies, alternatives, and steps
3.21the utility is considering to address those opportunities and barriers.
