Bill Text: MN SF2793 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Microenergy loan program purpose and criteria expansion for community energy efficiency projects
Spectrum:
Status: (Introduced - Dead) 2014-03-31 - Joint rule 2.03, referred to Rules and Administration [SF2793 Detail]
Download: Minnesota-2013-SF2793-Introduced.html
1.2relating to energy; modifying an existing microenergy loan program to include
1.3certain community energy projects;amending Minnesota Statutes 2012, sections
1.4216C.145; 216C.146, subdivisions 1, 2, 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 216C.145, is amended to read:
1.7216C.145 MICROENERGY AND COMMUNITY ENERGY EFFICIENCY
1.8LOAN PROGRAM.
1.9 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
1.10section.
1.11 (b) "Small-scale Renewable energy and community energy efficiency" projects
1.12include solar thermal water heating, solar electric or photovoltaic equipment, small
1.13wind energy conversion systems of less than 250 kW, anaerobic digester gas systems,
1.14microhydro systems up to 100 kW,and heating and cooling applications using solar thermal
1.15or geothermal energy, and industrial, commercial, or public energy efficiency projects.
1.16 (c) "Unit of local government" means any home rule charter or statutory city, county,
1.17commission, district, authority, or other political subdivision or instrumentality of this
1.18state, including a sanitary district, park district, the Metropolitan Council, a port authority,
1.19an economic development authority, or a housing and redevelopment authority.
1.20 Subd. 2. Program established. The commissioner of commerce shall develop,
1.21implement, and administer a microenergy and community energy efficiency loan program
1.22under this section.
1.23 Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term
1.24loans to units of local government to (1) finance community-owned or publicly owned
2.1small scale small-scale renewable energy systems or to cost-effective energy efficiency
2.2improvements to public buildings, (2) provide loans or other aids to small businesses
2.3to install small-scale renewable energy systems, or (3) provide loans or other aids to
2.4industrial or commercial businesses for cost-effective energy efficiency projects or to
2.5install small-scale renewable energy systems.
2.6 (b) The commissioner may participate in loans made by the Housing Finance
2.7Agency to residential property owners, private developers, nonprofit organizations,
2.8or units of local government under sections462A.05, subdivisions 14 and 18; and
2.9462A.33
for the construction, purchase, or rehabilitation of residential housing to facilitate
2.10the installation of small-scale renewable energy systems in residential housing and
2.11cost-effective energy conservation improvements identified in an energy efficiency audit.
2.12The commissioner shall assist the Housing Finance Agency in assessing the technical
2.13qualifications of loan applicants.
2.14 Subd. 4. Technical standards. The commissioner shall determine technical
2.15standards for small-scale renewable energy systems and community energy efficiency
2.16projects to qualify for loans under this section.
2.17 Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in
2.18the State Register a request for proposals from units of local government for a loan under
2.19this section. Within 45 days after the deadline for receipt of proposals, the commissioner
2.20shall select proposals based on the following criteria:
2.21 (1) the reliability and cost-effectiveness of the renewable or energy efficiency
2.22technology to be installed under the proposal;
2.23 (2) the extent to which the proposal effectively integrates with the conservation and
2.24energy efficiency programs or goals of the energy utilities serving the proposer;
2.25 (3) the total life cycle energy use and greenhouse gas emissions reductions per
2.26dollar of installed cost;
2.27 (4) the diversity of the renewable energy or energy efficiency technology installed
2.28under the proposal;
2.29 (5) the geographic distribution of projects throughout the state;
2.30 (6) the percentage of total project cost requested;
2.31 (7) the proposed security for payback of the loan; and
2.32 (8) other criteria the commissioner may determine to be necessary and appropriate.
2.33 Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest
2.34rate required to recover principal and interest plus the costs of issuing the loan, and must
2.35be for a minimum of 15 years, unless the commissioner determines that a shorter loan
2.36period of no less thanten five years is necessary and feasible.
3.1 Subd. 7. Account. A microenergy and community energy efficiency loan account is
3.2established in the state treasury. Money in the account consists of the proceeds of revenue
3.3bonds issued under section216C.146 , interest and other earnings on money in the account,
3.4money received in repayment of loans from the account, legislative appropriations, and
3.5money from any other source credited to the account.
3.6 Subd. 8. Appropriation. Money in the account is appropriated to the commissioner
3.7of commerce to make microenergy and community energy efficiency loans under this
3.8section and to the commissioner of management and budget to pay debt service and other
3.9costs under section216C.146 . Payment of debt service costs and funding reserves take
3.10priority over use of money in the account for any other purpose.
3.11 Sec. 2. Minnesota Statutes 2012, section 216C.146, subdivision 1, is amended to read:
3.12 Subdivision 1. Bonding authority; definition. (a) The commissioner of
3.13management and budget, if requested by the commissioner of commerce, shall sell and
3.14issue state revenue bonds for the following purposes:
3.15 (1) to make microenergy and community energy efficiency loans under section
3.16216C.145
;
3.17 (2) to pay the costs of issuance, debt service, and bond insurance or other credit
3.18enhancements, and to fund reserves; and
3.19 (3) to refund bonds issued under this section.
3.20 (b) The aggregate principal amount of bonds for the purposes of paragraph (a),
3.21clause (1), that may be outstanding at any time may not exceed $100,000,000 of which up
3.22to $20,000,000 shall be reserved for microenergy projects; the principal amount of bonds
3.23that may be issued for the purposes of paragraph (a), clauses (2) and (3), is not limited.
3.24 (c) For the purpose of this section, "commissioner" means the commissioner of
3.25management and budget.
3.26 Sec. 3. Minnesota Statutes 2012, section 216C.146, subdivision 2, is amended to read:
3.27 Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms and
3.28conditions the commissioner determines to be in the best interests of the state. The bonds
3.29may be sold at public or private sale. The commissioner may enter into any agreements or
3.30pledges the commissioner determines necessary or useful to sell the bonds that are not
3.31inconsistent with section216C.145 . Sections
16A.672 to
16A.675 apply to the bonds. The
3.32proceeds of the bonds issued under this section must be credited to the microenergy and
3.33community energy efficiency loan account created under section216C.145 .
4.1 Sec. 4. Minnesota Statutes 2012, section 216C.146, subdivision 3, is amended to read:
4.2 Subd. 3. Revenue sources. The debt service on the bonds is payable only from the
4.3following sources:
4.4 (1) revenue credited to the microenergy and community energy efficiency loan
4.5account from the sources identified in section216C.145 or from any other source; and
4.6 (2) other revenues pledged to the payment of the bonds.
1.3certain community energy projects;amending Minnesota Statutes 2012, sections
1.4216C.145; 216C.146, subdivisions 1, 2, 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 216C.145, is amended to read:
1.7216C.145 MICROENERGY AND COMMUNITY ENERGY EFFICIENCY
1.8LOAN PROGRAM.
1.9 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
1.10section.
1.11 (b) "
1.12include solar thermal water heating, solar electric or photovoltaic equipment, small
1.13wind energy conversion systems of less than 250 kW, anaerobic digester gas systems,
1.14microhydro systems up to 100 kW,
1.15or geothermal energy, and industrial, commercial, or public energy efficiency projects.
1.16 (c) "Unit of local government" means any home rule charter or statutory city, county,
1.17commission, district, authority, or other political subdivision or instrumentality of this
1.18state, including a sanitary district, park district, the Metropolitan Council, a port authority,
1.19an economic development authority, or a housing and redevelopment authority.
1.20 Subd. 2. Program established. The commissioner of commerce shall develop,
1.21implement, and administer a microenergy and community energy efficiency loan program
1.22under this section.
1.23 Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term
1.24loans to units of local government to (1) finance community-owned or publicly owned
2.1
2.2improvements to public buildings, (2) provide loans or other aids to small businesses
2.3to install small-scale renewable energy systems, or (3) provide loans or other aids to
2.4industrial or commercial businesses for cost-effective energy efficiency projects or to
2.5install small-scale renewable energy systems.
2.6 (b) The commissioner may participate in loans made by the Housing Finance
2.7Agency to residential property owners, private developers, nonprofit organizations,
2.8or units of local government under sections
2.10the installation of small-scale renewable energy systems in residential housing and
2.11cost-effective energy conservation improvements identified in an energy efficiency audit.
2.12The commissioner shall assist the Housing Finance Agency in assessing the technical
2.13qualifications of loan applicants.
2.14 Subd. 4. Technical standards. The commissioner shall determine technical
2.15standards for small-scale renewable energy systems and community energy efficiency
2.16projects to qualify for loans under this section.
2.17 Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in
2.18the State Register a request for proposals from units of local government for a loan under
2.19this section. Within 45 days after the deadline for receipt of proposals, the commissioner
2.20shall select proposals based on the following criteria:
2.21 (1) the reliability and cost-effectiveness of the renewable or energy efficiency
2.22technology to be installed under the proposal;
2.23 (2) the extent to which the proposal effectively integrates with the conservation and
2.24energy efficiency programs or goals of the energy utilities serving the proposer;
2.25 (3) the total life cycle energy use and greenhouse gas emissions reductions per
2.26dollar of installed cost;
2.27 (4) the diversity of the renewable energy or energy efficiency technology installed
2.28under the proposal;
2.29 (5) the geographic distribution of projects throughout the state;
2.30 (6) the percentage of total project cost requested;
2.31 (7) the proposed security for payback of the loan; and
2.32 (8) other criteria the commissioner may determine to be necessary and appropriate.
2.33 Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest
2.34rate required to recover principal and interest plus the costs of issuing the loan, and must
2.35be for a minimum of 15 years, unless the commissioner determines that a shorter loan
2.36period of no less than
3.1 Subd. 7. Account. A microenergy and community energy efficiency loan account is
3.2established in the state treasury. Money in the account consists of the proceeds of revenue
3.3bonds issued under section
3.4money received in repayment of loans from the account, legislative appropriations, and
3.5money from any other source credited to the account.
3.6 Subd. 8. Appropriation. Money in the account is appropriated to the commissioner
3.7of commerce to make microenergy and community energy efficiency loans under this
3.8section and to the commissioner of management and budget to pay debt service and other
3.9costs under section
3.10priority over use of money in the account for any other purpose.
3.11 Sec. 2. Minnesota Statutes 2012, section 216C.146, subdivision 1, is amended to read:
3.12 Subdivision 1. Bonding authority; definition. (a) The commissioner of
3.13management and budget, if requested by the commissioner of commerce, shall sell and
3.14issue state revenue bonds for the following purposes:
3.15 (1) to make microenergy and community energy efficiency loans under section
3.17 (2) to pay the costs of issuance, debt service, and bond insurance or other credit
3.18enhancements, and to fund reserves; and
3.19 (3) to refund bonds issued under this section.
3.20 (b) The aggregate principal amount of bonds for the purposes of paragraph (a),
3.21clause (1), that may be outstanding at any time may not exceed $100,000,000 of which up
3.22to $20,000,000 shall be reserved for microenergy projects; the principal amount of bonds
3.23that may be issued for the purposes of paragraph (a), clauses (2) and (3), is not limited.
3.24 (c) For the purpose of this section, "commissioner" means the commissioner of
3.25management and budget.
3.26 Sec. 3. Minnesota Statutes 2012, section 216C.146, subdivision 2, is amended to read:
3.27 Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms and
3.28conditions the commissioner determines to be in the best interests of the state. The bonds
3.29may be sold at public or private sale. The commissioner may enter into any agreements or
3.30pledges the commissioner determines necessary or useful to sell the bonds that are not
3.31inconsistent with section
3.32proceeds of the bonds issued under this section must be credited to the microenergy and
3.33community energy efficiency loan account created under section
4.1 Sec. 4. Minnesota Statutes 2012, section 216C.146, subdivision 3, is amended to read:
4.2 Subd. 3. Revenue sources. The debt service on the bonds is payable only from the
4.3following sources:
4.4 (1) revenue credited to the microenergy and community energy efficiency loan
4.5account from the sources identified in section
4.6 (2) other revenues pledged to the payment of the bonds.
