Bill Text: MN HF2603 | 2013-2014 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Community energy efficiency and renewable energy loan program modified, permissible administrative expenses modified for disbursement of supplemental low-income home energy assistance, and weatherization assistance program money appropriated.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-03 - Second reading [HF2603 Detail]
Download: Minnesota-2013-HF2603-Engrossed.html
Bill Title: Community energy efficiency and renewable energy loan program modified, permissible administrative expenses modified for disbursement of supplemental low-income home energy assistance, and weatherization assistance program money appropriated.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-03 - Second reading [HF2603 Detail]
Download: Minnesota-2013-HF2603-Engrossed.html
1.2relating to energy; modifying the community energy efficiency and renewable
1.3energy loan program; modifying permissible administrative expenses for
1.4disbursement of supplemental low-income home energy assistance; appropriating
1.5money for the weatherization assistance program;amending Minnesota Statutes
1.62012, sections 216C.145; 216C.146; Laws 2014, chapter 145, section 1.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 216C.145, is amended to read:
1.9216C.145MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
1.10RENEWABLE ENERGY LOAN PROGRAM.
1.11 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
1.12section.
1.13 (b) "Small-scale Community energy efficiency and renewable energy" projects
1.14include solar thermal water heating, solar electric or photovoltaic equipment, small
1.15wind energy conversion systems of less than 250 kW, anaerobic digester gas systems,
1.16microhydro systems up to 100 kW,and heating and cooling applications using geothermal
1.17energy solar thermal or ground source technology, and industrial, commercial, or public
1.18energy efficiency projects.
1.19 (c) "Unit of local government" means any home rule charter or statutory city, county,
1.20commission, district, authority, or other political subdivision or instrumentality of this
1.21state, including a sanitary district, park district, the Metropolitan Council, a port authority,
1.22an economic development authority, or a housing and redevelopment authority.
1.23 Subd. 2. Program established. The commissioner of commerce shall develop,
1.24implement, and administer amicroenergy community energy efficiency and renewable
1.25energy loan program under this section.
2.1 Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term
2.2loans to units of local government to:
2.3 (1) finance community-owned or publicly ownedsmall scale renewable energy
2.4systems orto cost-effective energy efficiency improvements to public buildings;
2.5 (2) provide loans or other aids to small businesses to installsmall-scale renewable
2.6energy systems; or
2.7 (3) provide loans or other aids to industrial or commercial businesses for
2.8cost-effective energy efficiency projects or to install renewable energy systems.
2.9 (b) The commissioner may participate in loans made by the Housing Finance
2.10Agency to residential property owners, private developers, nonprofit organizations,
2.11or units of local government under sections462A.05, subdivisions 14 and 18; and
2.12462A.33
for the construction, purchase, or rehabilitation of residential housing to facilitate
2.13the installation ofsmall-scale renewable energy systems in residential housing and
2.14cost-effective energy conservation improvements identified in an energy efficiency audit.
2.15The commissioner shall assist the Housing Finance Agency in assessing the technical
2.16qualifications of loan applicants.
2.17 Subd. 4. Technical standards. The commissioner shall determine technical
2.18standards forsmall-scale renewable energy systems community energy efficiency and
2.19renewable energy projects to qualify for loans under this section.
2.20 Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in
2.21the State Register a request for proposals from units of local government for a loan under
2.22this section. Within 45 days after the deadline for receipt of proposals, the commissioner
2.23shall select proposals based on the following criteria:
2.24 (1) the reliability and cost-effectiveness of the renewable or energy efficiency
2.25technology to be installed under the proposal;
2.26 (2) the extent to which the proposal effectively integrates with the conservation and
2.27energy efficiency programs or goals of the energy utilities serving the proposer;
2.28 (3) the total life cycle energy use and greenhouse gas emissions reductions per
2.29dollar of installed cost;
2.30 (4) the diversity of the renewable energy or energy efficiency technology installed
2.31under the proposal;
2.32 (5) the geographic distribution of projects throughout the state;
2.33 (6) the percentage of total project cost requested;
2.34 (7) the proposed security for payback of the loan; and
2.35 (8) other criteria the commissioner may determine to be necessary and appropriate.
3.1 Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest
3.2rate required to recover principal and interest plus the costs of issuing the loan, and must
3.3be for a minimum of 15 years, unless the commissioner determines that a shorter loan
3.4period of no less thanten five years is necessary and feasible.
3.5 Subd. 7. Account. Amicroenergy community energy efficiency renewable energy
3.6 loan account is established in the state treasury. Money in the account consists of the
3.7proceeds of revenue bonds issued under section216C.146 , interest and other earnings on
3.8money in the account, money received in repayment of loans from the account, legislative
3.9appropriations, and money from any other source credited to the account.
3.10 Subd. 8. Appropriation. Money in the account is appropriated to the commissioner
3.11of commerce to makemicroenergy community energy efficiency renewable energy loans
3.12under this section and to the commissioner of management and budget to pay debt service
3.13and other costs under section216C.146 . Payment of debt service costs and funding
3.14reserves take priority over use of money in the account for any other purpose.
3.15 Sec. 2. Minnesota Statutes 2012, section 216C.146, is amended to read:
3.16216C.146MICROENERGY COMMUNITY ENERGY EFFICIENCY AND
3.17RENEWABLE ENERGY LOAN REVENUE BONDS.
3.18 Subdivision 1. Bonding authority; definition. (a) The commissioner of
3.19management and budget, if requested by the commissioner of commerce, shall sell and
3.20issue state revenue bonds for the following purposes:
3.21 (1) to makemicroenergy community energy efficiency and renewable energy loans
3.22under section216C.145 ;
3.23 (2) to pay the costs of issuance, debt service, and bond insurance or other credit
3.24enhancements, and to fund reserves; and
3.25 (3) to refund bonds issued under this section.
3.26 (b) The aggregate principal amount of bonds for the purposes of paragraph (a),
3.27clause (1), that may be outstanding at any time may not exceed $100,000,000, of which
3.28up to $20,000,000 shall be reserved for business and public entity projects; the principal
3.29amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and
3.30(3), is not limited.
3.31 (c) For the purpose of this section, "commissioner" means the commissioner of
3.32management and budget.
3.33 Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms
3.34and conditions the commissioner determines to be in the best interests of the state. The
3.35bonds may be sold at public or private sale. The commissioner may enter into any
4.1agreements or pledges the commissioner determines necessary or useful to sell the bonds
4.2that are not inconsistent with section216C.145 . Sections
16A.672 to
16A.675 apply to
4.3the bonds. The proceeds of the bonds issued under this section must be credited to the
4.4microenergy community energy efficiency and renewable energy loan account created
4.5under section216C.145 .
4.6 Subd. 3. Revenue sources. The debt service on the bonds is payable only from the
4.7following sources:
4.8 (1) revenue credited to themicroenergy community energy efficiency and renewable
4.9energy loan account from the sources identified in section216C.145 or from any other
4.10source; and
4.11 (2) other revenues pledged to the payment of the bonds, including reserves
4.12established by a local government unit.
4.13 Subd. 4. Refunding bonds. The commissioner may issue bonds to refund
4.14outstanding bonds issued under subdivision 1, including the payment of any redemption
4.15premiums on the bonds and any interest accrued or to accrue to the first redemption date
4.16after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the
4.17discretion of the commissioner, be applied to the purchases or payment at maturity of the
4.18bonds to be refunded, or the redemption of the outstanding bonds on the first redemption
4.19date after delivery of the refunding bonds and may, until so used, be placed in escrow to
4.20be applied to the purchase, retirement, or redemption. Refunding bonds issued under this
4.21subdivision must be issued and secured in the manner provided by the commissioner.
4.22 Subd. 5. Not a general or moral obligation. Bonds issued under this section are
4.23not public debt, and the full faith, credit, and taxing powers of the state are not pledged
4.24for their payment. The bonds may not be paid, directly in whole or in part from a tax of
4.25statewide application on any class of property, income, transaction, or privilege. Payment
4.26of the bonds is limited to the revenues explicitly authorized to be pledged under this
4.27section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
4.28revenues and other legal security for them is insufficient.
4.29 Subd. 6. Trustee. The commissioner may contract with and appoint a trustee for
4.30bondholders. The trustee has the powers and authority vested in it by the commissioner
4.31under the bond and trust indentures.
4.32 Subd. 7. Pledges. A pledge made by the commissioner is valid and binding from
4.33the time the pledge is made. The money or property pledged and later received by the
4.34commissioner is immediately subject to the lien of the pledge without any physical
4.35delivery of the property or money or further act, and the lien of the pledge is valid and
4.36binding as against all parties having claims of any kind in tort, contract, or otherwise
5.1against the commissioner, whether or not those parties have notice of the lien or pledge.
5.2Neither the order nor any other instrument by which a pledge is created need be recorded.
5.3 Subd. 8. Bonds; purchase and cancellation. The commissioner, subject to
5.4agreements with bondholders that may then exist, may, out of any money available for the
5.5purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are
5.6then redeemable, the redemption price then applicable plus accrued interest to the next
5.7interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price
5.8applicable on the first date after the purchase upon which the bonds become subject to
5.9redemption plus accrued interest to that date.
5.10 Subd. 9. State pledge against impairment of contracts. The state pledges and
5.11agrees with the holders of any bonds that the state will not limit or alter the rights vested in
5.12the commissioner to fulfill the terms of any agreements made with the bondholders, or
5.13in any way impair the rights and remedies of the holders until the bonds, together with
5.14interest on them, with interest on any unpaid installments of interest, and all costs and
5.15expenses in connection with any action or proceeding by or on behalf of the bondholders,
5.16are fully met and discharged. The commissioner may include this pledge and agreement
5.17of the state in any agreement with the holders of bonds issued under this section.
5.18 Sec. 3. Laws 2014, chapter 145, section 1, is amended to read:
5.19 Section 1. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM;
5.20SUPPLEMENTAL APPROPRIATION.
5.21(a) $20,000,000 is appropriated in fiscal year 2014 from the general fund to the
5.22commissioner of commerce for the purpose of providing additional heating assistance
5.23through the low-income home energy assistance program under United States Code, title
5.2442, sections 8621 to 8630, and Minnesota Statutes, section216C.02, subdivision 1 . No
5.25more thanfive eight percent of this appropriation may be used for expenses to administer
5.26the program.Any unspent balance available on June 30, 2014, cancels to the general fund.
5.27(b) The funding provided in this section shall supplement, and not replace, any
5.28federal or other funding existing or otherwise available for heating assistance in Minnesota.
5.29(c) The commissioner shall disburse the funds provided in this section in a manner
5.30consistent with the requirements of the federal low-income home energy assistance
5.31program under United States Code, title 42, sections 8621 to 8630.
5.32EFFECTIVE DATE.This section is effective the day following final enactment.
5.33 Sec. 4. APPROPRIATION.
6.1Any unspent balance available on June 30, 2014, from the appropriation made to the
6.2commissioner of commerce in Laws 2014, chapter 145, section 1, may be used by the
6.3commissioner of commerce for the purposes of the weatherization assistance program.
6.4EFFECTIVE DATE.This section is effective the day following final enactment.
1.3energy loan program; modifying permissible administrative expenses for
1.4disbursement of supplemental low-income home energy assistance; appropriating
1.5money for the weatherization assistance program;amending Minnesota Statutes
1.62012, sections 216C.145; 216C.146; Laws 2014, chapter 145, section 1.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 216C.145, is amended to read:
1.9216C.145
1.10RENEWABLE ENERGY LOAN PROGRAM.
1.11 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
1.12section.
1.13 (b) "
1.14include solar thermal water heating, solar electric or photovoltaic equipment, small
1.15wind energy conversion systems of less than 250 kW, anaerobic digester gas systems,
1.16microhydro systems up to 100 kW,
1.17
1.18energy efficiency projects.
1.19 (c) "Unit of local government" means any home rule charter or statutory city, county,
1.20commission, district, authority, or other political subdivision or instrumentality of this
1.21state, including a sanitary district, park district, the Metropolitan Council, a port authority,
1.22an economic development authority, or a housing and redevelopment authority.
1.23 Subd. 2. Program established. The commissioner of commerce shall develop,
1.24implement, and administer a
1.25energy loan program under this section.
2.1 Subd. 3. Loan purposes. (a) The commissioner may issue low-interest, long-term
2.2loans to units of local government to:
2.3 (1) finance community-owned or publicly owned
2.4systems or
2.5 (2) provide loans or other aids to small businesses to install
2.6energy systems; or
2.7 (3) provide loans or other aids to industrial or commercial businesses for
2.8cost-effective energy efficiency projects or to install renewable energy systems.
2.9 (b) The commissioner may participate in loans made by the Housing Finance
2.10Agency to residential property owners, private developers, nonprofit organizations,
2.11or units of local government under sections
2.13the installation of
2.14cost-effective energy conservation improvements identified in an energy efficiency audit.
2.15The commissioner shall assist the Housing Finance Agency in assessing the technical
2.16qualifications of loan applicants.
2.17 Subd. 4. Technical standards. The commissioner shall determine technical
2.18standards for
2.19renewable energy projects to qualify for loans under this section.
2.20 Subd. 5. Loan proposals. (a) At least once a year, the commissioner shall publish in
2.21the State Register a request for proposals from units of local government for a loan under
2.22this section. Within 45 days after the deadline for receipt of proposals, the commissioner
2.23shall select proposals based on the following criteria:
2.24 (1) the reliability and cost-effectiveness of the renewable or energy efficiency
2.25technology to be installed under the proposal;
2.26 (2) the extent to which the proposal effectively integrates with the conservation and
2.27energy efficiency programs or goals of the energy utilities serving the proposer;
2.28 (3) the total life cycle energy use and greenhouse gas emissions reductions per
2.29dollar of installed cost;
2.30 (4) the diversity of the renewable energy or energy efficiency technology installed
2.31under the proposal;
2.32 (5) the geographic distribution of projects throughout the state;
2.33 (6) the percentage of total project cost requested;
2.34 (7) the proposed security for payback of the loan; and
2.35 (8) other criteria the commissioner may determine to be necessary and appropriate.
3.1 Subd. 6. Loan terms. A loan under this section must be issued at the lowest interest
3.2rate required to recover principal and interest plus the costs of issuing the loan, and must
3.3be for a minimum of 15 years, unless the commissioner determines that a shorter loan
3.4period of no less than
3.5 Subd. 7. Account. A
3.6 loan account is established in the state treasury. Money in the account consists of the
3.7proceeds of revenue bonds issued under section
3.8money in the account, money received in repayment of loans from the account, legislative
3.9appropriations, and money from any other source credited to the account.
3.10 Subd. 8. Appropriation. Money in the account is appropriated to the commissioner
3.11of commerce to make
3.12under this section and to the commissioner of management and budget to pay debt service
3.13and other costs under section
3.14reserves take priority over use of money in the account for any other purpose.
3.15 Sec. 2. Minnesota Statutes 2012, section 216C.146, is amended to read:
3.16216C.146
3.17RENEWABLE ENERGY LOAN REVENUE BONDS.
3.18 Subdivision 1. Bonding authority; definition. (a) The commissioner of
3.19management and budget, if requested by the commissioner of commerce, shall sell and
3.20issue state revenue bonds for the following purposes:
3.21 (1) to make
3.22under section
3.23 (2) to pay the costs of issuance, debt service, and bond insurance or other credit
3.24enhancements, and to fund reserves; and
3.25 (3) to refund bonds issued under this section.
3.26 (b) The aggregate principal amount of bonds for the purposes of paragraph (a),
3.27clause (1), that may be outstanding at any time may not exceed $100,000,000, of which
3.28up to $20,000,000 shall be reserved for business and public entity projects; the principal
3.29amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and
3.30(3), is not limited.
3.31 (c) For the purpose of this section, "commissioner" means the commissioner of
3.32management and budget.
3.33 Subd. 2. Procedure. The commissioner may sell and issue the bonds on the terms
3.34and conditions the commissioner determines to be in the best interests of the state. The
3.35bonds may be sold at public or private sale. The commissioner may enter into any
4.1agreements or pledges the commissioner determines necessary or useful to sell the bonds
4.2that are not inconsistent with section
4.3the bonds. The proceeds of the bonds issued under this section must be credited to the
4.4
4.5under section
4.6 Subd. 3. Revenue sources. The debt service on the bonds is payable only from the
4.7following sources:
4.8 (1) revenue credited to the
4.9energy loan account from the sources identified in section
4.10source; and
4.11 (2) other revenues pledged to the payment of the bonds, including reserves
4.12established by a local government unit.
4.13 Subd. 4. Refunding bonds. The commissioner may issue bonds to refund
4.14outstanding bonds issued under subdivision 1, including the payment of any redemption
4.15premiums on the bonds and any interest accrued or to accrue to the first redemption date
4.16after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the
4.17discretion of the commissioner, be applied to the purchases or payment at maturity of the
4.18bonds to be refunded, or the redemption of the outstanding bonds on the first redemption
4.19date after delivery of the refunding bonds and may, until so used, be placed in escrow to
4.20be applied to the purchase, retirement, or redemption. Refunding bonds issued under this
4.21subdivision must be issued and secured in the manner provided by the commissioner.
4.22 Subd. 5. Not a general or moral obligation. Bonds issued under this section are
4.23not public debt, and the full faith, credit, and taxing powers of the state are not pledged
4.24for their payment. The bonds may not be paid, directly in whole or in part from a tax of
4.25statewide application on any class of property, income, transaction, or privilege. Payment
4.26of the bonds is limited to the revenues explicitly authorized to be pledged under this
4.27section. The state neither makes nor has a moral obligation to pay the bonds if the pledged
4.28revenues and other legal security for them is insufficient.
4.29 Subd. 6. Trustee. The commissioner may contract with and appoint a trustee for
4.30bondholders. The trustee has the powers and authority vested in it by the commissioner
4.31under the bond and trust indentures.
4.32 Subd. 7. Pledges. A pledge made by the commissioner is valid and binding from
4.33the time the pledge is made. The money or property pledged and later received by the
4.34commissioner is immediately subject to the lien of the pledge without any physical
4.35delivery of the property or money or further act, and the lien of the pledge is valid and
4.36binding as against all parties having claims of any kind in tort, contract, or otherwise
5.1against the commissioner, whether or not those parties have notice of the lien or pledge.
5.2Neither the order nor any other instrument by which a pledge is created need be recorded.
5.3 Subd. 8. Bonds; purchase and cancellation. The commissioner, subject to
5.4agreements with bondholders that may then exist, may, out of any money available for the
5.5purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are
5.6then redeemable, the redemption price then applicable plus accrued interest to the next
5.7interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price
5.8applicable on the first date after the purchase upon which the bonds become subject to
5.9redemption plus accrued interest to that date.
5.10 Subd. 9. State pledge against impairment of contracts. The state pledges and
5.11agrees with the holders of any bonds that the state will not limit or alter the rights vested in
5.12the commissioner to fulfill the terms of any agreements made with the bondholders, or
5.13in any way impair the rights and remedies of the holders until the bonds, together with
5.14interest on them, with interest on any unpaid installments of interest, and all costs and
5.15expenses in connection with any action or proceeding by or on behalf of the bondholders,
5.16are fully met and discharged. The commissioner may include this pledge and agreement
5.17of the state in any agreement with the holders of bonds issued under this section.
5.18 Sec. 3. Laws 2014, chapter 145, section 1, is amended to read:
5.19 Section 1. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM;
5.20SUPPLEMENTAL APPROPRIATION.
5.21(a) $20,000,000 is appropriated in fiscal year 2014 from the general fund to the
5.22commissioner of commerce for the purpose of providing additional heating assistance
5.23through the low-income home energy assistance program under United States Code, title
5.2442, sections 8621 to 8630, and Minnesota Statutes, section
5.25more than
5.26the program.
5.27(b) The funding provided in this section shall supplement, and not replace, any
5.28federal or other funding existing or otherwise available for heating assistance in Minnesota.
5.29(c) The commissioner shall disburse the funds provided in this section in a manner
5.30consistent with the requirements of the federal low-income home energy assistance
5.31program under United States Code, title 42, sections 8621 to 8630.
5.32EFFECTIVE DATE.This section is effective the day following final enactment.
5.33 Sec. 4. APPROPRIATION.
6.1Any unspent balance available on June 30, 2014, from the appropriation made to the
6.2commissioner of commerce in Laws 2014, chapter 145, section 1, may be used by the
6.3commissioner of commerce for the purposes of the weatherization assistance program.
6.4EFFECTIVE DATE.This section is effective the day following final enactment.
