Bill Text: MN SF601 | 2013-2014 | 88th Legislature | Introduced
Bill Title: School energy conservation revolving loan program establishment, bond issue and appropriation
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2013-02-21 - Referred to Finance [SF601 Detail]
Download: Minnesota-2013-SF601-Introduced.html
1.2relating to capital investment; establishing the school energy conservation
1.3revolving loan program; permitting school districts to repay energy conservation
1.4loans from levies made without voter approval; authorizing the sale and issuance
1.5of state general obligation bonds; appropriating money;amending Minnesota
1.6Statutes 2012, section 126C.40, subdivision 5; proposing coding for new law
1.7in Minnesota Statutes, chapter 216C.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 126C.40, subdivision 5, is amended to read:
1.10 Subd. 5. Energy conservation. (a) For loans approved before March 1, 1998, the
1.11district may annually include as revenue under section123B.53 , without the approval of a
1.12majority of the voters in the district, an amount sufficient to repay the annual principal
1.13and interest of the loan made pursuant to sections216C.37 and
298.292 to
298.298 .
1.14For energy loans approved after March 1, 1998, school districts must annually transfer
1.15from the general fund to the debt redemption fund the amount sufficient to pay interest
1.16and principal on the loans.
1.17(b) A district may annually include as revenue under section 123B.53, without the
1.18approval of a majority of the voters in the district, an amount sufficient to repay the annual
1.19principal and interest of a loan made pursuant to sections 216C.37 and 216C.372.
1.20EFFECTIVE DATE.This section is effective the day following final enactment.
1.21 Sec. 2. [216C.371] DEFINITIONS.
1.22 Subdivision 1. Scope. For the purposes of this section and section 216C.372, the
1.23following terms have the meanings given them.
2.1 Subd. 2. Capital improvement. "Capital improvement" means the acquisition or
2.2betterment of public land, buildings, and other public improvements of a capital nature,
2.3as permitted by the Minnesota Constitution, article XI, section 5, clause (a). It does not
2.4include repair or maintenance.
2.5 Subd. 3. Energy audit. "Energy audit" has the meaning given in section 216C.435,
2.6subdivision 4.
2.7 Subd. 4. Energy improvement. "Energy improvement" means a renovation or
2.8retrofitting of a school building that is permanently affixed to the property and that results
2.9in a net reduction in energy consumption without altering the principal source of energy.
2.10 Subd. 5. School building. "School building" means a permanent structure owned
2.11by and used for school district purposes that has a permanently installed heating or
2.12cooling system.
2.13 Subd. 6. School district. "School district" means a public independent, common,
2.14special, or intermediate school district or a charter school.
2.15 Subd. 7. Statewide greenhouse gas emissions. "Statewide greenhouse gas
2.16emissions" has the meaning given in section 216H.01, subdivision 2.
2.17EFFECTIVE DATE.This section is effective the day following final enactment.
2.18 Sec. 3. [216C.372] SCHOOL ENERGY CONSERVATION REVOLVING LOAN
2.19PROGRAM.
2.20 Subdivision 1. Loan program established. A school energy conservation
2.21revolving loan program account is established in the state bond proceeds fund to
2.22receive appropriations of state bond proceeds. Money in the account is appropriated
2.23to the commissioner of commerce to make loans to school districts for eligible capital
2.24improvement projects as provided in this section and to pay reasonable and actual costs
2.25of administering the loan program, not to exceed interest earned on fund assets. The
2.26commissioner of management and budget must credit to the account all investment income
2.27on money in the account, and all repayments of principal and interest. Section 16A.642
2.28does not apply to money in the account or the program. The commissioner of commerce
2.29shall manage and administer the revolving loan program and individual accounts in the
2.30revolving loan account.
2.31 Subd. 2. Purpose. The school energy conservation revolving loan program is
2.32created to provide financial assistance to school districts to make energy improvements in
2.33school buildings that reduce statewide greenhouse gas emissions and improve indoor air
2.34quality in schools.
3.1 Subd. 3. Limitations. The commissioner of commerce shall make loans on a first
3.2come, first-served basis. A school district may not be awarded more than an aggregate
3.3total of $......., whether for one or more projects or one or more loans under this section.
3.4 Subd. 4. Applications. A school district applying for a loan must submit an
3.5application to the commissioner of commerce in the manner and on forms prescribed by
3.6the commissioner. An applicant must provide the following information:
3.7(1) the name and contact information of the school district and the persons
3.8responsible for loan administration and project implementation matters;
3.9(2) the estimated total cost of the capital improvement project and the amount of
3.10the loan sought;
3.11(3) a description of the energy improvements to be made to school buildings as part
3.12of the project, and new equipment and materials to be installed;
3.13(4) the proposed methods and sources of funds to be used to repay a loan made
3.14under this section;
3.15(5) the proposed source of matching funds to be used in conjunction with a loan
3.16made under this section, as required under subdivision 5;
3.17(6) the results of an energy audit conducted by an independent contractor estimating
3.18the energy savings that will be realized as a result of the project;
3.19(7) a description of the projected improvements in indoor air quality achieved as
3.20a result of the project, if applicable; and
3.21(8) any additional information requested by the commissioner of commerce.
3.22 Subd. 5. Loan conditions. (a) A loan made under this section must:
3.23(1) represent no more than one-half of the total cost of the project;
3.24(2) have a repayment term no longer than 20 years; and
3.25(3) bear interest at or below the market rate.
3.26(b) A school district loan recipient may apply towards the school district's share of
3.27the total project costs the amount that the school district spent on the energy audit, and any
3.28amounts it spends to implement energy audit recommendations that are part of the overall
3.29project but that are not eligible for financing with the loan money.
3.30 Subd. 6. Biennial report. The commissioner of commerce shall report by February
3.311 of each even-numbered year to the chairs and ranking minority members of the
3.32committees of the house of representatives and senate with jurisdiction over energy policy,
3.33education finance, and capital investment. The report must identify the school districts and
3.34school buildings in which projects have been financed through the program, the amount of
3.35the loans, the total project costs, the estimated and, if possible, measured energy savings
3.36and greenhouse gas emissions reductions, the demand for loans and the availability of
4.1loan money, and any other information the commissioner determines would be useful to
4.2the legislature. The commissioner shall also submit the report as required in section 3.195.
4.3EFFECTIVE DATE.This section is effective the day following final enactment.
4.4 Sec. 4. PUBLIC SCHOOL ENERGY CONSERVATION REVOLVING LOAN
4.5PROGRAM.
4.6 Subdivision 1. Appropriation. $....... is appropriated from the bond proceeds fund
4.7to the commissioner of commerce for the school energy conservation revolving loan
4.8program under Minnesota Statutes, sections 216C.371 and 216C.372.
4.9 Subd. 2. Bond sale. To provide the money appropriated in this section from the
4.10bond proceeds fund, the commissioner of management and budget shall sell and issue
4.11bonds of the state in an amount up to $....... in the manner, upon the terms, and with
4.12the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
4.13Minnesota Constitution, article XI, sections 4 to 7.
4.14EFFECTIVE DATE.This section is effective the day following final enactment.
1.3revolving loan program; permitting school districts to repay energy conservation
1.4loans from levies made without voter approval; authorizing the sale and issuance
1.5of state general obligation bonds; appropriating money;amending Minnesota
1.6Statutes 2012, section 126C.40, subdivision 5; proposing coding for new law
1.7in Minnesota Statutes, chapter 216C.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 126C.40, subdivision 5, is amended to read:
1.10 Subd. 5. Energy conservation. (a) For loans approved before March 1, 1998, the
1.11district may annually include as revenue under section
1.12majority of the voters in the district, an amount sufficient to repay the annual principal
1.13and interest of the loan made pursuant to sections
1.14
1.15
1.16
1.17(b) A district may annually include as revenue under section 123B.53, without the
1.18approval of a majority of the voters in the district, an amount sufficient to repay the annual
1.19principal and interest of a loan made pursuant to sections 216C.37 and 216C.372.
1.20EFFECTIVE DATE.This section is effective the day following final enactment.
1.21 Sec. 2. [216C.371] DEFINITIONS.
1.22 Subdivision 1. Scope. For the purposes of this section and section 216C.372, the
1.23following terms have the meanings given them.
2.1 Subd. 2. Capital improvement. "Capital improvement" means the acquisition or
2.2betterment of public land, buildings, and other public improvements of a capital nature,
2.3as permitted by the Minnesota Constitution, article XI, section 5, clause (a). It does not
2.4include repair or maintenance.
2.5 Subd. 3. Energy audit. "Energy audit" has the meaning given in section 216C.435,
2.6subdivision 4.
2.7 Subd. 4. Energy improvement. "Energy improvement" means a renovation or
2.8retrofitting of a school building that is permanently affixed to the property and that results
2.9in a net reduction in energy consumption without altering the principal source of energy.
2.10 Subd. 5. School building. "School building" means a permanent structure owned
2.11by and used for school district purposes that has a permanently installed heating or
2.12cooling system.
2.13 Subd. 6. School district. "School district" means a public independent, common,
2.14special, or intermediate school district or a charter school.
2.15 Subd. 7. Statewide greenhouse gas emissions. "Statewide greenhouse gas
2.16emissions" has the meaning given in section 216H.01, subdivision 2.
2.17EFFECTIVE DATE.This section is effective the day following final enactment.
2.18 Sec. 3. [216C.372] SCHOOL ENERGY CONSERVATION REVOLVING LOAN
2.19PROGRAM.
2.20 Subdivision 1. Loan program established. A school energy conservation
2.21revolving loan program account is established in the state bond proceeds fund to
2.22receive appropriations of state bond proceeds. Money in the account is appropriated
2.23to the commissioner of commerce to make loans to school districts for eligible capital
2.24improvement projects as provided in this section and to pay reasonable and actual costs
2.25of administering the loan program, not to exceed interest earned on fund assets. The
2.26commissioner of management and budget must credit to the account all investment income
2.27on money in the account, and all repayments of principal and interest. Section 16A.642
2.28does not apply to money in the account or the program. The commissioner of commerce
2.29shall manage and administer the revolving loan program and individual accounts in the
2.30revolving loan account.
2.31 Subd. 2. Purpose. The school energy conservation revolving loan program is
2.32created to provide financial assistance to school districts to make energy improvements in
2.33school buildings that reduce statewide greenhouse gas emissions and improve indoor air
2.34quality in schools.
3.1 Subd. 3. Limitations. The commissioner of commerce shall make loans on a first
3.2come, first-served basis. A school district may not be awarded more than an aggregate
3.3total of $......., whether for one or more projects or one or more loans under this section.
3.4 Subd. 4. Applications. A school district applying for a loan must submit an
3.5application to the commissioner of commerce in the manner and on forms prescribed by
3.6the commissioner. An applicant must provide the following information:
3.7(1) the name and contact information of the school district and the persons
3.8responsible for loan administration and project implementation matters;
3.9(2) the estimated total cost of the capital improvement project and the amount of
3.10the loan sought;
3.11(3) a description of the energy improvements to be made to school buildings as part
3.12of the project, and new equipment and materials to be installed;
3.13(4) the proposed methods and sources of funds to be used to repay a loan made
3.14under this section;
3.15(5) the proposed source of matching funds to be used in conjunction with a loan
3.16made under this section, as required under subdivision 5;
3.17(6) the results of an energy audit conducted by an independent contractor estimating
3.18the energy savings that will be realized as a result of the project;
3.19(7) a description of the projected improvements in indoor air quality achieved as
3.20a result of the project, if applicable; and
3.21(8) any additional information requested by the commissioner of commerce.
3.22 Subd. 5. Loan conditions. (a) A loan made under this section must:
3.23(1) represent no more than one-half of the total cost of the project;
3.24(2) have a repayment term no longer than 20 years; and
3.25(3) bear interest at or below the market rate.
3.26(b) A school district loan recipient may apply towards the school district's share of
3.27the total project costs the amount that the school district spent on the energy audit, and any
3.28amounts it spends to implement energy audit recommendations that are part of the overall
3.29project but that are not eligible for financing with the loan money.
3.30 Subd. 6. Biennial report. The commissioner of commerce shall report by February
3.311 of each even-numbered year to the chairs and ranking minority members of the
3.32committees of the house of representatives and senate with jurisdiction over energy policy,
3.33education finance, and capital investment. The report must identify the school districts and
3.34school buildings in which projects have been financed through the program, the amount of
3.35the loans, the total project costs, the estimated and, if possible, measured energy savings
3.36and greenhouse gas emissions reductions, the demand for loans and the availability of
4.1loan money, and any other information the commissioner determines would be useful to
4.2the legislature. The commissioner shall also submit the report as required in section 3.195.
4.3EFFECTIVE DATE.This section is effective the day following final enactment.
4.4 Sec. 4. PUBLIC SCHOOL ENERGY CONSERVATION REVOLVING LOAN
4.5PROGRAM.
4.6 Subdivision 1. Appropriation. $....... is appropriated from the bond proceeds fund
4.7to the commissioner of commerce for the school energy conservation revolving loan
4.8program under Minnesota Statutes, sections 216C.371 and 216C.372.
4.9 Subd. 2. Bond sale. To provide the money appropriated in this section from the
4.10bond proceeds fund, the commissioner of management and budget shall sell and issue
4.11bonds of the state in an amount up to $....... in the manner, upon the terms, and with
4.12the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
4.13Minnesota Constitution, article XI, sections 4 to 7.
4.14EFFECTIVE DATE.This section is effective the day following final enactment.
