<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to local government; authorizing local governments to finance energy <br />
         		<a id="pl.1.3"></a><var>1.3</var>improvements for property owners to install energy efficient or renewable energy <br />
         		<a id="pl.1.4"></a><var>1.4</var>improvements; providing for repayment as a special assessment; authorizing <br />
         		<a id="pl.1.5"></a><var>1.5</var>issuance of revenue bonds;amending Minnesota Statutes 2008, section 429.101, <br />
         		<a id="pl.1.6"></a><var>1.6</var>subdivision 1; proposing coding for new law in Minnesota Statutes, chapter <br />
         		<a id="pl.1.7"></a><var>1.7</var>216C.<br />
         		<a id="pl.1.8"></a><var>1.8</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.9"></a><var>1.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[216C.435] DEFINITIONS.</b><br />
         		<a id="pl.1.10"></a><var>1.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Scope.</b> For the purposes of this section and section 216C.436, the <br />
         		<a id="pl.1.11"></a><var>1.11</var>terms defined in this section have the meanings given them.<br />
         		<a id="pl.1.12"></a><var>1.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>City.</b> "City" means a home rule charter or statutory city.<br />
         		<a id="pl.1.13"></a><var>1.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Local government.</b> "Local government" means a city, county, or town.<br />
         		<a id="pl.1.14"></a><var>1.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Energy audit.</b> "Energy audit" means a formal evaluation of the energy <br />
         		<a id="pl.1.15"></a><var>1.15</var>consumption of a building by a certified energy auditor, whose certification is approved by <br />
         		<a id="pl.1.16"></a><var>1.16</var>the commissioner, for the purpose of identifying appropriate energy improvements that <br />
         		<a id="pl.1.17"></a><var>1.17</var>could be made to the building and including an estimate of the length of time a specific <br />
         		<a id="pl.1.18"></a><var>1.18</var>energy improvement will take to repay its purchase and installation costs, based on the <br />
         		<a id="pl.1.19"></a><var>1.19</var>amount of energy saved and estimated future energy prices.<br />
         		<a id="pl.1.20"></a><var>1.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Energy improvement.</b> "Energy improvement" means:<br />
         		<a id="pl.1.21"></a><var>1.21</var>(1) any renovation or retrofitting of a building to improve energy efficiency that <br />
         		<a id="pl.1.22"></a><var>1.22</var>is permanently affixed to the property and that results in a net reduction in energy <br />
         		<a id="pl.1.23"></a><var>1.23</var>consumption without altering the principal source of energy;<br />
         		<a id="pl.1.24"></a><var>1.24</var>(2) installation of new or upgraded electrical circuits to enable electrical vehicle <br />
         		<a id="pl.1.25"></a><var>1.25</var>charging; or<br />
         		<a id="pl.2.1"></a><var>2.1</var>(3) a renewable energy system attached to, installed within, or proximate to a <br />
         		<a id="pl.2.2"></a><var>2.2</var>building that generates electrical or thermal energy from a renewable energy source.<br />
         		<a id="pl.2.3"></a><var>2.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Qualifying real property.</b> "Qualifying real property" means a <br />
         		<a id="pl.2.4"></a><var>2.4</var>single-family or multifamily residential dwelling, or  a commercial or industrial building, <br />
         		<a id="pl.2.5"></a><var>2.5</var>that the city has determined, after review of an energy audit or renewable energy system <br />
         		<a id="pl.2.6"></a><var>2.6</var>feasibility study, can be benefited by installation of energy improvements.<br />
         		<a id="pl.2.7"></a><var>2.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Renewable energy.</b> "Renewable energy" means energy produced by <br />
         		<a id="pl.2.8"></a><var>2.8</var>means of solar thermal, solar photovoltaic,  wind, or geothermal resources.<br />
         		<a id="pl.2.9"></a><var>2.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Renewable energy system feasibility study.</b> "Renewable energy system <br />
         		<a id="pl.2.10"></a><var>2.10</var>feasibility study" means a written study, conducted by a contractor trained to perform that <br />
         		<a id="pl.2.11"></a><var>2.11</var>analysis, for the purpose of determining the feasibility of installing a renewable energy <br />
         		<a id="pl.2.12"></a><var>2.12</var>system in  a building, including an estimate of the length of time a specific renewable <br />
         		<a id="pl.2.13"></a><var>2.13</var>energy system will take to repay its purchase and installation costs, based on the amount of <br />
         		<a id="pl.2.14"></a><var>2.14</var>energy saved and estimated future energy prices.  For a geothermal energy improvement, <br />
         		<a id="pl.2.15"></a><var>2.15</var>the feasibility study must calculate net savings in terms of nongeothermal energy and costs.<br />
         		<a id="pl.2.16"></a><var>2.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Solar thermal.</b> "Solar thermal" has the meaning given to "qualifying solar <br />
         		<a id="pl.2.17"></a><var>2.17</var>thermal project" in section 216B.2411, subdivision 2, paragraph (e).<br />
         		<a id="pl.2.18"></a><var>2.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Solar photovoltaic.</b> "Solar photovoltaic" has the meaning given in <br />
         		<a id="pl.2.19"></a><var>2.19</var>section 216C.06, subdivision 16, and must meet the requirements of section 216C.25.<br />
         		<a id="pl.2.20"></a><var>2.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.2.21"></a><var>2.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>[216C.436] VOLUNTARY ENERGY IMPROVEMENTS FINANCING </b><br />
         		<a id="pl.2.22"></a><var>2.22</var><b>PROGRAM FOR LOCAL GOVERNMENTS.</b><br />
         		<a id="pl.2.23"></a><var>2.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Program authority.</b> A local government may establish a program <br />
         		<a id="pl.2.24"></a><var>2.24</var>to finance energy improvements to enable owners of qualifying real property to pay for <br />
         		<a id="pl.2.25"></a><var>2.25</var>cost-effective energy improvements to the qualifying real property with the net proceeds <br />
         		<a id="pl.2.26"></a><var>2.26</var>and interest earnings of revenue bonds authorized in this section.<br />
         		<a id="pl.2.27"></a><var>2.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Program requirements.</b> A financing program must:<br />
         		<a id="pl.2.28"></a><var>2.28</var>(1) impose requirements and conditions on financing arrangements to ensure timely <br />
         		<a id="pl.2.29"></a><var>2.29</var>repayment;<br />
         		<a id="pl.2.30"></a><var>2.30</var>(2) require an energy audit or renewable energy system feasibility study to be <br />
         		<a id="pl.2.31"></a><var>2.31</var>conducted on the qualifying real property and reviewed by the local government prior to <br />
         		<a id="pl.2.32"></a><var>2.32</var>approval of the financing; <br />
         		<a id="pl.2.33"></a><var>2.33</var>(3) inspect the installation and verify the performance of energy improvements <br />
         		<a id="pl.2.34"></a><var>2.34</var>financed by the program; <br />
         		<a id="pl.3.1"></a><var>3.1</var>(4) require that all cost-effective energy efficiency improvements be made to a <br />
         		<a id="pl.3.2"></a><var>3.2</var>qualifying real property prior to, or in conjunction with, an applicant receiving financing <br />
         		<a id="pl.3.3"></a><var>3.3</var>for a renewable energy system for that property;<br />
         		<a id="pl.3.4"></a><var>3.4</var>(5) have work financed by the program done by licensed contractors as required by <br />
         		<a id="pl.3.5"></a><var>3.5</var>chapter 326B or other law or ordinance;<br />
         		<a id="pl.3.6"></a><var>3.6</var>(6) require disclosures to borrowers by the local government of the risks involved in <br />
         		<a id="pl.3.7"></a><var>3.7</var>borrowing, including the risk of foreclosure if a tax delinquency results from a default;<br />
         		<a id="pl.3.8"></a><var>3.8</var>(7) provide financing only to those who demonstrate an ability to repay;<br />
         		<a id="pl.3.9"></a><var>3.9</var>(8) not provide financing for a qualifying real property in which the owner has a <br />
         		<a id="pl.3.10"></a><var>3.10</var>negative equity or is not current on mortgage or real property tax payments;<br />
         		<a id="pl.3.11"></a><var>3.11</var>(9) require a petition by all owners of the qualifying real property requesting <br />
         		<a id="pl.3.12"></a><var>3.12</var>collections of repayments as a special assessment under section 429.101;<br />
         		<a id="pl.3.13"></a><var>3.13</var>(10) provide that payments and assessments are not accelerated due to a default and <br />
         		<a id="pl.3.14"></a><var>3.14</var>that a tax delinquency exists only for assessments not paid when due; and<br />
         		<a id="pl.3.15"></a><var>3.15</var>(11) that liability for special assessments related to the financing runs with the <br />
         		<a id="pl.3.16"></a><var>3.16</var>qualifying real property.<br />
         		<a id="pl.3.17"></a><var>3.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Financing terms.</b> Financing provided under this section must have:<br />
         		<a id="pl.3.18"></a><var>3.18</var>(1) a term not to exceed the weighted average of the useful life of the energy <br />
         		<a id="pl.3.19"></a><var>3.19</var>improvements installed, as determined by the local government, but in no event may <br />
         		<a id="pl.3.20"></a><var>3.20</var>a term exceed 20 years;<br />
         		<a id="pl.3.21"></a><var>3.21</var>(2)  a principal amount not to exceed the lesser of ten percent of the appraised value <br />
         		<a id="pl.3.22"></a><var>3.22</var>of the real property on which the improvements are to be installed or the actual cost of <br />
         		<a id="pl.3.23"></a><var>3.23</var>installing the energy improvements, including the costs of necessary equipment, materials, <br />
         		<a id="pl.3.24"></a><var>3.24</var>and labor, the costs of each related energy audit or renewable energy system feasibility <br />
         		<a id="pl.3.25"></a><var>3.25</var>study, and the cost of verification of installation; and<br />
         		<a id="pl.3.26"></a><var>3.26</var>(3) an interest rate sufficient to pay the financing costs of the program, including the <br />
         		<a id="pl.3.27"></a><var>3.27</var>issuance of bonds and any financing delinquencies.<br />
         		<a id="pl.3.28"></a><var>3.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Coordination with other programs.</b> A financing program must include <br />
         		<a id="pl.3.29"></a><var>3.29</var>cooperation and coordination with the conservation improvement activities of the utility <br />
         		<a id="pl.3.30"></a><var>3.30</var>serving the qualifying real property and other public and private energy improvement <br />
         		<a id="pl.3.31"></a><var>3.31</var>programs.<br />
         		<a id="pl.3.32"></a><var>3.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Certificate of participation.</b> Upon completion of a project, a local <br />
         		<a id="pl.3.33"></a><var>3.33</var>government shall provide a borrower with a certificate stating participation in the program <br />
         		<a id="pl.3.34"></a><var>3.34</var>and what energy improvements have been made with financing program proceeds.<br />
         		<a id="pl.3.35"></a><var>3.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Repayment.</b> A local government financing an energy improvement <br />
         		<a id="pl.3.36"></a><var>3.36</var>under this section must: <br />
         		<a id="pl.4.1"></a><var>4.1</var>(1) secure payment with a lien against the benefited qualifying real property; and<br />
         		<a id="pl.4.2"></a><var>4.2</var>(2) collect repayments as a special assessment as provided for in section 429.101 <br />
         		<a id="pl.4.3"></a><var>4.3</var>or by charter.<br />
         		<a id="pl.4.4"></a><var>4.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Bond issuance; repayment.</b> (a) A local government may issue revenue <br />
         		<a id="pl.4.5"></a><var>4.5</var>bonds as provided in chapter 475 for the purposes of this section. <br />
         		<a id="pl.4.6"></a><var>4.6</var>(b) The bonds must be payable as to both principal and interest solely from the <br />
         		<a id="pl.4.7"></a><var>4.7</var>revenues from the assessments established in subdivision 4. <br />
         		<a id="pl.4.8"></a><var>4.8</var>(c) No holder of bonds issued under this subdivision may compel any exercise of the <br />
         		<a id="pl.4.9"></a><var>4.9</var>taxing power of the local government that issued the bonds to pay principal or interest on <br />
         		<a id="pl.4.10"></a><var>4.10</var>the bonds.  Bonds issued under this subdivision are not a debt or obligation of the local <br />
         		<a id="pl.4.11"></a><var>4.11</var>government that issued them, nor is the payment of the bonds enforceable out of any <br />
         		<a id="pl.4.12"></a><var>4.12</var>money other than the revenue pledged to the payment of the bonds.<br />
         		<a id="pl.4.13"></a><var>4.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.4.14"></a><var>4.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2008, section 429.101, subdivision 1, is amended to read:<br />
         		<a id="pl.4.15"></a><var>4.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Ordinances.</b> (a) In addition to any other method authorized by <br />
         		<a id="pl.4.16"></a><var>4.16</var>law or charter, the governing body of any municipality may provide for the collection <br />
         		<a id="pl.4.17"></a><var>4.17</var>of unpaid special charges as a special assessment against the property benefited for all <br />
         		<a id="pl.4.18"></a><var>4.18</var>or any part of the cost of:<br />
         		<a id="pl.4.19"></a><var>4.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) snow, ice, or rubbish removal from sidewalks;<br />
         		<a id="pl.4.20"></a><var>4.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) weed elimination from streets or private property;<br />
         		<a id="pl.4.21"></a><var>4.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) removal or elimination of public health or safety hazards from private property, <br />
         		<a id="pl.4.22"></a><var>4.22</var>excluding any structure included under the provisions of sections 
         <statute_ref>463.15</statute_ref> to 
         <statute_ref>463.26</statute_ref>; <br />
         		<a id="pl.4.23"></a><var>4.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) installation or repair of water service lines, street sprinkling or other dust <br />
         		<a id="pl.4.24"></a><var>4.24</var>treatment of streets;<br />
         		<a id="pl.4.25"></a><var>4.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) the trimming and care of trees and the removal of unsound trees from any street;<br />
         		<a id="pl.4.26"></a><var>4.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) the treatment and removal of insect infested or diseased trees on private property, <br />
         		<a id="pl.4.27"></a><var>4.27</var>the repair of sidewalks and alleys;<br />
         		<a id="pl.4.28"></a><var>4.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) the operation of a street lighting system;<br />
         		<a id="pl.4.29"></a><var>4.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) the operation and maintenance of a fire protection or a pedestrian skyway system;<br />
         		<a id="pl.4.30"></a><var>4.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) inspections relating to a municipal housing maintenance code violation;<br />
         		<a id="pl.4.31"></a><var>4.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) the recovery of any disbursements under section 
         <statute_ref>504B.445, subdivision 4</statute_ref>, <br />
         		<a id="pl.4.32"></a><var>4.32</var>clause (5), including disbursements for payment of utility bills and other services, even if <br />
         		<a id="pl.4.33"></a><var>4.33</var>provided by a third party, necessary to remedy violations as described in section 
         <statute_ref>504B.445, <br />
            		<a id="pl.4.34"></a><var>4.34</var>subdivision 4
         </statute_ref>, clause (2); or <br />
         		<a id="pl.4.35"></a><var>4.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) [Repealed, 2004 c 275 s 5]<br />
         		<a id="pl.5.1"></a><var>5.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) the recovery of delinquent vacant building registration fees under a municipal <br />
         		<a id="pl.5.2"></a><var>5.2</var>program designed to identify and register vacant buildings.<br />
         		<a id="pl.5.3"></a><var>5.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The council may by ordinance adopt regulations consistent with this section to <br />
         		<a id="pl.5.4"></a><var>5.4</var>make this authority effective, including, at the option of the council, provisions for placing <br />
         		<a id="pl.5.5"></a><var>5.5</var>primary responsibility upon the property owner or occupant to do the work personally <br />
         		<a id="pl.5.6"></a><var>5.6</var>(except in the case of street sprinkling or other dust treatment, alley repair, tree trimming, <br />
         		<a id="pl.5.7"></a><var>5.7</var>care, and removal, or the operation of a street lighting system) upon notice before the work <br />
         		<a id="pl.5.8"></a><var>5.8</var>is undertaken, and for collection from the property owner or other person served of the <br />
         		<a id="pl.5.9"></a><var>5.9</var>charges when due before unpaid charges are made a special assessment.<br />
         		<a id="pl.5.10"></a><var>5.10</var>(c) A home rule charter city, statutory city, county, or town operating an energy <br />
         		<a id="pl.5.11"></a><var>5.11</var>improvements financing program under section 216C.436 has the authority granted to a <br />
         		<a id="pl.5.12"></a><var>5.12</var>municipality under paragraph (a) with respect to energy improvements financed under <br />
         		<a id="pl.5.13"></a><var>5.13</var>that section.<br />
         		<a id="pl.5.14"></a><var>5.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		
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