House members voted 103-28 May 7 to approve a program that would allow the state and local units of government to finance energy efficiency projects with tax-exempt lease purchase agreements.
The bill, HF3669/SF3096*, sponsored by Rep. Jeremy Kalin (DFL-North Branch) and Sen. D. Scott Dibble (DFL-Mpls), is designed to help state agencies and local governments improve the energy efficiency of buildings and public facilities. A different version was passed 55-7 by the Senate on April 28. A conference committee has been appointed to work out the differences.
Under the bill’s provisions, state agencies could enter into financing agreements with the Department of Administration and private financial institutions for either energy efficiency improvement projects or renewable energy projects for state buildings and facilities. Local governments would be allowed to enter into similar contracts with the Commerce Department for energy efficiency projects. To fund the local government efficiency program, the commerce commissioner could transfer up to $1 million from the state’s petroleum violation escrow fund.
The bill also includes a provision that would ask the Office of Energy Security and the Pollution Control Agency to submit a report to the Legislature on how to extend the state’s “Green Star” award program to cities and communities that take action to reduce greenhouse gas emissions.
Kalin said the bill could help reduce property taxes by allowing local governments to cut administrative spending, but some members questioned whether the program was necessary, and also expressed concern about its funding source.
“We have Johnson Controls and Honeywell doing the same thing. They back up and guarantee their work. Why do we need this?” asked Rep. Bob Gunther (R-Fairmont). He unsuccessfully offered an amendment that would have delayed implementation of the program until the Department of Finance determined that private capital was insufficient to fund local energy efficiency projects.
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