The bill modifies the existing commercial property assessed clean energy (PACE) program in Minnesota by expanding the definition of eligible improvements to include not only energy efficiency upgrades but also water and resiliency improvements. Key amendments include the introduction of new terms such as "eligible improvement," "resiliency improvement," and "water improvement," which encompass a range of installations aimed at enhancing energy efficiency, water quality, and property resilience against environmental challenges. The bill also updates the definitions of "energy audit" and "renewable energy system feasibility study" to include considerations for greenhouse gas emissions and effective useful life, rather than solely focusing on cost-effectiveness.

Additionally, the bill revises the financing terms and requirements for the PACE program, allowing for a longer repayment period of up to 30 years instead of the previous 20 years. It mandates that energy audits and feasibility studies for resiliency and water improvements be conducted prior to financing approval. The bill also emphasizes the importance of documenting the benefits of these improvements, including their impact on water efficiency and quality, as well as their ability to mitigate greenhouse gas emissions. Overall, the legislation aims to promote a broader range of sustainable improvements in commercial properties while ensuring that financing arrangements are structured to support timely repayment.

Statutes affected:
Introduction: 216C.435, 216C.436
1st Engrossment: 216C.435, 216C.436