The bill modifies the existing commercial property assessed clean energy (PACE) program in Minnesota by expanding the definitions and eligibility criteria for energy improvements. Key changes include the introduction of new terms such as "eligible improvement," "resiliency improvement," and "water improvement," which encompass a broader range of enhancements to commercial properties aimed at improving energy efficiency, resiliency, and water quality. The bill also updates the definition of "cost-effective" to include improvements that reduce greenhouse gas emissions and require documentation through feasibility studies. Additionally, it mandates that energy audits and feasibility studies for resiliency and water improvements be conducted prior to financing approval.

Furthermore, the bill revises the financing terms and requirements for the PACE program, allowing for longer repayment periods of up to 30 years instead of the previous 20 years. It emphasizes the need for inspections and performance verifications of the financed improvements and ensures that all improvements must be made prior to or in conjunction with the repayment of financing. The bill also clarifies that the financing will be secured with a lien against the property and outlines the process for issuing revenue bonds to support the program. Overall, these changes aim to enhance the effectiveness of the PACE program in promoting sustainable and resilient commercial properties in Minnesota.

Statutes affected:
Introduction: 216C.435, 216C.436