1.1.................... moves to amend H.F. No. 270, the delete everything amendment
1.2(H0270DE1), as follows:
1.3Page 41, after line 18, insert:

1.4    "Sec. 27. Minnesota Statutes 2012, section 16C.144, subdivision 2, is amended to read:
1.5    Subd. 2. Guaranteed energy-savings agreement. The commissioner may enter
1.6into a guaranteed energy-savings agreement with a qualified provider if:
1.7(1) the qualified provider is selected through a competitive process in accordance
1.8with the guaranteed energy-savings program guidelines within the Department of
1.9Administration;
1.10(2) the qualified provider agrees to submit an engineering report prior to the
1.11execution of the guaranteed energy-savings agreement. The cost of the engineering report
1.12may be considered as part of the implementation costs if the commissioner enters into a
1.13guaranteed energy-savings agreement with the provider;
1.14(3) the term of the guaranteed energy-savings agreement shall not exceed 15 years
1.15from the date of final installation;
1.16(4) the commissioner finds that the amount it would spend on the utility cost-savings
1.17measures recommended in the engineering report will not exceed the amount to be
1.18saved in utility operation and maintenance costs over 15 20 years from the date of
1.19implementation of utility cost-savings measures;
1.20(5) the qualified provider provides a written guarantee that the annual utility,
1.21operation, and maintenance cost savings during the term of the guaranteed energy-savings
1.22agreement will meet or exceed the annual payments due under a lease purchase agreement.
1.23The qualified provider shall reimburse the state for any shortfall of guaranteed utility,
1.24operation, and maintenance cost savings; and
1.25(6) the qualified provider gives a sufficient bond in accordance with section
1.26574.26 to the commissioner for the faithful implementation and installation of the utility
1.27cost-savings measures.

2.1    Sec. 28. Minnesota Statutes 2012, section 16C.144, subdivision 3, is amended to read:
2.2    Subd. 3. Lease purchase agreement. The commissioner may enter into a lease
2.3purchase agreement with any party for the implementation of utility cost-savings measures
2.4in accordance with the guaranteed energy-savings agreement. The implementation costs of
2.5the utility cost-savings measures recommended in the engineering report shall not exceed
2.6the amount to be saved in utility and operation and maintenance costs over the term of the
2.7lease purchase agreement. The term of the lease purchase agreement shall not exceed 15
2.8 20 years from the date of final installation. The lease is assignable in accordance with
2.9terms approved by the commissioner of management and budget."
2.10Page 42, delete section 28, and insert:

2.11    "Sec. 28. Minnesota Statutes 2012, section 123B.65, subdivision 1, is amended to read:
2.12    Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
2.13(a) "Energy conservation measure" means a training program or facility alteration
2.14designed to reduce energy consumption or operating costs and includes:
2.15(1) insulation of the building structure and systems within the building;
2.16(2) storm windows and doors, caulking or weatherstripping, multiglazed windows
2.17and doors, heat absorbing or heat reflective glazed and coated window and door
2.18systems, additional glazing, reductions in glass area, and other window and door system
2.19modifications that reduce energy consumption;
2.20(3) automatic energy control systems;
2.21(4) heating, ventilating, or air conditioning system modifications or replacements;
2.22(5) replacement or modifications of lighting fixtures to increase the energy efficiency
2.23of the lighting system without increasing the overall illumination of a facility, unless such
2.24increase in illumination is necessary to conform to the applicable state or local building
2.25code for the lighting system after the proposed modifications are made;
2.26(6) energy recovery systems;
2.27(7) cogeneration systems that produce steam or forms of energy such as heat, as well
2.28as electricity, for use primarily within a building or complex of buildings;
2.29(8) energy conservation measures that provide long-term operating cost reductions.
2.30(b) "Guaranteed energy-savings contract" means a contract for the evaluation
2.31and recommendations of energy conservation measures, and for one or more energy
2.32conservation measures. The contract must provide that all payments, except obligations
2.33on termination of the contract before its expiration, are to be made over time, but not to
2.34exceed 15 20 years from the date of final installation, and the savings are guaranteed to
2.35the extent necessary to make payments for the systems.
3.1(c) "Qualified provider" means a person or business experienced in the design,
3.2implementation, and installation of energy conservation measures. A qualified provider
3.3to whom the contract is awarded shall give a sufficient bond to the school district for
3.4its faithful performance.
3.5(d) "Commissioner" means the commissioner of commerce through the state energy
3.6office.

3.7    Sec. 29. Minnesota Statutes 2012, section 123B.65, subdivision 7, is amended to read:
3.8    Subd. 7. District action. A district may enter into a guaranteed energy-savings
3.9contract with a qualified provider if, after review of the report and the commissioner's
3.10evaluation if requested, or if required under section 216C.372, the board finds that the
3.11amount it would spend on the energy conservation measures recommended in the report is
3.12not likely to exceed the amount to be saved in energy and operation costs over 15 20 years
3.13from the date of installation if the recommendations in the report were followed, and the
3.14qualified provider provides a written guarantee that the energy or operating cost savings
3.15will meet or exceed the costs of the system. The guaranteed energy-savings contract may
3.16provide for payments over a period of time, not to exceed 15 20 years. Notwithstanding
3.17section 123B.79, a district annually may transfer from the general fund to the reserve for
3.18operating capital account an amount up to the amount saved in energy and operation costs
3.19as a result of guaranteed energy-savings contracts."
3.20Page 43, after line 3, insert:
3.21    "Subd. 5. Engineering report. "Engineering report" has the meaning given in
3.22section 16C.144, subdivision 1, paragraph (k)."
3.23Renumber the subdivisions in sequence
3.24Page 43, line 29, delete everything after the period
3.25Page 43, delete line 30
3.26Page 43, line 31, before "A" insert "(a)"
3.27Page 44, line 8, before the semicolon, insert ", including, where the source of
3.28matching funds is a guaranteed energy-savings contract entered into under section 16C.144
3.29or section 123B.54, or a lease purchase agreement entered into under section 16C.144, a
3.30copy of the proposed guaranteed energy-savings contract or lease purchase agreement"
3.31Page 44, line 9, after "contractor" insert ", or an engineering report prepared by a
3.32contractor qualified through section 16C.144 or section 216C.43,"
3.33Page 44, after line 13, insert " A school district may, in consultation with the
3.34commissioner of commerce, evaluate the use of the guaranteed energy savings program
3.35outlined in 16C.144 or an energy improvement financing program for local governments
4.1outlined in section 216C.43 before making an application for the school energy
4.2conservation loan program."
4.3Page 44, line 16, delete "and"
4.4Page 44, line 17, before the period, insert
4.5"; and
4.6(4) finance no energy improvement whose useful life is less than the loan term"
4.7Page 44, lines 19 and 20, after "audit" insert "or engineering report"
4.8Page 44, after line 21, insert:
4.9    "Subd. 6. Commissioner review. The commissioner shall review applications filed
4.10under this section and shall notify a school district in writing of the decision to approve or
4.11disapprove the application. If the commissioner disapproves an application, the notice
4.12shall contain the reasons why the application was disapproved. If an approved application
4.13includes a proposed guaranteed energy-savings contract or lease purchase agreement as
4.14a source of matching funds, the notice shall contain the commissioner's comments and
4.15recommendations regarding the provisions of the guaranteed energy-savings contract or
4.16lease purchase agreement."
4.17Renumber the subdivisions in sequence
4.18Page 44, after line 30, insert:

4.19    "Sec. 31. Minnesota Statutes 2012, section 216C.10, is amended to read:
4.20216C.10 COMMISSIONER POWERS.
4.21(a) The commissioner may:
4.22(1) adopt rules under chapter 14 as necessary to carry out the purposes of sections
4.23216C.05 to 216C.30;
4.24(2) make all contracts under sections 216C.05 to 216C.30 and do all things necessary
4.25to cooperate with the United States government, and to qualify for, accept, and disburse
4.26any grant intended for the administration of sections 216C.05 to 216C.30;
4.27(3) provide on-site technical assistance to units of local government in order to
4.28enhance local capabilities for dealing with energy problems;
4.29(4) administer for the state, energy programs under federal law, regulations, or
4.30guidelines, and coordinate the programs and activities with other state agencies, units of
4.31local government, and educational institutions;
4.32(5) develop a state energy investment plan with yearly energy conservation and
4.33alternative energy development goals, investment targets, and marketing strategies;
4.34(6) perform market analysis studies relating to conservation, alternative and
4.35renewable energy resources, and energy recovery;
5.1(7) assist with the preparation of proposals for innovative conservation, renewable,
5.2alternative, or energy recovery projects;
5.3(8) manage and disburse funds made available for the purpose of research studies
5.4or demonstration projects related to energy conservation or other activities deemed
5.5appropriate by the commissioner;
5.6(9) intervene in certificate of need proceedings before the Public Utilities
5.7Commission;
5.8(10) collect fees from recipients of loans, grants, or other financial aid from money
5.9received from litigation or settlement of alleged violations of federal petroleum-pricing
5.10regulations, which fees must be used to pay the department's costs in administering those
5.11financial aids; and
5.12(11) collect fees from proposers and operators of conservation and other
5.13energy-related programs that are reviewed, evaluated, or approved by the department,
5.14other than proposers that are political subdivisions or community or nonprofit
5.15organizations, to cover the department's cost in making the reviewal, evaluation, or
5.16approval and in developing additional programs for others to operate.; and
5.17(12) fix, charge, and collect fees from state agencies, units of local government,
5.18education institutions, and others that use the department's technical support services
5.19during a guaranteed energy savings program contract under sections 16C.144, 123B.65,
5.20and 471.345, or during an energy improvement financing program for local governments
5.21under section 216C.43, to make those services self-funding. An energy performance
5.22contracting fund is established as a special revenue account in the state treasury. Fees
5.23collected and interest, dividends, and any other earnings arising from fund assets, must
5.24be credited to the fund.
5.25(b) Notwithstanding any other law, the commissioner is designated the state agent to
5.26apply for, receive, and accept federal or other funds made available to the state for the
5.27purposes of sections 216C.05 to 216C.30."
5.28Renumber the sections in sequence and correct the internal references
5.29Amend the title accordingly