SF5165

Purpose

• Provide funding for energy efficiency improvements in Brainerd Public Utilities by awarding grants funded from state bonds.

Main Provisions

• Subdivision 1 – Appropriation:

  • The state appropriates $7,500,000 from the bond proceeds fund to the commissioner of commerce.
  • The money is for one or more grants to Brainerd Public Utilities for energy efficiency projects in Brainerd.
  • An energy efficiency project is defined as a capital improvement that may include:
  • an upgrade to an existing turbine generator,
  • the acquisition and installation of a new turbine generator to replace an existing one, or
  • improvements to existing structures to accommodate new turbine generators.

• Subdivision 2 – Bond Sale:

  • To provide the money, the commissioner of management and budget must sell and issue state bonds up to $7,500,000.
  • Bond sale must follow Minnesota statutes sections 16A.631 to 16A.675 and the Minnesota Constitution (Article XI, sections 4–7).

Definitions and Key Terms

• Energy efficiency project
• Brainerd Public Utilities
• Capital improvement
• Turbine generator (upgrade, replacement, acquisition, installation)
• Bond proceeds fund
• Grants
• Bonds
• Commissioner of commerce
• Commissioner of management and budget
• Minnesota Statutes 16A.631 to 16A.675
• Minnesota Constitution Article XI (sections 4–7)

Significant Changes to Law

• Establishes a new, targeted appropriation and bond-backed financing for Brainerd Public Utilities to pursue energy efficiency projects (specifically turbine generator upgrades/replacements and related structural improvements).
• Creates a dedicated funding mechanism (bond proceeds fund) and assigns administration to the commissioner of commerce and bond management to the commissioner of management and budget.

Implementation and Oversight

• Funds to Brainerd Public Utilities are administered as grants by the commissioner of commerce.
• Bond issuance is governed by existing state statutes and constitutional provisions, with oversight by the commissioner of management and budget.

Effective Date

• Not specified in the excerpt.

Potential Impacts

• Enables modernization and potential improvements in energy efficiency for Brainerd Public Utilities.
• May affect local energy infrastructure, with implications for capacity, reliability, and future operating costs.

---

Relevant Terms

• energy efficiency project
• Brainerd Public Utilities
• turbine generator
• upgrade
• replacement
• acquisition
• installation
• capital improvement
• bond proceeds fund
• grants
• bonds
• commissioner of commerce
• commissioner of management and budget
• Minnesota Statutes 16A.631 to 16A.675
• Minnesota Constitution Article XI (4–7)