February 12, 2013, Introduced by Reps. Ananich and Driskell and referred to the Committee on Energy and Technology.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
(MCL 460.1001 to 460.1195) by adding section 135.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 135. (1) As used in this section:
(a) "Department" means the department of licensing and
regulatory affairs.
(b) "Director" means the director of the department.
(c) "Fund" means the weatherization, heating, and energy
efficiency loans for schools fund created in subsection (2).
(d) "School district" means any of the following:
(i) A school district as defined in section 6 of the revised
school code, 1976 PA 451, MCL 380.6.
(ii) An intermediate school district as defined in section 4 of
the revised school code, 1976 PA 451, MCL 380.4.
(iii) A public school academy as defined in section 5 of the
revised school code, 1976 PA 451, MCL 380.5.
(2) The weatherization, heating, and energy efficiency loans
for schools fund is created within the state treasury. The state
treasurer may receive money or other assets from any source for
deposit into the fund. The state treasurer shall direct the
investment of the fund. Subject to approval by the director, a
local unit of government, public utility, or other legally
organized entity may provide money for deposit in the fund with a
restriction limiting the contribution for use within a limited
geographical area of this state. The state treasurer shall credit
to the fund interest and earnings from fund investments. Money in
the fund at the close of the fiscal year shall remain in the fund
and shall not lapse to the general fund. The department shall be
the administrator of the fund for auditing purposes.
(3) The department shall expend money from the fund, upon
appropriation, only for the following projects:
(a) Grants or loans to school districts for weatherizing,
upgrading, and retrofitting of elementary and secondary schools to
improve energy efficiency, decrease fuel costs, increase use of
alternative fuels, or decrease emissions of air pollutants.
(b) Grants or loans to school districts for retrofitting
school buses to operate on compressed natural gas or other
alternative fuels or to operate with high-efficiency types of
engines such as hybrid electric engines.
(c) Grants or loans to school districts for replacing school
buses with school buses that operate on compressed natural gas or
other alternative fuels or that operate with high-efficiency
engines such as hybrid electric engines.
(d) Reducing the loan repayment burden of a school district
with an outstanding loan on the effective date of this section that
was obtained for 1 or more of the purposes described in
subdivisions (a) through (c).
(e) Reducing the loan repayment burden of a school district
financing a project using the fund.
(f) Creating financial incentives for school districts to
undertake energy efficiency, renewable energy, and energy
conservation projects that may not result in significant energy
cost savings.
(g) Paying the expenses of administering the fund or the
program under this section that are incurred by any state
department or agency.
(4) A loan under subsection (2)(a) to (c) shall be repaid in
amounts that annually do not exceed the annual energy or other cost
savings realized by a school district as a result of the project
financed by the loan.
(5) By June 1, 2014, the department shall develop an
application process for a school district to follow when requesting
financing from the fund, including submission of an application
form and a plan to monitor and verify energy cost savings resulting
from the project.
(6) The director shall make a decision on an application after
considering at least all of the following factors:
(a) The comprehensiveness of the project and whether it is
designed to attain compliance with state fire or safety codes.
(b) The use of matching funds from other governmental or
private sources.
(c) The need for the project, including the need of the
applicant to reduce energy costs.
(d) The cost savings expected to be realized from the project.
(e) The applicant's plan to monitor and verify energy cost
savings from the project.
(f) The expected repayment period of any financing required
for the project.
(g) The solvency of the applicant and, if the applicant has
applied for a loan from the fund, the applicant's ability to repay
the loan.
(h) The applicant's previous success completing projects
financed by the fund and repaying loans from the fund.
(i) The number and duration of jobs likely to be created as a
result of the project.
(j) Whether money subject to geographical use restrictions
under subsection (2) is available from the fund for the project.
(7) By December 1, 2014 and each year thereafter, the director
shall submit to the legislature a report on all of the following:
(a) For each project financed with an expenditure from the
fund in the prior state fiscal year, a description of the project,
the amount expended, and the recipient of the expenditures.
(b) The total amount expended from the fund in the prior state
fiscal year and since the creation of the fund.
(c) For each project financed with a loan from the fund before
the prior state fiscal year and for which the loan has not yet been
fully repaid, a description of the project, the amount due on the
loan, and the recipient of the loan.