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ATTACHMENT #5 MINNESOTA STATUTES 2015 216C.436 216C.436 ENERGY IMPROVEMENTS PROGRAM FOR LOCAL GOVERNMENTS. Subdivision 1. Program authority. An implementing entity may establish a program to finance energy improvements to enable owners of qualifying real property to pay for cost-effective energy improvements to the qualifying real property with the net proceeds and interest earnings of revenue bonds authorized in this section. An implementing entity may limit the number of qualifying real properties for which a property owner may receive program financing. Subd. 2. Program requirements. A financing program must: (1) impose requirements and conditions on financing arrangements to ensure timely repayment; (2) require an energy audit or renewable energy system feasibility study to be conducted on the qualifying real property and reviewed by the implementing entity prior to approval of the financing; (3) require the inspection of all installations and a performance verification of at least ten percent of the energy improvements financed by the program; (4) not prohibit the financing of all cost-effective energy improvements not otherwise prohibited by this section; (5) require that all cost-effective energy improvements be made to a qualifying real property prior to, or in conjunction with, an applicant's repayment of financing for energy improvements for that property; (6) have energy improvements financed by the program performed by licensed contractors as required by chapter 326B or other law or ordinance; (7) require disclosures to borrowers by the implementing entity of the risks involved in borrowing, including the risk of foreclosure if a tax delinquency results from a default; (8) provide financing only to those who demonstrate an ability to repay; (9) not provide financing for a qualifying real property in which the owner is not current on mortgage or real property tax payments; (10) require a petition to the implementing entity by all owners of the qualifying real property requesting collections of repayments as a special assessment under section 429.101; (11) provide that payments and assessments are not accelerated due to a default and that a tax delinquency exists only for assessments not paid when due; and (12) require that liability for special assessments related to the financing runs with the qualifying real property. Subd. 3. Retail and end use prohibited. Energy generated by an energy improvement may not be sold, transmitted, or distributed at retail and may not provide for end use of the electrical energy from an off-site facility. On-site generation is allowed to the extent provided for in section 216B.1611. This section does not modify the exclusive service territories or exclusive right to serve as provided in sections 21613.37 to 216B.43. Copyright 0 2015 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.