November 28, 2012, Introduced by Rep. Ananich 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) "Fund" means the weatherization, heating, and energy
efficiency loans for schools fund created in subsection (2).
(b) "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 of the
department of licensing and regulatory affairs, 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 of licensing and regulatory affairs
shall be the administrator of the fund for auditing purposes.
(3) The department of licensing and regulatory affairs shall
expend money from the fund, upon appropriation, only for the
following projects:
(a) Weatherizing, upgrading, and retrofitting of public
elementary and secondary schools to improve energy efficiency,
decrease fuel costs, increase use of alternative fuels, or decrease
emissions of air pollutants.
(b) Retrofitting public 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) Replacing public 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 additional administrative expenses incurred by
the state treasurer, the department of licensing and regulatory
affairs, the department of education, or another state agency as a
result of directing the fund.
(4) Expenditures from the fund for the purposes of subsection
(3)(a) to (c) shall be in the form of grants or loans. A loan 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, 2013, the director of the department of
licensing and regulatory affairs shall develop an application
process for school districts to follow when requesting financing
from the fund, including application forms and the submission of a
plan to monitor and verify energy cost savings resulting from the
project.
(6) The director of the department of licensing and regulatory
affairs 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 standards set in 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 as a result of
the proposed 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 a 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 made under the fund.
(i) The number and duration of new 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, 2013 and each year thereafter, the director
of the department of licensing and regulatory affairs 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.
(8) Notwithstanding section 191, pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, the director of the department of licensing and regulatory
affairs shall promulgate rules to implement this section.