SB 536 — Revises provisions governing the Account for Renewable Energy, Energy Efficiency and Energy Conservation Loans. (BDR 58-1196)

EXEMPTSenate *Bill S.B.No.

536536–Committee SENATEon BILLFinance NOCHAPTER.......... .

536–COMMITTEE ON FINANCE (O N BEHALF OF THE OFFICE OF FINANCE IN THE OFFICE OF THE G OVERNOR ) M AY 6, 2019 ____________ Referred to Committee on Finance SUMMARY—Revises provisions governing the Account for Renewable Energy, Energy Efficiency and Energy Conservation Loans.

(BDR 58-1196) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Executive Budget.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law creates the Account for Renewable Energy, Energy Efficiency and Energy Conservation Loans, which may be used only to make loans at a rate of not more than 3 percent to qualified applicants for certain construction and manufacturing projects related to renewable energy, energy efficiency and energy conservation.the Account to be used for any other purpose for which the United Statese money in Department of Energy has approved the use of money received pursuant to the American Recovery and Reinvestment Act of 2009, Public Law 111-5, and deposited in the Account.

(NRS 701.545-701.595) Section 4 of this bill authorizes the money in the Account to be used for any other purpose for which the United States Department of Energy has approved the use of money received pursuant to the American Recovery and Reinvestment Act of 2009, Public Law 111-5, and depSections 1-4 of this bill change the name of the Account for Renewable Energy, Energy Efficiency and Energy Conservation Loans to the Account for Renewable Energy, Energy Efficiency and Energy Conservation.

-EXPLANATION *SB536* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

The faith of the State is hereby pledged that the money in the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] and the Account for Set-Aside Programs will - 80th Session (2019) – 2 – not be used for purposes other than those authorized by the American Recovery and Reinvestment Act.

2.qualified applicant and all proceeds from the sale, refunding orto a prepayment of obligations of a qualified applicant acquired or loans made in carrying out the purposes of the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] must be deposited in the State Treasury for credit to the Account for Renewable Energy, Energy Efficiency and Energy Conservation .

All payments of principal and interest on all loans made to a qualified applicant and all proceeds from the sale, refunding or prepayment of obligations of a qualified applicant acquired or loans made in carrying out the purposes of the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] must be deposited in the State Treasury for credit to the Account for Renewable Energy, Energy Efficiency and Energy Conservation .

The money so accepted must be deposited in the State Treasury for credit to the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans,] or the Account for Set-Aside Programs, and - *SB536* – 3 – can be used to provide money from the State to match the federal grant, as required by the American Recovery and Reinvestment Act.

Only federal money deposited in a separate subaccount of the Account for Renewable Energy, Energy Efficiency and Energy Conservation , [Loans,] including repayments of principal and interest on loans made solely from federal money, and interest and income earned on federal money in the Account for Renewable Energy, Energy Efficiency and Energy Conservation , [Loans,] may be used to benefit a qualified applicant who is not a governmental entity.

- 80th Session (2019) – 3 – 2.

(a) Prepare and enter into required agreements with the Federal Government for the acceptance of grants of money for the Account for Renewable Energy, Energy Efficiency and Energy ConservationtConservation [Loans] and the Account for Set-Aside Programs.

(b) Bind the Office of Energy to terms of the required agreements.

the Office of Energy to terms of the required (c) Accept grants made pursuant to the American Recovery and Reinvestment Act.

(d) Manage the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] and the Account for Set-Aside Programs in accordance with the requirements and objectives of the American Recovery and Reinvestment Act.

(g) Enter into agreements or cooperate with third parties to provide for enhanced leveraging of money in the Account for - *SB536* – 4 – Renewable Energy, Energy Efficiency and Energy Conservation , [Loans,] additional financing mechanisms or any other program or combination of programs for the purpose of expanding the scope of financial assistance available from the Account for Renewable Energy, Energy Efficiency and Energy Conservation .

[Loans.] 3.Renewable Energy, Energy Efficiency and Energy Conservationt for [Loans] for expenditure for the purposes set forth in NRS 701.590 without obtaining the prior approval of the Legislature or the Interim Finance Committee if the Legislature is not in session.

The Director shall not commit any money in the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] for expenditure for the purposes set forth in NRS 701.590 without obtaining the prior approval of the Legislature or the Interim Finance Committee if the Legislature is not in session.

- 80th Session (2019) – 4 – (a) To make loans at a rate of not more than 3 percent to a qualified applicant for:

[(c)] (3) The construction or expansion of a renewable energy sys[(d)]system; (4) The manufacturing of components of a renewable energy system.

Departmentor of[(d)] Energy(4) hasThe approvedmanufacturing theof usecomponents of moneya receivedrenewable pursuantenergy tosystem. the American Recovery and Reinvestment Act and deposited in the Account for Renewable Energy, Energy Efficiency and Energy Conservation.

(b) For any other purpose for which the United States pursuant to the American Recovery and Reinvestment Act andd deposited in the Account for Renewable Energy, Energy Efficiency and Energy Conservation.

- *SB536* – 5 – 4.

Money from the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] may not be given to a qualified applicant for the expansion of an existing renewable energy system unless the qualified applicant has the technical, managerial and financial capability to ensure compliance with the American Recovery and Reinvestment Act and regulations adopted pursuant thereto.

The Director shall, before approving an applicant for financial assistance from the Account for Renewable Energy, Energy Efficiency and Energy Conservation , [Loans,] consider whether the applicant has received or is eligible to receive from any - 80th Session (2019) – 5 – other governmental entity any money or other financial incentive, including, without limitation, any grant, loan, tax credit or abatement of any tax for the purpose of financing in whole or in part the energy efficiency or energy conservation project of the applicant.

The Director may use the interest earned on money in the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] and the interest earned on loans made from the Account for Renewable Energy, Energy Efficiency and EnergymEnergy Conservation [Loans] to defray, in whole or in part, the costs and expenses of administering the Account for Renewable Energy, Energy Efficiency and Energy Conservation [Loans] and to carry out the purposes of NRS 701.545 to 701.595, inclusive.

[The] In selecting qualified applicants to receive funding or assistance from the Account for Renewable Energy, Energy Efficiency and Energy Conservation, the Director shall give preference to qualified applicants seeking funding or assistance [from the Account for Renewable Energy, Energy Efficiency and Energy Conservation Loans] for larger energy conservation projects, Director shall, by regulation, define “larger energy conservation projects, energy efficiency projects or renewable energy systems.systems” for purposes of this section.

The Director shall, by regulation, define “larger energy conservation projects, energy efficiency projects or renewable energy systems” for purposes of this section.

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