Bill > SF4142

This bill expands the financing tools available to the Minnesota Climate Innovation Financing Authority (MCFA), a state entity established to support projects that reduce greenhouse gas emissions. Specifically, it allows the MCFA to borrow money or other property for its activities, and to sell notes, mortgages, or other obligations related to loans it has made. The bill also clarifies that the MCFA can use credit enhancement mechanisms like loan loss reserves or guarantees to reduce financial risk for lenders, co-invest in projects by providing debt or equity, and aggregate smaller projects to spread out risk. Furthermore, it permits the MCFA to secure additional private investment through securitization, which involves selling its interest in a completed project, and allows for the use of up to 25 percent of appropriated funds for start-up purposes before a formal strategic plan is adopted. These changes aim to provide the MCFA with more flexibility and capacity to finance climate-related projects across the state.

Agriculture and Natural Resources

https://www.revisor.mn.gov/bills/94/2026/0/SF/4142/