Capital Icon Minnesota Legislature

Office of the Revisor of Statutes

HF 1392

2nd Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:38 p.m.

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act 1.2relating to energy; authorizing sale and issuance of state bonds; authorizing 1.3program to provide grants to municipalities for designing and constructing 1.4energy-efficient buildings and landscaping; authorizing grants for energy-related 1.5projects; modifying provisions for sustainable building guidelines; appropriating 1.6money;amending Minnesota Statutes 2006, section 16B.325. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. new text begin CAPITAL IMPROVEMENT APPROPRIATIONS.new text end
1.9    new text begin The sums shown in the column under "Appropriations" are appropriated from the new text end 1.10new text begin bond proceeds fund, or another named fund, to the state agencies or officials indicated, new text end 1.11new text begin to be spent for public purposes. Appropriations of bond proceeds must be spent as new text end 1.12new text begin authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire new text end 1.13new text begin and better public land and buildings and other public improvements of a capital nature, or new text end 1.14new text begin as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or new text end 1.15new text begin article XIV. Unless otherwise specified, the appropriations in this act are available until new text end 1.16new text begin the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.new text end 1.17    Sec. 2. new text begin PRIORITIES.new text end 1.18    new text begin Subdivision 1.new text end new text begin General.new text end new text begin The Energy Finance and Policy Division of the House new text end 1.19new text begin Finance Committee prioritizes the appropriations in this act as provided in this section.new text end 1.20    new text begin Subd. 2.new text end new text begin High priorities.new text end new text begin The Green Bonds: Grants to Municipalities program in new text end 1.21new text begin section 3.new text end 1.22    new text begin Subd. 3.new text end new text begin Medium.new text end new text begin The Waste to Energy Demonstration Project in section 4, new text end 1.23new text begin subdivision 2.new text end 1.24    new text begin Subd. 4.new text end new text begin Low.new text end new text begin The Steam Line Extension project in section 4, subdivision 3.new text end 1.25    new text begin Subd. 5.new text end new text begin Do not fund.new text end 2.1 Sec. 3. new text begin COMMERCEnew text end
2.2 new text begin Subdivision 1.new text end new text begin Total Appropriationnew text end new text begin $new text end new text begin 10,000,000new text end
2.3new text begin To the commissioner of commerce for the new text end 2.4new text begin purposes specified in this section.new text end 2.5 2.6 new text begin Subd. 2.new text end new text begin Green Bonds: Grants to new text end new text begin Municipalitiesnew text end
2.7new text begin (a) For grants to municipalities that meet new text end 2.8new text begin or exceed the sustainability guidelines new text end 2.9new text begin of Minnesota Statutes, section 16B.325. new text end 2.10new text begin "Municipality" means a county, statutory or new text end 2.11new text begin home rule charter city, town, school district, new text end 2.12new text begin or any combination of those units operating new text end 2.13new text begin under an agreement to undertake projects new text end 2.14new text begin jointly. The grants are:new text end 2.15new text begin (1) to pay a portion of the incremental cost new text end 2.16new text begin of predesign and design work that will new text end 2.17new text begin identify the design elements and costs for new text end 2.18new text begin construction or renovation of the proposed new text end 2.19new text begin building and adjacent landscaping using new text end 2.20new text begin standard construction methods, and the new text end 2.21new text begin design elements and costs for construction or new text end 2.22new text begin renovation using energy-efficient elements; new text end 2.23new text begin (2) to pay a portion of the incremental cost new text end 2.24new text begin of construction or renovation and adjacent new text end 2.25new text begin landscaping work related to implementation new text end 2.26new text begin of the energy-efficient design, as identified new text end 2.27new text begin in the design; andnew text end 2.28new text begin (3) not to be used to pay any costs of a new text end 2.29new text begin project that a local gas or electric utility can new text end 2.30new text begin fund as part of its conservation improvement new text end 2.31new text begin spending requirement under Minnesota new text end 2.32new text begin Statutes, section 216B.241.new text end 2.33new text begin (b) The commissioner shall prescribe new text end 2.34new text begin the application form. For all grants, new text end 3.1new text begin the application must include at least the new text end 3.2new text begin following information:new text end 3.3new text begin (1) the resolution adopted by the municipality new text end 3.4new text begin in support of the project and specifically in new text end 3.5new text begin support of implementing an energy-efficient new text end 3.6new text begin design in the construction of the new new text end 3.7new text begin municipal building;new text end 3.8new text begin (2) a detailed estimate, along with necessary new text end 3.9new text begin supporting evidence, of the total costs for new text end 3.10new text begin the phase of the project for which a grant is new text end 3.11new text begin sought;new text end 3.12new text begin (3) evidence that the municipality has funds new text end 3.13new text begin committed to pay for the balance of this new text end 3.14new text begin phase of the project; new text end 3.15new text begin (4) a letter from the utility providing electric new text end 3.16new text begin and gas service to the project stating that (i) new text end 3.17new text begin it cannot fund the project, or any portion of new text end 3.18new text begin it, as part of its conservation improvement new text end 3.19new text begin spending requirement under Minnesota new text end 3.20new text begin Statutes, section 216B.241, or (ii) the utility new text end 3.21new text begin is not required to invest in conservation new text end 3.22new text begin improvements under Minnesota Statutes, new text end 3.23new text begin section 216B.241; andnew text end 3.24new text begin (5) any additional information or material the new text end 3.25new text begin commissioner requires.new text end 3.26new text begin (c) For a predesign or design grant, the new text end 3.27new text begin application must include at least the new text end 3.28new text begin following information:new text end 3.29new text begin (1) a general description of the project, new text end 3.30new text begin including the ultimate use of the building, new text end 3.31new text begin an estimate of the size, possible locations new text end 3.32new text begin for the building, ownership, and timeline for new text end 3.33new text begin implementation;new text end 4.1new text begin (2) the method for soliciting proposals from new text end 4.2new text begin design professionals and the qualifications new text end 4.3new text begin required by the municipality in selecting the new text end 4.4new text begin design professional for the project; andnew text end 4.5new text begin (3) an estimate of the incremental cost of new text end 4.6new text begin the predesign or design work proposed that new text end 4.7new text begin will be due to providing the energy-efficient new text end 4.8new text begin alternative.new text end 4.9new text begin (d) For a construction grant, the application new text end 4.10new text begin must include at least the predesign and new text end 4.11new text begin design work that provides sufficient detail for new text end 4.12new text begin the commissioner to identify the difference new text end 4.13new text begin in construction costs and estimated operating new text end 4.14new text begin costs, including energy consumption, new text end 4.15new text begin between construction of the project with new text end 4.16new text begin standard elements and construction using new text end 4.17new text begin the proposed energy-efficient elements. new text end 4.18new text begin Grants may only be provided for additional new text end 4.19new text begin construction or renovation costs that would new text end 4.20new text begin not be recovered from energy savings within new text end 4.21new text begin five years.new text end 4.22new text begin (e) The commissioner shall require each new text end 4.23new text begin grant recipient to document and report new text end 4.24new text begin details of the project funded to allow the new text end 4.25new text begin commissioner to analyze costs, energy new text end 4.26new text begin savings, and building operational savings.new text end 4.27 4.28 Sec. 4. new text begin EMPLOYMENT AND ECONOMIC new text end new text begin DEVELOPMENTnew text end
4.29 new text begin Subdivision 1.new text end new text begin Total Appropriationnew text end new text begin $new text end new text begin 8,500,000new text end
4.30new text begin To the commissioner of employment and new text end 4.31new text begin economic development for the purposes new text end 4.32new text begin specified in this section.new text end 4.33 4.34 new text begin Subd. 2.new text end new text begin Waste to Energy Demonstration new text end new text begin Projectnew text end new text begin 2,500,000new text end
5.1new text begin For a grant to be used to design, construct, new text end 5.2new text begin furnish, and equip a waste to energy new text end 5.3new text begin demonstration facility that:new text end 5.4new text begin (1) uses plasma arc technology to generate new text end 5.5new text begin energy;new text end 5.6new text begin (2) uses a variety of Minnesota feedstocks, new text end 5.7new text begin including corn stover, corn cobs, wood chips, new text end 5.8new text begin and scrap materials, as fuel; andnew text end 5.9new text begin (3) is to be manufactured by a company new text end 5.10new text begin incorporated in Minnesota and is to new text end 5.11new text begin be installed by Hutchinson Utilities new text end 5.12new text begin Commission on a site in Hutchinson to new text end 5.13new text begin be selected by the commission. This new text end 5.14new text begin appropriation is not available until the new text end 5.15new text begin commissioner of finance determines that at new text end 5.16new text begin least $1,500,000 has been committed to the new text end 5.17new text begin project from other sources.new text end 5.18 new text begin Subd. 3.new text end new text begin Steam Line Extensionnew text end new text begin 6,000,000new text end
5.19new text begin For a grant to Olmsted County to design new text end 5.20new text begin and construct approximately 1.25 miles of new text end 5.21new text begin a new steam pipeline from the Olmsted new text end 5.22new text begin Waste-to-Energy Facility to the Rochester new text end 5.23new text begin Community and Technical College Campus, new text end 5.24new text begin supplying steam heat and cooling from a new text end 5.25new text begin renewable energy source. This appropriation new text end 5.26new text begin is not available until the commissioner has new text end 5.27new text begin determined that at least an equal amount has new text end 5.28new text begin been committed from Olmsted County.new text end 5.29    Sec. 5. new text begin BOND SALE AUTHORIZATION.new text end 5.30    new text begin To provide the money appropriated in this act from the bond proceeds fund, the new text end 5.31new text begin commissioner of finance shall sell and issue bonds of the state in an amount up to new text end 5.32new text begin $18,500,000 in the manner, upon the terms, and with the effect prescribed by Minnesota new text end 5.33new text begin Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, new text end 5.34new text begin sections 4 to 7.new text end 6.1    Sec. 6. Minnesota Statutes 2006, section 16B.325, is amended to read: 6.216B.325 SUSTAINABLE BUILDING GUIDELINES. 6.3    new text begin Subdivision 1.new text end new text begin Development of sustainable building guidelines.new text end The Department 6.4of Administration and the Department of Commerce, with the assistance of other agencies, 6.5shall develop sustainable building design guidelines for all new state buildings by January 6.615, 2003new text begin , and for all major renovations of state buildings by February 1, 2009new text end . The 6.7primary objectives of these guidelines are to ensure that all new state buildingsnew text begin , and new text end 6.8new text begin major renovations of state buildings,new text end initially exceed existingnew text begin the statenew text end energy code, as 6.9established in Minnesota Rules, chapter 7676, by at least 30 percent. 6.10    new text begin Subd. 2.new text end new text begin Lowest possible cost; energy conservation.new text end The guidelines must focus 6.11on achieving the lowest possible lifetime cost for new buildings new text begin and major renovations, new text end 6.12and allow for changes in the guidelines that encourage continual energy conservation 6.13improvements in new buildings.new text begin and major renovations. The guidelines must define new text end 6.14new text begin "major renovations" for purposes of this section. The definition may not allow "major new text end 6.15new text begin renovations" to encompass less than 10,000 square feet or to encompass less than the new text end 6.16new text begin complete replacement of the mechanical, ventilation, or cooling system of the building or new text end 6.17new text begin a section of the building.new text end The design guidelines must establish sustainability guidelines 6.18that include air quality and lighting standards and that create and maintain a healthy 6.19environment and facilitate productivity improvements; specify ways to reduce material 6.20costs; and must consider the long-term operating costs of the building, including the use of 6.21renewable energy sources and distributed electric energy generation that uses a renewable 6.22source or natural gas or a fuel that is as clean or cleaner than natural gas. 6.23    new text begin Subd. 3.new text end new text begin Development of guidelines; applicability.new text end In developing the guidelines, 6.24the departments shall use an open process, including providing the opportunity for public 6.25comment. The guidelines established under this section are mandatory for all new 6.26buildings receiving funding from the bond proceeds fund after January 1, 2004new text begin , and for all new text end 6.27new text begin major renovations receiving funding from the bond proceeds fund after February 1, 2009new text end . 6.28    Sec. 7. new text begin EFFECTIVE DATE.new text end 6.29    new text begin Except as otherwise provided, this act is effective the day following final enactment.new text end