<a id="pl.1.3"></a><var>1.3</var>program to provide grants to municipalities for designing and constructing <br/>
<a id="pl.1.4"></a><var>1.4</var>energy-efficient buildings and landscaping; authorizing grants for energy-related <br/>
<a id="pl.1.5"></a><var>1.5</var>projects; modifying provisions for sustainable building guidelines; appropriating <br/>
<a id="pl.1.6"></a><var>1.6</var>money;amending Minnesota Statutes 2006, section 16B.325.<br/>
<a id="pl.1.7"></a><var>1.7</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><table>
<col width="50px"/>
<col width=""/>
<tr>
<td><a id="pl.1.8"></a><var>1.8</var><br/>
</td>
<td align="left" valign="bottom">Section 1. <b>CAPITAL IMPROVEMENT APPROPRIATIONS.</b><br/>
</td>
</tr>
</table><a id="pl.1.9"></a><var>1.9</var>    The sums shown in the column under "Appropriations" are appropriated from the <br/>
<a id="pl.1.10"></a><var>1.10</var>bond proceeds fund, or another named fund, to the state agencies or officials indicated, <br/>
<a id="pl.1.11"></a><var>1.11</var>to be spent for public purposes. Appropriations of bond proceeds must be spent as <br/>
<a id="pl.1.12"></a><var>1.12</var>authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire <br/>
<a id="pl.1.13"></a><var>1.13</var>and better public land and buildings and other public improvements of a capital nature, or <br/>
<a id="pl.1.14"></a><var>1.14</var>as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or <br/>
<a id="pl.1.15"></a><var>1.15</var>article XIV. Unless otherwise specified, the appropriations in this act are available until <br/>
<a id="pl.1.16"></a><var>1.16</var>the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.17"></a><var>1.17</var>    Sec. 2. <b>PRIORITIES.</b><br/>
<a id="pl.1.18"></a><var>1.18</var>    Subdivision 1. <b>General.</b> The Energy Finance and Policy Division of the House <br/>
<a id="pl.1.19"></a><var>1.19</var>Finance Committee prioritizes the appropriations in this act as provided in this section.<br/>
<a id="pl.1.20"></a><var>1.20</var>    Subd. 2. <b>High priorities.</b> The Green Bonds: Grants to Municipalities program in <br/>
<a id="pl.1.21"></a><var>1.21</var>section 3.<br/>
<a id="pl.1.22"></a><var>1.22</var>    Subd. 3. <b>Medium.</b> The Waste to Energy Demonstration Project in section 4, <br/>
<a id="pl.1.23"></a><var>1.23</var>subdivision 2.<br/>
<a id="pl.1.24"></a><var>1.24</var>    Subd. 4. <b>Low.</b> The Steam Line Extension project in section 4, subdivision 3.<br/>
<a id="pl.1.25"></a><var>1.25</var>    Subd. 5. <b>Do not fund.</b><br/>
<br/>
<a id="bill.0.3.0"></a><table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.1"></a><var>2.1</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Sec. 3. <b>COMMERCE</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.2"></a><var>2.2</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subdivision 1.<b>Total Appropriation</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"><b>$</b><br/>
</td>
<td align="right" valign="bottom"><b>10,000,000</b><br/>
</td>
</tr>
</table><a id="pl.2.3"></a><var>2.3</var>To the commissioner of commerce for the <br/>
<a id="pl.2.4"></a><var>2.4</var>purposes specified in this section.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.5"></a><var>2.5</var><br/>
<a id="pl.2.6"></a><var>2.6</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subd. 2.<b>Green Bonds: Grants to </b><br/>
<b>Municipalities</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
</tr>
</table><a id="pl.2.7"></a><var>2.7</var>(a) For grants to municipalities that meet <br/>
<a id="pl.2.8"></a><var>2.8</var>or exceed the sustainability guidelines <br/>
<a id="pl.2.9"></a><var>2.9</var>of Minnesota Statutes, section 16B.325. <br/>
<a id="pl.2.10"></a><var>2.10</var>"Municipality" means a county, statutory or <br/>
<a id="pl.2.11"></a><var>2.11</var>home rule charter city, town, school district, <br/>
<a id="pl.2.12"></a><var>2.12</var>or any combination of those units operating <br/>
<a id="pl.2.13"></a><var>2.13</var>under an agreement to undertake projects <br/>
<a id="pl.2.14"></a><var>2.14</var>jointly. The grants are:<br/>
<a id="pl.2.15"></a><var>2.15</var>(1) to pay a portion of the incremental cost <br/>
<a id="pl.2.16"></a><var>2.16</var>of predesign and design work that will <br/>
<a id="pl.2.17"></a><var>2.17</var>identify the design elements and costs for <br/>
<a id="pl.2.18"></a><var>2.18</var>construction or renovation of the proposed <br/>
<a id="pl.2.19"></a><var>2.19</var>building and adjacent landscaping using <br/>
<a id="pl.2.20"></a><var>2.20</var>standard construction methods, and the <br/>
<a id="pl.2.21"></a><var>2.21</var>design elements and costs for construction or <br/>
<a id="pl.2.22"></a><var>2.22</var>renovation using energy-efficient elements; <br/>
<a id="pl.2.23"></a><var>2.23</var>(2) to pay a portion of the incremental cost <br/>
<a id="pl.2.24"></a><var>2.24</var>of construction or renovation and adjacent <br/>
<a id="pl.2.25"></a><var>2.25</var>landscaping work related to implementation <br/>
<a id="pl.2.26"></a><var>2.26</var>of the energy-efficient design, as identified <br/>
<a id="pl.2.27"></a><var>2.27</var>in the design; and<br/>
<a id="pl.2.28"></a><var>2.28</var>(3) not to be used to pay any costs of a <br/>
<a id="pl.2.29"></a><var>2.29</var>project that a local gas or electric utility can <br/>
<a id="pl.2.30"></a><var>2.30</var>fund as part of its conservation improvement <br/>
<a id="pl.2.31"></a><var>2.31</var>spending requirement under Minnesota <br/>
<a id="pl.2.32"></a><var>2.32</var>Statutes, section 216B.241.<br/>
<a id="pl.2.33"></a><var>2.33</var>(b) The commissioner shall prescribe <br/>
<a id="pl.2.34"></a><var>2.34</var>the application form. For all grants, <br/>
<a id="pl.3.1"></a><var>3.1</var>the application must include at least the <br/>
<a id="pl.3.2"></a><var>3.2</var>following information:<br/>
<a id="pl.3.3"></a><var>3.3</var>(1) the resolution adopted by the municipality <br/>
<a id="pl.3.4"></a><var>3.4</var>in support of the project and specifically in <br/>
<a id="pl.3.5"></a><var>3.5</var>support of implementing an energy-efficient <br/>
<a id="pl.3.6"></a><var>3.6</var>design in the construction of the new <br/>
<a id="pl.3.7"></a><var>3.7</var>municipal building;<br/>
<a id="pl.3.8"></a><var>3.8</var>(2) a detailed estimate, along with necessary <br/>
<a id="pl.3.9"></a><var>3.9</var>supporting evidence, of the total costs for <br/>
<a id="pl.3.10"></a><var>3.10</var>the phase of the project for which a grant is <br/>
<a id="pl.3.11"></a><var>3.11</var>sought;<br/>
<a id="pl.3.12"></a><var>3.12</var>(3) evidence that the municipality has funds <br/>
<a id="pl.3.13"></a><var>3.13</var>committed to pay for the balance of this <br/>
<a id="pl.3.14"></a><var>3.14</var>phase of the project; <br/>
<a id="pl.3.15"></a><var>3.15</var>(4) a letter from the utility providing electric <br/>
<a id="pl.3.16"></a><var>3.16</var>and gas service to the project stating that (i) <br/>
<a id="pl.3.17"></a><var>3.17</var>it cannot fund the project, or any portion of <br/>
<a id="pl.3.18"></a><var>3.18</var>it, as part of its conservation improvement <br/>
<a id="pl.3.19"></a><var>3.19</var>spending requirement under Minnesota <br/>
<a id="pl.3.20"></a><var>3.20</var>Statutes, section 216B.241, or (ii) the utility <br/>
<a id="pl.3.21"></a><var>3.21</var>is not required to invest in conservation <br/>
<a id="pl.3.22"></a><var>3.22</var>improvements under Minnesota Statutes, <br/>
<a id="pl.3.23"></a><var>3.23</var>section 216B.241; and<br/>
<a id="pl.3.24"></a><var>3.24</var>(5) any additional information or material the <br/>
<a id="pl.3.25"></a><var>3.25</var>commissioner requires.<br/>
<a id="pl.3.26"></a><var>3.26</var>(c) For a predesign or design grant, the <br/>
<a id="pl.3.27"></a><var>3.27</var>application must include at least the <br/>
<a id="pl.3.28"></a><var>3.28</var>following information:<br/>
<a id="pl.3.29"></a><var>3.29</var>(1) a general description of the project, <br/>
<a id="pl.3.30"></a><var>3.30</var>including the ultimate use of the building, <br/>
<a id="pl.3.31"></a><var>3.31</var>an estimate of the size, possible locations <br/>
<a id="pl.3.32"></a><var>3.32</var>for the building, ownership, and timeline for <br/>
<a id="pl.3.33"></a><var>3.33</var>implementation;<br/>
<a id="pl.4.1"></a><var>4.1</var>(2) the method for soliciting proposals from <br/>
<a id="pl.4.2"></a><var>4.2</var>design professionals and the qualifications <br/>
<a id="pl.4.3"></a><var>4.3</var>required by the municipality in selecting the <br/>
<a id="pl.4.4"></a><var>4.4</var>design professional for the project; and<br/>
<a id="pl.4.5"></a><var>4.5</var>(3) an estimate of the incremental cost of <br/>
<a id="pl.4.6"></a><var>4.6</var>the predesign or design work proposed that <br/>
<a id="pl.4.7"></a><var>4.7</var>will be due to providing the energy-efficient <br/>
<a id="pl.4.8"></a><var>4.8</var>alternative.<br/>
<a id="pl.4.9"></a><var>4.9</var>(d) For a construction grant, the application <br/>
<a id="pl.4.10"></a><var>4.10</var>must include at least the predesign and <br/>
<a id="pl.4.11"></a><var>4.11</var>design work that provides sufficient detail for <br/>
<a id="pl.4.12"></a><var>4.12</var>the commissioner to identify the difference <br/>
<a id="pl.4.13"></a><var>4.13</var>in construction costs and estimated operating <br/>
<a id="pl.4.14"></a><var>4.14</var>costs, including energy consumption, <br/>
<a id="pl.4.15"></a><var>4.15</var>between construction of the project with <br/>
<a id="pl.4.16"></a><var>4.16</var>standard elements and construction using <br/>
<a id="pl.4.17"></a><var>4.17</var>the proposed energy-efficient elements. <br/>
<a id="pl.4.18"></a><var>4.18</var>Grants may only be provided for additional <br/>
<a id="pl.4.19"></a><var>4.19</var>construction or renovation costs that would <br/>
<a id="pl.4.20"></a><var>4.20</var>not be recovered from energy savings within <br/>
<a id="pl.4.21"></a><var>4.21</var>five years.<br/>
<a id="pl.4.22"></a><var>4.22</var>(e) The commissioner shall require each <br/>
<a id="pl.4.23"></a><var>4.23</var>grant recipient to document and report <br/>
<a id="pl.4.24"></a><var>4.24</var>details of the project funded to allow the <br/>
<a id="pl.4.25"></a><var>4.25</var>commissioner to analyze costs, energy <br/>
<a id="pl.4.26"></a><var>4.26</var>savings, and building operational savings.<br/>
<br/>
<a id="bill.0.4.0"></a><table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.4.27"></a><var>4.27</var><br/>
<a id="pl.4.28"></a><var>4.28</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Sec. 4. <b>EMPLOYMENT AND ECONOMIC </b><br/>
<b>DEVELOPMENT</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.4.29"></a><var>4.29</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subdivision 1.<b>Total Appropriation</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"><b>$</b><br/>
</td>
<td align="right" valign="bottom"><b>8,500,000</b><br/>
</td>
</tr>
</table><a id="pl.4.30"></a><var>4.30</var>To the commissioner of employment and <br/>
<a id="pl.4.31"></a><var>4.31</var>economic development for the purposes <br/>
<a id="pl.4.32"></a><var>4.32</var>specified in this section.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.4.33"></a><var>4.33</var><br/>
<a id="pl.4.34"></a><var>4.34</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subd. 2.<b>Waste to Energy Demonstration </b><br/>
<b>Project</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom">2,500,000<br/>
</td>
</tr>
</table><a id="pl.5.1"></a><var>5.1</var>For a grant to be used to design, construct, <br/>
<a id="pl.5.2"></a><var>5.2</var>furnish, and equip a waste to energy <br/>
<a id="pl.5.3"></a><var>5.3</var>demonstration facility that:<br/>
<a id="pl.5.4"></a><var>5.4</var>(1) uses plasma arc technology to generate <br/>
<a id="pl.5.5"></a><var>5.5</var>energy;<br/>
<a id="pl.5.6"></a><var>5.6</var>(2) uses a variety of Minnesota feedstocks, <br/>
<a id="pl.5.7"></a><var>5.7</var>including corn stover, corn cobs, wood chips, <br/>
<a id="pl.5.8"></a><var>5.8</var>and scrap materials, as fuel; and<br/>
<a id="pl.5.9"></a><var>5.9</var>(3) is to be manufactured by a company <br/>
<a id="pl.5.10"></a><var>5.10</var>incorporated in Minnesota and is to <br/>
<a id="pl.5.11"></a><var>5.11</var>be installed by Hutchinson Utilities <br/>
<a id="pl.5.12"></a><var>5.12</var>Commission on a site in Hutchinson to <br/>
<a id="pl.5.13"></a><var>5.13</var>be selected by the commission. This <br/>
<a id="pl.5.14"></a><var>5.14</var>appropriation is not available until the <br/>
<a id="pl.5.15"></a><var>5.15</var>commissioner of finance determines that at <br/>
<a id="pl.5.16"></a><var>5.16</var>least $1,500,000 has been committed to the <br/>
<a id="pl.5.17"></a><var>5.17</var>project from other sources.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.5.18"></a><var>5.18</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subd. 3.<b>Steam Line Extension</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom">6,000,000<br/>
</td>
</tr>
</table><a id="pl.5.19"></a><var>5.19</var>For a grant to Olmsted County to design <br/>
<a id="pl.5.20"></a><var>5.20</var>and construct approximately 1.25 miles of <br/>
<a id="pl.5.21"></a><var>5.21</var>a new steam pipeline from the Olmsted <br/>
<a id="pl.5.22"></a><var>5.22</var>Waste-to-Energy Facility to the Rochester <br/>
<a id="pl.5.23"></a><var>5.23</var>Community and Technical College Campus, <br/>
<a id="pl.5.24"></a><var>5.24</var>supplying steam heat and cooling from a <br/>
<a id="pl.5.25"></a><var>5.25</var>renewable energy source. This appropriation <br/>
<a id="pl.5.26"></a><var>5.26</var>is not available until the commissioner has <br/>
<a id="pl.5.27"></a><var>5.27</var>determined that at least an equal amount has <br/>
<a id="pl.5.28"></a><var>5.28</var>been committed from Olmsted County.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.5.29"></a><var>5.29</var>    Sec. 5. <b>BOND SALE AUTHORIZATION.</b><br/>
<a id="pl.5.30"></a><var>5.30</var>    To provide the money appropriated in this act from the bond proceeds fund, the <br/>
<a id="pl.5.31"></a><var>5.31</var>commissioner of finance shall sell and issue bonds of the state in an amount up to <br/>
<a id="pl.5.32"></a><var>5.32</var>$18,500,000 in the manner, upon the terms, and with the effect prescribed by Minnesota <br/>
<a id="pl.5.33"></a><var>5.33</var>Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, <br/>
<a id="pl.5.34"></a><var>5.34</var>sections 4 to 7.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.6.1"></a><var>6.1</var>    Sec. 6. Minnesota Statutes 2006, section 16B.325, is amended to read:<br/>
<a id="pl.6.2"></a><var>6.2</var><b>16B.325 SUSTAINABLE BUILDING GUIDELINES.</b><br/>
<a id="pl.6.3"></a><var>6.3</var>    Subdivision 1. <b>Development of sustainable building guidelines.</b> The Department <br/>
<a id="pl.6.4"></a><var>6.4</var>of Administration and the Department of Commerce, with the assistance of other agencies, <br/>
<a id="pl.6.5"></a><var>6.5</var>shall develop sustainable building design guidelines for all new state buildings by January <br/>
<a id="pl.6.6"></a><var>6.6</var>15, 2003, and for all major renovations of state buildings by February 1, 2009. The <br/>
<a id="pl.6.7"></a><var>6.7</var>primary objectives of these guidelines are to ensure that all new state buildings, and <br/>
<a id="pl.6.8"></a><var>6.8</var>major renovations of state buildings, initially exceed existing the state energy code, as <br/>
<a id="pl.6.9"></a><var>6.9</var>established in Minnesota Rules, chapter 7676, by at least 30 percent. <br/>
<a id="pl.6.10"></a><var>6.10</var>    Subd. 2. <b>Lowest possible cost; energy conservation.</b> The guidelines must focus <br/>
<a id="pl.6.11"></a><var>6.11</var>on achieving the lowest possible lifetime cost for new buildings and major renovations, <br/>
<a id="pl.6.12"></a><var>6.12</var>and allow for changes in the guidelines that encourage continual energy conservation <br/>
<a id="pl.6.13"></a><var>6.13</var>improvements in new buildings. and major renovations. The guidelines must define <br/>
<a id="pl.6.14"></a><var>6.14</var>"major renovations" for purposes of this section. The definition may not allow "major <br/>
<a id="pl.6.15"></a><var>6.15</var>renovations" to encompass less than 10,000 square feet or to encompass less than the <br/>
<a id="pl.6.16"></a><var>6.16</var>complete replacement of the mechanical, ventilation, or cooling system of the building or <br/>
<a id="pl.6.17"></a><var>6.17</var>a section of the building. The design guidelines must establish sustainability guidelines <br/>
<a id="pl.6.18"></a><var>6.18</var>that include air quality and lighting standards and that create and maintain a healthy <br/>
<a id="pl.6.19"></a><var>6.19</var>environment and facilitate productivity improvements; specify ways to reduce material <br/>
<a id="pl.6.20"></a><var>6.20</var>costs; and must consider the long-term operating costs of the building, including the use of <br/>
<a id="pl.6.21"></a><var>6.21</var>renewable energy sources and distributed electric energy generation that uses a renewable <br/>
<a id="pl.6.22"></a><var>6.22</var>source or natural gas or a fuel that is as clean or cleaner than natural gas. <br/>
<a id="pl.6.23"></a><var>6.23</var>    Subd. 3. <b>Development of guidelines; applicability.</b> In developing the guidelines, <br/>
<a id="pl.6.24"></a><var>6.24</var>the departments shall use an open process, including providing the opportunity for public <br/>
<a id="pl.6.25"></a><var>6.25</var>comment. The guidelines established under this section are mandatory for all new <br/>
<a id="pl.6.26"></a><var>6.26</var>buildings receiving funding from the bond proceeds fund after January 1, 2004, and for all <br/>
<a id="pl.6.27"></a><var>6.27</var>major renovations receiving funding from the bond proceeds fund after February 1, 2009.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.6.28"></a><var>6.28</var>    Sec. 7. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.6.29"></a><var>6.29</var>    Except as otherwise provided, this act is effective the day following final enactment.<br/>