<a id="pl.1.4"></a><var>1.4</var>investments; removing rulemaking requirement for certain loan and grant <br/>
<a id="pl.1.5"></a><var>1.5</var>programs; establishing microenergy loan program; authorizing issuance of <br/>
<a id="pl.1.6"></a><var>1.6</var>state revenue bonds; modifying provision allowing guaranteed energy savings <br/>
<a id="pl.1.7"></a><var>1.7</var>contracts; requiring a report; appropriating money;amending Minnesota Statutes <br/>
<a id="pl.1.8"></a><var>1.8</var>2006, section 216C.09; Minnesota Statutes 2007 Supplement, section 471.345, <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivision 13; proposing coding for new law in Minnesota Statutes, chapters <br/>
<a id="pl.1.10"></a><var>1.10</var>16B; 216C; repealing Laws 2007, chapter 57, article 2, section 30.<br/>
<a id="pl.1.11"></a><var>1.11</var>May 12, 2008<br/>
<a id="pl.1.12"></a><var>1.12</var>The Honorable James P. Metzen<br/>
<a id="pl.1.13"></a><var>1.13</var>President of the Senate<br/>
<a id="pl.1.14"></a><var>1.14</var>The Honorable Margaret Anderson Kelliher<br/>
<a id="pl.1.15"></a><var>1.15</var>Speaker of the House of Representatives<br/>
<a id="pl.1.16"></a><var>1.16</var>We, the undersigned conferees for S.F. No. 3096 report that we have agreed upon <br/>
<a id="pl.1.17"></a><var>1.17</var>the items in dispute and recommend as follows:<br/>
<a id="pl.1.18"></a><var>1.18</var>That the House recede from its amendments and that S.F. No. 3096 be further <br/>
<a id="pl.1.19"></a><var>1.19</var>amended as follows:<br/>
<a id="pl.1.20"></a><var>1.20</var>Delete everything after the enacting clause and insert:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.21"></a><var>1.21</var>    "Section 1. <b>[16B.321] DEFINITIONS.</b><br/>
<a id="pl.1.22"></a><var>1.22</var>    Subdivision 1. <b>Scope.</b> For the purpose of this section and section 16B.322, the terms <br/>
<a id="pl.1.23"></a><var>1.23</var>defined in this section have the meanings given them.<br/>
<a id="pl.1.24"></a><var>1.24</var>    Subd. 2. <b>Energy improvement project.</b> "Energy improvement project" means:<br/>
<a id="pl.1.25"></a><var>1.25</var>    (1) a project to improve energy efficiency in a building or facility, including the <br/>
<a id="pl.1.26"></a><var>1.26</var>design, acquisition, installation, construction, and commissioning of equipment or <br/>
<a id="pl.1.27"></a><var>1.27</var>improvements to a building or facility owned or operated by a state agency, and training <br/>
<a id="pl.1.28"></a><var>1.28</var>of building or facility staff necessary to properly operate and maintain the equipment or <br/>
<a id="pl.1.29"></a><var>1.29</var>improvements; or<br/>
<a id="pl.2.1"></a><var>2.1</var>    (2) a project to design, acquire, install, construct, and commission equipment or <br/>
<a id="pl.2.2"></a><var>2.2</var>products to utilize solar, wind, geothermal, biomass, or other alternative energy sources in <br/>
<a id="pl.2.3"></a><var>2.3</var>heating, cooling, or providing electricity for a building or facility owned or operated by a <br/>
<a id="pl.2.4"></a><var>2.4</var>state agency and training of building or facility staff necessary to properly operate and <br/>
<a id="pl.2.5"></a><var>2.5</var>maintain the equipment or improvements.<br/>
<a id="pl.2.6"></a><var>2.6</var>    Subd. 3. <b>Energy project study.</b> "Energy project study" means a technical and <br/>
<a id="pl.2.7"></a><var>2.7</var>financial study of one or more energy improvement projects, including:<br/>
<a id="pl.2.8"></a><var>2.8</var>    (1) an analysis of historical energy consumption and cost data;<br/>
<a id="pl.2.9"></a><var>2.9</var>    (2) a description of existing equipment, structural elements, operating characteristics, <br/>
<a id="pl.2.10"></a><var>2.10</var>and other conditions affecting energy use;<br/>
<a id="pl.2.11"></a><var>2.11</var>    (3) a description of the proposed energy improvement projects;<br/>
<a id="pl.2.12"></a><var>2.12</var>    (4) a detailed budget for the proposed project; and<br/>
<a id="pl.2.13"></a><var>2.13</var>    (5) calculations sufficient to demonstrate the expected energy and operational cost <br/>
<a id="pl.2.14"></a><var>2.14</var>savings and reduction in fossil-fuel use.<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subd. 4. <b>Financing agreement.</b> "Financing agreement" means a tax-exempt <br/>
<a id="pl.2.16"></a><var>2.16</var>lease-purchase agreement entered into by the commissioner of administration and a <br/>
<a id="pl.2.17"></a><var>2.17</var>financial institution under a standard project financing agreement offered under section <br/>
<a id="pl.2.18"></a><var>2.18</var>16B.322, subdivision 4.<br/>
<a id="pl.2.19"></a><var>2.19</var>    Subd. 5. <b>State agency.</b> "State agency" means any office, board, commission, <br/>
<a id="pl.2.20"></a><var>2.20</var>authority, department, or other agency of the executive branch of state government.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.21"></a><var>2.21</var>    Sec. 2. <b>[16B.322] ENERGY IMPROVEMENT FINANCING PROGRAM FOR </b><br/>
<a id="pl.2.22"></a><var>2.22</var><b>STATE GOVERNMENT.</b><br/>
<a id="pl.2.23"></a><var>2.23</var>    Subdivision 1. <b>Commissioner's authority and duties; state agency authority.</b><br/>
<a id="pl.2.24"></a><var>2.24</var>    The commissioner shall administer the energy improvement financing program created <br/>
<a id="pl.2.25"></a><var>2.25</var>by this section. A state agency may enter into contracts for the purposes of this section <br/>
<a id="pl.2.26"></a><var>2.26</var>with the commissioner and participating financial institutions. All technical services and <br/>
<a id="pl.2.27"></a><var>2.27</var>construction contracts shall be executed through the appropriate procurement procedure in <br/>
<a id="pl.2.28"></a><var>2.28</var>chapters 16B, 16C, and other applicable law.<br/>
<a id="pl.2.29"></a><var>2.29</var>    Subd. 2. <b>Program eligibility; voluntary program participation; targeted </b><br/>
<a id="pl.2.30"></a><var>2.30</var><b>technical services.</b> A state agency may elect to participate in the program. The <br/>
<a id="pl.2.31"></a><var>2.31</var>commissioner may prioritize and target technical services offered under subdivision 3 to <br/>
<a id="pl.2.32"></a><var>2.32</var>state agencies with state buildings or facilities that the commissioner determines offer the <br/>
<a id="pl.2.33"></a><var>2.33</var>greatest potential to improve energy efficiency or reduce use of fossil-fuel energy.<br/>
<a id="pl.3.1"></a><var>3.1</var>    Subd. 3. <b>Targeted technical services.</b> The commissioner may require full or partial <br/>
<a id="pl.3.2"></a><var>3.2</var>reimbursement of costs for technical services provided to a state agency, subject to terms <br/>
<a id="pl.3.3"></a><var>3.3</var>and conditions specified and agreed to by contract prior to the delivery of technical <br/>
<a id="pl.3.4"></a><var>3.4</var>services.<br/>
<a id="pl.3.5"></a><var>3.5</var>    Subd. 4. <b>Financing agreement.</b> The commissioner shall solicit proposals from <br/>
<a id="pl.3.6"></a><var>3.6</var>private financial institutions and may enter into a financing agreement with one or more <br/>
<a id="pl.3.7"></a><var>3.7</var>financial institutions. The term of the financing agreement shall not exceed 15 years <br/>
<a id="pl.3.8"></a><var>3.8</var>from the date of final completion of the energy improvement project. The financing <br/>
<a id="pl.3.9"></a><var>3.9</var>agreement is assignable to the state agency operating or managing the state building or <br/>
<a id="pl.3.10"></a><var>3.10</var>facility improved by the energy improvement project. The proceeds from the financing <br/>
<a id="pl.3.11"></a><var>3.11</var>agreement are appropriated to the commissioner and may be used for the purposes of <br/>
<a id="pl.3.12"></a><var>3.12</var>this section and are available until spent.<br/>
<a id="pl.3.13"></a><var>3.13</var>    Subd. 5. <b>Qualifying energy improvement projects.</b> The commissioner may <br/>
<a id="pl.3.14"></a><var>3.14</var>approve an energy improvement project and enter into a financing agreement if the <br/>
<a id="pl.3.15"></a><var>3.15</var>commissioner determines that:<br/>
<a id="pl.3.16"></a><var>3.16</var>    (1) the project and financing agreement have been approved by the governing body <br/>
<a id="pl.3.17"></a><var>3.17</var>or head of the state agency that operates or manages the state building or facility to be <br/>
<a id="pl.3.18"></a><var>3.18</var>improved;<br/>
<a id="pl.3.19"></a><var>3.19</var>    (2) the project is technically and economically feasible;<br/>
<a id="pl.3.20"></a><var>3.20</var>    (3) the state agency that operates or manages the state building or facility has made <br/>
<a id="pl.3.21"></a><var>3.21</var>adequate provision for the operation and maintenance of the project;<br/>
<a id="pl.3.22"></a><var>3.22</var>    (4) if an energy efficiency improvement, the project is calculated to result in a <br/>
<a id="pl.3.23"></a><var>3.23</var>positive cash flow in each year the financing agreement is in effect; <br/>
<a id="pl.3.24"></a><var>3.24</var>    (5) the project proposer has fully explored the use of conservation investment plan <br/>
<a id="pl.3.25"></a><var>3.25</var>opportunities under section 216B.241 with the utilities providing gas and electric service <br/>
<a id="pl.3.26"></a><var>3.26</var>to the energy improvement project;<br/>
<a id="pl.3.27"></a><var>3.27</var>    (6) if a renewable energy improvement, the project is calculated to reduce use of <br/>
<a id="pl.3.28"></a><var>3.28</var>fossil-fuel energy; and<br/>
<a id="pl.3.29"></a><var>3.29</var>    (7) if a geothermal energy improvement, the project is calculated to produce savings <br/>
<a id="pl.3.30"></a><var>3.30</var>in terms of nongeothermal energy and costs.<br/>
<a id="pl.3.31"></a><var>3.31</var>    For the purpose of clause (6), "renewable energy" is energy produced by an eligible <br/>
<a id="pl.3.32"></a><var>3.32</var>energy technology as defined in section 216B.1691, subdivision 1, paragraph (a), clause <br/>
<a id="pl.3.33"></a><var>3.33</var>(1).<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 6. <b>Program costs.</b> Program costs incurred by the commissioner or a state <br/>
<a id="pl.4.2"></a><var>4.2</var>agency that are not reimbursed or paid directly under a financing agreement may be paid <br/>
<a id="pl.4.3"></a><var>4.3</var>with money made available to the commissioner under section 216C.43, subdivision 10.<br/>
<a id="pl.4.4"></a><var>4.4</var>    Subd. 7. <b>Conservation investment plan savings goals.</b> A utility or association <br/>
<a id="pl.4.5"></a><var>4.5</var>may count toward its energy savings goals under section 216B.241, subdivision 1c, the <br/>
<a id="pl.4.6"></a><var>4.6</var>energy savings resulting from its investment in an energy improvement project.<br/>
<a id="pl.4.7"></a><var>4.7</var>    Subd. 8. <b>Report.</b> Beginning January 15, 2009, and each year thereafter, the <br/>
<a id="pl.4.8"></a><var>4.8</var>commissioner of administration shall submit to the chairs and ranking minority members <br/>
<a id="pl.4.9"></a><var>4.9</var>of the senate and house committees on energy finance a report containing, at a minimum, <br/>
<a id="pl.4.10"></a><var>4.10</var>the following information regarding projects implemented under this section:<br/>
<a id="pl.4.11"></a><var>4.11</var>    (1) the total number of projects;<br/>
<a id="pl.4.12"></a><var>4.12</var>    (2) the amount of calculated and, if available, actual energy savings for each project;<br/>
<a id="pl.4.13"></a><var>4.13</var>    (3) the cost of each project; and<br/>
<a id="pl.4.14"></a><var>4.14</var>    (4) the total amount paid for technical services provided under subdivision 3 for <br/>
<a id="pl.4.15"></a><var>4.15</var>each project.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.4.16"></a><var>4.16</var>    Sec. 3. <b>[116J.437] COORDINATING ECONOMIC DEVELOPMENT AND </b><br/>
<a id="pl.4.17"></a><var>4.17</var><b>ENVIRONMENTAL POLICY.</b><br/>
<a id="pl.4.18"></a><var>4.18</var>    Subdivision 1. <b>Definitions.</b> For the purpose of this section, "green economy" means <br/>
<a id="pl.4.19"></a><var>4.19</var>products, processes, methods, technologies, or services intended to do one or more of <br/>
<a id="pl.4.20"></a><var>4.20</var>the following:<br/>
<a id="pl.4.21"></a><var>4.21</var>    (1) increase the use of energy from renewable sources, including through achieving <br/>
<a id="pl.4.22"></a><var>4.22</var>the renewable energy standard established in section 216B.1691;<br/>
<a id="pl.4.23"></a><var>4.23</var>    (2) achieve the statewide energy savings goal established in section 216B.2401, <br/>
<a id="pl.4.24"></a><var>4.24</var>including energy savings achieved by the conservation investment program under section <br/>
<a id="pl.4.25"></a><var>4.25</var>216B.241;<br/>
<a id="pl.4.26"></a><var>4.26</var>    (3) achieve the greenhouse gas emission reduction goals of section 216H.02, <br/>
<a id="pl.4.27"></a><var>4.27</var>subdivision 1, including through reduction of greenhouse gas emissions, as defined in <br/>
<a id="pl.4.28"></a><var>4.28</var>section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, <br/>
<a id="pl.4.29"></a><var>4.29</var>but not limited to, carbon capture, storage, or sequestration;<br/>
<a id="pl.4.30"></a><var>4.30</var>    (4) monitor, protect, restore, and preserve the quality of surface waters, including <br/>
<a id="pl.4.31"></a><var>4.31</var>actions to further the purposes of the Clean Water Legacy Act as provided in section <br/>
<a id="pl.4.32"></a><var>4.32</var>114D.10, subdivision 1; or<br/>
<a id="pl.4.33"></a><var>4.33</var>    (5) expand the use of biofuels, including by expanding the feasibility or reducing the <br/>
<a id="pl.4.34"></a><var>4.34</var>cost of producing biofuels or the types of equipment, machinery, and vehicles that can <br/>
<a id="pl.5.1"></a><var>5.1</var>use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections <br/>
<a id="pl.5.2"></a><var>5.2</var>41A.10, subdivision 2, and 41A.11.<br/>
<a id="pl.5.3"></a><var>5.3</var>For the purpose of clause (3), "green economy" includes strategies that reduce carbon <br/>
<a id="pl.5.4"></a><var>5.4</var>emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass <br/>
<a id="pl.5.5"></a><var>5.5</var>transit or otherwise reducing commuting for employees.<br/>
<a id="pl.5.6"></a><var>5.6</var>    Subd. 2. <b>Coordinating economic development and environmental policy.</b> The <br/>
<a id="pl.5.7"></a><var>5.7</var>commissioner and the Jobs Skills Partnership Board shall cooperate to promote job <br/>
<a id="pl.5.8"></a><var>5.8</var>training that complements green economy business development.<br/>
<a id="pl.5.9"></a><var>5.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.5.10"></a><var>5.10</var>    Sec. 4. Minnesota Statutes 2007 Supplement, section 116J.575, subdivision 1a, is <br/>
<a id="pl.5.11"></a><var>5.11</var>amended to read:<br/>
<a id="pl.5.12"></a><var>5.12</var>    Subd. 1a. <b>Priorities.</b> (a) If applications for grants exceed the available <br/>
<a id="pl.5.13"></a><var>5.13</var>appropriations, grants shall be made for sites that, in the commissioner's judgment, provide <br/>
<a id="pl.5.14"></a><var>5.14</var>the highest return in public benefits for the public costs incurred. "Public benefits" include <br/>
<a id="pl.5.15"></a><var>5.15</var>job creation, bioscience development, environmental benefits to the state and region, <br/>
<a id="pl.5.16"></a><var>5.16</var>efficient use of public transportation, efficient use of existing infrastructure, provision of <br/>
<a id="pl.5.17"></a><var>5.17</var>affordable housing, multiuse development that constitutes community rebuilding rather <br/>
<a id="pl.5.18"></a><var>5.18</var>than single-use development, crime reduction, blight reduction, community stabilization, <br/>
<a id="pl.5.19"></a><var>5.19</var>and property tax base maintenance or improvement. In making this judgment, the <br/>
<a id="pl.5.20"></a><var>5.20</var>commissioner shall give priority to redevelopment projects with one or more of the <br/>
<a id="pl.5.21"></a><var>5.21</var>following characteristics:<br/>
<a id="pl.5.22"></a><var>5.22</var>    (1) the need for redevelopment in conjunction with contamination remediation needs;<br/>
<a id="pl.5.23"></a><var>5.23</var>    (2) the redevelopment project meets current tax increment financing requirements <br/>
<a id="pl.5.24"></a><var>5.24</var>for a redevelopment district and tax increments will contribute to the project;<br/>
<a id="pl.5.25"></a><var>5.25</var>    (3) the redevelopment potential within the municipality;<br/>
<a id="pl.5.26"></a><var>5.26</var>    (4) proximity to public transit if located in the metropolitan area; <br/>
<a id="pl.5.27"></a><var>5.27</var>    (5) redevelopment costs related to expansion of a bioscience business in Minnesota; <br/>
<a id="pl.5.28"></a><var>5.28</var>and<br/>
<a id="pl.5.29"></a><var>5.29</var>    (6) multijurisdictional projects that take into account the need for affordable housing, <br/>
<a id="pl.5.30"></a><var>5.30</var>transportation, and environmental impact; or<br/>
<a id="pl.5.31"></a><var>5.31</var>    (7) the project advances or promotes the green economy as defined in section <br/>
<a id="pl.5.32"></a><var>5.32</var>116J.437.<br/>
<a id="pl.5.33"></a><var>5.33</var>    (b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the <br/>
<a id="pl.5.34"></a><var>5.34</var>commissioner may weigh each factor, depending upon the facts and circumstances, as <br/>
<a id="pl.5.35"></a><var>5.35</var>the commissioner considers appropriate. The commissioner may consider other factors <br/>
<a id="pl.6.1"></a><var>6.1</var>that affect the net return of public benefits for completion of the redevelopment plan. The <br/>
<a id="pl.6.2"></a><var>6.2</var>commissioner, notwithstanding the listing of priorities and the goal of maximizing the <br/>
<a id="pl.6.3"></a><var>6.3</var>return of public benefits, shall make grants that distribute available money to sites both <br/>
<a id="pl.6.4"></a><var>6.4</var>within and outside of the metropolitan area. Unless sufficient applications are not received <br/>
<a id="pl.6.5"></a><var>6.5</var>for qualifying sites outside of the metropolitan area, at least 50 percent of the money <br/>
<a id="pl.6.6"></a><var>6.6</var>provided as grants must be made for sites located outside of the metropolitan area.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.6.7"></a><var>6.7</var>    Sec. 5. Minnesota Statutes 2006, section 116J.8731, subdivision 4, is amended to read:<br/>
<a id="pl.6.8"></a><var>6.8</var>    Subd. 4. <b>Eligible projects.</b> Assistance must be evaluated on the existence of the <br/>
<a id="pl.6.9"></a><var>6.9</var>following conditions:<br/>
<a id="pl.6.10"></a><var>6.10</var>    (1) creation of new jobs, retention of existing jobs, or improvements in the quality of <br/>
<a id="pl.6.11"></a><var>6.11</var>existing jobs as measured by the wages, skills, or education associated with those jobs;<br/>
<a id="pl.6.12"></a><var>6.12</var>    (2) increase in the tax base;<br/>
<a id="pl.6.13"></a><var>6.13</var>    (3) the project can demonstrate that investment of public dollars induces private <br/>
<a id="pl.6.14"></a><var>6.14</var>funds;<br/>
<a id="pl.6.15"></a><var>6.15</var>    (4) the project can demonstrate an excessive public infrastructure or improvement <br/>
<a id="pl.6.16"></a><var>6.16</var>cost beyond the means of the affected community and private participants in the project;<br/>
<a id="pl.6.17"></a><var>6.17</var>    (5) the project provides higher wage levels to the community or will add value to <br/>
<a id="pl.6.18"></a><var>6.18</var>current workforce skills;<br/>
<a id="pl.6.19"></a><var>6.19</var>    (6) whether assistance is necessary to retain existing business; and<br/>
<a id="pl.6.20"></a><var>6.20</var>    (7) whether assistance is necessary to attract out-of-state business; and<br/>
<a id="pl.6.21"></a><var>6.21</var>    (8) the project promotes or advances the green economy as defined in section <br/>
<a id="pl.6.22"></a><var>6.22</var>116J.437.<br/>
<a id="pl.6.23"></a><var>6.23</var>    A grant or loan cannot be made based solely on a finding that the conditions in <br/>
<a id="pl.6.24"></a><var>6.24</var>clause (6) or (7) exist. A finding must be made that a condition in clause (1), (2), (3), <br/>
<a id="pl.6.25"></a><var>6.25</var>(4), or (5) also exists.<br/>
<a id="pl.6.26"></a><var>6.26</var>    Applications recommended for funding shall be submitted to the commissioner.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.6.27"></a><var>6.27</var>    Sec. 6. Minnesota Statutes 2006, section 216C.09, is amended to read:<br/>
<a id="pl.6.28"></a><var>6.28</var><b>216C.09 COMMISSIONER DUTIES.</b><br/>
<a id="pl.6.29"></a><var>6.29</var>    (a) The commissioner shall:<br/>
<a id="pl.6.30"></a><var>6.30</var>    (1) manage the department as the central repository within the state government for <br/>
<a id="pl.6.31"></a><var>6.31</var>the collection of data on energy;<br/>
<a id="pl.6.32"></a><var>6.32</var>    (2) prepare and adopt an emergency allocation plan specifying actions to be taken <br/>
<a id="pl.6.33"></a><var>6.33</var>in the event of an impending serious shortage of energy, or a threat to public health, <br/>
<a id="pl.6.34"></a><var>6.34</var>safety, or welfare;<br/>
<a id="pl.7.1"></a><var>7.1</var>    (3) undertake a continuing assessment of trends in the consumption of all forms of <br/>
<a id="pl.7.2"></a><var>7.2</var>energy and analyze the social, economic, and environmental consequences of these trends;<br/>
<a id="pl.7.3"></a><var>7.3</var>    (4) carry out energy conservation measures as specified by the legislature and <br/>
<a id="pl.7.4"></a><var>7.4</var>recommend to the governor and the legislature additional energy policies and conservation <br/>
<a id="pl.7.5"></a><var>7.5</var>measures as required to meet the objectives of sections 
         <statute_ref>216C.05</statute_ref> to 
         <statute_ref>216C.30</statute_ref>;<br/>
<a id="pl.7.6"></a><var>7.6</var>    (5) collect and analyze data relating to present and future demands and resources <br/>
<a id="pl.7.7"></a><var>7.7</var>for all sources of energy;<br/>
<a id="pl.7.8"></a><var>7.8</var>    (6) evaluate policies governing the establishment of rates and prices for energy <br/>
<a id="pl.7.9"></a><var>7.9</var>as related to energy conservation, and other goals and policies of sections 
         <statute_ref>216C.05</statute_ref> to <br/>
<statute_ref><a id="pl.7.10"></a><var>7.10</var>216C.30
         </statute_ref>, and make recommendations for changes in energy pricing policies and rate <br/>
<a id="pl.7.11"></a><var>7.11</var>schedules;<br/>
<a id="pl.7.12"></a><var>7.12</var>    (7) study the impact and relationship of the state energy policies to international, <br/>
<a id="pl.7.13"></a><var>7.13</var>national, and regional energy policies;<br/>
<a id="pl.7.14"></a><var>7.14</var>    (8) design and implement a state program for the conservation of energy; this <br/>
<a id="pl.7.15"></a><var>7.15</var>program shall include but not be limited to, general commercial, industrial, and residential, <br/>
<a id="pl.7.16"></a><var>7.16</var>and transportation areas; such program shall also provide for the evaluation of energy <br/>
<a id="pl.7.17"></a><var>7.17</var>systems as they relate to lighting, heating, refrigeration, air conditioning, building design <br/>
<a id="pl.7.18"></a><var>7.18</var>and operation, and appliance manufacturing and operation;<br/>
<a id="pl.7.19"></a><var>7.19</var>    (9) inform and educate the public about the sources and uses of energy and the <br/>
<a id="pl.7.20"></a><var>7.20</var>ways in which persons can conserve energy;<br/>
<a id="pl.7.21"></a><var>7.21</var>    (10) dispense funds made available for the purpose of research studies and projects <br/>
<a id="pl.7.22"></a><var>7.22</var>of professional and civic orientation, which are related to either energy conservation, <br/>
<a id="pl.7.23"></a><var>7.23</var>resource recovery, or the development of alternative energy technologies which conserve <br/>
<a id="pl.7.24"></a><var>7.24</var>nonrenewable energy resources while creating minimum environmental impact;<br/>
<a id="pl.7.25"></a><var>7.25</var>    (11) charge other governmental departments and agencies involved in energy-related <br/>
<a id="pl.7.26"></a><var>7.26</var>activities with specific information gathering goals and require that those goals be met;<br/>
<a id="pl.7.27"></a><var>7.27</var>    (12) design a comprehensive program for the development of indigenous energy <br/>
<a id="pl.7.28"></a><var>7.28</var>resources. The program shall include, but not be limited to, providing technical, <br/>
<a id="pl.7.29"></a><var>7.29</var>informational, educational, and financial services and materials to persons, businesses, <br/>
<a id="pl.7.30"></a><var>7.30</var>municipalities, and organizations involved in the development of solar, wind, hydropower, <br/>
<a id="pl.7.31"></a><var>7.31</var>peat, fiber fuels, biomass, and other alternative energy resources. The program shall be <br/>
<a id="pl.7.32"></a><var>7.32</var>evaluated by the alternative energy technical activity; and<br/>
<a id="pl.7.33"></a><var>7.33</var>    (13) dispense loans, grants, or other financial aid from money received from <br/>
<a id="pl.7.34"></a><var>7.34</var>litigation or settlement of alleged violations of federal petroleum-pricing regulations <br/>
<a id="pl.7.35"></a><var>7.35</var>made available to the department for that purpose. The commissioner shall adopt rules <br/>
<a id="pl.7.36"></a><var>7.36</var>under chapter 14 for this purpose.<br/>
<a id="pl.8.1"></a><var>8.1</var>    (b) Further, the commissioner may participate fully in hearings before the <br/>
<a id="pl.8.2"></a><var>8.2</var>Public Utilities Commission on matters pertaining to rate design, cost allocation, <br/>
<a id="pl.8.3"></a><var>8.3</var>efficient resource utilization, utility conservation investments, small power production, <br/>
<a id="pl.8.4"></a><var>8.4</var>cogeneration, and other rate issues. The commissioner shall support the policies stated in <br/>
<a id="pl.8.5"></a><var>8.5</var>section 
         <statute_ref>216C.05</statute_ref> and shall prepare and defend testimony proposed to encourage energy <br/>
<a id="pl.8.6"></a><var>8.6</var>conservation improvements as defined in section 
         <statute_ref>216B.241</statute_ref>.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.8.7"></a><var>8.7</var>    Sec. 7. <b>[216C.145] MICROENERGY LOAN PROGRAM.</b><br/>
<a id="pl.8.8"></a><var>8.8</var>    Subdivision 1. <b>Definitions.</b> (a) The definitions in this subdivision apply to this <br/>
<a id="pl.8.9"></a><var>8.9</var>section.<br/>
<a id="pl.8.10"></a><var>8.10</var>    (b) "Small-scale renewable energy" projects include solar thermal water heating, <br/>
<a id="pl.8.11"></a><var>8.11</var>solar electric or photovoltaic equipment, small wind energy conversion systems of less <br/>
<a id="pl.8.12"></a><var>8.12</var>than 250 kW, anaerobic digester gas systems, microhydro systems up to 100 kW, and <br/>
<a id="pl.8.13"></a><var>8.13</var>heating and cooling applications using geothermal energy. <br/>
<a id="pl.8.14"></a><var>8.14</var>    (c) "Unit of local government" means any home rule charter or statutory city, county, <br/>
<a id="pl.8.15"></a><var>8.15</var>commission, district, authority, or other political subdivision or instrumentality of this <br/>
<a id="pl.8.16"></a><var>8.16</var>state, including a sanitary district, park district, the Metropolitan Council, a port authority, <br/>
<a id="pl.8.17"></a><var>8.17</var>an economic development authority, or a housing and redevelopment authority.<br/>
<a id="pl.8.18"></a><var>8.18</var>    Subd. 2. <b>Program established.</b> The commissioner of commerce shall develop, <br/>
<a id="pl.8.19"></a><var>8.19</var>implement, and administer a microenergy loan program under this section.<br/>
<a id="pl.8.20"></a><var>8.20</var>    Subd. 3. <b>Loan purposes.</b> (a) The commissioner may issue low-interest, long-term <br/>
<a id="pl.8.21"></a><var>8.21</var>loans to units of local government to finance community-owned or publicly owned small <br/>
<a id="pl.8.22"></a><var>8.22</var>scale renewable energy systems or to provide loans or other aids to small businesses to <br/>
<a id="pl.8.23"></a><var>8.23</var>install small-scale renewable energy systems.<br/>
<a id="pl.8.24"></a><var>8.24</var>    (b) The commissioner may participate in loans made by the Housing Finance <br/>
<a id="pl.8.25"></a><var>8.25</var>Agency to residential property owners, private developers, nonprofit organizations, or <br/>
<a id="pl.8.26"></a><var>8.26</var>units of local government under sections 462A.05, subdivisions 14 and 18; and 462A.33 <br/>
<a id="pl.8.27"></a><var>8.27</var>for the construction, purchase, or rehabilitation of residential housing, to facilitate <br/>
<a id="pl.8.28"></a><var>8.28</var>the installation of small-scale renewable energy systems in residential housing and <br/>
<a id="pl.8.29"></a><var>8.29</var>cost-effective energy conservation improvements identified in an energy efficiency audit. <br/>
<a id="pl.8.30"></a><var>8.30</var>The commissioner shall assist the Housing Finance Agency in assessing the technical <br/>
<a id="pl.8.31"></a><var>8.31</var>qualifications of loan applicants.<br/>
<a id="pl.8.32"></a><var>8.32</var>    Subd. 4. <b>Technical standards.</b> The commissioner shall determine technical <br/>
<a id="pl.8.33"></a><var>8.33</var>standards for small-scale renewable energy systems to qualify for loans under this section.<br/>
<a id="pl.8.34"></a><var>8.34</var>    Subd. 5. <b>Loan proposals.</b> (a) At least once a year, the commissioner shall publish in <br/>
<a id="pl.8.35"></a><var>8.35</var>the State Register a request for proposals from units of local government for a loan under <br/>
<a id="pl.9.1"></a><var>9.1</var>this section. Within 45 days after the deadline for receipt of proposals, the commissioner <br/>
<a id="pl.9.2"></a><var>9.2</var>shall select proposals based on the following criteria:<br/>
<a id="pl.9.3"></a><var>9.3</var>    (1) the reliability and cost-effectiveness of the renewable technology to be installed <br/>
<a id="pl.9.4"></a><var>9.4</var>under the proposal;<br/>
<a id="pl.9.5"></a><var>9.5</var>    (2) the extent to which the proposal effectively integrates with the conservation and <br/>
<a id="pl.9.6"></a><var>9.6</var>energy efficiency programs of the energy utilities serving the proposer;<br/>
<a id="pl.9.7"></a><var>9.7</var>    (3) the total life cycle energy use and greenhouse gas emissions reductions per <br/>
<a id="pl.9.8"></a><var>9.8</var>dollar of installed cost;<br/>
<a id="pl.9.9"></a><var>9.9</var>    (4) the diversity of the renewable energy technology installed under the proposal;<br/>
<a id="pl.9.10"></a><var>9.10</var>    (5) the geographic distribution of projects throughout the state;<br/>
<a id="pl.9.11"></a><var>9.11</var>    (6) the percentage of total project cost requested;<br/>
<a id="pl.9.12"></a><var>9.12</var>    (7) the proposed security for payback of the loan; and<br/>
<a id="pl.9.13"></a><var>9.13</var>    (8) other criteria the commissioner may determine to be necessary and appropriate.<br/>
<a id="pl.9.14"></a><var>9.14</var>    Subd. 6. <b>Loan terms.</b> A loan under this section must be issued at the lowest interest <br/>
<a id="pl.9.15"></a><var>9.15</var>rate required to recover principal and interest plus the costs of issuing the loan, and must <br/>
<a id="pl.9.16"></a><var>9.16</var>be for a minimum of 15 years, unless the commissioner determines that a shorter loan <br/>
<a id="pl.9.17"></a><var>9.17</var>period of no less than ten years is necessary and feasible.<br/>
<a id="pl.9.18"></a><var>9.18</var>    Subd. 7. <b>Account.</b> A microenergy loan account is established in the state treasury. <br/>
<a id="pl.9.19"></a><var>9.19</var>Money in the account consists of the proceeds of revenue bonds issued under section <br/>
<a id="pl.9.20"></a><var>9.20</var>216C.146, interest and other earnings on money in the account, money received in <br/>
<a id="pl.9.21"></a><var>9.21</var>repayment of loans from the account, legislative appropriations, and money from any <br/>
<a id="pl.9.22"></a><var>9.22</var>other source credited to the account. <br/>
<a id="pl.9.23"></a><var>9.23</var>    Subd. 8. <b>Appropriation.</b> Money in the account is appropriated to the commissioner <br/>
<a id="pl.9.24"></a><var>9.24</var>of commerce to make microenergy loans under this section and to the commissioner of <br/>
<a id="pl.9.25"></a><var>9.25</var>finance to pay debt service and other costs under section 216C.146. Payment of debt <br/>
<a id="pl.9.26"></a><var>9.26</var>service costs and funding reserves take priority over use of money in the account for <br/>
<a id="pl.9.27"></a><var>9.27</var>any other purpose.<br/>
<a id="pl.9.28"></a><var>9.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.9.29"></a><var>9.29</var>    Sec. 8. <b>[216C.146] MICROENERGY LOAN REVENUE BONDS.</b><br/>
<a id="pl.9.30"></a><var>9.30</var>    Subdivision 1. <b>Bonding authority; definition.</b> (a) The commissioner of finance, if <br/>
<a id="pl.9.31"></a><var>9.31</var>requested by the commissioner of commerce, shall sell and issue state revenue bonds for <br/>
<a id="pl.9.32"></a><var>9.32</var>the following purposes:<br/>
<a id="pl.9.33"></a><var>9.33</var>    (1) to make microenergy loans under section 216C.145;<br/>
<a id="pl.9.34"></a><var>9.34</var>    (2) to pay the costs of issuance, debt service, and bond insurance or other credit <br/>
<a id="pl.9.35"></a><var>9.35</var>enhancements, and to fund reserves; and<br/>
<a id="pl.10.1"></a><var>10.1</var>    (3) to refund bonds issued under this section.<br/>
<a id="pl.10.2"></a><var>10.2</var>    (b) The aggregate principal amount of bonds for the purposes of paragraph (a), <br/>
<a id="pl.10.3"></a><var>10.3</var>clause (1), that may be outstanding at any time may not exceed $20,000,000; the principal <br/>
<a id="pl.10.4"></a><var>10.4</var>amount of bonds that may be issued for the purposes of paragraph (a), clauses (2) and <br/>
<a id="pl.10.5"></a><var>10.5</var>(3), is not limited.<br/>
<a id="pl.10.6"></a><var>10.6</var>    (c) For the purpose of this section, "commissioner" means the commissioner of <br/>
<a id="pl.10.7"></a><var>10.7</var>finance.<br/>
<a id="pl.10.8"></a><var>10.8</var>    Subd. 2. <b>Procedure.</b> The commissioner may sell and issue the bonds on the terms <br/>
<a id="pl.10.9"></a><var>10.9</var>and conditions the commissioner determines to be in the best interests of the state. The <br/>
<a id="pl.10.10"></a><var>10.10</var>bonds may be sold at public or private sale. The commissioner may enter into any <br/>
<a id="pl.10.11"></a><var>10.11</var>agreements or pledges the commissioner determines necessary or useful to sell the bonds <br/>
<a id="pl.10.12"></a><var>10.12</var>that are not inconsistent with section 216C.145. Sections 16A.672 to 16A.675 apply to <br/>
<a id="pl.10.13"></a><var>10.13</var>the bonds. The proceeds of the bonds issued under this section must be credited to the <br/>
<a id="pl.10.14"></a><var>10.14</var>microenergy loan account created under section 216C.145.<br/>
<a id="pl.10.15"></a><var>10.15</var>    Subd. 3. <b>Revenue sources.</b> The debt service on the bonds is payable only from the <br/>
<a id="pl.10.16"></a><var>10.16</var>following sources:<br/>
<a id="pl.10.17"></a><var>10.17</var>    (1) revenue credited to the microenergy loan account from the sources identified in <br/>
<a id="pl.10.18"></a><var>10.18</var>section 216C.145 or from any other source; and<br/>
<a id="pl.10.19"></a><var>10.19</var>    (2) other revenues pledged to the payment of the bonds.<br/>
<a id="pl.10.20"></a><var>10.20</var>    Subd. 4. <b>Refunding bonds.</b> The commissioner may issue bonds to refund <br/>
<a id="pl.10.21"></a><var>10.21</var>outstanding bonds issued under subdivision 1, including the payment of any redemption <br/>
<a id="pl.10.22"></a><var>10.22</var>premiums on the bonds and any interest accrued or to accrue to the first redemption date <br/>
<a id="pl.10.23"></a><var>10.23</var>after delivery of the refunding bonds. The proceeds of the refunding bonds may, at the <br/>
<a id="pl.10.24"></a><var>10.24</var>discretion of the commissioner, be applied to the purchases or payment at maturity of the <br/>
<a id="pl.10.25"></a><var>10.25</var>bonds to be refunded, or the redemption of the outstanding bonds on the first redemption <br/>
<a id="pl.10.26"></a><var>10.26</var>date after delivery of the refunding bonds and may, until so used, be placed in escrow to <br/>
<a id="pl.10.27"></a><var>10.27</var>be applied to the purchase, retirement, or redemption. Refunding bonds issued under this <br/>
<a id="pl.10.28"></a><var>10.28</var>subdivision must be issued and secured in the manner provided by the commissioner.<br/>
<a id="pl.10.29"></a><var>10.29</var>    Subd. 5. <b>Not a general or moral obligation.</b> Bonds issued under this section are <br/>
<a id="pl.10.30"></a><var>10.30</var>not public debt, and the full faith, credit, and taxing powers of the state are not pledged <br/>
<a id="pl.10.31"></a><var>10.31</var>for their payment. The bonds may not be paid, directly in whole or in part from a tax of <br/>
<a id="pl.10.32"></a><var>10.32</var>statewide application on any class of property, income, transaction, or privilege. Payment <br/>
<a id="pl.10.33"></a><var>10.33</var>of the bonds is limited to the revenues explicitly authorized to be pledged under this <br/>
<a id="pl.10.34"></a><var>10.34</var>section. The state neither makes nor has a moral obligation to pay the bonds if the pledged <br/>
<a id="pl.10.35"></a><var>10.35</var>revenues and other legal security for them is insufficient.<br/>
<a id="pl.11.1"></a><var>11.1</var>    Subd. 6. <b>Trustee.</b> The commissioner may contract with and appoint a trustee for <br/>
<a id="pl.11.2"></a><var>11.2</var>bond holders. The trustee has the powers and authority vested in it by the commissioner <br/>
<a id="pl.11.3"></a><var>11.3</var>under the bond and trust indentures.<br/>
<a id="pl.11.4"></a><var>11.4</var>    Subd. 7. <b>Pledges.</b> A pledge made by the commissioner is valid and binding from <br/>
<a id="pl.11.5"></a><var>11.5</var>the time the pledge is made. The money or property pledged and later received by the <br/>
<a id="pl.11.6"></a><var>11.6</var>commissioner is immediately subject to the lien of the pledge without any physical <br/>
<a id="pl.11.7"></a><var>11.7</var>delivery of the property or money or further act, and the lien of the pledge is valid and <br/>
<a id="pl.11.8"></a><var>11.8</var>binding as against all parties having claims of any kind in tort, contract, or otherwise <br/>
<a id="pl.11.9"></a><var>11.9</var>against the commissioner, whether or not those parties have notice of the lien or pledge. <br/>
<a id="pl.11.10"></a><var>11.10</var>Neither the order nor any other instrument by which a pledge is created need be recorded.<br/>
<a id="pl.11.11"></a><var>11.11</var>    Subd. 8. <b>Bonds; purchase and cancellation.</b> The commissioner, subject to <br/>
<a id="pl.11.12"></a><var>11.12</var>agreements with bondholders that may then exist, may, out of any money available for the <br/>
<a id="pl.11.13"></a><var>11.13</var>purpose, purchase bonds of the commissioner at a price not exceeding (1) if the bonds are <br/>
<a id="pl.11.14"></a><var>11.14</var>then redeemable, the redemption price then applicable plus accrued interest to the next <br/>
<a id="pl.11.15"></a><var>11.15</var>interest payment date thereon, or (2) if the bonds are not redeemable, the redemption price <br/>
<a id="pl.11.16"></a><var>11.16</var>applicable on the first date after the purchase upon which the bonds become subject to <br/>
<a id="pl.11.17"></a><var>11.17</var>redemption plus accrued interest to that date.<br/>
<a id="pl.11.18"></a><var>11.18</var>    Subd. 9. <b>State pledge against impairment of contracts.</b> The state pledges and <br/>
<a id="pl.11.19"></a><var>11.19</var>agrees with the holders of any bonds that the state will not limit or alter the rights vested in <br/>
<a id="pl.11.20"></a><var>11.20</var>the commissioner to fulfill the terms of any agreements made with the bondholders, or <br/>
<a id="pl.11.21"></a><var>11.21</var>in any way impair the rights and remedies of the holders until the bonds, together with <br/>
<a id="pl.11.22"></a><var>11.22</var>interest on them, with interest on any unpaid installments of interest, and all costs and <br/>
<a id="pl.11.23"></a><var>11.23</var>expenses in connection with any action or proceeding by or on behalf of the bondholders, <br/>
<a id="pl.11.24"></a><var>11.24</var>are fully met and discharged. The commissioner may include this pledge and agreement <br/>
<a id="pl.11.25"></a><var>11.25</var>of the state in any agreement with the holders of bonds issued under this section.<br/>
<a id="pl.11.26"></a><var>11.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.11.27"></a><var>11.27</var>    Sec. 9. <b>[216C.42] DEFINITIONS.</b><br/>
<a id="pl.11.28"></a><var>11.28</var>    Subdivision 1. <b>Scope.</b> For the purpose of this section and section 216C.43, the terms <br/>
<a id="pl.11.29"></a><var>11.29</var>defined in this section have the meanings given them.<br/>
<a id="pl.11.30"></a><var>11.30</var>    Subd. 2. <b>Energy improvement project.</b> "Energy improvement project" means <br/>
<a id="pl.11.31"></a><var>11.31</var>a project to improve energy efficiency in a building or facility, including the design, <br/>
<a id="pl.11.32"></a><var>11.32</var>acquisition, installation, construction, and commissioning of equipment or improvements <br/>
<a id="pl.11.33"></a><var>11.33</var>to a building or facility, and training of building or facility staff necessary to properly <br/>
<a id="pl.11.34"></a><var>11.34</var>operate and maintain the equipment or improvements.<br/>
<a id="pl.12.1"></a><var>12.1</var>    Subd. 3. <b>Energy project study.</b> "Energy project study" means a technical and <br/>
<a id="pl.12.2"></a><var>12.2</var>financial study of one or more energy improvement projects, including:<br/>
<a id="pl.12.3"></a><var>12.3</var>    (1) an analysis of historical energy consumption and cost data;<br/>
<a id="pl.12.4"></a><var>12.4</var>    (2) a description of existing equipment, structural elements, operating characteristics, <br/>
<a id="pl.12.5"></a><var>12.5</var>and other conditions affecting energy use;<br/>
<a id="pl.12.6"></a><var>12.6</var>    (3) a description of the proposed energy improvement projects;<br/>
<a id="pl.12.7"></a><var>12.7</var>    (4) a detailed budget for the proposed project; <br/>
<a id="pl.12.8"></a><var>12.8</var>    (5) calculations sufficient to demonstrate the expected energy savings; and<br/>
<a id="pl.12.9"></a><var>12.9</var>    (6) if a geothermal energy improvement, whether the project is calculated to produce <br/>
<a id="pl.12.10"></a><var>12.10</var>savings in terms of nongeothermal energy and costs.<br/>
<a id="pl.12.11"></a><var>12.11</var>    Subd. 4. <b>Financing agreement.</b> "Financing agreement" means a tax-exempt <br/>
<a id="pl.12.12"></a><var>12.12</var>lease-purchase agreement entered into by a local government and a financial institution <br/>
<a id="pl.12.13"></a><var>12.13</var>under a standard project financing agreement offered under section 216C.43, subdivision 6.<br/>
<a id="pl.12.14"></a><var>12.14</var>    Subd. 5. <b>Local government.</b> "Local government" means a Minnesota county, <br/>
<a id="pl.12.15"></a><var>12.15</var>statutory or home rule charter city, town, school district, park district, or any combination <br/>
<a id="pl.12.16"></a><var>12.16</var>of those units operating under an agreement to exercise powers jointly.<br/>
<a id="pl.12.17"></a><var>12.17</var>    Subd. 6. <b>Program.</b> "Program" means the energy improvement financing program <br/>
<a id="pl.12.18"></a><var>12.18</var>for local governments authorized by section 216C.43.<br/>
<a id="pl.12.19"></a><var>12.19</var>    Subd. 7. <b>Supplemental cash flow agreement.</b> "Supplemental cash flow agreement" <br/>
<a id="pl.12.20"></a><var>12.20</var>means an agreement by the commissioner to lend funds to a local government up to an <br/>
<a id="pl.12.21"></a><var>12.21</var>amount necessary to ensure that the cumulative payments made by the local government <br/>
<a id="pl.12.22"></a><var>12.22</var>under a financing agreement minus the amount loaned by the commissioner do not exceed <br/>
<a id="pl.12.23"></a><var>12.23</var>the actual energy and operating cost savings attributable to the energy improvement <br/>
<a id="pl.12.24"></a><var>12.24</var>project for the term of the supplemental cash flow agreement.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.12.25"></a><var>12.25</var>    Sec. 10. <b>[216C.43] ENERGY IMPROVEMENT FINANCING PROGRAM FOR </b><br/>
<a id="pl.12.26"></a><var>12.26</var><b>LOCAL GOVERNMENT.</b><br/>
<a id="pl.12.27"></a><var>12.27</var>    Subdivision 1. <b>Commissioner's authority and duties; local government </b><br/>
<a id="pl.12.28"></a><var>12.28</var><b>authority.</b> The commissioner shall administer this section. A local government may <br/>
<a id="pl.12.29"></a><var>12.29</var>enter into contracts for the purposes of this section with the commissioner, the primary <br/>
<a id="pl.12.30"></a><var>12.30</var>contractor, other contracted technical service providers, and participating financial <br/>
<a id="pl.12.31"></a><var>12.31</var>institutions.<br/>
<a id="pl.12.32"></a><var>12.32</var>    Subd. 2. <b>Program eligibility; voluntary program participation; targeted </b><br/>
<a id="pl.12.33"></a><var>12.33</var><b>technical services.</b> A local government may elect to participate in the program. The <br/>
<a id="pl.12.34"></a><var>12.34</var>commissioner may prioritize and target technical services offered under subdivision 4 <br/>
<a id="pl.13.1"></a><var>13.1</var>to local governments that the commissioner determines offer the greatest potential for <br/>
<a id="pl.13.2"></a><var>13.2</var>cost-effective energy improvement projects.<br/>
<a id="pl.13.3"></a><var>13.3</var>    Subd. 3. <b>Primary contractor for technical, financial, and program management </b><br/>
<a id="pl.13.4"></a><var>13.4</var><b>services.</b> The commissioner may enter into a contract for the delivery of technical <br/>
<a id="pl.13.5"></a><var>13.5</var>services, financial management, marketing, and administrative services necessary for <br/>
<a id="pl.13.6"></a><var>13.6</var>implementation of the program.<br/>
<a id="pl.13.7"></a><var>13.7</var>    Subd. 4. <b>Targeted technical services.</b> The commissioner shall offer technical <br/>
<a id="pl.13.8"></a><var>13.8</var>services to targeted local governments to conduct energy project studies. The <br/>
<a id="pl.13.9"></a><var>13.9</var>commissioner may contract with one or more qualified technical service providers to <br/>
<a id="pl.13.10"></a><var>13.10</var>conduct energy project studies for targeted local governments. The commissioner may <br/>
<a id="pl.13.11"></a><var>13.11</var>require full or partial reimbursement of costs for technical services provided to a local <br/>
<a id="pl.13.12"></a><var>13.12</var>government, subject to terms and conditions specified and agreed to by contract before <br/>
<a id="pl.13.13"></a><var>13.13</var>the delivery of technical services. A local government may independently procure <br/>
<a id="pl.13.14"></a><var>13.14</var>technical services to conduct an energy project study, but the energy project study must be <br/>
<a id="pl.13.15"></a><var>13.15</var>reviewed and approved by the commissioner to qualify an energy improvement project <br/>
<a id="pl.13.16"></a><var>13.16</var>for a financing agreement under subdivision 6 or a supplemental cash flow agreement <br/>
<a id="pl.13.17"></a><var>13.17</var>under subdivision 7.<br/>
<a id="pl.13.18"></a><var>13.18</var>    Subd. 5. <b>Participation of technical service providers statewide.</b> Program <br/>
<a id="pl.13.19"></a><var>13.19</var>activities must be implemented to encourage statewide participation of engineers, <br/>
<a id="pl.13.20"></a><var>13.20</var>architects, energy auditors, contractors, and other technical service providers. The <br/>
<a id="pl.13.21"></a><var>13.21</var>commissioner may provide training on energy project study requirements and procedures <br/>
<a id="pl.13.22"></a><var>13.22</var>to technical service providers.<br/>
<a id="pl.13.23"></a><var>13.23</var>    Subd. 6. <b>Standard project financing agreement.</b> The commissioner shall solicit <br/>
<a id="pl.13.24"></a><var>13.24</var>proposals from private financial institutions and may enter into a standard project <br/>
<a id="pl.13.25"></a><var>13.25</var>financing agreement with one or more financial institutions. A standard project financing <br/>
<a id="pl.13.26"></a><var>13.26</var>agreement must specify terms and conditions uniformly available to all participating <br/>
<a id="pl.13.27"></a><var>13.27</var>public entities for financing to implement energy improvement projects under this section. <br/>
<a id="pl.13.28"></a><var>13.28</var>A local government may choose to finance an energy improvement project by means other <br/>
<a id="pl.13.29"></a><var>13.29</var>than a standard project financing agreement, but a supplemental cash flow agreement <br/>
<a id="pl.13.30"></a><var>13.30</var>under subdivision 7 must not be offered unless the commissioner determines that the other <br/>
<a id="pl.13.31"></a><var>13.31</var>financing means creates no greater potential obligation under a supplemental cash flow <br/>
<a id="pl.13.32"></a><var>13.32</var>agreement than would be created through a standard project financing agreement.<br/>
<a id="pl.13.33"></a><var>13.33</var>    Subd. 7. <b>Supplemental cash flow agreement.</b> (a) The commissioner may offer <br/>
<a id="pl.13.34"></a><var>13.34</var>a supplemental cash flow agreement to a participating local government for qualifying <br/>
<a id="pl.13.35"></a><var>13.35</var>energy improvement projects. The term of a supplemental cash flow agreement may not <br/>
<a id="pl.14.1"></a><var>14.1</var>exceed 15 years. Terms and conditions of a supplemental cash flow agreement must be <br/>
<a id="pl.14.2"></a><var>14.2</var>agreed to by contract prior to a local government entering into a financing agreement.<br/>
<a id="pl.14.3"></a><var>14.3</var>    (b) A supplemental cash flow agreement must include, but is not limited to:<br/>
<a id="pl.14.4"></a><var>14.4</var>    (1) specification of methods and procedures to measure and verify energy cost <br/>
<a id="pl.14.5"></a><var>14.5</var>savings;<br/>
<a id="pl.14.6"></a><var>14.6</var>    (2) obligations of the local government to operate and maintain the energy <br/>
<a id="pl.14.7"></a><var>14.7</var>improvements;<br/>
<a id="pl.14.8"></a><var>14.8</var>    (3) procedures to modify the supplemental cash flow agreement if the local <br/>
<a id="pl.14.9"></a><var>14.9</var>government modifies operating characteristics of its building or facility in a manner that <br/>
<a id="pl.14.10"></a><var>14.10</var>adversely affects energy cost savings;<br/>
<a id="pl.14.11"></a><var>14.11</var>    (4) interest charged on the loan, which may not exceed the interest on the related <br/>
<a id="pl.14.12"></a><var>14.12</var>financial agreement; and<br/>
<a id="pl.14.13"></a><var>14.13</var>    (5) procedures for resolution of disputes.<br/>
<a id="pl.14.14"></a><var>14.14</var>    (c) The commissioner must limit aggregate exposure to liability for payments under <br/>
<a id="pl.14.15"></a><var>14.15</var>existing supplemental cash flow agreements to an amount no more than the appropriation <br/>
<a id="pl.14.16"></a><var>14.16</var>available to make those payments.<br/>
<a id="pl.14.17"></a><var>14.17</var>    Subd. 8. <b>Qualifying energy improvement projects.</b> A local government may <br/>
<a id="pl.14.18"></a><var>14.18</var>submit to the commissioner, on a form prescribed by the commissioner, an application for <br/>
<a id="pl.14.19"></a><var>14.19</var>a financing agreement authorization and supplemental cash flow agreement for energy <br/>
<a id="pl.14.20"></a><var>14.20</var>improvement projects. The commissioner shall approve an energy improvement project <br/>
<a id="pl.14.21"></a><var>14.21</var>for a supplemental cash flow agreement and authorize eligibility for a financing agreement <br/>
<a id="pl.14.22"></a><var>14.22</var>if the commissioner determines that:<br/>
<a id="pl.14.23"></a><var>14.23</var>    (1) the application has been approved by the governing body or agency head of the <br/>
<a id="pl.14.24"></a><var>14.24</var>local government;<br/>
<a id="pl.14.25"></a><var>14.25</var>    (2) the project is technically and economically feasible;<br/>
<a id="pl.14.26"></a><var>14.26</var>    (3) the local government has made adequate provision for the operation and <br/>
<a id="pl.14.27"></a><var>14.27</var>maintenance of the project;<br/>
<a id="pl.14.28"></a><var>14.28</var>    (4) the project proposer has fully explored the use of conservation investment plan <br/>
<a id="pl.14.29"></a><var>14.29</var>opportunities under section 216B.241 with the utilities providing gas and electric service <br/>
<a id="pl.14.30"></a><var>14.30</var>to the project;<br/>
<a id="pl.14.31"></a><var>14.31</var>    (5) the project is calculated to result in a positive cash flow in each year the financing <br/>
<a id="pl.14.32"></a><var>14.32</var>agreement is in effect; and<br/>
<a id="pl.14.33"></a><var>14.33</var>    (6) adequate money will be available to the commissioner to fulfill the supplemental <br/>
<a id="pl.14.34"></a><var>14.34</var>cash flow agreement.<br/>
<a id="pl.14.35"></a><var>14.35</var>Energy improvement projects under this section are not subject to section 123B.71.<br/>
<a id="pl.15.1"></a><var>15.1</var>    Subd. 9. <b>Program costs.</b> Program costs incurred by the commissioner or a public <br/>
<a id="pl.15.2"></a><var>15.2</var>entity that are not direct costs to implement energy improvement projects may be paid <br/>
<a id="pl.15.3"></a><var>15.3</var>with program money appropriated under subdivision 10.<br/>
<a id="pl.15.4"></a><var>15.4</var>    Subd. 10. <b>Funding; appropriation; receipts.</b> Petroleum violation escrow funds <br/>
<a id="pl.15.5"></a><var>15.5</var>appropriated to the commissioner by Laws 1988, chapter 686, article 1, section 38, for <br/>
<a id="pl.15.6"></a><var>15.6</var>state energy loan programs for schools, hospitals, and public buildings, and reappropriated <br/>
<a id="pl.15.7"></a><var>15.7</var>by Laws 2007, chapter 57, article 2, section 30, are appropriated to the commissioner <br/>
<a id="pl.15.8"></a><var>15.8</var>for the purposes of this section and are available until spent. The commissioner may <br/>
<a id="pl.15.9"></a><var>15.9</var>transfer up to $1,000,000 of this appropriation to the commissioner of administration for <br/>
<a id="pl.15.10"></a><var>15.10</var>the purposes of section 16B.322.<br/>
<a id="pl.15.11"></a><var>15.11</var>    Subd. 11. <b>CIP energy savings goals.</b> A utility or association may count toward its <br/>
<a id="pl.15.12"></a><var>15.12</var>energy savings goals under section 216B.241, subdivision 1c, the energy savings resulting <br/>
<a id="pl.15.13"></a><var>15.13</var>from its investment in an energy improvement project.<br/>
<a id="pl.15.14"></a><var>15.14</var>    Subd. 12. <b>Report.</b> Beginning January 15, 2009, and each year thereafter, the <br/>
<a id="pl.15.15"></a><var>15.15</var>commissioner shall submit to the chairs and ranking minority members of the senate and <br/>
<a id="pl.15.16"></a><var>15.16</var>house committees on energy finance a report containing, at a minimum, the following <br/>
<a id="pl.15.17"></a><var>15.17</var>information regarding projects implemented under this section:<br/>
<a id="pl.15.18"></a><var>15.18</var>    (1) the total number of projects;<br/>
<a id="pl.15.19"></a><var>15.19</var>    (2) the amount of calculated and, if available, actual energy savings for each project;<br/>
<a id="pl.15.20"></a><var>15.20</var>    (3) the cost of each project; and<br/>
<a id="pl.15.21"></a><var>15.21</var>    (4) the total amount paid for technical services provided under subdivision 4 for <br/>
<a id="pl.15.22"></a><var>15.22</var>each project.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.15.23"></a><var>15.23</var>    Sec. 11. Minnesota Statutes 2007 Supplement, section 471.345, subdivision 13, <br/>
<a id="pl.15.24"></a><var>15.24</var>is amended to read:<br/>
<a id="pl.15.25"></a><var>15.25</var>    Subd. 13. <b>Energy efficiency projects.</b> The following definitions apply to this <br/>
<a id="pl.15.26"></a><var>15.26</var>subdivision.<br/>
<a id="pl.15.27"></a><var>15.27</var>    (a) "Energy conservation measure" means a training program or facility alteration <br/>
<a id="pl.15.28"></a><var>15.28</var>designed to reduce energy consumption or operating costs and includes:<br/>
<a id="pl.15.29"></a><var>15.29</var>    (1) insulation of the building structure and systems within the building;<br/>
<a id="pl.15.30"></a><var>15.30</var>    (2) storm windows and doors, caulking or weatherstripping, multiglazed windows <br/>
<a id="pl.15.31"></a><var>15.31</var>and doors, heat absorbing or heat reflective glazed and coated window and door <br/>
<a id="pl.15.32"></a><var>15.32</var>systems, additional glazing, reductions in glass area, and other window and door system <br/>
<a id="pl.15.33"></a><var>15.33</var>modifications that reduce energy consumption;<br/>
<a id="pl.15.34"></a><var>15.34</var>    (3) automatic energy control systems;<br/>
<a id="pl.15.35"></a><var>15.35</var>    (4) heating, ventilating, or air conditioning system modifications or replacements;<br/>
<a id="pl.16.1"></a><var>16.1</var>    (5) replacement or modifications of lighting fixtures to increase the energy efficiency <br/>
<a id="pl.16.2"></a><var>16.2</var>of the lighting system without increasing the overall illumination of a facility, unless an <br/>
<a id="pl.16.3"></a><var>16.3</var>increase in illumination is necessary to conform to the applicable state or local building <br/>
<a id="pl.16.4"></a><var>16.4</var>code for the lighting system after the proposed modifications are made;<br/>
<a id="pl.16.5"></a><var>16.5</var>    (6) energy recovery systems;<br/>
<a id="pl.16.6"></a><var>16.6</var>    (7) cogeneration systems that produce steam or forms of energy such as heat, as well <br/>
<a id="pl.16.7"></a><var>16.7</var>as electricity, for use primarily within a building or complex of buildings;<br/>
<a id="pl.16.8"></a><var>16.8</var>    (8) energy conservation measures that provide long-term operating cost reductions.<br/>
<a id="pl.16.9"></a><var>16.9</var>    (b) "Guaranteed energy savings contract" means a contract for the evaluation <br/>
<a id="pl.16.10"></a><var>16.10</var>and recommendations of energy conservation measures, and for one or more energy <br/>
<a id="pl.16.11"></a><var>16.11</var>conservation measures. The contract must provide that all payments, except obligations <br/>
<a id="pl.16.12"></a><var>16.12</var>on termination of the contract before its expiration, are to be made over time, but not to <br/>
<a id="pl.16.13"></a><var>16.13</var>exceed 15 20 years from the date of final installation, and the savings are guaranteed to <br/>
<a id="pl.16.14"></a><var>16.14</var>the extent necessary to make payments for the systems.<br/>
<a id="pl.16.15"></a><var>16.15</var>    (c) "Qualified provider" means a person or business experienced in the design, <br/>
<a id="pl.16.16"></a><var>16.16</var>implementation, and installation of energy conservation measures. A qualified provider <br/>
<a id="pl.16.17"></a><var>16.17</var>to whom the contract is awarded shall give a sufficient bond to the municipality for its <br/>
<a id="pl.16.18"></a><var>16.18</var>faithful performance.<br/>
<a id="pl.16.19"></a><var>16.19</var>    Notwithstanding any law to the contrary, a municipality may enter into a guaranteed <br/>
<a id="pl.16.20"></a><var>16.20</var>energy savings contract with a qualified provider to significantly reduce energy or <br/>
<a id="pl.16.21"></a><var>16.21</var>operating costs.<br/>
<a id="pl.16.22"></a><var>16.22</var>    Before entering into a contract under this subdivision, the municipality shall provide <br/>
<a id="pl.16.23"></a><var>16.23</var>published notice of the meeting in which it proposes to award the contract, the names of <br/>
<a id="pl.16.24"></a><var>16.24</var>the parties to the proposed contract, and the contract's purpose.<br/>
<a id="pl.16.25"></a><var>16.25</var>    Before installation of equipment, modification, or remodeling, the qualified provider <br/>
<a id="pl.16.26"></a><var>16.26</var>shall first issue a report, summarizing estimates of all costs of installations, modifications, <br/>
<a id="pl.16.27"></a><var>16.27</var>or remodeling, including costs of design, engineering, installation, maintenance, repairs, <br/>
<a id="pl.16.28"></a><var>16.28</var>or debt service, and estimates of the amounts by which energy or operating costs will be <br/>
<a id="pl.16.29"></a><var>16.29</var>reduced.<br/>
<a id="pl.16.30"></a><var>16.30</var>    A guaranteed energy savings contract that includes a written guarantee that savings <br/>
<a id="pl.16.31"></a><var>16.31</var>will meet or exceed the cost of energy conservation measures is not subject to competitive <br/>
<a id="pl.16.32"></a><var>16.32</var>bidding requirements of section 
         <statute_ref>471.345</statute_ref> or other law or city charter. The contract is <br/>
<a id="pl.16.33"></a><var>16.33</var>not subject to section 
         <statute_ref>123B.52</statute_ref>. <br/>
<a id="pl.16.34"></a><var>16.34</var>    A municipality may enter into a guaranteed energy savings contract with a qualified <br/>
<a id="pl.16.35"></a><var>16.35</var>provider if, after review of the report, it finds that the amount it would spend on the energy <br/>
<a id="pl.16.36"></a><var>16.36</var>conservation measures recommended in the report is not likely to exceed the amount to be <br/>
<a id="pl.17.1"></a><var>17.1</var>saved in energy and operation costs over 15 20 years from the date of final installation if <br/>
<a id="pl.17.2"></a><var>17.2</var>the recommendations in the report were followed, and the qualified provider provides a <br/>
<a id="pl.17.3"></a><var>17.3</var>written guarantee that the energy or operating cost savings will meet or exceed the costs <br/>
<a id="pl.17.4"></a><var>17.4</var>of the system. The guaranteed energy savings contract may provide for payments over a <br/>
<a id="pl.17.5"></a><var>17.5</var>period of time, not to exceed 15 20 years.<br/>
<a id="pl.17.6"></a><var>17.6</var>    A municipality may enter into an installment payment contract for the purchase and <br/>
<a id="pl.17.7"></a><var>17.7</var>installation of energy conservation measures. The contract must provide for payments of <br/>
<a id="pl.17.8"></a><var>17.8</var>not less than 1/15 1/20 of the price to be paid within two years from the date of the first <br/>
<a id="pl.17.9"></a><var>17.9</var>operation, and the remaining costs to be paid monthly, not to exceed a 15-year 20-year <br/>
<a id="pl.17.10"></a><var>17.10</var>term from the date of the first operation final acceptance.<br/>
<a id="pl.17.11"></a><var>17.11</var>    A municipality entering into a guaranteed energy savings contract shall provide a <br/>
<a id="pl.17.12"></a><var>17.12</var>copy of the contract and the report from the qualified provider to the commissioner of <br/>
<a id="pl.17.13"></a><var>17.13</var>commerce within 30 days of the effective date of the contract.<br/>
<a id="pl.17.14"></a><var>17.14</var>    Guaranteed energy savings contracts may extend beyond the fiscal year in which <br/>
<a id="pl.17.15"></a><var>17.15</var>they become effective. The municipality shall include in its annual appropriations measure <br/>
<a id="pl.17.16"></a><var>17.16</var>for each later fiscal year any amounts payable under guaranteed energy savings contracts <br/>
<a id="pl.17.17"></a><var>17.17</var>during the year. Failure of a municipality to make such an appropriation does not affect <br/>
<a id="pl.17.18"></a><var>17.18</var>the validity of the guaranteed energy savings contract or the municipality's obligations <br/>
<a id="pl.17.19"></a><var>17.19</var>under the contracts.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.17.20"></a><var>17.20</var>    Sec. 12. <b>REPORT TO COMMISSIONER OF EDUCATION.</b><br/>
<a id="pl.17.21"></a><var>17.21</var>    The commissioner of commerce must report to the commissioner of education by <br/>
<a id="pl.17.22"></a><var>17.22</var>January 15, 2009, and January 15, 2010, the school districts that have applied for financing <br/>
<a id="pl.17.23"></a><var>17.23</var>under Minnesota Statutes, section 216C.43. The report must indicate the type of project <br/>
<a id="pl.17.24"></a><var>17.24</var>for which each district requested approval, the amount of the loan requested, and whether <br/>
<a id="pl.17.25"></a><var>17.25</var>the project was approved. If the district's project was not approved, the commissioner <br/>
<a id="pl.17.26"></a><var>17.26</var>must report the reason for the lack of approval. This section expires January 16, 2010.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.17.27"></a><var>17.27</var>    Sec. 13. <b>REPORT; GREEN STAR AWARD EXPANSION.</b><br/>
<a id="pl.17.28"></a><var>17.28</var>    The Pollution Control Agency and the Office of Energy Security in the Department <br/>
<a id="pl.17.29"></a><var>17.29</var>of Commerce shall, in collaboration with the clean energy resource teams (CERT's), <br/>
<a id="pl.17.30"></a><var>17.30</var>submit a report by February 2, 2009, to the chairs and ranking minority members of the <br/>
<a id="pl.17.31"></a><var>17.31</var>senate and house of representatives committees with primary jurisdiction over energy <br/>
<a id="pl.17.32"></a><var>17.32</var>policy that makes recommendations regarding how to expand eligibility to receive the <br/>
<a id="pl.17.33"></a><var>17.33</var>Green Star award, described in Minnesota Statutes, section 114C.25, to include cities and <br/>
<a id="pl.17.34"></a><var>17.34</var>communities that take action to help meet the state's greenhouse gas emissions reduction <br/>
<a id="pl.17.35"></a><var>17.35</var>goals established in Minnesota Statutes, section 216H.02, subdivision 1. The report must <br/>
<a id="pl.17.36"></a><var>17.36</var>address, at a minimum, the following issues:<br/>
<a id="pl.18.1"></a><var>18.1</var>    (1) the criteria for actions cities and communities must take in order to receive a <br/>
<a id="pl.18.2"></a><var>18.2</var>Green Star award;<br/>
<a id="pl.18.3"></a><var>18.3</var>    (2) what entity or entities would issue the award;<br/>
<a id="pl.18.4"></a><var>18.4</var>    (3) the length of time during which the award may be displayed;<br/>
<a id="pl.18.5"></a><var>18.5</var>    (4) existing state financial and technical assistance available to communities and <br/>
<a id="pl.18.6"></a><var>18.6</var>cities to assist them to reduce greenhouse gas emissions;<br/>
<a id="pl.18.7"></a><var>18.7</var>    (5) sources of additional funding needed to implement the program; and<br/>
<a id="pl.18.8"></a><var>18.8</var>    (6) any other issues that need to be resolved in order to implement the program.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.18.9"></a><var>18.9</var>    Sec. 14. <b>GREEN ECONOMY REPORT.</b><br/>
<a id="pl.18.10"></a><var>18.10</var>    (a) Each state agency, other than the Iron Range Resources and Rehabilitation <br/>
<a id="pl.18.11"></a><var>18.11</var>Board or the Office of the Commissioner of Iron Range Resources and Rehabilitation, <br/>
<a id="pl.18.12"></a><var>18.12</var>that administers a loan or grant program must assess those programs to determine <br/>
<a id="pl.18.13"></a><var>18.13</var>their potential to advance or promote the growth of the green economy, as defined in <br/>
<a id="pl.18.14"></a><var>18.14</var>Minnesota Statutes, section 116J.437. An agency must report on its determination to the <br/>
<a id="pl.18.15"></a><var>18.15</var>commissioner of commerce by September 15, 2008.<br/>
<a id="pl.18.16"></a><var>18.16</var>    (b) If a program is determined to have significant potential, the agency must develop <br/>
<a id="pl.18.17"></a><var>18.17</var>a plan to integrate program elements appropriate to that program to advance or promote <br/>
<a id="pl.18.18"></a><var>18.18</var>the growth of the green economy in this state. An agency must report on its plan to the <br/>
<a id="pl.18.19"></a><var>18.19</var>commissioner of commerce by November 15, 2008.<br/>
<a id="pl.18.20"></a><var>18.20</var>    (c) The commissioner of commerce, in consultation with the commissioner of <br/>
<a id="pl.18.21"></a><var>18.21</var>employment and economic development, must develop guidelines to be followed by state <br/>
<a id="pl.18.22"></a><var>18.22</var>agencies in complying with this section.<br/>
<a id="pl.18.23"></a><var>18.23</var>    (d) By January 15, 2009, the commissioner of commerce, in consultation with the <br/>
<a id="pl.18.24"></a><var>18.24</var>commissioner of employment and economic development, must submit a report containing <br/>
<a id="pl.18.25"></a><var>18.25</var>the plans developed under paragraph (b), and any recommended implementing legislation, <br/>
<a id="pl.18.26"></a><var>18.26</var>to the chairs and ranking minority members of the senate and house committees with <br/>
<a id="pl.18.27"></a><var>18.27</var>primary jurisdiction over energy, environmental and economic development policy, and <br/>
<a id="pl.18.28"></a><var>18.28</var>finance.<br/>
<a id="pl.18.29"></a><var>18.29</var>    (e) The commissioner of commerce may contract for services to fulfill the <br/>
<a id="pl.18.30"></a><var>18.30</var>commissioner's duties under this section.<br/>
<a id="pl.18.31"></a><var>18.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.18.32"></a><var>18.32</var>    Sec. 15. <b>GREEN JOBS TASK FORCE.</b><br/>
<a id="pl.18.33"></a><var>18.33</var>    Subdivision 1. <b>Task force.</b> (a) A Green Jobs Task Force is created to advise and <br/>
<a id="pl.18.34"></a><var>18.34</var>assist the governor and legislature regarding activities to advance the state's economy, and <br/>
<a id="pl.19.1"></a><var>19.1</var>to develop a statewide action plan as provided under subdivision 2. The task force shall <br/>
<a id="pl.19.2"></a><var>19.2</var>be appointed no later than June 30, 2008, and consist of:<br/>
<a id="pl.19.3"></a><var>19.3</var>    (1) three members of the house of representatives, including one member of the <br/>
<a id="pl.19.4"></a><var>19.4</var>minority party appointed by the speaker;<br/>
<a id="pl.19.5"></a><var>19.5</var>    (2) three members of the senate appointed by the Subcommittee on Committees of <br/>
<a id="pl.19.6"></a><var>19.6</var>the Committee on Rules and Administration, including one member of the minority;<br/>
<a id="pl.19.7"></a><var>19.7</var>    (3) seven representatives from state agencies and institutions appointed by the <br/>
<a id="pl.19.8"></a><var>19.8</var>governor, including one member from the Office of Energy Security, one member from <br/>
<a id="pl.19.9"></a><var>19.9</var>the Department of Employment and Economic Development, one member from the Job <br/>
<a id="pl.19.10"></a><var>19.10</var>Skills Partnership Board, one member from the University of Minnesota, one member <br/>
<a id="pl.19.11"></a><var>19.11</var>from Minnesota State Colleges and Universities, one member from the Pollution Control <br/>
<a id="pl.19.12"></a><var>19.12</var>Agency, and one member from the Department of Natural Resources;<br/>
<a id="pl.19.13"></a><var>19.13</var>    (4) three public members appointed by the governor, including one member <br/>
<a id="pl.19.14"></a><var>19.14</var>representing the manufacturing industry, one member representing a statewide <br/>
<a id="pl.19.15"></a><var>19.15</var>organization dedicated to commerce, and one member representing the Agricultural <br/>
<a id="pl.19.16"></a><var>19.16</var>Utilization Research Institute; <br/>
<a id="pl.19.17"></a><var>19.17</var>    (5) four public members appointed by the speaker of the house of representatives, <br/>
<a id="pl.19.18"></a><var>19.18</var>including one member representing labor, one member representing a statewide <br/>
<a id="pl.19.19"></a><var>19.19</var>environmental organization, one member representing financial institutions or venture <br/>
<a id="pl.19.20"></a><var>19.20</var>capital, and one member from a local economic development authority from greater <br/>
<a id="pl.19.21"></a><var>19.21</var>Minnesota; and<br/>
<a id="pl.19.22"></a><var>19.22</var>    (6) four public members appointed by the senate Subcommittee on Committees <br/>
<a id="pl.19.23"></a><var>19.23</var>of the Committee on Rules and Administration, including one member from a local <br/>
<a id="pl.19.24"></a><var>19.24</var>economic development authority from the metropolitan area, one member from a <br/>
<a id="pl.19.25"></a><var>19.25</var>statewide organization dedicated to furthering the green economy, one member from a <br/>
<a id="pl.19.26"></a><var>19.26</var>firm currently engaged in green manufacturing, and one local workforce development <br/>
<a id="pl.19.27"></a><var>19.27</var>representative from an area that has experienced significant manufacturing job loss.<br/>
<a id="pl.19.28"></a><var>19.28</var>    (b) The commissioner of commerce, in cooperation with the commissioner of <br/>
<a id="pl.19.29"></a><var>19.29</var>employment and economic development, shall provide staff support to the task force. The <br/>
<a id="pl.19.30"></a><var>19.30</var>task force may accept outside resources to help support its efforts.<br/>
<a id="pl.19.31"></a><var>19.31</var>    (c) Each of the legislative appointing authorities must name a cochair of the task <br/>
<a id="pl.19.32"></a><var>19.32</var>force from the legislative members appointed by that authority.<br/>
<a id="pl.19.33"></a><var>19.33</var>    (d) Public members of the task force must be compensated as provided in Minnesota <br/>
<a id="pl.19.34"></a><var>19.34</var>Statutes, section 15.059, subdivision 3.<br/>
<a id="pl.19.35"></a><var>19.35</var>    Subd. 2. <b>Duties.</b> (a) By January 15, 2009, the task force shall develop and present to <br/>
<a id="pl.19.36"></a><var>19.36</var>the legislature under Minnesota Statutes, section 3.195, and to the governor a statewide <br/>
<a id="pl.20.1"></a><var>20.1</var>action plan to optimize the growth of the green economy. For the purpose of this section, <br/>
<a id="pl.20.2"></a><var>20.2</var>"green economy" has the meaning given it by Minnesota Statutes, section 116J.437.<br/>
<a id="pl.20.3"></a><var>20.3</var>    (b) The plan must include necessary draft legislation and budget requests and may <br/>
<a id="pl.20.4"></a><var>20.4</var>include administrative actions of governmental entities, collaborative actions, and actions <br/>
<a id="pl.20.5"></a><var>20.5</var>of individuals and individual organizations. The plan must be developed following the <br/>
<a id="pl.20.6"></a><var>20.6</var>analysis described in this paragraph and must be based on the analysis. The analysis <br/>
<a id="pl.20.7"></a><var>20.7</var>must include:<br/>
<a id="pl.20.8"></a><var>20.8</var>    (1) a market analysis of the business opportunities and needs created by the laws <br/>
<a id="pl.20.9"></a><var>20.9</var>enumerated in paragraph (a), including local, state, national, and international markets;<br/>
<a id="pl.20.10"></a><var>20.10</var>    (2) an analysis of the labor force needs related to the market analysis opportunities <br/>
<a id="pl.20.11"></a><var>20.11</var>identified in clause (1), including educational, training, and retraining needs; and<br/>
<a id="pl.20.12"></a><var>20.12</var>    (3) an inventory of the current labor and business assets available to respond to the <br/>
<a id="pl.20.13"></a><var>20.13</var>opportunities identified in clause (1) and the labor needs identified in clause (2).<br/>
<a id="pl.20.14"></a><var>20.14</var>The task force shall contract for the analysis required by this paragraph.<br/>
<a id="pl.20.15"></a><var>20.15</var>    Subd. 3. <b>Expiration.</b> The task force expires June 30, 2009.<br/>
<a id="pl.20.16"></a><var>20.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.20.17"></a><var>20.17</var>    Sec. 16. <b> REPEALER.</b><br/>
<a id="pl.20.18"></a><var>20.18</var>Laws 2007, chapter 57, article 2, section 30, is repealed.<br/>
<a id="pl.20.19"></a><var>20.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment."<br/>
<a id="pl.20.20"></a><var>20.20</var>Delete the title and insert:<br/>

<a id="pl.20.23"></a><var>20.23</var>investments; removing rulemaking requirement for certain loan and grant <br/>
<a id="pl.20.24"></a><var>20.24</var>programs; establishing microenergy loan program; authorizing issuance of <br/>
<a id="pl.20.25"></a><var>20.25</var>state revenue bonds; modifying provision allowing guaranteed energy savings <br/>
<a id="pl.20.26"></a><var>20.26</var>contracts; modifying or adding provisions relating to green economy activities; <br/>
<a id="pl.20.27"></a><var>20.27</var>creating Green Jobs Task Force; requiring reports; appropriating money;<br/>
<a id="pl.20.28"></a><var>20.28</var>amending Minnesota Statutes 2006, sections 116J.8731, subdivision 4; 216C.09; <br/>
<a id="pl.20.29"></a><var>20.29</var>Minnesota Statutes 2007 Supplement, sections 116J.575, subdivision 1a; <br/>
<a id="pl.20.30"></a><var>20.30</var>471.345, subdivision 13; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.20.31"></a><var>20.31</var>chapters 16B; 116J; 216C; repealing Laws 2007, chapter 57, article 2, section 30."<br/>
         		We request the adoption of this report and repassage of the bill.Senate Conferees: (Signed) D. Scott Dibble, Julie A. Rosen, Ellen R. AndersonHouse Conferees: (Signed) Jeremy Kalin, Andy Welti, Doug Magnus
         <table>
<col width="50px"/>
<col width="252px"/>
<col width="42px"/>
<col width="252px"/>
<tr>
<td><a id="pl.21.1"></a><var>21.1</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">We request the adoption of this report and repassage of the bill.<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.2"></a><var>21.2</var><br/>
</td>
<td align="left" valign="bottom">Senate Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.21.3"></a><var>21.3</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.21.4"></a><var>21.4</var><br/>
</td>
<td align="left" valign="bottom">D. Scott Dibble<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Julie A. Rosen<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.5"></a><var>21.5</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.21.6"></a><var>21.6</var><br/>
</td>
<td align="left" valign="bottom">Ellen R. Anderson<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.21.7"></a><var>21.7</var><br/>
</td>
<td align="left" valign="bottom">House Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.21.8"></a><var>21.8</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.21.9"></a><var>21.9</var><br/>
</td>
<td align="left" valign="bottom">Jeremy Kalin<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Andy Welti<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.10"></a><var>21.10</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.21.11"></a><var>21.11</var><br/>
</td>
<td align="left" valign="bottom">Doug Magnus<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
</table>