1.1 	A bill for an act
1.2 	relating to energy; creating local government renewable energy grant program; 
1.3 	authorizing bonds; appropriating money; proposing coding for new law in 
1.4 	Minnesota Statutes, chapter 216C.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [216C.147] LOCAL GOVERNMENT RENEWABLE ENERGY 
1.7 	GRANT PROGRAM.
1.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
1.9 	this subdivision have the meanings given them.
1.10 	(b) "Local government" means a home rule charter or statutory city, county, port 
1.11 	authority, or town.
1.12 	(c) "Renewable energy systems" mean solar thermal water heating, solar electric or 
1.13 	photovoltaic equipment, wind energy conversion systems of 3.3 megawatts nameplate 
1.14 	capacity or less, and heating and cooling applications using geothermal energy.
1.15 		Subd. 2.Program established. The commissioner of commerce shall develop, 
1.16 	implement, and administer a local government renewable energy system grant program 
1.17 	under this section.
1.18 		Subd. 3.Grant purposes. The commissioner may make grants to local governments 
1.19 	to finance the purchase and installation of renewable energy systems.
1.20 		Subd. 4.Technical standards. The commissioner shall determine technical 
1.21 	standards for renewable energy systems to qualify for grants under this section.
1.22 		Subd. 5.Grant proposals. At least once a year, the commissioner shall publish in 
1.23 	the State Register a request for proposals from local governments for a grant under this 
2.1 	section. Within 45 days after the deadline for receipt of proposals, the commissioner shall 
2.2 	select grant proposals based on the following criteria:
2.3 	(1) the reliability and cost-effectiveness of the renewable technology to be installed 
2.4 	under the proposal;
2.5 	(2) the extent to which the proposal effectively integrates with the conservation and 
2.6 	energy efficiency programs of the energy utilities serving the local government;
2.7 	(3) the extent to which the local government has maximized other cost-effective 
2.8 	energy efficiency and conservation improvements;
2.9 	(4) the total life cycle energy use and greenhouse gas emissions reductions per 
2.10 	dollar of installed cost;
2.11 	(5) the geographic distribution of grant recipients throughout the state;
2.12 	(6) the percentage of total project cost requested; and
2.13 	(7) other criteria the commissioner may determine to be necessary and appropriate.
2.14 		Subd. 6.Minnesota product preference. Notwithstanding any other law to the 
2.15 	contrary, any contract for the purchase of renewable energy systems or related services to 
2.16 	be paid with or out of grant funds provided under this section, must be awarded to the 
2.17 	lowest responsible bidder having its principal place of business in Minnesota or who 
2.18 	uses a majority of parts manufactured or produced in the state in the assembly of a final 
2.19 	product, unless the local government grantee determines that it would be inconsistent 
2.20 	with the public interest, the cost would be unreasonable, or the products or materials of 
2.21 	the class or kind to be used are not produced or manufactured in the state in commercial 
2.22 	quantities and of a satisfactory quality.
2.23 		Subd. 7.Grant terms. The maximum grant to a local government under this 
2.24 	section may not exceed $........
2.25 		Subd. 8.Account; appropriation. A local government renewable energy system 
2.26 	grant account is established in the bond proceeds fund in the state treasury. Money in the 
2.27 	account consists of the proceeds of bonds appropriated to the account and other earnings 
2.28 	on money in the account, legislative appropriations, and money from any other source 
2.29 	credited to the account. Money in the account is appropriated to the commissioner of 
2.30 	commerce to make local government renewable energy system grants under this section.

2.31 	Sec. 2. LOCAL GOVERNMENT RENEWABLE ENERGY SYSTEM GRANT 
2.32 	ACCOUNT; APPROPRIATION.
2.33 	$....... is appropriated from the bond proceeds fund to the local government 
2.34 	renewable energy system grant account for the purpose of making grants under Minnesota 
2.35 	Statutes, section 216C.147.

3.1 	Sec. 3. BOND AUTHORIZATION.
 3.2 	To provide the money appropriated in this act from the bond proceeds fund, the 
3.3 	commissioner of finance shall sell and issue bonds of the state in an amount up to $....... in 
3.4 	the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 
3.5 	16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.