HF 680

4th Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:28 p.m.

1.1A bill for an act 1.2relating to energy; providing direction for the use of federal stimulus funding 1.3for energy programs;proposing coding for new law in Minnesota Statutes, 1.4chapter 216B. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. new text begin [216B.2405] PUBLIC BUILDING ENERGY SAVINGS REVOLVING new text end 1.7 new text begin LOAN FUND. new text end 1.8     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin A public building energy savings revolving loan new text end 1.9 new text begin fund is established as an account in the special revenue fund. The commissioner of finance new text end 1.10 new text begin shall credit to the account the amounts authorized under this section and appropriations new text end 1.11 new text begin and transfers to the account. Earnings, such as interest, dividends, and any other earnings new text end 1.12 new text begin arising from fund assets, must be credited to the account. new text end 1.13     new text begin Subd. 2. new text end new text begin Deposits. new text end new text begin (a) Owners of projects that have received stimulus funds under new text end 1.14 new text begin section 4 must annually deposit in the account 30 percent of the monetized energy savings new text end 1.15 new text begin realized that are attributable to the stimulus funds until the payback period is ended, as new text end 1.16 new text begin determined by the Office of Energy Security. new text end 1.17 new text begin (b) Owners of projects that have received loans under this section must annually new text end 1.18 new text begin deposit in the account 30 percent of the monetized energy savings realized that are new text end 1.19 new text begin attributable to the loan until the payback period is ended, as determined by the Office new text end 1.20 new text begin of Energy Security. new text end 1.21     new text begin Subd. 3. new text end new text begin Expenditures. new text end new text begin Money in the account is appropriated to the commissioner new text end 1.22 new text begin of commerce for the purpose of making loans to improve the energy efficiency of local new text end 1.23 new text begin government and school district buildings. Loans made under this section must be new text end 2.1 new text begin consistent with the principles contained in section 2 and the financing terms contained in new text end 2.2 new text begin section 4. new text end 2.3     new text begin Subd. 4. new text end new text begin Administration. new text end new text begin (a) Applications for a loan under this section must be new text end 2.4 new text begin made in a manner and on forms prescribed by the Office of Energy Security. Loans to new text end 2.5 new text begin eligible projects must be made in the order in which complete applications are received by new text end 2.6 new text begin the commissioner of commerce. new text end 2.7 new text begin (b) The Office of Energy Security must establish procedures for the loan application new text end 2.8 new text begin process, criteria which must be met in order for loan applications to be approved, and new text end 2.9 new text begin other provisions necessary to administer the loan program, including, but not limited to, new text end 2.10 new text begin the maximum interest rate that may be charged for a loan. new text end 2.11    Sec. 2. new text begin FEDERAL STIMULUS FUNDING; GENERAL PRINCIPLES FOR new text end 2.12 new text begin ENERGY PROGRAMS. new text end 2.13     new text begin Subdivision 1. new text end new text begin Definition. new text end new text begin For the purposes of sections 1 to 7, "stimulus funding" or new text end 2.14 new text begin "funding" means federal stimulus funding provided to the state by the federal stimulus new text end 2.15 new text begin funding legislation for energy programs, including, without limitation, energy programs new text end 2.16 new text begin described in sections 2 to 7. new text end 2.17     new text begin Subd. 2. new text end new text begin Stimulus fund allocation and use principles. new text end new text begin To the extent allowed by new text end 2.18 new text begin federal law and regulation, stimulus funding shall be allocated and expended according to new text end 2.19 new text begin the following principles: new text end 2.20 new text begin (1) project administrators, including the Office of Energy Security, shall maximize new text end 2.21 new text begin job retention and creation and optimize energy conservation and demand reduction that new text end 2.22 new text begin can be achieved by stimulus funding; new text end 2.23 new text begin (2) consistent with the job retention and creation and energy conservation goals, new text end 2.24 new text begin projects shall be selected based on relative cost-effectiveness and achieving the maximum new text end 2.25 new text begin ongoing energy savings per stimulus dollar spent and the ability to meet federal deadlines new text end 2.26 new text begin for the obligation and expenditure of federal stimulus funds; new text end 2.27 new text begin (3) stimulus funding must be used for projects geographically distributed across new text end 2.28 new text begin the state; new text end 2.29 new text begin (4) whenever practical, stimulus funds should be coordinated with existing new text end 2.30 new text begin utility conservation programs and other leveraged funds. Preference must be given new text end 2.31 new text begin to loan programs and other programs that coordinate with and leverage existing utility new text end 2.32 new text begin conservation programs and private dollars, and to projects whose owners agree to deposit new text end 2.33 new text begin at least 30 percent of energy savings funds attributable to stimulus funding into the public new text end 2.34 new text begin building energy savings revolving loan fund account established in section 1; new text end 3.1 new text begin (5) preference should be given to projects with jobs that pay a living wage and new text end 3.2 new text begin protect the occupational health and safety of the workers; new text end 3.3 new text begin (6) consideration in all projects should be given to achieving high indoor air quality; new text end 3.4 new text begin and new text end 3.5 new text begin (7) project administrators, include the Office of Energy Security, the Department new text end 3.6 new text begin of Administration, the Department of Education, and the Minnesota Housing Finance new text end 3.7 new text begin Authority, must comply with the disadvantaged business enterprise outreach requirements new text end 3.8 new text begin in Minnesota Statutes, section 16C.16, subdivision 4. new text end 3.9     new text begin Subd. 3. new text end new text begin Action plan. new text end new text begin The Office of Energy Security, in coordination with the new text end 3.10 new text begin Departments of Education and Administration, shall develop an action plan to spend new text end 3.11 new text begin stimulus funds consistent with this section. This plan must include application procedures new text end 3.12 new text begin for funding and the development of a system to track all funds expended, energy savings new text end 3.13 new text begin caused, the number of jobs, and the wage level of jobs retained and created by the new text end 3.14 new text begin investment of stimulus funding. The Office of Energy Security may retain, select, and hire new text end 3.15 new text begin contractors to assist in the development of the plan and tracking system using expedited new text end 3.16 new text begin procurement procedures. new text end 3.17    Sec. 3. new text begin WEATHERIZATION. new text end 3.18     new text begin Subdivision 1. new text end new text begin Allocation of funds. new text end new text begin All stimulus funds for weatherization must be new text end 3.19 new text begin allocated by the director of the Office of Energy Security, consistent with federal allocation new text end 3.20 new text begin requirements and state allocation formulas in the state weatherization plan. Existing new text end 3.21 new text begin providers of weatherization services must be fully utilized, consistent with effective new text end 3.22 new text begin program delivery, before additional providers of weatherization services are added. new text end 3.23     new text begin Subd. 2. new text end new text begin Rental units. new text end new text begin Programs that include rental units shall be developed, new text end 3.24 new text begin including developing procedures to increase low-income rental unit participation in new text end 3.25 new text begin programs. Priority shall be given to serving the largest number of new weatherization new text end 3.26 new text begin clients consistent with federal eligibility requirements. new text end 3.27    Sec. 4. new text begin LOCAL GOVERNMENT AND SCHOOL DISTRICT BUILDING new text end 3.28 new text begin RENOVATIONS. new text end 3.29 new text begin The Office of Energy Security must coordinate the use of stimulus funds with the new text end 3.30 new text begin local public building enhanced energy-efficiency program under Minnesota Statutes, new text end 3.31 new text begin section 216C.43. The Office of Energy Security shall prioritize lighting upgrades, new text end 3.32 new text begin energy recommissioning, and other cost-effective energy projects that are ready for new text end 3.33 new text begin immediate implementation. Energy-efficiency conservation block grants and state energy new text end 3.34 new text begin program funds may be used to advance local public building enhanced energy-efficiency new text end 4.1 new text begin program projects by either reducing energy bills during a savings repayment period or by new text end 4.2 new text begin decreasing the number of years for payback of energy improvement investments, provided new text end 4.3 new text begin that at least 60 percent of a project's funding is provided by the local governmental unit new text end 4.4 new text begin or school district, the local public building enhanced energy-efficiency program under new text end 4.5 new text begin Minnesota Statutes, section 216C.43, or another local governmental unit or school district new text end 4.6 new text begin financing program. The Office of Energy Security shall coordinate with the Department new text end 4.7 new text begin of Education in prioritizing school district projects, consistent with the principles of new text end 4.8 new text begin statewide geographic distribution of projects, optimized energy savings, and an improved new text end 4.9 new text begin learning environment for schoolchildren. new text end 4.10    Sec. 5. new text begin STATE GOVERNMENT BUILDINGS. new text end 4.11 new text begin The Office of Energy Security and the Department of Administration shall new text end 4.12 new text begin develop a joint plan and joint procedures to select, fund, and implement projects using new text end 4.13 new text begin stimulus funds. The joint plan and procedures shall prioritize lighting upgrades, energy new text end 4.14 new text begin recommissioning, and other cost-effective energy projects that are ready for immediate new text end 4.15 new text begin implementation. Energy-efficiency conservation block grants and state energy program new text end 4.16 new text begin funds may be used to advance the state public building enhanced energy-efficiency new text end 4.17 new text begin program under Minnesota Statutes, section 16B.322, projects by either reducing energy new text end 4.18 new text begin bills during a savings repayment period or decreasing the number of years for payback of new text end 4.19 new text begin energy improvement investments, provided that at least 60 percent of a project's funding is new text end 4.20 new text begin provided through the state public building enhanced energy-efficiency program. new text end 4.21    Sec. 6. new text begin RESIDENTIAL WINDOW REPLACEMENT PROGRAMS. new text end 4.22 new text begin The Office of Energy Security must establish a program to fund a window new text end 4.23 new text begin replacement and insulation program for existing housing occupied by low- or new text end 4.24 new text begin moderate-income households. The development and implementation of this financing new text end 4.25 new text begin program must be coordinated with the Minnesota Housing Finance Agency and existing new text end 4.26 new text begin lead abatement programs. new text end 4.27    Sec. 7. new text begin TRAINING AND WORKFORCE DEVELOPMENT. new text end 4.28 new text begin (a) The Department of Employment and Economic Development, in consultation new text end 4.29 new text begin with the Office of Energy Security and the Office of Higher Education, shall develop a new text end 4.30 new text begin plan and procedures to: new text end 4.31 new text begin (1) allocate stimulus funds to training programs to train energy professionals needed new text end 4.32 new text begin to implement the energy programs described in sections 3 to 6, including but not limited to new text end 4.33 new text begin energy auditors, energy managers, and building operators; new text end 5.1 new text begin (2) coordinate, oversee, and monitor the training and certification of energy new text end 5.2 new text begin professionals; and new text end 5.3 new text begin (3) allocate funding for the purposes of clauses (1) and (2) and to training providers. new text end 5.4 new text begin (b) Training strategies must be designed to meet the wide range of facilities new text end 5.5 new text begin managers and building sizes and types, and must protect the occupational health and safety new text end 5.6 new text begin of workers employed on these energy projects. Technical skills training must include new text end 5.7 new text begin insulation, air sealing, and mechanical work. new text end 5.8 new text begin (c) The plan must include procedures to: new text end 5.9 new text begin (1) train individuals already employed in implementing energy programs; new text end 5.10 new text begin (2) recruit individuals for training to perform work in energy projects using new text end 5.11 new text begin stimulus funding who are unemployed, especially targeting communities experiencing new text end 5.12 new text begin disproportionately high rates of unemployment, including but not limited to low-income, new text end 5.13 new text begin rural, or tribal communities and individuals in construction trades and crafts; and new text end 5.14 new text begin (3) ensure that the full capacity of current training providers is utilized, including but new text end 5.15 new text begin not limited to opportunities industrialization centers, skilled trades labor unions, tribal new text end 5.16 new text begin colleges or nonprofits working in tribal communities, community action partnerships, new text end 5.17 new text begin higher education institutions, and nonprofit organizations with demonstrated expertise new text end 5.18 new text begin in energy efficiency. new text end 5.19    Sec. 8. new text begin ACCOUNTABILITY AND TRANSPARENCY REPORTING. new text end 5.20 new text begin The director of the Office of Energy Security shall, after compiling information new text end 5.21 new text begin supplied by the Departments of Administration, Education, Employment and Economic new text end 5.22 new text begin Development, and the Office of Higher Education, report on the progress of the programs new text end 5.23 new text begin funded under sections 3 to 7 to the house of representatives and senate committees with new text end 5.24 new text begin jurisdiction over energy finance and bioscience and workforce development policy and new text end 5.25 new text begin oversight by May 1, 2009, September 1, 2009, January 15, 2010, April 1, 2010, and new text end 5.26 new text begin September 1, 2010. The report shall include a complete accounting of all stimulus funds new text end 5.27 new text begin spent on the programs funded under sections 3 to 7, including, but not limited to: new text end 5.28 new text begin (1) the specific projects funded, including the location, building owner, and project new text end 5.29 new text begin manager; new text end 5.30 new text begin (2) the number of jobs retained or created by each project; new text end 5.31 new text begin (3) the average wage of the jobs created or retained; new text end 5.32 new text begin (4) the total calculated and actual energy savings for each project; new text end 5.33 new text begin (5) the remaining balances in each stimulus fund; new text end 5.34 new text begin (6) the nonstimulus funding leveraged by stimulus funds for each project; new text end 5.35 new text begin (7) the current and projected deposits into the energy savings endowment fund; new text end 6.1 new text begin (8) the training courses provided, including the location and provider of courses new text end 6.2 new text begin offered, the funding source for each training course, and the total number of trainees; and new text end 6.3 new text begin (9) compliance with federal and state wage, veterans, and disadvantaged business new text end 6.4 new text begin enterprise requirements. new text end 6.5    Sec. 9. new text begin EFFECTIVE DATE. new text end 6.6 new text begin Sections 1 to 8 are effective the day following final enactment. new text end