1.1A bill for an act1.2relating 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. [216B.2405] PUBLIC BUILDING ENERGY SAVINGS REVOLVING 1.7LOAN FUND.1.8    Subdivision 1.Establishment.A public building energy savings revolving loan 1.9fund is established as an account in the special revenue fund.  The commissioner of finance 1.10shall credit to the account the amounts authorized under this section and appropriations 1.11and transfers to the account. Earnings, such as interest, dividends, and any other earnings 1.12arising from fund assets, must be credited to the account.1.13    Subd. 2.Deposits.(a) Owners of projects that have received stimulus funds under 1.14section 4 must annually deposit in the account 30 percent of the monetized energy savings 1.15realized that are attributable to the stimulus funds until the payback period is ended, as 1.16determined by the Office of Energy Security.1.17(b) Owners of projects that have received loans under this section must annually 1.18deposit in the account 30 percent of the monetized energy savings realized that are 1.19attributable to the loan until the payback period is ended, as determined by the Office 1.20of Energy Security. 1.21    Subd. 3.Expenditures.Money in the account is appropriated to the commissioner 1.22of commerce for the purpose of making loans to improve the energy efficiency of local 1.23government and school district buildings. Loans made under this section must be 2.1consistent with the principles contained in section 2 and the financing terms contained in 2.2section 4.2.3    Subd. 4.Administration.(a) Applications for a loan under this section must be 2.4made in a manner and on forms prescribed by the Office of Energy Security. Loans to 2.5eligible projects must be made in the order in which complete applications are received by 2.6the commissioner of commerce.2.7(b) The Office of Energy Security must establish procedures for the loan application 2.8process, criteria which must be met in order for loan applications to be approved, and 2.9other provisions necessary to administer the loan program, including, but not limited to, 2.10the maximum interest rate that may be charged for a loan.2.11    Sec. 2. FEDERAL STIMULUS FUNDING; GENERAL PRINCIPLES FOR 2.12ENERGY PROGRAMS.2.13    Subdivision 1.Definition.For the purposes of sections 1 to 7, "stimulus funding" or 2.14"funding" means federal stimulus funding provided to the state by the federal stimulus 2.15funding legislation for energy programs, including, without limitation, energy programs 2.16described in sections 2 to 7.2.17    Subd. 2.Stimulus fund allocation and use principles.To the extent allowed by 2.18federal law and regulation, stimulus funding shall be allocated and expended according to 2.19the following principles:2.20(1) project administrators, including the Office of Energy Security, shall maximize 2.21job retention and creation and optimize energy conservation and demand reduction that 2.22can be achieved by stimulus funding;2.23(2) consistent with the job retention and creation and energy conservation goals, 2.24projects shall be selected based on relative cost-effectiveness and achieving the maximum 2.25ongoing energy savings per stimulus dollar spent and the ability to meet federal deadlines 2.26for the obligation and expenditure of federal stimulus funds;2.27(3) stimulus funding must be used for projects geographically distributed across 2.28the state;2.29(4) whenever practical, stimulus funds should be coordinated with existing 2.30utility conservation programs and other leveraged funds. Preference must be given 2.31to loan programs and other programs that coordinate with and leverage existing utility 2.32conservation programs and private dollars, and to projects whose owners agree to deposit 2.33at least 30 percent of energy savings funds attributable to stimulus funding into the public 2.34building energy savings revolving loan fund account established in section 1;3.1(5) preference should be given to projects with jobs that pay a living wage and 3.2protect the occupational health and safety of the workers;3.3(6) consideration in all projects should be given to achieving high indoor air quality; 3.4and3.5(7) project administrators, include the Office of Energy Security, the Department 3.6of Administration, the Department of Education, and the Minnesota Housing Finance 3.7Authority, must comply with the disadvantaged business enterprise outreach requirements 3.8in Minnesota Statutes, section 16C.16, subdivision 4.3.9    Subd. 3.Action plan.The Office of Energy Security, in coordination with the 3.10Departments of Education and Administration, shall develop an action plan to spend 3.11stimulus funds consistent with this section. This plan must include application procedures 3.12for funding and the development of a system to track all funds expended, energy savings 3.13caused, the number of jobs, and the wage level of jobs retained and created by the 3.14investment of stimulus funding. The Office of Energy Security may retain, select, and hire 3.15contractors to assist in the development of the plan and tracking system using expedited 3.16procurement procedures.3.17    Sec. 3. WEATHERIZATION.3.18    Subdivision 1.Allocation of funds.All stimulus funds for weatherization must be 3.19allocated by the director of the Office of Energy Security, consistent with federal allocation 3.20requirements and state allocation formulas in the state weatherization plan. Existing 3.21providers of weatherization services must be fully utilized, consistent with effective 3.22program delivery, before additional providers of weatherization services are added.3.23    Subd. 2.Rental units. Programs that include rental units shall be developed, 3.24including developing procedures to increase low-income rental unit participation in 3.25programs. Priority shall be given to serving the largest number of new weatherization 3.26clients consistent with federal eligibility requirements.3.27    Sec. 4. LOCAL GOVERNMENT AND SCHOOL DISTRICT BUILDING 3.28RENOVATIONS.3.29The Office of Energy Security must coordinate the use of stimulus funds with the 3.30local public building enhanced energy-efficiency program under Minnesota Statutes, 3.31section 216C.43. The Office of Energy Security shall prioritize lighting upgrades, 3.32energy recommissioning, and other cost-effective energy projects that are ready for 3.33immediate implementation. Energy-efficiency conservation block grants and state energy 3.34program funds may be used to advance local public building enhanced energy-efficiency 4.1program projects by either reducing energy bills during a savings repayment period or by 4.2decreasing the number of years for payback of energy improvement investments, provided 4.3that at least 60 percent of a project's funding is provided by the local governmental unit 4.4or school district, the local public building enhanced energy-efficiency program under 4.5Minnesota Statutes, section 216C.43, or another local governmental unit or school district 4.6financing program. The Office of Energy Security shall coordinate with the Department 4.7of Education in prioritizing school district projects, consistent with the principles of 4.8statewide geographic distribution of projects, optimized energy savings, and an improved 4.9learning environment for schoolchildren.4.10    Sec. 5. STATE GOVERNMENT BUILDINGS.4.11The Office of Energy Security and the Department of Administration shall 4.12develop a joint plan and joint procedures to select, fund, and implement projects using 4.13stimulus funds. The joint plan and procedures shall prioritize lighting upgrades, energy 4.14recommissioning, and other cost-effective energy projects that are ready for immediate 4.15implementation. Energy-efficiency conservation block grants and state energy program 4.16funds may be used to advance the state public building enhanced energy-efficiency 4.17program under Minnesota Statutes, section 16B.322, projects by either reducing energy 4.18bills during a savings repayment period or decreasing the number of years for payback of 4.19energy improvement investments, provided that at least 60 percent of a project's funding is 4.20provided through the state public building enhanced energy-efficiency program.4.21    Sec. 6. RESIDENTIAL WINDOW REPLACEMENT PROGRAMS.4.22The Office of Energy Security must establish a program to fund a window 4.23replacement and insulation program for existing housing occupied by low- or 4.24moderate-income households. The development and implementation of this financing 4.25program must be coordinated with the Minnesota Housing Finance Agency and existing 4.26lead abatement programs.4.27    Sec. 7. TRAINING AND WORKFORCE DEVELOPMENT.4.28(a) The Department of Employment and Economic Development, in consultation 4.29with the Office of Energy Security and the Office of Higher Education, shall develop a 4.30plan and procedures to:4.31(1) allocate stimulus funds to training programs to train energy professionals needed 4.32to implement the energy programs described in sections 3 to 6, including but not limited to 4.33energy auditors, energy managers, and building operators;5.1(2) coordinate, oversee, and monitor the training and certification of energy 5.2professionals; and5.3(3) allocate funding for the purposes of clauses (1) and (2) and to training providers.5.4(b) Training strategies must be designed to meet the wide range of facilities 5.5managers and building sizes and types, and must protect the occupational health and safety 5.6of workers employed on these energy projects. Technical skills training must include 5.7insulation, air sealing, and mechanical work.5.8(c) The plan must include procedures to:5.9(1) train individuals already employed in implementing energy programs;5.10(2) recruit individuals for training to perform work in energy projects using 5.11stimulus funding who are unemployed, especially targeting communities experiencing 5.12disproportionately high rates of unemployment, including but not limited to low-income, 5.13rural, or tribal communities and individuals in construction trades and crafts; and5.14(3) ensure that the full capacity of current training providers is utilized, including but 5.15not limited to opportunities industrialization centers, skilled trades labor unions, tribal 5.16colleges or nonprofits working in tribal communities, community action partnerships, 5.17higher education institutions, and nonprofit organizations with demonstrated expertise 5.18in energy efficiency.5.19    Sec. 8. ACCOUNTABILITY AND TRANSPARENCY REPORTING.5.20The director of the Office of Energy Security shall, after compiling information 5.21supplied by the Departments of Administration, Education, Employment and Economic 5.22Development, and the Office of Higher Education, report on the progress of the programs 5.23funded under sections 3 to 7 to the house of representatives and senate committees with 5.24jurisdiction over energy finance and bioscience and workforce development policy and 5.25oversight by May 1, 2009, September 1, 2009, January 15, 2010, April 1, 2010, and 5.26September 1, 2010. The report shall include a complete accounting of all stimulus funds 5.27spent on the programs funded under sections 3 to 7, including, but not limited to:5.28(1) the specific projects funded, including the location, building owner, and project 5.29manager;5.30(2) the number of jobs retained or created by each project;5.31(3) the average wage of the jobs created or retained;5.32(4) the total calculated and actual energy savings for each project;5.33(5) the remaining balances in each stimulus fund;5.34(6) the nonstimulus funding leveraged by stimulus funds for each project;5.35(7) the current and projected deposits into the energy savings endowment fund;6.1(8) the training courses provided, including the location and provider of courses 6.2offered, the funding source for each training course, and the total number of trainees; and6.3(9) compliance with federal and state wage, veterans, and disadvantaged business 6.4enterprise requirements.6.5    Sec. 9. EFFECTIVE DATE.6.6Sections 1 to 8 are effective the day following final enactment.