1.1 	A bill for an act
1.2 	relating to energy; providing direction for the use of federal stimulus funding 
1.3 	for energy programs.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. FEDERAL STIMULUS FUNDING; DEFINITIONS.
 1.6 	For the purpose of sections 1 to 11, "stimulus funding" or "funding" means funding 
1.7 	provided to the state by the federal American Recovery and Reinvestment Act of 2009 for 
1.8 	weatherization, state energy programs, energy-efficient appliances, and energy efficiency 
1.9 	and conservation block grant purposes.

1.10 	Sec. 2. WEATHERIZATION.
 1.11 	(a) Existing providers of weatherization services must be fully utilized for 
1.12 	stimulus-funded activity before additional providers of weatherization services are added. 
1.13 	Programs that include rental units shall be developed, including developing procedures to 
1.14 	streamline low-income rental unit participation in programs. Priority shall be given to 
1.15 	serving the largest number of new weatherization clients consistent with federal eligibility 
1.16 	requirements. Administrative costs for increased program activity related to stimulus 
1.17 	funding must be minimized and the use of contract services maximized.
1.18 	(b) A variety of strategies must be used for stimulus funded weatherization, 
1.19 	including, without limitation:
1.20 	(1) neighborhood saturation on a multiprogram basis, including without limitation, 
1.21 	utility conservation programs, weatherization programs, and state and local government 
1.22 	energy programs;
2.1 	(2) a quick fix component that provides a lower level of weatherization to a larger 
2.2 	number of residences at a lower cost than a more comprehensive weatherization package; 
2.3 	and
2.4 	(3) a more complete weatherization package at a higher cost that would, to the extent 
2.5 	practicable, use funding from a number of programs.

2.6 	Sec. 3. LOCAL GOVERNMENT AND SCHOOL DISTRICT BUILDING 
2.7 	RENOVATIONS.
 2.8 	The Department of Commerce and the Office of Energy Security must coordinate 
2.9 	the use of stimulus funds with the public building enhanced energy-efficiency program 
2.10 	under Minnesota Statutes, section 216C.43. The Office of Energy Security shall prioritize 
2.11 	lighting upgrades, energy recommissioning, and other cost-effective energy projects 
2.12 	that are ready for immediate implementation. Energy-efficiency conservation block 
2.13 	grants and state energy program funds may be used to advance local public building 
2.14 	enhanced energy-efficiency program projects by either reducing energy bills during a 
2.15 	savings repayment period or by decreasing the number of years for payback of energy 
2.16 	improvement investments. Stimulus funds may not exceed more than 25 percent of the 
2.17 	total project cost with the balance of funding provided by the local governmental unit 
2.18 	or school district, the local public building enhanced energy-efficiency program under 
2.19 	Minnesota Statutes, section 216C.43, or another local governmental unit or school district 
2.20 	financing program in conjunction with utility conservation investment program funds 
2.21 	to the maximum extent possible. The Office of Energy Security shall coordinate with 
2.22 	the Department of Education in prioritizing school district projects, consistent with the 
2.23 	principles of statewide geographic distribution of projects, optimized energy savings, and 
2.24 	an improved learning environment for school children.

2.25 	Sec. 4. STATE GOVERNMENT BUILDINGS.
 2.26 	The Department of Administration and the Office of Energy Security shall develop a 
2.27 	joint plan and procedures to select, fund, and implement projects using stimulus funds. 
2.28 	The joint plan and procedures shall prioritize lighting upgrades, energy recommissioning, 
2.29 	and other cost-effective energy projects that are ready for immediate implementation. 
2.30 	Energy-efficiency conservation block grants and state energy program funds may be used 
2.31 	to advance public building enhanced energy-efficiency program projects under Minnesota 
2.32 	Statutes, section 16B.32, by either reducing energy bills during a savings repayment 
2.33 	period or decreasing the number of years for payback of energy improvement investments, 
2.34 	provided that stimulus funds do not exceed more than 25 percent of the total project 
3.1 	cost with the balance of funding provided through the state public building enhanced 
3.2 	energy-efficiency program, or other financing, including conservation investment program 
3.3 	funds to the maximum extent possible.

3.4 	Sec. 5. RESIDENTIAL PROGRAMS.
 3.5 	(a) A portion of the stimulus funds received by the Department of Commerce must be 
3.6 	used to fund a window replacement and insulation program for existing housing occupied 
3.7 	by low- or moderate-income households. The development and implementation of this 
3.8 	financing program must be coordinated with the Minnesota Housing Finance Agency. 
3.9 	(b) The Office of Energy Security must provide incentives to fund an 
3.10 	energy-efficiency program for existing housing occupied by low- or moderate-income 
3.11 	households. The development and implementation of this financing program must be 
3.12 	coordinated with the Minnesota Housing Finance Agency. Stimulus funds shall be used 
3.13 	to provide incentives to complete cost-effective energy-related improvements. Stimulus 
3.14 	funds shall not exceed 25 percent of the total project cost with the balance provided by 
3.15 	the property owner, utility-funded conservation investment programs, financing from the 
3.16 	Minnesota Housing Finance Agency, local lenders, or another housing-related program.

3.17 	Sec. 6. COMMERCIAL AND INDUSTRIAL FACILITIES.
 3.18 	Stimulus funds shall be granted to local units of government, including without 
3.19 	limitation, cities, counties, and port authorities for use in developing and implementing 
3.20 	demonstration programs to provide for the design, financing, and installation of 
3.21 	energy-efficiency improvements in commercial and industrial facilities. The local 
3.22 	government may use stimulus funds for all costs necessary to design, develop, and 
3.23 	implement a commercial/industrial program to fund energy-efficiency improvements, 
3.24 	including but not limited to the costs of administration, marketing and financing related 
3.25 	to due-diligence analyses, financing origination and servicing, training, measurement 
3.26 	and verification, and the local government shall use grant funds for loans, guarantees, 
3.27 	bond financing, shared savings agreements, grants, or other financing arrangements to 
3.28 	pay all costs necessary to the design, procurement, construction, and installation of 
3.29 	energy-efficiency improvements.

3.30 	Sec. 7. APPLIANCE REPLACEMENT.
 3.31 	To the extent consistent with federal law, the commissioner of commerce may utilize 
3.32 	stimulus funds to supplement and enhance the amount of rebates provided to residential 
3.33 	utility customers through a conservation investment program.

4.1 	Sec. 8. TRAINING AND WORKFORCE DEVELOPMENT.
 4.2 		Subdivision 1.Home energy auditors and technicians. The director of the Office 
4.3 	of Energy Security shall oversee training of energy auditors necessary for energy projects 
4.4 	using stimulus funding and may allocate funding for that purpose. Technical skills training 
4.5 	must include insulation, air sealing, and mechanical work. 
4.6 		Subd. 2.Energy manager and building operator training. The director of the 
4.7 	Office of Energy Security shall coordinate and monitor training and certification of 
4.8 	energy managers, building operators, and other energy professionals necessary for energy 
4.9 	projects using stimulus funding and may allocate funding for that purpose. Training 
4.10 	strategies must be designed to meet the wide range of facilities managers and the wide 
4.11 	range of buildings sizes and types. 
4.12 		Subd. 3.Training activity guidelines. In addition to training individuals already 
4.13 	employed in implementing energy programs, the director shall recruit individuals for 
4.14 	training to perform work in energy projects using stimulus funding who are unemployed, 
4.15 	especially targeting unemployed or underemployed individuals in construction trades and 
4.16 	crafts. The director shall utilize the full capacity of current training providers, including, 
4.17 	but not limited to, opportunities industrialization centers, skilled trades labor unions, and 
4.18 	nonprofit organizations with historic expertise in energy efficiency. Training may include 
4.19 	an on-the-job component where the trainee goes to job sites with trained crews. If the 
4.20 	director determines that outreach efforts are necessary for the weatherization program, the 
4.21 	director shall, at least in part, utilize paid and volunteer youth to perform the outreach.
4.22 		Subd. 4.Energy technology transfer and training center. The Office of Energy 
4.23 	Security shall contract with a Minnesota nonprofit corporation with extensive experience 
4.24 	in energy research, program design and delivery, program evaluation, and consumer 
4.25 	education to create an Energy Technology Transfer and Training Center. The center shall 
4.26 	coordinate its efforts with state agencies and others such as the Minnesota State Colleges 
4.27 	and Universities, Minnesota technical assistance program, Center for Sustainable Building 
4.28 	Research at the University of Minnesota, Minnesota Technology Center, and a broad array 
4.29 	of public and private organizations to provide energy-related services. Stimulus funds 
4.30 	must be matched on a dollar-for-dollar basis.

4.31 	Sec. 9. OFFICE OF ENERGY SECURITY; LOCAL GOVERNMENT 
4.32 	ASSISTANCE.
 4.33 	The director of the Office of Energy Security shall designate personnel and may 
4.34 	contract to provide advice and assistance to local units of government receiving federal 
4.35 	stimulus money, particularly smaller cities. The director shall develop, by contract or 
5.1 	otherwise, strategies that local units of government can utilize to obtain maximum 
5.2 	conservation and economic development returns from stimulus funding. The director shall 
5.3 	work with associations of local governmental units to notify local governments of the 
5.4 	availability of advice under this section.

5.5 	Sec. 10. COMPETITIVE ENERGY GRANTS; STATE AND LOCAL 
5.6 	GOVERNMENT AUTHORIZATION.
 5.7 	All state agencies and local units of government, in addition to any other authority, 
5.8 	are authorized to engage in activities individually and in cooperation with other public or 
5.9 	private entities to apply for, accept, and expend competitive funds made available in the 
5.10 	federal American Recovery and Reinvestment Act of 2009 through the Energy Efficiency 
5.11 	and Conservation Block Grant.

5.12 	Sec. 11. CONSERVATION IMPROVEMENT PLANS; FEDERAL STIMULUS 
5.13 	PLAN.
 5.14 	The commissioner of commerce must consider the impact of federal stimulus 
5.15 	funding in the administration of the conservation improvement program (CIP) under 
5.16 	Minnesota Statutes, section 216B.241. The commissioner may amend plans currently in 
5.17 	effect and approve plans to accommodate federal stimulus funding.

5.18 	Sec. 12. EFFECTIVE DATE.
 5.19 	Sections 1 to 11 are effective the day following final enactment.