1.1 	A bill for an act
1.2 	relating to energy; providing direction for the use of federal stimulus money 
1.3 	for energy programs; 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.  SUMMARY OF APPROPRIATIONS.
 	
1.7 	The amounts shown in this section summarize direct appropriations made in this act.

1.8	Weatherization Assistance Program
			$
	131,937,000
	
1.9	State Energy Program
						54,172,000
	
1.10	Energy Efficiency and Conservation Block Grants
				10,644,000

1.11	Federal Fund Total
					$
	196,753,000

1.12	Sec. 2. APPROPRIATIONS OF FEDERAL STIMULUS MONEY FOR ENERGY.
 	
1.13 	The sums shown in the columns marked "Appropriations" are appropriated to the 
1.14 	commissioner of commerce for the purposes specified in this act. The appropriations 
1.15 	are from the federal fund from federal stimulus money allocated to the state under the 
1.16 	American Recovery and Reinvestment Act of 2009, Public Law 111-5, for:
1.17 	(1) the Weatherization Assistance Program authorized under part A of title IV of the 
1.18 	Energy Conservation and Production Act, United States Code, title 42, section 6861, et 
1.19 	seq.; 
1.20 	(2) the State Energy Program authorized under part D of title III of the Energy Policy 
1.21 	and Conservation Act, United States Code, title 42, section 6321, et seq.; and
2.1 	(3) energy efficiency and conservation block grants authorized under subtitle E of 
2.2 	title V of the Energy Independence and Security Act of 2007, United States Code, title 
2.3 	42, section 17151 et seq.
2.4 	The appropriations are available until spent.

2.5				APPROPRIATIONS

2.6	Sec. 3. COMMISSIONER OF COMMERCE

2.7	Subdivision 1.Total Appropriation
 			$
	196,753,000
	
2.8 	The amounts that may be spent for each 
2.9 	purpose are specified in the following 
2.10 	subdivisions.

2.11	Subd. 2.Weatherization Assistance Program
 				131,937,000
	
2.12 	(a) To continue the low-income 
2.13 	weatherization assistance program 
2.14 	under Minnesota Statutes, section 216C.264.
2.15 	(b) Past providers of weatherization services 
2.16 	must be fully used based on their capacity 
2.17 	as determined by the commissioner of 
2.18 	commerce for stimulus-funded activity 
2.19 	before additional providers of weatherization 
2.20 	services are added. The commissioner shall 
2.21 	develop programs that include shelters, as 
2.22 	defined in the Code of Federal Regulations, 
2.23 	title 10, section 440.3, and rental units. The 
2.24 	commissioner shall develop procedures to 
2.25 	streamline participation of low-income rental 
2.26 	units in the programs. Programs that include 
2.27 	solar heat through the Renewable Energy 
2.28 	Equipment Program are eligible for grants. 
2.29 	The commissioner shall give priority to 
2.30 	high-consumption households and to serving 
2.31 	the largest number of new weatherization 
2.32 	clients and the greatest number of homes 
2.33 	possible.
3.1 	(c) The commissioner must use a variety of 
3.2 	strategies to fund weatherization with federal 
3.3 	stimulus money.
3.4 	(d) To further address neighborhood 
3.5 	saturation in areas affected by foreclosure, 
3.6 	the commissioner must apply for a waiver 
3.7 	or otherwise seek authority from the United 
3.8 	States Department of Energy to use money for 
3.9 	weatherization services for abandoned and 
3.10 	foreclosed homes and residential properties 
3.11 	acquired and rehabilitated with money 
3.12 	provided through the federal Neighborhood 
3.13 	Stabilization Program, provided the home 
3.14 	becomes occupied by a resident who meets 
3.15 	the federal eligibility requirements.

3.16	Subd. 3.State Energy Program

3.17	(a) Residential Energy
				13,500,000
	
3.18 	For transfer to the Minnesota Housing 
3.19 	Finance Agency. The Minnesota Housing 
3.20 	Finance Agency shall develop and implement 
3.21 	a residential energy program to fund an 
3.22 	energy-efficient loan product using the lender 
3.23 	network of the Minnesota Housing Finance 
3.24 	Agency. Loan items must include energy 
3.25 	efficiency improvements recommended 
3.26 	by an energy auditor certified by the 
3.27 	commissioner of commerce. Energy 
3.28 	efficiency improvements include, but are 
3.29 	not limited to, heating system replacements, 
3.30 	air-to-air heat exchangers, attic air sealing 
3.31 	and insulation, wall insulation, water heating 
3.32 	system replacements, air conditioning 
3.33 	system replacements, window repair 
3.34 	and replacement, and electric appliance 
3.35 	replacements.
4.1 	The commissioner must use a variety of 
4.2 	strategies for residential energy programs 
4.3 	funded with federal stimulus money, 
4.4 	including without limitation:
4.5 	(1) neighborhood saturation on a 
4.6 	multiprogram basis, including without 
4.7 	limitation, outreach to homeowners eligible 
4.8 	for residential energy programs, utility 
4.9 	conservation programs, weatherization 
4.10 	programs, and state and local government 
4.11 	energy programs; and
4.12 	(2) a quick-fix component that provides 
4.13 	a lower level of energy-efficiency 
4.14 	improvements to a larger number 
4.15 	of residences at a lower cost than a 
4.16 	more comprehensive energy-efficiency 
4.17 	improvement package.
4.18 	A portion of this appropriation may be 
4.19 	used for direct rebates. Stimulus money 
4.20 	may not be used to pay more than 25 
4.21 	percent of the total project cost, with the 
4.22 	balance provided by the property owner, 
4.23 	utility-funded conservation investment 
4.24 	programs, financing from the Minnesota 
4.25 	Housing Finance Agency, local lenders, or 
4.26 	another housing-related program.
4.27 	A contract for window repairs or replacement 
4.28 	or related services to be paid from grant 
4.29 	money provided under this paragraph 
4.30 	must be awarded to the best value bidder 
4.31 	that has its principal place of business in 
4.32 	this state or that uses a majority of parts 
4.33 	manufactured or produced in this state in the 
4.34 	assembly of a final product, unless the local 
4.35 	government grantee determines that it would 
5.1 	be inconsistent with the public interest, the 
5.2 	cost would be unreasonable, or the products 
5.3 	or materials of the class or kind to be used are 
5.4 	not produced or manufactured in this state in 
5.5 	commercial quantities and of a satisfactory 
5.6 	quality.

5.7	(b) Innovative Residential Energy Efficiency
				1,500,000
	
5.8 	For an innovative residential energy 
5.9 	efficiency program for the city of Duluth 
5.10 	that must use funding from the state energy 
5.11 	program, local government, weatherization 
5.12 	program, utility conservation improvement 
5.13 	program, and private nonprofit sources. This 
5.14 	appropriation must be matched $1 for every 
5.15 	$4 of the appropriation and is available to 
5.16 	the extent of the match. The program must 
5.17 	include the following elements:
5.18 	(1) performance-based provision of basic 
5.19 	energy conservation measures, such as 
5.20 	air-sealing;
5.21 	(2) an environmental and carbon footprint 
5.22 	awareness campaign;
5.23 	(3) a beyond-the-basics component of 
5.24 	additional and more comprehensive energy 
5.25 	conservation measures including, without 
5.26 	limitation, deep energy retrofits and appliance 
5.27 	upgrades;
5.28 	(4) a plan to use revolving loan funds so that 
5.29 	the program is sustainable over time; 
5.30 	(5) innovative financing options allowing 
5.31 	residents to finance improvements at least in 
5.32 	part with energy savings; and
5.33 	(6) measurement and assessment of program 
5.34 	effectiveness and energy savings.

6.1
6.2	(c) School District and Local Government 
Renewable Energy
				10,000,000
	
6.3 	For the school district and local government 
6.4 	renewable energy grant program established 
6.5 	in Minnesota Statutes, section 216C.147, if 
6.6 	2009 Senate File 1006 or 2009 House File 
6.7 	1553 is enacted. Before entering into a power 
6.8 	purchase agreement for wind energy projects 
6.9 	exceeding 60 megawatts, the purchasing 
6.10 	utility shall contact school district and local 
6.11 	government entities in the county where the 
6.12 	project will be located to determine whether 
6.13 	the school district or local government wants 
6.14 	to partner with the wind developer and utility 
6.15 	for a publicly owned wind project of 3.3 
6.16 	megawatts or smaller.

6.17	(d) Former School Building Energy Conversion
				100,000
	
6.18 	For a grant to the city of Kennedy for 
6.19 	the energy conversion of a former school 
6.20 	building to use geothermal, wind, and solar 
6.21 	energy and to house the Go Green Business 
6.22 	Center.

6.23	(e) Renewable Electric Generation Facilities
				250,000
	
6.24 	For grants to owners of qualifying renewable 
6.25 	electric generation facilities. A "qualifying 
6.26 	facility" means an electric facility that meets 
6.27 	the specifications of Minnesota Statutes, 
6.28 	section 216B.164, subdivision 3, paragraph 
6.29 	(a), and that generates electricity from a 
6.30 	renewable energy source. "Renewable 
6.31 	energy source" means:
6.32 	(1) solar;
6.33 	(2) wind;
6.34 	(3) hydroelectric;
7.1 	(4) hydrogen, provided that after January 1, 
7.2 	2010, the hydrogen must be generated from 
7.3 	the resources listed in this paragraph; or
7.4 	(5) biomass, which includes, without 
7.5 	limitation, landfill gas; an anaerobic 
7.6 	digester system; biomass gasification; 
7.7 	the predominantly organic components 
7.8 	of wastewater effluent, sludge, or related 
7.9 	by-products from publicly owned treatment 
7.10 	works, but not including incineration of 
7.11 	wastewater sludge to produce electricity. 
7.12 	Grants may be awarded, in order of receipt 
7.13 	of a completed application, for the lesser 
7.14 	of $2,500 or 35 percent of the cost of the 
7.15 	facility, including installation.

7.16
7.17	(f) Commercial and Industrial Energy 
Efficiency
				7,000,000
	
7.18 	For grants to local government units and 
7.19 	a port authority created under Minnesota 
7.20 	Statutes, section 469.084, to develop and 
7.21 	implement a program to provide for the 
7.22 	design, financing, and installation of energy 
7.23 	efficiency improvements in commercial 
7.24 	facilities, industrial facilities, and facilities 
7.25 	owned by community-based nonprofit 
7.26 	organizations established under section 
7.27 	501(c)(3) of the Internal Revenue Code of 
7.28 	1986, receiving energy from a utility that 
7.29 	provides natural gas or electric services for 
7.30 	customers within the utility's service area. 
7.31 	Program financing must include a revolving 
7.32 	loan component. Money may also be used 
7.33 	to improve the energy efficiency of biofuel 
7.34 	facilities and displace fossil fuel energy 
7.35 	inputs with energy derived from renewable 
7.36 	resources via anaerobic digestion, biomass 
8.1 	gasification, or other technologies. Grant 
8.2 	recipients may use up to two percent of 
8.3 	the grant for the costs of administration 
8.4 	of the commercial-industrial program. 
8.5 	Grant recipients may take actions and enter 
8.6 	into agreements necessary to develop and 
8.7 	implement a program under this paragraph. A 
8.8 	utility participating through its conservation 
8.9 	improvement program is entitled to claim the 
8.10 	energy savings attributable to its participating 
8.11 	investment toward its energy-savings goal 
8.12 	established in Minnesota Statutes, section 
8.13 	216B.241. Priority must be given to energy 
8.14 	efficiency improvements that achieve the 
8.15 	following objectives:
8.16 	(1) reduction in total energy use and energy 
8.17 	costs of facilities;
8.18 	(2) improvement in the economic 
8.19 	competitiveness of facilities; and
8.20 	(3) creation or retention of jobs at improved 
8.21 	facilities.
8.22 	The commissioner of commerce shall report 
8.23 	to the NextGen Energy Board established in 
8.24 	Minnesota Statutes, section 41A.105, on the 
8.25 	grants made under this paragraph.

8.26
8.27	(g) Energy Efficiency and Renewable Energy 
Outreach
				1,000,000
	
8.28 	For a grant to the organization established 
8.29 	under Minnesota Statutes, section 216C.385, 
8.30 	to develop and conduct a statewide 
8.31 	door-to-door campaign to identify two 
8.32 	percent of homeowners in this state to 
8.33 	implement energy efficiency and renewable 
8.34 	energy projects. The organization shall, 
8.35 	in its planning, training, and hiring, work 
9.1 	with a broad-based coalition of 50 or more 
9.2 	groups. The coalition must have the capacity 
9.3 	to develop and conduct outreach programs 
9.4 	that will connect low-income persons, 
9.5 	including women and persons of color, with 
9.6 	opportunities to have their homes audited 
9.7 	for energy efficiency and weatherized. The 
9.8 	coalition must use paid and volunteer youth 
9.9 	and seniors from local communities to 
9.10 	perform the outreach.

9.11	(h) Solar Energy Installation
				7,000,000
	
9.12 	For grants to increase the installation of 
9.13 	solar energy projects in this state. Of 
9.14 	this amount, at least $3,000,000 must be 
9.15 	used for concentrated installation of large 
9.16 	and small-scale solar projects, including 
9.17 	innovative storage technology, located in 
9.18 	the proposed light-rail central corridor and 
9.19 	nearby low-income neighborhoods in cities 
9.20 	that have been designated solar cities by 
9.21 	the United State Department of Energy to 
9.22 	demonstrate and research grid, cost, and 
9.23 	technical impacts of highly concentrated 
9.24 	solar projects. The remaining amounts 
9.25 	allocated must be used for solar projects, 
9.26 	including use of the solar rebate program, 
9.27 	statewide.
9.28 	A contract, grant, loan, or other financial 
9.29 	assistance for solar photovoltaic installations 
9.30 	must:
9.31 	(1) require payment at the prevailing wage 
9.32 	rate as defined in Minnesota Statutes, section 
9.33 	177.42;
9.34 	(2) require that the installation of all listed 
9.35 	electrical equipment is performed by licensed 
10.1 	electrical contractors in compliance with 
10.2 	Minnesota Statutes, chapter 326B; and
10.3 	(3) give preference to projects that will be 
10.4 	installed by licensed electrical contractors 
10.5 	with employees who have obtained an 
10.6 	installer's certification from a nationally 
10.7 	recognized solar photovoltaic certification 
10.8 	body or who have employees that are 
10.9 	enrolled in a certification course.

10.10	(i) Government Building Renovation
				13,000,000
	
10.11 	To renovate local government and school 
10.12 	district buildings under section 5 and state 
10.13 	government buildings under section 6.

10.14	(j) Evaluating Energy Efficiency
				822,000
	
10.15 	For grants to evaluate energy-saving 
10.16 	equipment, research, and processes that 
10.17 	will help the state of Minnesota reach its 
10.18 	renewable energy and energy savings goals. 
10.19 	The commissioner shall award grants to 
10.20 	public and nonprofit institutions for eligible 
10.21 	projects, including, but not limited to, 
10.22 	projects that: 
10.23 	(1) develop a solar rating and certification 
10.24 	program to test, rate, and certify the 
10.25 	performance of equipment and devices that 
10.26 	use solar energy;
10.27 	(2) apply research at Minnesota State 
10.28 	University, Mankato, in renewable energy, 
10.29 	including residential-scale biomass, and 
10.30 	energy efficiency to aid the transfer of 
10.31 	technology from outside of the United States 
10.32 	to Minnesota, and to support technology 
10.33 	commercialization from companies located 
10.34 	in Minnesota; and
11.1 	(3) develop an advanced energy-efficiency 
11.2 	center that will conduct energy-efficiency 
11.3 	testing and coordinate other energy-efficiency 
11.4 	efforts with state agencies, educational 
11.5 	institutions and programs, and public 
11.6 	and private organizations to provide 
11.7 	energy-related services.

11.8
11.9	Subd. 4.Energy Efficiency and Conservation 
Block Grant Programs

11.10	(a) Energy Efficiency and Conservation
				6,386,000
	
11.11 	For a competitive grant program for 
11.12 	local units of government not otherwise 
11.13 	receiving direct federal energy efficiency and 
11.14 	conservation block grant money. The Office 
11.15 	of Energy Security shall make grants to cities 
11.16 	to enhance energy efficiency and reduce 
11.17 	energy use through:
11.18 	(1) planning;
11.19 	(2) consultant services;
11.20 	(3) energy audits;
11.21 	(4) implementing energy-efficient building 
11.22 	codes;
11.23 	(5) energy-efficient renovations;
11.24 	(6) energy-efficient street lighting; and
11.25 	(7) installation of renewable energy devices 
11.26 	used in public buildings.

11.27	(b) Government Building Renovation
				4,258,000
	
11.28 	To renovate local government and school 
11.29 	district buildings under section 5 and state 
11.30 	government buildings under section 6.

11.31
11.32	Subd. 5.Administrative Costs, Public 
Information, and Contracting Requirements
 					
12.1 	Unless a lower percentage is specified under 
12.2 	federal requirements, the Office of Energy 
12.3 	Security may use no more than five percent 
12.4 	of the federal grants authorized under the 
12.5 	American Recovery and Reinvestment Act 
12.6 	of 2009 for the cost of developing and 
12.7 	administering the programs funded by this 
12.8 	act. Administrative costs include:
12.9 	(1) the personnel costs for new and existing 
12.10 	employees administering the programs for 
12.11 	the Office of Energy Security;
12.12 	(2) the development of grant applications, 
12.13 	information, data collection, and other 
12.14 	federal and state reporting requirements to 
12.15 	administer the programs;
12.16 	(3) the education and training of local and 
12.17 	other nonstate personnel used to administer 
12.18 	programs; 
12.19 	(4) the development and implementation 
12.20 	of a telephone hotline and Web site that is 
12.21 	focused solely on assisting the public and 
12.22 	local units of government in accessing grant 
12.23 	information and applications for competitive 
12.24 	grants; the telephone hotline and Web site 
12.25 	shall be implemented and operating by July 
12.26 	15, 2009; and
12.27 	(5) the dissemination of information about 
12.28 	contract and employment opportunities 
12.29 	generated by the programs. Particular effort 
12.30 	must be made to publicize employment, 
12.31 	job training, home energy auditing, 
12.32 	weatherization, outreach, and other 
12.33 	opportunities to community organizations, 
12.34 	nongovernmental organizations, and media 
12.35 	outlets that target disadvantaged groups, 
13.1 	including, but not limited to, low-income, 
13.2 	rural, tribal communities, and communities 
13.3 	of color.
13.4 	Contracts funded in whole or in part by this 
13.5 	act must ensure that bidding contractors 
13.6 	are qualified and participate in available 
13.7 	apprenticeship and training programs. 
13.8 	Bidding for contracts must, to the extent 
13.9 	practicable, use the process established in 
13.10 	Minnesota Statutes, chapter 16C.

13.11 	Sec. 4. [216C.147] SCHOOL DISTRICT AND LOCAL GOVERNMENT 
13.12 	RENEWABLE ENERGY GRANT PROGRAM.
13.13 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
13.14 	this subdivision have the meanings given them.
13.15 	(b) "Local government" means a home rule charter or statutory city, county, park 
13.16 	district, port authority, or town.
13.17 	(c) "Renewable energy systems" mean solar thermal water heating, solar electric or 
13.18 	photovoltaic equipment, wind energy conversion systems of 3.3 megawatts nameplate 
13.19 	capacity or less, and heating and cooling applications using geothermal energy.
13.20 		Subd. 2.Program established. The commissioner of commerce shall develop, 
13.21 	implement, and administer a school district and local government renewable energy 
13.22 	system grant program under this section.
13.23 		Subd. 3.Grant purposes. The commissioner may make grants to school districts 
13.24 	and local government to finance the purchase and installation of renewable energy systems.
13.25 		Subd. 4.Technical standards. The commissioner shall determine technical 
13.26 	standards for renewable energy systems to qualify for grants under this section.
13.27 		Subd. 5.Grant proposals. At least once a year, the commissioner shall publish in 
13.28 	the State Register a request for proposals from local governments and school districts for a 
13.29 	grant under this section. Within 45 days after the deadline for receipt of proposals, the 
13.30 	commissioner shall select grant proposals based on the following criteria:
13.31 	(1) the reliability and cost-effectiveness of the renewable technology to be installed 
13.32 	under the proposal, including integration of energy storage;
13.33 	(2) the extent to which the proposal effectively integrates with the conservation 
13.34 	and energy efficiency programs of the energy utilities serving the local government or 
13.35 	school district;
14.1 	(3) the extent to which the local government or school district has maximized other 
14.2 	cost-effective energy efficiency and conservation improvements;
14.3 	(4) the total life-cycle energy use and greenhouse gas emissions reductions per 
14.4 	dollar of installed cost;
14.5 	(5) the geographic distribution of grant recipients throughout the state;
14.6 	(6) the percentage of total project cost requested; and
14.7 	(7) other criteria the commissioner may determine to be necessary and appropriate.
14.8 		Subd. 6.Educational programming. A school district must integrate information 
14.9 	about the renewable energy system for which a grant is received under this section in its 
14.10 	educational programming.
14.11 		Subd. 7.Minnesota product preference. A contract for the purchase of renewable 
14.12 	energy systems or related services to be paid from grant money provided under this section 
14.13 	must be awarded to the best value bidder having its principal place of business in this state 
14.14 	or who uses a majority of parts manufactured or produced in this state in the assembly 
14.15 	of a final product, unless the local government or school district grantee determines that 
14.16 	it would be inconsistent with the public interest, the cost would be unreasonable, or the 
14.17 	products or materials of the class or kind to be used are not produced or manufactured in 
14.18 	this state in commercial quantities and of a satisfactory quality.
14.19 		Subd. 8.Grant terms. The maximum grant to a school district or local government 
14.20 	under this section may not exceed the greater of 50 percent of the total project cost for 
14.21 	solar projects, 20 percent of the total project cost for wind projects, or $10,000.

14.22 	Sec. 5. LOCAL GOVERNMENT AND SCHOOL DISTRICT BUILDING 
14.23 	RENOVATIONS.
 14.24 	The commissioner of commerce must coordinate the use of stimulus money with 
14.25 	the public building enhanced energy-efficiency program under Minnesota Statutes, 
14.26 	section 216C.43. The commissioner shall prioritize buildings identified as high energy 
14.27 	users for improvements such as lighting upgrades, energy recommissioning, and 
14.28 	other cost-effective energy projects that are ready for immediate implementation. 
14.29 	Energy-efficiency conservation block grants and state energy program money may be 
14.30 	used to advance local public building enhanced energy-efficiency program projects by 
14.31 	either increasing the net operating savings during the prepayment period or by decreasing 
14.32 	the number of years for payback of energy improvement investments. State energy 
14.33 	plan money may not be used to pay more than 25 percent of the total project cost, with 
14.34 	the balance of funding provided by the local governmental unit or school district, the 
14.35 	local public building enhanced energy-efficiency program under Minnesota Statutes, 
15.1 	section 216C.43, or another local governmental unit or school district financing program 
15.2 	in conjunction with utility conservation investment program money to the maximum 
15.3 	extent possible. The commissioner shall coordinate with the commissioner of education to 
15.4 	prioritize school district projects, consistent with the principles of statewide geographic 
15.5 	distribution of projects, optimized energy savings, and an improved learning environment 
15.6 	for school children.

15.7 	Sec. 6. STATE GOVERNMENT BUILDING RENOVATIONS.
 15.8 	The commissioner of commerce, in consultation with the commissioner of 
15.9 	administration, shall develop a joint plan and procedures to select, fund, and implement 
15.10 	state government building renovation projects using federal stimulus money. The joint 
15.11 	plan and procedures shall prioritize buildings identified as high energy users for such 
15.12 	improvements as lighting upgrades, energy recommissioning, and other cost-effective 
15.13 	energy projects that are ready for immediate implementation. Energy-efficiency 
15.14 	conservation block grants and state energy program money may be used to advance public 
15.15 	building enhanced energy-efficiency program projects under Minnesota Statutes, section 
15.16 	16B.32, by either increasing the net operating savings during the repayment period 
15.17 	or decreasing the number of years for payback of energy improvement investments, 
15.18 	provided that state energy plan money may not be used to pay more than 25 percent 
15.19 	of the total project cost, with the balance of funding provided through the state public 
15.20 	building enhanced energy-efficiency program, or other financing, including conservation 
15.21 	investment program money to the maximum extent possible.
15.22 	Grants under this section may be used to develop a system and procedures for 
15.23 	setting energy reduction goals for state buildings; to automate utility bill data and analysis; 
15.24 	and to develop a system for reporting monthly energy use relative to these goals. By 
15.25 	January 15, 2011, and annually thereafter, the director of the Office of Energy Security, in 
15.26 	consultation with the commissioner of administration, must issue a report to the chairs and 
15.27 	ranking minority members of the senate and house of representatives committees having 
15.28 	jurisdiction over energy policy and finance on the progress toward these goals.

15.29 	Sec. 7. APPLIANCE REPLACEMENT.
 15.30 	To the extent consistent with federal law, the commissioner of commerce may use 
15.31 	federal stimulus money to develop a program that supplements and enhances the rebates 
15.32 	provided to residential utility customers through a conservation investment program.

15.33 	Sec. 8. TRAINING AND WORKFORCE DEVELOPMENT.
 16.1 		Subdivision 1.Home energy auditors and technicians. The director of the Office 
16.2 	of Energy Security shall oversee training of energy auditors necessary for energy projects 
16.3 	using federal stimulus money and may spend federal stimulus money for that purpose. 
16.4 	Technical skills training must include insulation, air sealing, and mechanical work. 
16.5 		Subd. 2.Energy manager and building operator training. The director of the 
16.6 	Office of Energy Security shall coordinate and monitor training and certification of energy 
16.7 	managers, building operators, and other energy professionals necessary for energy projects 
16.8 	using federal stimulus money and may spend federal stimulus money for that purpose. 
16.9 	Training strategies must be designed to meet the wide range of facilities managers and the 
16.10 	wide range of buildings sizes and types. 
16.11 		Subd. 3.Training activity guidelines. In addition to training individuals already 
16.12 	employed in implementing energy programs, the director shall recruit individuals 
16.13 	for training to perform work in energy projects using federal stimulus money who 
16.14 	are unemployed, especially targeting unemployed or underemployed individuals in 
16.15 	construction trades and crafts, and communities experiencing disproportionately high rates 
16.16 	of unemployment, including, but not limited to, low-income, rural, tribal communities, and 
16.17 	communities of color. The director shall use the full capacity of current training providers, 
16.18 	including, but not limited to, state colleges and universities, opportunities industrialization 
16.19 	centers, skilled trades labor unions, and nonprofit organizations with historic expertise 
16.20 	in energy efficiency. Training may include an on-the-job component where the trainee 
16.21 	goes to job sites with trained crews. If the director determines that outreach efforts are 
16.22 	necessary for the weatherization program, the director shall, at least in part, use paid and 
16.23 	volunteer youth to perform the outreach. The director shall ensure that training money is 
16.24 	made available to persons who otherwise would be unable to afford the training.

16.25 	Sec. 9. OFFICE OF ENERGY SECURITY; LOCAL GOVERNMENT 
16.26 	ASSISTANCE.
 16.27 	The director of the Office of Energy Security shall designate personnel and may 
16.28 	contract to provide advice and assistance to local units of government receiving federal 
16.29 	stimulus money, particularly smaller cities. The director shall develop, by contract 
16.30 	or otherwise, strategies that local units of government can use to obtain maximum 
16.31 	conservation and economic development returns from federal stimulus money. The 
16.32 	director shall work with associations of local governmental units to notify local 
16.33 	governments of the availability of advice under this section.

17.1 	Sec. 10. COMPETITIVE ENERGY GRANTS; STATE AND LOCAL 
17.2 	GOVERNMENT AUTHORIZATION.
 17.3 	All state agencies and local units of government, in addition to any other authority, 
17.4 	are authorized to engage in activities individually and in cooperation with other public or 
17.5 	private entities to apply for, accept, and spend competitive grants made available under 
17.6 	the American Recovery and Reinvestment Act of 2009, subject to Minnesota Statutes, 
17.7 	section 3.3005.

17.8 	Sec. 11. CONSERVATION IMPROVEMENT PLANS; FEDERAL STIMULUS 
17.9 	PLAN.
 17.10 	The commissioner of commerce must consider the impact of federal stimulus money 
17.11 	in the administration of the conservation improvement program (CIP) under Minnesota 
17.12 	Statutes, section 216B.241. The commissioner may amend plans currently in effect and 
17.13 	approve plans to accommodate federal stimulus money.

17.14 	Sec. 12. ACCOUNTABILITY AND TRANSPARENCY REPORTING.
 17.15 	The director of the Office of Energy Security, after compiling information supplied 
17.16 	by the commissioners of administration, education, and employment and economic 
17.17 	development, and the Office of Higher Education, shall report on the progress of the 
17.18 	programs funded by this act to the house of representatives and senate committees with 
17.19 	jurisdiction over energy finance and workforce development policy by September 1, 
17.20 	2009, January 15, 2010, April 1, 2010, and September 1, 2010. The report shall include a 
17.21 	complete accounting of all federal stimulus money spent on the programs funded to the 
17.22 	extent allowable by federal law, including, but not limited to:
17.23 	(1) the specific projects funded, including the location, building owner, and project 
17.24 	manager;
17.25 	(2) for weatherization projects, the number of units weatherized, including number 
17.26 	of rental units weatherized, energy usage information, income data, and type, cost, and 
17.27 	funding source of the weatherization measure installed; 
17.28 	(3) the number of jobs retained or created by each project, including data on hiring 
17.29 	from communities experiencing disproportionately high rates of unemployment, including, 
17.30 	but not limited to, low-income, rural, tribal communities, and communities of color;
17.31 	(4) the total calculated and actual energy savings for each project;
17.32 	(5) the remaining balances in each stimulus account;
17.33 	(6) the nonstimulus money leveraged by stimulus money for each project;
18.1 	(7) the training courses provided, including the location and provider of courses 
18.2 	offered, the funding source for each training course, and the total number of trainees; and
18.3 	(8) compliance with state prevailing wage, veterans, and disadvantaged business 
18.4 	enterprise requirements.
18.5 	The reports shall be made available to the public on the Office of Energy Security Web site.

18.6 	Sec. 13. COMPETITIVE ENERGY ACTIVITIES.
 18.7 	The director of the Office of Energy Security shall coordinate state and local 
18.8 	government efforts to obtain competitive grants for energy-related purposes authorized 
18.9 	by the American Recovery and Reinvestment Act of 2009, including, without 
18.10 	limitation, grants from the Office of Electricity Delivery and Energy Reliability for grid 
18.11 	modernization and related technologies. The director must consult with affected public 
18.12 	or private entities, including utilities, to identify grant opportunities and timely develop 
18.13 	grant applications for those opportunities. The director may assign staff and contract with 
18.14 	public or private third parties to assess grant opportunities, prepare grant applications, and 
18.15 	participate in the grant process.

18.16 	Sec. 14. EFFECTIVE DATE.
 18.17 	Sections 1 to 13 are effective the day following final enactment.