1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 6571.2A bill for an act1.3relating to energy; providing direction for the use of federal stimulus money 1.4for energy programs; appropriating money;proposing coding for new law in 1.5Minnesota Statutes, chapter 216C.1.6May 15, 20091.7The Honorable James P. Metzen1.8President of the Senate1.9The Honorable Margaret Anderson Kelliher1.10Speaker of the House of Representatives1.11We, the undersigned conferees for S.F. No. 657 report that we have agreed upon the 1.12items in dispute and recommend as follows:1.13That the House recede from its amendments and that S.F. No. 657 be further 1.14amended as follows:1.15Delete everything after the enacting clause and insert:1.16"ARTICLE 11.17DEFINITIONS; LEGISLATIVE NOTICE1.18    Section 1. FEDERAL STIMULUS FUNDING.1.19    Subdivision 1.Definitions.For the purposes of articles 1 to 6, the following terms 1.20have the meanings given them.1.21(a) "Act" means the American Recovery and Reinvestment Act of 2009, Public Law 1.22111-5, unless the reference is to "this act," which refers to articles 1 to 7.1.23(b) "Commissioner" means the commissioner of commerce.1.24(c) "Stimulus funding" or "funding" means funding provided to the state under 1.25the act for:1.26(1) energy efficiency and conservation block grants authorized under subtitle E of 1.27title V of the federal Energy Independence and Security Act of 2007, United States Code, 1.28title 42, section 17151, et seq.;2.1(2) the Weatherization Assistance Program authorized under part A of title IV of the 2.2federal Energy Conservation and Production Act, United States Code, title 42, section 2.36861, et seq.; and2.4(3) the State Energy Program authorized under part D of title III of the federal 2.5Energy Policy and Conservation Act, United States Code, title 42, section 6321, et seq.2.6(d) "Windows" or "energy-efficient windows" means new or replacement windows 2.7that are Energy Star qualified under federal guidelines or for windows for nonresidential 2.8structures it means windows of reasonably similar energy performance to Energy Star 2.9windows.2.10    Subd. 2.Stimulus funding allocation.To the extent consistent with the act and 2.11other federal law and regulations, stimulus funding must be allocated and expended as 2.12provided under this act.2.13    Subd. 3.Administrative costs.The commissioner may spend no more than five 2.14percent of the funds expended on programs under articles 2 to 4 for administrative costs of 2.15the programs. 2.16    Subd. 4.Contractors; bidding.Contracts funded in whole or in part under articles 2.172 to 4 must, to the extent practicable, ensure that bidding contractors are qualified and 2.18participate in available apprentice and training programs for all work performed. Bidding 2.19for contracts must, to the extent practicable, use the process established in Minnesota 2.20Statutes, section 16C.16, subdivisions 4, 5, 6, and 7, except that subdivision 12 does 2.21not apply.2.22    Sec. 2. LEGISLATIVE NOTICE.2.23The commissioner shall notify the chairs and ranking minority members of the 2.24senate and house of representatives committees with primary jurisdiction over energy 2.25policy and finance when releasing a request for proposals or awarding a grant greater than 2.26$25,000 for a grant program authorized under articles 2 to 4.2.27ARTICLE 22.28ENERGY EFFICIENCY2.29    Section 1. WEATHERIZATION.2.30    Subdivision 1.Priority.Priority must be given to serving the largest number of new 2.31weatherization clients consistent with federal eligibility requirements.2.32    Subd. 2.Rental units.The commissioner shall attempt to increase the number 2.33of low-income rental units weatherized.3.1    Subd. 3.Shelters.A shelter, as defined in Code of Federal Regulations, title 10, 3.2section 440.3, is eligible to receive weatherization assistance under this section.3.3    Subd. 4.Income eligibility.Income eligibility limits for participants in the 3.4weatherization assistance program shall be the highest level allowed under federal law. 3.5The commissioner shall in a timely manner take all actions necessary to implement this 3.6requirement.3.7    Subd. 5.Solar heat.An individual who receives assistance to provide solar 3.8heat through the Renewable Energy Equipment Program is eligible for weatherization 3.9assistance under this section, provided that the individual meets all other eligibility 3.10requirements for receiving weatherization assistance.3.11    Subd. 6.Federal waiver.The commissioner shall apply for a waiver or otherwise 3.12seek authority from the United States Department of Energy to use funds under this section 3.13to weatherize abandoned and foreclosed residential properties acquired and rehabilitated 3.14with funds provided through the federal Neighborhood Stabilization Program.3.15    Subd. 7.Payments authorized.Notwithstanding Minnesota Statutes, section 3.1616A.15, subdivision 3, the commissioner may make payment to a weatherization service 3.17provider for allowable and eligible costs incurred for planning, capacity expansion, 3.18workforce mobilization, and training activities. Payment may be made for costs incurred 3.19on or after the effective date of an amendment to the weatherization service provider's 3.20contract that obligates the provider to comply with the requirements of the act.3.21    Sec. 2. RESIDENTIAL ENERGY EFFICIENCY PROGRAMS.3.22The commissioner shall coordinate with the Minnesota Housing Finance Agency 3.23to use stimulus funds in conjunction with the Minnesota Housing Finance Agency's 3.24financing programs, including, but not limited to, loans, grants, and rebates, and additional 3.25programs the Minnesota Housing Finance Agency or other entities may develop to finance 3.26energy efficiency improvements in dwellings, including the purchase and installation of 3.27energy efficient windows. Financing programs for which there is market demand must 3.28be prioritized.3.29    Sec. 3. INNOVATIVE ENERGY RESIDENTIAL EFFICIENCY PROGRAM.3.30    Subdivision 1.Program.The commissioner shall make a grant to a city of the first 3.31class located in the service area of Minnesota Power for an innovative residential energy 3.32efficiency program that must coordinate its activities with the state energy program, local 3.33government unit, weatherization program, utility conservation improvement program, and 4.1private nonprofit funding sources. Stimulus funds must be matched $1 for every $4 of 4.2stimulus funds granted under this section and are available to the extent of the match. The 4.3program must include the following elements:4.4(1) provision of basic residential energy conservation measures;4.5(2) provision of more comprehensive residential energy conservation measures, 4.6including extensive retrofits and appliance upgrades;4.7(3) a plan to establish a revolving loan fund so that the program is sustainable over 4.8time; and4.9(4) innovative financing options allowing residents to finance energy efficiency 4.10improvements, at least in part, with energy savings.4.11    Subd. 2.Report.By January 15, 2010, and October 30, 2010, the city must submit 4.12a report measuring and assessing the program's effectiveness and energy savings to the 4.13commissioner and the chairs and ranking minority members of the senate and house of 4.14representatives committees with primary jurisdiction over energy policy and finance.4.15    Sec. 4. SMALL CITY ENERGY EFFICIENCY GRANT.4.16    Subdivision 1.Program.The commissioner shall make a grant for an innovative 4.17residential energy efficiency program in a small rural city with a population under 4,000 4.18located  in the service area of Minnesota Power that is currently working with that utility, 4.19the county  housing and redevelopment authority, and other state and local housing 4.20organizations to enhance energy efficiency for residents and businesses. Stimulus funds 4.21must be matched $1 for every $4 of stimulus funds granted under this section and are 4.22available to the extent of the match. The program must include the following elements:4.23(1) provision of basic residential energy conservation measures;4.24(2) provision of more comprehensive residential energy conservation measures, 4.25including extensive  retrofits and appliance upgrades;4.26(3) a plan to establish a revolving loan fund so that the program is sustainable over 4.27time; and4.28(4) innovative financing options allowing residents to finance energy efficiency 4.29improvements, at least in part, with energy savings.4.30    Subd. 2.Report.By January 15, 2010, and October 30, 2010, the city must submit 4.31a report  measuring and assessing the program's effectiveness and energy savings to the 4.32commissioner and the chairs and ranking minority members of the senate and house of 4.33representatives committees with primary jurisdiction over energy policy and finance.5.1    Sec. 5. OUTREACH ACTIVITIES TO INCREASE RESIDENTIAL 5.2PARTICIPATION IN ENERGY EFFICIENCY ACTIVITIES.5.3In order to maximize the number of new households participating in programs 5.4delivering residential energy conservation services under this act, the commissioner shall 5.5use stimulus funds to award grants on a competitive basis by September 1, 2009, to one 5.6or more organizations that are experienced in conducting outreach activities to partner 5.7with nonprofit and community organizations. Outreach activities must include, without 5.8limitation, households in low-income areas, small cities, and rural communities, and must 5.9reach all regions of the state. The methods used to contact households may include, 5.10but are not limited to, direct contact with households, advertising in traditional and 5.11nontraditional media, distribution of literature, presence at community events, partnering 5.12with community organizations, and other innovative measures. The commissioner 5.13may contract to coordinate outreach efforts with a community-based organization with 5.14demonstrated regional or statewide capacity, including an organization established under 5.15Minnesota Statutes, section 216C.385.5.16    Sec. 6. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS 5.17TO LOCAL GOVERNMENTS.5.18The commissioner shall award grants to local units of government to enhance 5.19energy efficiency and reduce energy use. Energy efficiency and conservation block 5.20grant funds may be used for grants for activities including, but not limited to, planning, 5.21consultant services, energy audits, implementing energy-efficient building codes and 5.22inspection services, and energy efficiency renovations, including window replacement, 5.23street lighting, and the installation of renewable energy devices used in public buildings. 5.24Grants may only be made to local units of government not receiving direct federal energy 5.25efficiency and conservation block grant stimulus funding.5.26    Sec. 7. LOCAL GOVERNMENT AND SCHOOL DISTRICT RENOVATIONS.5.27(a) The commissioner shall award grants to local governments and school districts to 5.28make energy efficiency improvements in existing local government and school district 5.29facilities. The use of stimulus funds must be coordinated with the local public building 5.30enhanced energy efficiency program under Minnesota Statutes, section 216C.43, or other 5.31available financing programs.5.32(b) The commissioner shall prioritize lighting upgrades, energy-efficient windows, 5.33energy recommissioning, and other cost-effective energy projects that are ready for 5.34immediate implementation.6.1(c) The commissioner may require a local government or school district, as a 6.2condition of receiving a grant, to commit to implement future activities, including but not 6.3limited to staff training, that are designed to create additional energy or operating savings 6.4to the local government.6.5(d) The commissioner shall coordinate with the Department of Education to 6.6prioritize school district projects for funding under this section, consistent with the 6.7principles of statewide geographic distribution of projects, optimized energy savings, and 6.8an improved learning environment for schoolchildren.6.9    Sec. 8. STATE GOVERNMENT BUILDING RENOVATIONS.6.10(a) The commissioner shall use stimulus funds to renovate state government 6.11buildings to enhance energy efficiency. The commissioner and the commissioner of 6.12administration shall select, fund, and implement state government building renovation 6.13projects using federal stimulus money. Priority must be given to lighting upgrades, 6.14window repair and replacement with energy-efficient windows, energy recommissioning, 6.15and other cost-effective energy projects that are ready for immediate implementation.6.16(b) In addition to other uses, funds may be used to advance public building enhanced 6.17energy efficiency program projects under Minnesota Statutes, section 16B.322, and for 6.18grants for a portion of costs incurred by state agencies in implementing energy efficiency 6.19improvements not part of that program.6.20(c) Funds may be used to develop a system and procedures to set energy-reduction 6.21goals for state buildings, to automate utility bill data and analysis, to develop a system for 6.22reporting monthly energy use relative to these state building energy-reduction goals, and 6.23to install individual metering devices for separate buildings.6.24(d) The Department of Administration may require a state agency, as a condition of 6.25receiving stimulus funds under this section, to commit to implement future energy-savings 6.26activities, including but not limited to staff training, that are designed to create additional 6.27energy or operating savings to the state agency.6.28(e) By January 15, 2011, and annually thereafter, the commissioner, in consultation 6.29with the commissioner of administration, must issue a report to the chairs and ranking 6.30minority members of the senate and house of representatives committees having 6.31jurisdiction over energy policy and finance on the activities and energy savings under 6.32this section.6.33    Sec. 9. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision 6.34to read:7.1    Subd. 4a.Financing agreement.The commissioner of administration may, in 7.2connection with a financing agreement, covenant in a master lease-purchase agreement 7.3that the state will abide by the terms and provisions that are customary in net lease or 7.4lease-purchase transactions including, but not limited to, covenants providing that the state:7.5(1) will maintain insurance as required under the terms of the lease agreement;7.6(2) is responsible to the lessor for any public liability or property damage claims or 7.7costs related to the selection, use, or maintenance of the leased equipment, to the extent of 7.8insurance or self-insurance maintained by the lessee, and for costs and expenses incurred 7.9by the lessor as a result of any default by the lessee;7.10(3) authorizes the lessor to exercise the rights of a secured party with respect to the 7.11equipment subject to the lease in the event of default by the lessee and, in addition, for 7.12the present recovery of lease rentals due during the current term of the lease as liquidated 7.13damages.7.14    Sec. 10. Minnesota Statutes 2008, section 16B.322, is amended by adding a 7.15subdivision to read:7.16    Subd. 4b.Master lease-purchase agreements not debt.A tax-exempt 7.17lease-purchase agreement related to a financing agreement does not constitute or create a 7.18general or moral obligation or indebtedness of the state in excess of the money from time 7.19to time appropriated or otherwise available for the payment of rent coming due under the 7.20lease, and the state has no continuing obligation to appropriate money for the payment 7.21of rent or other obligations under the lease. Rent due under a master lease-purchase 7.22agreement during a current lease term for which money has been appropriated is a current 7.23expense of the state. 7.24    Sec. 11. Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision 7.25to read:7.26    Subd. 4c.Budget offset.The commissioner of finance shall reduce the operating 7.27budgets of state agencies that use the master lease-purchase program under a financial 7.28agreement. The amount of the reduction is the amount sufficient to make the actual 7.29master lease payments.7.30    Sec. 12. ENERGY TECHNOLOGY TRANSFER CENTER.7.31The commissioner shall award a grant to a nonprofit organization with extensive 7.32experience in the delivery of energy-efficient programs and technical analysis to develop 7.33an energy technology transfer center in this state.8.1    Sec. 13. NATIONAL ENERGY EFFICIENCY CENTER.8.2(a) The commissioner shall develop a plan for a national energy efficiency center in 8.3this state to test energy efficiency equipment and systems to measure actual energy savings 8.4performance, to provide an ongoing assessment of energy efficiency best practices, and 8.5to coordinate with appropriate public and private entities to disseminate information 8.6and provide training on technology developments and best practices. In developing a 8.7plan, the commissioner shall collaborate with stakeholders, including but not limited 8.8to, the Center for Energy and the Environment, the Minnesota Center for Engineering 8.9and Manufacturing Excellence, and the Minnesota Technical Assistance Program at the 8.10University of Minnesota.8.11(b) The commissioner shall apply for a grant to create a national energy efficiency 8.12center in Minnesota if the federal Department of Energy or other entity makes funding 8.13available for that purpose.8.14ARTICLE 38.15RENEWABLE ENERGY8.16    Section 1. DEFINITIONS.8.17For the purposes of articles 3 and 4:8.18(1) "renewable energy" or "renewable energy system" means an energy technology 8.19that generates electricity or thermal energy from the following sources:8.20(i) solar; 8.21(ii) wind; 8.22(iii) hydroelectric with a capacity of less than 100 megawatts; 8.23(iv) hydrothermal;8.24(v) hydrogen, provided that after January 1, 2010, the hydrogen must be generated 8.25from the resources listed in this item;8.26(vi) biomass, which includes, without limitation, landfill gas; rotating woody crops; 8.27crop residues; an anaerobic digester system; biomass gasification; the predominantly 8.28organic components of wastewater effluent, sludge, or related by-products from publicly 8.29owned treatment works, but not including incineration of (A) wastewater sludge or related 8.30by-products from publicly owned treatment works; (B) mixed municipal solid waste; or 8.31(C) refuse-derived fuel from mixed municipal solid waste;8.32(vii) a district energy system fueled primarily by biomass;8.33(2) "solar energy" has the meaning given to "qualifying solar energy project" in 8.34section 216B.2411, subdivision 2, paragraph (d);9.1(3) "solar electric" has the meaning given to "qualifying solar electric project" 9.2in section 216B.2411, subdivision 2, paragraph (f), except that the 100-kilowatt peak 9.3generating capacity limit does not apply; and9.4(4) "solar thermal" has the meaning given to "qualifying solar thermal project" in 9.5section 216B.2411, subdivision 2, paragraph (e).9.6    Sec. 2. RENEWABLE ELECTRIC GENERATION AND GEOTHERMAL 9.7FACILITY REBATES.9.8(a) The commissioner shall award rebates to qualifying facilities that generate 9.9electricity from renewable energy or provide heating and cooling from a geothermal 9.10system and that:9.11(1) begin operation after July 1, 2009; and 9.12(2) provide electricity or heating and cooling to:9.13(i) a homeowner's primary residence; or9.14(ii) a business with 20 or fewer full-time employees.9.15(b) The owner of a qualifying facility may apply to the commissioner for a rebate 9.16of the lesser of $10,000 for homeowners or $25,000 for businesses or 35 percent of the 9.17cost of the qualifying facility, including installation costs.9.18(c) The commissioner shall award rebates only from funds appropriated for that 9.19purpose and to the extent of those appropriations. Rebates must be made to eligible 9.20applicants in the order of the time of receipt of a complete application.9.21(d) For purposes of this section, "qualifying facility" means an electric generation 9.22facility with a capacity of less than 40 kilowatts that generates electricity from a renewable 9.23energy source or a geothermal system that provides heating and cooling.9.24    Sec. 3. SOLAR REBATE PROGRAM.9.25The commissioner shall award rebates to homeowners and businesses that install 9.26solar energy projects.9.27    Sec. 4. SOLAR CITIES PROGRAM.9.28The commissioner shall award grants to local units of government for the installation 9.29of large and small-scale solar electric or thermal projects, including innovative energy 9.30storage technology, in a geographically-concentrated area. The project must leverage 9.31funds from the federal Department of Energy to demonstrate the impacts of these projects 9.32on the electric grid, and the costs and benefits to ratepayers. The commissioner may 9.33develop matching requirements for these solar projects in order to maximize job creation 9.34and renewable energy development.10.1    Sec. 5. SCHOOL DISTRICT AND LOCAL GOVERNMENT RENEWABLE 10.2ENERGY GRANT PROGRAM.10.3    Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in 10.4this subdivision have the meanings given them.10.5(b) "Local government" means a public school district, home rule charter or statutory 10.6city, county, regional government, park district, port authority, or town.10.7    Subd. 2.Program established.The commissioner shall award grants to units of 10.8local government to finance the purchase and installation of a renewable energy system or 10.9a geothermal heating and cooling system under this section.10.10    Subd. 3.Grant proposals.The commissioner shall publish in the State Register 10.11a request for proposals from local governments for a grant under this section. Within 10.1260 days after the deadline for receipt of proposals, the commissioner shall select grant 10.13proposals based on the following criteria:10.14(1) the reliability and cost-effectiveness of the renewable technology to be installed 10.15under the proposal, including integration of energy storage;10.16(2) the extent to which the proposal effectively integrates with the conservation 10.17and energy efficiency programs of the energy utilities serving the local government or 10.18school district;10.19(3) the extent to which the local government or school district has maximized other 10.20cost-effective energy efficiency and conservation improvements;10.21(4) the total life-cycle energy use and greenhouse gas emissions reductions per 10.22dollar of installed cost;10.23(5) the geographic distribution of grant recipients throughout the state;10.24(6) the percentage of total project cost requested; 10.25(7) the extent to which the proposal uses parts manufactured or produced in the 10.26state in the assembly of a final product; and10.27(8) other criteria the commissioner may determine to be necessary and appropriate.10.28    Subd. 4.Educational programming.A school district must integrate information 10.29about the renewable energy system for which a grant is received under this section in its 10.30educational programming.10.31    Subd. 5.Grant terms.The maximum grant to a local government under this 10.32section may not exceed:10.33(1) for solar electric projects greater than or equal to 100 kilowatts rated capacity, 10.34the lesser of 40 percent of total project cost or $200,000;11.1(2) for solar electric projects less than 100 kilowatts rated capacity, the lesser of 40 11.2percent of total project cost or $100,000;11.3(3) for wind projects greater than or equal to 40 kilowatts rated capacity, the lesser of 11.435 percent of total project cost or $150,000;11.5(4) for wind projects less than 40 kilowatts rated capacity, the lesser of 35 percent 11.6of total project cost or $25,000;11.7(5) for geothermal energy projects, the lesser of 35 percent of total project cost or 11.8$100,000;11.9(6) for solar thermal projects, the lesser of 50 percent of total project cost or 11.10$75,000; or11.11(7) for combined heat and power projects and district energy projects, the lesser of 11.1235 percent of total project cost or $200,000.11.13    Sec. 6. EMERGING RENEWABLE ENERGY INDUSTRIES GRANT 11.14PROGRAM.11.15    Subdivision 1. Definitions.(a) For the purposes of this section, the terms defined in 11.16this subdivision have the meanings given them.11.17(b) "Eligible business" means an organization that is engaged in or will engage in the 11.18manufacture of renewable energy systems, energy storage systems, or geothermal energy 11.19systems for heating and cooling, or components for renewable energy systems, energy 11.20storage systems, or geothermal energy systems for heating and cooling.11.21    Subd. 2.Program established.The commissioner shall use stimulus funds under 11.22this section to award grants to an eligible business.11.23    Subd. 3.Grant purpose.The commissioner may make grants to eligible businesses 11.24to assist in the development of renewable energy systems, energy storage systems, 11.25geothermal energy systems for heating and cooling, and businesses that manufacture 11.26components for these types of energy systems in this state.11.27    Subd. 4.Applications.An applicant shall prepare and submit to the commissioner a 11.28written proposal detailing how the applicant will meet the purpose of the grant program 11.29and will meet the criteria listed in subdivision 5. An applicant must submit information 11.30that demonstrates the financial viability of the eligible business.11.31    Subd. 5.Selection criteria.When awarding grants, the commissioner shall consider 11.32whether the applicant's proposal will:11.33(1) help establish Minnesota as a center for the manufacturing of renewable energy, 11.34energy storage, or geothermal system parts and systems;12.1(2) leverage both private funds and other public funds, including federal programs;12.2(3) develop renewable energy, energy storage, or geothermal technology supplier 12.3activity in this state;12.4(4) increase manufacturing that promotes or advances the green economy, as defined 12.5in section 116J.437, subdivision 1; and12.6(5) create jobs that will contribute to the green economy as defined in section 12.7116J.437, subdivision 1, including jobs in rural areas and areas with high unemployment.12.8    Sec. 7. CONVERSION OF FORMER SCHOOL TO RENEWABLE ENERGY 12.9BUSINESS CENTER.12.10The commissioner shall award a grant to the city of Kennedy to convert a former 12.11school building to use wind, solar, and geothermal energy and to house a renewable 12.12energy business center.12.13    Sec. 8. SOLAR ELECTRIC INSTALLATIONS.12.14    A contract, grant, loan, or other financial assistance for solar electric installations 12.15must to the extent practicable:12.16    (1) require payment at the prevailing wage rate as defined in Minnesota Statutes, 12.17section 177.42;12.18    (2) require that the installation of all listed electrical equipment is performed by 12.19licensed contractors;12.20    (3) be awarded to the best value bidder as defined in Minnesota Statutes, chapter 12.2116C; and12.22(4) require that the bid performance criteria must include, but are not limited to:12.23(i) the vendor's or contractor's primary place of business be located within the state;12.24(ii) a description of the vendor's or contractor's experience installing solar systems 12.25and the quality of those installations; and12.26(iii) the possession by the vendor's or contractor's key personnel of an installer's 12.27certification from a nationally recognized solar certification body.12.28ARTICLE 412.29COMMERCIAL AND INDUSTRIAL SECTOR ENERGY PROJECTS12.30    Section 1. GRANTS TO COMMERCIAL AND INDUSTRIAL FACILITIES.12.31(a) The commissioner shall award a grant to a port authority located in the electric 12.32service area of the electric utility with the largest number of commercial and industrial 12.33customers in this state for a program to provide for the design, financing, and installation 12.34of energy efficiency improvements and renewable energy systems in commercial facilities, 13.1industrial facilities, and facilities owned by a nonprofit organized under section 501(c)(3) 13.2of the Internal Revenue Code. Program financing must include a revolving loan fund 13.3component.13.4(b) Grant recipients may enter into agreements necessary to develop and implement 13.5a program under this section. A grant recipient may use up to two percent of the grant 13.6award for administrative costs of the energy project.13.7(c) A utility participating in projects receiving a grant under this section is entitled 13.8to claim the project's energy savings toward its energy savings goal under Minnesota 13.9Statutes, section 216B.241, subdivision 1c.13.10    Sec. 2. ENERGY PROGRAMS IN COMMERCIAL AND INDUSTRIAL 13.11BUILDINGS.13.12(a) The commissioner shall award grants to economic development authorities or 13.13to owners of commercial and industrial facilities and facilities owned by a nonprofit 13.14organized under section 501(c)(3) of the Internal Revenue Code for the purpose of:13.15(1) installing energy efficiency improvements;13.16(2) installing devices that use renewable energy sources to generate electricity or to 13.17heat or cool a building; or13.18(3) a geothermal system for heating and cooling.13.19(b) To be eligible to receive a grant, a project funded under this section must begin 13.20operation after July 1, 2009.13.21(c) The commissioner shall provide forms for grant applications.13.22(d) The commissioner shall make a grant to a county economic development 13.23authority for development of a biomass energy facility, which has completed an economic 13.24and technical feasibility study, including a market potential and cellulosic feedstock 13.25analysis. The county in which the facility will be located must include an investor-owned 13.26utility, municipal utility, and cooperative electric association, and it must have adopted an 13.27essential services and transmission services ordinance as of May 15, 2009.13.28(e) Grants may also be made to improve the energy efficiency of facilities to displace 13.29fossil fuel energy inputs with energy derived from renewable resources via anaerobic 13.30digestion, biomass gasification, or other technologies, for combined heat and power or 13.31district energy system projects; or for projects using hydrothermal or geothermal energy in 13.32an integrated system for cooling, heating, and generating electricity. Grants may not be 13.33made under this paragraph for projects involving the combustion of mixed municipal solid 13.34waste or refuse-derived fuel from mixed municipal solid waste.13.35(f) The maximum grant award under this section is $500,000.14.1(g) When awarding grants under this section the commissioner shall consider:14.2(1) job retention and creation;14.3(2) improved energy efficiency and increased renewable energy production capacity;14.4(3) coordination with and leveraging of other resources to increase the total benefits 14.5derived from stimulus funding;14.6(4) timely implementation of funded activities;14.7(5) long-term sustainability of benefits derived from stimulus funds;14.8(6) geographic distribution across the state; 14.9(7) compliance with the disadvantaged business enterprise requirements in 14.10Minnesota Statutes, section 16C.16, subdivisions 4, 5, 6, and 7, except that subdivision 12 14.11does not apply; and14.12(8) ensuring that projects are cost effective and maximize energy savings per dollar 14.13of stimulus funding expended.14.14ARTICLE 514.15MISCELLANEOUS14.16    Section 1. TRAINING AND WORKFORCE DEVELOPMENT.14.17    Subdivision 1.Training plan and procedures.(a) The commissioner, in 14.18conjunction with the Department of Employment and Economic Development, the Office 14.19of Higher Education, and Minnesota State Colleges and Universities shall develop and 14.20implement a plan and procedures to:14.21(1) train energy professionals needed to implement the energy programs described 14.22in articles 2 to 4, including but not limited to energy auditors, energy managers, and 14.23building operators;14.24(2) coordinate, oversee, and monitor the training and certification of energy 14.25professionals;14.26(3) allocate stimulus funding for the purposes of clauses (1) and (2) and to training 14.27providers; and14.28(4) provide energy code compliance and enforcement training necessary to comply 14.29with section 410 of the American Recovery and Reinvestment Act of 2009, Public Law 14.30111-5.14.31(b) Training strategies must be designed to meet the wide range of facilities 14.32managers and building sizes and types, and must protect the occupational health and 14.33safety of workers employed on these energy projects. Technical skills training must 14.34include insulation, air sealing, and mechanical work. Training may include an on-the-job 14.35component where the trainee travels to job sites with trained crews.15.1(c) The plan must include procedures to:15.2(1) train individuals already employed in implementing energy programs;15.3(2) recruit individuals to be trained to perform work in energy projects using 15.4stimulus funding who are unemployed, especially targeting communities experiencing 15.5disproportionately high rates of unemployment, including, but not limited to, low-income, 15.6youth, rural, or tribal communities and individuals in construction trades and crafts;15.7(3) ensure that the full capacity of current training providers is utilized, including, 15.8but not limited to, opportunities industrialization centers, skilled trades labor unions, tribal 15.9colleges or nonprofits working in tribal communities, community action partnerships, 15.10utility companies, higher education institutions, and nonprofit organizations with 15.11demonstrated expertise in energy efficiency;15.12(4) publicize job and contract opportunities through cost-effective dissemination via 15.13traditional and nontraditional media outlets, including, but not limited to, public service 15.14announcements and radio advertisements; and15.15    (5) disseminate information about contract and employment opportunities generated 15.16by the programs. Particular effort must be made to publicize employment, job training, 15.17home energy auditing, weatherization, outreach, and other opportunities to community 15.18organizations, nongovernmental organizations, and media outlets that target disadvantaged 15.19groups, including, but not limited to, low-income, rural, tribal communities, and 15.20communities of color.15.21    Subd. 2.Training access and affordability.(a) Unless prohibited by federal law 15.22or rule, and notwithstanding any other training funds available or expended for energy 15.23programs, the commissioner shall ensure access to and affordability of training for 15.24low-income persons who otherwise would be unable to afford the training, by providing 15.25funding to:15.26(1) prepare low-income persons for residential weatherization jobs; and 15.27(2) support job training opportunities for low-income persons in residential and 15.28commercial energy efficiency and renewable energy-related trades.15.29(b) Funds expended under this subdivision may not exceed the amount necessary to 15.30train persons for the total number of green jobs created. The Department of Commerce 15.31shall work with the Department of Employment and Economic Development to maximize 15.32receipt of federal stimulus funding available for training and workforce development 15.33through the Workforce Investment Act.15.34(c) Training funds for residential weatherization jobs must be provided to 15.35weatherization service providers to partner with apprenticeship or similar on-the-job 15.36training programs and existing training providers, including, but not limited to, state 16.1colleges, opportunities industrialization centers, skilled trades labor unions, and nonprofit 16.2organizations with historic expertise in energy efficiency. 16.3(d) Training funds to support residential and commercial energy efficiency and 16.4renewable energy-related trades must be distributed through a competitive application 16.5process. 16.6(e) The expenditure of funds under this subdivision must be consistent with 16.7performance goals, timeframes, and all other requirements under federal and state law 16.8governing the expenditure of federal stimulus money.16.9    Sec. 2. ACCOUNTABILITY AND TRANSPARENCY REPORTING.16.10The commissioner, after compiling information supplied by the commissioners of 16.11administration, education, and employment and economic development, and the Office 16.12of Higher Education, shall report on the progress of the programs funded by this act to 16.13the house of representatives and senate committees with jurisdiction over energy finance 16.14and workforce development policy by September 1, 2009, January 15, 2010, April 1, 16.152010, and September 1, 2010. The report must include a complete accounting of all 16.16federal stimulus money spent on the programs funded to the extent allowable by federal 16.17law, including, but not limited to:16.18(1) the specific projects funded, including the building owner and project manager, 16.19and, for nonresidential projects only, the project location;16.20(2) for weatherization projects, the number of units weatherized, including number 16.21of rental units weatherized, energy usage information, income data, and type, cost, and 16.22funding source of the weatherization measure installed;16.23(3) the number of jobs retained or created by each project, including data on hiring 16.24from communities experiencing disproportionately high rates of unemployment, including, 16.25but not limited to, low-income, rural, tribal communities, and communities of color;16.26(4) the total calculated and actual energy savings for each project;16.27(5) the remaining balances in each stimulus account;16.28(6) the nonstimulus money leveraged by stimulus money for each project;16.29(7) the training courses provided, including the location and provider of courses 16.30offered, the funding source for each training course, and the total number of trainees; and16.31(8) compliance with state prevailing wage, veterans, and disadvantaged business 16.32enterprise requirements.16.33The reports must be made available to the public on the Office of Energy Security 16.34Web site.16.35    Sec. 3. COMPETITIVE ENERGY ACTIVITIES.17.1(a) The commissioner shall coordinate state and local government efforts to obtain 17.2competitive grants for energy-related purposes authorized by the American Recovery 17.3and Reinvestment Act of 2009. The commissioner shall consult with affected public or 17.4private entities, including utilities, to identify grant opportunities and develop timely grant 17.5applications to take advantage of those opportunities. The commissioner shall assess and 17.6publicize grant opportunities, assist state and local government entities to prepare grant 17.7applications, and provide other assistance the commissioner determines to be appropriate.17.8(b) The commissioner shall provide timely information on grant opportunities 17.9through the Minnesota Energy Information Center telephone hotline and Web site to 17.10assist the public and local units of government in accessing applications and information 17.11regarding competitive grants under this act.17.12ARTICLE 617.13APPROPRIATIONS17.14    Section 1. WEATHERIZATION ASSISTANCE PROGRAM APPROPRIATION.17.15Of the funds available to the state of Minnesota from the federal stimulus funding for 17.16the weatherization assistance program under the American Recovery and Reinvestment 17.17Act of 2009, Public Law 111-5, $131,937,411 is appropriated to the commissioner of 17.18commerce. The funds must be administered consistent with the requirements in article 17.192, section 1. Of this amount, $250,000 is for participation outreach activities in article 17.202, section 5; and $1,000,000 is for training and workforce development consistent with 17.21article 5, section 1, subdivision 2.17.22    Sec. 2. ENERGY EFFICIENCY AND CONSERVATION BLOCK PROGRAM 17.23APPROPRIATION.17.24Of the funds available to the state of Minnesota from the federal stimulus funding 17.25for the Energy Efficiency and Conservation Block Grant Program under the American 17.26Recovery and Reinvestment Act of 2009, Public Law 111-5, $10,644,100 is appropriated 17.27to the commissioner of commerce. The appropriation must be distributed as follows:17.28(1) $6,386,460 is for energy efficiency grants to local government in article 2, 17.29section 6; and17.30(2) $4,257,640 is for energy efficiency grants to local government and school district 17.31buildings consistent with the requirements in article 2, section 7.17.32    Sec. 3. STATE ENERGY PROGRAM APPROPRIATION.17.33    Subdivision 1.Appropriation.Of the funds available to the state of Minnesota 17.34from the federal stimulus funding for the State Energy Program under the American 18.1Recovery and Reinvestment Act of 2009, Public Law 111-5, $54,172,000 is appropriated 18.2to the commissioner of commerce. Of this amount:18.3(1)$8,750,000 is for energy efficiency projects in local government and school 18.4district buildings consistent with the requirements in article 2, section 7;18.5(2) $6,922,000 is for energy efficiency projects in state government buildings 18.6consistent with the requirements of article 2, section 8;18.7(3) $7,900,000 is for residential energy efficiency programs consistent with the 18.8requirements in article 2, section 2. Of this amount, $250,000 is for participation outreach 18.9activities in article 2, section 5;18.10(4) $1,600,000 is for innovative energy residential efficiency programs consistent 18.11with the requirements in article 2, sections 3 and 4. Of this amount, $1,500,000 is for a 18.12program for a large city, and $100,000 is for a program for a small city;18.13(5) $1,000,000 is for training and workforce development consistent with article 5, 18.14section 1, subdivision 2;18.15(6) $1,500,000 is for training and workforce development consistent with article 5, 18.16section 1, subdivision 1;18.17(7) $5,000,000 is for renewable and geothermal rebates consistent with the 18.18requirements of article 3, sections 2 and 3. Of this amount, at least $3,000,000 is for 18.19solar rebates in article 3, section 3;18.20(8) $3,000,000 is for a grant to local units of government for solar energy projects 18.21consistent with the requirements of article 3, section 4;18.22(9) $6,500,000 is for grants to install renewable energy in local government and 18.23school buildings consistent with the requirements of article 3, section 5;18.24(10) $2,000,000 is for emerging renewable energy industries consistent with the 18.25requirements of article 3, section 6;18.26(11) $5,000,000 is for a grant to a port authority for energy efficiency and renewable 18.27energy in commercial and industrial buildings consistent with article 4, section 1;18.28(12) $4,500,000 is for commercial and industrial building energy grants for 18.29renewables and efficiency consistent with the requirements of article 4, section 2. Of this 18.30amount, $150,000 is for a grant under article 4, section 2, paragraph (d); and18.31(13) $500,000 is for the energy technology transfer center in article 2, section 12.18.32    Subd. 2.Reallocation process.(a) The commissioner may reallocate funds under 18.33subdivision 1 if the United States Department of Energy does not approve a program for 18.34which funds are allocated or if the commissioner determines that:18.35(1) there is insufficient demand to effectively expend all funds allocated to a program;19.1(2) the funds as allocated are unlikely to result in achievement of the goals of the 19.2funding; or19.3(3) the funds as allocated are unlikely to attain results that exceed the minimum 19.4performance requirements established by the federal Department of Energy.19.5(b) Before reallocating funds, the commissioner shall:19.6(1) provide public notice of intent to reallocate funds;19.7(2) accept public comment on a proposed reallocation for no fewer than 15 business 19.8days; and19.9(3) submit a report on the proposed reallocation to the chairs and ranking minority 19.10members of the senate and house of representatives committees with primary jurisdiction 19.11over energy policy and finance. The report must include the reason for reallocation, a 19.12summary of activities and expenditures to market and stimulate demand for the program 19.13whose funds are to be reallocated, the amount to be reallocated, the program to which 19.14funds will be reallocated, and the public comments submitted.19.15(c) The commissioner may reallocate funds 15 business days after submission of the 19.16report required under paragraph (b), clause (3).19.17ARTICLE 719.18EFFECTIVE DATE19.19    Section 1. EFFECTIVE DATE.19.20This act is effective the day following final enactment."19.21Delete the title and insert:19.22"A bill for an act19.23relating to energy; providing direction for the use of federal stimulus money for 19.24energy programs; appropriating money; amending Minnesota Statutes 2008, 19.25section 16B.322, by adding subdivisions."
         		We request the adoption of this report and repassage of the bill.Senate Conferees: (Signed) Ellen Anderson, Yvonne Prettner Solon, Gary Kubly, Steve Dille, Sandy RummelHouse Conferees: (Signed) Jeremy Kalin, Bill Hilty, Brita Sailer, Kathy Brynaert, Denny McNamara

20.1We request the adoption of this report and repassage of the bill.20.2Senate Conferees:(Signed)20.3
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                     						20.4Ellen AndersonYvonne Prettner Solon20.5
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                     						20.6Gary KublySteve Dille20.7
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                     						20.8Sandy Rummel20.9House Conferees:(Signed)20.10
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                     						20.11Jeremy KalinBill Hilty20.12
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                     						20.13Brita SailerKathy Brynaert20.14
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                     						20.15Denny McNamara