1.1 	A bill for an act
1.2 	relating to energy; providing funding for certain
1.3 	biomass-fueled community energy systems; authorizing
1.4 	the sale of state bonds; appropriating money.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. BIOMASS-FUELED COMMUNITY ENERGY SYSTEMS;
1.7 	APPROPRIATION.
 1.8 		Subdivision 1.Appropriation. $1,000,000 is appropriated
1.9 	from the bond proceeds fund to the commissioner of commerce for
1.10 	grants to fund predesign costs of four to five biomass-fueled,
1.11 	municipal and state college or university-owned community
1.12 	heating and cooling systems.  Grant money shall be used to cover:
1.13 	(1) preliminary planning to determine the economic,
1.14 	engineering, and environmental feasibility of the project;
1.15 	(2) other preliminary investigation studies; and 
1.16 	(3) surveys, designs, specifications, and other actions
1.17 	necessary to the planning, design, and future construction of
1.18 	the project.
1.19 	The fuel source for the projects must be biomass that is
1.20 	procured in an environmentally sustainable manner.  Eligible
1.21 	biomass includes sustainably harvested agricultural and forest
1.22 	residues, waste wood, mill residues, biogas, and dedicated
1.23 	energy crops.
1.24 	Existing community energy systems seeking upgrades, as well
1.25 	as new projects, are eligible to apply.
2.1 	Projects planning for future conversion to cogeneration and
2.2 	projects seeking federal matching funds shall be given
2.3 	preference.
2.4 	Proposals submitted by interested municipalities or state
2.5 	colleges and universities will be evaluated by a technically
2.6 	knowledgeable, nonpartisan organization, such as the United
2.7 	States Department of Energy's National Renewable Energy
2.8 	Laboratory.
2.9 		Subd. 2.Bond sale. To provide the money appropriated in
2.10 	this act from the bond proceeds fund, the commissioner of
2.11 	finance shall sell and issue bonds of the state in an amount up
2.12 	to $1,000,000 in the manner, upon the terms, and with the effect
2.13 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675,
2.14 	and by the Minnesota Constitution, article XI, sections 4 to 7.

2.15 	Sec. 2. EFFECTIVE DATE.
 2.16 	This act is effective the day following final enactment.