HF 1842

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/09/2020 04:55pm

A bill for an act
relating to energy; modifying the solar energy incentive program; establishing
various renewable energy and electric vehicle grant programs; requiring reports;
appropriating money; amending Minnesota Statutes 2019 Supplement, section
116C.7792; proposing coding for new law in Minnesota Statutes, chapter 216C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2019 Supplement, section 116C.7792, is amended to read:

116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

new text begin (a) new text end The utility subject to section 116C.779 shall operate a program to provide solar
energy production incentives for solar energy systems of no more than a total aggregate
nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided that the aggregate capacity of all systems at the customer location does
not exceed 40 kilowatts.

new text begin (b) new text end The program deleted text begin shall be operated for eight consecutive calendar years commencing in
2014. $5,000,000 shall be allocated in each of the first four years, $15,000,000 in the fifth
year, $10,000,000 in each of the sixth and seventh years, and $5,000,000 in the eighth year
from funds deleted text end new text begin is funded by money new text end withheld from transfer to the renewable development account
under section 116C.779, subdivision 1, paragraphs (b) and (e) deleted text begin , and deleted text end new text begin . Program funds must
be new text end placed in a separate account for the purpose of the solar production incentive program
operated by the utility and not for any other program or purpose.

new text begin (c) The following amounts are allocated for the solar production incentive program:
new text end

new text begin (1) funds allocated to the program in 2019 but that remain unspent;
new text end

new text begin (2) $3,000,000 in 2020, in addition to any allocation required by statute that was
previously made in 2020;
new text end

new text begin (3) $15,000,000 in 2021;
new text end

new text begin (4) $9,000,000 in 2022;
new text end

new text begin (5) $9,000,000 in 2023; and
new text end

new text begin (6) in 2024, any unspent amount remaining from program years 2020 through 2023.
new text end

Any unspent amount allocated deleted text begin in the fifth deleted text end new text begin during a specific program new text end year is available deleted text begin until
December 31 of the sixth year deleted text end new text begin for use during any subsequent program year new text end . Any unspent
amount remaining deleted text begin at the end of any other allocation year deleted text end new text begin on January 1, 2025, new text end must be
transferred to the renewable development account.

new text begin (d) new text end The solar system must be sized to less than 120 percent of the customer's on-site
annual energy consumption when combined with other distributed generation resources and
subscriptions provided under section 216B.1641 associated with the premise. The production
incentive must be paid for ten years commencing with the commissioning of the system.

new text begin (e) new text end The utility must file a plan to operate the program with the commissioner of
commerce. The utility may not operate the program until it is approved by the commissioner.
A change to the program to include projects up to a nameplate capacity of 40 kilowatts or
less does not require the utility to file a plan with the commissioner. Any plan approved by
the commissioner of commerce must not provide an increased incentive scale over prior
years unless the commissioner demonstrates that changes in the market for solar energy
facilities require an increase.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [216C.376] SOLAR FOR SCHOOLS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The utility subject to section 116C.779 must
operate a program to develop, and to supplement with additional funding, financial
arrangements that allow schools to benefit from state and federal tax and other financial
incentives that schools are ineligible to receive directly, in order to enable schools to install
and operate solar energy systems that can be used as teaching tools and integrated into the
school curriculum.
new text end

new text begin Subd. 2. new text end

new text begin Required plan. new text end

new text begin (a) By October 1, 2020, the public utility must file a plan for
the solar for schools program with the commissioner. The plan must contain but is not
limited to:
new text end

new text begin (1) a description of how entities that are eligible to take advantage of state and federal
tax and other financial incentives that reduce the cost to purchase, install, and operate a
solar energy system that schools are ineligible to take advantage of directly can share a
portion of the financial benefits with schools where a solar energy system is proposed to
be installed;
new text end

new text begin (2) a description of how the public utility intends to use funds appropriated to the program
under this section to provide additional financial assistance to schools where a solar energy
system is proposed to be installed;
new text end

new text begin (3) certification that the financial assistance provided under this section to a school by
the public utility must include the full value of the renewable energy certificates associated
with electricity generation by the solar energy system receiving financial assistance under
this section over the lifetime of the solar energy system;
new text end

new text begin (4) an estimate of the amount of financial assistance the public utility provides to a
school under clauses (1) to (3) on a per kilowatt-hour produced basis and the length of time
financial assistance is provided;
new text end

new text begin (5) certification that the transaction between the public utility and the school for electricity
uses a buy-all/sell-all method by which the public utility charges the school for all electricity
the school consumes at the applicable retail rate schedule for sales to the school based on
the school's customer class, and credits or pays the school at the rate established in
subdivision 6;
new text end

new text begin (6) administrative procedures governing the application and financial benefit award
process, and the costs the public utility and the department are projected to incur to administer
the program;
new text end

new text begin (7) the public utility's proposed process to periodically reevaluate and modify the
program; and
new text end

new text begin (8) any additional information required by the commissioner.
new text end

new text begin (b) The public utility must not implement the program until the commissioner approves
the public utility's plan submitted under this subdivision. The commissioner must approve
a plan submitted under this subdivision that the commissioner determines is in the public
interest no later than December 31, 2020. Any proposed modifications to the plan approved
under this subdivision must be approved by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin System eligibility. new text end

new text begin A solar energy system is eligible to receive financial benefits
under this section if:
new text end

new text begin (1) the solar energy system is located on or adjacent to a school building receiving retail
electric service from the public utility and completely located within the public utility's
electric service territory, provided that any land situated between the school building and
the site where the solar energy system is installed is owned by the school district where the
school building operates;
new text end

new text begin (2) any energy storage system that is part of a solar energy system only stores energy
generated by an existing solar energy system serving the school or the solar energy system
receiving financial assistance under this section; and
new text end

new text begin (3) the total aggregate nameplate capacity of all distributed generation serving the school
building, including any subscriptions to a community solar garden under section 216B.1641,
does not exceed the lesser of one megawatt alternating current or 120 percent of the school
building's average annual electric energy consumption.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin (a) A school seeking financial assistance under this section
must submit an application to the public utility, including a plan for how the school plans
to use the solar energy system as a visible learning tool for students, teachers, and visitors
to the school, and how the solar energy system may be integrated into the school's curriculum.
new text end

new text begin (b) The public utility must award financial assistance under this section on a first-come,
first-served basis.
new text end

new text begin (c) The public utility must discontinue accepting applications under this section after
all funds appropriated under section 10, subdivision 1, are allocated to program participants,
including funds from canceled projects.
new text end

new text begin Subd. 5. new text end

new text begin Benefits information. new text end

new text begin Before signing an agreement with the public utility to
receive financial assistance under this section, a school must obtain from the developer and
provide to the public utility information the developer shared with potential investors in the
project regarding future financial benefits to be realized from installation of a solar energy
system at the school, including potential financial risks.
new text end

new text begin Subd. 6. new text end

new text begin Purchase rate; cost recovery; renewable energy credits. new text end

new text begin (a) The public utility
must purchase all of the electricity generated by a solar energy system receiving financial
assistance under this section at a rate of $0.105 per kilowatt-hour generated.
new text end

new text begin (b) Payments by the public utility of the rate established under this subdivision to a
school receiving financial assistance under this section are fully recoverable by the public
utility through the public utility's fuel clause adjustment.
new text end

new text begin (c) The renewable energy credits associated with the electricity generated by a solar
energy system installed under this section are the property of the public utility subject to
this section.
new text end

new text begin Subd. 7. new text end

new text begin Limitation. new text end

new text begin (a) No more than 50 percent of the financial assistance provided
by the public utility to schools under this section may be provided to schools where the
proportion of students eligible for free and reduced-price lunch under the National School
Lunch Program is less than 50 percent.
new text end

new text begin (b) No more than ten percent of the total amount of financial assistance provided by the
public utility to schools under this section may be provided to schools that are part of the
same school district.
new text end

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance to
help schools develop and execute projects under this section.
new text end

new text begin Subd. 9. new text end

new text begin Application deadline. new text end

new text begin A public utility must not accept an application submitted
under this section after December 31, 2024.
new text end

new text begin Subd. 10. new text end

new text begin Prevailing wage. new text end

new text begin Any project receiving an appropriation under this section
that entails construction, installation, remodeling, or repairs is subject to the requirements
of sections 177.30 and 177.41 to 177.45, and any laborers and mechanics working at a
project work site subject to this subdivision must be paid the prevailing wage rate, as defined
in section 177.42, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [216C.401] ELECTRIC VEHICLE REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraphs (a) and (b), clause (3).
new text end

new text begin (c) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership are intended to be transferred other than the right to use the vehicle for a term
of at least 24 months.
new text end

new text begin (d) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
new text end

new text begin (e) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
new text end

new text begin (f) "Used eligible electric vehicle" means an eligible electric vehicle that has previously
been registered in a state.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin The purchaser or lessee of an electric vehicle is eligible for a rebate,
subject to the amounts and limits in subdivisions 3 and 5, if:
new text end

new text begin (1) the electric vehicle:
new text end

new text begin (i) has not been modified from the original manufacturer's specifications; and
new text end

new text begin (ii) is purchased or leased after the effective date of this act for use by the purchaser or
lessee and not for resale;
new text end

new text begin (2) the purchaser:
new text end

new text begin (i) is a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a),
when the electric vehicle is purchased, and is an individual whose annual income is below
$164,000 or who is a member of a household whose annual household income is below
$273,470;
new text end

new text begin (ii) is a business that has a valid address in Minnesota from which business is conducted;
new text end

new text begin (iii) is a nonprofit corporation incorporated under chapter 317A; or
new text end

new text begin (iv) is a political subdivision of the state; and
new text end

new text begin (3) the purchaser or lessee:
new text end

new text begin (i) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from Minnesota; and
new text end

new text begin (ii) registers the electric vehicle in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Rebate amounts. new text end

new text begin (a) A $2,500 rebate may be issued under this section to an
eligible purchaser or lessee for the purchase or lease of a new eligible electric vehicle.
new text end

new text begin (b) A $500 rebate may be issued under this section to an eligible purchaser or lessee for
the purchase or lease of a used eligible electric vehicle, provided the electric vehicle has
not previously been registered in Minnesota.
new text end

new text begin (c) A purchaser or lessee whose household income at the time the electric vehicle is
purchased or leased is less than 150 percent of the current federal poverty guidelines
established by the Department of Human Services is eligible for a supplemental rebate, in
addition to the rebate in paragraph (a) or (b), in the amount of $500 for a new eligible electric
vehicle and $250 for a used eligible electric vehicle.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenses. new text end

new text begin Appropriations made to support activities under this section
must be expended only to pay:
new text end

new text begin (1) rebates to eligible purchasers or lessees of eligible electric vehicles; and
new text end

new text begin (2) the department's reasonable costs to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin (a) The number of rebates allowed under this section are limited to:
new text end

new text begin (1) no more than one rebate per resident per household; and
new text end

new text begin (2) no more than one rebate per business entity per year.
new text end

new text begin (b) A rebate must not be issued under this section for an electric vehicle with a
manufacturer's suggested retail price that exceeds $60,000.
new text end

new text begin Subd. 6. new text end

new text begin Program administration. new text end

new text begin (a) Rebate applications under this section must be
filed with the commissioner on a form developed by the commissioner.
new text end

new text begin (b) The commissioner must develop administrative procedures governing the application
and rebate award process. Applications must be reviewed and rebates awarded by the
commissioner on a first-come, first-served basis.
new text end

new text begin (c) The commissioner may reduce the rebate amounts provided under subdivision 3 or
restrict program eligibility based on fund availability.
new text end

new text begin (d) The commissioner must, in coordination with sellers of electric vehicles and other
state agencies as applicable, develop a procedure to allow a rebate to be used by an eligible
purchaser at the point of sale so that the rebate amount may be subtracted from the eligible
electric vehicle's selling price.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2025.
new text end

Sec. 4.

new text begin [216C.402] GRANT PROGRAM; MANUFACTURERS' CERTIFICATION
OF AUTO DEALERS TO SELL ELECTRIC VEHICLES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established in the Department of
Commerce to award grants to dealers to offset the dealer's costs to obtain for salespersons,
employees who repair vehicles, and other dealer employees the training required by electric
vehicle manufacturers in order to certify a dealer to sell electric vehicles produced by the
manufacturer.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin Application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support activities under this
section must be used only to:
new text end

new text begin (1) reimburse a dealer for reasonable costs to obtain training and certification for the
dealer's employees from the electric vehicle manufacturer that awarded the franchise to the
dealer; and
new text end

new text begin (2) pay the department's reasonable costs to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A grant awarded under this section to a single dealer must not
exceed $40,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [216C.403] ELECTRIC VEHICLE PUBLIC CHARGING STATION GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
new text end

new text begin (c) "Electric vehicle charging station" means infrastructure that recharges an electric
vehicle's batteries by connecting the electric vehicle to:
new text end

new text begin (1) a level two charger that provides a 208- or 240-volt alternating current power source;
or
new text end

new text begin (2) a DC fast charger that has an electric output of 20 kilowatts or greater.
new text end

new text begin (d) "Park-and-ride facility" has the meaning given in section 174.256, subdivision 2,
paragraph (b).
new text end

new text begin (e) "Public electric vehicle charging station" means an electric vehicle charging station
located at a publicly available parking space.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin (a) The commissioner must award grants to help fund the installation
of a network of public electric vehicle charging stations in areas located outside the retail
electric service area of the public utility subject to section 116C.779, subdivision 1, including
locations in state and regional parks, trailheads, and park-and-ride facilities. The
commissioner must issue a request for proposals to entities that have experience installing,
owning, operating, and maintaining electric vehicle charging stations. The request for
proposals must establish technical specifications that electric vehicle charging stations are
required to meet.
new text end

new text begin (b) The commissioner must consult with (1) the commissioner of natural resources to
develop optimal locations for electric vehicle charging stations in state and regional parks,
and (2) the commissioner of transportation to develop optimal locations for electric vehicle
charging stations at park-and-ride facilities.
new text end

new text begin (c) A person charging a privately owned electric vehicle from a charging station whose
construction is supported by a grant under this section must pay for the electricity consumed
by the electric vehicle.
new text end

new text begin Subd. 3. new text end

new text begin Prevailing wage. new text end

new text begin Any project receiving an appropriation under this section
that entails construction, installation, remodeling, or repairs is subject to the requirements
of sections 177.30 and 177.41 to 177.45, and any laborers and mechanics working at a
project work site subject to this subdivision must be paid the prevailing wage rate, as defined
in section 177.42, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text begin SMALL-AREA CLIMATE MODEL PROJECTIONS FOR MINNESOTA.
new text end

new text begin (a) The Board of Regents of the University of Minnesota must conduct a study that
produces climate model projections for the entire state of Minnesota, in blocks as small as
three square miles in area.
new text end

new text begin (b) At a minimum, the study must:
new text end

new text begin (1) use resources at the Minnesota Supercomputing Institute to analyze high-performing
climate models under moderate and high greenhouse gas emissions scenarios and develop
a series of projections of temperature, wind speed, precipitation, snow cover, and a variety
of other climate parameters over the rest of this century;
new text end

new text begin (2) downscale the climate impact results under clause (1) to areas as small as three square
miles;
new text end

new text begin (3) develop a publicly accessible data portal website to (i) allow other universities,
nonprofit organizations, businesses, and government agencies to use the model projections,
and (ii) educate and train users how to make best use of the data;
new text end

new text begin (4) incorporate information on how to use the model results in the University of
Minnesota Extension's existing online climate adaptation training; and
new text end

new text begin (5) hold at least two "train the trainer" workshops for state agencies, municipalities, and
others to educate colleagues how to use and interpret the data for climate adaptation efforts.
new text end

new text begin (c) Beginning July 1, 2021, and continuing each July 1 through 2023, the University of
Minnesota must provide a written report to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over agriculture,
energy, and environment. The report must document the progress made on the study and
study results, and must note any obstacles encountered that could prevent successful
completion of the study.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text begin ELECTRIC SCHOOL BUS DEMONSTRATION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Electric school bus" means a school bus powered solely by an electric motor drawing
current from rechargeable storage batteries, fuel cells, or other portable sources of electric
current.
new text end

new text begin (c) "Electric vehicle charging station" means infrastructure that recharges an electric
vehicle's batteries by connecting the electric vehicle to:
new text end

new text begin (1) a level 2 charger that provides a 240-volt alternating current power source; or
new text end

new text begin (2) a DC fast charger that has an electric output of 20 kilowatts or greater.
new text end

new text begin (d) "Private school bus contractor" means a person who contracts with a school district
to transport school district students to and from school and school activities on school buses
owned and operated by the person.
new text end

new text begin (e) "School bus" has the meaning given in Minnesota Statutes, section 169.011,
subdivision 71. School bus does not include a type III vehicle, as defined in Minnesota
Statutes, section 169.011, subdivision 71, paragraph (h).
new text end

new text begin (f) "School district" means an independent or special school district.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The commissioner of education must award grants to school districts
to purchase an electric school bus as a demonstration project that enables the school district,
the electric utility serving the school district, and, if applicable, the private school bus
contractor providing transportation services to the school district to gain experience operating
an electric school bus and to assess its performance.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin A school district located within the electric retail service area of
the public utility subject to Minnesota Statutes, section 116C.779, subdivision 1, that owns
and operates school buses or contracts with a private school bus contractor is eligible to
apply for a grant under this section.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin An eligible applicant must submit an application to the
commissioner of education on a form designated by the commissioner of education. The
commissioner of education must develop administrative procedures governing the application
and grant award process.
new text end

new text begin Subd. 5. new text end

new text begin Application content. new text end

new text begin An application for a grant under this section must include:
new text end

new text begin (1) the name of the school district or districts where the electric school bus proposes to
operate;
new text end

new text begin (2) a description of the route, timing of operation, number of students transported, and
other factors affecting the performance characteristics that an electric school bus performance
must meet;
new text end

new text begin (3) certification from the electric utility serving the school district, and, if applicable,
the private school bus contractor providing transportation services to the school district,
that the electric utility and private school bus contractor fully support and are full partners
in implementing the demonstration project, including a list of tasks the electric utility and
private school bus contractor commit to conduct and any voluntary financial contributions
to the project;
new text end

new text begin (4) certification from the electric utility serving the school district that it commits to pay
the costs to purchase and install an electric vehicle charging station in a convenient location
to recharge the batteries of the electric school bus;
new text end

new text begin (5) evidence that the proposed electric school bus has access to an electric vehicle
charging station at a convenient location;
new text end

new text begin (6) if the school district contracts with a private school bus contractor:
new text end

new text begin (i) a copy of a signed agreement between the school district and the private school bus
contractor that protects the state's interest in the electric school bus purchased with the grant
in the event the private school bus contractor's contract with the school district is terminated
or other contingencies occur; and
new text end

new text begin (ii) written certification that any revenues paid to the private school bus contractor by
the utility providing retail electric service to the private school bus contractor that result
from the purchase of or access to the electricity stored in the batteries of the electric school
bus purchased with a grant under this section must be forwarded to the school district; and
new text end

new text begin (7) any additional information required by the commissioner of education.
new text end

new text begin Subd. 6. new text end

new text begin Eligible expenditures. new text end

new text begin Grant funds awarded under this section may be expended
to:
new text end

new text begin (1) purchase an electric school bus;
new text end

new text begin (2) pay the cost of electricity to charge the batteries of the electric school bus; and
new text end

new text begin (3) pay repair and maintenance costs for the electric school bus.
new text end

new text begin Subd. 7. new text end

new text begin Reports. new text end

new text begin On or before the first anniversary of the date a school bus funded by
a grant under this section is initially operated, and on or before the same date in each of the
following two years, the school district awarded the grant, in collaboration with the electric
utility serving the school district, and, if applicable, the private school bus contractor
providing transportation services to the school district, must submit a report describing the
performance of the electric school bus to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over energy policy,
transportation policy, and education policy and to the commissioner of education. At a
minimum, the report must contain the following information regarding the performance of
the electric school bus:
new text end

new text begin (1) the number of miles traveled per day and per year;
new text end

new text begin (2) the cost to recharge the electric school bus, and any steps taken to minimize the costs
by charging at off-peak times;
new text end

new text begin (3) operating costs per mile;
new text end

new text begin (4) miles driven per kilowatt hour;
new text end

new text begin (5) the number of days the electric school bus was out of service for repairs;
new text end

new text begin (6) discussion of the qualitative aspects of performance, including the impact of extreme
cold on bus performance; and
new text end

new text begin (7) any other information deemed relevant by the school district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text begin METROPOLITAN COUNCIL; ELECTRIC BUS PURCHASES.
new text end

new text begin After the effective date of this act and until the appropriation made in section 10,
subdivision 8, is exhausted, any bus purchased by the Metropolitan Council for Metro
Transit bus service must operate solely on electricity provided by rechargeable on-board
batteries. The appropriation in section 10, subdivision 8, must be used to pay the incremental
cost of buses that operate solely on electricity provided by rechargeable on-board batteries
over diesel-operated buses that are otherwise comparable in size, features, and performance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

new text begin PRAIRIE ISLAND NET ZERO PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The Prairie Island Net Zero Project is established
with the goal of the Prairie Island Indian Community developing an energy system that
results in net zero emissions.
new text end

new text begin Subd. 2. new text end

new text begin Grant. new text end

new text begin The commissioner of commerce must enter into a grant contract with
the Prairie Island Indian Community to provide the amount appropriated under section 10,
subdivision 12, to stimulate research, development, and implementation of renewable energy
projects benefiting the Prairie Island Indian Community or its members. Any examination
conducted by the commissioner of commerce to determine the sufficiency of the financial
stability and capacity of the Prairie Island Indian Community to carry out the purposes of
this grant is limited to the Community Services Department of the Prairie Island Indian
Community.
new text end

new text begin Subd. 3. new text end

new text begin Plan; report. new text end

new text begin (a) The Prairie Island Indian Community must file a
comprehensive project plan with the commissioner of commerce and the legislative
committees with jurisdiction over energy policy no later than July 1, 2021, describing the
Prairie Island Net Zero Project elements and implementation strategy, including the total
cost and timelines for project completion.
new text end

new text begin (b) The Prairie Island Indian Community must file a report with the commissioner of
commerce and the legislative committees with jurisdiction over energy policy on July 1,
2022, and each July 1 thereafter until the project is complete, describing the progress made
in implementing the project and the uses of expended funds. A final report must be completed
within 90 days of the date the project is complete.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2020.
new text end

Sec. 10. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Solar for schools. new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (j), $16,000,000 in fiscal year 2021 is appropriated from the
renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the public utility that is
subject to Minnesota Statutes, section 216C.376, to award grants and financial assistance
to schools under the solar for schools program under Minnesota Statutes, section 216C.376.
This appropriation is onetime and is available until June 30, 2024.
new text end

new text begin Subd. 2. new text end

new text begin Electric vehicle rebates. new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (j), $11,000,000 in fiscal year 2021 is appropriated from the
renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to award rebates to eligible electric vehicle
purchasers under Minnesota Statutes, section 216C.401. Appropriations under this
subdivision must be used to award rebates to eligible purchasers who reside within the retail
electric service area of the public utility subject to Minnesota Statutes, section 116C.779,
subdivision 1. This appropriation is onetime and is available until June 30, 2024.
new text end

new text begin Subd. 3. new text end

new text begin Electric vehicle charging stations. new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $3,500,000 in fiscal year 2021 is appropriated
from the renewable development account established in Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of commerce to award grants to install electric
vehicle charging stations under Minnesota Statutes, section 216C.403. Appropriations under
this subdivision must be used to award grants to install electric vehicle charging stations
within the retail electric service area of the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1.
new text end

new text begin (b) Up to $600,000 of the appropriation under paragraph (a) may be used to fund electric
vehicle charging stations in state and regional parks and up to $100,000 may be used to
fund electric vehicle charging stations in park-and-ride facilities. Unexpended funds under
this paragraph may be used to fund electric vehicle charging stations in state and regional
parks or park-and-ride facilities. This appropriation is onetime and is available until June
30, 2024.
new text end

new text begin Subd. 4. new text end

new text begin Electric vehicle dealer grants. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $1,000,000 in fiscal year 2021 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to award rebates to eligible electric vehicle
dealers under Minnesota Statutes, section 216C.402. Appropriations under this subdivision
must be used to award rebates to eligible electric vehicle dealers located within the retail
electric service area of the public utility subject to Minnesota Statutes, section 116C.779,
subdivision 1. This is a onetime appropriation and is available until June 30, 2026.
new text end

new text begin Subd. 5. new text end

new text begin Solar incentive program. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $15,000,000 in fiscal year 2021 is appropriated
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to a public utility that is subject
to Minnesota Statutes, section 116C.779, subdivision 1, to provide solar energy incentives
under Minnesota Statutes, section 116C.7792. This appropriation must be expended by June
30, 2024.
new text end

new text begin Subd. 6. new text end

new text begin Localized climate study. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $547,000 in fiscal year 2021 is for transfer to the
Board of Regents of the University of Minnesota to conduct a study producing climate
model projections through the rest of this century for three-square-mile blocks covering the
entire state of Minnesota. This appropriation is onetime and is available until June 30, 2024.
new text end

new text begin Subd. 7. new text end

new text begin Electric school bus grants. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $5,000,000 in fiscal year 2021 is appropriated from
the renewable development account under Minnesota Statutes, section 116C.779, subdivision
1, to the commissioner of education to award grants to school districts located within the
retail electric service area of the public utility subject to Minnesota Statutes, section
116C.779, subdivision 1, to purchase an electric school bus. This appropriation is onetime
and is available until June 30, 2024.
new text end

new text begin Subd. 8. new text end

new text begin Metropolitan Council; electric buses. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $8,000,000 in fiscal year 2021 is appropriated
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, to the Metropolitan Council to defray the cost of purchasing electric buses,
as described in section 8. Any funds remaining from this appropriation that are insufficient
to fully fund the incremental cost of purchasing an electric bus rather than a diesel-operated
bus cancel to the renewable development account. This appropriation is available until June
30, 2024.
new text end

new text begin Subd. 9. new text end

new text begin University of Minnesota renewable energy transition. new text end

new text begin (a) Notwithstanding
Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), $3,000,000 in fiscal
year 2021 is appropriated from the renewable development account established under
Minnesota Statutes, section 116C.779, subdivision 1, to the Board of Regents of the
University of Minnesota to establish goals and benchmarks and implement a rapid transition
toward the use of renewable fuels for electricity and thermal energy in campus buildings
by 2030. This appropriation may only be expended on activities located within the electric
service area of the public utility subject to Minnesota Statutes, section 116C.779, subdivision
1. This appropriation is onetime and is available until June 30, 2024.
new text end

new text begin (b) As a condition of receiving the appropriation under paragraph (a), the Board of
Regents of the University of Minnesota must submit a report by January 15, 2021, and
biennially thereafter until January 15, 2031, on the progress made toward the goals and
benchmarks established under paragraph (a) to the chairs and ranking minority members
of the senate and house of representatives committees and divisions with jurisdiction over
energy, climate, the environment, and natural resources.
new text end

new text begin (c) Any project receiving an appropriation under this subdivision that entails construction,
installation, remodeling, or repairs is subject to the requirements of Minnesota Statutes,
sections 177.30 and 177.41 to 177.45, and any laborers and mechanics working at a project
work site subject to this paragraph must be paid the prevailing wage rate, as defined in
Minnesota Statutes, section 177.42, subdivision 6.
new text end

new text begin Subd. 10. new text end

new text begin Minnesota State Colleges and Universities renewable energy transition. new text end

new text begin (a)
Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$3,000,000 in fiscal year 2021 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the Board of Trustees
of the Minnesota State Colleges and Universities to establish goals and benchmarks and
implement a rapid transition toward the use of renewable fuels for electricity and thermal
energy in campus buildings by 2030. This appropriation may only be expended on activities
located within the electric service area of the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1. This appropriation is onetime and is available until June
30, 2024.
new text end

new text begin (b) As a condition of receiving the appropriation provided under paragraph (a), the Board
of Trustees of the Minnesota State Colleges and Universities must submit a report by January
15, 2021, and biennially thereafter until January 15, 2031, on the steps taken and progress
made toward achieving the goals and benchmarks established under paragraph (a) to the
chairs and ranking minority members of the senate and house of representatives committees
and divisions with jurisdiction over energy, climate, the environment, and natural resources.
new text end

new text begin (c) Any project receiving an appropriation under this subdivision that entails construction,
installation, remodeling, or repairs is subject to the requirements of Minnesota Statutes,
sections 177.30 and 177.41 to 177.45, and any laborers and mechanics working at a project
work site subject to this paragraph must be paid the prevailing wage rate, as defined in
Minnesota Statutes, section 177.42, subdivision 6.
new text end

new text begin Subd. 11. new text end

new text begin Solar devices in state parks. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $3,500,000 in fiscal year 2021 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of natural resources to install and expand solar
photovoltaic or solar thermal energy devices in state parks served with electricity by the
public utility subject to Minnesota Statutes, section 116C.779, subdivision 1. The department
owns any renewable energy credits associated with the electricity generated by a solar
photovoltaic device funded with this appropriation. This appropriation is onetime and is
available until June 30, 2024.
new text end

new text begin (b) Any project receiving an appropriation under this subdivision that entails construction,
installation, remodeling, or repairs is subject to the requirements of Minnesota Statutes,
sections 177.30 and 177.41 to 177.45, and any laborers and mechanics working at a project
work site subject to this paragraph must be paid the prevailing wage rate, as defined in
Minnesota Statutes, section 177.42, subdivision 6.
new text end

new text begin Subd. 12. new text end

new text begin Prairie Island renewable energy project. new text end

new text begin Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $16,000,000 in fiscal year 2021 is
appropriated from the renewable development account under Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of employment and economic development
for a grant to the Prairie Island Indian Community to implement the Prairie Island renewable
energy project under section 9. The base for this project is $15,200,000 in fiscal year 2022
and $15,000,000 in fiscal year 2023. The base for fiscal year 2024 is $0. Any unspent funds
as of June 30, 2024, cancel to the renewable development account under Minnesota Statutes,
section 116C.779, subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end