HF 2386

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/23/2021 09:52am

A bill for an act
relating to energy; establishing a grant program to promote energy conservation
and renewable energy systems in certain buildings; requiring a report; appropriating
money; proposing coding for new law in Minnesota Statutes, chapter 216C.

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

Section 1.

new text begin [216C.402] REBUILD RIGHT GRANT PROGRAM.
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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 and section 2, the
following terms have the meanings given.
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new text begin (b) "Cold climate air-source heat pump" means a mechanism that heats and cools indoor
air by transferring heat from outdoor or indoor air using a fan, a refrigerant-filled heat
exchanger, and an inverter-driven compressor that varies the pressure of the refrigerant to
warm or cool the refrigerant vapor.
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new text begin (c) "Commercial building" means a building:
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new text begin (1) with an occupant that is (i) engaged in wholesale or retail trade or the provision of
services, or (ii) a restaurant; or
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new text begin (2) that contains four or more dwelling units.
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new text begin (d) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (e).
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new text begin (e) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
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new text begin (f) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f).
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new text begin (g) "Envelope" means the physical elements separating a building's interior and exterior.
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new text begin (h) "Grantee" means a person awarded a grant by the commissioner under this section.
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new text begin (i) "Ground-source heat pump" means an earth-coupled heating or cooling device
consisting of a sealed closed-loop piping system installed in the ground to transfer heat
between the surrounding earth and a building.
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new text begin (j) "Institutional building" means a building with occupants that provide health care,
educational, or government services.
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new text begin (k) "Preweatherization measure" means a general repair or measure that affects the health
or safety of residents of a dwelling unit and that is required under federal law in order for
weatherization services to be provided to the dwelling unit.
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new text begin (l) "Qualified energy technology" means:
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new text begin (1) a solar energy system;
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new text begin (2) a measure installed in a building that results in energy efficiency or energy
conservation, excluding a natural gas furnace that does not function solely as a backup to
a primary heating system utilizing a ground-source heat pump or a cold climate air-source
heat pump; or
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new text begin (3) an energy storage system.
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new text begin (m) "Residential building" means a building containing one to three residential units.
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new text begin (n) "Solar energy system" has the meaning given in section 216C.06, subdivision 17.
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new text begin Subd. 2. new text end

new text begin Program establishment. new text end

new text begin A rebuild right grant program is established in the
Department of Commerce to award grants to incorporate qualified energy technologies as
part of the renovation or new construction of buildings damaged or destroyed by civil unrest
in May and June 2020.
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new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) An application for a grant under this section must be made to
the commissioner on a form developed by the commissioner. The application must include:
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new text begin (1) evidence substantiating the applicant's experience required under subdivision 4,
paragraph (b);
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new text begin (2) information detailing how property owners are notified that financial assistance is
available;
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new text begin (3) the geographic area within which an applicant proposes to target financial assistance;
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new text begin (4) information detailing how the applicant determines whether a proposed project meets
the applicable energy standards required under subdivision 5, and what postimplementation
methods are used to assess whether the standards have been met;
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new text begin (5) information detailing how the applicant evaluates and ranks project proposals; and
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new text begin (6) any other information required by the commissioner.
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new text begin (b) The commissioner must develop administrative procedures and processes to review
applications and award grants under this section.
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new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

new text begin (a) Multiple organizations, including political subdivisions
and nonprofit organizations, may jointly file a single application for a grant award under
this section.
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new text begin (b) Applicants for a grant awarded under this section must have experience:
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new text begin (1) analyzing the energy and economic impacts of installing qualified energy technologies
in buildings;
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new text begin (2) working with contractors to implement projects that install qualified energy
technologies in buildings; and
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new text begin (3) successfully working with small businesses, community groups, and residents of
neighborhoods that contain a preponderance of low-income households.
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new text begin Subd. 5. new text end

new text begin Eligible activities; energy standards. new text end

new text begin (a) Except as provided in paragraph (b),
a renovated or newly constructed commercial or institutional building awarded grant funds
under this section must meet, at a minimum, the current Sustainable Building 2030 energy
performance standards adopted under section 216B.241, subdivision 9.
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new text begin (b) A renovated or newly constructed commercial building containing four or more
dwelling units awarded grant funds under this section must meet, at a minimum, the current
energy performance standards for new residential construction or renovations, as applicable,
contained in the International Passive House Standard promoted by the North American
Passive House Network or the United States Department of Energy's Zero Energy Ready
Home.
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new text begin Subd. 6. new text end

new text begin Eligible properties. new text end

new text begin A property is eligible to receive a grant awarded under
this section if the property: (1) was damaged or destroyed by civil unrest that occurred in
the state in May and June 2020, and (2) is being renovated or constructed to operate as a
residential, commercial, or institutional property.
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new text begin Subd. 7. new text end

new text begin Eligible expenditures. new text end

new text begin An appropriation made to support activities under this
section may be used to:
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new text begin (1) conduct outreach activities to:
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new text begin (i) cities and business associations affected by the civil unrest that occurred in Minnesota
in May and June 2020;
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new text begin (ii) persons listed in subdivision 8, clause (1), items (i) to (iv); and
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new text begin (iii) potential building owners who may receive services under the program;
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new text begin (2) purchase and install qualified energy technologies in buildings;
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new text begin (3) pay the reasonable costs incurred by the department to administer this section; and
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new text begin (4) compensate task force members under subdivision 12.
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new text begin Subd. 8. new text end

new text begin Grant priorities. new text end

new text begin When awarding grants under this section, the commissioner
must give priority to applications that:
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new text begin (1) commit to conduct aggressive outreach programs to provide assistance under this
section to eligible owners of buildings:
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new text begin (i) located in census tracts in which 50 percent or more of households have household
incomes at or below 60 percent of the state median household income;
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new text begin (ii) located in census tracts designated by the governor as Opportunity Zones under
United States Code, title 26, sections 1400Z-1, et. seq.;
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new text begin (iii) containing minority-owned businesses, as defined in section 116J.8737; or
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new text begin (iv) containing women-owned businesses, as defined in section 116J.8737;
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new text begin (2) commit to employ contractors that pay employees a wage comparable to, as
determined by the commissioner, the prevailing wage rate, as defined in section 177.42; or
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new text begin (3) leverage additional funding to be used for the purposes of this section.
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new text begin Subd. 9. new text end

new text begin Limits. new text end

new text begin Grant funds awarded under this section to support the renovation or
construction of building envelopes and energy systems in commercial or institutional
buildings may be used to pay the difference in cost between renovating or constructing a
building's envelope or energy system to meet the current applicable energy code and the
cost to meet the standards required under subdivision 5. The commissioner must develop
a methodology to calculate the cost of renovating or constructing a commercial or institutional
building's envelope and energy system to meet current applicable energy code standards,
which must be used by a grantee to determine the amount awarded to a building owner.
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new text begin Subd. 10. new text end

new text begin Awards to building owners. new text end

new text begin A commercial or institutional building owner
seeking funding from a grant awarded under this section must submit an application to the
grantee that includes:
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new text begin (1) evidence that the building is eligible to receive a grant under this section, including
documentation of damage done to the building;
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new text begin (2) a description of the project, including cost estimates for major project elements;
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new text begin (3) documentation that the measures funded result in the building meeting the applicable
energy standards of subdivision 5; and
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new text begin (4) any other information required by a grantee.
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new text begin Subd. 11. new text end

new text begin Grantee reports. new text end

new text begin Recipients of a grant awarded under this section must file
semiannual reports with the commissioner containing:
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new text begin (1) a list of properties where grant funds have been expended, the amount of the
expenditures, and the nature of the energy efficiency measures and renewable energy systems
installed;
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new text begin (2) estimated energy savings and greenhouse gas emissions reductions resulting from
expenditures made under this section compared with estimated levels of energy use and
greenhouse gas emissions associated with those properties in 2019; and
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new text begin (3) any other information required by the commissioner.
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new text begin Subd. 12. new text end

new text begin Advisory task force. new text end

new text begin (a) Within 60 days of the effective date of this act, the
commissioner must select and appoint eight members to a Rebuild Back Better Advisory
Task Force and must convene the initial meeting of the task force. The advisory task force
must include:
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new text begin (1) one representative of the public utility subject to section 116C.779, subdivision 1;
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new text begin (2) one representative of the Prairie Island Indian Community;
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new text begin (3) one representative of organized labor;
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new text begin (4) two representatives of organizations with expertise installing energy conservation
measures and renewable energy programs in buildings;
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new text begin (5) one representative of organizations that advocate for energy policies addressing
low-income households; and
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new text begin (6) two representatives of organizations representing businesses located in areas that
experienced extensive property damage from civil unrest in Minnesota in May and June
2020.
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new text begin (b) Within 60 days of the effective date of this act, the state senators and state
representatives representing Minneapolis neighborhoods that suffered extensive property
damage from civil unrest in May and June 2020 must jointly appoint as task force members
two residents who live in the neighborhoods where the property damage occurred.
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new text begin (c) Within 60 days of the effective date of this act, the state senators and state
representatives representing St. Paul neighborhoods that suffered extensive property damage
from civil unrest in May and June 2020 must jointly appoint as task force members two
residents who live in the neighborhoods where the property damage occurred.
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new text begin (d) Members of the advisory task force appointed under paragraph (a), clauses (1) to
(3), are nonvoting members. All other members are voting members.
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new text begin (e) The Department of Commerce must serve as staff and provide administrative support
to the advisory task force.
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new text begin (f) The advisory task force must advise the commissioner throughout the development
of the request for proposal and grant award process, and may recommend funding priorities
in addition to those listed in subdivision 8. Within 60 days of the initial meeting, the advisory
task force must present recommendations to the commissioner regarding the content of the
request for proposal.
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new text begin (g) An organization that is represented on the advisory task force must not be awarded
a grant under this section.
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new text begin (h) Notwithstanding section 15.059, subdivision 6, advisory task force members may
be compensated as provided under section 15.059, subdivision 3.
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new text begin (i) The advisory task force established under this subdivision expires two years after the
effective date of this act.
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new text begin Subd. 13. new text end

new text begin Report. new text end

new text begin Beginning January 15, 2022, and continuing each January 15 through
2026, the commissioner must submit a report to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over energy policy.
The report must contain:
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new text begin (1) a list of the grant awards made under this section;
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new text begin (2) summaries of the grantee reports submitted under subdivision 10; and
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new text begin (3) other information deemed relevant by the commissioner.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin SUPPLEMENTING WEATHERIZATION SERVICES.
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new text begin (a) The state may implement preweatherization measures and qualified energy
technologies in dwelling units of low-income households that are: (1) receiving
weatherization services delivered under the federal Weatherization Assistance Program
authorized under United States Code, title 42, section 6861, et. seq.; and (2) located in
neighborhoods adjacent to areas that experienced property damage resulting from civil
unrest in May and June 2020, as determined by the commissioner of commerce.
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new text begin (b) Minnesota Statutes, section 216C.264, subdivisions 1 to 3 and 6, apply to assistance
provided under this section.
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new text begin (c) The commissioner of commerce may require the design heating load of a dwelling
unit receiving assistance under this section to be no more than 12 British Thermal Units per
hour per square foot after all preweatherization measures financed under this section,
qualified energy technologies financed under this section, and weatherization measures
provided under the federal weatherization program are implemented.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 3. new text begin APPROPRIATION.
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new text begin (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$....... in fiscal year 2022 is appropriated from the renewable development account established
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
for the purposes of sections 1 and 2. Of this amount, 75 percent is appropriated for the
purposes of the rebuild right grant program under section 1 and 25 percent is appropriated
for the purposes of supplementing weatherization services under section 2. This is a onetime
appropriation.
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new text begin (b) Of the amount appropriated for grants under section 1, up to 11.1 percent may be
used in newly constructed buildings containing four or more dwelling units. After ...., any
unexpended and unencumbered funds eligible for expenditure under this paragraph may be
used for the other purposes specified under section 1.
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new text begin (c) Any amount of this appropriation that remains unexpended and unencumbered on
December 31, 2025, cancels to the renewable development account.
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new text begin (d) Money appropriated under this section must be expended only on buildings located
in the Minnesota retail electric service area of the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1.
new text end