Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

HF 2556

as introduced - 91st Legislature (2019 - 2020) Posted on 03/18/2019 02:41pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5
1.6 1.7
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19
1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6
3.7
3.8 3.9
3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12
7.13

A bill for an act
relating to energy; appropriating money for the Department of Commerce and
Public Utilities Commission; making policy and technical changes; requiring
reports; proposing coding for new law in Minnesota Statutes, chapter 216C.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginENERGY APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginENERGY RESOURCES
new text end

new text begin 15,430,000
new text end
new text begin 15,480,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 4,830,000
new text end
new text begin 4,880,000
new text end
new text begin Renewable
Development
new text end
new text begin 10,600,000
new text end
new text begin 10,600,000
new text end

new text begin (a) $150,000 each year is to remediate
vermiculate insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
new text end

new text begin (b) $832,000 each year is for energy regulation
and planning unit staff.
new text end

new text begin (c) $100,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, to administer the
Made in Minnesota solar energy production
incentive program in Minnesota Statutes,
section 216C.417. Any remaining unspent
funds cancel back to the renewable
development account at the end of the
biennium.
new text end

new text begin (d) $10,000,000 each year is from the
renewable development account in the special
revenue fund for a solar on schools program
of which $500,000 per year can be spent on
administration. The amount is available until
June 30, 2023. This is a onetime appropriation.
new text end

new text begin $500,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for costs associated
with any third-party expert evaluation of a
proposal submitted in response to a request
for proposal to the renewable development
advisory group under Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(l). No portion of this appropriation may be
expended or retained by the commissioner of
commerce. Any funds appropriated under this
paragraph that are unexpended at the end of a
fiscal year cancel to the renewable
development account.
new text end

Sec. 3. new text beginPUBLIC UTILITIES COMMISSION
new text end

new text begin $
new text end
new text begin 8,018,000
new text end
new text begin $
new text end
new text begin 7,493,000
new text end

ARTICLE 2

SOLAR ON SCHOOLS

Section 1.

new text begin [216C.375] SOLAR ON SCHOOLS 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 them.
new text end

new text begin (b) "Developer" means an entity that installs a solar energy system on a building owned
by a school district that has been awarded a grant under this section.
new text end

new text begin (c) "Energy storage system" means a commercially available technology capable of:
new text end

new text begin (1) absorbing and storing electrical energy; and
new text end

new text begin (2) dispatching stored electrical energy at a later time.
new text end

new text begin (d) "In proximity of" means within an aggregation of school meters.
new text end

new text begin (e) "Investor" means an entity that finances the design, purchase, installation, operation,
and maintenance of a solar energy system installed at a school building in a school district
that received a grant under this section.
new text end

new text begin (f) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
new text end

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

new text begin (h) "Solar energy system" means photovoltaic or solar thermal devices installed alone
or in conjunction with an energy storage system.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar on schools program is established in the
Department of Commerce. The purpose of the program is to provide grants and lease
agreements to stimulate the installation of solar energy systems in school districts throughout
the state by reducing the cost to purchase and install a solar energy system.
new text end

new text begin Subd. 3. new text end

new text begin Expenditures. new text end

new text begin Expenditures can be made for:
new text end

new text begin (1) grant awards made under this section; and
new text end

new text begin (2) administrative costs incurred by the department to administer this section up to
$500,000 per year that the program is in operation.
new text end

new text begin Subd. 4. new text end

new text begin Eligible system. new text end

new text begin A grant may be awarded under this section to an eligible school
district only if the solar energy system that is the subject of the grant:
new text end

new text begin (1) is placed on or adjacent to the school district building using the electricity generated;
and
new text end

new text begin (2) has a capacity that does not exceed the lesser of:
new text end

new text begin (i) for a school building receiving retail electric service from a public utility subject to
section 116C.779, subdivision 1, one megawatt or 120 percent of the estimated electric load
of the school district building at which the solar energy system is proposed to be installed;
or
new text end

new text begin (ii) for a school building receiving retail electric service from a public utility not subject
to section 116C.779, subdivision 1, 40 kilowatts or 120 percent of the estimated electric
load of the school district building where the solar energy system is proposed to be installed.
new text end

new text begin Subd. 5. new text end

new text begin Lease agreement; design. new text end

new text begin The commissioner must design a lease agreement
that must be used by an applicant seeking a grant under this section. The lease agreement
must:
new text end

new text begin (1) make the commissioner a party to the lease agreement;
new text end

new text begin (2) contain a formula to calculate the future fair market value of the solar energy system;
new text end

new text begin (3) contain a formula to calculate the future value of payments made by the school district
to the investor under the lease agreement described in clause (6);
new text end

new text begin (4) specify an escalator for the allowable rate of increase for the lease payments;
new text end

new text begin (5) not exceed a term of 20 years;
new text end

new text begin (6) provide the school district an option to purchase the solar array from the investor at
the end of the lease contract term for a price based on a fair market value calculation, as
determined by the commissioner;
new text end

new text begin (7) include basic requirements regarding the removal and recycling of the system; and
new text end

new text begin (8) specify the investor must operate and maintain the leased system.
new text end

new text begin Subd. 6. new text end

new text begin Adjustment. new text end

new text begin (a) Every five years after entering into the lease agreement, and
90 days prior to the proposed termination of the lease agreement, the school district and the
investor must reexamine the projected values based on the formulas in the lease agreement
described in subdivision 6, clauses (2) to (4).
new text end

new text begin (b) The parties must notify the commissioner of any significant adjustments that should
be made to the forecasts of future values in subdivision 6, clauses (2) to (4), based on
experience under the lease agreement or for other reasons.
new text end

new text begin (c) The commissioner must review the adjustments requested by the parties, and must
approve the adjustments if the commissioner determines the adjustments are:
new text end

new text begin (1) reasonable;
new text end

new text begin (2) unforeseeable to the parties at the time the lease agreement was executed or at the
previous reexamination of the projected values; and
new text end

new text begin (3) in the public interest.
new text end

new text begin (d) The commissioner must adjust the grant amount reserved in the reserve account for
the solar energy system consistent with adjustments approved under this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Program requirements. new text end

new text begin (a) The commissioner must develop a master lease
program.
new text end

new text begin (b) Within the master lease program, the commissioner must develop a standard request
for proposals to solicit services.
new text end

new text begin (c) The commissioner must develop a quantitative weighting system for the information
provided in the application in order to rank applications. In the weighting system, the
commissioner must consider (1) under-resourced schools, as determined by 50 percent or
more of the student body qualifying for free or reduced-price lunches, and (2) geographic
dispersion of school districts applying.
new text end

new text begin (d) The commissioner must develop administrative procedures to govern the application
and grant award process.
new text end

new text begin (e) The program must include a prepaid lease option to buy out the lease prior to the end
of the lease.
new text end

new text begin (f) The developer must maintain the system through a minimum level of production, as
determined by the commissioner and communicated in program documents, through the
term of the lease.
new text end

new text begin (g) The program must require the developer to operate and maintain the solar energy
system through the term of the lease.
new text end

new text begin Subd. 8. new text end

new text begin Application process. new text end

new text begin (a) A developer may apply for a grant under this section
on behalf of a school district.
new text end

new text begin (b) An application submitted to the commissioner under this subdivision must include,
at a minimum, the following information:
new text end

new text begin (1) the capacity of the proposed solar energy system and the amount of electricity that
is expected to be generated;
new text end

new text begin (2) the current energy demand of the school building where the solar energy generating
system is proposed to be installed;
new text end

new text begin (3) the size of any energy storage system that is proposed to be installed as part of a
solar energy system;
new text end

new text begin (4) the total cost to purchase and install the proposed solar energy system, including the
life-cycle cost;
new text end

new text begin (5) a copy of the proposed lease agreement between the school district and an investor;
new text end

new text begin (6) a plan detailing how the school intends to make the solar energy system serve as a
visible learning tool for students, teachers, and visitors to the school, including how the
solar energy system may be integrated into the school's curriculum;
new text end

new text begin (7) information that demonstrates the school district's need for financial assistance
available under this section;
new text end

new text begin (8) information that demonstrates the readiness of the school district to implement the
project, including but not limited to the availability of the land to install the solar energy
system on, and the level of the school district's engagement with the utility providing electric
service to the school building where the solar energy system is to be installed with respect
to issues relevant to the implementation of the project, including metering and other issues;
new text end

new text begin (9) the developer's willingness and ability to pay employees and contractors prevailing
wage; and
new text end

new text begin (10) any other information deemed relevant by the commissioner.
new text end

new text begin (c) As a condition of a site permit for construction, the commission may require the
recipient, including their construction contractors and subcontractors, to pay the prevailing
wage rate as defined in section 177.42.
new text end

new text begin Subd. 9. new text end

new text begin Energy conservation review. new text end

new text begin At the commissioner's request, prior to a grant
award under this section the school district must provide the commissioner information
regarding energy conservation measures implemented at the school building where the solar
energy system is to be installed. The commissioner may make recommendations to the
school district regarding cost-effective conservation measures it may implement and may
provide technical assistance and direct the school district to available financial assistance
programs.
new text end

new text begin Subd. 10. new text end

new text begin Commissioner duties. new text end

new text begin The commissioner must:
new text end

new text begin (1) provide technical assistance to school districts to develop and execute projects; and
new text end

new text begin (2) convene an advisory committee composed of representatives of solar energy
developers, school districts, and investors to develop procedures and policies that result in
the successful operation of the program established under this section.
new text end

new text begin Subd. 11. new text end

new text begin Grant payments. new text end

new text begin The commissioner must use grant money to buy down lease
payments for the school district to (1) decrease the school district's lease period, and (2)
enable the school district to obtain full ownership rights over the solar energy system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end