HF 3596

as introduced - 91st Legislature (2019 - 2020) Posted on 02/26/2020 09:22pm

A bill for an act
relating to energy; establishing a grant program to assist school districts to purchase
and install solar energy systems; 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.375] SOLAR FOR 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.
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new text begin (b) "Developer" means an entity that installs a solar energy system on a school building
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
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new text begin (2) dispatching stored electrical energy at a later time.
new text end

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

new text begin (e) "School" means a school that operates as part of an independent or special school
district.
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new text begin (f) "School district" means an independent or special school district.
new text end

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

new text begin (h) "Solar thermal device" means a flat plate or evacuated tube that meets the requirements
of section 216C.25 with a fixed orientation that collects the sun's radiant energy and transfers
it to a storage medium for distribution as energy to heat or cool air or water.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar for schools program is established in the
Department of Commerce. The purpose of the program is to provide grants to (1) stimulate
the installation of solar energy systems on or adjacent to school buildings by reducing costs,
and (2) enable schools to use the solar energy system as a teaching tool that can be integrated
into the school's curriculum.
new text end

new text begin Subd. 3. new text end

new text begin Expenditures. new text end

new text begin Money in the account may be used only:
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new text begin (1) for grant awards made under this section; and
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new text begin (2) to pay the reasonable costs incurred by the department to administer this section.
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new text begin Subd. 4. new text end

new text begin Eligible system. new text end

new text begin (a) A grant may be awarded to a school under this section
only if the solar energy system that is the subject of the grant:
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new text begin (1) is installed on or adjacent to the school building that consumes the electricity generated
by the solar energy system, on property within the service territory of the utility currently
providing electric service to the school building; and
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new text begin (2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the
estimated annual electricity consumption of the school building at which the solar energy
system is proposed to be installed.
new text end

new text begin (b) A school district that receives a rebate or other financial incentive under section
216B.241 for a solar energy system and that demonstrates considerable need for financial
assistance, as determined by the commissioner, is eligible for a grant under this section for
the same solar energy system.
new text end

new text begin Subd. 5. new text end

new text begin Application process. new text end

new text begin (a) The commissioner must issue a request for proposals
to utilities, schools, and developers who may wish to apply for a grant under this section
on behalf of a school.
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new text begin (b) A utility or developer must submit an application to the commissioner on behalf of
a school on a form prescribed by the commissioner. The form must include, at a minimum,
the following information:
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new text begin (1) the proposed solar energy system's capacity and the anticipated amount of electricity
generated;
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new text begin (2) the current energy demand of the school building on which the solar energy generating
system is to be installed, and information regarding any distributed energy resource, including
subscription to a community solar garden, that currently provides electricity to the school
building;
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new text begin (3) the size of any energy storage system that is proposed to be installed as part of a
solar energy system;
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new text begin (4) a description of any solar thermal devices proposed as part of the solar energy system;
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new text begin (5) the total cost to purchase and install the solar energy system, and its life-cycle cost,
including removal and disposal at the end of the system's life;
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new text begin (6) a copy of the proposed contract agreement between the school and the public utility
or developer that includes provisions addressing responsibility to maintain the solar energy
system;
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new text begin (7) the school's plan 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;
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new text begin (8) information that demonstrates the school district's level of need for financial assistance
available under this section;
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new text begin (9) information that demonstrates the school's readiness to implement the project,
including but not limited to the availability of the site on which the solar energy system is
to be installed and the level of the school's engagement with the utility providing electric
service to the school building on which the solar energy system is to be installed regarding
issues relevant to project implementation, including metering and other issues;
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new text begin (10) with respect to the installation and operation of the solar energy system, the
willingness and ability of the developer or the public utility to:
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new text begin (i) pay employees and contractors a prevailing wage rate, as defined in section 177.42,
subdivision 6; and
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new text begin (ii) adhere to the provisions of section 177.43;
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new text begin (11) how the developer or public utility plans to reduce the school's initial capital expense
to purchase and install the solar energy system, and to provide financial benefits to the
school from federal and state tax credits, utility incentives, and other financial incentives;
and
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new text begin (12) any other information deemed relevant by the commissioner.
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new text begin (c) The commissioner must administer an open application process under this section
at least twice annually.
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new text begin (d) The commissioner must develop administrative procedures governing the application
and grant award process.
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new text begin Subd. 6. new text end

new text begin Energy conservation review. new text end

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

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance to
schools to develop and execute projects under this section.
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new text begin Subd. 8. new text end

new text begin Grant payments. new text end

new text begin The commissioner must award a grant to a school for the
necessary costs associated with the solar energy system's purchase and installation. The
amount of the grant must be based on the commissioner's assessment of the school's need
for financial assistance.
new text end

new text begin Subd. 9. new text end

new text begin Limitations. new text end

new text begin (a) No more than 50 percent of the grant payments awarded to
schools under this section may be awarded 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.
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new text begin (b) No more than ten percent of the total amount of grants awarded under this section
may be awarded to schools that are part of the same school district.
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new text begin Subd. 10. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2024.
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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 APPROPRIATION.
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new text begin $16,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of commerce to award grants to assist school districts to purchase and install solar energy
systems. This is a onetime appropriation and remains available until December 31, 2025.
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