1.1 	A bill for an act
1.2 	relating to energy; establishing a grant program for innovative distributed energy 
1.3 	projects; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. INNOVATIVE DISTRIBUTED ENERGY PROJECT GRANT PROGRAM.
 1.6 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
1.7 	the meanings given them.
1.8 	(b) "Commissioner" means the commissioner of commerce.
1.9 	(c) "Energy storage" means a technology that absorbs and stores electrical energy and 
1.10 	is capable of dispatching the stored energy at a later time.
1.11 	(d) "Innovative distributed energy project" means a project:
1.12 	(1) with a nameplate capacity of ten kilowatts or less;
1.13 	(2) that contains at least two of the following components:
1.14 	(i) photovoltaic devices, as defined in Minnesota Statutes, section 216C.06, subdivision 
1.15 	16;
1.16 	(ii) a wind energy conversion system, as defined in Minnesota Statutes, section 216C.06, 
1.17 	subdivision 19; or
1.18 	(iii) an energy storage system; and
1.19 	(3) that interconnects directly with the electric distribution system of a cooperative 
1.20 	electric association or municipal utility, bypassing the high-voltage transmission network.
2.1 		Subd. 2.Establishment. The commissioner must establish an innovative distributed 
2.2 	energy project grant program in the Department of Commerce to provide financial assistance 
2.3 	to cooperative electric associations and municipal utilities that interconnect such projects 
2.4 	to the cooperative electric association or municipal utility's distribution system.
2.5 		Subd. 3.Application. Application for a grant under this section must be made to the 
2.6 	commissioner on a form developed by the commissioner. The commissioner must develop 
2.7 	procedures to (1) solicit and review applications, and (2) award grants under this section.
2.8 		Subd. 4.Eligible expenditures. Appropriations made to support the activities of this 
2.9 	section must be used only to:
2.10 	(1) provide grants under this section; and
2.11 	(2) reimburse the department's reasonable expenses to administer the grant program.

2.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.13 	Sec. 2. APPROPRIATION.
 2.14 	$5,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner 
2.15 	of commerce to award innovative distributed energy project grants under section 1. This is 
2.16 	a onetime appropriation. This appropriation remains available until December 31, 2022.

2.17 	EFFECTIVE DATE. This section is effective the day following final enactment.