HF 680

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:40am

A bill for an act
relating to energy; providing direction for the use of federal stimulus funding
for energy programs; proposing coding for new law in Minnesota Statutes,
chapter 216B.

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

Section 1.

new text begin [216B.2405] PUBLIC BUILDING ENERGY SAVINGS REVOLVING
LOAN FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A public building energy savings revolving loan
fund is established as an account in the special revenue fund. The commissioner of finance
shall credit to the account the amounts authorized under this section and appropriations
and transfers to the account. Earnings, such as interest, dividends, and any other earnings
arising from fund assets, must be credited to the account.
new text end

new text begin Subd. 2. new text end

new text begin Deposits. new text end

new text begin (a) Owners of projects that have received stimulus funds under
section 4 must annually deposit in the account 30 percent of the monetized energy savings
realized that are attributable to the stimulus funds until the payback period is ended, as
determined by the Office of Energy Security.
new text end

new text begin (b) Owners of projects that have received loans under this section must annually
deposit in the account 30 percent of the monetized energy savings realized that are
attributable to the loan until the payback period is ended, as determined by the Office
of Energy Security.
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 is appropriated to the commissioner
of commerce for the purpose of making loans to improve the energy efficiency of local
government and school district buildings. Loans made under this section must be
consistent with the principles contained in section 2 and the financing terms contained in
section 4.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) Applications for a loan under this section must be
made in a manner and on forms prescribed by the Office of Energy Security. Loans to
eligible projects must be made in the order in which complete applications are received by
the commissioner of commerce.
new text end

new text begin (b) The Office of Energy Security must establish procedures for the loan application
process, criteria which must be met in order for loan applications to be approved, and
other provisions necessary to administer the loan program, including, but not limited to,
the maximum interest rate that may be charged for a loan.
new text end

Sec. 2. new text begin FEDERAL STIMULUS FUNDING; GOAL OF ENERGY PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of sections 1 to 8, the following terms
have the meaning given them.
new text end

new text begin (a) "Act" means the American Recovery and Reinvestment Act of 2009.
new text end

new text begin (b) "Stimulus funding" or "funding" means funding provided to the state under
the Act for:
new text end

new text begin (1) Energy Efficiency and Conservation Block Grants authorized under subtitle E of
title V of the federal Energy Independence and Security Act of 2007;
new text end

new text begin (2) the Weatherization Assistance Program under part A of title IV of the federal
Energy Conservation and Production Act, United States Code, title 42, section 6861, et.
seq.; and
new text end

new text begin (3) the State Energy Program authorized under part D of title III of the federal
Energy Policy and Conservation Act, United States Code, title 42, section 6321, et. seq.
new text end

new text begin Subd. 2. new text end

new text begin Stimulus funding allocation and use goals. new text end

new text begin To the extent allowed
by federal law and regulation and consistent with the purposes and principles of the
act, stimulus funding shall be allocated and expended for activities that best achieve
the following goals:
new text end

new text begin (1) job retention and creation;
new text end

new text begin (2) improved energy efficiency and increased renewable energy production capacity;
new text end

new text begin (3) coordination with and leveraging of other resources to increase the total benefits
derived from stimulus funding;
new text end

new text begin (4) timely implementation of funded activities;
new text end

new text begin (5) long-term sustainability of benefits derived from stimulus funds;
new text end

new text begin (6) geographic distribution across the state; and
new text end

new text begin (7) compliance with the disadvantaged business enterprise outreach requirements in
Minnesota Statutes, section 16C.16, subdivision 4.
new text end

Sec. 3. new text begin WEATHERIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Allocation of funds. new text end

new text begin All stimulus funds for weatherization must be
allocated by the director of the Office of Energy Security, consistent with federal allocation
requirements and state allocation formulas in the state weatherization plan. Existing
providers of weatherization services must be fully utilized, consistent with effective
program delivery, before additional providers of weatherization services are added.
new text end

new text begin Subd. 2. new text end

new text begin Rental units. new text end

new text begin Programs that include rental units shall be developed,
including developing procedures to increase low-income rental unit participation in
programs. Priority shall be given to serving the largest number of new weatherization
clients consistent with federal eligibility requirements.
new text end

Sec. 4. new text begin LOCAL GOVERNMENT AND SCHOOL DISTRICT BUILDING
RENOVATIONS.
new text end

new text begin The Office of Energy Security must coordinate the use of stimulus funds with the
local public building enhanced energy-efficiency program under Minnesota Statutes,
section 216C.43. The Office of Energy Security shall prioritize lighting upgrades,
energy recommissioning, and other cost-effective energy projects that are ready for
immediate implementation. Energy-efficiency conservation block grants and state energy
program funds may be used to advance local public building enhanced energy-efficiency
program projects by either reducing energy bills during a savings repayment period or by
decreasing the number of years for payback of energy improvement investments, provided
that at least 60 percent of a project's funding is provided by the local governmental unit
or school district, the local public building enhanced energy-efficiency program under
Minnesota Statutes, section 216C.43, or another local governmental unit or school district
financing program. The Office of Energy Security shall coordinate with the Department
of Education in prioritizing school district projects, consistent with the principles of
statewide geographic distribution of projects, optimized energy savings, and an improved
learning environment for schoolchildren.
new text end

Sec. 5. new text begin STATE GOVERNMENT BUILDINGS.
new text end

new text begin The Office of Energy Security and the Department of Administration shall
develop a joint plan and joint procedures to select, fund, and implement projects using
stimulus funds. The joint plan and procedures shall prioritize lighting upgrades, energy
recommissioning, and other cost-effective energy projects that are ready for immediate
implementation. Energy-efficiency conservation block grants and state energy program
funds may be used to advance the state public building enhanced energy-efficiency
program under Minnesota Statutes, section 16B.322, projects by either reducing energy
bills during a savings repayment period or decreasing the number of years for payback of
energy improvement investments, provided that at least 60 percent of a project's funding is
provided through the state public building enhanced energy-efficiency program.
new text end

Sec. 6. new text begin RESIDENTIAL WINDOW REPLACEMENT PROGRAMS.
new text end

new text begin The Office of Energy Security must establish a program to fund a window
replacement and insulation program for existing housing occupied by low- or
moderate-income households. The development and implementation of this financing
program must be coordinated with the Minnesota Housing Finance Agency and existing
lead abatement programs.
new text end

Sec. 7. new text begin TRAINING AND WORKFORCE DEVELOPMENT.
new text end

new text begin (a) The Department of Employment and Economic Development, in consultation
with the Office of Energy Security and the Office of Higher Education, shall develop a
plan and procedures to:
new text end

new text begin (1) allocate stimulus funds to training programs to train energy professionals needed
to implement the energy programs described in sections 3 to 6, including but not limited to
energy auditors, energy managers, and building operators;
new text end

new text begin (2) coordinate, oversee, and monitor the training and certification of energy
professionals; and
new text end

new text begin (3) allocate funding for the purposes of clauses (1) and (2) and to training providers.
new text end

new text begin (b) Training strategies must be designed to meet the wide range of facilities
managers and building sizes and types, and must protect the occupational health and safety
of workers employed on these energy projects. Technical skills training must include
insulation, air sealing, and mechanical work.
new text end

new text begin (c) The plan must include procedures to:
new text end

new text begin (1) train individuals already employed in implementing energy programs;
new text end

new text begin (2) recruit individuals for training to perform work in energy projects using
stimulus funding who are unemployed, especially targeting communities experiencing
disproportionately high rates of unemployment, including but not limited to low-income,
rural, or tribal communities and individuals in construction trades and crafts; and
new text end

new text begin (3) ensure that the full capacity of current training providers is utilized, including but
not limited to opportunities industrialization centers, skilled trades labor unions, tribal
colleges or nonprofits working in tribal communities, community action partnerships,
utility companies, higher education institutions, and nonprofit organizations with
demonstrated expertise in energy efficiency.
new text end

Sec. 8. new text begin ACCOUNTABILITY AND TRANSPARENCY REPORTING.
new text end

new text begin The director of the Office of Energy Security shall, after compiling information
supplied by the Departments of Administration, Education, Employment and Economic
Development, and the Office of Higher Education, report on the progress of the programs
funded under sections 3 to 7 to the house of representatives and senate committees with
jurisdiction over energy finance and workforce development policy by September 1,
2009, January 15, 2010, April 1, 2010, and September 1, 2010. The report shall include a
complete accounting of all stimulus funds spent on the programs funded under sections 3
to 7, including, but not limited to:
new text end

new text begin (1) the specific projects funded, including the location, building owner, and project
manager;
new text end

new text begin (2) the number of jobs retained or created by each project;
new text end

new text begin (3) the total calculated and actual energy savings for each project;
new text end

new text begin (4) the remaining balances in each stimulus fund;
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new text begin (5) the nonstimulus funding leveraged by stimulus funds for each project;
new text end

new text begin (6) the current and projected deposits into the energy savings endowment fund;
new text end

new text begin (7) the training courses provided, including the location and provider of courses
offered, the funding source for each training course, and the total number of trainees; and
new text end

new text begin (8) compliance with prevailing wage, veterans, and disadvantaged business
enterprise requirements.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 are effective the day following final enactment.
new text end