SF 1424

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/15/2019 09:11am

A bill for an act
relating to energy; establishing a grant program to assist public school districts to
install solar energy systems; creating reserve accounts; 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 ENERGY GRANTS FOR SCHOOL DISTRICTS.
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 meaning given them.
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new text begin (b) "Energy storage system" means a commercially available technology capable of (1)
absorbing and storing electrical energy, and (2) dispatching stored electrical energy at a
later time.
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new text begin (c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
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new text begin (d) "School district" means an independent or special school district.
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new text begin (e) "Solar energy system" means photovoltaic devices installed alone or in conjunction
with a solar thermal system or an energy storage system.
new text end

new text begin (f) "Solar thermal system" means a flat plate or evacuated tube 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.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A grant program is established under the Department of
Commerce to award grants to school districts to fund the design, purchase, and installation
of solar energy systems on school district buildings.
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new text begin Subd. 3. new text end

new text begin Reserve accounts created; use of funds in reserve accounts. new text end

new text begin (a) A solar
energy for schools program reserve account number 1 is created in the renewable
development account under section 116C.779, subdivision 1, paragraph (a). Money received
from the renewable development account must be transferred to the commissioner of
commerce and credited to this account. Grant awards made with funds in this account are
to be used only for grants for solar energy systems installed on school buildings receiving
retail electric service from the public utility that is subject to section 116C.779, subdivision
1, and for reasonable costs incurred by the department to administer this section attributable
to the grant awards made from reserve account number 1. Money in the account is held in
the account and does not lapse.
new text end

new text begin (b) A solar energy for schools program reserve account number 2 is created in the
renewable development account under section 116C.779, subdivision 1, paragraph (a).
Money received from the general fund must be transferred to the commissioner of commerce
and credited to this account. Grant awards made with funds in this account are to be used
only for grants for solar energy systems installed on school buildings receiving retail electric
service from a utility that is not subject to section 116C.779, subdivision 1, and for reasonable
costs incurred by the department to administer this section attributable to the grant awards
made from reserve account number 2. Money in the account is held in the account and does
not lapse.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin (a) Grants awarded to a school district under this section:
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new text begin (1) may be used to pay up to 95 percent of the cost of designing, engineering, purchasing,
and installing a solar energy system;
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new text begin (2) must be used to fund a solar energy system whose capacity matches the electric load
of the school district building using the electricity generated, but must not exceed 300
kilowatts; and
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new text begin (3) must be used to fund a solar energy system placed on, adjacent to, or in proximity
to the school district building using the electricity generated.
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new text begin (b) A school district that receives a rebate or other financial incentive for a solar energy
system under section 116C.7792 or from any utility is not eligible to receive 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 school district must submit an application to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
administrative procedures governing the application and grant award process, and must
award grants on a first-come, first-served basis.
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new text begin Subd. 6. new text end

new text begin Geographical distribution of grants. new text end

new text begin The commissioner must endeavor to
award grants under this section to school districts located throughout the state within the
applicable electric service territories.
new text end

new text begin Subd. 7. new text end

new text begin Other funds. new text end

new text begin A school district may issue debt under section 123B.62 to provide
its share of the costs for a solar energy system receiving a grant under this section.
new text end

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 (a) $3,000,000 in fiscal year 2020 is transferred from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to conduct the program established under Minnesota Statutes, section 216C.375. The
commissioner of commerce must deposit the appropriation in the account established under
Minnesota Statutes, section 216C.375, subdivision 3, paragraph (a).
new text end

new text begin (b) $....... in fiscal year 2020 is appropriated from the general fund to the commissioner
of commerce to conduct the program established under Minnesota Statutes, section 216C.375.
The commissioner of commerce must deposit the appropriation in the account established
under Minnesota Statutes, section 216C.375, subdivision 3, paragraph (b).
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end