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SF 1888

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/17/2020 10:54am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to economic development; creating the community energy transition
competitive grant program; transferring money; creating an advisory council;
requiring reports; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 116J.

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

Section 1.

new text begin [116J.55] COMMUNITY ENERGY TRANSITION GRANTS.
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 terms in this
subdivision have the meanings given.
new text end

new text begin (b) "Advisory council" means the Community Energy Transition Grant Advisory Council
created in this section.
new text end

new text begin (c) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (d) "Eligible community" means a county, municipality, or tribal government located
within a county, that hosts or has hosted an investor-owned electric generating plant powered
by coal, nuclear energy, or natural gas.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a community energy transition
grant program to award grants to promote economic development in eligible communities.
new text end

new text begin Subd. 3. new text end

new text begin Funding. new text end

new text begin (a) A community energy transition account is created in the special
revenue fund in the state treasury. Money in the account is appropriated to the commissioner
for grants as provided in this section and must be expended only as provided in this section.
new text end

new text begin (b) On July 1, 2020, $15,000,000 and then on July 1, 2021, and on each July 1 thereafter,
$10,000,000 is transferred from the renewable development account under section 116C.779
to the commissioner for deposit in the community energy transition account. This transfer
must be made before any other payments or transfers required under section 116C.779.
new text end

new text begin (c) Grants to eligible communities in which an investor-owned electric generating plant
is located but has not been scheduled for retirement or decommissioning may not exceed
$1,000,000. Grants to eligible communities in which an investor-owned electric generating
plant is located and is scheduled for retirement or decommissioning or already been retired
or decommissioned may not exceed $5,000,000.
new text end

new text begin (d) Unless amounts are otherwise appropriated for administrative costs, the commissioner
of employment and economic development may retain up to five percent of the amount
appropriated for grants under this section for administrative and personnel costs.
new text end

new text begin Subd. 4. new text end

new text begin Cancellation of grant; return of grant money. new text end

new text begin If after five years, the
commissioner determines that a project has not proceeded in a timely manner and is unlikely
to be completed, the commissioner must cancel the grant and require the grantee to return
all grant money awarded for that project. Grant money returned to the commissioner is
appropriated to the commissioner to make additional grants under this section.
new text end

new text begin Subd. 5. new text end

new text begin Grants to eligible communities. new text end

new text begin (a) The commissioner must award grants to
eligible communities through a competitive grant process. Grant awards made with funds
from the renewable development account must be to eligible communities located in the
service territory of the public utility subject to section 116C.779, or host or have hosted an
investor-owned electric generating plant owned by the public utility subject to section
116C.779. Grant awards made from the general fund may be awarded to otherwise eligible
communities located outside of the service territory of the public utility subject to section
116C.779.
new text end

new text begin (b) To receive grant funds, an eligible community must submit a written application to
the commissioner, using a form developed by the commissioner.
new text end

new text begin (c) For grants awarded to counties, a resolution of support for the project from the city
within that county that hosts or has hosted the investor-owned electric generating plant is
required to be submitted with the application.
new text end

new text begin (d) The commissioner must consider the recommendations of the Community Energy
Transition Grant Advisory Council before selecting grant recipients.
new text end

new text begin (e) Grants must be used to plan for or address the economic and social impact on the
community of plant retirement or transition. Specific uses may include but are not limited
to:
new text end

new text begin (1) research;
new text end

new text begin (2) planning;
new text end

new text begin (3) studies;
new text end

new text begin (4) capital improvements; and
new text end

new text begin (5) incentives for businesses to open, relocate, or expand.
new text end

new text begin Subd. 6. new text end

new text begin Priorities. new text end

new text begin (a) In evaluating projects, the advisory council shall give priority
to eligible projects with one or more of the following characteristics:
new text end

new text begin (1) the potential of the eligible community to attract a viable business;
new text end

new text begin (2) the potential increase in the property tax base of the eligible community, considered
relative to the fiscal impact of the retirement of the electric generating plant located in the
eligible community;
new text end

new text begin (3) the extent to which the grant will assist the eligible community in addressing the
fiscal and social impacts of plant retirement;
new text end

new text begin (4) the extent to which the grant will help the state transition away from fossil fuels; and
new text end

new text begin (5) proximity in time to a scheduled retirement or decommissioning of an electric
generating plant located in an eligible community.
new text end

new text begin (b) The factors listed in paragraph (a) are not ranked in order of priority. The
commissioner may weigh each factor, depending upon the facts and circumstances, as
appropriate. The commissioner may consider other factors that support the goals of this
program.
new text end

new text begin Subd. 7. new text end

new text begin Advisory council. new text end

new text begin (a) By September 1, 2020, the commissioner shall appoint
representatives to a Community Energy Transition Grant Advisory Council composed of
the following members:
new text end

new text begin (1) the commissioner of employment and economic development, or a designee;
new text end

new text begin (2) the commissioner of transportation, or a designee;
new text end

new text begin (3) the commissioner of the Minnesota Pollution Control Agency, or a designee;
new text end

new text begin (4) the commissioner of natural resources, or a designee;
new text end

new text begin (5) the commissioner of commerce, or a designee;
new text end

new text begin (6) one representative of the Prairie Island Indian community;
new text end

new text begin (7) two representatives of workers at investor-owned electric generating plants powered
by coal, nuclear energy, or natural gas; and
new text end

new text begin (8) four representatives of eligible communities, of which, two must be counties, two
must be municipalities, at least one must host a coal plant, at least one must host a nuclear
plant, and at least one must host a natural gas plant.
new text end

new text begin After the initial appointments, members of the advisory council shall be appointed no later
than January 15 of every odd-numbered year and shall serve until January 15 of the next
odd-numbered year. Members may be removed and vacancies filled as provided in section
15.059, subdivision 4. Appointed members are eligible for reappointment.
new text end

new text begin (b) The advisory council shall elect a chair and other officers at its first meeting.
new text end

new text begin (c) The advisory council shall review applications for community energy transition
grants and make recommendations to the commissioner of employment and economic
development.
new text end

new text begin (d) The commissioner of employment and economic development shall select projects
from the recommendations made by the advisory council under this subdivision with
consideration given to the priorities listed in subdivision 6.
new text end

new text begin (e) A member of the advisory council must not participate in the consideration of an
application from the community that member represents.
new text end

new text begin (f) Members of the advisory council serve without compensation or payment of expenses.
new text end

new text begin (g) The commissioner of employment and economic development or the commissioner's
designee shall provide meeting space and administrative services for the advisory council.
All costs necessary to support the advisory council's operations must be absorbed using
existing appropriations available to the commissioner.
new text end

new text begin (h) The advisory council is subject to chapter 13D, but may close a meeting to discuss
sensitive private business information included in grant applications. Data related to an
application for a grant submitted to the advisory council is governed by section 13.599.
new text end

new text begin (i) The commissioner shall convene the first meeting of the advisory council no later
than October 1, 2020.
new text end

new text begin Subd. 8. new text end

new text begin Reports to the legislature. new text end

new text begin By January 15, 2022, and each January 15 thereafter,
the commissioner must submit a report to the chairs and ranking minority members of the
committees of the house of representatives and the senate having jurisdiction over economic
development that details the use of grant funds. When possible, this report must include
data on the economic impact achieved by each grant.
new text end

Sec. 2. new text begin APPROPRIATION; GRANTS TO COMMUNITIES LOCATED OUTSIDE
OF THE SERVICE TERRITORY.
new text end

new text begin $25,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of employment and economic development for grants to communities located outside of
the service territory of the public utility subject to Minnesota Statutes, section 116C.779,
subdivision 1, that would otherwise be eligible communities under the community energy
transition grant program under Minnesota Statutes, section 116J.55, but for the location of
the electric generating plant scheduled for retirement or decommissioning or already retired
or decommissioned electric generating plant. This is a onetime appropriation and is available
until expended.
new text end