SF 2144

as introduced - 92nd Legislature (2021 - 2022) Posted on 08/03/2021 03:09pm

A bill for an act
relating to energy; establishing a program to promote the use of solar energy on
school buildings; 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 and section 216C.376,
the following terms have the meanings given them.
new text end

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

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

new text begin (e) "School district" means an independent or special school district.
new text end

new text begin (f) "Solar energy system" means photovoltaic or solar thermal devices.
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 stimulate the
installation of solar energy systems on or adjacent to school buildings by reducing the cost,
and to 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 Establishment of account. new text end

new text begin (a) A solar for schools program account is
established in the special revenue fund. Money received from the general fund must be
transferred to the commissioner of commerce and credited to the account. Money deposited
in the account remains in the account until expended, and does not cancel to the general
fund.
new text end

new text begin (b) When a grant is awarded under this section, the commissioner must reserve the grant
amount in the account.
new text end

new text begin Subd. 4. new text end

new text begin Expenditures. new text end

new text begin (a) Money in the account may be used only:
new text end

new text begin (1) for grant awards made under this section; and
new text end

new text begin (2) to pay the reasonable costs incurred by the department to administer this section.
new text end

new text begin (b) Grant awards made with funds in the account must be used only for grants for solar
energy systems installed on or adjacent to school buildings receiving retail electric service
from a utility that is not subject to section 116C.779, subdivision 1.
new text end

new text begin Subd. 5. 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:
new text end

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
new text end

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 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. 6. 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.
new text end

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:
new text end

new text begin (1) the capacity of the proposed solar energy system and the amount of electricity that
is expected to be generated;
new text end

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;
new text end

new text begin (3) a description of any solar thermal devices proposed as part of the solar energy system;
new text end

new text begin (4) the total cost to purchase and install the solar energy system and the solar energy
system's life-cycle cost, including removal and disposal at the end of the system's life;
new text end

new text begin (5) a copy of the proposed contract agreement between the school and the public utility
or developer that includes provisions addressing responsibility for maintenance of the solar
energy system;
new text end

new text begin (6) 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;
new text end

new text begin (7) information that demonstrates the school district's level of need for financial assistance
available under this section;
new text end

new text begin (8) 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 on issues
relevant to the implementation of the project, including metering and other issues;
new text end

new text begin (9) with respect to the installation and operation of the solar energy system, the
willingness and ability of the developer or the public utility to:
new text end

new text begin (i) pay employees and contractors a prevailing wage rate, as defined in section 177.42,
subdivision 6; and
new text end

new text begin (ii) adhere to the provisions of section 177.43;
new text end

new text begin (10) 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 the utilization of federal and state tax credits, utility incentives, and other
financial incentives; and
new text end

new text begin (11) any other information deemed relevant by the commissioner.
new text end

new text begin (c) The commissioner must administer an open application process under this section
at least twice annually.
new text end

new text begin (d) The commissioner must develop administrative procedures governing the application
and grant award process.
new text end

new text begin Subd. 7. 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 shall provide the commissioner information regarding energy
conservation measures implemented at the school building at which the solar energy system
is installed. The commissioner may make recommendations to the school regarding
cost-effective conservation measures it can implement and may provide technical assistance
and direct the school to available financial assistance programs.
new text end

new text begin Subd. 8. 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.
new text end

new text begin Subd. 9. new text end

new text begin Grant payments. new text end

new text begin The commissioner must award a grant from the account
established under subdivision 3 to a school for the necessary costs associated with the
purchase and installation of a solar energy system. 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. 10. 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.
new text end

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.
new text end

new text begin Subd. 11. 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, 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

Sec. 2.

new text begin [216C.376] SOLAR FOR SCHOOLS PROGRAM FOR CERTAIN UTILITY
SERVICE TERRITORY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The utility subject to section 116C.779 must
operate a program to develop, and to supplement with additional funding, financial
arrangements that allow schools to benefit from state and federal tax and other financial
incentives that schools are ineligible to receive directly in order to enable schools to install
and operate solar energy systems that can be used as teaching tools and integrated into the
school curriculum.
new text end

new text begin Subd. 2. new text end

new text begin Required plan. new text end

new text begin (a) By October 1, 2021, the public utility must file a plan for
the solar for schools program with the commissioner. The plan must contain but is not
limited to the following elements:
new text end

new text begin (1) a description of how entities that are eligible to take advantage of state and federal
tax and other financial incentives that reduce the cost of purchasing, installing, and operating
a solar energy system that schools are ineligible to take advantage of directly, can share a
portion of those financial benefits with schools at which a solar energy system is installed;
new text end

new text begin (2) a description of how the public utility uses funds appropriated to the program under
this section to provide additional financial assistance to schools at which a solar energy
system is installed;
new text end

new text begin (3) certification that the financial assistance provided under this section to a school by
the public utility must include the full value of the renewable energy certificates associated
with the generation of electricity by the solar energy system receiving financial assistance
under this section over the lifetime of the solar energy system;
new text end

new text begin (4) an estimate of the amount of financial assistance that the public utility provides to a
school under clauses (1) to (3) on a per kilowatt-hour produced basis, and the length of time
financial assistance is provided;
new text end

new text begin (5) certification that the transaction between the public utility and the school for electricity
is the buy-all/sell-all method by which the public utility charges the school for all electricity
the school consumes at the applicable retail rate schedule for sales to the school based on
the school's customer class, and must credit or pay the school at the rate established in
subdivision 5;
new text end

new text begin (6) administrative procedures governing the application and financial benefit award
process, and the costs the public utility and the department are projected to incur to administer
the program;
new text end

new text begin (7) the public utility's proposed process for periodic reevaluation and modification of
the program; and
new text end

new text begin (8) any additional information required by the commissioner.
new text end

new text begin (b) The public utility may not implement the program until the commissioner approves
the public utility's plan submitted under this subdivision. The commissioner must approve
a plan under this subdivision that the commissioner determines to be in the public interest
no later than December 31, 2021. Any proposed modifications to the plan approved under
this subdivision must be approved by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin System eligibility. new text end

new text begin A solar energy system is eligible to receive financial benefits
under this section if it meets all of the following conditions:
new text end

new text begin (1) the solar energy system must be located on or adjacent to a school building receiving
retail electric service from the public utility and completely located within the public utility's
electric service territory, provided that any land situated between the school building and
the site where the solar energy system is installed is owned by the school district in which
the school building operates; and
new text end

new text begin (2) the total aggregate nameplate capacity of all distributed generation serving the school
building, including any subscriptions to a community solar garden under section 216B.1641,
may not exceed the lesser of one megawatt alternating current or 120 percent of the average
annual electric energy consumption of the school building.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin (a) A school seeking financial assistance under this section
must submit an application to the public utility, including a plan for how the school uses
the solar energy system as a visible learning tool for students, teachers, and visitors to the
school, and how the solar energy system may be integrated into the school's curriculum.
new text end

new text begin (b) The public utility must award financial assistance under this section on a first-come,
first-served basis.
new text end

new text begin (c) The public utility must discontinue accepting applications under this section after
all funds appropriated under subdivision 5 are allocated to program participants, including
funds from canceled projects.
new text end

new text begin Subd. 5. new text end

new text begin Benefits information. new text end

new text begin Before signing an agreement with the public utility to
receive financial assistance under this section, a school must obtain from the developer and
provide to the public utility information the developer shared with potential investors in the
project regarding future financial benefits to be realized from installation of a solar energy
system at the school and potential financial risks.
new text end

new text begin Subd. 6. new text end

new text begin Purchase rate; cost recovery; renewable energy credits. new text end

new text begin (a) The public utility
must purchase all of the electricity generated by a solar energy system receiving financial
assistance under this section at a rate of $.105 per kilowatt-hour generated.
new text end

new text begin (b) Payments by the public utility of the rate established under this subdivision to a
school receiving financial assistance under this section are fully recoverable by the public
utility through the public utility's fuel clause adjustment.
new text end

new text begin (c) The renewable energy credits associated with the electricity generated by a solar
energy system installed under this section are the property of the public utility that is subject
to this section.
new text end

new text begin Subd. 7. new text end

new text begin Limitation. new text end

new text begin (a) No more than 50 percent of the financial assistance provided
by the public utility to schools under this section may be provided 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.
new text end

new text begin (b) No more than ten percent of the total amount of financial assistance provided by the
public utility to schools under this section may be provided to schools that are part of the
same school district.
new text end

new text begin Subd. 8. 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.
new text end

new text begin Subd. 9. 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, 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