1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/05/2023 08:28am
A bill for an act
relating to state government; appropriating money for energy and commerce;
establishing and modifying energy, renewable energy, and utility provisions;
establishing a strengthen Minnesota homes program; requiring reports; amending
Minnesota Statutes 2022, sections 16B.325, subdivision 2; 16B.58, by adding a
subdivision; 16C.135, subdivision 3; 16C.137, subdivision 1; 116C.779, subdivision
1; 116C.7792; 168.27, by adding a subdivision; 216B.1641; 216B.1691, by adding
a subdivision; 216B.17, subdivision 1; 216B.2422, subdivision 2; 216B.62,
subdivision 3b; 216C.02, subdivision 1; 216C.264, subdivision 5, by adding
subdivisions; 216C.375, subdivisions 1, 3, 10, 11; proposing coding for new law
in Minnesota Statutes, chapters 16B; 65A; 116C; 123B; 216B; 216C; repealing
Minnesota Statutes 2022, sections 16B.24, subdivision 13; 216B.16, subdivision
10.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin APPROPRIATIONS.
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The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025. If an appropriation in this act is enacted more than once in
the 2023 legislative session, the appropriation must be given effect only once.
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APPROPRIATIONS new text end |
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Available for the Year new text end |
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Ending June 30 new text end |
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2024 new text end |
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2025 new text end |
Sec. 2. new text begin DEPARTMENT OF COMMERCE
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new text begin Subdivision 1. new text end
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Total Appropriation
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$ new text end |
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106,420,000 new text end |
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$ new text end |
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35,540,000 new text end |
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Appropriations by Fund new text end |
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2024 new text end |
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2025 new text end |
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General new text end |
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105,344,000 new text end |
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34,443,000 new text end |
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Petroleum Tank new text end |
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1,076,000 new text end |
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1,097,000 new text end |
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The amounts that may be spent for each
purpose are specified in the following
subdivisions.
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new text begin Subd. 2. new text end
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Energy Resources
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105,344,000 new text end |
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34,443,000 new text end |
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(a) $150,000 each year is to remediate
vermiculite insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
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(b) $15,000,000 in the first year is transferred
from the general fund to the solar for schools
program account in the special revenue fund
for grants under the solar for schools program
established under Minnesota Statutes, section
216C.375. The money under this paragraph
must be expended on schools located outside
the electric service territory of the public
utility that is subject to Minnesota Statutes,
section 116C.779.
new text end
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(c) $1,138,000 in the first year is to provide
financial assistance to schools that are state
colleges and universities to purchase and
install solar energy generating systems under
Minnesota Statutes, section 216C.375. This
appropriation must be expended on schools
located outside the electric service territory of
the public utility that is subject to Minnesota
Statutes, section 116C.779. Money under this
paragraph is available until June 30, 2034.
Any money remaining on June 30, 2034,
cancels to the general fund.
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(d) $189,000 each year is for activities
associated with a utility's implementation of
a natural gas innovation plan under Minnesota
Statutes, section 216B.2427.
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(e) $2,630,000 the first year and $21,340,000
the second year are for preweatherization work
to serve additional households and allow for
services that would otherwise be denied due
to current federal limitations related to the
federal weatherization assistance program.
Money under this paragraph is transferred
from the general fund to the preweatherization
account in the special revenue fund under
Minnesota Statutes, section 216C.264,
subdivision 1c. The base in fiscal year 2026
is $690,000 and the base in fiscal year 2027
is $690,000.
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(f) $3,739,000 each year is for the strengthen
Minnesota homes program under Minnesota
Statutes, section 65A.299, subdivision 4.
Money under this paragraph is transferred
from the general fund to the strengthening
Minnesota homes account in the special
revenue fund. The base in fiscal year 2026 and
later is $1,239,000.
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(g) $300,000 the first year is to conduct an
advanced nuclear study. This is a onetime
appropriation.
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(h) $850,000 the first year is for a grant to the
Minnesota Amateur Sports Commission to
replace the roof on the ice rink and a
maintenance facility at the National Sports
Center in Blaine in order to install solar arrays.
This is a onetime appropriation.
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(i) $500,000 the first year and $500,000 the
second year are for a grant to the clean energy
resource teams partnerships under Minnesota
Statutes, section 216C.385, subdivision 2, to
provide additional capacity to perform the
duties specified under Minnesota Statutes,
section 216C.385, subdivision 3.
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(j) $17,500,000 the first year is for a grant to
an investor-owned electric utility that has at
least 50,000 retail electric customers, but no
more than 200,000 retail electric customers,
to increase the capacity and improve the
reliability of an existing high-voltage direct
current transmission line that runs between
North Dakota and Minnesota. This is a
onetime appropriation and must be used to
support the cost-share component of a federal
grant application to a program enacted in the
federal Infrastructure Investment and Jobs Act,
Public Law 117-58, and may otherwise be
used to reduce the cost of the high-voltage
direct current transmission project upgrade.
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(k) $2,410,000 the first year and $2,410,000
the second year are for grants for the
development of clean energy projects by
Tribal nations or Tribal communities sharing
geographic borders with Minnesota. Of this
amount, $2,000,000 each year is for grants
and $410,000 each year is for technical
assistance and administrative support for the
Tribal Advocacy Council on Energy under
article 4, section 44. This is a onetime
appropriation and is available until June 30,
2027. As part of the technical assistance and
administrative support for the program, the
commissioner must hire a Tribal liaison to
support the Tribal Advocacy Council on
Energy and advise the department on the
development of a culturally responsive clean
energy grants program based on the priorities
identified by the Tribal Advocacy Council on
Energy.
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(l) $3,000,000 the first year is for a grant to
Clean Energy Economy Minnesota for the
Minnesota Energy Alley initiative to secure
the state's energy and economic development
future. The appropriation may be used to
establish and support the initiative, provide
seed funding for businesses, develop a training
and development program, support recruitment
of entrepreneurs to Minnesota, and secure
funding from federal programs and corporate
partners to establish a self-sustaining,
long-term revenue model. This is a onetime
appropriation.
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(m) $500,000 the first year is for a grant to the
city of Anoka for feasibility studies as
described in this paragraph and design,
engineering, and environmental analysis
related to the repair and reconstruction of the
Rum River Dam. Findings from the feasibility
studies must be incorporated into the design
and engineering funded by this appropriation.
This appropriation is onetime and is available
until June 30, 2027. This appropriation
includes money for the following studies: (1)
a study to assess the feasibility of adding a
lock or other means for boats to traverse the
dam to navigate between the lower Rum River
and upper Rum River; (2) a study to assess
the feasibility of constructing the dam in a
manner that would facilitate recreational river
surfing at the dam site; and (3) a study to
assess the feasibility of constructing the dam
in a manner to generate hydroelectric power.
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(n) $3,500,000 the first year is for awarding
electric panel upgrade grants under Minnesota
Statutes, section 216C.46, and to reimburse
the reasonable cost of the department to
administer the program. Grants awarded with
funds appropriated under this subdivision must
be awarded only to owners of single-family
homes or multifamily buildings that are
located outside the electric service area of the
public utility subject to Minnesota Statutes,
section 116C.779. This is a onetime
appropriation and remains available until June
30, 2032. Any money that remains
unexpended on June 30, 2032, cancels to the
general fund.
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(o) $10,000,000 the first year is for distributed
energy grants under Minnesota Statutes,
section 216C.377. Money under this paragraph
is transferred to the distributed energy
resources system upgrade program account
for eligible expenditures under the distributed
energy resources system upgrade program.
This is a onetime appropriation.
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(p) $5,000,000 the first year is for the
Minnesota Climate Innovation Finance
Authority established under Minnesota
Statutes, section 216C.441, for the purposes
of Minnesota Statutes, section 216C.441. This
is a onetime appropriation.
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(q) $1,000,000 the first year is for
implementing energy benchmarking under
Minnesota Statutes, section 216C.331. This
appropriation is onetime and is available until
June 30, 2027.
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(r) $750,000 the first year is for grants to
qualifying utilities to support the development
of technology for implementing energy
benchmarking under Minnesota Statutes,
section 216C.331. This is a onetime
appropriation and is available until June 30,
2026.
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(s) $750,000 the first year is for a grant to
Building Owners and Managers Association
Greater Minneapolis to establish partnerships
with three technical colleges and high school
career counselors with a goal of increasing the
number of building engineers across
Minnesota. This is a onetime appropriation
and is available until June 30, 2028. The grant
recipient must provide a detailed report
describing how the grant money was used to
the chairs and ranking minority members of
the legislative committees having jurisdiction
over higher education by January 15 of each
year until 2028. The report must describe the
progress made toward the goal of increasing
the number of building engineers and
strategies used.
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(t) $6,000,000 the first year is to implement
the heat pump rebate program under
Minnesota Statutes, section 216C.45, and to
reimburse the reasonable costs incurred by the
department to administer the program. Of this
amount: (1) $4,000,000 is to award rebates
under Minnesota Statutes, section 216C.45,
subdivision 4; and (2) $2,000,000 is to conduct
contractor training and support under
Minnesota Statutes, section 216C.45,
subdivision 6. This is a onetime appropriation.
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(u) $2,000,000 the first year is to award
rebates to purchase or lease eligible electric
vehicles under Minnesota Statutes, section
216C.401. Rebates must be awarded under
this paragraph only to eligible purchasers
located outside the retail electric service area
of the public utility that is subject to
Minnesota Statutes, section 116C.779. This is
a onetime appropriation.
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(v) $2,000,000 the first year is to award grants
under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification to
sell electric vehicles. Grants must only be
awarded under this paragraph to eligible
dealers located outside the retail electric
service area of the public utility that is subject
to Minnesota Statutes, section 116C.779. This
is a onetime appropriation.
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(w) $2,000,000 the first year is for grants to
install on-site energy storage systems, as
defined in Minnesota Statutes, section
216B.2422, subdivision 1, paragraph (f), with
a capacity of 50 kilowatt hours or less and that
are located outside the electric service area of
the electric utility subject to Minnesota
Statutes, section 116C.779. To receive a grant
under this paragraph, an owner of the energy
storage system must be operating a solar
energy generating system at the same site as
the energy storage system or have filed an
application with a utility to interconnect a solar
energy generating system at the same site as
the energy storage system. This is a onetime
appropriation and is available until June 30,
2027.
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(x) $500,000 the first year is for a feasibility
study to identify and process Minnesota iron
resources that could be suitable for upgrading
to long-term battery storage specifications.
The results of the feasibility study must be
submitted to the commissioner of commerce
and to the chairs and ranking minority
members of the house of representatives and
senate committees with jurisdiction over
energy policy no later than February 1, 2025.
This is a onetime appropriation.
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(y) $15,000,000 the first year is for electric
grid resiliency grants under article 4, section
45. This is a onetime appropriation and is
available until June 30, 2028.
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(z) $2,000,000 the first year is for electric
school bus grants under Minnesota Statutes,
section 216B.1616. This is a onetime
appropriation.
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(aa) $1,000,000 the first year is for grants
under the Air Ventilation Program Act.
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new text begin Subd. 3. new text end
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Petroleum Tank Release Compensation
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1,076,000 new text end |
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1,097,000 new text end |
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This appropriation is from the petroleum tank
fund.
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Sec. 3. new text begin PUBLIC UTILITIES COMMISSION
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$ new text end |
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10,168,000 new text end |
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$ new text end |
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10,430,000 new text end |
Sec. 4. new text begin AGRICULTURE
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$ new text end |
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12,892,000 new text end |
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$ new text end |
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0 new text end |
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$12,892,000 the first year is for grants to
cooperatives to invest in green fertilizer
production facilities, as provided under article
4, section 47. This is a onetime appropriation
and is available until June 30, 2032.
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Sec. 5. new text begin ADMINISTRATION
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$ new text end |
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1,190,000 new text end |
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$ new text end |
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0 new text end |
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(a) $690,000 the first year is for a contract
with the Board of Regents of the University
of Minnesota for the Institute on the
Environment to research and provide
recommendations for establishing new energy
guidelines for state buildings under Minnesota
Statutes, section 16B.325, subdivision 2. The
grant agreement must require the director of
the Institute on the Environment to submit a
written report that summarizes the findings
and recommendations, including
recommendations for policy and legislative
changes, to the chairs and ranking minority
members of the legislative committees in the
house of representatives and the senate with
primary jurisdiction over energy policy and
capital investment.
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(b) $500,000 the first year is for the
environmental analysis of construction
materials under Minnesota Statutes, section
16B.312. Of this amount, $300,000 is
transferred to the Department of
Transportation.
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Section 1. new text begin RENEWABLE DEVELOPMENT FINANCE.
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(a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
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(b) If an appropriation in this article is enacted more than once in the 2023 regular or
special legislative session, the appropriation must be given effect only once.
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APPROPRIATIONS new text end |
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Available for the Year new text end |
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Ending June 30 new text end |
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2024 new text end |
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2025 new text end |
Sec. 2. new text begin DEPARTMENT OF COMMERCE
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new text begin Subdivision 1. new text end
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Total Appropriation
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$ new text end |
new text begin
51,920,000 new text end |
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$ new text end |
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8,000,000 new text end |
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The amounts that may be spent for each
purpose are specified in the following
subdivisions.
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new text begin Subd. 2. new text end
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"Made in Minnesota" Administration
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$100,000 each year is to administer the "Made
in Minnesota" solar energy production
incentive program under Minnesota Statutes,
section 216C.417. Any unspent amount
remaining on June 30, 2025, cancels to the
renewable development account.
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new text begin Subd. 3. new text end
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Third-Party Evaluator
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$500,000 each year is for costs associated with
any third-party expert evaluation of a proposal
submitted in response to a request for proposal
to the Renewable Development Advisory
Group under Minnesota Statutes, section
116C.779, subdivision 1, paragraph (l). No
portion of this appropriation may be expended
or retained by the commissioner of commerce.
Any money appropriated under this paragraph
that is unexpended at the end of a fiscal year
cancels to the renewable development account.
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new text begin Subd. 4. new text end
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Microgrid Research and Application
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(a) $3,000,000 the first year and $400,000 the
second year are for a grant to the University
of St. Thomas Center for Microgrid Research
for the purposes of paragraph (b). The base in
fiscal year 2026 is $400,000 and $0 in fiscal
year 2027.
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(b) The appropriations in this subdivision must
be used by the University of St. Thomas
Center for Microgrid Research to:
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(1) increase the center's capacity to provide
industry partners opportunities to test
near-commercial microgrid products on a
real-world scale and to multiply opportunities
for innovative research;
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(2) procure advanced equipment and controls
to enable the extension of the university's
microgrid to additional buildings; and
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(3) expand (i) hands-on educational
opportunities for undergraduate and graduate
electrical engineering students to increase
understanding of microgrid operations, and
(ii) partnerships with community colleges.
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(c) $4,100,000 the first year is for a grant to
the University of St. Thomas Center for
Microgrid Research for capacity building and
matching requirements as a condition of
receiving federal funds. This appropriation is
available until June 30, 2034.
new text end
new text begin Subd. 5. new text end
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Solar on State College and University
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new text begin
$1,138,000 the first year is to provide financial
assistance to schools that are state colleges
and universities to purchase and install solar
energy generating systems under Minnesota
Statutes, section 216C.376. This appropriation
must be expended on schools located inside
the electric service territory of the public
utility that is subject to Minnesota Statutes,
section 116C.779. This is a onetime
appropriation and is available until June 30,
2025.
new text end
new text begin Subd. 6. new text end
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Granite Falls Hydroelectric Generating
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new text begin
$2,432,000 the first year is for a grant to the
city of Granite Falls for repair and overage
costs related to the city's existing hydroelectric
generating facility. This is a onetime
appropriation and any amount unexpended by
June 30, 2025, cancels to the renewable
development account.
new text end
new text begin Subd. 7. new text end
new text begin
National Sports Center Solar Array
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new text begin
$4,150,000 the first year is to the Minnesota
Amateur Sports Commission to install solar
arrays. This appropriation may be used to
replace the roof and install solar arrays on an
ice rink and a maintenance facility at the
National Sports Center in Blaine. This is a
onetime appropriation.
new text end
new text begin Subd. 8. new text end
new text begin
Electric Vehicle Rebates
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(a) $2,000,000 the first year is to award rebates
to purchase or lease eligible electric vehicles
under Minnesota Statutes, section 216C.401.
Rebates must be awarded under this paragraph
only to eligible purchasers located within the
retail electric service area of the public utility
that is subject to Minnesota Statutes, section
116C.779.
new text end
new text begin
(b) $2,000,000 the first year is to award grants
under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification
from an electric vehicle manufacturer to sell
electric vehicles. Rebates must only be
awarded under this paragraph to eligible
dealers located within the retail electric service
area of the public utility that is subject to
Minnesota Statutes, section 116C.779.
new text end
new text begin Subd. 9. new text end
new text begin
Area C Contingency Account
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new text begin
$3,000,000 the first year is for deposit in the
Area C contingency account for the purposes
of Minnesota Statutes, section 116C.7793.
This appropriation is available until June 30,
2028, or five years after the Pollution Control
Agency issues any corrective action
determination regarding the remediation of
Area C under Minnesota Statutes, section
116C.7793, subdivision 3, whichever is later.
Any unexpended money remaining in the
account on June 30, 2028, cancels to the
renewable development account.
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new text begin Subd. 10. new text end
new text begin
Electric Panel Upgrade Grants
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new text begin
$3,500,000 the first year is for the purpose of
awarding electric panel upgrade grants under
Minnesota Statutes, section 216C.46, and to
reimburse the reasonable cost of the
department to administer the program. Grants
awarded with funds appropriated under this
subdivision must be awarded only to owners
of single-family homes or multifamily
buildings that are located within the electric
service area of the public utility subject to
Minnesota Statutes, section 116C.779. This is
a onetime appropriation and remains available
until June 30, 2032. Any unexpended money
that remains unexpended on June 30, 2032,
cancels to the renewable development account.
new text end
new text begin Subd. 11. new text end
new text begin
Emerald Ash Borer Wood Dehydrator
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new text begin
(a) $2,000,000 the second year is for a grant
to the owner of a biomass energy generation
plant in Shakopee that uses waste heat from
the generation of electricity in the malting
process to purchase a wood dehydrator to
facilitate disposal of wood that is infested by
emerald ash borer. This is a onetime
appropriation.
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(b) By October 1, 2024, the commissioner of
commerce must report to the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over commerce on the use of money
appropriated under this subdivision.
new text end
new text begin Subd. 12. new text end
new text begin
Energy Storage Incentive Grants
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new text begin
$10,000,000 the first year is to award grants
to install energy storage systems under
Minnesota Statutes, section 216C.379, and to
pay the reasonable costs incurred by the
department to administer Minnesota Statutes,
section 216C.379. This is a onetime
appropriation and is available until June 30,
2027.
new text end
new text begin Subd. 13. new text end
new text begin
Distributive Energy Resources System
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new text begin
$5,000,000 the second year is for eligible
expenditures under the distributed energy
resources system upgrade program established
in Minnesota Statutes, section 216C.377. Of
this amount, $250,000 is to implement the
small interconnection cost-sharing program
ordered by the Public Utilities Commission
on December 19, 2022, in Docket
E002/M-18-714, to cover the costs of certain
distribution upgrades for customers of the
utility subject to Minnesota Statutes, section
116C.779, seeking to interconnect distributed
generation of up to a certain size. The
appropriation under this subdivision may be
used for the reasonable costs of distribution
upgrades as defined in Minnesota Statutes,
section 216C.377, subdivision 1.
new text end
new text begin Subd. 14. new text end
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Heat Pump Grants
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new text begin
$6,000,000 the first year is to implement the
heat pump rebate program under Minnesota
Statutes, section 216C.45, and to reimburse
the reasonable costs incurred by the
department to administer the program.
new text end
new text begin Subd. 15. new text end
new text begin
Solar on Public Buildings
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new text begin
$5,000,000 the first year is for deposit in the
solar on public buildings grant program
account for the grant program described in
Minnesota Statutes, section 216C.378. The
appropriation in this subdivision must be used
only to provide grants to public buildings
located within the electric service area of the
electric utility subject to Minnesota Statutes,
section 116C.779.
new text end
new text begin Subd. 16. new text end
new text begin
Electric School Bus Grants
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new text begin
$5,000,000 the first year is for electric school
bus grants under Minnesota Statutes, section
216B.1616.
new text end
Sec. 3. new text begin DEPARTMENT OF
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new text begin
$ new text end |
new text begin
90,000 new text end |
new text begin
$ new text end |
new text begin
92,000 new text end |
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$90,000 the first year and $92,000 the second
year are for software and administrative costs
associated with the state building energy
conservation improvement revolving loan
program under Minnesota Statutes, section
16B.87.
new text end
Sec. 4. new text begin DEPARTMENT OF EMPLOYMENT
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new text begin
$ new text end |
new text begin
5,000,000 new text end |
new text begin
$ new text end |
new text begin
0 new text end |
new text begin
$5,000,000 the first year is for the community
energy transition grant program under
Minnesota Statutes, section 116J.55. This is
a onetime appropriation and is available until
June 30, 2028.
new text end
new text begin
(a) For purposes of this section, the following term has the
meaning given.
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new text begin
(b) "Insurable property" means a residential property designated as meeting the Fortified
program standards as administered by the Insurance Institute for Business and Home Safety
(IBHS).
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(a) An insurer must provide a premium discount or
an insurance rate reduction to an owner who builds or locates a new insurable property in
Minnesota.
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(b) An owner of insurable property claiming a premium discount or rate reduction under
this subdivision must submit a certificate issued by IBHS showing proof of compliance
with the Fortified program standards to the insurer prior to receiving the premium discount
or rate reduction.
new text end
new text begin
(a) An insurer must provide a premium discount
or insurance rate reduction to an owner who retrofits an existing property to meet the
requirements to be an insurable property in Minnesota.
new text end
new text begin
(b) An owner of insurable property claiming a premium discount or rate reduction under
this subdivision must submit a certificate issued by IBHS showing proof of compliance
with the Fortified program standards to the insurer prior to receiving the premium discount
or rate reduction.
new text end
new text begin
(a) An insurer must submit to the commissioner actuarially justified
rates and a rating plan for a person who builds or locates a new insurable property in
Minnesota.
new text end
new text begin
(b) An insurer must submit to the commissioner actuarially justified rates and a rating
plan for a person who retrofits an existing property to meet the requirements to be an
insurable property.
new text end
new text begin
(c) An insurer may offer, in addition to the premium discount and insurance rate
reductions required under subdivisions 2 and 3, more generous mitigation adjustments to
an owner of insurable property.
new text end
new text begin
(d) Any premium discount, rate reduction, or mitigation adjustment offered by an insurer
under this section applies only to policies that include wind coverage and may be applied
(1) only to the portion of the premium for wind coverage or; (2) for the total premium, if
the insurer does not separate the premium for wind coverage in the insurer's rate filing.
new text end
new text begin
This section may be cited as the "Strengthen Minnesota
Homes Act."
new text end
new text begin
(a) For purposes of this section, the terms in this subdivision have
the meanings given.
new text end
new text begin
(b) "Insurable property" has the meaning given in section 65A.298, subdivision 1.
new text end
new text begin
(c) "Program" means the Strengthen Minnesota Homes program established under this
section.
new text end
new text begin
The Strengthen Minnesota
Homes program is established within the Department of Commerce. The purpose of the
program is to provide grants to retrofit insurable property to resist loss due to common
perils, including but not limited to tornadoes or other catastrophic windstorm events.
new text end
new text begin
(a) A strengthen
Minnesota homes account is created as a separate account in the special revenue fund of
the state treasury. The account consists of money provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund and remains in the account until expended. The commissioner
must manage the account.
new text end
new text begin
(b) Money in the account is appropriated to the commissioner to pay for (1) grants issued
under the program, and (2) the reasonable costs incurred by the commissioner to administer
the program.
new text end
new text begin
(a) A grant under this section must be used to retrofit an insurable
property.
new text end
new text begin
(b) Grant money provided under this section must not be used for maintenance or repairs,
but may be used in conjunction with repairs or reconstruction necessitated by damage from
wind or hail.
new text end
new text begin
(c) A project funded by a grant under this section must be completed within three months
of the date the grant is approved. Failure to complete the project in a timely manner may
result in forfeiture of the grant.
new text end
new text begin
The commissioner must develop (1) administrative
procedures to implement this section, and (2) criteria used to determine whether an applicant
is eligible for a grant under this section.
new text end
new text begin
(a) To be eligible to work as a
contractor on a project funded by a grant under this section, the contractor must meet all of
the following program requirements and must maintain a current copy of all certificates,
licenses, and proof of insurance coverage with the program office. The eligible contractor
must:
new text end
new text begin
(1) hold a valid residential building contractor and residential remodeler license issued
by the commissioner of labor and industry;
new text end
new text begin
(2) not be subject to disciplinary action by the commissioner of labor and industry;
new text end
new text begin
(3) hold any other valid state or jurisdictional business license or work permits required
by law;
new text end
new text begin
(4) possess an in-force general liability policy with $1,000,000 in liability coverage;
new text end
new text begin
(5) possess an in-force workers' compensation policy with $1,000,000 in coverage;
new text end
new text begin
(6) possess a certificate of compliance from the commissioner of revenue;
new text end
new text begin
(7) successfully complete the Fortified Roof for High Wind and Hail training provided
by the IBHS or IBHS's successor and maintain an active certification and provide a certificate
of successful completion. The training may be offered as separate courses;
new text end
new text begin
(8) agree to the terms and successfully register as a vendor with the commissioner of
management and budget and receive direct deposit of payment for mitigation work performed
under the program;
new text end
new text begin
(9) maintain Internet access and keep a valid email address on file with the program and
remain active in the commissioner of management and budget's vendor and supplier portal
while working on the program;
new text end
new text begin
(10) maintain an active email address for the communication with the program;
new text end
new text begin
(11) successfully complete the program training; and
new text end
new text begin
(12) agree to follow program procedures and rules established under this section and by
the commissioner.
new text end
new text begin
(b) An eligible contractor must not have a financial interest, other than payment on
behalf of the homeowner, in any project for which the eligible contractor performs work
toward a fortified designation under the program. An eligible contractor is prohibited from
acting as the evaluator for a fortified designation on any project funded by the program. An
eligible contractor must report to the commissioner regarding any potential conflict of
interest before work commences on any job funded by the program.
new text end
new text begin
(a) To be eligible to work on the
program as an evaluator, the evaluator must meet all program eligibility requirements and
must submit to the commissioner and maintain a copy of all current certificates and licenses.
The evaluator must:
new text end
new text begin
(1) be in good standing with IBHS and maintain an active certification as a fortified
home evaluator for high wind and hail or a successor certification;
new text end
new text begin
(2) possess a Minnesota business license and be registered with the secretary of state;
and
new text end
new text begin
(3) successfully complete the program training.
new text end
new text begin
(b) An evaluator must not have a financial interest in any project that the evaluator
inspects for designation purposes for the program. An evaluator must not be an eligible
contractor or supplier of any material, product, or system installed in any home that the
evaluator inspects for designation purposes for the program. An evaluator must not be a
sales agent for any home being designated for the program. An evaluator must inform the
commissioner of any potential conflict of interest impacting the evaluator's participation in
the program.
new text end
new text begin
(a) The commissioner must review all applications
for completeness and must perform appropriate audits to verify (1) the accuracy of the
information on the application, and (2) that the applicant meets all eligibility rules. All
verified applicants must be placed in the order the application was received. Grants must
be awarded on a first-come, first-served basis, subject to availability of money for the
program.
new text end
new text begin
(b) When a grant is approved, an approval letter must be sent to the applicant.
new text end
new text begin
(c) An eligible contractor is prohibited from beginning work until a grant is approved.
new text end
new text begin
(d) In order to ensure equitable distribution of grants in proportion to the income
demographics in counties where the program is made available, grant applications must be
accepted on a first-come, first-served basis. The commissioner may establish pilot projects
as needed to establish a sustainable program distribution system in any geographic area
within Minnesota.
new text end
new text begin
(a) After a grant application
is approved, the eligible contractor selected by the homeowner may begin the mitigation
work.
new text end
new text begin
(b) Once the mitigation work is completed, the eligible contractor must submit a copy
of the signed contract to the commissioner, along with an invoice seeking payment and an
affidavit stating the fortified standards were met by the work.
new text end
new text begin
(c) The IBHS evaluator must conduct all required evaluations, including a required
interim inspection during construction and the final inspection, and must confirm that the
work was completed according to the mitigation specifications.
new text end
new text begin
(d) Grant money must be released on behalf of an approved applicant only after a fortified
designation certificate has been issued for the home. The program or another designated
entity must, on behalf of the homeowner, directly pay the eligible contractor that performed
the mitigation work. The program or the program's designated entity must pay the eligible
contractor the costs covered by the grant. The homeowner must pay the eligible contractor
for the remaining cost after receiving an IBHS fortified certificate.
new text end
new text begin
(e) The program must confirm that the homeowner's insurer provides the appropriate
premium credit.
new text end
new text begin
(f) The program must conduct random reinspections to detect any fraud and must submit
any irregularities to the attorney general.
new text end
new text begin
(a) This section does not create an entitlement for property
owners or obligate the state of Minnesota to pay for residential property in Minnesota to be
inspected or retrofitted. The program under this section is subject to legislative appropriations,
the receipt of federal grants or money, or the receipt of other sources of grants or money.
The department may obtain grants or other money from the federal government or other
funding sources to support and enhance program activities.
new text end
new text begin
(b) All mitigation under this section is contingent upon securing all required local permits
and applicable inspections to comply with local building codes and applicable Fortified
program standards. A mitigation project receiving a grant under this section is subject to
random reinspection at a later date.
new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Carbon steel" means steel in which the main alloying element is carbon and whose
properties are chiefly dependent on the percentage of carbon present.
new text end
new text begin
(c) "Commissioner" means the commissioner of administration.
new text end
new text begin
(d) "Electric arc furnace" means a furnace that produces molten alloy metal and heats
the charge materials with electric arcs from carbon electrodes.
new text end
new text begin
(e) "Eligible material" means:
new text end
new text begin
(1) carbon steel rebar;
new text end
new text begin
(2) structural steel;
new text end
new text begin
(3) concrete; or
new text end
new text begin
(4) asphalt paving mixtures.
new text end
new text begin
(f) "Eligible project" means:
new text end
new text begin
(1) new construction of a state building larger than 50,000 gross square feet of occupied
or conditioned space;
new text end
new text begin
(2) renovation of more than 50,000 gross square feet of occupied or conditioned space
in a state building whose renovation cost exceeds 50 percent of the building's assessed value;
or
new text end
new text begin
(3) new construction or reconstruction of two or more lane-miles of a trunk highway.
new text end
new text begin
(g) "Environmental product declaration" means a supply chain specific type III
environmental product declaration that:
new text end
new text begin
(1) contains a material production lifecycle assessment of the environmental impacts of
manufacturing a specific product by a specific firm, including the impacts of extracting and
producing the raw materials and components that compose the product;
new text end
new text begin
(2) is verified by a third party; and
new text end
new text begin
(3) meets the ISO 14025 standard developed and maintained by the International
Organization for Standardization (ISO).
new text end
new text begin
(h) "Global warming potential" has the meaning given in section 216H.10, subdivision
6.
new text end
new text begin
(i) "Greenhouse gas" has the meaning given to "statewide greenhouse gas emissions"
in section 216H.01, subdivision 2.
new text end
new text begin
(j) "Integrated steel production" means the production of iron and subsequently steel
primarily from iron ore or iron ore pellets.
new text end
new text begin
(k) "Lifecycle" means an analysis that includes the environmental impacts of all stages
of a specific product's production, from mining and processing the product's raw materials
to the process of manufacturing the product.
new text end
new text begin
(l) "Rebar" means a steel reinforcing bar or rod encased in concrete.
new text end
new text begin
(m) "Secondary steel production" means the production of steel from primarily ferrous
scrap and other metallic inputs that are melted and refined in an electric arc furnace.
new text end
new text begin
(n) "State building" means a building owned by the state of Minnesota or a Minnesota
state agency.
new text end
new text begin
(o) "Structural steel" means steel that is classified by the shape of the steel's
cross-sections, such as I, T, and C shapes.
new text end
new text begin
(p) "Supply chain specific" means an environmental product declaration that includes
specific data for the production processes of the materials and components composing a
product that contribute at least 80 percent of the product's material production lifecycle
global warming potential, as defined in ISO standard 21930.
new text end
new text begin
(a) The commissioner shall,
after reviewing the recommendations from the Environmental Standards Procurement Task
Force made under subdivision 5, paragraph (c), establish and publish a maximum acceptable
global warming potential for each eligible material used in an eligible project, in accordance
with the following schedule:
new text end
new text begin
(1) for concrete used in buildings, no later than January 15, 2026; and
new text end
new text begin
(2) for carbon steel rebar and structural steel and, after conferring with the commissioner
of transportation, for asphalt paving mixtures and concrete pavement, no later than January
15, 2028.
new text end
new text begin
(b) The commissioner shall, after considering nationally or internationally recognized
databases of environmental product declarations for an eligible material, establish the
maximum acceptable global warming potential for the eligible material.
new text end
new text begin
(c) The commissioner may set different maximum global warming potentials for different
specific products and subproduct categories that are examples of the same eligible material
based on distinctions between eligible material production and manufacturing processes,
such as integrated versus secondary steel production.
new text end
new text begin
(d) The commissioner must establish maximum global warming potentials that are
consistent with criteria in an environmental product declaration.
new text end
new text begin
(e) Not later than three years after establishing the maximum global warming potential
for an eligible material under paragraph (a) and not longer than every three years thereafter
the commissioner, after conferring with the commissioner of transportation with respect to
asphalt paving mixtures and concrete pavement, shall review the maximum acceptable
global warming potential for each eligible material and for specific eligible material products.
The commissioner may adjust any of the values downward to reflect industry improvements
if, based on the process described in paragraph (b), the commissioner determines the industry
average has declined.
new text end
new text begin
The Department of Administration and the Department
of Transportation shall, after reviewing the recommendations of the Environmental Standards
Procurement Task Force made under subdivision 5, paragraph (c), establish processes for
incorporating the maximum allowable global warming potential of eligible materials into
bidding processes by the effective dates listed in subdivision 2.
new text end
new text begin
(a) No later than July 1, 2024, the Department of Administration
must establish a pilot program that seeks to obtain from vendors an estimate of the material
production lifecycle greenhouse gas emissions of products selected by the departments from
among those procured. The pilot program must encourage, but may not require, a vendor
to submit the following data for each selected product that represents at least 90 percent of
the total cost of the materials or components composing the selected product:
new text end
new text begin
(1) the quantity of the product purchased by the department;
new text end
new text begin
(2) a current environmental product declaration for the product;
new text end
new text begin
(3) the name and location of the product's manufacturer;
new text end
new text begin
(4) a copy of the vendor's Supplier Code of Conduct, if any;
new text end
new text begin
(5) the names and locations of the product's actual production facilities; and
new text end
new text begin
(6) an assessment of employee working conditions at the product's production facilities.
new text end
new text begin
(b) The Department of Administration must construct or provide access to a publicly
accessible database, which shall be posted on the department's website and contain the data
reported to the department under this subdivision.
new text end
new text begin
(a) No later than October
1, 2023, the commissioners of administration and transportation must establish an
Environmental Standards Procurement Task Force to examine issues surrounding the
implementation of a program requiring vendors of certain construction materials purchased
by the state to:
new text end
new text begin
(1) submit environmental product declarations that assess the material production lifecycle
environmental impacts of the materials to state officials as part of the procurement process;
and
new text end
new text begin
(2) meet standards established by the commissioner of administration that limit
greenhouse gas emissions impacts of the materials.
new text end
new text begin
(b) The task force must examine, at a minimum, the following:
new text end
new text begin
(1) which construction materials should be subject to the program requirements and
which construction materials should be considered to be added, including lumber, aluminum,
glass, and insulation;
new text end
new text begin
(2) what factors should be considered in establishing greenhouse gas emissions standards,
including distinctions between eligible material production and manufacturing processes,
such as integrated versus secondary steel production;
new text end
new text begin
(3) a schedule for the development of standards for specific materials and for
incorporating the standards into the purchasing process, including distinctions between
eligible material production and manufacturing processes;
new text end
new text begin
(4) the development and use of financial incentives to reward vendors for developing
products whose greenhouse gas emissions are below the standards;
new text end
new text begin
(5) the provision of grants to defer a vendor's cost to obtain environmental product
declarations;
new text end
new text begin
(6) how to ensure that lowering environmental product declaration values does not
negatively impact the durability or longevity of construction materials or built structures;
new text end
new text begin
(7) how the issues in clauses (1) to (5) are addressed by existing programs in other states
and countries;
new text end
new text begin
(8) coordinating with the federal Buy Clean Task Force established under Executive
Order 14057 and representatives of the United States Departments of Commerce, Energy,
Housing and Urban Development, and Transportation; Environmental Protection Agency;
General Services Administration; White House Office of Management and Budget; and the
White House Domestic Climate Policy Council; and
new text end
new text begin
(9) any other issues the task force deems relevant.
new text end
new text begin
(c) The task force shall make recommendations to the commissioners of administration
and transportation regarding:
new text end
new text begin
(1) how to implement requirements that maximum global warming impacts for eligible
materials be integrated into the bidding process for eligible projects;
new text end
new text begin
(2) incentive structures that can be included in bidding processes to encourage the use
of materials whose global warming potential is below the maximum established under
subdivision 2;
new text end
new text begin
(3) how a successful bidder for a contract notifies the commissioner of the specific
environmental product declaration for a material used on a project;
new text end
new text begin
(4) a process for waiving the requirements to procure materials below the maximum
global warming potential resulting from product supply problems, geographic
impracticability, or financial hardship;
new text end
new text begin
(5) a system for awarding grants to manufacturers of eligible materials located in
Minnesota to offset the cost of obtaining environmental product declarations or otherwise
collect environmental product declaration data from manufacturers based in Minnesota;
new text end
new text begin
(6) whether to use an industry average or a different method to set the maximum allowable
global warming potential, or whether that average could be used for some materials but not
others;
new text end
new text begin
(7) how to create and manage a database for environmental product declaration data that
is consistent with data governance procedures of the departments and is compatible for data
sharing with other states and federal agencies;
new text end
new text begin
(8) how to account for differences among geographical regions with respect to the
availability of covered materials, fuel and other necessary resources, and the quantity of
covered materials that the department uses or plans to use; and
new text end
new text begin
(9) any other items task force deems necessary in order to implement this section.
new text end
new text begin
(d) Members of the task force must include but are not limited to representatives of:
new text end
new text begin
(1) the Departments of Administration and Transportation;
new text end
new text begin
(2) the Center for Sustainable Building Research at the University of Minnesota;
new text end
new text begin
(3) the Aggregate and Ready Mix Association of Minnesota;
new text end
new text begin
(4) the Concrete Paving Association of Minnesota;
new text end
new text begin
(5) the Minnesota Asphalt Pavement Association;
new text end
new text begin
(6) the Minnesota Board of Engineering;
new text end
new text begin
(7) a representative of the Minnesota iron mining industry;
new text end
new text begin
(8) building and transportation construction firms;
new text end
new text begin
(9) suppliers of eligible materials;
new text end
new text begin
(10) organized labor in the construction trades;
new text end
new text begin
(11) organized labor in the manufacturing or industrial sectors;
new text end
new text begin
(12) environmental advocacy organizations; and
new text end
new text begin
(13) environmental justice organizations.
new text end
new text begin
(e) The Department of Administration must provide meeting space and serve as staff to
the task force.
new text end
new text begin
(f) The commissioner of administration or the commissioner's designee shall serve as
chair of the task force. The task force must meet at least four times annually and may convene
additional meetings at the call of the chair.
new text end
new text begin
(g) The commissioner of administration shall summarize the findings and
recommendations of the task force in a report submitted to the chairs and ranking minority
members of the senate and house of representatives committees with primary jurisdiction
over state government, transportation, and energy no later than December 1, 2025, and
annually thereafter for as long as the task force continues its operations.
new text end
new text begin
(h) The task force is subject to section 15.059, subdivision 6.
new text end
new text begin
(i) The task force expires on January 1, 2029.
new text end
new text begin
A grant program is
established in the Department of Administration to award grants to manufacturers to assist
in obtaining environmental product declarations or in otherwise collecting environmental
product declaration data from manufacturers in Minnesota. The commissioner of
administration shall develop procedures for processing grant applications and making grant
awards. Grant applicants must submit an application to the commissioner on a form
prescribed by the commissioner. The commissioner shall act as fiscal agent for the grant
program and is responsible for receiving and reviewing grant applications and awarding
grants under this subdivision.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 16B.325, subdivision 2, is amended to read:
The guidelines mustnew text begin :
new text end
new text begin (1)new text end focus on achieving the lowest possible lifetime costnew text begin , considering both construction
and operating costs,new text end for new buildings and major renovationsdeleted text begin , anddeleted text end new text begin ;
new text end
new text begin (2)new text end allow for deleted text begin changes in the guidelinesdeleted text end new text begin revisionsnew text end that encourage continual energy
conservation improvements in new buildings and major renovationsdeleted text begin . The guidelines shalldeleted text end new text begin ;
new text end
new text begin (3)new text end define "major renovations" for purposes of this sectiondeleted text begin . The definition may not allow
"major renovations"deleted text end to encompass new text begin not new text end less than 10,000 square feet or deleted text begin to encompassdeleted text end new text begin notnew text end less
than the replacement of the mechanical, ventilation, or cooling system of deleted text begin thedeleted text end new text begin anew text end building or
a new text begin building new text end section deleted text begin of the building. The design guidelines mustdeleted text end new text begin ;
new text end
new text begin (4)new text end establish sustainability guidelines that include air quality and lighting standards and
that create and maintain a healthy environment and facilitate productivity improvements;
new text begin
(5) establish resiliency guidelines to encourage design that allows buildings to adapt to
and accommodate projected climate-related changes that are reflected in both acute events
and chronic trends, including but not limited to changes in temperature and precipitation
levels;
new text end
new text begin (6)new text end specify ways to reduce material costs; and deleted text begin must
deleted text end
new text begin (7)new text end consider the long-term operating costs of the building, including the use of renewable
energy sources and distributed electric energy generation that uses a renewable source or
natural gas or a fuel that is as clean or cleaner than natural gas.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 16B.58, is amended by adding a subdivision to
read:
new text begin
A person that charges a privately owned electric
vehicle at a charging station located within the Capitol area, as defined in section 15B.02,
must pay an electric service fee established by the commissioner.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 16C.135, subdivision 3, is amended to read:
new text begin (a) new text end Consistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the enterprise fleet or for use by an agency, the commissioner
or the agency shall purchase deleted text begin a motor vehicle that is capable of being powered by cleaner
fuels, or a motor vehicle powered by electricity or by a combination of electricity and liquid
fuel, if the total life-cycle cost of ownership is less than or comparable to that of other
vehicles and if the vehicle is capabledeleted text end new text begin the motor vehicle according to the following vehicle
preference order:
new text end
new text begin
(1) an electric vehicle;
new text end
new text begin
(2) a hybrid electric vehicle;
new text end
new text begin
(3) a vehicle capable of being powered by cleaner fuels; and
new text end
new text begin
(4) a vehicle powered by gasoline or diesel fuel.
new text end
new text begin
(b) The commissioner may only reject a vehicle that is higher on the vehicle preference
order if:
new text end
new text begin (1) the vehicle type is incapablenew text end of carrying out the purpose for which it is purchaseddeleted text begin .deleted text end new text begin ;
or
new text end
new text begin
(2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten
percent higher than the next vehicle type on the vehicle preference order.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 16C.137, subdivision 1, is amended to read:
Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:
(1) ensure that all new on-road vehicles deleted text begin purchaseddeleted text end , excluding emergency and law
enforcement vehiclesdeleted text begin :deleted text end new text begin , are purchased in conformity with the vehicle preference order
established in section 16C.135, subdivision 3;
new text end
deleted text begin
(i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
deleted text end
deleted text begin
(ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
deleted text end
deleted text begin
(iii) are powered solely by electricity;
deleted text end
(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and
(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 116C.779, subdivision 1, is amended to read:
(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.
(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
to transfer under this paragraph.
(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
plant must transfer to the renewable development account $500,000 each year for each dry
cask containing spent fuel that is located at the Prairie Island power plant for each year the
plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
part of a year.
(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.
(e) Each year, the public utility shall withhold from the funds transferred to the renewable
development account under paragraphs (c) and (d) the amount necessary to pay its obligations
under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
(f) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e).
(g) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e).
(h) The collective amount paid under the grant contracts awarded under paragraphs (f)
and (g) is limited to the amount deposited into the renewable development account, and its
predecessor, the renewable development account, established under this section, that was
not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
10.
(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
in which the commission finds, by the preponderance of the evidence, that the public utility
did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
permanent or interim storage site out of the state. This determination shall be made at least
every two years.
(j) Funds in the account may be expended only for any of the following purposes:
(1) to stimulate research and development of renewable electric energy technologies;
(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and
(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.
Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.
The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.
(k) For the purposes of paragraph (j), the following terms have the meanings given:
(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and
(2) "grid modernization" means:
(i) enhancing the reliability of the electrical grid;
(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and
(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.
(l) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. The advisory group must design a
request for proposal and evaluate projects submitted in response to a request for proposals.
The advisory group must utilize an independent third-party expert to evaluate proposals
submitted in response to a request for proposal, including all proposals made by the public
utility. A request for proposal for research and development under paragraph (j), clause (1),
may be limited to or include a request to higher education institutions located in Minnesota
for multiple projects authorized under paragraph (j), clause (1). The request for multiple
projects may include a provision that exempts the projects from the third-party expert review
and instead provides for project evaluation and selection by a merit peer review grant system.
In the process of determining request for proposal scope and subject and in evaluating
responses to request for proposals, the advisory group must strongly consider, where
reasonable, potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
(m) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature. The commission may approve proposed expenditures,
may disapprove proposed expenditures that it finds not to be in compliance with this
subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
modify proposed expenditures. The commission shall, by order, submit its funding
recommendations to the legislature as provided under paragraph (n).
(n) The commission shall present its recommended appropriations from the account to
the senate and house of representatives committees with jurisdiction over energy policy and
finance annually by February 15. Expenditures from the account must be appropriated by
law. In enacting appropriations from the account, the legislature:
(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and
(2) may not appropriate money for a project the commission has not recommended
funding.
(o) A request for proposal for renewable energy generation projects must, when feasible
and reasonable, give preference to projects that are most cost-effective for a particular energy
source.
(p) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.
(q) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.
(r) A project receiving funds from the account must produce a written final report that
includes sufficient detail for technical readers and a clearly written summary for nontechnical
readers. The report must include an evaluation of the project's financial, environmental, and
other benefits to the state and the public utility's ratepayers.
(s) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.
(t) All final reports must acknowledge that the project was made possible in whole or
part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.
(u) Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.
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(v) Construction projects receiving funds from this account are subject to the requirement
to pay the prevailing wage rate, as defined in section 177.42 and the requirements and
enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
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This section is effective the day following final enactment and
applies to construction contracts entered into on or after that date.
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Minnesota Statutes 2022, section 116C.7792, is amended to read:
(a) The utility subject to section 116C.779 shall operate a program to provide solar
energy production incentives for solar energy systems of no more than a total aggregate
nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided that the aggregate capacity of all systems at the customer location does
not exceed 40 kilowatts.
(b) The program is funded by money withheld from transfer to the renewable development
account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must
be placed in a separate account for the purpose of the solar energy production incentive
program operated by the utility and not for any other program or purpose.
(c) Funds allocated to the solar energy production incentive program in 2019 and 2020
remain available to the solar energy production incentive program.
(d) The following amounts are allocated to the solar energy production incentive program:
(1) $10,000,000 in 2021;
(2) $10,000,000 in 2022;
(3) deleted text begin $5,000,000deleted text end new text begin $10,000,000new text end in 2023; and
(4) deleted text begin $5,000,000deleted text end new text begin $15,000,000new text end in 2024.
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(e) Of the amounts allocated under paragraph (d), clauses (3) and (4), half in each year
must be reserved for solar energy systems owned and constructed by persons with limited
financial resources.
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deleted text begin (e)deleted text end new text begin (f)new text end Funds allocated to the solar energy production incentive program that have not
been committed to a specific project at the end of a program year remain available to the
solar energy production incentive program.
deleted text begin (f)deleted text end new text begin (g)new text end Any unspent amount remaining on January 1, deleted text begin 2025deleted text end new text begin 2028new text end , must be transferred to
the renewable development account.
deleted text begin (g)deleted text end new text begin (h)new text end A solar energy system receiving a production incentive under this section must
be sized to less than 120 percent of the customer's on-site annual energy consumption when
combined with other distributed generation resources and subscriptions provided under
section 216B.1641 associated with the premise. The production incentive must be paid for
ten years commencing with the commissioning of the system.
deleted text begin (h)deleted text end new text begin (i)new text end The utility must file a plan to operate the program with the commissioner of
commerce. The utility may not operate the program until it is approved by the commissioner.
A change to the program to include projects up to a nameplate capacity of 40 kilowatts or
less does not require the utility to file a plan with the commissioner. Any plan approved by
the commissioner of commerce must not provide an increased incentive scale over prior
years unless the commissioner demonstrates that changes in the market for solar energy
facilities require an increase.
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This section is effective the day following final enactment.
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Agency" means the Minnesota Pollution Control Agency.
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(c) "Commissioner" means the commissioner of commerce.
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(d) "Area C" means the site located west of Mississippi River Boulevard in St. Paul that
served as an industrial waste dump for the former Ford Twin Cities Assembly Plant.
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(e) "Corrective action determination" means a decision by the agency regarding actions
to be taken to remediate contaminated soil and groundwater at Area C.
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(f) "Owner" means the owner of the solar energy generating system planned to be
deployed at Area C.
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(g) "Solar energy generating system" has the meaning given in section 216E.01,
subdivision 9a.
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(a) The Area C contingency account is established as a
separate account in the special revenue fund in the state treasury. Transfers and appropriations
to the account, and any earnings or dividends accruing to assets in the account, must be
credited to the account. The commissioner shall serve as fiscal agent and shall manage the
account.
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(b) Money in the account is appropriated to the commissioner to make payments to an
owner under this section.
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Money from the account may be distributed
by the commissioner to the owner of a solar energy generating system planned to be deployed
at Area C under the following conditions:
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(1) the agency issues a corrective action determination after the owner has begun to
design or construct the project, and the nature of the corrective action determination requires
(i) the project to be redesigned, or (ii) construction to be interrupted or altered; or
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(2) the agency issues a corrective action determination whose work plan requires
temporary cessation or partial or complete removal of the solar energy generating system
after it has become operational.
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(a) The owner may file a request for distribution
of funds from the commissioner if either of the conditions in subdivision 3 occur. The filing
must (1) describe the nature of the impact of the agency's work plan that results in economic
losses to the owner, and (2) include a reasonable estimate of the amount of those losses.
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(b) The owner must provide the commissioner with information the commissioner
determines to be necessary to assist in the review of the filing required under this subdivision.
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(c) The commissioner shall review the owner's filing within 60 days of submission and
shall approve a request the commissioner determines is reasonable.
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Money distributed by the commissioner to the owner under this
section may be used by the owner only to pay for:
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(1) removal, storage, and transportation costs incurred for removal of the solar energy
generating system or any associated infrastructure, and any costs to reinstall equipment;
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(2) costs of redesign or new equipment or infrastructure made necessary by the activities
of the agency's work plan;
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(3) lost revenues resulting from the inability of the solar energy generating system to
generate sufficient electricity to fulfill the terms of the power purchase agreement between
the owner and the purchaser of electricity generated by the solar energy generating system;
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(4) other damages incurred under the power purchase agreement resulting from the
cessation of operations made necessary by the activities of the agency's work plan; and
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(5) the cost of energy required to replace the energy that was to be generated by the solar
energy generating system and purchased under the power purchase agreement.
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This section is effective the day following final enactment.
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Sections 123B.661 to 123B.663 may be cited as the "Air Ventilation Program Act."
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For purposes of sections 123B.661 to 123B.663, the terms in
this section have the meanings given unless the language or context clearly indicates that
a different meaning is intended.
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"ANSI" means American National Standards Institute.
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"ASHRAE" means American Society of Heating Refrigeration Air
Conditioning Engineers.
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"Certified TAB technician" means a technician
certified to perform testing, adjusting, and balancing of HVAC systems by the Associated
Air Balance Council, National Environmental Balancing Bureau, or the Testing, Adjusting
and Balancing Bureau.
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"HVAC" means heating, ventilation, and air conditioning.
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"Licensed professional engineer" means a
professional engineer licensed under sections 326.02 to 326.15 who holds an active license,
is in good standing, and is not subject to any disciplinary or other actions with the Board
of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience and
Interior Design.
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"MERV" means minimum efficiency reporting value established by
ASHRAE Standard 52.2-2017 - Method of Testing General Ventilation Air-Cleaning Devices
for Removal Efficiency by Particle Size.
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"Program" means the air ventilation program.
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"Program administrator" means the commissioner
of commerce or the commissioner's representative.
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"Qualified adjusting personnel" means one
of the following:
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(1) a certified TAB technician; or
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(2) a skilled and trained workforce under the supervision of a certified TAB technician.
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"Qualified testing personnel" means one of the
following:
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(1) a certified TAB technician; or
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(2) a skilled and trained workforce under the supervision of a certified TAB technician.
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"Registered apprenticeship program"
means an apprenticeship program that is registered under chapter 178 or Code of Federal
Regulations, title 29, part 29.
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"Skilled and trained workforce" means a
workforce in which at least 80 percent of the construction workers are either graduates of
a registered apprenticeship program for the applicable occupation or are registered as
apprentices in a registered apprenticeship program for the applicable occupation.
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"TAB" means testing, adjusting, and balancing of an HVAC system.
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This section is effective the day following final enactment.
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The Department of Commerce shall establish and
administer the air ventilation program to award grants to school boards to reimburse the
school boards for the following activities:
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(1) completion of a heating, ventilation, and air conditioning assessment report;
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(2) subsequent testing, adjusting balancing work performed as a result of assessment;
and
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(3) ventilation equipment upgrades, replacements, or other measures recommended by
the assessment to improve health, safety, and HVAC system efficiency.
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(a) The program administrator shall award a grant if the school
board meets the following requirements:
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(1) completes a heating, ventilation, and air conditioning assessment report by qualified
testing personnel or qualified adjusting personnel. The report must be verified by a licensed
professional engineer and include costs of adjustments or repairs necessary to meet minimum
ventilation and filtration requirements and determine whether any cost-effective energy
efficiency upgrades or replacements are warranted or recommended;
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(2) all work required after conducting the assessment must be performed by a skilled
and trained workforce;
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(3) upon completion of the work for which a school board is seeking reimbursement,
the school board must conduct an HVAC verification report that includes the name and
address of the school facility and individual or contractor preparing and certifying the report
and a description of the assessment, maintenance, adjustment, repair, upgrade, and
replacement activities and outcomes; and
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(4) verification that the school board has complied with all requirements. Verification
must include documentation that either MERV 13 filters have been installed or verification
that the maximum MERV-rated filter that the system is able to effectively handle has been
installed; documentation of the MERV rating; the verified ventilation rates for occupied
areas of the school and whether those rates meet the requirements set forth in ANSI/ASHRAE
Standard 62.1-2019, with an accompanying explanation for any ventilation rates that do not
meet applicable requirements documenting why the current system is unable to meet
requirements; the verified exhaust for occupied areas and whether those rates meet the
requirements set forth in the system design intent; documentation of system deficiencies;
recommendations for additional maintenance, replacement, or upgrades to improve energy
efficiency, safety, or performance; documentation of initial operating verifications,
adjustments, and final operating verifications; documentation of any adjustments or repairs
performed; verification of installation of carbon dioxide monitors, including the make and
model of monitors; and verification that all work has been performed by qualified personnel,
including the contractor's name, certified TAB technician name and certification number,
and verification that all construction work has been performed by a skilled and trained
workforce.
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(b) Grants shall be prioritized to give direct support to schools and school children in
communities with high rates of poverty, as determined by receipt of federal Title I funding.
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(c) Grants shall be awarded to reimburse schools for 50 percent of costs incurred for
work performed under paragraph (a), clauses (1) to (3), with a maximum grant award of
$50,000.
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(d) The school board shall maintain a copy of the HVAC verification report and make
it available to students, parents, school personnel, and to any member of the public or the
program administrator upon request.
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(a) The program administrator shall:
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(1) adopt guidelines for the air ventilation program no later than March 1, 2024;
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(2) establish the timing of grant funding; and
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(3) ensure the air ventilation program is operating and may receive applications for
grants no later than November 1, 2023, and begin to approve applications no later than
January 1, 2024, subject to the availability of funds.
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(b) The technical and reporting requirements of the air ventilation program may be
amended by the program administrator as necessary to reflect current COVID-19 guidance
or other applicable guidance, to achieve the intent of the air ventilation program, and to
ensure consistency with other related requirements and codes.
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(c) The program administrator may use no more than five percent of the program funds
for administering the program, including providing technical support to program participants.
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Minnesota Statutes 2022, section 168.27, is amended by adding a subdivision to
read:
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(a) A new motor vehicle dealer licensed
under this chapter that operates under an agreement or franchise from a manufacturer and
sells electric vehicles must maintain at least one employee who is certified as having
completed a training course offered by a Minnesota motor vehicle dealership association
that addresses at least the following elements:
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(1) fundamentals of electric vehicles;
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(2) electric vehicle charging options and costs;
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(3) publicly available electric vehicle incentives;
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(4) projected maintenance and fueling costs for electric vehicles;
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(5) reduced tailpipe emissions, including greenhouse gas emissions, produced by electric
vehicles;
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(6) the impacts of Minnesota's cold climate on electric vehicle operation; and
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(7) best practices to sell electric vehicles.
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(b) For the purposes of this section, "electric vehicle" has the meaning given in section
169.011, subdivision 26a, paragraphs (a) and (b), clause (3).
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This section is effective January 1, 2024.
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
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(c) "Electric vehicle" means any device or contrivance that transports persons or property
and is capable of being powered by an electric motor drawing current from rechargeable
storage batteries, fuel cells, or other portable sources of electricity. Electric vehicle includes
but is not limited to:
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(1) an electric vehicle, as defined in section 169.011, subdivision 26a;
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(2) an electric-assisted bicycle, as defined in section 169.011, subdivision 27;
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(3) an off-road vehicle, as defined in section 84.797, subdivision 7;
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(4) a motorboat, as defined in section 86B.005, subdivision 9; or
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(5) an aircraft, as defined in section 360.013, subdivision 37.
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(d) "Electric vehicle charging station" means a physical location deploying equipment
that:
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(1) transfers electricity to an electric vehicle battery;
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(2) dispenses hydrogen into an electric vehicle powered by a fuel cell;
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(3) exchanges electric vehicle batteries; or
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(4) provides other equipment used to charge or fuel electric vehicles.
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(e) "Electric vehicle infrastructure" means electric vehicle charging stations and any
associated machinery, equipment, and infrastructure necessary for a public utility to supply
electricity or hydrogen to an electric vehicle charging station and to support electric vehicle
operation.
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(f) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
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(g) "Government entity" means the state, a state agency, or a political subdivision, as
defined in section 13.02, subdivision 11.
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(h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
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(a) By November 1, 2023, and
periodically as ordered by the commission, a public utility must file a transportation
electrification plan with the commission that is designed to:
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(1) maximize the overall benefits of electric vehicles and other electrified transportation
while minimizing overall costs; and
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(2) promote the:
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(i) purchase of electric vehicles by the public utility's customers; and
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(ii) deployment of electric vehicle infrastructure in the public utility's service territory.
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(b) A transportation electrification plan may include but is not limited to the following
elements:
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(1) programs to educate and increase the awareness and benefits of electric vehicles and
electric vehicle charging equipment among individuals, electric vehicle dealers, single-family
and multifamily housing developers and property management companies, building owners
and tenants, vehicle service stations, vehicle fleet owners and managers, and other potential
users of electric vehicles;
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(2) utility investments to support transportation electrification across all customer classes,
including but not limited to investments to facilitate:
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(i) the deployment of electric vehicles for personal and commercial use; customer-owned,
third-party-owned, and utility-owned electric vehicle charging stations; electric vehicle
infrastructure to support light-duty, medium-duty, and heavy-duty vehicle electrification;
and other electric utility infrastructure needed to support transportation electrification;
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(ii) widespread access to publicly available electric vehicle charging stations; and
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(iii) the electrification of public transit and vehicle fleets owned or operated by a
government entity;
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(3) research and demonstration projects to increase access to electricity as a transportation
fuel, minimize the system costs of electric transportation, and inform future transportation
electrification plans;
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(4) rate structures or programs that encourage electric vehicle charging that optimizes
electric grid operation, including time-varying rates and charging optimization programs;
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(5) programs to increase access to the benefits of electricity as a transportation fuel for
low- or moderate-income customers and communities and in neighborhoods most affected
by transportation-related air emissions;
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(6) proposals to expedite commission consideration of program adjustments requested
during the term of an approved transportation electrification plan; and
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(7) proposals to share information and results from transportation electrification projects
with stakeholders to promote effective electrification in all areas of the state.
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The
commission may approve, modify, or reject a transportation electrification plan. When
reviewing a transportation electrification plan, the commission must consider whether the
programs, investments, and expenditures as a whole are reasonable and in the public interest,
and are reasonably expected to:
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(1) improve the operation of the electric grid;
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(2) increase access to the use of electricity as a transportation fuel for all customers,
including those in low- or moderate-income communities, rural communities, and
communities most affected by emissions from the transportation sector;
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(3) increase access to publicly available electric vehicle charging and destination charging
for all types of electric vehicles;
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(4) support the electrification of medium-duty and heavy-duty vehicles and associated
charging infrastructure;
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(5) reduce statewide greenhouse gas emissions, as defined in section 216H.01, and
emissions of other air pollutants that impair the environment and public health;
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(6) stimulate nonutility investment and the creation of skilled jobs;
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(7) maximize the overall benefits of electric vehicles and other electrified transportation
investments while minimizing overall costs;
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(8) educate the public about the benefits of electric vehicles and related infrastructure;
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(9) be transparent and incorporate reasonable public reporting of program activities,
consistent with existing technology and data capabilities, to inform program design and
commission policy with respect to electric vehicles;
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(10) reasonably balance the benefits of ratepayer-funded investments in transportation
electrification against impacts on utility rates; and
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(11) appropriately balance the participation of public utilities and private enterprise in
the market for transportation electrification and related services.
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(a) Notwithstanding any other provision of this chapter, the
commission may approve, with respect to any prudent and reasonable investments made or
expenses incurred by a public utility to administer and implement a transportation
electrification plan approved under subdivision 3:
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(1) performance-based incentives or penalties;
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new text begin
(2) placing the capital investment in the public utility's rate base and allowing the public
utility to earn a rate of return on the investment at:
new text end
new text begin
(i) the public utility's average weighted cost of capital, including the rate of return on
equity, approved by the commission in the public utility's most recent general rate case; or
new text end
new text begin
(ii) another rate determined by the commission; or
new text end
new text begin
(3) any other recovery mechanism that the commission determines is fair, reasonable,
and supports the objectives of this section.
new text end
new text begin
(b) Notwithstanding section 216B.16, subdivision 8, paragraph (a), clause (3), the
commission must approve recovery costs for expenses reasonably incurred by a public
utility to provide public advertisement as part of a transportation electrification plan approved
by the commission under subdivision 3.
new text end
new text begin
This section is effective the day following final enactment.
new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
new text end
new text begin
(c) "Electric school bus" means a passenger motor vehicle:
new text end
new text begin
(1) primarily used to transport preprimary, primary, and secondary students;
new text end
new text begin
(2) designed to carry a driver and more than ten passengers; and
new text end
new text begin
(3) whose primary propulsion and accessory power technologies produce zero carbon
emissions in day-to-day operations.
new text end
new text begin
(d) "Electric utility" means a public utility or a consumer-owned utility, as defined in
section 216B.2402, subdivision 2.
new text end
new text begin
(e) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
new text end
new text begin
(f) "Electric vehicle charging station" means a physical location deploying equipment
that provides electricity to charge a battery in an electric vehicle.
new text end
new text begin
(g) "Electric vehicle infrastructure" means electric vehicle charging stations and any
associated electric panels, machinery, equipment, and infrastructure necessary for an electric
utility to supply electricity or hydrogen to an electric vehicle charging station and to support
electric vehicle operation.
new text end
new text begin
(h) "Electric vehicle service provider" means an organization that installs, maintains, or
otherwise services a battery exchange station, electric vehicle infrastructure, or electric
vehicle charging station.
new text end
new text begin
(i) "Poor air quality" means:
new text end
new text begin
(1) ambient air levels that air monitoring data reveals approach or exceed state or federal
air quality standards or chronic health inhalation risk benchmarks for total suspended
particulates, particulate matter less than ten microns wide (PM-10), particulate matter less
than 2.5 microns wide (PM-2.5), sulfur dioxide, or nitrogen dioxide; or
new text end
new text begin
(2) levels of asthma among children that significantly exceed the statewide average.
new text end
new text begin
(j) "Prioritized school district" means:
new text end
new text begin
(1) a school district listed in the Small Area Income and Poverty Estimates (SAIPE)
School District Estimates as having 7.5 percent or more students living in poverty based on
the most recent decennial United States census;
new text end
new text begin
(2) a school district identified with locale codes "43-Rural: Remote" and "42-Rural:
Distant" by the National Center for Education Statistics (NCES); or
new text end
new text begin
(3) a Bureau of Indian Affairs funded school district and a school district that receives
basic support payments under United States Code, title 20, section 7703(b)(1), for children
who reside on Indian land.
new text end
new text begin
(k) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end
new text begin
(l) "School" means a school that operates as part of an independent or special school
district.
new text end
new text begin
(m) "School bus" has the meaning given in section 169.011, subdivision 71.
new text end
new text begin
(n) "School district" means an independent or special school district.
new text end
new text begin
(o) "Transportation service provider" means a transportation service provider that provides
student transportation services and that has a contract to provide transportation services to
a school.
new text end
new text begin
An electric school bus deployment program is
established in the Department of Commerce. The purpose of the program is to provide grants
to accelerate the deployment of electric school buses by school districts and to encourage
schools to use vehicle electrification as a teaching tool that can be integrated into the school's
curriculum.
new text end
new text begin
An electric school bus program account is established
in the special revenue fund. The account consists of money received provided by law,
donated, allotted, transferred, or otherwise provided to the account. Earnings including
interest, dividends, and any other earnings arising from assets of the account must be credited
to the account. Except as otherwise provided in this subdivision, money deposited in the
account remains in the account until expended. Any money that remains in the account on
June 30, 2033, cancels to the general fund.
new text end
new text begin
(a) Money in the account is appropriated to the
commissioner and must 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,
including the cost of providing technical assistance to school districts, electric utilities,
electric vehicle service providers, or transportation service providers, including but not
limited to grant writing assistance for applications for federal vehicle electrification programs.
new text end
new text begin
(b) Grant awards made with funds in the account must be used only for:
new text end
new text begin
(1) grants for the deployment of electric school buses by school districts; and
new text end
new text begin
(2) reasonable costs related to technical assistance for electric school bus deployment
program planning and preparing applications for federal vehicle electrification programs.
new text end
new text begin
(a) An electric school bus deployment grant may be awarded
to a school district, electric utility, electric vehicle service provider, or transportation service
provider under this section only if the electric school bus deployment program that is the
subject of the grant includes but is not limited to the following elements:
new text end
new text begin
(1) a school district or transportation service provider may (i) purchase one or more
electric school buses, or (ii) convert or repower fossil-fuel-powered school buses to be
electric;
new text end
new text begin
(2) the grant may be used for up to 75 percent of the cost the school district or
transportation service provider incurs to (i) purchase one or more electric school buses, or
(ii) convert or repower fossil-fuel-powered school buses to be electric;
new text end
new text begin
(3) for prioritized school districts, the grant may be used for up to 95 percent of the cost
the school district or transportation service provider incurs to (i) purchase one or more
electric school buses, or (ii) convert or repower fossil-fuel-powered school buses to be
electric;
new text end
new text begin
(4) the grant may be used for up to 75 percent of the cost of deploying on the school
district or transportation service provider's real property infrastructure required to operate
electric school buses, including but not limited to battery exchange stations, electric vehicle
infrastructure, or electric vehicle charging stations;
new text end
new text begin
(5) for prioritized school districts, the grant may be used for up to 95 percent of the cost
of deploying on the school district or transportation service provider's real property
infrastructure required to operate electric school buses, including but not limited to battery
exchange stations, electric vehicle infrastructure, or electric vehicle charging stations;
new text end
new text begin
(6) at the request of a school district or transportation service provider, an electric utility
may deploy on the school district or transportation service provider's real property electric
vehicle infrastructure required to operate electric school buses; and
new text end
new text begin
(7) the school district prioritizes the deployment of electric school buses in areas of the
school district that serve disadvantaged students, disproportionately experience poor air
quality, or are environmental justice areas as defined in section 216B.1691, subdivision 1,
paragraph (e).
new text end
new text begin
(b) A technical assistance grant may be awarded to a school district, electric utility,
electric vehicle service provider, or transportation service provider under this section for
the reasonable costs related to electric school bus deployment program planning and for
preparing applications for federal vehicle electrification programs.
new text end
new text begin
(a) The commissioner must issue a request for proposals
to school districts, electric utilities, electric vehicle service providers, and transportation
service providers that may wish to apply for an electric bus deployment or technical assistance
grant under this section on behalf of a school.
new text end
new text begin
(b) A school district, electric utility, electric vehicle service provider, or transportation
service provider must submit an application for an electric school bus deployment grant to
the commissioner on behalf of a school district 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 number of and description of the electric school buses the school district or
transportation service provider intends to purchase;
new text end
new text begin
(2) the total cost to purchase the electric school buses and the incremental cost, if any,
of the electric school buses when compared with fossil-fuel-powered school buses;
new text end
new text begin
(3) a copy of the proposed contract agreement between the school district, the electric
utility, the electric vehicle service provider, or the transportation service provider that
includes provisions addressing responsibility for maintenance of the electric school buses
and the infrastructure required to operate electric school buses, including but not limited to
battery exchange stations, electric vehicle infrastructure, or electric vehicle charging stations;
new text end
new text begin
(4) whether the school district is also a prioritized school district;
new text end
new text begin
(5) the areas of the school district that (i) serve disadvantaged students; (ii)
disproportionately experience poor air quality, as measured by indicators such as the
Minnesota Pollution Control Agency's air quality monitoring network, the Minnesota
Department of Health's air quality and health monitoring, or any other indicators applicants
choose to include; or (iii) are environmental justice areas as defined in section 216B.1691,
subdivision 1, paragraph (e);
new text end
new text begin
(6) the school district's plan, if any, to make the electric school buses serve as a visible
learning tool for students, teachers, and visitors to the school, including how vehicle
electrification may be integrated into the school district'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 district's readiness to implement the project
and to operate the electric school buses for no less than five years;
new text end
new text begin
(9) with respect to the installation and operation of the infrastructure required to operate
electric school buses, the willingness and ability of the electric vehicle service provider or
the electric 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; and
new text end
new text begin
(10) any other information deemed relevant by the commissioner.
new text end
new text begin
(c) A school district, electric utility, electric vehicle service provider, or transportation
service provider must submit an application for a technical assistance grant to the
commissioner on behalf of a school district 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 name of the federal programs to which the applicants intend to apply;
new text end
new text begin
(2) a description of the technical assistance the applicants need in order to complete the
federal application; and
new text end
new text begin
(3) any other information deemed relevant by the commissioner.
new text end
new text begin
(d) The commissioner shall prioritize making grant awards to prioritized school districts.
On an annual basis, when prioritized school districts have applied for a grant, the
commissioner shall have as a goal awarding no less than 40 percent of the state's total grant
award amount to prioritized school districts.
new text end
new text begin
(e) The commissioner must administer an open application process under this section
at least twice annually.
new text end
new text begin
(f) The commissioner must develop administrative procedures governing the application
and grant award process.
new text end
new text begin
The commissioner must provide technical assistance to
school districts to develop and execute projects under this section.
new text end
new text begin
The commissioner must award a grant from the account
established under subdivision 3 to a school district, the electric utility, electric vehicle service
provider, or transportation service provider for necessary costs associated with deployment
of electric buses. The amount of the grant must be based on the commissioner's assessment
of the school district's need for financial assistance. For each award, the amount of the grant,
in combination with any federal vehicle electrification program awards to the school district,
the electric utility, the electric vehicle service provider, or the transportation service provider,
shall not exceed the cost of the applicant's proposed electric school buses, electric vehicle
charging stations, and electric vehicle infrastructure.
new text end
new text begin
No application may be submitted under this section
after December 31, 2032.
new text end
new text begin
Beginning January 15, 2024, and each year thereafter until January
15, 2034, the commissioner must report to the chairs and ranking minority members of the
legislative committees with jurisdiction over energy regarding: (1) grants and amounts
awarded to school districts under this section during the previous year; and (2) any remaining
balances available under this section.
new text end
new text begin
(a) Any prudent and reasonable investment made by any public
utility on electric vehicle infrastructure installed on a school district's real property may be
placed in the public utility's rate base and earn a rate of return, as determined by the
commission.
new text end
new text begin
(b) Notwithstanding any other provision of this chapter, the commission may approve
a tariff mechanism to automatically adjust annual charges for prudent and reasonable
investments made by a public utility on electric vehicle infrastructure installed on a school
district's real property.
new text end
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 216B.1641, is amended to read:
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) "Landlord" has the meaning given in section 504B.001, subdivision 7.
new text end
new text begin
(c) "Residential tenant" has the meaning given in section 504B.001, subdivision 12.
new text end
new text begin
(d) "Subscriber" means a retail customer who contracts for one or more subscriptions
for a community solar garden interconnected with the retail customer's utility.
new text end
new text begin
(e) "Subscription" means a contract between a subscriber and the owner of a community
solar garden.
new text end
(a) The public utility subject to section 116C.779 shall
file by September 30, 2013, a plan with the commission to operate a community solar garden
program which shall begin operations within 90 days after commission approval of the plan.
Other public utilities may file an application at their election. The community solar garden
program must be designed to offset the energy use of not less than five subscribers in each
community solar garden facility of which no single subscriber has more than a 40 percent
interest. The owner of the community solar garden may be a public utility or any other entity
or organization that contracts to sell the output from the community solar garden to the
utility under section 216B.164. There shall be no limitation on the number or cumulative
generating capacity of community solar garden facilities other than the limitations imposed
under section 216B.164, subdivision 4c, or other limitations provided in law or regulations.
(b) A solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must
have a nameplate capacity of no more than one megawatt. Each subscription shall be sized
to represent at least 200 watts of the community solar garden's generating capacity and to
supply, when combined with other distributed generation resources serving the premises,
no more than 120 percent of the average annual consumption of electricity by each subscriber
at the premises to which the subscription is attributed.
(c) The solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility deleted text begin located in
the same county or a county contiguous to where the facility is locateddeleted text end .
(d) The public utility must purchase from the community solar garden all energy generated
by the solar garden. The purchase shall be at the rate calculated under section 216B.164,
subdivision 10, or, until that rate for the public utility has been approved by the commission,
the applicable retail rate. A solar garden is eligible for any incentive programs offered under
section 116C.7792. A subscriber's portion of the purchase shall be provided by a credit on
the subscriber's bill.
deleted text begin (e)deleted text end new text begin (a)new text end The commission may approve,
disapprove, or modify a community solar garden deleted text begin programdeleted text end new text begin plannew text end . Any plan approved by the
commission must:
(1) reasonably allow for the creation, financing, and accessibility of community solar
gardens;
(2) establish uniform standards, fees, and processes for the interconnection of community
solar garden facilities that allow the utility to recover reasonable interconnection costs for
each community solar garden;
(3) not apply different requirements to utility and nonutility community solar garden
facilities;
(4) be consistent with the public interest;
(5) identify the information that must be provided to potential subscribers to ensure fair
disclosure of future costs and benefits of subscriptions;
(6) include a program implementation schedule;
(7) identify all proposed rules, fees, and charges; deleted text begin and
deleted text end
(8) identify the means by which the program will be promotednew text begin ;
new text end
new text begin
(9) require that participation by a subscriber must be strictly voluntary;
new text end
new text begin
(10) prohibit a landlord from removing a residential tenant who is an existing retail
customer of the public utility from the utility account and subscribing to a community solar
garden on behalf of the tenant;
new text end
new text begin
(11) ensure that contract terms are publicly available; and
new text end
new text begin (12) allow subscribers to stop subscribing without charging a fee or other penaltynew text end .
deleted text begin (f)deleted text end new text begin (b)new text end Notwithstanding any other law, neither the manager of nor the subscribers to a
community solar garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.
deleted text begin (g)deleted text end new text begin (c)new text end Within 180 days of commission approval of a plan under this section, a utility
shall begin crediting subscriber accounts for each community solar garden facility in its
service territory, and shall file with the commissioner of commerce a description of its
crediting system.
deleted text begin
(h) For the purposes of this section, the following terms have the meanings given:
deleted text end
deleted text begin
(1) "subscriber" means a retail customer of a utility who owns one or more subscriptions
of a community solar garden facility interconnected with that utility; and
deleted text end
deleted text begin
(2) "subscription" means a contract between a subscriber and the owner of a solar garden.
deleted text end
new text begin
(a) The public utility subject to section
116C.779 must file by September 30, 2023, a plan with the commission to operate a
low-income community solar garden program in accordance with this subdivision, and must
begin operations within 90 days after commission approval of the plan. The program operated
under this subdivision:
new text end
new text begin
(1) is subject to the other requirements of this section except as modified by this
subdivision;
new text end
new text begin
(2) is limited in size to ten megawatts of solar photovoltaic capacity annually;
new text end
new text begin
(3) must provide that renewable energy credits generated under the program are retained
by the public utility; and
new text end
new text begin
(4) must require the utility to purchase all energy generated by a low-income community
solar garden. A subscriber's portion of the purchase shall be provided by a credit on the
subscriber's bill at the average retail utility energy rate for the appropriate customer class.
new text end
new text begin
(b) The owner of a solar project must apply to the utility to be designated as a low-income
community solar garden before it is eligible to participate in the program. The utility must
not designate a project a low-income community solar garden unless it is majority owned
by a cooperative association, nonprofit organization, or federally recognized Indian Tribe.
The utility may designate a project as a low-income community solar garden if the owner
of the solar garden demonstrates it will meet the following conditions:
new text end
new text begin
(1) the solar generation facilities of the solar garden meet the requirements of subdivision
2, paragraph (b), except as modified by this paragraph;
new text end
new text begin
(2) at least 25 percent of the solar garden's generating capacity is subscribed by residential
customers whose household income:
new text end
new text begin
(i) is 80 percent or less of the area median household income for the geographic area in
which the low-income household is located, as calculated by the federal Department of
Housing and Urban Development; or
new text end
new text begin
(ii) meets the income eligibility standards, as determined by the commission, required
for a household to receive financial assistance from a federal, state, municipal, or utility
program administered or approved by the commission;
new text end
new text begin
(3) eligible nonresidential subscribers consist of only the following, located on census
tracts designated as low- or moderate-income by the federal Financial Institutions
Examination Council:
new text end
new text begin
(i) grocery stores;
new text end
new text begin
(ii) clinics;
new text end
new text begin
(iii) child care centers;
new text end
new text begin
(iv) food shelves;
new text end
new text begin
(v) libraries;
new text end
new text begin
(vi) Tribal Nations;
new text end
new text begin
(vii) shelters;
new text end
new text begin
(viii) schools that are not enrolled in any other solar incentive program; or
new text end
new text begin
(ix) houses of worship;
new text end
new text begin
(4) the owner does not run credit score or credit history checks on residential subscribers;
new text end
new text begin
(5) the solar garden has a nameplate capacity of no more than three megawatts alternating
current;
new text end
new text begin
(6) the solar garden has no fewer than three subscribers and no subscriber accounts for
more than 40 percent of the solar garden's capacity;
new text end
new text begin
(7) the solar garden is operated by an entity that maintains a physical address in Minnesota
and has designated a contact person in Minnesota who responds to subscriber inquiries; and
new text end
new text begin
(8) the agreement between the owner of the solar garden and subscribers states that the
owner must adequately publicize and convene at least one in-person meeting annually to
provide an opportunity for subscribers to pose questions to the manager or owner.
new text end
new text begin
The
public utility subject to section 116C.779 must not approve interconnection of new solar
gardens or renew existing solar gardens for inclusion in the community solar garden program
after August 1, 2023, unless the solar garden is accepted for inclusion in the low-income
community solar garden program under subdivision 4.
new text end
new text begin
The owner of a low-income
community solar garden must include the following information in an annual report to the
low-income community solar garden subscribers and the utility:
new text end
new text begin
(1) a description of the process by which subscribers may provide input regarding solar
garden policy and decision making;
new text end
new text begin
(2) the amount of revenues received by the solar garden in the previous year that were
allocated to categories that include but are not limited to operating costs, debt service, profits
distributed to subscribers, and profits distributed to others;
new text end
new text begin
(3) minutes from the most recent annual meeting; and
new text end
new text begin
(4) the proportion of low- and moderate-income subscribers, and a description of how
the information was collected from subscribers and verified.
new text end
new text begin
A solar garden that has begun commercial operation must
notify the commission in writing within 30 days if the solar garden is not in compliance
with subdivision 4, and must comply within 12 months or the commission must revoke the
solar garden's participation in the program. Nothing in this subdivision prevents an owner
from reapplying to participate in the program after revocation.
new text end
Minnesota Statutes 2022, section 216B.1691, is amended by adding a subdivision
to read:
new text begin
(a) In addition to the other requirements
of this section, for the public utility subject to section 116C.779, at least three percent of
the utility's total retail electric sales to customers in Minnesota by the end of 2030 must be
generated by solar photovoltaic devices:
new text end
new text begin
(1) with a nameplate capacity of ten megawatts or less connected to the utility's
distribution system;
new text end
new text begin
(2) that are located in the service territory of the public utility; and
new text end
new text begin
(3) that were constructed or procured after August 1, 2023.
new text end
new text begin
(b) Generation with a nameplate capacity of 100 kilowatts or more does not count toward
compliance with the standard established in this subdivision unless the public utility verifies
that construction trades workers who constructed the generation resource were all paid no
less than the prevailing wage rate, as defined in section 177.42.
new text end
new text begin
(c) The public utility subject to section 116C.779 may own no more than 30 percent of
the solar photovoltaic capacity used to satisfy the requirements of this subdivision.
new text end
new text begin
(d) Compensation for solar photovoltaic projects procured to satisfy the standard
established in this subdivision must be determined based on a competitive procurement
process and standard contracts approved by the commission.
new text end
new text begin
(e) After January 1, 2031, the commission may use the authority in subdivision 2b to
increase or decrease the standard obligation established in paragraph (a). Prior to that date,
the commission may modify or delay the implementation of that standard obligation, in
whole or in part, in accordance with subdivision 2b.
new text end
new text begin
(f) An integrated distribution plan filed by a utility subject to this subdivision must
describe investments in the distribution grid that facilitate the interconnection of sufficient
distribution-connected solar energy to fulfill the requirements of this subdivision.
new text end
Minnesota Statutes 2022, section 216B.17, subdivision 1, is amended to read:
On deleted text begin itsdeleted text end new text begin the commission'snew text end own motion or upon a complaint
made against any public utilitydeleted text begin ,deleted text end by the governing body of any political subdivision, by
another public utility, by the department, deleted text begin ordeleted text end by any 50 consumers of deleted text begin thedeleted text end new text begin anew text end particular utilitynew text begin ,
or by a complainant under section 216B.172new text end that any of the rates, tolls, tariffs, charges, or
schedules or any joint rate or any regulation, measurement, practice, act, or omission affecting
or relating to the production, transmission, delivery, or furnishing of natural gas or electricity
or any service in connection therewith is in any respect unreasonable, insufficient, or unjustly
discriminatory, or that any service is inadequate or cannot be obtained, the commission
shall proceed, with notice, to make such investigation as it may deem necessary. The
commission may dismiss any complaint without a hearing if in its opinion a hearing is not
in the public interest.
new text begin
This section is effective the day following final enactment and
applies to any complaint filed with the commission on or after that date.
new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Appeal" means a request a complainant files with the commission to review and
make a final decision regarding the resolution of the complainant's complaint by the consumer
affairs office.
new text end
new text begin
(c) "Complainant" means an individual residential customer who files with the consumer
affairs office a complaint against a public utility.
new text end
new text begin
(d) "Complaint" means an allegation submitted to the consumer affairs office by a
complainant that a public utility's action or practice regarding billing or terms and conditions
of service:
new text end
new text begin
(1) violates a statute, rule, tariff, service contract, or other provision of law;
new text end
new text begin
(2) is unreasonable; or
new text end
new text begin
(3) has harmed or, if not addressed, harms a complainant.
new text end
new text begin
Complaint does not include an objection to or a request to modify any natural gas or
electricity rate contained in a tariff that has been approved by the commission. A complaint
under this section is an informal complaint under Minnesota Rules, chapter 7829.
new text end
new text begin
(e) "Consumer affairs office" means the staff unit of the commission that is organized
to receive and respond to complaints.
new text end
new text begin
(f) "Informal proceeding" has the meaning given in Minnesota Rules, part 7829.0100,
subpart 8.
new text end
new text begin
(g) "Public assistance" has the meaning given in section 550.37, subdivision 14.
new text end
new text begin
(h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end
new text begin
A complainant must first attempt to resolve
a dispute with a public utility by filing a complaint with the consumer affairs office. The
consumer affairs office must: (1) notify the complainant of the resolution of the complaint;
and (2) provide written notice of (i) the complainant's right to appeal the resolution to the
commission, and (ii) the steps the complainant may take to appeal the resolution. Upon
request, the consumer affairs office must provide to the complainant a written notice
containing the substance of and basis for the resolution. Nothing in this section affects any
other rights existing under this chapter or other law.
new text end
new text begin
(a) If a complainant is not satisfied with
the resolution of a complaint by the consumer affairs office, the complainant may file an
appeal with the commission requesting that the commission make a final decision on the
complaint. The commission's response to an appeal filed under this subdivision must comply
with the notice requirements under section 216B.17, subdivisions 2 to 5.
new text end
new text begin
(b) Upon the commission's receipt of an appeal filed under paragraph (a), the chair of
the commission or a subcommittee delegated under section 216A.03, subdivision 8, to
review the resolution of the complaint must decide whether the complaint be:
new text end
new text begin
(1) dismissed because there is no reasonable basis on which to proceed;
new text end
new text begin
(2) resolved through an informal commission proceeding; or
new text end
new text begin
(3) referred to the Office of Administrative Hearings for a contested case proceeding
under chapter 14.
new text end
new text begin
A decision made under this paragraph must be provided in writing to the complainant and
the public utility.
new text end
new text begin
(c) If the commission decides that the complaint be resolved through an informal
proceeding before the commission or referred to the Office of Administrative Hearings for
a contested case proceeding, the executive secretary must issue any procedural schedules,
notices, or orders required to initiate an informal proceeding or a contested case.
new text end
new text begin
(d) The commission's dismissal of an appeal request or a decision rendered after
conducting an informal proceeding is a final decision constituting an order or determination
of the commission.
new text end
new text begin
Notwithstanding section 216B.27, a complainant may seek
judicial review in district court of an adverse final decision under subdivision 3, paragraph
(b), clause (1) or (2). Judicial review of the commission's decision in a contested case referred
under subdivision 3, paragraph (b), clause (3), is governed by chapter 14.
new text end
new text begin
A public utility must continue
or promptly restore service to a complainant during the pendency of an administrative or
judicial procedure pursued by a complainant under this section, provided that the
complainant:
new text end
new text begin
(1) agrees to enter into a payment agreement under section 216B.098, subdivision 3;
new text end
new text begin
(2) posts the full disputed payment in escrow;
new text end
new text begin
(3) demonstrates receipt of public assistance or eligibility for legal aid services; or
new text end
new text begin
(4) demonstrates the complainant's household income is at or below 50 percent of the
median income in Minnesota.
new text end
new text begin
The commission may adopt rules to carry out the
purposes of this section.
new text end
new text begin
This section is effective the day following final enactment and
applies to any complaint filed with the commission on or after that date.
new text end
Minnesota Statutes 2022, section 216B.2422, subdivision 2, is amended to read:
(a) A utility shall file a resource plan with
the commission periodically in accordance with rules adopted by the commission. The
commission shall approve, reject, or modify the plan of a public utility, as defined in section
216B.02, subdivision 4, consistent with the public interest.
(b) In the resource plan proceedings of all other utilities, the commission's order shall
be advisory and the order's findings and conclusions shall constitute prima facie evidence
which may be rebutted by substantial evidence in all other proceedings. With respect to
utilities other than those defined in section 216B.02, subdivision 4, the commission shall
consider the filing requirements and decisions in any comparable proceedings in another
jurisdiction.
(c) As a part of its resource plan filing, a utility shall include the least cost plan for
meeting 50 and 75 percent of all energy needs from both new and refurbished generating
facilities through a combination of conservation and renewable energy resources.
new text begin
(d) A public utility must include distributed energy resources among the options
considered in the public utility's resource plan filing.
new text end
Minnesota Statutes 2022, section 216B.62, subdivision 3b, is amended to read:
deleted text begin (a)deleted text end In addition
to other assessments in subdivision 3, the department may assess up to deleted text begin $500,000deleted text end new text begin $1,000,000new text end
per fiscal year to perform the duties under section 216A.07, subdivision 3a, and to conduct
analysis that assesses energy grid reliability at state, regional, and national levels. The
amount in this subdivision shall be assessed to energy utilities in proportion to their respective
gross operating revenues from retail sales of gas or electric service within the state during
the last calendar year and shall be deposited into an account in the special revenue fund and
is appropriated to the commissioner of commerce for the purposes of section 216A.07,
subdivision 3a. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative electric
associations, and municipal power agencies providing natural gas or electric service in the
state.
deleted text begin
(b) By February 1, 2023, the commissioner of commerce must submit a written report
to the chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy. The report must describe how the department has used
utility grid assessment funding under paragraph (a) and must explain the impact the grid
assessment funding has had on grid reliability in Minnesota.
deleted text end
deleted text begin
(c) This subdivision expires June 30, 2023.
deleted text end
new text begin
This section is effective the day following final enactment.
new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Participant" means a person who files comments or appears in a commission
proceeding concerning one or more public utilities, excluding public hearings held in
contested cases and commission proceedings conducted to receive general public comments.
new text end
new text begin
(c) "Party" means a person by or against whom a proceeding before the commission is
commenced or a person permitted to intervene in a proceeding, other than public hearings,
concerning one or more public utilities.
new text end
new text begin
(d) "Proceeding" means a process or procedural means the commission engages in under
this chapter to attempt to resolve an issue affecting one or more public utilities and that
results in a commission order.
new text end
new text begin
(e) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end
new text begin
Any of the following participants is eligible to receive
compensation under this section:
new text end
new text begin
(1) a nonprofit organization that:
new text end
new text begin
(i) is exempt from taxation under section 501(c)(3) of the Internal Revenue Code;
new text end
new text begin
(ii) is incorporated or organized in Minnesota;
new text end
new text begin
(iii) is governed under chapter 317A or section 322C.1101; and
new text end
new text begin
(iv) the commission determines under subdivision 3, paragraph (c), would suffer financial
hardship if not compensated for the nonprofit organization's participation in the applicable
proceeding;
new text end
new text begin
(2) a Tribal government of a federally recognized Indian Tribe that is located in
Minnesota; or
new text end
new text begin
(3) a Minnesota resident, except that an individual who owns a for-profit business that
has earned revenue from a Minnesota utility in the past two years is not eligible for
compensation.
new text end
new text begin
(a) The commission may order a public utility to
compensate all or part of a participant's reasonable costs incurred to participate in a
proceeding before the commission if the participant is eligible under subdivision 2 and the
commission finds:
new text end
new text begin
(1) that the participant has materially assisted the commission's deliberation; and
new text end
new text begin
(2) if the participant is a nonprofit organization, that the participant would suffer financial
hardship if the nonprofit organization's participation in the proceeding was not compensated.
new text end
new text begin
(b) In determining whether a participant has materially assisted the commission's
deliberation, the commission must find that:
new text end
new text begin
(1) the participant made a unique contribution to the record and represented an interest
that would not otherwise have been adequately represented;
new text end
new text begin
(2) the evidence or arguments presented or the positions taken by the participant were
an important factor in producing a fair decision;
new text end
new text begin
(3) the participant's position promoted a public purpose or policy;
new text end
new text begin
(4) the evidence presented, arguments made, issues raised, or positions taken by the
participant would not otherwise have been part of the record;
new text end
new text begin
(5) the participant was active in any stakeholder process included in the proceeding; and
new text end
new text begin
(6) the proceeding resulted in a commission order that adopted, in whole or in part, a
position advocated by the participant.
new text end
new text begin
(c) In determining whether a nonprofit participant has demonstrated that a lack of
compensation would present financial hardship, the commission must find that the nonprofit
participant:
new text end
new text begin
(1) incorporated or organized within three years of the beginning of the applicable
proceeding;
new text end
new text begin
(2) has payroll expenses less than $750,000; or
new text end
new text begin
(3) has secured less than $100,000 in current year funding dedicated to participation in
commission proceedings, not including any participant compensation awarded under this
section.
new text end
new text begin
(d) In reviewing a compensation request, the commission must consider whether the
costs presented in the participant's claim are reasonable. If the commission determines that
an eligible participant materially assisted the commission's deliberation, the commission
shall award all or part of the requested compensation, up to the maximum amounts provided
under subdivision 4.
new text end
new text begin
(a) Compensation must not exceed $50,000 for a
single participant in any proceeding, except that:
new text end
new text begin
(1) if a proceeding extends longer than 12 months, a participant may request and be
awarded compensation of up to $50,000 for costs incurred in each calendar year; and
new text end
new text begin
(2) in an integrated resource plan proceeding under section 216B.2422 or a proceeding
that has been referred to the Office of Administrative Hearings for a contested case
proceeding, a participant may request and be awarded up to $75,000.
new text end
new text begin
(b) No single participant may be awarded more than $200,000 under this section in a
single calendar year.
new text end
new text begin
(c) Compensation requests from joint participants must be presented as a single request.
new text end
new text begin
(d) Notwithstanding paragraphs (a) and (b), the commission must not, in any calendar
year, require a single public utility to pay aggregate compensation under this section that
exceeds the following amounts:
new text end
new text begin
(1) $100,000, for a public utility with up to $300,000,000 annual gross operating revenue
in Minnesota;
new text end
new text begin
(2) $275,000, for a public utility with at least $300,000,000 but less than $900,000,000
annual gross operating revenue in Minnesota;
new text end
new text begin
(3) $375,000, for a public utility with at least $900,000,000 but less than $2,000,000,000
annual gross operating revenue in Minnesota; and
new text end
new text begin
(4) $1,250,000, for a public utility with $2,000,000,000 or more annual gross operating
revenue in Minnesota.
new text end
new text begin
(e) When requests for compensation from any public utility approach the limits established
in paragraph (d), the commission may give priority to requests from participants that received
less than $150,000 in total compensation during the previous two years and from participants
who represent residential ratepayers, particularly those residential ratepayers who the
participant can demonstrate have been underrepresented in past commission proceedings.
new text end
new text begin
(a) A participant seeking compensation must file a
request and an affidavit of service with the commission, and serve a copy of the request on
each party to the proceeding. The request must be filed no more than 30 days after the later
of:
new text end
new text begin
(1) the expiration of the period within which a petition for rehearing, amendment,
vacation, reconsideration, or reargument must be filed; or
new text end
new text begin
(2) the date the commission issues an order following rehearing, amendment, vacation,
reconsideration, or reargument.
new text end
new text begin
(b) A compensation request must include:
new text end
new text begin
(1) the name and address of the participant or nonprofit organization the participant is
representing;
new text end
new text begin
(2) evidence of the organization's nonprofit, tax-exempt status, if applicable;
new text end
new text begin
(3) the name and docket number of the proceeding for which compensation is requested;
new text end
new text begin
(4) for a nonprofit participant, evidence supporting the nonprofit organization's eligibility
for compensation under the financial hardship test under subdivision 3, paragraph (c);
new text end
new text begin
(5) amounts of compensation awarded to the participant under this section during the
current year and any pending requests for compensation, itemized by docket;
new text end
new text begin
(6) an itemization of the participant's costs, not including overhead costs;
new text end
new text begin
(7) participant revenues dedicated for the proceeding;
new text end
new text begin
(8) the total compensation request; and
new text end
new text begin
(9) a narrative describing the unique contribution made to the proceeding by the
participant.
new text end
new text begin
(c) A participant must comply with reasonable requests for information by the commission
and other parties or participants. A participant must reply to information requests within
ten calendar days of the date the request is received, unless doing so would place an extreme
hardship upon the replying participant. The replying participant must provide a copy of the
information to any other participant or interested person upon request. Disputes regarding
information requests may be resolved by the commission.
new text end
new text begin
(d) A party objecting to a request for compensation must, within 30 days after service
of the request for compensation, file a response and an affidavit of service with the
commission. A copy of the response must be served on the requesting participant and all
other parties to the proceeding.
new text end
new text begin
(e) The requesting participant may file a reply with the commission within 15 days after
a response is filed under paragraph (d). A copy of the reply and an affidavit of service must
be served on all other parties to the proceeding.
new text end
new text begin
(f) If additional costs are incurred by a participant as a result of additional proceedings
following the commission's initial order, the participant may file an amended request within
30 days after the commission issues an amended order. Paragraphs (b) to (e) apply to an
amended request.
new text end
new text begin
(g) The commission must issue a decision on participant compensation within 120 days
of the date a request for compensation is filed by a participant.
new text end
new text begin
(h) The commission may extend the deadlines in paragraphs (d), (e), and (g) for up to
30 days upon the request of a participant or on the commission's own initiative.
new text end
new text begin
(i) A participant may request reconsideration of the commission's compensation decision
within 30 days of the decision date.
new text end
new text begin
(a) If the commission issues an order requiring payment
of participant compensation, the public utility that was the subject of the proceeding must
pay the full compensation to the participant and file proof of payment with the commission
within 30 days after the later of:
new text end
new text begin
(1) the expiration of the period within which a petition for reconsideration of the
commission's compensation decision must be filed; or
new text end
new text begin
(2) the date the commission issues an order following reconsideration of the commission's
order on participant compensation.
new text end
new text begin
(b) If the commission issues an order requiring payment of participant compensation in
a proceeding involving multiple public utilities, the commission must apportion costs among
the public utilities in proportion to each public utility's annual revenue.
new text end
new text begin
(c) The commission may issue orders necessary to allow a public utility to recover the
costs of participant compensation on a timely basis.
new text end
new text begin
By July 1, 2026, the commission must report to the chairs and ranking
minority members of the senate and house of representatives committees with primary
jurisdiction over energy policy on the operation of this section. The report must include but
is not limited to:
new text end
new text begin
(1) the amount of compensation paid each year by each utility;
new text end
new text begin
(2) each recipient of compensation, the commission dockets in which compensation was
awarded, and the compensation amounts; and
new text end
new text begin
(3) the impact of the participation of compensated participants.
new text end
new text begin
This section is effective the day following final enactment and
applies to any proceeding in which the commission has not issued a final order as of that
date.
new text end
Minnesota Statutes 2022, section 216C.02, subdivision 1, is amended to read:
(a) The commissioner may:
(1) apply for, receive, and spend money received from federal, municipal, county,
regional, and other government agencies and private sources;
(2) apply for, accept, and disburse grants and other aids from public and private sources;
(3) contract for professional services if work or services required or authorized to be
carried out by the commissioner cannot be satisfactorily performed by employees of the
department or by another state agency;
(4) enter into interstate compacts to carry out research and planning jointly with other
states or the federal government when appropriate;
(5) upon reasonable request, distribute informational material at no cost to the public;
and
(6) enter into contracts for the performance of the commissioner's duties with federal,
state, regional, metropolitan, local, and other agencies or units of government and educational
institutions, including the University of Minnesota, without regard to the competitive bidding
requirements of chapters 16A and 16C.
(b) The commissioner shall collect information on conservation and other energy-related
programs carried on by other agencies, by public utilities, by cooperative electric associations,
by municipal power agencies, by other fuel suppliers, by political subdivisions, and by
private organizations. Other agencies, cooperative electric associations, municipal power
agencies, and political subdivisions shall cooperate with the commissioner by providing
information requested by the commissioner. The commissioner may by rule require the
submission of information by other program operators. The commissioner shall make the
information available to other agencies and to the public and, as necessary, shall recommend
to the legislature changes in the laws governing conservation and other energy-related
programs to ensure that:
(1) expenditures on the programs are adequate to meet identified needs;
(2) the needs of low-income energy users are being adequately addressed;
(3) duplication of effort is avoided or eliminated;
(4) a program that is ineffective is improved or eliminated; and
(5) voluntary efforts are encouraged through incentives for their operators.
(c) By January 15 of each year, the commissioner shall report to the legislature on the
projected amount of federal money likely to be available to the state during the next fiscal
year, including grant money and money received by the state as a result of litigation or
settlements of alleged violations of federal petroleum-pricing regulations. The report must
also estimate the amount of money projected as needed during the next fiscal year to finance
a level of conservation and other energy-related programs adequate to meet projected needs,
particularly the needs of low-income persons and households, and must recommend the
amount of state appropriations needed to cover the difference between the projected
availability of federal money and the projected needs.
new text begin
(d) By January 15 of each year, the commissioner shall report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy finance the
following information for each account in the special revenue fund created in this chapter:
new text end
new text begin
(1) the unobligated balance in the account from the most recent forecast listed separately
by funding source;
new text end
new text begin
(2) all expenditures, including grants and administrative costs over the last two fiscal
years; and
new text end
new text begin
(3) the date on which unobligated balances expire.
new text end
Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:
new text begin
(a) For purposes of this section, the following terms have the
meanings given.
new text end
new text begin
(b) "Low-income conservation program" means a utility program that offers energy
conservation services to low-income households under sections 216B.2403, subdivision 5,
and 216B.241, subdivision 7.
new text end
new text begin
(c) "Preweatherization measure" has the meaning given in section 216B.2402, subdivision
20.
new text end
new text begin
(d) "Weatherization assistance program" means the federal program described in Code
of Federal Regulations, title 10, part 440, et seq., designed to assist low-income households
reduce energy use.
new text end
new text begin
(e) "Weatherization assistance services" means the energy measures installed in
households under the weatherization assistance program.
new text end
Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:
new text begin
A preweatherization program is established in the
department. The purpose of the program is to provide grants for preweatherization services,
as defined under section 216B.2402, subdivision 20, in order to expand the breadth and
depth of services provided to income-eligible households in Minnesota.
new text end
Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:
new text begin
(a) A preweatherization account is created as a
separate account in the special revenue fund of the state treasury. The account consists of
money provided by law, donated, allotted, transferred, or otherwise provided to the account.
Earnings, including interest, dividends, and any other earnings arising from assets of the
account, must be credited to the account. Money remaining in the account at the end of a
fiscal year does not cancel to the general fund and remains in the account until expended.
The commissioner must manage the account.
new text end
new text begin
(b) Money in the account is appropriated to the commissioner to pay for (1) grants issued
under the program, and (2) the reasonable costs incurred by the commissioner to administer
the program.
new text end
Minnesota Statutes 2022, section 216C.264, subdivision 5, is amended to read:
new text begin (a) new text end The commissioner must distribute supplementary state
grants in a manner consistent with the goal of producing the maximum number of weatherized
units. Supplementary state grants are provided primarily deleted text begin for the payment of additional labor
costs for the federal weatherization program, and as an incentive for the increased production
of weatherized units.deleted text end new text begin to pay for and may be used to:
new text end
new text begin
(1) address physical deficiencies in a residence that increase heat loss, including
deficiencies that prohibit the residence from being eligible to receive federal weatherization
assistance;
new text end
new text begin
(2) install eligible preweatherization measures established by the commissioner, as
required under section 216B.241, subdivision 7, paragraph (g);
new text end
new text begin
(3) increase the number of weatherized residences;
new text end
new text begin
(4) conduct outreach activities to make income-eligible households aware of available
weatherization services, to assist applicants in filling out applications for weatherization
assistance, and to provide translation services when necessary;
new text end
new text begin
(5) enable projects in multifamily buildings to proceed even if the project cannot comply
with the federal requirement that projects must be completed within the same federal fiscal
year in which the project is begun;
new text end
new text begin
(6) expand weatherization training opportunities in existing and new training programs;
new text end
new text begin
(7) pay additional labor costs for the federal weatherization program; and
new text end
new text begin
(8) provide an incentive for the increased production of weatherized units.
new text end
new text begin (b) new text end Criteria deleted text begin for the allocation ofdeleted text end new text begin used to allocatenew text end state grants to local agencies include
existing local agency production levels, emergency needs, and the potential deleted text begin for maintainingdeleted text end new text begin
to maintainnew text end or deleted text begin increasingdeleted text end new text begin increasenew text end acceptable levels of production in the area.
new text begin (c) new text end An eligible local agency may receive advance funding for 90 days' production, but
thereafter must receive grants solely on the basis ofnew text begin thenew text end program criterianew text begin under this
subdivisionnew text end .
Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:
new text begin
The commissioner must
provide grants to weatherization service providers to address physical deficiencies and
install weatherization and preweatherization measures in residential buildings occupied by
eligible low-income households.
new text end
Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:
new text begin
(a) The commissioner must establish a
weatherization training grant program to award grants through a competitive process to
educational institutions, certified training centers, labor organizations, and nonprofits to
assist with the costs associated with training and developing programs for careers in the
weatherization industry.
new text end
new text begin
(b) In order to receive grant funds, a written application must be submitted to the
commissioner on a form developed by the commissioner.
new text end
new text begin
(c) When awarding grants under this subdivision, the commissioner must prioritize
applications that:
new text end
new text begin
(1) provide the highest quality training to prepare for in-demand careers;
new text end
new text begin
(2) train workers to provide weatherization services that meet federal Building
Performance Institute certification requirements or Standard Work Specification
requirements, as required by the program; and
new text end
new text begin
(3) leverage nonstate funds or in-kind contributions.
new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Aggregated customer energy use data" means customer energy use data that is
combined into one collective data point per time interval. Aggregated customer energy use
data is data with any unique identifiers or other personal information removed that a
qualifying utility collects and aggregates in at least monthly intervals for an entire building
on a covered property.
new text end
new text begin
(c) "Benchmark" means to electronically input into a benchmarking tool the total energy
use data and other descriptive information about a building that is required by a benchmarking
tool.
new text end
new text begin
(d) "Benchmarking information" means data related to a building's energy use generated
by a benchmarking tool, and other information about the building's physical and operational
characteristics. Benchmarking information includes but is not limited to the building's:
new text end
new text begin
(1) address;
new text end
new text begin
(2) owner and, if applicable, the building manager responsible for operating the building's
physical systems;
new text end
new text begin
(3) total floor area, expressed in square feet;
new text end
new text begin
(4) energy use intensity;
new text end
new text begin
(5) greenhouse gas emissions; and
new text end
new text begin
(6) energy performance score comparing the building's energy use with that of similar
buildings.
new text end
new text begin
(e) "Benchmarking tool" means the United States Environmental Protection Agency's
Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.
new text end
new text begin
(f) "Covered property" means any property that is served by an investor-owned utility
in the metropolitan area, as defined in section 473.121, subdivision 2, or in any city outside
the metropolitan area with a population of over 50,000 residents served by a municipal
energy utility or investor-owned utility, and that has one or more buildings containing in
sum 50,000 gross square feet or greater. Covered property does not include:
new text end
new text begin
(1) a residential property containing fewer than five dwelling units;
new text end
new text begin
(2) a property that is: (i) classified as manufacturing under the North American Industrial
Classification System; (ii) an energy-intensive trade-exposed customer, as defined in section
216B.1696; (iii) an electric power generation facility; (iv) a mining facility; or (v) otherwise
an industrial building incompatible with benchmarking in the benchmarking tool;
new text end
new text begin
(3) an agricultural building; or
new text end
new text begin
(4) a multitenant building that is served by a utility that cannot supply aggregated
customer usage data, and other property types that do not meet the purposes of this section,
as determined by the commissioner.
new text end
new text begin
(g) "Customer energy use data" means data collected from the utility customer meters
that reflect the quantity, quality, or timing of customers' usage.
new text end
new text begin
(h) "Energy" means electricity, natural gas, steam, or another product used to: (1) provide
heating, cooling, lighting, or water heating; or (2) power other end uses in a building.
new text end
new text begin
(i) "Energy performance score" means a numerical value from one to 100 that the Energy
Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of
comparable buildings nationwide.
new text end
new text begin
(j) "Energy Star Portfolio Manager" means an interactive resource management tool
developed by the United States Environmental Protection Agency that (1) enables the
periodic entry of a building's energy use data and other descriptive information about a
building, and (2) rates a building's energy efficiency against that of comparable buildings
nationwide.
new text end
new text begin
(k) "Energy use intensity" means the total annual energy consumed in a building divided
by the building's total floor area.
new text end
new text begin
(l) "Financial distress" means a covered property that, at the time benchmarking is
conducted:
new text end
new text begin
(1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;
new text end
new text begin
(2) is controlled by a court-appointed receiver based on financial distress;
new text end
new text begin
(3) is owned by a financial institution through default by the borrower;
new text end
new text begin
(4) has been acquired by deed in lieu of foreclosure; or
new text end
new text begin
(5) has a senior mortgage that is subject to a notice of default.
new text end
new text begin
(m) "Local government" means a statutory or home rule municipality or county.
new text end
new text begin
(n) "Owner" means:
new text end
new text begin
(1) an individual or entity that possesses title to a covered property; or
new text end
new text begin
(2) an agent authorized to act on behalf of the covered property owner.
new text end
new text begin
(o) "Qualifying utility" means a utility serving the covered property, including:
new text end
new text begin
(1) an electric or gas utility, including:
new text end
new text begin
(i) an investor-owned electric or gas utility; or
new text end
new text begin
(ii) a municipally owned electric or gas utility;
new text end
new text begin
(2) a natural gas supplier with five or more active commercial connections, accounts,
or customers in the state; or
new text end
new text begin
(3) a district stream, hot water, or chilled water provider.
new text end
new text begin
(p) "Tenant" means a person that occupies or holds possession of a building or part of
a building or premises pursuant to a lease agreement.
new text end
new text begin
(q) "Total floor area" means the sum of gross square footage inside a building's envelope,
measured between the outside exterior walls of the building. Total floor area includes covered
parking structures.
new text end
new text begin
(r) "Utility customer" means the building owner or tenant listed on the utility's records
as the customer liable for payment of the utility service or additional charges assessed on
the utility account.
new text end
new text begin
The commissioner must establish and maintain a building
energy benchmarking program. The purpose of the program is to:
new text end
new text begin
(1) make a building's owners, tenants, and potential tenants aware of (i) the building's
energy consumption levels and patterns, and (ii) how the building's energy use compares
with that of similar buildings nationwide; and
new text end
new text begin
(2) enhance the likelihood that an owner adopts energy conservation measures in the
owner's building as a way to reduce energy use, operating costs, and greenhouse gas
emissions.
new text end
new text begin
For the purposes of this section, a covered
property is classified as follows:
new text end
new text begin
Class new text end |
new text begin
Total Floor Area (square feet) new text end |
new text begin
1 new text end |
new text begin
100,000 or more new text end |
new text begin
2 new text end |
new text begin
50,000 to 99,999 new text end |
new text begin
(a) An owner must annually benchmark all
covered property owned as of December 31 in conformity with the schedule in subdivision
7. Energy use data must be compiled by:
new text end
new text begin
(1) obtaining the data from the utility providing the energy; or
new text end
new text begin
(2) reading a master meter.
new text end
new text begin
(b) Before entering information in a benchmarking tool, an owner must run all automated
data quality assurance functions available within the benchmarking tool and must correct
all data identified as missing or incorrect.
new text end
new text begin
(c) An owner who becomes aware that any information entered into a benchmarking
tool is inaccurate or incomplete must amend the information in the benchmarking tool within
30 days of the date the owner learned of the inaccuracy.
new text end
new text begin
(d) Nothing in this subdivision prohibits an owner of property that is not a covered
property from voluntarily benchmarking a property under this section.
new text end
new text begin
(a) The commissioner may exempt an
owner of a covered property from the requirements of subdivision 4 if the owner provides
evidence satisfactory to the commissioner that the covered property:
new text end
new text begin
(1) is presently experiencing financial distress;
new text end
new text begin
(2) has been less than 50 percent occupied during the previous calendar year;
new text end
new text begin
(3) does not have a certificate of occupancy or temporary certificate of occupancy for
the full previous calendar year;
new text end
new text begin
(4) was issued a demolition permit during the previous calendar year that remains current;
or
new text end
new text begin
(5) received no energy services for at least 30 days during the previous calendar year.
new text end
new text begin
(b) An exemption granted under this subdivision applies only to a single calendar year.
An owner must reapply to the commissioner each year an extension is sought.
new text end
new text begin
(c) Within 30 days of the date an owner makes a request under this paragraph, a tenant
of a covered property subject to this section must provide the owner with any information
regarding energy use of the tenant's rental unit that the property owner cannot otherwise
obtain and that is needed by the owner to comply with this section. The tenant must provide
the information required under this paragraph in a format approved by the commissioner.
new text end
new text begin
An owner is
exempt from the requirements of subdivision 4 for a covered property if the property is
subject to a benchmarking requirement by the state, a city, or other political subdivision
with a benchmarking requirement that the commissioner determines is equivalent or more
stringent, as determined under subdivision 11, paragraph (b), than the benchmarking
requirement established in this section. The exemption under this subdivision applies in
perpetuity unless or until the benchmarking requirement is changed or revoked and the
commissioner determines the benchmarking requirement is no longer equivalent nor more
stringent.
new text end
new text begin
(a) An owner must annually benchmark each covered
property for the previous calendar year according to the following schedule:
new text end
new text begin
(1) all Class 1 properties by June 1, 2025, and by every June 1 thereafter; and
new text end
new text begin
(2) all Class 2 properties by June 1, 2026, and by every June 1 thereafter.
new text end
new text begin
(b) Beginning June 1, 2025, for Class 1 properties, and June 1, 2026, for Class 2
properties, an owner who is selling a covered property must provide the following to the
new owner at the time of sale:
new text end
new text begin
(1) benchmarking information for the most recent 12-month period, including monthly
energy use by source; or
new text end
new text begin
(2) ownership of the digital property record in the benchmarking tool through an online
transfer.
new text end
new text begin
(a) In implementing this section, a qualifying utility
shall implement the data aggregation standards established by the commission in docket
number 19-505, including changes to the standards adopted in an order issued after the
effective date of this section. A municipal energy utility serving a covered property under
this section shall adopt data aggregation standards that are substantially similar to the
standards included in the commission's order in that docket and subsequent relevant orders.
new text end
new text begin
(b) Customer energy use data that a qualifying utility provides an owner pursuant to this
subdivision must be:
new text end
new text begin
(1) available on, or able to be requested through, an easily navigable web portal or online
request form using up-to-date standards for digital authentication;
new text end
new text begin
(2) provided to the owner within 30 days after receiving the owner's valid written or
electronic request;
new text end
new text begin
(3) provided for at least 24 consecutive months of energy consumption or as many
months of consumption data that are available if the owner has owned the building for less
than 24 months;
new text end
new text begin
(4) directly uploaded to the owner's benchmarking tool account, delivered in the
spreadsheet template specified by the benchmarking tool, or delivered in another format
approved by the commissioner;
new text end
new text begin
(5) provided to the owner on at least an annual basis until the owner revokes the request
for energy use data or sells the covered property; and
new text end
new text begin
(6) provided in monthly intervals, or the shortest available intervals based in billing.
new text end
new text begin
(c) Data necessary to establish, utilize, or maintain information in the benchmarking
tool under this section may be collected or shared as provided by this section and are
considered public data whether or not the data have been aggregated.
new text end
new text begin
(a) The commissioner must:
new text end
new text begin
(1) collect benchmarking information generated by a benchmarking tool and other related
information for each covered property;
new text end
new text begin
(2) provide technical assistance to owners entering data into a benchmarking tool;
new text end
new text begin
(3) collaborate with the Department of Revenue to collect the data necessary for
establishing the covered property list annually; and
new text end
new text begin
(4) provide technical guidance to utilities in the establishment of data aggregation and
access tools.
new text end
new text begin
(b) Upon request of the commissioner, a county assessor shall provide readily available
property data necessary for the development of the covered property list, including but not
limited to gross floor area, property type, and owner information by January 15 annually.
new text end
new text begin
(c) The commissioner must:
new text end
new text begin
(1) rank benchmarked covered properties in each property class from highest to lowest
performance score or, if a performance score is unavailable for a covered property, from
lowest to highest energy use intensity;
new text end
new text begin
(2) divide covered properties in each property class into four quartiles based on the
applicable measure in clause (1);
new text end
new text begin
(3) assign four stars to each covered property in the quartile of each property class with
the highest performance scores or lowest energy use intensities, as applicable;
new text end
new text begin
(4) assign three stars to each covered property in the quartile of each property class with
the second highest performance scores or second lowest energy use intensities, as applicable;
new text end
new text begin
(5) assign two stars to each covered property in the quartile of each property class with
the third highest performance scores or third lowest energy use intensities, as applicable;
new text end
new text begin
(6) assign one star to each covered property in the quartile of each property class with
the lowest performance scores or highest energy use intensities, as applicable; and
new text end
new text begin
(7) serve notice in writing to each owner identifying the number of stars assigned by the
commissioner to each of the owner's covered properties.
new text end
new text begin
(a) The commissioner must post on the department's
website and update by December 1 annually the following information for the previous
calendar year:
new text end
new text begin
(1) annual summary statistics on energy use for all covered properties;
new text end
new text begin
(2) annual summary statistics on energy use for all covered properties, aggregated by
covered property class, as defined in subdivision 3, city, and county;
new text end
new text begin
(3) the percentage of covered properties in each building class listed in subdivision 3
that are in compliance with the benchmarking requirements under subdivisions 4 to 7; and
new text end
new text begin
(4) for each covered property, at a minimum, report the address, the total energy use,
energy use intensity, annual greenhouse gas emissions, and an energy performance score,
if available.
new text end
new text begin
(b) The commissioner must post the information required under this subdivision for:
new text end
new text begin
(1) all Class 1 properties by November 1, 2025, and by every November 1 thereafter;
and
new text end
new text begin
(2) all Class 2 properties by November 1, 2026, and by every November 1 thereafter.
new text end
new text begin
(a) The commissioner
shall coordinate with any state agency or local government that implements an energy
benchmarking program, including the coordination of reporting requirements.
new text end
new text begin
(b) This section does not restrict a local government from adopting or implementing an
ordinance or resolution that imposes more stringent benchmarking requirements. For purposes
of this section, a local government benchmarking program is more stringent if the program
requires:
new text end
new text begin
(1) buildings to be benchmarked that are not required to be benchmarked under this
section; or
new text end
new text begin
(2) benchmarking of information that is not required to be benchmarked under this
section.
new text end
new text begin
(c) Benchmarking program requirements of local governments must:
new text end
new text begin
(1) be at least as comprehensive in scope and application as the program operated under
this section; and
new text end
new text begin
(2) include annual enforcement of a penalty on covered properties that do not comply
with the local government's benchmarking ordinance.
new text end
new text begin
(d) Local governments must notify the commissioner of the local government's existing
benchmarking ordinance requirements. Local governments must notify the commissioner
of new, changed, or revoked ordinance requirements, which when made by December 31
would apply to the benchmarking schedule for the following year.
new text end
new text begin
(e) The commissioner shall make available for local governments upon request all
benchmarking data for covered properties within the local government's jurisdiction by
December 1, annually.
new text end
new text begin
The commissioner must
provide disclosure materials for public display within a building to building owners, so that
building owners can prominently display the performance of the building. The materials
must include the number of stars assigned to the building by the commissioner under
subdivision 9, paragraph (c), and a relevant explanation of the rating.
new text end
new text begin
By March 1 each year, the commissioner must notify the owner
of each covered property required to benchmark for the previous calendar year of the
requirement to benchmark by June 1 of the current year.
new text end
new text begin
The commissioner may contract with an
independent third party to implement any or all of the commissioner's duties required under
this section. To implement the benchmarking program, the commissioner shall assist building
owners to increase energy efficiency and reduce greenhouse gas emissions from the owners'
buildings, including by providing outreach, training, and technical assistance to building
owners to help the owners' buildings come into compliance with the benchmarking program.
new text end
new text begin
By June 15 each year, the commissioner must notify the owner
of each covered property required to comply with this section that has failed to comply that
the owner has until July 15 to come into compliance, unless the owner requests an extension,
in which case the owner has until August 15 to come into compliance. If an owner fails to
comply with the requirements of this section by July 15 and fails to request an extension
by that date, or is given an extension and fails to comply by August 15, the commissioner
may impose a civil fine of $1,000 on the owner. The commissioner may by rule increase
the civil fine to adjust for inflation.
new text end
new text begin
The commission shall allow a public utility to recover
reasonable and prudent expenses of implementing this section under section 216B.16,
subdivision 6b. The costs and benefits associated with implementing this section may, at
the discretion of the utility, be excluded from the calculation of net economic benefits for
purposes of calculating the financial incentive to the public utility under section 216B.16,
subdivision 6c. The energy and demand savings may, at the discretion of the public utility,
be applied toward the calculation of overall portfolio energy and demand savings for purposes
of determining progress toward annual goals under section 216B.241, subdivision 1c, and
in the financial incentive mechanism under section 216B.16, subdivision 6c.
new text end
new text begin
This section is effective the day following final enactment, except
that subdivision 15 is effective June 15, 2026.
new text end
Minnesota Statutes 2022, section 216C.375, subdivision 1, is amended to read:
(a) For the purposes of this section and section 216C.376,
the following terms have the meanings given them.
(b) "Developer" means an entity that installs a solar energy system on a school building
that has been awarded a grant under this section.
(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
(d) "School" means: (1) a school that operates as part of an independent or special school
district;new text begin (2) a Tribal contract school;new text end or deleted text begin (2)deleted text end new text begin (3)new text end a state college or university that is under the
jurisdiction of the Board of Trustees of the Minnesota State Colleges and Universities.
(e) "School district" meansnew text begin : (1)new text end an independent or special school districtnew text begin ; or (2) any other
public school district deemed appropriate by the commissioner, provided that at a minimum
the school owns the building and instruction for students occursnew text end .
(f) "Solar energy system" means photovoltaic or solar thermal devices.
(g) "Solar thermal" has the meaning given to "qualifying solar thermal project" in section
216B.2411, subdivision 2, paragraph (d).
(h) "State colleges and universities" has the meaning given in section 136F.01, subdivision
4.
Minnesota Statutes 2022, section 216C.375, subdivision 3, is amended to read:
new text begin (a) new text end 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.new text begin The account
consists of money provided by law, donated, allocated, transferred, or otherwise provided
to the account. Earnings, including interest, dividends, and any other earnings arising from
the assets of the account, must be credited to the account.
new text end
new text begin (b) Money in the account is appropriated to the commissioner for the purposes of the
program under this section. new text end Except as otherwise provided in this paragraph, money deposited
in the account remains in the account until expended. Any money that remains in the account
on June 30, deleted text begin 2027deleted text end new text begin 2034new text end , cancels to the general fund.
Minnesota Statutes 2022, section 216C.375, subdivision 10, is amended to read:
deleted text begin Nodeleted text end new text begin Annew text end application deleted text begin maydeleted text end new text begin must notnew text end be submitted under
this section after December 31, deleted text begin 2025deleted text end new text begin 2032new text end .
Minnesota Statutes 2022, section 216C.375, subdivision 11, is amended to read:
Beginning January 15, 2022, and each year thereafter until January
15, deleted text begin 2028deleted text end new text begin 2035new text end , the commissioner must report to the chairs and ranking minority members
of the legislative committees with jurisdiction over energy regarding: (1) grants and amounts
awarded to schools under this section during the previous year; (2) financial assistance,
including amounts per award, provided to schools under section 216C.376 during the
previous year; and (3) any remaining balances available under this section and section
216C.376.
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Capacity constrained location" means a location on an electric utility's distribution
system that the utility has reasonably determined requires significant distribution or network
upgrades before additional distributed energy resources can interconnect.
new text end
new text begin
(c) "DER Technical Planning Standard" means an engineering practice that limits the
total aggregate distributed energy resource capacity that may interconnect to a particular
location on the utility's distribution system.
new text end
new text begin
(d) "Distributed energy resources" means distributed generation, as defined in section
216B.164, and energy storage systems, as defined in section 216B.2422.
new text end
new text begin
(e) "Distribution upgrades" means the additions, modifications, and upgrades made to
an electric utility's distribution system to facilitate interconnection of distributed energy
resources.
new text end
new text begin
(f) "Interconnection" means the process governed by section 216B.1611.
new text end
new text begin
(g) "Net metered" has the meaning given in section 216B.164.
new text end
new text begin
(h) "Network upgrades" means additions, modifications, and upgrades to the transmission
system required at or beyond the point at which the distributed energy resource interconnects
with an electric utility's distribution system to accommodate the interconnection of the
distributed energy resource with the electric utility's distribution system. Network upgrades
do not include distribution upgrades.
new text end
new text begin
A distributed energy resources system upgrade
program is established in the department. The purpose of the program is to provide funding
to the utility subject to section 116C.779 to complete infrastructure investments necessary
to enable electricity customers to interconnect distributed energy resources. The program
must be designed to achieve the following goals to the maximum extent feasible:
new text end
new text begin
(1) make upgrades at capacity constrained locations on the utility's distribution system
that maximize the number and capacity of distributed energy resources projects with a
capacity of up to 40 kilowatts alternating current that can be interconnected sufficient to
serve projected demand;
new text end
new text begin
(2) enable all distributed energy resources projects with a nameplate capacity of up to
40 kilowatts alternating current to be reviewed and approved by the utility within 43 business
days;
new text end
new text begin
(3) minimize interconnection barriers for electricity customers seeking to construct net
metered facilities for on-site electricity use; and
new text end
new text begin
(4) advance innovative solutions that can minimize the cost of distribution and network
upgrades required for interconnection, including but not limited to energy storage, control
technologies, smart inverters, distributed energy resources management systems, and other
innovative technologies and programs.
new text end
new text begin
(a) By November 1, 2023, the utility subject to section 116C.779
must file with the commissioner a plan for the distributed energy resources system upgrade
program. The plan must contain, at a minimum:
new text end
new text begin
(1) a description of how the utility proposes to use money in the distributed energy
resources system upgrade program account to upgrade the utility's distribution system to
maximize the number and capacity of distributed energy resources that can be interconnected
sufficient to serve projected demand;
new text end
new text begin
(2) the locations where the utility proposes to make investments under the program;
new text end
new text begin
(3) the number and capacity of distributed energy resources projects the utility expects
to interconnect as a result of the program;
new text end
new text begin
(4) a plan for reporting on the program's outcomes; and
new text end
new text begin
(5) any additional information required by the commissioner.
new text end
new text begin
(b) The utility subject to section 116C.779 is prohibited from implementing the program
until the commissioner approves the plan submitted under this subdivision. No later than
March 31, 2024, the commissioner must approve a plan under this subdivision that the
commissioner determines is in the public interest. Any proposed modifications to the plan
approved under this subdivision must be approved by the commissioner.
new text end
new text begin
In developing the plan required by subdivision 3, the utility
must prioritize making investments:
new text end
new text begin
(1) at capacity constrained locations on the distribution grid;
new text end
new text begin
(2) in communities with demonstrated customer interest in distributed energy resources,
as measured by anticipated, pending, and completed interconnection applications; and
new text end
new text begin
(3) in communities with a climate action plan, clean energy goal, or policies that:
new text end
new text begin
(i) seek to mitigate the impacts of climate change on the city; or
new text end
new text begin
(ii) reduce the city's contributions to the causes of climate change.
new text end
new text begin
The commissioner may pay the following reasonable costs of
the utility subject to section 116C.779 under a plan approved in accordance with subdivision
3 from money available in the distributed energy resources system upgrade program account:
new text end
new text begin
(1) distribution upgrades and network upgrades;
new text end
new text begin
(2) energy storage; control technologies, including but not limited to a distributed energy
resources management system; or other innovative technology used to achieve the purposes
of this section;
new text end
new text begin
(3) pilot programs operated by the utility to implement innovative technology solutions;
and
new text end
new text begin
(4) costs incurred by the department to administer this section.
new text end
new text begin
The utility subject to section 116C.779 must reserve any
increase in the DER Technical Planning Standard made available by upgrades paid for under
this section for net metered facilities and distributed energy resources with a nameplate
capacity of up to 40 kilowatts alternating current. The commissioner may modify the
requirements of this subdivision when the commissioner finds doing so is in the public
interest.
new text end
new text begin
(a) A distributed energy resources system upgrade
program account is established in the special revenue fund. The account consists of money
provided by law, and any other money donated, allotted, transferred, or otherwise provided
to the account. Earnings, including interest, dividends, and any other earnings arising from
the assets of the account, must be credited to the account. Earnings remaining in the account
at the end of a fiscal year do not cancel to the general fund or renewable development
account but remain in the account until expended.
new text end
new text begin
(b) Money in the account is appropriated to the commissioner for eligible expenditures
under this section.
new text end
new text begin
The utility subject to section 116C.779 must
report to the commissioner within 60 days if any distributed energy resources project with
a capacity of up to 40 kilowatts alternating current is unable to interconnect due to safety,
reliability, or the cost of distribution or network upgrades required at a location for which
upgrade funding was provided under this program. The utility must make available to the
commissioner all engineering analyses, studies, and information related to any such instances.
The commissioner may modify or waive this requirement after December 31, 2025.
new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Cooperative electric association" means a cooperative association organized under
chapter 308A for the purpose of providing rural electrification at retail.
new text end
new text begin
(c) "Developer" means an entity that applies for a grant on behalf of a public building
under this section to install a solar energy generating system on the public building.
new text end
new text begin
(d) "Local unit of government" means:
new text end
new text begin
(1) a county, statutory or home rule charter city, town, municipal utility, or other local
government jurisdiction, excluding a school district eligible to receive financial assistance
under section 216C.375 or 216C.376; or
new text end
new text begin
(2) a federally recognized Indian Tribe in Minnesota.
new text end
new text begin
(e) "Municipal electric utility" means a utility that (1) provides electric service to retail
customers in Minnesota, and (2) is governed by a city council or a local utilities commission.
new text end
new text begin
(f) "Public building" means:
new text end
new text begin
(1) a building owned and operated by a local unit of government; or
new text end
new text begin
(2) a building owned by a federally recognized Indian Tribe in Minnesota whose primary
purpose is Tribal government operations.
new text end
new text begin
(g) "Solar energy generating system" has the meaning given in section 216E.01,
subdivision 9a.
new text end
new text begin
A solar on public buildings grant program is
established in the department. The purpose of the program is to provide grants to stimulate
the installation of solar energy generating systems on public buildings.
new text end
new text begin
A solar on public buildings grant program account
is established in the special revenue fund. Any money received from state resources for the
purposes of this section must be transferred to the commissioner of commerce and credited
to the account. Earnings, including interest, dividends, and any other earnings arising from
the assets of the account, must be credited to the account. Earnings remaining in the account
at the end of a fiscal year do not cancel to the general fund or renewable development
account but remain in the account until expended. The commissioner must manage the
account.
new text end
new text begin
Money in the account established under
subdivision 3 is appropriated to the commissioner for the purposes of this section and must
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 of the department to administer this section.
new text end
new text begin
(a) A grant may be awarded to a local unit of government
under this section only if the solar energy generating system that is the subject of the grant:
new text end
new text begin
(1) is installed (i) on or adjacent to a public building that consumes the electricity
generated by the solar energy generating system, and (ii) on property within the service
territory of the utility currently providing electric service to the public 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
average annual electricity consumption, measured over the most recent three calendar years,
of the public building at which the solar energy generating system is installed.
new text end
new text begin
(b) A public building that receives a rebate or other financial incentive under section
216B.241 for a solar energy generating system is eligible for a grant under this section for
the same solar energy generating system.
new text end
new text begin
(c) Before filing an application for a grant under this section, a local unit of government
or public building that is served by a municipal electric utility or cooperative electric
association must inform the municipal electric utility or cooperative electric association of
the local unit of government's or public building's intention to do so.
new text end
new text begin
(a) The commissioner must issue a request for proposals
to utilities, local units of government, and developers who may wish to apply for a grant
under this section on behalf of a public building.
new text end
new text begin
(b) A utility or developer must submit an application to the commissioner on behalf of
a public building 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 generating 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 public building on which the solar energy generating
system is to be installed, information regarding any distributed energy resource that currently
provides electricity to the public building, and the size of the public building's subscription
to a community solar garden, if applicable;
new text end
new text begin
(3) information sufficient to estimate the energy and monetary savings that are projected
to result from installation of the solar energy generating system over the system's useful
life;
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 local unit of government and
the utility or developer that includes provisions addressing responsibility for maintenance,
removal, and disposal of the solar energy generating system; and
new text end
new text begin
(6) if the applicant is other than the utility providing electric service to the public building
at which the solar energy generating system is to be installed, a written statement or
memorandum of understanding from that utility that the proposed financing arrangement
presents no foreseeable issues that would prevent interconnection of the solar energy
generating system.
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 under this section.
new text end
new text begin
At the commissioner's request, a local unit of
government awarded a grant under this section must provide the commissioner with
information regarding energy conservation measures implemented at the public building
where the solar energy generating system is to be installed. The commissioner may make
recommendations to the local unit of government regarding cost-effective conservation
measures the local unit of government can implement and may provide technical assistance
and direct the local unit of government to available financial assistance programs.
new text end
new text begin
The commissioner must provide technical assistance to
local units of government to develop and execute projects under this section.
new text end
new text begin
A grant awarded by the commissioner from the account
established under subdivision 3 to a local unit of government must include the necessary
and reasonable costs associated with the purchase and installation of a solar energy generating
system. In determining the amount of a grant award, the commissioner shall take into
consideration the financial capacity of the local unit of government awarded the grant.
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An application must not be submitted under this section
after December 31, 2032.
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A contractor or subcontractor performing construction
work on a project supported by a grant awarded under this section: (1) must pay employees
working on the project no less than the prevailing wage rate, as defined in section 177.42;
and (2) is subject to the requirements and enforcement provisions of sections 177.27, 177.30,
177.32, 177.41 to 177.435, and 177.45.
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Beginning January 15, 2024, and each year thereafter until January
15, 2027, the commissioner must report to the chairs and ranking minority members of the
legislative committees with primary jurisdiction over energy finance and policy regarding
grants and amounts awarded to local units of government under this section during the
previous year and any remaining balances available in the account established under this
section.
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This section is effective the day following final enactment.
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(a) The electric utility subject to section 116C.779 must develop and operate a program
to provide a lump-sum grant to customers to reduce the cost of purchasing and installing
an on-site energy storage system, as defined in section 216B.2422, subdivision 1, paragraph
(f). No later than October 1, 2023, the utility subject to this section must file a plan with the
commissioner to operate the program. The utility must not operate the program until the
program is approved by the commissioner. Any change to an operating program must be
approved by the commissioner.
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(b) In order to be eligible to receive a grant under this section, an energy storage system
must:
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(1) have a capacity no greater than 50 kilowatt hours; and
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(2) be located within the electric service area of the utility subject to this section.
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(c) An owner of an energy storage system is eligible to receive a grant under this section
if:
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(1) a solar energy generating system is operating at the same site as the proposed energy
storage system; or
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(2) the owner has filed an application with the utility subject to this section to interconnect
a solar energy generating system at the same site as the proposed energy storage system.
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(d) The commissioner must annually review and may adjust the amount of grants awarded
under this section, but must not increase the amount over that awarded in previous years
unless the commissioner demonstrates in writing that an upward adjustment is warranted
by market conditions.
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(e) A customer who receives a grant under this section is eligible to receive financial
assistance under programs operated by the state or the utility for the solar energy generating
system operating in conjunction with the energy storage system.
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(f) For the purposes of this section, "solar energy generating system" has the meaning
given in section 216E.01, subdivision 9a.
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This section is effective the day following final enactment.
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(a) For purposes of this section and section 216C.402, the
terms in this subdivision have the meanings given.
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(b) "Dealer" means a person, firm, or corporation that:
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(1) possesses a new motor vehicle license under chapter 168;
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(2) regularly engages in the business of manufacturing or selling, purchasing, and
generally dealing in new and unused motor vehicles;
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(3) has an established place of business to sell, trade, and display new and unused motor
vehicles; and
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(4) possesses new and unused motor vehicles to sell or trade the motor vehicles.
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(c) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraphs (a) and (b), clause (3).
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(d) "Eligible new electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (a).
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(e) "Eligible used electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (b).
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(f) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership transferred, other than the right to use the vehicle for a term of at least 24
months.
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(g) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
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(h) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
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(a) A new electric vehicle is eligible for a rebate under this
section if the electric vehicle:
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(1) has a base manufacturer's suggested retail price that does not exceed $60,000;
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(2) has not been previously owned;
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(3) has not been modified from the original manufacturer's specifications;
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(4) is purchased or leased from a dealer or directly from an original equipment
manufacturer that does not have licensed franchised dealers in Minnesota; and
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(5) is purchased or leased after the effective date of this section for use by the purchaser
and not for resale.
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(b) A used electric vehicle is eligible for an electric vehicle rebate under this section if
the electric vehicle had a base manufacturer's suggested retail price that did not exceed
$60,000 when purchased, has previously been owned in Minnesota or another state, and
has not been modified from the original manufacturer's specifications.
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(c) For purposes of paragraph (a), a vehicle has not been previously owned if it:
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(1) is used by a dealer as a floor model or test drive vehicle and has not been previously
registered in Minnesota or any other state prior to purchase or lease; or
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(2) is returned to a dealer by a purchaser or lessee:
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(i) within two weeks of purchase or leasing or when a purchaser's or lessee's financing
for the electric vehicle has been disapproved; or
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(ii) before the purchaser or lessee takes delivery, even if the electric vehicle is registered
in Minnesota.
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A person who purchases or leases an eligible
new or used electric vehicle is eligible for a rebate under this section if the purchaser or
lessee:
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(1) is one of the following:
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(i) a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a),
when the electric vehicle is purchased or leased;
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(ii) a business that has a valid address in Minnesota from which business is conducted;
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(iii) a nonprofit corporation incorporated under chapter 317A; or
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(iv) a political subdivision of the state;
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(2) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from the state of Minnesota; and
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(3) registers the electric vehicle in Minnesota.
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(a) A $2,500 rebate may be issued under this section to an
eligible purchaser to purchase or lease an eligible new electric vehicle.
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(b) A $500 rebate may be issued under this section to an eligible purchaser or lessee of
an eligible used electric vehicle.
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(c) A purchaser or lessee whose household income at the time the eligible electric vehicle
is purchased or leased is less than 150 percent of the current federal poverty guidelines
established by the Department of Health and Human Services is eligible for a rebate of $500
to purchase or lease an eligible new electric vehicle and $100 to purchase or lease an eligible
used electric vehicle. The rebate under this paragraph is in addition to the rebate under
paragraph (a) or (b), as applicable.
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The number of rebates allowed under this section is limited to:
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(1) no more than one rebate per resident; and
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(2) no more than one rebate per business entity per year.
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(a) A rebate application under this section must be
filed with the commissioner on a form developed by the commissioner.
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(b) The commissioner must develop administrative procedures governing the application
and rebate award process. Applications must be reviewed and rebates awarded by the
commissioner on a first-come, first-served basis.
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(c) The commissioner must, in coordination with dealers and other state agencies as
applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or
lessee at the point of sale so that the rebate amount may be subtracted from the selling price
of the eligible electric vehicle.
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(d) The commissioner may reduce the rebate amounts provided under subdivision 4 or
restrict program eligibility based on the availability of money to award rebates or other
factors.
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This section expires June 30, 2027.
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This section is effective the day following final enactment.
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A grant program is established in the department to
award grants to dealers to offset the costs of obtaining the necessary training and equipment
that is required by electric vehicle manufacturers in order to certify a dealer to sell electric
vehicles produced by the manufacturer.
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An application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
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An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
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Appropriations made to support the activities of this
section must be used only to reimburse:
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(1) a dealer for the reasonable costs to obtain training and certification for the dealer's
employees from the electric vehicle manufacturer that awarded the franchise to the dealer;
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(2) a dealer for the reasonable costs to purchase and install equipment to service and
repair electric vehicles, as required by the electric vehicle manufacturer that awarded the
franchise to the dealer; and
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(3) the department for the reasonable costs to administer this section.
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A grant awarded under this section to a single dealer must not
exceed $40,000.
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This section is effective the day following final enactment.
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(a) There is created a public body corporate
and politic to be known as the "Minnesota Climate Innovation Finance Authority," whose
purpose is to accelerate the deployment of clean energy projects, greenhouse gas emissions
reduction projects, and other qualified projects through the strategic deployment of public
funds in the form of grants, loans, credit enhancements, and other financing mechanisms
in order to leverage existing public and private sources of capital to reduce the upfront and
total cost of qualified projects and to overcome financial barriers to project adoption,
especially in low-income communities.
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(b) The goals of the authority include but are not limited to:
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(1) reducing Minnesota's contributions to climate change by accelerating the deployment
of clean energy projects;
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(2) ensuring that all Minnesotans share the benefits of clean and renewable energy and
the opportunity to fully participate in the clean energy economy by promoting:
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(i) the creation of clean energy jobs for Minnesota workers, particularly in environmental
justice communities and communities in which fossil fuel electric generating plants are
retiring; and
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(ii) the principles of environmental justice in the authority's operations and funding
decisions; and
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(3) maintaining energy reliability while reducing the economic burden of energy costs,
especially on low-income households.
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(a) For the purposes of this section, the following terms have the
meanings given.
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(b) "Authority" means the Minnesota Climate Innovation Finance Authority.
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(c) "Board" means the Minnesota Climate Innovation Finance Authority's board of
directors established in subdivision 10.
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(d) "Clean energy project" has the meaning given to "qualified project" in paragraph
(m), clauses (1) to (7).
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(e) "Community navigator" means an organization that works to facilitate access to clean
energy project financing by community groups.
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(f) "Credit enhancement" means a pool of capital set aside to cover potential losses on
loans and other investments made by financing entities. Credit enhancement includes but
is not limited to loan loss reserves and loan guarantees.
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(g) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f).
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(h) "Environmental justice" means that:
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(1) communities of color, Indigenous communities, and low-income communities have
a healthy environment and are treated fairly when environmental statutes, rules, and policies
are developed, adopted, implemented, and enforced; and
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(2) in all decisions that have the potential to affect the environment of an environmental
justice community or the public health of an environmental justice community's residents,
due consideration is given to the history of the area's and the area's residents' cumulative
exposure to pollutants and to any current socioeconomic conditions that increase the physical
sensitivity of the area's residents to additional exposure to pollutants.
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(i) "Environmental justice community" means a community in Minnesota that, based
on the most recent data published by the United States Census Bureau, meets one or more
of the following criteria:
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(1) 40 percent or more of the community's total population is nonwhite;
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(2) 35 percent or more of households in the community have an income that is at or
below 200 percent of the federal poverty level;
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(3) 40 percent or more of the community's residents over the age of five have limited
English proficiency; or
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(4) the community is located within Indian country, as defined in United States Code,
title 18, section 1151.
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(j) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by
anthropogenic sources.
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(k) "Loan loss reserve" means a pool of capital set aside to reimburse a private lender
if a customer defaults on a loan, up to an agreed-upon percentage of loans originated by the
private lender.
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(l) "Microgrid system" means an electrical grid that:
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(1) serves a discrete geographical area from distributed energy resources; and
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(2) can operate independently from the central electric grid on a temporary basis.
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(m) "Project labor agreement" means a prehire collective bargaining agreement with a
council of building and construction trades labor organizations (1) prohibiting strikes,
lockouts, and similar disruptions, and (2) providing for a binding procedure to resolve labor
disputes on the project.
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(n) "Qualified project" means a project, technology, product, service, or measure
promoting energy efficiency, clean energy, electrification, or water conservation and quality
that:
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(1) substantially reduces greenhouse gas emissions;
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(2) reduces energy use without diminishing the level of service;
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(3) increases the deployment of renewable energy projects, energy storage systems,
district heating, smart grid technologies, or microgrid systems;
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(4) replaces existing fossil-fuel-based technology with an end-use electric technology;
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(5) supports the development and deployment of electric vehicle charging stations and
associated infrastructure, electric buses, and electric fleet vehicles;
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(6) reduces water use or protects, restores, or preserves the quality of surface waters; or
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(7) incentivizes customers to shift demand in response to changes in the price of electricity
or when system reliability is not jeopardized.
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(o) "Renewable energy" has the meaning given in section 216B.1691, subdivision 1,
paragraph (c), clauses (1), (2), and (4), and includes fuel cells generated from renewable
energy.
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(p) "Securitization" means the conversion of an asset composed of individual loans into
marketable securities.
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(q) "Smart grid" means a digital technology that:
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(1) allows for two-way communication between a utility and the utility's customers; and
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(2) enables the utility to control power flow and load in real time.
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(a) For the purpose of exercising the specific powers granted
in this section, the authority has the general powers granted in this subdivision.
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(b) The authority may:
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(1) hire an executive director and staff to conduct the authority's operations;
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(2) sue and be sued;
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(3) have a seal and alter the seal;
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(4) acquire, hold, lease, manage, and dispose of real or personal property for the
authority's corporate purposes;
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(5) enter into agreements, including cooperative financing agreements, contracts, or
other transactions, with any federal or state agency, county, local unit of government,
regional development commission, person, domestic or foreign partnership, corporation,
association, or organization;
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(6) acquire by purchase real property, or an interest therein, in the authority's own name
where acquisition is necessary or appropriate;
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(7) provide general technical and consultative services related to the authority's purpose;
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(8) promote research and development in matters related to the authority's purpose;
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(9) analyze greenhouse gas emissions reduction project financing needs in the state and
recommend measures to alleviate any shortage of financing capacity;
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(10) contract with any governmental or private agency or organization, legal counsel,
financial advisor, investment banker, or others to assist in the exercise of the authority's
powers;
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(11) enter into agreements with qualified lenders or others insuring or guaranteeing to
the state the payment of qualified loans or other financing instruments; and
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(12) accept on behalf of the state any gift, grant, or interest in money or personal property
tendered to the state for any purpose pertaining to the authority's activities.
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(a) The authority must:
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(1) serve as a financial resource to reduce the upfront and total costs of implementing
qualified projects;
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(2) ensure that all financed projects reduce greenhouse gas emissions;
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(3) ensure that financing terms and conditions offered are well-suited to qualified projects;
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(4) strategically prioritize the use of the authority's funds to leverage private investment
in qualified projects, with the aim of achieving a high ratio of private to public money
invested through funding mechanisms that support, enhance, and complement private lending
and investment;
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(5) coordinate with existing federal, state, local, utility, and other programs to ensure
that the authority's resources are being used most effectively to add to and complement
those programs;
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(6) stimulate demand for qualified projects by:
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(i) contracting with the department's Energy Information Center and community
navigators to provide information to project participants about federal, state, local, utility,
and other authority financial assistance for qualifying projects, and technical information
on energy conservation and renewable energy measures;
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(ii) forming partnerships with contractors and informing contractors about the authority's
financing programs;
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(iii) developing innovative marketing strategies to stimulate project owner interest,
especially in underserved communities; and
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(iv) incentivizing financing entities to increase activity in underserved markets;
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(7) finance projects in all regions of the state;
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(8) develop participant eligibility standards and other terms and conditions for financial
support provided by the authority;
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(9) develop and administer:
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(i) policies to collect reasonable fees for authority services; and
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(ii) risk management activities to support ongoing authority activities;
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(10) develop consumer protection standards governing the authority's investments to
ensure that financial support is provided responsibly and transparently, and is in the financial
interest of participating project owners;
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(11) develop methods to accurately measure the impact of the authority's activities,
particularly on low-income communities and on greenhouse gas emissions reductions;
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(12) hire an executive director and sufficient staff with the appropriate skills and
qualifications to carry out the authority's programs, making an affirmative effort to recruit
and hire a director and staff who are from, or share the interests of, the communities the
authority must serve;
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(13) apply for, either as a direct or subgrantee applicant, and accept Greenhouse Gas
Reduction Fund grants authorized by the federal Clean Air Act, United States Code, title
42, section 7434(a). If the application deadlines for these grants are earlier than is practical
for the authority to meet, the commissioner shall apply on behalf of the authority. In all
cases, applications for these funds by or on behalf of the authority must be coordinated with
all known Minnesota applicants; and
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(14) ensure that authority contracts with all third-party administrators, contractors, and
subcontractors contain required covenants, representations, and warranties specifying that
contracted third parties are agents of the authority, and that all acts of contracted third parties
are considered acts of the authority, provided that the act is within the contracted scope of
work.
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(b) The authority may:
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(1) employ credit enhancement mechanisms that reduce financial risk for financing
entities by providing assurance that a limited portion of a loan or other financial instrument
is assumed by the authority via a loan loss reserve, loan guarantee, or other mechanism;
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(2) co-invest in a qualified project by providing senior or subordinated debt, equity, or
other mechanisms in conjunction with other investment, co-lending, or financing;
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(3) aggregate small and geographically dispersed qualified projects in order to diversify
risk or secure additional private investment through securitization or similar resale of the
authority's interest in a completed qualified project;
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(4) expend up to 25 percent of money appropriated to the authority for start-up purposes,
which may be used for financing programs and project investments authorized under this
section prior to adoption of the strategic plan required under subdivision 7 and the investment
strategy under subdivision 8; and
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(5) require a specific project to agree to implement a project labor agreement as a
condition of receiving financing from the authority.
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(a) Before developing a financing program,
the authority must conduct an analysis of the financial market the authority is considering
entering in order to determine the extent to which the market is underserved and to ensure
that the authority's activities supplement, and do not duplicate or supplant, the efforts of
financing entities currently serving the market. The analysis must address the nature and
extent of any barriers or gaps that may be preventing financing entities from adequately
serving the market, and must examine present and projected future efforts of existing
financing entities, federal, state, and local governments, and of utilities and others to serve
the market.
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(b) In determining whether the authority should enter a market, the authority must
consider:
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(1) whether serving the market advances the authority's policy goals;
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(2) the extent to which the market is currently underserved;
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(3) the unique tools the authority would deploy to overcome existing market barriers or
gaps;
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(4) how the authority would market the program to potential participants; and
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(5) potential financing partners and the role financing partners would play in
complementing the authority's activities.
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(c) Before providing any direct loans to residential borrowers, the authority must issue
a request for information to existing known financing entities, specifying the market need
and the authority's goals in meeting the underserved market segment, and soliciting each
financing entity's:
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(1) current financing offerings for that specific market;
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(2) prior efforts to meet that specific market; and
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(3) plans and capabilities to serve that specific market.
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(d) The authority may only provide direct loans to residential borrowers if the authority
certifies that no financing entity is currently able to meet the specific underserved market
need and the authority's goals, and that the authority's entry into the market does not supplant
or duplicate any existing financing activities in that specific market.
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(a)
In determining the projects in which the authority will participate, the authority must give
preference to projects that:
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new text begin
(1) maximize the creation of high-quality employment and apprenticeship opportunities
for local workers, consistent with the public interest, especially workers from environmental
justice communities, labor organizations, and Minnesota communities hosting retired or
retiring electric generation facilities, including workers previously employed at retiring
facilities;
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(2) utilize energy technologies produced domestically that received an advanced
manufacturing tax credit under section 45X of the Internal Revenue Code, as allowed under
the federal Inflation Reduction Act of 2022, Public Law 117-169;
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(3) certify, for all contractors and subcontractors, that the rights of workers to organize
and unionize are recognized; and
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(4) agree to implement a project labor agreement.
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(b) The authority must require, for all projects for which the authority provides financing,
that:
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(1) if the budget is $100,000 or more, all contractors and subcontractors:
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(i) must pay no less than the prevailing wage rate, as defined in section 177.42,
subdivision 6; and
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(ii) are subject to the requirements and enforcement provisions under sections 177.27,
177.30, 177.32, 177.41 to 177.43, and 177.45, including the posting of prevailing wage
rates, prevailing hours of labor, and hourly basic rates of pay for all trades on the project in
at least one conspicuous location at the project site;
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(2) financing is not offered without first ensuring that the participants meet the authority's
underwriting criteria; and
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(3) any loan made to a homeowner for a project on the homeowner's residence complies
with section 47.59 and the following federal laws:
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(i) the Truth in Lending Act, United States Code, title 15, section 1601 et seq.;
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(ii) the Fair Credit Reporting Act, United States Code, title 15, section 1681;
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(iii) the Equal Credit Opportunity Act, United States Code, title 15, section 1691 et seq.;
and
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(iv) the Fair Debt Collection Practices Act, United States Code, title 15, section 1692.
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(c) The authority and any third-party administrator, contractor, subcontractor, or agent
that conducts lending, financing, investment, marketing, administration, servicing, or
installation of measures in connection with a qualified project financed in whole or in part
with authority funds is subject to sections 325D.43 to 325D.48; 325F.67 to 325F.71; 325G.06
to 325G.14; 325G.29 to 325G.37; and 332.37.
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(d) For the purposes of this section, "local workers" means Minnesota residents who
permanently reside within 150 miles of the location of a proposed project in which the
authority is considering to participate.
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(a) By December 15, 2024, and each December 15 in
even-numbered years thereafter, the authority must develop and adopt a strategic plan that
prioritizes the authority's activities over the next two years. A strategic plan must:
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(1) identify targeted underserved markets for qualified projects in Minnesota;
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(2) develop specific programs to overcome market impediments through access to
authority financing and technical assistance; and
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(3) develop outreach and marketing strategies designed to make potential project
developers, participants, and communities aware of financing and technical assistance
available from the authority, including the deployment of community navigators.
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(b) Elements of the strategic plan must be informed by the authority's analysis of the
market for qualified projects and by the authority's experience under the previous strategic
plan, including the degree to which performance targets were or were not achieved by each
financing program. In addition, the authority must actively seek input regarding activities
that should be included in the strategic plan from stakeholders, environmental justice
communities, the general public, and participants, including via meetings required under
subdivision 9.
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(c) The authority must establish annual targets in a strategic plan for each financing
program regarding the number of projects, level of authority investments, greenhouse gas
emissions reductions, and installed generating capacity or energy savings the authority
hopes to achieve, including separate targets for authority activities undertaken in
environmental justice communities.
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(d) The authority's targets and strategies must be designed to ensure that no less than 40
percent of the direct benefits of authority activities flow to environmental justice communities
as defined under subdivision 2, by the United States Department of Energy, or as modified
by the department.
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(a) No later than December 15, 2024,
and every four years thereafter, the authority must adopt a long-term investment strategy
to ensure the authority's paramount goal to reduce greenhouse gas emissions is reflected in
all of the authority's operations. The investment strategy must address:
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(1) the types of qualified projects the authority should focus on;
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(2) gaps in current qualified project financing that present the greatest opportunities for
successful action by the authority;
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(3) how the authority can best position itself to maximize its impact without displacing,
subsidizing, or assuming risk that should be shared with financing entities;
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(4) financing tools that will be most effective in achieving the authority's goals;
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(5) partnerships the authority should establish with other organizations to increase the
likelihood of success; and
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(6) how values of equity, environmental justice, and geographic balance can be integrated
into all investment operations of the authority.
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(b) In developing an investment strategy, the authority must consult, at a minimum, with
similar organizations in other states, lending authorities, state agencies, utilities,
environmental and energy policy nonprofits, labor organizations, and other organizations
that can provide valuable advice on the authority's activities.
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(c) The long-term investment strategy must contain provisions ensuring that:
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(1) authority investments are not made solely to reduce private risk; and
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(2) private financing entities do not unilaterally control the terms of investments to which
the authority is a party.
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(d) The board must submit a draft long-term investment strategy for comment to each
of the groups and individuals the board consults under paragraph (b) and to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over energy finance and policy, and must post the draft strategy on the
authority's website. The authority must accept written comments on the draft strategy for
at least 30 days and must consider the comments in preparing the final long-term investment
strategy.
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The authority must:
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(1) maintain a public website that provides information about the authority's operations,
current financing programs, and practices, including rates, terms, and conditions; the number
and amount of investments by project type; the number of jobs created; the financing
application process; and other information;
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(2) periodically issue an electronic newsletter to stakeholders and the public containing
information on the authority's products, programs, and services and key authority events
and decisions; and
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(3) hold quarterly meetings accessible online to update the general public on the
authority's activities, report progress being made in regard to the authority's strategic plan
and long-term investment strategy, and invite audience questions regarding authority
programs.
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(a) The Minnesota Climate Innovation Finance Authority
Board of Directors shall consist of the following 11 members:
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(1) the commissioner of commerce, or the commissioner's designee;
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(2) the commissioner of labor and industry, or the commissioner's designee;
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(3) the commissioner of the Minnesota Pollution Control Agency, or the commissioner's
designee;
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(4) the commissioner of employment and economic development, or the commissioner's
designee;
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(5) the chair of the Minnesota Indian Affairs Council, or the chair's designee; and
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(6) six additional members appointed by the governor, as follows:
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(i) one member, appointed after the governor consults with labor organizations in the
state, must be a representative of a labor union with experience working on clean energy
projects;
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(ii) one member with expertise in the impact of climate change on Minnesota
communities, particularly low-income communities;
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(iii) one member with expertise in financing projects at a community bank, credit union,
community development institution, or local government;
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(iv) one member with expertise in sustainable development and energy conservation;
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(v) one member with expertise in environmental justice; and
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(vi) one member with expertise in investment fund management or financing and
deploying clean energy technologies.
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(b) At least two members appointed to the board must permanently reside outside the
metropolitan area, as defined in section 473.121, subdivision 2. The board must collectively
reflect the geographic and ethnic diversity of the state.
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(c) Board members appointed under paragraph (a), clause (6), shall serve a term of four
years.
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(d) Members appointed to the board must:
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(1) provide evidence of a commitment to the authority's purposes and goals; and
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(2) not hold any personal or professional conflicts of interest related to the authority's
activities, including with respect to the member's financial investments and employment or
the financial investments and employment of the member's immediate family members.
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(e) The authority shall contract with the department to provide administrative and
technical services to the board and to prospective borrowers, especially those serving or
located in environmental justice communities.
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(f) Compensation of board members, removal of members, and filling of vacancies are
governed by section 15.0575.
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(g) Board members may be reappointed for up to two full terms.
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(h) A majority of board members, excluding vacancies, constitutes a quorum for the
purpose of conducting business and exercising powers, and for all other purposes. Action
may be taken by the authority upon a vote of a majority of the quorum present.
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(i) Board members and officers are not personally liable, either jointly or severally, for
any debt or obligation created or incurred by the authority.
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Beginning February 1, 2024, the authority must annually
submit a comprehensive report on the authority's activities during the previous year to the
governor and the chairs and ranking minority members of the legislative committees with
primary jurisdiction over energy policy. The report must contain, at a minimum, information
on:
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(1) the amount of authority capital invested, by project type;
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(2) the amount of private and public capital leveraged by authority investments, by
project type;
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(3) the number of qualified projects supported, by project type and location within
Minnesota, including in environmental justice communities;
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(4) the estimated number of jobs created for local workers and nonlocal workers, the
ratio of projects subject to and exempt from prevailing wage requirements under subdivision
6, paragraph (b), and tax revenue generated as a result of the authority's activities;
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(5) estimated reductions in greenhouse gas emissions resulting from the authority's
activities;
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(6) the number of clean energy projects financed in low- and moderate-income
households;
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(7) a narrative describing the progress made toward the authority's equity, social, and
labor standards goals; and
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(8) a financial audit conducted by an independent party.
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This section is effective the day following final enactment.
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Eligible applicant" means a person who provides evidence to the commissioner's
satisfaction demonstrating that the person has received or has applied for a heat pump rebate
available from the federal Department of Energy under the Inflation Reduction Act of 2022,
Public Law 117-189.
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(c) "Heat pump" means a cold climate rated air-source heat pump composed of (1) a
mechanism that heats and cools indoor air by transferring heat from outdoor or indoor air
using a fan, (2) a refrigerant-filled heat exchanger, and (3) an inverter-driven compressor
that varies the pressure of the refrigerant to warm or cool the refrigerant vapor.
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A residential heat pump rebate program is established in the
department to provide financial assistance to eligible applicants that purchase and install a
heat pump in the applicant's Minnesota residence.
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(a) An application for a rebate under this section must be made
to the commissioner on a form developed by the commissioner. The application must be
accompanied by documentation, as required by the commissioner, demonstrating that:
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(1) the applicant is an eligible applicant;
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(2) the applicant owns the Minnesota residence in which the heat pump is to be installed;
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(3) the applicant has had an energy audit conducted of the residence in which the heat
pump is to be installed within the last 18 months by a person with a Building Analyst
Technician certification issued by the Building Performance Institute, Inc., or an equivalent
certification, as determined by the commissioner;
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(4) either:
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(i) the applicant has installed in the applicant's residence, by a contractor with an Air
Leakage Control Installer certification issued by the Building Performance Institute, Inc.,
or an equivalent certification, as determined by the commissioner, the amount of insulation
and the air sealing measures recommended by the auditor; or
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(ii) the auditor has otherwise determined that the amount of insulation and air sealing
measures in the residence are sufficient to enable effective heat pump performance;
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(5) the applicant has purchased a heat pump of the capacity recommended by the auditor
or contractor, and has had the heat pump installed by a contractor with sufficient training
and experience in installing heat pumps, as determined by the commissioner; and
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(6) the total cost to purchase and install the heat pump in the applicant's residence.
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(b) The commissioner must develop administrative procedures governing the application
and rebate award processes.
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A rebate awarded under this section must not exceed the lesser
of:
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(1) $4,000; or
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(2) the total cost to purchase and install the heat pump in an eligible applicant's residence
net of the rebate amount received for the heat pump from the federal Department of Energy
under the Inflation Reduction Act of 2022, Public Law 117-189.
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The commissioner must issue a request for proposals
seeking an entity to serve as an energy coordinator to interact directly with applicants and
potential applicants to:
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(1) explain the technical aspects of heat pumps, energy audits, and energy conservation
measures, and the energy and financial savings that can result from implementing each;
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(2) identify federal, state, and utility programs available to homeowners to reduce the
costs of energy audits, energy conservation, and heat pumps;
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(3) explain the requirements and scheduling of the application process;
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(4) provide access to certified contractors who can perform energy audits, install
insulation and air sealing measures, and install heat pumps; and
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(5) conduct outreach to make potential applicants aware of the program.
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The commissioner must issue a request for
proposals seeking an entity to develop and organize programs to train contractors with
respect to the technical aspects and installation of heat pumps in residences. The training
curriculum must be at a level sufficient to provide contractors who complete training with
the knowledge and skills necessary to install heat pumps to industry best practice standards,
as determined by the commissioner. Training programs must: (1) be accessible in all regions
of the state; and (2) provide mentoring and ongoing support, including continuing education
and financial assistance, to trainees.
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This section is effective the day following final enactment.
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(a) For the purposes of this section, the following terms have
the meanings given.
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(b) "Area median income" means the median income of the geographic area in which a
single-family or multifamily building whose owner is applying for a grant under this section
is located, as reported by the United States Department of Housing and Urban Development.
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(c) "Electric panel" means a building's electric panel or group of panels, including any
subpanels, consisting of buses and automatic overcurrent devices and equipment with or
without switches for the control of light, heat, or power circuits placed in an enclosure,
cabinet, or cutout box. Electric panel includes a smart panel.
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(d) "Electrical work" has the meaning given in section 326B.31, subdivision 17.
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(e) "Eligible applicant" means:
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(1) an owner of a single-family building whose occupants have an annual household
income no greater than 150 percent of the area median income; or
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(2) an owner of a multifamily building in which at least 50 percent of the units are
occupied by households whose annual income is no greater than 150 percent of the area
median income.
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(f) "Multifamily building" means a building containing two or more units.
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(g) "Smart panel" means an electrical panel that may be electronically programmed to
manage electricity use in a building automatically.
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(h) "Unit" means a residential living space in a multifamily building occupied by an
individual or a household.
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(i) "Upgrade" means:
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(1) for a single-family residence, the installation of equipment, devices, and wiring
necessary to increase an electrical panel's capacity to a total rating of not less than 200
amperes, or to a total rating that allows all the building's energy needs to be provided solely
by electricity, as calculated using the most recent National Electrical Code as adopted in
Minnesota;
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(2) for a single-family residence, the installation of a smart panel; or
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(3) for a multifamily building, the installation of equipment, devices, and wiring necessary
to increase the capacity of an electric panel, including feeder panels, to a total rating that
allows all the building's energy needs to be provided solely by electricity, as calculated
using the National Electrical Code as adopted in Minnesota.
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A residential electric panel upgrade grant program
is established in the Department of Commerce to provide financial assistance to owners of
single-family residences and multifamily buildings to upgrade residential electric panels.
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An applicant seeking a grant under this section must
submit an application to the commissioner on a form developed by the commissioner. The
commissioner must develop administrative procedures to govern the application and grant
award process. The commissioner may contract with a third party to conduct some or all of
the program's operations.
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A grant may be awarded under this section to:
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(1) an eligible applicant; or
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(2) with the written permission of an eligible applicant submitted to the commissioner,
a contractor performing an upgrade or a third party on behalf of the eligible applicant.
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(a) Subject to the limits of paragraphs (b) to (d), a grant awarded
under this section may be used to pay 100 percent of the equipment and installation costs
of an upgrade.
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(b) The commissioner may not award a grant to an eligible applicant under this section
which, in combination with a federal grant awarded to the eligible applicant under the federal
Inflation Reduction Act of 2022, Public Law 117-189, for the same electric panel upgrade,
exceeds 100 percent of the equipment and installation costs of the upgrade.
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(c) The maximum grant amount under this section that may be awarded to an eligible
applicant who owns a single-family residence is:
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(1) $3,000 for an owner whose annual household income is less than 80 percent of area
median income; and
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(2) $2,000 for an owner whose annual household income exceeds 80 percent but is not
greater than 150 percent of area median income.
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(d) The maximum grant amount that may be awarded under this section to an eligible
applicant who owns a multifamily building is the sum of $5,000, plus $500 multiplied by
the number of units containing a separate electric panel receiving an upgrade in the
multifamily building, not to exceed $50,000 per multifamily building.
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(e) The commissioner may approve grants over the maximum amounts in paragraphs
(c) and (d) up to 100 percent of the equipment and installation costs of the upgrade if
necessary to complete the upgrade.
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No more than one grant may be awarded to an owner under this
section for work conducted at the same single-family residence or multifamily building.
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The department must publicize the availability of grants under this
section to, at a minimum:
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(1) income-eligible households;
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(2) community action agencies and other public and private nonprofit organizations that
provide weatherization and other energy services to income-eligible households; and
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(3) multifamily property owners and property managers.
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Contractors and subcontractors
performing electrical work under a grant awarded under this section:
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(1) must comply with the provisions of sections 326B.31 to 326B.399;
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(2) must certify that the electrical work is performed by a licensed journeyworker
electrician or a registered unlicensed individual under the direct supervision of a licensed
journeyworker electrician or master electrician employed by the same licensed electrical
contractor; and
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(3) must pay workers the prevailing wage rate, as defined in section 177.42, and are
subject to the requirements and enforcement provisions in sections 177.27, 177.30, 177.32,
177.41 to 177.435, and 177.45.
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Beginning January 1, 2025, and each January 1 through 2033, the
department must submit a report to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over climate and energy policy describing the activities
and expenditures under the program established in the section. The report must include, at
a minimum:
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(1) the number of units in multifamily buildings and the number of single-family
residences whose owners received grants;
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(2) the geographic distribution of grant recipients; and
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(3) the average amount of grants awarded per building in multifamily buildings and in
single-family residences.
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This section is effective the day following final enactment.
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Within 180 days of the effective date of this section, the Public Utilities Commission
must issue an order addressing the requirements of Minnesota Statutes, section 216B.1641,
as amended by this act.
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This section is effective the day following final enactment.
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(a) The commissioner of commerce must conduct a
study evaluating the potential costs, benefits, and impacts of advanced nuclear technology
reactor power generation in Minnesota.
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(b) At a minimum, the study must address the potential costs, benefits, and impacts of
advanced nuclear technology reactor power generation on:
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(1) Minnesota's greenhouse gas emissions reduction goals under the Next Generation
Energy Act, Laws 2007, chapter 136;
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(2) system costs for ratepayers;
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(3) system reliability;
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(4) the environment;
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(5) local jobs;
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(6) local economic development;
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(7) Minnesota's eligible energy technology standard under Minnesota Statutes, section
216B.1691, subdivision 2a; and
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(8) Minnesota's carbon-free standard under Minnesota Statutes, section 216B.1691,
subdivision 2g.
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(c) The study must also evaluate:
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(1) current Minnesota statutes and administrative rules that would require modifications
in order to enable the construction and operation of advanced nuclear reactors;
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(2) the economic feasibility of replacing coal-fired boilers with advanced nuclear reactors,
while accounting for the avoided costs that result from the closure of coal-fired plants; and
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(3) the technologies and methods most likely to minimize the environmental impacts of
nuclear waste and the costs of managing nuclear waste.
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The commissioner of commerce must submit the results of the study
under subdivision 1 to the chairs and ranking minority members of the legislative committees
having jurisdiction over energy finance and policy no later than January 31, 2025.
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(a) The Department of Commerce must provide technical support and subject matter
expertise to assist and help facilitate any efforts taken by the 11 federally recognized Indian
Tribes in Minnesota to establish a Tribal advocacy council on energy.
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(b) When providing support to a Tribal advocacy council on energy, the Department of
Commerce may assist the council to:
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