SF 3946

as introduced - 90th Legislature (2017 - 2018) Posted on 04/13/2018 08:59am

A bill for an act
relating to energy conservation; establishing a grant program for cities to assist in
funding energy conservation in rental properties; appropriating money; proposing
coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.2413] ENERGY CONSERVATION GRANTS FOR RENTAL
PROPERTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms in this
subdivision have the meanings given them.
new text end

new text begin (b) "Contractor" means an organization awarded a grant from the department under this
section.
new text end

new text begin (c) "Energy conservation improvement" means a project that results in a reduction in
energy use.
new text end

new text begin (d) "Rental property" means residential real estate constructed before 1980 that is used
or held for use as a residence by the tenants or lessees of the owner.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A grant program is established under the Department of
Commerce to award grants to contractors to fund energy conservation improvements in
rental properties.
new text end

new text begin Subd. 3. new text end

new text begin Eligible expenditures. new text end

new text begin (a) Grants awarded to a contractor under this section
may be used to fund the materials and labor costs to install energy conservation improvements
in rental properties.
new text end

new text begin (b) The department may use no more than ....... percent of the assessment under
subdivision 7 or the appropriation under subdivision 8, as applicable, as payment to
administer this section.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin An applicant must submit an application to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
administrative procedures governing the application and grant award process. Grants may
be awarded under this section only to an organization with extensive experience implementing
residential energy conservation programs. The commissioner must act as fiscal agent for
the grant program and is responsible for receiving grant applications, reviewing grant
applications, and awarding grants to contractors under this section.
new text end

new text begin Subd. 5. new text end

new text begin Contractor grants to rental property owners. new text end

new text begin (a) A contractor may award a
grant under this section to an owner of a rental property to implement energy conservation
improvements at the property, provided that:
new text end

new text begin (1) the energy conservation improvements implemented are selected from a list of energy
conservation improvements prepared by the commissioner of commerce, in consultation
with the Metropolitan Airports Commission, ranked in ascending order based on the cost
per unit of energy saved. The list may be based on the inventory developed by the
commissioner under section 216B.241, subdivision 1d, that prioritizes energy conservation
improvements by the potential energy savings amount and cost-effectiveness;
new text end

new text begin (2) an owner of a rental property submits an application to the contractor, prescribed by
the contractor, to request a grant under this paragraph. The application must be approved
by the contractor; and
new text end

new text begin (3) a rental property owner awarded a grant under this paragraph signs a binding
agreement with the commissioner to not raise the annual rent by more than three percent
annually for a period of six years for any unit in a rental property that has received grant
funds under this section to implement energy conservation improvements.
new text end

new text begin (b) The commissioner may set a maximum grant amount based on the square footage
of the rental property, that may be awarded to a single rental property or a single rental
property owner.
new text end

new text begin (c) A grant awarded under this subdivision must not fund more than 85 percent of a
project's total cost.
new text end

new text begin (d) Any grant funds awarded to a contractor that are not expended by May 31, 2022,
must be transferred by the contractor to the commissioner of commerce by June 15, 2022.
The commissioner must deposit the unexpended funds in the energy and conservation
account established under section 216B.241, subdivision 2a, or the account established
under section 116C.779, subdivision 1, as applicable.
new text end

new text begin Subd. 6. new text end

new text begin Assessment. new text end

new text begin The commissioner of commerce, as part of the assessment
authorized under section 216B.241, subdivision 1e, must assess $....... in fiscal year 2019
and ....... in fiscal year 2020 for the grant program established under subdivision 2, for rental
properties located outside the retail electric service area of the public utility that owns a
nuclear generating facility.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation. new text end

new text begin Notwithstanding section 116C.779, subdivision 1, paragraph
(j), $6,000,000 in fiscal year 2019 and $6,000,000 in fiscal year 2020 are appropriated from
the account established in section 116C.779, subdivision 1, to the commissioner of commerce
for the grant program established under subdivision 2, for rental properties located within
the electric service area of the public utility that owns a nuclear generating facility.
new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

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