SF 4215

as introduced - 91st Legislature (2019 - 2020) Posted on 03/10/2020 09:14am

A bill for an act
relating to energy; establishing a revolving loan fund for energy conservation in
schools; establishing a residential energy conservation grant program; providing
energy efficiency grants to commercial buildings; establishing an energy efficiency
grant program for nursing homes; establishing a grant program to provide financial
assistance to cities to address climate change; establishing a grant program for
pilot projects to encourage and increase composting in multifamily buildings;
establishing a grant program to assist school districts to purchase and install solar
energy systems; establishing a rebate for the installation of solar energy devices
on residences; establishing a grant program for innovative distributed energy
projects; establishing a grant program assisting school districts to purchase electric
school buses; providing a grant program to encourage the purchase of electric
buses; establishing a program to provide rebates to purchasers of electric vehicles;
providing financial incentives to enrollees in the conservation reserve program;
acquiring land for wellhead protection and ash tree disposal; requiring a carbon
sequestration report; appropriating money; proposing coding for new law in
Minnesota Statutes, chapters 115A; 216C.

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

Section 1.

new text begin [115A.5591] COMPOSTING; MULTIFAMILY BUILDINGS;
COMPETITIVE GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "multifamily building" means
an apartment facility containing four or more dwelling units that are rented by a person or
family to use as a residence.
new text end

new text begin Subd. 2. new text end

new text begin Grant program established. new text end

new text begin The commissioner must establish a competitive
grant program to provide financial assistance to develop and implement pilot projects that
encourage composting by residents of multifamily buildings located in areas where compost
is not collected at curbside. Each grant must include an educational component regarding
the methods and benefits of composting.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin A grant may be awarded under this section to:
new text end

new text begin (1) a political subdivision;
new text end

new text begin (2) an owner of a multifamily building; or
new text end

new text begin (3) an organization that is exempt from taxation under section 501(c)(3) of the Internal
Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin The commissioner must develop forms and procedures to solicit
and review applications for grants under this section.
new text end

new text begin Subd. 5. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities under
this section must be used only to:
new text end

new text begin (1) provide grants under this section; and
new text end

new text begin (2) reimburse the Pollution Control Agency for reasonable expenses to administer the
grant program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [216C.372] SCHOOL ENERGY CONSERVATION REVOLVING LOAN
FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Energy conservation" means a net reduction in energy use.
new text end

new text begin (c) "Energy conservation improvement" means a measure or program (1) that targets
consumer behavior, equipment, processes, or devices, and (2) whose implementation is
designed to result in a net reduction in energy use.
new text end

new text begin (d) "Project" means the energy conservation improvements financed by a loan made
under this section.
new text end

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A school energy conservation revolving loan fund is established
in the Department of Commerce to make zero-interest loans to school districts to implement
energy conservation improvements in school district buildings. The fund must be credited
with (1) investment income, and (2) with principal and interest repayments. Money in the
fund is annually appropriated to the commissioner and does not lapse.
new text end

new text begin Subd. 3. new text end

new text begin Fund management. new text end

new text begin The commissioner must manage and administer the school
energy conservation revolving loan fund.
new text end

new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin Applicants for loans must submit an application to the
commissioner on a form prescribed by the commissioner. An applicant must supply the
following information:
new text end

new text begin (1) the total estimated project cost and the loan amount sought;
new text end

new text begin (2) a description of existing equipment, structural elements, operating characteristics,
and other conditions affecting energy use that the energy conservation improvements financed
by the loan modify or replace;
new text end

new text begin (3) a description of the proposed project;
new text end

new text begin (4) a detailed project budget;
new text end

new text begin (5) calculations sufficient to demonstrate the expected energy and monetary savings that
result from implementation of the project;
new text end

new text begin (6) information demonstrating the school district's ability to repay the loan; and
new text end

new text begin (7) any additional information requested by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Loan conditions. new text end

new text begin (a) Loans must be made at zero interest rates for terms not
to exceed 15 years.
new text end

new text begin (b) Payments of loan principal must begin no later than one year after the project is
completed.
new text end

new text begin Subd. 6. new text end

new text begin Exception. new text end

new text begin Section 126C.10, subdivision 14, clause (11), does not apply to
loans made under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [216C.375] SOLAR FOR SCHOOLS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Developer" means an entity that installs a solar energy system on a school building
that has been awarded a grant under this section.
new text end

new text begin (c) "Energy storage system" means a commercially available technology capable of:
new text end

new text begin (1) absorbing and storing electrical energy; and
new text end

new text begin (2) dispatching stored electrical energy at a later time.
new text end

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

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

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

new text begin (g) "Solar energy system" means photovoltaic or solar thermal devices installed alone
or in combination with an energy storage system.
new text end

new text begin (h) "Solar thermal device" means a flat plate or evacuated tube that (1) meets the
requirements of section 216C.25, and (2) has a fixed orientation that collects the sun's radiant
energy and transfers it to a storage medium for distribution as energy to heat or cool air or
water.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar for schools program is established in the
Department of Commerce. The purpose of the program is to provide grants to (1) stimulate
the installation of solar energy systems on or adjacent to school buildings by reducing costs,
and (2) enable schools to use the solar energy system as a teaching tool that can be integrated
into the school's curriculum.
new text end

new text begin Subd. 3. new text end

new text begin Expenditures. new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Eligible system. new text end

new text begin (a) A grant may be awarded to a school under this section
only if the solar energy system that is the subject of the grant:
new text end

new text begin (1) is installed on or adjacent to the school building that consumes the electricity generated
by the solar energy system, on property within the service territory of the utility currently
providing electric service to the school building; and
new text end

new text begin (2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the
estimated annual electricity consumption of the school building at which the solar energy
system is proposed to be installed.
new text end

new text begin (b) A school district that receives a rebate or other financial incentive under section
216B.241 for a solar energy system and that demonstrates considerable need for financial
assistance, as determined by the commissioner, is eligible for a grant under this section for
the same solar energy system.
new text end

new text begin Subd. 5. new text end

new text begin Application process. new text end

new text begin (a) The commissioner must issue a request for proposals
to utilities, schools, and developers who may wish to apply for a grant under this section
on behalf of a school.
new text end

new text begin (b) A utility or developer must submit an application to the commissioner on behalf of
a school on a form prescribed by the commissioner. The form must include, at a minimum,
the following information:
new text end

new text begin (1) the proposed solar energy system's capacity and the anticipated amount of electricity
generated;
new text end

new text begin (2) the current energy demand of the school building on which the solar energy generating
system is to be installed, and information regarding any distributed energy resource, including
subscription to a community solar garden, that currently provides electricity to the school
building;
new text end

new text begin (3) the size of any energy storage system that is proposed to be installed as part of a
solar energy system;
new text end

new text begin (4) a description of any solar thermal devices proposed as part of the solar energy system;
new text end

new text begin (5) the total cost to purchase and install the solar energy system and the system's life-cycle
cost, including removal and disposal at the end of the system's life;
new text end

new text begin (6) a copy of the proposed contract agreement between the school and the public utility
or developer that includes provisions addressing the responsibility to maintain the solar
energy system;
new text end

new text begin (7) the school's plan to make the solar energy system serve as a visible learning tool for
students, teachers, and visitors to the school, including how the solar energy system may
be integrated into the school's curriculum;
new text end

new text begin (8) information that demonstrates the school district's level of need for financial assistance
available under this section;
new text end

new text begin (9) information that demonstrates the school's readiness to implement the project,
including but not limited to the availability of the site on which the solar energy system is
to be installed and the level of the school's engagement with the utility providing electric
service to the school building on which the solar energy system is to be installed regarding
issues relevant to project implementation, including metering and other issues;
new text end

new text begin (10) with respect to the installation and operation of the solar energy system, the
willingness and ability of the developer or the public utility to:
new text end

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

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

new text begin (11) how the developer or public utility plans to reduce the school's initial capital expense
to purchase and install the solar energy system, and to provide financial benefits to the
school from federal and state tax credits, utility incentives, and other financial incentives;
and
new text end

new text begin (12) any other information deemed relevant by the commissioner.
new text end

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

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

new text begin Subd. 6. new text end

new text begin Energy conservation review. new text end

new text begin At the commissioner's request, a school awarded
a grant under this section must provide the commissioner information regarding energy
conservation measures implemented at the school building at which the solar energy system
is to be installed. The commissioner may make recommendations to the school regarding
cost-effective conservation measures the school can implement and may provide technical
assistance and direct the school to available financial assistance programs.
new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance to
schools to develop and execute projects under this section.
new text end

new text begin Subd. 8. new text end

new text begin Grant payments. new text end

new text begin The commissioner must award a grant to a school for the
necessary costs associated with the solar energy system purchase and installation. The
amount of the grant must be based on the commissioner's assessment of the school's need
for financial assistance.
new text end

new text begin Subd. 9. new text end

new text begin Limitations. new text end

new text begin (a) No more than 50 percent of the grant payments awarded to
schools under this section may be awarded to schools where the proportion of students
eligible for free or reduced-price lunch under the National School Lunch Program is less
than 50 percent.
new text end

new text begin (b) No more than ten percent of the total amount of grants awarded under this section
may be awarded to schools that are part of the same school district.
new text end

new text begin Subd. 10. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2024.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin [216C.401] ELECTRIC VEHICLE REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

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

new text begin (b) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraphs (a) and (b), clause (3).
new text end

new text begin (c) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
new text end

new text begin (d) "Used eligible electric vehicle" means an eligible electric vehicle that has previously
been registered in a state.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin The purchaser of an electric vehicle is eligible for a rebate, subject
to the amounts and limits in subdivisions 3 and 4, if:
new text end

new text begin (1) the electric vehicle:
new text end

new text begin (i) has not been modified from the original manufacturer's specifications; and
new text end

new text begin (ii) is purchased after the effective date of this act for use by the purchaser and not for
resale;
new text end

new text begin (2) the purchaser:
new text end

new text begin (i) is a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a),
when the electric vehicle is purchased;
new text end

new text begin (ii) is a business that has a valid address in Minnesota from which business is conducted;
new text end

new text begin (iii) is a nonprofit corporation incorporated under chapter 317A; or
new text end

new text begin (iv) is a political subdivision of the state; and
new text end

new text begin (3) the purchaser:
new text end

new text begin (i) has not received a rebate or tax credit for the purchase of an electric vehicle from
Minnesota; and
new text end

new text begin (ii) registers the electric vehicle in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Rebate amounts. new text end

new text begin (a) A $2,500 rebate may be issued under this section to an
eligible purchaser to purchase a new eligible electric vehicle.
new text end

new text begin (b) A $500 rebate may be issued under this section to an eligible purchaser to purchase
a used eligible electric vehicle.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenses. new text end

new text begin Appropriations made to support the activities of this section
must be expended only to pay:
new text end

new text begin (1) rebates to eligible purchasers of eligible electric vehicles; and
new text end

new text begin (2) the department's reasonable costs to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin (a) The number of rebates allowed under this section are limited to:
new text end

new text begin (1) no more than one rebate per resident per household; and
new text end

new text begin (2) no more than one rebate per business entity per year.
new text end

new text begin (b) A rebate must not be issued under this section for an electric vehicle with a
manufacturer's suggested retail price that exceeds $60,000.
new text end

new text begin Subd. 6. new text end

new text begin Program administration. new text end

new text begin (a) Rebate applications under this section must be
filed with the commissioner on a form prescribed by the commissioner.
new text end

new text begin (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.
new text end

new text begin (c) The commissioner may reduce the rebate amounts provided under subdivision 3 or
restrict program eligibility based on fund availability or other factors.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2025.
new text end

Sec. 5.

new text begin [216C.418] RESIDENTIAL SOLAR REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purpose of this section, "photovoltaic device" has the
meaning given in section 216C.06, subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Rebate program established. new text end

new text begin The commissioner must establish a rebate
program to provide financial assistance to owners of single-family residences to purchase
and install photovoltaic devices on or adjacent to the residence.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Application for a rebate under this section must be made to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
procedures and processes to (1) solicit and review applications, and (2) award rebates under
this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin (a) A rebate must not be awarded under this section for a photovoltaic
device capable of generating more than 120 percent of the average annual amount of
electricity consumed by the residence over the past three years.
new text end

new text begin (b) A rebate may be awarded under this section for a photovoltaic system that receives
financial assistance from the federal government or a Minnesota utility.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A rebate awarded under this section must not exceed the percentage
of the total cost to purchase and install the photovoltaic device, as follows:
new text end

new text begin (1) a rebate awarded in 2020: 4 percent;
new text end

new text begin (2) a rebate awarded in 2021: 8 percent; and
new text end

new text begin (3) a rebate awarded after 2021: 20 percent.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin RESIDENTIAL ENERGY EFFICIENCY GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Department" means the Department of Commerce.
new text end

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

new text begin (e) "Principal residence" means property classified as class 1a or 1b under Minnesota
Statutes, section 273.13, subdivision 22, and the house portion of property classified as
class 2a under Minnesota Statutes, section 273.13, subdivision 23.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a residential energy efficiency
grant program in the Department of Commerce to provide grants to homeowners to make
energy conservation improvements that reduce a home's energy consumption.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Application for a grant under this program must be made to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
procedures to (1) solicit and review applications, and (2) award grants under this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant under this section:
new text end

new text begin (1) must be a Minnesota resident who owns a home that is the owner's principal residence,
and in which all energy conservation improvements supported by the grant are to be installed;
and
new text end

new text begin (2) may also receive financial assistance from a utility or other source for the same
energy conservation improvement for which a grant under this section is sought.
new text end

new text begin Subd. 5. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to:
new text end

new text begin (1) provide grants as specified in this section; and
new text end

new text begin (2) reimburse the department's reasonable expenses to administer this section.
new text end

new text begin Subd. 6. new text end

new text begin Grant amount. new text end

new text begin A grant awarded under this section must not exceed the lesser
of $2,000 or 34 percent of the total cost of the energy conservation improvements made in
the home.
new text end

new text begin Subd. 7. new text end

new text begin Grant awards. new text end

new text begin When making grant awards under this section, the commissioner
must give preference to applications from homeowners residing in an area designated by
the Minnesota Pollution Control Agency as an area of concern for environmental justice.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin ENERGY EFFICIENCY GRANTS; COMMERCIAL BUILDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commercial building" means a multifamily or commercial building that can benefit
from the installation of cost-effective energy improvements, as determined by an energy
audit.
new text end

new text begin (c) "Commissioner" means the commissioner of commerce.
new text end

new text begin (d) "Cost-effective energy improvement" means any renovation or retrofitting of a
building to improve energy efficiency that is permanently affixed to the property, results
in a net reduction in energy consumption, and has been identified in an energy audit as
repaying the energy improvement's purchase and installation costs in 20 years or less, based
on the amount of future energy saved and estimated future energy prices.
new text end

new text begin (e) "Energy audit" has the meaning given in section 216C.435, subdivision 4.
new text end

new text begin (f) "Multifamily building" means an apartment facility containing four or more dwelling
units that are rented by a person or family to use as a residence.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a commercial building energy
efficiency grant program in the Department of Commerce to provide financial assistance
to owners of commercial buildings in which cost-effective energy improvements are installed.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Application for a grant under this program must be made to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
procedures to (1) solicit and review applications, and (2) award grants under this section.
new text end

new text begin Subd. 4. new text end

new text begin Grant awards. new text end

new text begin When awarding grants under this section, the commissioner
must give preference to applications for cost-effective energy efficiency improvements in
multifamily buildings.
new text end

new text begin Subd. 5. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to:
new text end

new text begin (1) provide grants under this section; and
new text end

new text begin (2) reimburse the department's reasonable expenses to administer the grant program.
new text end

new text begin Subd. 6. new text end

new text begin Awarding grants. new text end

new text begin When awarding grants under this section, the commissioner
must give preference to applications by commercial building owners who are women,
veterans, racial minorities, and immigrants.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin ENERGY EFFICIENCY GRANTS; NURSING HOMES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Cost-effective energy improvement" means any renovation or retrofitting of a
building to improve energy efficiency that is permanently affixed to the property, results
in a net reduction in energy consumption, and has been identified in an energy audit as
repaying the purchase and installation costs of the energy improvement in 20 years or less,
based on the amount of future energy saved and estimated future energy prices.
new text end

new text begin (d) "Energy audit" has the meaning given in section 216C.435, subdivision 4.
new text end

new text begin (e) "Nursing home" has the meaning given in section 144A.01, subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a nursing home energy
efficiency grant program in the department to provide financial assistance to nursing homes
that implement cost-effective energy improvements in nursing home buildings.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Application for a grant under this program must be made to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
procedures to (1) solicit and review applications, and (2) award grants under this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to:
new text end

new text begin (1) provide grants under this section; and
new text end

new text begin (2) to reimburse the department's reasonable expenses to administer the grant program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text begin CITY CLIMATE ACTION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purpose of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Climate change" means a change in global or regional climate patterns associated
with increased levels of greenhouse gas emissions entering the atmosphere largely as a
result of human activity.
new text end

new text begin (c) "Commissioner" means the commissioner of the Pollution Control Agency.
new text end

new text begin (d) "Greenhouse gas emissions" means the emission of carbon dioxide, methane, nitrous
oxide, chlorofluorocarbons, hydrofluorocarbons, sulfur hexafluoride, and other gases that
trap heat in the atmosphere.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a city climate action grant
program in the Pollution Control Agency. The purpose of the program is to provide grants
to encourage cities to address climate change by developing and implementing plans of
action, or creating new organizations and institutions to devise policies and programs, that:
new text end

new text begin (1) seek to mitigate the impacts of climate change on the city; and
new text end

new text begin (2) reduce the city's contributions to the causes of climate change.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) Application for a grant under this section must be made to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
procedures to (1) solicit and review applications, and (2) award grants under this section.
new text end

new text begin (b) Eligible applicants for a grant under this section must be located in or conduct the
preponderance of the applicant's work in the city where the grant activities take place.
Eligible applicants include city governments, organizations that are exempt from taxation
under section 501(c)(3) of the Internal Revenue Code, and educational institutions.
new text end

new text begin (c) An applicant must address how the activities undertaken under the grant affect areas
of the city designated by the Pollution Control Agency as an area of concern for
environmental justice, if applicable.
new text end

new text begin Subd. 4. new text end

new text begin Awarding grants. new text end

new text begin When awarding grants under this section, the commissioner
must give preference to proposals that seek to involve a broad array of community residents,
organizations, and institutions in the city's efforts to address climate change.
new text end

new text begin Subd. 5. new text end

new text begin Grant amounts. new text end

new text begin (a) A grant awarded under this section must not exceed
$50,000.
new text end

new text begin (b) A grant awarded under this section for activities taking place in a city whose
population exceeds 20,000 must be matched 100 percent with local funds.
new text end

new text begin (c) A grant awarded under this section for activities taking place in a city whose
population is less than 20,000 must be matched with a minimum of five percent local funds
or an equivalent in in-kind services.
new text end

new text begin Subd. 6. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to:
new text end

new text begin (1) provide grants under this section; and
new text end

new text begin (2) reimburse the Pollution Control Agency's reasonable expenses to administer the
grant program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text begin INNOVATIVE DISTRIBUTED ENERGY PROJECT GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Energy storage" means a technology that absorbs and stores electrical energy and
is capable of dispatching that stored energy at a later time.
new text end

new text begin (d) "Innovative distributed energy project" means a project:
new text end

new text begin (1) with a nameplate capacity of ten kilowatts or less;
new text end

new text begin (2) that contains at least two of the following components:
new text end

new text begin (i) photovoltaic devices, as defined in section 216C.06, subdivision 16;
new text end

new text begin (ii) a wind energy conversion system, as defined in section 216C.06, subdivision 19; or
new text end

new text begin (iii) an energy storage system; and
new text end

new text begin (3) that interconnects directly with the electric distribution system of a cooperative
electric association or municipal utility, bypassing the high-voltage transmission network.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish an innovative distributed
energy project grant program in the Department of Commerce to provide financial assistance
to cooperative electric associations and municipal utilities that interconnect such projects
to the cooperative electric association or municipal utility's distribution system.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin An application for a grant under this section must be made to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
procedures to (1) solicit and review applications, and (2) award grants under this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to:
new text end

new text begin (1) provide grants under this section; and
new text end

new text begin (2) reimburse the department's reasonable expenses to administer the grant program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin ELECTRIC SCHOOL BUS GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of education.
new text end

new text begin (c) "Electric school bus" means a school bus powered solely by an electric motor drawing
current from rechargeable storage batteries, fuel cells, or other portable sources of electric
current.
new text end

new text begin (d) "Electric vehicle charging station" means infrastructure that recharges an electric
vehicle's batteries by connecting the electric vehicle to:
new text end

new text begin (1) a level 2 charger that provides a 240-volt alternating current power source; or
new text end

new text begin (2) a DC fast charger that has an electric output of 20 kilowatts or greater.
new text end

new text begin (e) "Private school bus contractor" means a person who contracts with a school district
to transport school district students to and from school and school activities on school buses
owned and operated by the person.
new text end

new text begin (f) "School bus" has the meaning given in Minnesota Statutes, section 169.011,
subdivision 71, but does not include a type III vehicle, as defined in Minnesota Statutes,
section 169.011, subdivision 71, paragraph (h).
new text end

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a grant program to assist
school districts to purchase electric school buses in order to enable school districts, electric
utilities serving school districts, and, if applicable, private school bus contractors providing
transportation services to school districts to gain experience operating electric school buses
and to assess electric school bus performance.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin A school district that owns and operates school buses or contracts
with a private school bus contractor is eligible to apply for a grant under 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 eligible 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. The
commissioner may consult with the commissioner of commerce regarding development of
the application form and application review.
new text end

new text begin Subd. 5. new text end

new text begin Application content. new text end

new text begin An application for a grant under this section must include:
new text end

new text begin (1) the name of the school district or districts where the applicant intends to operate the
electric school buses;
new text end

new text begin (2) a description of the route, timing of operation, number of students to be transported,
and other factors affecting the performance characteristics that an electric school bus must
meet;
new text end

new text begin (3) evidence of the cost differential between the electric school bus the school district
seeks to purchase under the grant and a comparable nonelectric school bus;
new text end

new text begin (4) certification from the electric utility serving the school district, and, if applicable,
the private school bus contractor providing transportation services to the school district,
that the electric utility and private school bus contractor fully support and are full partners
in implementing the grant project, including a list of tasks the electric utility and private
school bus contractor commit to conduct and any voluntary financial contributions to the
project the electric utility and private school bus contractor commit to make;
new text end

new text begin (5) certification from the electric utility serving the school district that it commits to pay
the costs to purchase and install in a convenient location an electric vehicle charging station
to recharge the batteries of electric school buses;
new text end

new text begin (6) evidence that the electric school buses have access to an electric vehicle charging
station at a convenient location;
new text end

new text begin (7) if the school district contracts with a private school bus contractor:
new text end

new text begin (i) a copy of a signed agreement between the school district and the private school bus
contractor that protects the state's interest in the electric school bus purchased with the grant
if (A) the contract between the private school bus contractor and the school district is
terminated, or (B) another contingency occurs; and
new text end

new text begin (ii) written certification that any revenues paid to the private school bus contractor by
the utility providing retail electric service to the private school bus contractor that result
from the purchase of or access to the electricity stored in the batteries of the electric school
bus purchased with a grant under this section must be forwarded to the school district; and
new text end

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

new text begin Subd. 6. new text end

new text begin Eligible expenditures. new text end

new text begin Grant funds awarded under this section may be expended
to:
new text end

new text begin (1) pay the difference in cost between an electric school bus and a comparable nonelectric
school bus;
new text end

new text begin (2) purchase and install an electric vehicle charging system the electric school bus can
use if the electric utility declines to pay those costs; and
new text end

new text begin (3) pay repair and maintenance costs for the electric school buses.
new text end

new text begin Subd. 7. new text end

new text begin Grant award; preference. new text end

new text begin (a) When awarding grants, the commissioner must
give preference to applications in which the electric utility providing electric service to the
bus owner has made a commitment to pay the cost of one or more electric vehicle charging
stations intended for use by an electric bus that receives a grant award under this section.
new text end

new text begin (b) When awarding grants, the commissioner must endeavor to ensure that school districts
whose proportion of students eligible for free or reduced-price lunches is at or above the
50 and 75 percent level, as calculated under section 126C.05, subdivision 16, are fairly
served.
new text end

new text begin Subd. 8. new text end

new text begin Limitation. new text end

new text begin The commissioner must not award more than ... grants under this
section to a single school district.
new text end

new text begin Subd. 9. new text end

new text begin Reports. new text end

new text begin On or before the first anniversary of the date an electric school bus
funded by a grant under this section is initially operated, and on or before the same date in
each of the following two years, the school district awarded the grant, in collaboration with
the electric utility serving the school district, and, if applicable, the private school bus
contractor providing transportation services to the school district, must submit a report
describing the electric school bus performance to the chairs and ranking minority members
of the senate and house of representatives committees with primary jurisdiction over energy
policy, transportation policy, and education policy, and to the commissioner of education.
At a minimum, the report must contain the following information regarding the performance
of the electric school bus:
new text end

new text begin (1) the number of miles traveled per day and per year;
new text end

new text begin (2) the cost to recharge the electric school bus, and any steps taken to minimize the costs
by charging at off-peak times;
new text end

new text begin (3) operating costs per mile;
new text end

new text begin (4) miles driven per kWh;
new text end

new text begin (5) the number of days the electric school bus was out of service for repairs;
new text end

new text begin (6) discussion of the qualitative aspects of performance, including the impact of extreme
cold on bus performance; and
new text end

new text begin (7) any other information deemed relevant by the school district.
new text end

Sec. 12. new text begin ELECTRIC BUS GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of transportation.
new text end

new text begin (c) "Electric bus" means a motor vehicle:
new text end

new text begin (1) used to transport persons;
new text end

new text begin (2) designed to carry more than 15 passengers, including the driver; and
new text end

new text begin (3) that meets the definition of "electric motor vehicle" in section 169.011, subdivision
26a, paragraph (a).
new text end

new text begin (d) "Electric vehicle charging station" means infrastructure that recharges an electric
vehicle's batteries by connecting the electric vehicle to:
new text end

new text begin (1) a level 2 charger that provides a 240-volt alternating current power source; or
new text end

new text begin (2) a DC fast charger that has an electric output of 20 kilowatts or greater.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish an electric bus grant program
in the Department of Transportation to provide financial assistance to encourage electric
bus purchases.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin A transit provider eligible to receive financial assistance
under section 174.24 or 473.388 is eligible to file an application for a grant under this
section.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin An applicant seeking a grant under this section must submit an
application to the commissioner on a form prescribed by the commissioner. The
commissioner must develop procedures to (1) solicit and review applications, and (2) make
awards under this section.
new text end

new text begin Subd. 5. new text end

new text begin Eligible expenditures. new text end

new text begin Grant awards made under this section must be used
only to:
new text end

new text begin (1) assist the purchase of an electric bus by paying the difference between the cost of
an electric bus and a comparable nonelectric bus;
new text end

new text begin (2) purchase and install an electric vehicle charging system for an electric bus that is the
subject of a grant award made under this section; and
new text end

new text begin (3) pay the Department of Transportation's reasonable costs to administer this section.
new text end

new text begin Subd. 6. new text end

new text begin Grant award; preference. new text end

new text begin When awarding grants, the commissioner must
give preference to applications in which the electric utility providing electric service to the
location from which the proposed electric bus operates has made a commitment to pay the
cost of one or more electric vehicle charging stations intended for use by an electric bus
that receives a grant award under this section.
new text end

new text begin Subd. 7. new text end

new text begin Limitation. new text end

new text begin No more than ... grants under this section may be made to a single
applicant.
new text end

new text begin Subd. 8. new text end

new text begin Bus deployment. new text end

new text begin (a) A transit provider must deploy an electric bus purchased
with a grant made under this section in areas it serves that experience poor air quality, as
applicable.
new text end

new text begin (b) For the purposes of this section, "poor air quality" means:
new text end

new text begin (1) ambient air levels of 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, as revealed by air monitoring data, that approach or exceed
state or federal air quality standards or chronic health inhalation risk benchmarks; 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 EFFECTIVE DATE. new text end

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

Sec. 13. new text begin COMMISSIONER OF COMMERCE; APPROPRIATION.
new text end

new text begin $131,500,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of commerce as a onetime appropriation to be allocated as follows:
new text end

new text begin (1) $20,500,000 to establish and operate a revolving loan fund to provide loans to school
districts for energy conservation projects under Minnesota Statutes, section 216C.372;
new text end

new text begin (2) $15,000,000 to award residential energy efficiency grants under section 6. This
appropriation is available until December 31, 2022;
new text end

new text begin (3) $15,000,000 to supplement funds made available to the state by federal law to be
used for weatherizing the residences of low-income persons, as provided in Minnesota
Statutes, section 216C.264;
new text end

new text begin (4) $15,000,000 to award commercial building energy efficiency grants under section
7. This appropriation is available until December 31, 2022;
new text end

new text begin (5) $20,000,000 to award nursing home energy efficiency grants under section 8. This
appropriation is available until December 31, 2022;
new text end

new text begin (6) $16,000,000 to award grants to assist school districts to purchase and install solar
energy systems under section 216C.375. This appropriation is available until December 31,
2025;
new text end

new text begin (7) $10,000,000 to award rebates for the purchase and installation of residential solar
photovoltaic devices under Minnesota Statutes, section 216C.418. This appropriation is
available until December 31, 2024;
new text end

new text begin (8) $5,000,000 to award innovative distributed energy project grants under section 10.
This appropriation is available until December 31, 2022; and
new text end

new text begin (9) $15,000,000 to award rebates to eligible electric vehicle purchasers under Minnesota
Statutes, section 216C.401. This appropriation is available until December 31, 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

Sec. 14. new text begin COMMISSIONER OF THE POLLUTION CONTROL AGENCY;
APPROPRIATION.
new text end

new text begin $10,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of the Pollution Control Agency as a onetime appropriation to be allocated as follows:
new text end

new text begin (1) $5,000,000 to award city climate action grants under section 9. This appropriation
is available until December 31, 2022; and
new text end

new text begin (2) $5,000,000 to award grants for pilot projects that encourage composting by residents
of multifamily buildings under Minnesota Statutes, section 115A.5591. This appropriation
is available until December 31, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15. new text begin COMMISSIONER OF EDUCATION; APPROPRIATION.
new text end

new text begin $20,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of education to award grants to school districts for the purchase of electric school buses, as
described in section 11. This is a onetime appropriation and is available until December 31,
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

Sec. 16. new text begin COMMISSIONER OF TRANSPORTATION; APPROPRIATION.
new text end

new text begin $20,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of transportation to award grants to transit providers to assist in the purchase of electric
buses under section 12. This is a onetime appropriation and is available until December 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

Sec. 17. new text begin BOARD OF WATER AND SOIL RESOURCES; APPROPRIATION.
new text end

new text begin $9,000,000 in fiscal year 2021 is appropriated from the general fund to the Board of
Water and Soil Resources as a onetime appropriation to be allocated as follows:
new text end

new text begin (1) $6,500,000 to provide onetime state incentive payments to enrollees in the federal
Conservation Reserve Program (CRP). The board may establish payment rates based on
land valuation and on environmental benefit criteria, including but not limited to surface or
ground water nutrient reduction, drinking water protection, soil health, carbon sequestration,
and pollinator and wildlife habitat enhancements. The board may use state funds to implement
the program and to provide technical assistance to landowners or their agents to fulfill
enrollment and contract provisions. The board must consult with the commissioners of
agriculture, health, natural resources, and the Pollution Control Agency and the United
States Department of Agriculture in establishing program criteria. This appropriation is
available until June 30, 2023; and
new text end

new text begin (2) $2,500,000 to award grants to local units of government for fee title acquisition of
land to permanently protect groundwater supply sources where the vulnerability of the
drinking water supply is designated as high or very high by the commissioner of health.
Priority must be given to lands identified as a suitable ash tree disposal site. Of this
appropriation, $....... is available to acquire woodchipping equipment and for infrastructure
improvements and other equipment necessary to facilitate ash tree disposal at sites acquired
under this section. This appropriation is available until June 30, 2023.
new text end

Sec. 18. new text begin CARBON SEQUESTRATION REPORT; APPROPRIATION.
new text end

new text begin $1,000,000 in fiscal year 2021 is appropriated from the general fund to the Board of
Regents of the University of Minnesota, in cooperation with state agencies, to investigate
the potential for carbon sequestration on public and private lands and submit
recommendations to the legislature. By January 15, 2022, the board must submit the results
of the investigation and its recommendations to the chairs and ranking minority members
of the house of representatives and senate committees and divisions with jurisdiction over
energy and climate and environment and natural resources. This is a onetime appropriation
and is available until June 30, 2022.
new text end