SF 657

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:14am

A bill for an act
relating to energy; providing direction for the use of federal stimulus funding
for energy programs.

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

Section 1. new text begin FEDERAL STIMULUS FUNDING; DEFINITIONS.
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new text begin For the purpose of sections 1 to 11, "stimulus funding" or "funding" means funding
provided to the state by the federal American Recovery and Reinvestment Act of 2009 for
weatherization, state energy programs, energy-efficient appliances, and energy efficiency
and conservation block grant purposes.
new text end

Sec. 2. new text begin WEATHERIZATION.
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new text begin (a) Existing providers of weatherization services must be fully utilized for
stimulus-funded activity before additional providers of weatherization services are added.
Programs that include rental units shall be developed, including developing procedures to
streamline low-income rental unit participation in programs. Priority shall be given to
serving the largest number of new weatherization clients consistent with federal eligibility
requirements. Administrative costs for increased program activity related to stimulus
funding must be minimized and the use of contract services maximized.
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new text begin (b) A variety of strategies must be used for stimulus funded weatherization,
including, without limitation:
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new text begin (1) neighborhood saturation on a multiprogram basis, including without limitation,
utility conservation programs, weatherization programs, and state and local government
energy programs;
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new text begin (2) a quick fix component that provides a lower level of weatherization to a larger
number of residences at a lower cost than a more comprehensive weatherization package;
and
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new text begin (3) a more complete weatherization package at a higher cost that would, to the extent
practicable, use funding from a number of programs.
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Sec. 3. new text begin LOCAL GOVERNMENT AND SCHOOL DISTRICT BUILDING
RENOVATIONS.
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new text begin The Department of Commerce and the Office of Energy Security must coordinate
the use of stimulus funds with the public building enhanced energy-efficiency program
under Minnesota Statutes, section 216C.43. The Office of Energy Security shall prioritize
lighting upgrades, energy recommissioning, and other cost-effective energy projects
that are ready for immediate implementation. Energy-efficiency conservation block
grants and state energy program funds may be used to advance local public building
enhanced energy-efficiency program projects by either reducing energy bills during a
savings repayment period or by decreasing the number of years for payback of energy
improvement investments. Stimulus funds may not exceed more than 25 percent of the
total project cost with the balance of funding provided by the local governmental unit
or school district, the local public building enhanced energy-efficiency program under
Minnesota Statutes, section 216C.43, or another local governmental unit or school district
financing program in conjunction with utility conservation investment program funds
to the maximum extent possible. The Office of Energy Security shall coordinate with
the Department of Education in prioritizing school district projects, consistent with the
principles of statewide geographic distribution of projects, optimized energy savings, and
an improved learning environment for school children.
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Sec. 4. new text begin STATE GOVERNMENT BUILDINGS.
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new text begin The Department of Administration and the Office of Energy Security shall develop a
joint plan and procedures to select, fund, and implement projects using stimulus funds.
The joint plan and procedures shall prioritize lighting upgrades, energy recommissioning,
and other cost-effective energy projects that are ready for immediate implementation.
Energy-efficiency conservation block grants and state energy program funds may be used
to advance public building enhanced energy-efficiency program projects under Minnesota
Statutes, section 16B.32, by either reducing energy bills during a savings repayment
period or decreasing the number of years for payback of energy improvement investments,
provided that stimulus funds do not exceed more than 25 percent of the total project
cost with the balance of funding provided through the state public building enhanced
energy-efficiency program, or other financing, including conservation investment program
funds to the maximum extent possible.
new text end

Sec. 5. new text begin RESIDENTIAL PROGRAMS.
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new text begin (a) A portion of the stimulus funds received by the Department of Commerce must be
used to fund a window replacement and insulation program for existing housing occupied
by low- or moderate-income households. The development and implementation of this
financing program must be coordinated with the Minnesota Housing Finance Agency.
new text end

new text begin (b) The Office of Energy Security must provide incentives to fund an
energy-efficiency program for existing housing occupied by low- or moderate-income
households. The development and implementation of this financing program must be
coordinated with the Minnesota Housing Finance Agency. Stimulus funds shall be used
to provide incentives to complete cost-effective energy-related improvements. Stimulus
funds shall not exceed 25 percent of the total project cost with the balance provided by
the property owner, utility-funded conservation investment programs, financing from the
Minnesota Housing Finance Agency, local lenders, or another housing-related program.
new text end

Sec. 6. new text begin COMMERCIAL AND INDUSTRIAL FACILITIES.
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new text begin Stimulus funds shall be granted to local units of government, including without
limitation, cities, counties, and port authorities for use in developing and implementing
demonstration programs to provide for the design, financing, and installation of
energy-efficiency improvements in commercial and industrial facilities. The local
government may use stimulus funds for all costs necessary to design, develop, and
implement a commercial/industrial program to fund energy-efficiency improvements,
including but not limited to the costs of administration, marketing and financing related
to due-diligence analyses, financing origination and servicing, training, measurement
and verification, and the local government shall use grant funds for loans, guarantees,
bond financing, shared savings agreements, grants, or other financing arrangements to
pay all costs necessary to the design, procurement, construction, and installation of
energy-efficiency improvements.
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Sec. 7. new text begin APPLIANCE REPLACEMENT.
new text end

new text begin To the extent consistent with federal law, the commissioner of commerce may utilize
stimulus funds to supplement and enhance the amount of rebates provided to residential
utility customers through a conservation investment program.
new text end

Sec. 8. new text begin TRAINING AND WORKFORCE DEVELOPMENT.
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new text begin Subdivision 1. new text end

new text begin Home energy auditors and technicians. new text end

new text begin The director of the Office
of Energy Security shall oversee training of energy auditors necessary for energy projects
using stimulus funding and may allocate funding for that purpose. Technical skills training
must include insulation, air sealing, and mechanical work.
new text end

new text begin Subd. 2. new text end

new text begin Energy manager and building operator training. new text end

new text begin The director of the
Office of Energy Security shall coordinate and monitor training and certification of
energy managers, building operators, and other energy professionals necessary for energy
projects using stimulus funding and may allocate funding for that purpose. Training
strategies must be designed to meet the wide range of facilities managers and the wide
range of buildings sizes and types.
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new text begin Subd. 3. new text end

new text begin Training activity guidelines. new text end

new text begin In addition to training individuals already
employed in implementing energy programs, the director shall recruit individuals for
training to perform work in energy projects using stimulus funding who are unemployed,
especially targeting unemployed or underemployed individuals in construction trades and
crafts. The director shall utilize the full capacity of current training providers, including,
but not limited to, opportunities industrialization centers, skilled trades labor unions, and
nonprofit organizations with historic expertise in energy efficiency. Training may include
an on-the-job component where the trainee goes to job sites with trained crews. If the
director determines that outreach efforts are necessary for the weatherization program, the
director shall, at least in part, utilize paid and volunteer youth to perform the outreach.
new text end

new text begin Subd. 4. new text end

new text begin Energy technology transfer and training center. new text end

new text begin The Office of Energy
Security shall contract with a Minnesota nonprofit corporation with extensive experience
in energy research, program design and delivery, program evaluation, and consumer
education to create an Energy Technology Transfer and Training Center. The center shall
coordinate its efforts with state agencies and others such as the Minnesota State Colleges
and Universities, Minnesota technical assistance program, Center for Sustainable Building
Research at the University of Minnesota, Minnesota Technology Center, and a broad array
of public and private organizations to provide energy-related services. Stimulus funds
must be matched on a dollar-for-dollar basis.
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Sec. 9. new text begin OFFICE OF ENERGY SECURITY; LOCAL GOVERNMENT
ASSISTANCE.
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new text begin The director of the Office of Energy Security shall designate personnel and may
contract to provide advice and assistance to local units of government receiving federal
stimulus money, particularly smaller cities. The director shall develop, by contract or
otherwise, strategies that local units of government can utilize to obtain maximum
conservation and economic development returns from stimulus funding. The director shall
work with associations of local governmental units to notify local governments of the
availability of advice under this section.
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Sec. 10. new text begin COMPETITIVE ENERGY GRANTS; STATE AND LOCAL
GOVERNMENT AUTHORIZATION.
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new text begin All state agencies and local units of government, in addition to any other authority,
are authorized to engage in activities individually and in cooperation with other public or
private entities to apply for, accept, and expend competitive funds made available in the
federal American Recovery and Reinvestment Act of 2009 through the Energy Efficiency
and Conservation Block Grant.
new text end

Sec. 11. new text begin CONSERVATION IMPROVEMENT PLANS; FEDERAL STIMULUS
PLAN.
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new text begin The commissioner of commerce must consider the impact of federal stimulus
funding in the administration of the conservation improvement program (CIP) under
Minnesota Statutes, section 216B.241. The commissioner may amend plans currently in
effect and approve plans to accommodate federal stimulus funding.
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Sec. 12. new text begin EFFECTIVE DATE.
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new text begin Sections 1 to 11 are effective the day following final enactment.
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