Minnesota Session Laws - 2009, Regular Session

CHAPTER 138--S.F.No. 657

An act

relating to energy; providing direction for the use of federal stimulus money for energy programs; appropriating money;

amending Minnesota Statutes 2008, section 16B.322, by adding subdivisions.

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

ARTICLE 1

DEFINITIONS; LEGISLATIVE NOTICE

Section 1.

new text begin FEDERAL STIMULUS FUNDING. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of articles 1 to 6, the following terms have the meanings given them. new text end

new text begin (a) "Act" means the American Recovery and Reinvestment Act of 2009, Public Law 111-5, unless the reference is to "this act," which refers to articles 1 to 7. new text end

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

new text begin (c) "Stimulus funding" or "funding" means funding provided to the state under the act for: new text end

new text begin (1) energy efficiency and conservation block grants authorized under subtitle E of title V of the federal Energy Independence and Security Act of 2007, United States Code, title 42, section 17151, et seq.; new text end

new text begin (2) the Weatherization Assistance Program authorized under part A of title IV of the federal Energy Conservation and Production Act, United States Code, title 42, section 6861, et seq.; and new text end

new text begin (3) the State Energy Program authorized under part D of title III of the federal Energy Policy and Conservation Act, United States Code, title 42, section 6321, et seq. new text end

new text begin (d) "Windows" or "energy-efficient windows" means new or replacement windows that are Energy Star qualified under federal guidelines or for windows for nonresidential structures it means windows of reasonably similar energy performance to Energy Star windows. new text end

new text begin Subd. 2. new text end

new text begin Stimulus funding allocation. new text end

new text begin To the extent consistent with the act and other federal law and regulations, stimulus funding must be allocated and expended as provided under this act. new text end

new text begin Subd. 3. new text end

new text begin Administrative costs. new text end

new text begin The commissioner may spend no more than five percent of the funds expended on programs under articles 2 to 4 for administrative costs of the programs. new text end

new text begin Subd. 4. new text end

new text begin Contractors; bidding. new text end

new text begin Contracts funded in whole or in part under articles 2 to 4 must, to the extent practicable, ensure that bidding contractors are qualified and participate in available apprentice and training programs for all work performed. Bidding for contracts must, to the extent practicable, use the process established in Minnesota Statutes, section 16C.16, subdivisions 4, 5, 6, and 7, except that subdivision 12 does not apply. new text end

Sec. 2.

new text begin LEGISLATIVE NOTICE. new text end

new text begin The commissioner shall notify the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance when releasing a request for proposals or awarding a grant greater than $25,000 for a grant program authorized under articles 2 to 4. new text end

ARTICLE 2

ENERGY EFFICIENCY

Section 1.

new text begin WEATHERIZATION. new text end

new text begin Subdivision 1. new text end

new text begin Priority. new text end

new text begin Priority must be given to serving the largest number of new weatherization clients consistent with federal eligibility requirements. new text end

new text begin Subd. 2. new text end

new text begin Rental units. new text end

new text begin The commissioner shall attempt to increase the number of low-income rental units weatherized. new text end

new text begin Subd. 3. new text end

new text begin Shelters. new text end

new text begin A shelter, as defined in Code of Federal Regulations, title 10, section 440.3, is eligible to receive weatherization assistance under this section. new text end

new text begin Subd. 4. new text end

new text begin Income eligibility. new text end

new text begin Income eligibility limits for participants in the weatherization assistance program shall be the highest level allowed under federal law. The commissioner shall in a timely manner take all actions necessary to implement this requirement. new text end

new text begin Subd. 5. new text end

new text begin Solar heat. new text end

new text begin An individual who receives assistance to provide solar heat through the Renewable Energy Equipment Program is eligible for weatherization assistance under this section, provided that the individual meets all other eligibility requirements for receiving weatherization assistance. new text end

new text begin Subd. 6. new text end

new text begin Federal waiver. new text end

new text begin The commissioner shall apply for a waiver or otherwise seek authority from the United States Department of Energy to use funds under this section to weatherize abandoned and foreclosed residential properties acquired and rehabilitated with funds provided through the federal Neighborhood Stabilization Program. new text end

new text begin Subd. 7. new text end

new text begin Payments authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.15, subdivision 3, the commissioner may make payment to a weatherization service provider for allowable and eligible costs incurred for planning, capacity expansion, workforce mobilization, and training activities. Payment may be made for costs incurred on or after the effective date of an amendment to the weatherization service provider's contract that obligates the provider to comply with the requirements of the act. new text end

Sec. 2.

new text begin RESIDENTIAL ENERGY EFFICIENCY PROGRAMS. new text end

new text begin The commissioner shall coordinate with the Minnesota Housing Finance Agency to use stimulus funds in conjunction with the Minnesota Housing Finance Agency's financing programs, including, but not limited to, loans, grants, and rebates, and additional programs the Minnesota Housing Finance Agency or other entities may develop to finance energy efficiency improvements in dwellings, including the purchase and installation of energy efficient windows. Financing programs for which there is market demand must be prioritized. new text end

Sec. 3.

new text begin INNOVATIVE ENERGY RESIDENTIAL EFFICIENCY PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin The commissioner shall make a grant to a city of the first class located in the service area of Minnesota Power for an innovative residential energy efficiency program that must coordinate its activities with the state energy program, local government unit, weatherization program, utility conservation improvement program, and private nonprofit funding sources. Stimulus funds must be matched $1 for every $4 of stimulus funds granted under this section and are available to the extent of the match. The program must include the following elements: new text end

new text begin (1) provision of basic residential energy conservation measures; new text end

new text begin (2) provision of more comprehensive residential energy conservation measures, including extensive retrofits and appliance upgrades; new text end

new text begin (3) a plan to establish a revolving loan fund so that the program is sustainable over time; and new text end

new text begin (4) innovative financing options allowing residents to finance energy efficiency improvements, at least in part, with energy savings. new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin By January 15, 2010, and October 30, 2010, the city must submit a report measuring and assessing the program's effectiveness and energy savings to the commissioner and the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance. new text end

Sec. 4.

new text begin SMALL CITY ENERGY EFFICIENCY GRANT. new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin The commissioner shall make a grant for an innovative residential energy efficiency program in a small rural city with a population under 4,000 located in the service area of Minnesota Power that is currently working with that utility, the county housing and redevelopment authority, and other state and local housing organizations to enhance energy efficiency for residents and businesses. Stimulus funds must be matched $1 for every $4 of stimulus funds granted under this section and are available to the extent of the match. The program must include the following elements: new text end

new text begin (1) provision of basic residential energy conservation measures; new text end

new text begin (2) provision of more comprehensive residential energy conservation measures, including extensive retrofits and appliance upgrades; new text end

new text begin (3) a plan to establish a revolving loan fund so that the program is sustainable over time; and new text end

new text begin (4) innovative financing options allowing residents to finance energy efficiency improvements, at least in part, with energy savings. new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin By January 15, 2010, and October 30, 2010, the city must submit a report measuring and assessing the program's effectiveness and energy savings to the commissioner and the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance. new text end

Sec. 5.

new text begin OUTREACH ACTIVITIES TO INCREASE RESIDENTIAL PARTICIPATION IN ENERGY EFFICIENCY ACTIVITIES. new text end

new text begin In order to maximize the number of new households participating in programs delivering residential energy conservation services under this act, the commissioner shall use stimulus funds to award grants on a competitive basis by September 1, 2009, to one or more organizations that are experienced in conducting outreach activities to partner with nonprofit and community organizations. Outreach activities must include, without limitation, households in low-income areas, small cities, and rural communities, and must reach all regions of the state. The methods used to contact households may include, but are not limited to, direct contact with households, advertising in traditional and nontraditional media, distribution of literature, presence at community events, partnering with community organizations, and other innovative measures. The commissioner may contract to coordinate outreach efforts with a community-based organization with demonstrated regional or statewide capacity, including an organization established under Minnesota Statutes, section 216C.385. new text end

Sec. 6.

new text begin ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS TO LOCAL GOVERNMENTS. new text end

new text begin The commissioner shall award grants to local units of government to enhance energy efficiency and reduce energy use. Energy efficiency and conservation block grant funds may be used for grants for activities including, but not limited to, planning, consultant services, energy audits, implementing energy-efficient building codes and inspection services, and energy efficiency renovations, including window replacement, street lighting, and the installation of renewable energy devices used in public buildings. Grants may only be made to local units of government not receiving direct federal energy efficiency and conservation block grant stimulus funding. new text end

Sec. 7.

new text begin LOCAL GOVERNMENT AND SCHOOL DISTRICT RENOVATIONS. new text end

new text begin (a) The commissioner shall award grants to local governments and school districts to make energy efficiency improvements in existing local government and school district facilities. The use of stimulus funds must be coordinated with the local public building enhanced energy efficiency program under Minnesota Statutes, section 216C.43, or other available financing programs. new text end

new text begin (b) The commissioner shall prioritize lighting upgrades, energy-efficient windows, energy recommissioning, and other cost-effective energy projects that are ready for immediate implementation. new text end

new text begin (c) The commissioner may require a local government or school district, as a condition of receiving a grant, to commit to implement future activities, including but not limited to staff training, that are designed to create additional energy or operating savings to the local government. new text end

new text begin (d) The commissioner shall coordinate with the Department of Education to prioritize school district projects for funding under this section, consistent with the principles of statewide geographic distribution of projects, optimized energy savings, and an improved learning environment for schoolchildren. new text end

Sec. 8.

new text begin STATE GOVERNMENT BUILDING RENOVATIONS. new text end

new text begin (a) The commissioner shall use stimulus funds to renovate state government buildings to enhance energy efficiency. The commissioner and the commissioner of administration shall select, fund, and implement state government building renovation projects using federal stimulus money. Priority must be given to lighting upgrades, window repair and replacement with energy-efficient windows, energy recommissioning, and other cost-effective energy projects that are ready for immediate implementation. new text end

new text begin (b) In addition to other uses, funds may be used to advance public building enhanced energy efficiency program projects under Minnesota Statutes, section 16B.322, and for grants for a portion of costs incurred by state agencies in implementing energy efficiency improvements not part of that program. new text end

new text begin (c) Funds may be used to develop a system and procedures to set energy-reduction goals for state buildings, to automate utility bill data and analysis, to develop a system for reporting monthly energy use relative to these state building energy-reduction goals, and to install individual metering devices for separate buildings. new text end

new text begin (d) The Department of Administration may require a state agency, as a condition of receiving stimulus funds under this section, to commit to implement future energy-savings activities, including but not limited to staff training, that are designed to create additional energy or operating savings to the state agency. new text end

new text begin (e) By January 15, 2011, and annually thereafter, the commissioner, in consultation with the commissioner of administration, must issue a report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over energy policy and finance on the activities and energy savings under this section. new text end

Sec. 9.

Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Financing agreement. new text end

new text begin The commissioner of administration may, in connection with a financing agreement, covenant in a master lease-purchase agreement that the state will abide by the terms and provisions that are customary in net lease or lease-purchase transactions including, but not limited to, covenants providing that the state: new text end

new text begin (1) will maintain insurance as required under the terms of the lease agreement; new text end

new text begin (2) is responsible to the lessor for any public liability or property damage claims or costs related to the selection, use, or maintenance of the leased equipment, to the extent of insurance or self-insurance maintained by the lessee, and for costs and expenses incurred by the lessor as a result of any default by the lessee; new text end

new text begin (3) authorizes the lessor to exercise the rights of a secured party with respect to the equipment subject to the lease in the event of default by the lessee and, in addition, for the present recovery of lease rentals due during the current term of the lease as liquidated damages. new text end

Sec. 10.

Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

new text begin Subd. 4b. new text end

new text begin Master lease-purchase agreements not debt. new text end

new text begin A tax-exempt lease-purchase agreement related to a financing agreement does not constitute or create a general or moral obligation or indebtedness of the state in excess of the money from time to time appropriated or otherwise available for the payment of rent coming due under the lease, and the state has no continuing obligation to appropriate money for the payment of rent or other obligations under the lease. Rent due under a master lease-purchase agreement during a current lease term for which money has been appropriated is a current expense of the state. new text end

Sec. 11.

Minnesota Statutes 2008, section 16B.322, is amended by adding a subdivision to read:

new text begin Subd. 4c. new text end

new text begin Budget offset. new text end

new text begin The commissioner of finance shall reduce the operating budgets of state agencies that use the master lease-purchase program under a financial agreement. The amount of the reduction is the amount sufficient to make the actual master lease payments. new text end

Sec. 12.

new text begin ENERGY TECHNOLOGY TRANSFER CENTER. new text end

new text begin The commissioner shall award a grant to a nonprofit organization with extensive experience in the delivery of energy-efficient programs and technical analysis to develop an energy technology transfer center in this state. new text end

Sec. 13.

new text begin NATIONAL ENERGY EFFICIENCY CENTER. new text end

new text begin (a) The commissioner shall develop a plan for a national energy efficiency center in this state to test energy efficiency equipment and systems to measure actual energy savings performance, to provide an ongoing assessment of energy efficiency best practices, and to coordinate with appropriate public and private entities to disseminate information and provide training on technology developments and best practices. In developing a plan, the commissioner shall collaborate with stakeholders, including but not limited to, the Center for Energy and the Environment, the Minnesota Center for Engineering and Manufacturing Excellence, and the Minnesota Technical Assistance Program at the University of Minnesota. new text end

new text begin (b) The commissioner shall apply for a grant to create a national energy efficiency center in Minnesota if the federal Department of Energy or other entity makes funding available for that purpose. new text end

ARTICLE 3

RENEWABLE ENERGY

Section 1.

new text begin DEFINITIONS. new text end

new text begin For the purposes of articles 3 and 4: new text end

new text begin (1) "renewable energy" or "renewable energy system" means an energy technology that generates electricity or thermal energy from the following sources: new text end

new text begin (i) solar; new text end

new text begin (ii) wind; new text end

new text begin (iii) hydroelectric with a capacity of less than 100 megawatts; new text end

new text begin (iv) hydrothermal; new text end

new text begin (v) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from the resources listed in this item; new text end

new text begin (vi) biomass, which includes, without limitation, landfill gas; rotating woody crops; crop residues; an anaerobic digester system; biomass gasification; the predominantly organic components of wastewater effluent, sludge, or related by-products from publicly owned treatment works, but not including incineration of (A) wastewater sludge or related by-products from publicly owned treatment works; (B) mixed municipal solid waste; or (C) refuse-derived fuel from mixed municipal solid waste; new text end

new text begin (vii) a district energy system fueled primarily by biomass; new text end

new text begin (2) "solar energy" has the meaning given to "qualifying solar energy project" in section 216B.2411, subdivision 2, paragraph (d); new text end

new text begin (3) "solar electric" has the meaning given to "qualifying solar electric project" in section 216B.2411, subdivision 2, paragraph (f), except that the 100-kilowatt peak generating capacity limit does not apply; and new text end

new text begin (4) "solar thermal" has the meaning given to "qualifying solar thermal project" in section 216B.2411, subdivision 2, paragraph (e). new text end

Sec. 2.

new text begin RENEWABLE ELECTRIC GENERATION AND GEOTHERMAL FACILITY REBATES. new text end

new text begin (a) The commissioner shall award rebates to qualifying facilities that generate electricity from renewable energy or provide heating and cooling from a geothermal system and that: new text end

new text begin (1) begin operation after July 1, 2009; and new text end

new text begin (2) provide electricity or heating and cooling to: new text end

new text begin (i) a homeowner's primary residence; or new text end

new text begin (ii) a business with 20 or fewer full-time employees. new text end

new text begin (b) The owner of a qualifying facility may apply to the commissioner for a rebate of the lesser of $10,000 for homeowners or $25,000 for businesses or 35 percent of the cost of the qualifying facility, including installation costs. new text end

new text begin (c) The commissioner shall award rebates only from funds appropriated for that purpose and to the extent of those appropriations. Rebates must be made to eligible applicants in the order of the time of receipt of a complete application. new text end

new text begin (d) For purposes of this section, "qualifying facility" means an electric generation facility with a capacity of less than 40 kilowatts that generates electricity from a renewable energy source or a geothermal system that provides heating and cooling. new text end

Sec. 3.

new text begin SOLAR REBATE PROGRAM. new text end

new text begin The commissioner shall award rebates to homeowners and businesses that install solar energy projects. new text end

Sec. 4.

new text begin SOLAR CITIES PROGRAM. new text end

new text begin The commissioner shall award grants to local units of government for the installation of large and small-scale solar electric or thermal projects, including innovative energy storage technology, in a geographically-concentrated area. The project must leverage funds from the federal Department of Energy to demonstrate the impacts of these projects on the electric grid, and the costs and benefits to ratepayers. The commissioner may develop matching requirements for these solar projects in order to maximize job creation and renewable energy development. new text end

Sec. 5.

new text begin SCHOOL DISTRICT AND LOCAL GOVERNMENT RENEWABLE ENERGY 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 terms defined in this subdivision have the meanings given them. new text end

new text begin (b) "Local government" means a public school district, home rule charter or statutory city, county, regional government, park district, port authority, or town. new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin The commissioner shall award grants to units of local government to finance the purchase and installation of a renewable energy system or a geothermal heating and cooling system under this section. new text end

new text begin Subd. 3. new text end

new text begin Grant proposals. new text end

new text begin The commissioner shall publish in the State Register a request for proposals from local governments for a grant under this section. Within 60 days after the deadline for receipt of proposals, the commissioner shall select grant proposals based on the following criteria: new text end

new text begin (1) the reliability and cost-effectiveness of the renewable technology to be installed under the proposal, including integration of energy storage; new text end

new text begin (2) the extent to which the proposal effectively integrates with the conservation and energy efficiency programs of the energy utilities serving the local government or school district; new text end

new text begin (3) the extent to which the local government or school district has maximized other cost-effective energy efficiency and conservation improvements; new text end

new text begin (4) the total life-cycle energy use and greenhouse gas emissions reductions per dollar of installed cost; new text end

new text begin (5) the geographic distribution of grant recipients throughout the state; new text end

new text begin (6) the percentage of total project cost requested; new text end

new text begin (7) the extent to which the proposal uses parts manufactured or produced in the state in the assembly of a final product; and new text end

new text begin (8) other criteria the commissioner may determine to be necessary and appropriate. new text end

new text begin Subd. 4. new text end

new text begin Educational programming. new text end

new text begin A school district must integrate information about the renewable energy system for which a grant is received under this section in its educational programming. new text end

new text begin Subd. 5. new text end

new text begin Grant terms. new text end

new text begin The maximum grant to a local government under this section may not exceed: new text end

new text begin (1) for solar electric projects greater than or equal to 100 kilowatts rated capacity, the lesser of 40 percent of total project cost or $200,000; new text end

new text begin (2) for solar electric projects less than 100 kilowatts rated capacity, the lesser of 40 percent of total project cost or $100,000; new text end

new text begin (3) for wind projects greater than or equal to 40 kilowatts rated capacity, the lesser of 35 percent of total project cost or $150,000; new text end

new text begin (4) for wind projects less than 40 kilowatts rated capacity, the lesser of 35 percent of total project cost or $25,000; new text end

new text begin (5) for geothermal energy projects, the lesser of 35 percent of total project cost or $100,000; new text end

new text begin (6) for solar thermal projects, the lesser of 50 percent of total project cost or $75,000; or new text end

new text begin (7) for combined heat and power projects and district energy projects, the lesser of 35 percent of total project cost or $200,000. new text end

Sec. 6.

new text begin EMERGING RENEWABLE ENERGY INDUSTRIES 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 terms defined in this subdivision have the meanings given them. new text end

new text begin (b) "Eligible business" means an organization that is engaged in or will engage in the manufacture of renewable energy systems, energy storage systems, or geothermal energy systems for heating and cooling, or components for renewable energy systems, energy storage systems, or geothermal energy systems for heating and cooling. new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin The commissioner shall use stimulus funds under this section to award grants to an eligible business. new text end

new text begin Subd. 3. new text end

new text begin Grant purpose. new text end

new text begin The commissioner may make grants to eligible businesses to assist in the development of renewable energy systems, energy storage systems, geothermal energy systems for heating and cooling, and businesses that manufacture components for these types of energy systems in this state. new text end

new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin An applicant shall prepare and submit to the commissioner a written proposal detailing how the applicant will meet the purpose of the grant program and will meet the criteria listed in subdivision 5. An applicant must submit information that demonstrates the financial viability of the eligible business. new text end

new text begin Subd. 5. new text end

new text begin Selection criteria. new text end

new text begin When awarding grants, the commissioner shall consider whether the applicant's proposal will: new text end

new text begin (1) help establish Minnesota as a center for the manufacturing of renewable energy, energy storage, or geothermal system parts and systems; new text end

new text begin (2) leverage both private funds and other public funds, including federal programs; new text end

new text begin (3) develop renewable energy, energy storage, or geothermal technology supplier activity in this state; new text end

new text begin (4) increase manufacturing that promotes or advances the green economy, as defined in section 116J.437, subdivision 1; and new text end

new text begin (5) create jobs that will contribute to the green economy as defined in section 116J.437, subdivision 1, including jobs in rural areas and areas with high unemployment. new text end

Sec. 7.

new text begin CONVERSION OF FORMER SCHOOL TO RENEWABLE ENERGY BUSINESS CENTER. new text end

new text begin The commissioner shall award a grant to the city of Kennedy to convert a former school building to use wind, solar, and geothermal energy and to house a renewable energy business center. new text end

Sec. 8.

new text begin SOLAR ELECTRIC INSTALLATIONS. new text end

new text begin A contract, grant, loan, or other financial assistance for solar electric installations must to the extent practicable: new text end

new text begin (1) require payment at the prevailing wage rate as defined in Minnesota Statutes, section 177.42; new text end

new text begin (2) require that the installation of all listed electrical equipment is performed by licensed contractors; new text end

new text begin (3) be awarded to the best value bidder as defined in Minnesota Statutes, chapter 16C; and new text end

new text begin (4) require that the bid performance criteria must include, but are not limited to: new text end

new text begin (i) the vendor's or contractor's primary place of business be located within the state; new text end

new text begin (ii) a description of the vendor's or contractor's experience installing solar systems and the quality of those installations; and new text end

new text begin (iii) the possession by the vendor's or contractor's key personnel of an installer's certification from a nationally recognized solar certification body. new text end

ARTICLE 4

COMMERCIAL AND INDUSTRIAL SECTOR ENERGY PROJECTS

Section 1.

new text begin GRANTS TO COMMERCIAL AND INDUSTRIAL FACILITIES. new text end

new text begin (a) The commissioner shall award a grant to a port authority located in the electric service area of the electric utility with the largest number of commercial and industrial customers in this state for a program to provide for the design, financing, and installation of energy efficiency improvements and renewable energy systems in commercial facilities, industrial facilities, and facilities owned by a nonprofit organized under section 501(c)(3) of the Internal Revenue Code. Program financing must include a revolving loan fund component. new text end

new text begin (b) Grant recipients may enter into agreements necessary to develop and implement a program under this section. A grant recipient may use up to two percent of the grant award for administrative costs of the energy project. new text end

new text begin (c) A utility participating in projects receiving a grant under this section is entitled to claim the project's energy savings toward its energy savings goal under Minnesota Statutes, section 216B.241, subdivision 1c. new text end

Sec. 2.

new text begin ENERGY PROGRAMS IN COMMERCIAL AND INDUSTRIAL BUILDINGS. new text end

new text begin (a) The commissioner shall award grants to economic development authorities or to owners of commercial and industrial facilities and facilities owned by a nonprofit organized under section 501(c)(3) of the Internal Revenue Code for the purpose of: new text end

new text begin (1) installing energy efficiency improvements; new text end

new text begin (2) installing devices that use renewable energy sources to generate electricity or to heat or cool a building; or new text end

new text begin (3) a geothermal system for heating and cooling. new text end

new text begin (b) To be eligible to receive a grant, a project funded under this section must begin operation after July 1, 2009. new text end

new text begin (c) The commissioner shall provide forms for grant applications. new text end

new text begin (d) The commissioner shall make a grant to a county economic development authority for development of a biomass energy facility, which has completed an economic and technical feasibility study, including a market potential and cellulosic feedstock analysis. The county in which the facility will be located must include an investor-owned utility, municipal utility, and cooperative electric association, and it must have adopted an essential services and transmission services ordinance as of May 15, 2009. new text end

new text begin (e) Grants may also be made to improve the energy efficiency of facilities to displace fossil fuel energy inputs with energy derived from renewable resources via anaerobic digestion, biomass gasification, or other technologies, for combined heat and power or district energy system projects; or for projects using hydrothermal or geothermal energy in an integrated system for cooling, heating, and generating electricity. Grants may not be made under this paragraph for projects involving the combustion of mixed municipal solid waste or refuse-derived fuel from mixed municipal solid waste. new text end

new text begin (f) The maximum grant award under this section is $500,000. new text end

new text begin (g) When awarding grants under this section the commissioner shall consider: new text end

new text begin (1) job retention and creation; new text end

new text begin (2) improved energy efficiency and increased renewable energy production capacity; new text end

new text begin (3) coordination with and leveraging of other resources to increase the total benefits derived from stimulus funding; new text end

new text begin (4) timely implementation of funded activities; new text end

new text begin (5) long-term sustainability of benefits derived from stimulus funds; new text end

new text begin (6) geographic distribution across the state; new text end

new text begin (7) compliance with the disadvantaged business enterprise requirements in Minnesota Statutes, section 16C.16, subdivisions 4, 5, 6, and 7, except that subdivision 12 does not apply; and new text end

new text begin (8) ensuring that projects are cost effective and maximize energy savings per dollar of stimulus funding expended. new text end

ARTICLE 5

MISCELLANEOUS

Section 1.

new text begin TRAINING AND WORKFORCE DEVELOPMENT. new text end

new text begin Subdivision 1. new text end

new text begin Training plan and procedures. new text end

new text begin (a) The commissioner, in conjunction with the Department of Employment and Economic Development, the Office of Higher Education, and Minnesota State Colleges and Universities shall develop and implement a plan and procedures to: new text end

new text begin (1) train energy professionals needed to implement the energy programs described in articles 2 to 4, including but not limited to energy auditors, energy managers, and building operators; new text end

new text begin (2) coordinate, oversee, and monitor the training and certification of energy professionals; new text end

new text begin (3) allocate stimulus funding for the purposes of clauses (1) and (2) and to training providers; and new text end

new text begin (4) provide energy code compliance and enforcement training necessary to comply with section 410 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5. new text end

new text begin (b) Training strategies must be designed to meet the wide range of facilities managers and building sizes and types, and must protect the occupational health and safety of workers employed on these energy projects. Technical skills training must include insulation, air sealing, and mechanical work. Training may include an on-the-job component where the trainee travels to job sites with trained crews. new text end

new text begin (c) The plan must include procedures to: new text end

new text begin (1) train individuals already employed in implementing energy programs; new text end

new text begin (2) recruit individuals to be trained to perform work in energy projects using stimulus funding who are unemployed, especially targeting communities experiencing disproportionately high rates of unemployment, including, but not limited to, low-income, youth, rural, or tribal communities and individuals in construction trades and crafts; new text end

new text begin (3) ensure that the full capacity of current training providers is utilized, including, but not limited to, opportunities industrialization centers, skilled trades labor unions, tribal colleges or nonprofits working in tribal communities, community action partnerships, utility companies, higher education institutions, and nonprofit organizations with demonstrated expertise in energy efficiency; new text end

new text begin (4) publicize job and contract opportunities through cost-effective dissemination via traditional and nontraditional media outlets, including, but not limited to, public service announcements and radio advertisements; and new text end

new text begin (5) disseminate information about contract and employment opportunities generated by the programs. Particular effort must be made to publicize employment, job training, home energy auditing, weatherization, outreach, and other opportunities to community organizations, nongovernmental organizations, and media outlets that target disadvantaged groups, including, but not limited to, low-income, rural, tribal communities, and communities of color. new text end

new text begin Subd. 2. new text end

new text begin Training access and affordability. new text end

new text begin (a) Unless prohibited by federal law or rule, and notwithstanding any other training funds available or expended for energy programs, the commissioner shall ensure access to and affordability of training for low-income persons who otherwise would be unable to afford the training, by providing funding to: new text end

new text begin (1) prepare low-income persons for residential weatherization jobs; and new text end

new text begin (2) support job training opportunities for low-income persons in residential and commercial energy efficiency and renewable energy-related trades. new text end

new text begin (b) Funds expended under this subdivision may not exceed the amount necessary to train persons for the total number of green jobs created. The Department of Commerce shall work with the Department of Employment and Economic Development to maximize receipt of federal stimulus funding available for training and workforce development through the Workforce Investment Act. new text end

new text begin (c) Training funds for residential weatherization jobs must be provided to weatherization service providers to partner with apprenticeship or similar on-the-job training programs and existing training providers, including, but not limited to, state colleges, opportunities industrialization centers, skilled trades labor unions, and nonprofit organizations with historic expertise in energy efficiency. new text end

new text begin (d) Training funds to support residential and commercial energy efficiency and renewable energy-related trades must be distributed through a competitive application process. new text end

new text begin (e) The expenditure of funds under this subdivision must be consistent with performance goals, timeframes, and all other requirements under federal and state law governing the expenditure of federal stimulus money. new text end

Sec. 2.

new text begin ACCOUNTABILITY AND TRANSPARENCY REPORTING. new text end

new text begin The commissioner, after compiling information supplied by the commissioners of administration, education, and employment and economic development, and the Office of Higher Education, shall report on the progress of the programs funded by this act to the house of representatives and senate committees with jurisdiction over energy finance and workforce development policy by September 1, 2009, January 15, 2010, April 1, 2010, and September 1, 2010. The report must include a complete accounting of all federal stimulus money spent on the programs funded to the extent allowable by federal law, including, but not limited to: new text end

new text begin (1) the specific projects funded, including the building owner and project manager, and, for nonresidential projects only, the project location; new text end

new text begin (2) for weatherization projects, the number of units weatherized, including number of rental units weatherized, energy usage information, income data, and type, cost, and funding source of the weatherization measure installed; new text end

new text begin (3) the number of jobs retained or created by each project, including data on hiring from communities experiencing disproportionately high rates of unemployment, including, but not limited to, low-income, rural, tribal communities, and communities of color; new text end

new text begin (4) the total calculated and actual energy savings for each project; new text end

new text begin (5) the remaining balances in each stimulus account; new text end

new text begin (6) the nonstimulus money leveraged by stimulus money for each project; new text end

new text begin (7) the training courses provided, including the location and provider of courses offered, the funding source for each training course, and the total number of trainees; and new text end

new text begin (8) compliance with state prevailing wage, veterans, and disadvantaged business enterprise requirements. new text end

new text begin The reports must be made available to the public on the Office of Energy Security Web site. new text end

Sec. 3.

new text begin COMPETITIVE ENERGY ACTIVITIES. new text end

new text begin (a) The commissioner shall coordinate state and local government efforts to obtain competitive grants for energy-related purposes authorized by the American Recovery and Reinvestment Act of 2009. The commissioner shall consult with affected public or private entities, including utilities, to identify grant opportunities and develop timely grant applications to take advantage of those opportunities. The commissioner shall assess and publicize grant opportunities, assist state and local government entities to prepare grant applications, and provide other assistance the commissioner determines to be appropriate. new text end

new text begin (b) The commissioner shall provide timely information on grant opportunities through the Minnesota Energy Information Center telephone hotline and Web site to assist the public and local units of government in accessing applications and information regarding competitive grants under this act. new text end

ARTICLE 6

APPROPRIATIONS

Section 1.

new text begin WEATHERIZATION ASSISTANCE PROGRAM APPROPRIATION. new text end

new text begin Of the funds available to the state of Minnesota from the federal stimulus funding for the weatherization assistance program under the American Recovery and Reinvestment Act of 2009, Public Law 111-5, $131,937,411 is appropriated to the commissioner of commerce. The funds must be administered consistent with the requirements in article 2, section 1. Of this amount, $250,000 is for participation outreach activities in article 2, section 5; and $1,000,000 is for training and workforce development consistent with article 5, section 1, subdivision 2. new text end

Sec. 2.

new text begin ENERGY EFFICIENCY AND CONSERVATION BLOCK PROGRAM APPROPRIATION. new text end

new text begin Of the funds available to the state of Minnesota from the federal stimulus funding for the Energy Efficiency and Conservation Block Grant Program under the American Recovery and Reinvestment Act of 2009, Public Law 111-5, $10,644,100 is appropriated to the commissioner of commerce. The appropriation must be distributed as follows: new text end

new text begin (1) $6,386,460 is for energy efficiency grants to local government in article 2, section 6; and new text end

new text begin (2) $4,257,640 is for energy efficiency grants to local government and school district buildings consistent with the requirements in article 2, section 7. new text end

Sec. 3.

new text begin STATE ENERGY PROGRAM APPROPRIATION. new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin Of the funds available to the state of Minnesota from the federal stimulus funding for the State Energy Program under the American Recovery and Reinvestment Act of 2009, Public Law 111-5, $54,172,000 is appropriated to the commissioner of commerce. Of this amount: new text end

new text begin (1)$8,750,000 is for energy efficiency projects in local government and school district buildings consistent with the requirements in article 2, section 7; new text end

new text begin (2) $6,922,000 is for energy efficiency projects in state government buildings consistent with the requirements of article 2, section 8; new text end

new text begin (3) $7,900,000 is for residential energy efficiency programs consistent with the requirements in article 2, section 2. Of this amount, $250,000 is for participation outreach activities in article 2, section 5; new text end

new text begin (4) $1,600,000 is for innovative energy residential efficiency programs consistent with the requirements in article 2, sections 3 and 4. Of this amount, $1,500,000 is for a program for a large city, and $100,000 is for a program for a small city; new text end

new text begin (5) $1,000,000 is for training and workforce development consistent with article 5, section 1, subdivision 2; new text end

new text begin (6) $1,500,000 is for training and workforce development consistent with article 5, section 1, subdivision 1; new text end

new text begin (7) $5,000,000 is for renewable and geothermal rebates consistent with the requirements of article 3, sections 2 and 3. Of this amount, at least $3,000,000 is for solar rebates in article 3, section 3; new text end

new text begin (8) $3,000,000 is for a grant to local units of government for solar energy projects consistent with the requirements of article 3, section 4; new text end

new text begin (9) $6,500,000 is for grants to install renewable energy in local government and school buildings consistent with the requirements of article 3, section 5; new text end

new text begin (10) $2,000,000 is for emerging renewable energy industries consistent with the requirements of article 3, section 6; new text end

new text begin (11) $5,000,000 is for a grant to a port authority for energy efficiency and renewable energy in commercial and industrial buildings consistent with article 4, section 1; new text end

new text begin (12) $4,500,000 is for commercial and industrial building energy grants for renewables and efficiency consistent with the requirements of article 4, section 2. Of this amount, $150,000 is for a grant under article 4, section 2, paragraph (d); and new text end

new text begin (13) $500,000 is for the energy technology transfer center in article 2, section 12. new text end

new text begin Subd. 2. new text end

new text begin Reallocation process. new text end

new text begin (a) The commissioner may reallocate funds under subdivision 1 if the United States Department of Energy does not approve a program for which funds are allocated or if the commissioner determines that: new text end

new text begin (1) there is insufficient demand to effectively expend all funds allocated to a program; new text end

new text begin (2) the funds as allocated are unlikely to result in achievement of the goals of the funding; or new text end

new text begin (3) the funds as allocated are unlikely to attain results that exceed the minimum performance requirements established by the federal Department of Energy. new text end

new text begin (b) Before reallocating funds, the commissioner shall: new text end

new text begin (1) provide public notice of intent to reallocate funds; new text end

new text begin (2) accept public comment on a proposed reallocation for no fewer than 15 business days; and new text end

new text begin (3) submit a report on the proposed reallocation to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance. The report must include the reason for reallocation, a summary of activities and expenditures to market and stimulate demand for the program whose funds are to be reallocated, the amount to be reallocated, the program to which funds will be reallocated, and the public comments submitted. new text end

new text begin (c) The commissioner may reallocate funds 15 business days after submission of the report required under paragraph (b), clause (3). new text end

ARTICLE 7

EFFECTIVE DATE

Section 1.

new text begin EFFECTIVE DATE. new text end

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

Presented to the governor May 20, 2009

Signed by the governor May 21, 2009, 5:38 p.m.