1.1 	A bill for an act
1.2 	relating to local government; city of South St. Paul, appropriating money 
1.3 	for demonstration program for commercial and industrial energy efficiency 
1.4 	improvements.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. GRANT OF FEDERAL STIMULUS FUNDS TO SOUTH ST. PAUL 
1.7 	PORT AUTHORITY.
 1.8 	$....... is appropriated to the commissioner of finance from the federal stimulus 
1.9 	funds received by the state for a grant to the port authority of the city of South St. Paul 
1.10 	for its use in developing and implementing a demonstration program to provide for the 
1.11 	design, financing, and installation of energy efficiency improvements in commercial 
1.12 	and industrial facilities.
1.13 	The port authority may use grant funds for all costs necessary to design, develop, 
1.14 	and implement a commercial-industrial program to fund energy efficiency improvements 
1.15 	including, but not limited to, the costs of administration, marketing, and financing related 
1.16 	due-diligence analyses, origination and servicing, training, measurement, and verification. 
1.17 	The port authority shall use grant funds for loans, guarantees, bond financing, shared 
1.18 	savings agreements, grants, or other financing arrangements to pay all costs necessary for 
1.19 	the design, procurement, construction, and installation of energy efficiency improvements.
1.20 	For purposes of this grant, an "energy efficiency improvement" is any measure 
1.21 	that is expected to result in reduced use or more efficient use of electricity, natural gas, 
1.22 	or other fuels.
1.23 	Priority must be given to energy efficiency improvements that achieve the following 
1.24 	objectives to the greatest extent: reduction in total energy use and energy costs of 
2.1 	facilities; improvement in the economic competitiveness of facilities; and creation or 
2.2 	retention of jobs at improved facilities. In addition, a commercial-industrial energy 
2.3 	efficiency improvement program must be designed and implemented to generate enough 
2.4 	demand for energy-related products and services, including engineering, skilled trades, 
2.5 	and construction services, that it contributes significantly to business and job creation 
2.6 	objectives.
2.7 	Notwithstanding any limitations contained in Minnesota Statutes, chapter 469, 
2.8 	the port authority may take all actions, and enter into all agreements, necessary to 
2.9 	design, develop, and implement a commercial-industrial program to fund energy 
2.10 	efficiency improvements within the Minnesota service territory of a utility that provides 
2.11 	natural gas or electric service to customers within the city of South St. Paul; and this 
2.12 	authorization includes all actions necessary to design, submit for approval, and implement 
2.13 	a conservation improvement project under a utility's conservation improvement program 
2.14 	pursuant to Minnesota Statutes, section 216B.241. A utility participating through its 
2.15 	conservation improvement program is entitled to claim the energy savings towards its 
2.16 	energy-savings goal established in Minnesota Statutes, section 216B.241.
2.17 	As a prerequisite for this grant, the port authority must submit for approval to the 
2.18 	commissioner of commerce a proposal for inclusion of a commercial-industrial program 
2.19 	to fund energy efficiency improvements in a utility's conservation improvement program 
2.20 	as an indirect-impact conservation improvement project for the years 2009 through 2012, 
2.21 	the purpose of which is to maximize the energy savings and overall cost-effectiveness 
2.22 	of energy efficiency improvements in commercial and industrial facilities that result 
2.23 	from the coordinated use of grant funds provided by this appropriation and the utility's 
2.24 	conservation improvement program funds. Grant funds provided by this appropriation 
2.25 	must be made available to the port authority only upon final approval of this conservation 
2.26 	improvement project.
2.27 	The port authority shall provide all reports and information required by the director 
2.28 	of the Office of Energy Security in order to provide information needed to review the port 
2.29 	authority's use of grant funds under guidelines established by the director.