04/05/21 11:55 am ​ HOUSE RESEARCH BE/JF H2110DE4​ 1.1 .................... moves to amend H.F. No. 2110 as follows:​ 1.2 Delete everything after the enacting clause and insert:​ 1.3 "ARTICLE 1​ 1.4 ENERGY CONSERVATION AND STORAGE​ 1.5 Section 1. Minnesota Statutes 2020, section 16B.86, is amended to read:​ 1.6 16B.86 PRODUCTIVITY STATE BUILDING ENERGY CONSERVATION​ 1.7 IMPROVEMENT REVOLVING LOAN ACCOUNT.​ 1.8 Subdivision 1. Definitions. (a) For purposes of this section and section 16B.87, the​ 1.9 following terms have the meanings given them.​ 1.10 (b) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,​ 1.11 paragraph (d).​ 1.12 (c) "Energy conservation improvement" has the meaning given in section 216B.241,​ 1.13 subdivision 1, paragraph (e).​ 1.14 (d) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,​ 1.15 paragraph (f).​ 1.16 (e) "Project" means the energy conservation improvements financed by a loan made​ 1.17 under this section.​ 1.18 (f) "State building" means an existing building owned by the state of Minnesota.​ 1.19 Subd. 2. Account established. The productivity state building energy conservation​ 1.20 improvement revolving loan account is established as a special separate account in the state​ 1.21 treasury. The commissioner shall manage the account and shall credit to the account​ 1.22 investment income, repayments of principal and interest, and any other earnings arising​ 1.23 from assets of the account. Money in the account is appropriated to the commissioner of​ Article 1 Section 1.​ 1​ 04/05/21 11:55 am ​ HOUSE RESEARCH BE/JF H2110DE4​ 2.1 administration to make loans to finance agency projects that will result in either reduced​ 2.2 operating costs or increased revenues, or both, for a state agency state agencies to implement​ 2.3 energy conservation and energy efficiency improvements in state buildings under section​ 2.4 16B.87.​ 2.5 EFFECTIVE DATE. This section is effective the day following final enactment.​ 2.6 Sec. 2. Minnesota Statutes 2020, section 16B.87, is amended to read:​ 2.7 16B.87 AWARD AND REPAYMENT OF PRODUCTIVITY STATE BUILDING​ 2.8 ENERGY IMPROVEMENT CONSERVATION LOANS.​ 2.9 Subdivision 1. Committee. The Productivity State Building Energy Conservation​ 2.10 Improvement Loan Committee consists of the commissioners of administration, management​ 2.11 and budget, and revenue commerce. The commissioner of administration serves as chair of​ 2.12 the committee. The members serve without compensation or reimbursement for expenses.​ 2.13 Subd. 2. Award and terms of loans. (a) An agency shall apply for a loan on a form​ 2.14 provided developed by the commissioner of administration. that requires an applicant to​ 2.15 submit the following information:​ 2.16 (1) a description of the proposed project, including existing equipment, structural​ 2.17 elements, operating characteristics, and other conditions affecting energy use that the energy​ 2.18 conservation improvements financed by the loan modify or replace;​ 2.19 (2) the total estimated project cost and the loan amount sought;​ 2.20 (3) a detailed project budget;​ 2.21 (4) projections of the proposed project's expected energy and monetary savings;​ 2.22 (5) information demonstrating the agency's ability to repay the loan;​ 2.23 (6) a description of the energy conservation programs offered by the utility providing​ 2.24 service to the state building from which the applicant will seek additional funding for the​ 2.25 project; and​ 2.26 (7) any additional information requested by the commissioner.​ 2.27 (b) The committee shall review applications for loans and shall award a loan based upon​ 2.28 criteria adopted by the committee. The committee shall determine the amount, interest, and​ 2.29 other terms of the loan. The time for repayment of a loan may not exceed five years. A loan​ 2.30 made under this section must:​ 2.31 (1) be at or below the market rate of interest, including a zero interest loan; and​ Article 1 Sec. 2.​ 2​ 04/05/21 11:55 am ​ HOUSE RESEARCH BE/JF H2110DE4​ 3.1 (2) have a term no longer than seven years.​ 3.2 (c) In making awards, the committee shall give preference to:​ 3.3 (1) applicants that have sought funding for the project through energy conservation​ 3.4 projects offered by the utility serving the state building that is the subject of the application;​ 3.5 and​ 3.6 (2) to the extent feasible, applications for state buildings located within the electric retail​ 3.7 service area of the utility that is subject to section 116C.779.​ 3.8 Subd. 3. Repayment. An agency receiving a loan under this section shall repay the loan​ 3.9 according to the terms of the loan agreement. The principal and interest must be paid to the​ 3.10 commissioner of administration, who shall deposit it in the productivity state building energy​ 3.11 conservation improvement revolving loan fund account. Payments of loan principal and​ 3.12 interest must begin no later than one year after the project is completed.​ 3.13 Sec. 3. [216B.1698] INNOVATIVE CLEAN TECHNOLOGIES.​ 3.14 (a) For purposes of this section, "innovative clean technology" means advanced energy​ 3.15 technology that is:​ 3.16 (1) environmentally superior to technologies currently in use;​ 3.17 (2) expected to offer energy-related, environmental, or economic benefits; and​ 3.18 (3) not widely deployed by the utility industry.​ 3.19 (b) A public utility may petition the commission for authorization to invest in a project​ 3.20 or projects to deploy one or more innovative clean technologies to further the development,​ 3.21 commercialization, and deployment of innovative clean technologies that benefit the public​ 3.22 utility's customers.​ 3.23 (c) The commission may approve a petition under paragraph (b) if it finds:​ 3.24 (1) the technologies proposed are innovative clean technologies;​ 3.25 (2) the investment in an innovative clean energy technology is likely to provide benefits​ 3.26 to customers that exceed the technology's cost;​ 3.27 (3) the public utility is meeting its energy conservation goals under section 216B.241;​ 3.28 and​ 3.29 (4) the project complies with the spending limits under paragraph (d).​ Article 1 Sec. 3.​ 3​ 04/05/21 11:55 am ​ HOUSE RESEARCH BE/JF H2110DE4​ 4.1 (d) Over any three consecutive years, a public utility must not spend more on innovative​ 4.2 clean technologies under this section than:​ 4.3 (1) for a public utility providing service to 200,000 or more retail Minnesota customers,​ 4.4 $6,000,000; or​ 4.5 (2) for a public utility providing service to fewer than 200,000 retail Minnesota customers,​ 4.6 $3,000,000.​ 4.7 (e) The commission may authorize a public utility to file a rate schedule containing​ 4.8 provisions that automatically adjust charges for public utility service in direct relation to​ 4.9 changes in prudent costs incurred by a public utility under this section, up to the amounts​ 4.10 allowed under paragraph (d).To the extent the public utility investment under this section​ 4.11 is for a capital asset, the utility may request that the asset be included in the utility's rate​ 4.12 base.​ 4.13 EFFECTIVE DATE. This section is effective the day following final enactment.​ 4.14 Sec. 4. Minnesota Statutes 2020, section 216B.2401, is amended to read:​ 4.15 216B.2401 ENERGY SAVINGS AND OPTIMIZATION POLICY GOAL.​ 4.16 (a) The legislature finds that energy savings are an energy resource, and that cost-effective​ 4.17 energy savings are preferred over all other energy resources. In addition, the legislature​ 4.18 finds that optimizing the timing and method used by energy consumers to manage energy​ 4.19 use provides significant benefits to the consumers and to the utility system as a whole. The​ 4.20 legislature further finds that cost-effective energy savings and load management programs​ 4.21 should be procured systematically and aggressively in order to reduce utility costs for​ 4.22 businesses and residents, improve the competitiveness and profitability of businesses, create​ 4.23 more energy-related jobs, reduce the economic burden of fuel imports, and reduce pollution​ 4.24 and emissions that cause climate change. Therefore, it is the energy policy of the state of​ 4.25 Minnesota to achieve annual energy savings equal equivalent to at least 1.5 2.5 percent of​ 4.26 annual retail energy sales of electricity and natural gas through cost-effective energy​ 4.27 conservation improvement programs and rate design, energy efficiency achieved by energy​ 4.28 consumers without direct utility involvement, energy codes and appliance standards, programs​ 4.29 designed to transform the market or change consumer behavior, energy savings resulting​ 4.30 from efficiency improvements to the utility infrastructure and system, and other efforts to​ 4.31 promote energy efficiency and energy conservation. multiple measures, including but not​ 4.32 limited to:​ Article 1 Sec. 4.​ 4​ 04/05/21 11:55 am ​ HOUSE RESEARCH BE/JF H2110DE4​ 5.1 (1) cost-effective energy conservation improvement programs and efficient fuel-switching​ 5.2 utility programs under sections 216B.2402 to 216B.241;​ 5.3 (2) rate design;​ 5.4 (3) energy efficiency achieved by energy consumers without direct utility involvement;​ 5.5 (4) advancements in statewide energy codes and cost-effective appliance and equipment​ 5.6 standards;​ 5.7 (5) programs designed to transform the market or change consumer behavior;​ 5.8 (6) energy savings resulting from efficiency improvements to the utility infrastructure​ 5.9 and system; and​ 5.10 (7) other