1.1                          A bill for an act 
  1.2             relating to energy; providing for energy conversion 
  1.3             grants to schools.  
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [ENERGY CONVERSION GRANTS FOR SCHOOLS.] 
  1.6      Subdivision 1.  [APPLICATIONS.] (a) The commissioner of 
  1.7   commerce shall solicit applications from schools around the 
  1.8   state for proposals to reduce a school's energy consumption and 
  1.9   to generate a portion of that school's remaining energy needs by 
  1.10  means of on-site, distributed renewable generation.  The 
  1.11  application should provide detail with regard to both the energy 
  1.12  conservation and renewable energy components of the school's 
  1.13  proposal, including evidence of technical feasibility and 
  1.14  cost-effectiveness.  Applications should be received by 
  1.15  September 1, 2003. 
  1.16     (b) The department of commerce may provide technical 
  1.17  assistance to a school as resources allow and the commissioner 
  1.18  shall encourage energy utilities that serve an individual school 
  1.19  to provide assistance in developing the school's proposal. 
  1.20     Subd. 2.  [APPROVAL.] (a) By December 15, 2003, the 
  1.21  commissioner shall grant the applications of as many as ten 
  1.22  schools that the commissioner finds technically feasible, 
  1.23  cost-effective, and innovative in combining energy conservation 
  1.24  and renewable generation.  The commissioner shall attempt to 
  2.1   ensure geographic diversity among the approved applications to 
  2.2   the extent that suitable proposals are received to provide for 
  2.3   geographic diversity.  Preference may be given to a project that 
  2.4   is proposed in collaboration with the energy utilities that 
  2.5   serve the school, local community organizations, local 
  2.6   educational or commercial institutions, and local governments, 
  2.7   and for which significant financial support is demonstrated in 
  2.8   the form of matching grants, in-kind assistance, or other 
  2.9   support.  The commissioner may approve funding of approved 
  2.10  projects for up to three years under paragraphs (b) and (c). 
  2.11     (b) The energy conservation component of an approved 
  2.12  application must be funded out of the required conservation 
  2.13  spending under Minnesota Statutes 2002, section 216B.241, of the 
  2.14  energy utilities that serve the school.  If the school receives 
  2.15  both electric and natural gas services, the commissioner shall 
  2.16  allocate the conservation spending between the energy utilities 
  2.17  that provide those services. 
  2.18     (c) The renewable generation component of an approved 
  2.19  application must be funded out of the renewable development fund 
  2.20  in Minnesota Statutes 2002, section 116C.779, notwithstanding 
  2.21  paragraph (b) of that section. 
  2.22     Subd. 3.  [REPORT.] The commissioner shall report to the 
  2.23  legislature on the status of approved projects by August 1, 
  2.24  2004, and August 1, 2005. 
  2.25     Sec. 2.  [EFFECTIVE DATE.] 
  2.26     Section 1 is effective on the day following final enactment.