1.1 	A bill for an act
1.2 	relating to energy; expanding small city energy efficiency grant program to 
1.3 	include commercial buildings;amending Laws 2009, chapter 138, article 2, 
1.4 	section 4.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Laws 2009, chapter 138, article 2, section 4, is amended to read:
1.7 	Sec. 4. SMALL CITY ENERGY EFFICIENCY GRANT.
 1.8 		Subdivision 1.Program. The commissioner shall make a grant for an innovative 
1.9 	residential and commercial energy efficiency program in a small rural city with a 
1.10 	population under 4,000 located in the service area of Minnesota Power that is currently 
1.11 	working with that utility, the county housing and redevelopment authority, and other 
1.12 	state and local housing organizations to enhance energy efficiency for residents and 
1.13 	businesses. Stimulus funds must be matched $1 for every $4 of stimulus funds granted 
1.14 	under this section and are available to the extent of the match. The program must include 
1.15 	the following elements:
1.16 	(1) provision of basic residential and commercial energy conservation measures;
1.17 	(2) provision of more comprehensive residential and commercial energy 
1.18 	conservation measures, including extensive retrofits and appliance upgrades; and
1.19 	(3) a plan to establish a revolving loan fund so that the program is sustainable over 
1.20 	time; and
1.21 	(4) innovative financing options allowing residents and businesses to finance energy 
1.22 	efficiency improvements, at least in part, with energy savings.
1.23 		Subd. 2.Report. By January 15, 2010, and October 30, 2010, the city must submit 
1.24 	a report measuring and assessing the program's effectiveness and energy savings to the 
2.1 	commissioner and the chairs and ranking minority members of the senate and house of 
2.2 	representatives committees with primary jurisdiction over energy policy and finance.

2.3 	EFFECTIVE DATE. This section is effective the day following final enactment.