Minnesota 2023-2024 Regular Session

Minnesota House Bill HF826 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to prevailing wages; requiring prevailing wage agreements for projects
3	3		1.3 funded in whole or in part with renewable development account funds; amending
4	4		1.4 Minnesota Statutes 2022, section 116C.779, subdivision 1.
5	5		1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6		1.6 Section 1. Minnesota Statutes 2022, section 116C.779, subdivision 1, is amended to read:
7	7		1.7 Subdivision 1.Renewable development account.(a) The renewable development
8	8		1.8account is established as a separate account in the special revenue fund in the state treasury.
9	9		1.9Appropriations and transfers to the account shall be credited to the account. Earnings, such
10	10		1.10as interest, dividends, and any other earnings arising from assets of the account, shall be
11	11		1.11credited to the account. Funds remaining in the account at the end of a fiscal year are not
12	12		1.12canceled to the general fund but remain in the account until expended. The account shall
13	13		1.13be administered by the commissioner of management and budget as provided under this
14	14		1.14section.
15	15		1.15 (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
16	16		1.16plant must transfer all funds in the renewable development account previously established
17	17		1.17under this subdivision and managed by the public utility to the renewable development
18	18		1.18account established in paragraph (a). Funds awarded to grantees in previous grant cycles
19	19		1.19that have not yet been expended and unencumbered funds required to be paid in calendar
20	20		1.20year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
21	21		1.21to transfer under this paragraph.
22	22		1.22 (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
23	23		1.23each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
24	24		1Section 1.
25		-	REVISOR SS H0826-2HF826 ~~SECOND~~ ENGROSSMENT
	25	+	REVISOR SS H0826-1HF826 FIRST ENGROSSMENT
26	26		State of Minnesota
27	27		This Document can be made available
28	28		in alternative formats upon request
29	29		HOUSE OF REPRESENTATIVES
30	30		H. F. No. 826
31	31		NINETY-THIRD SESSION
32	32		Authored by Newton, Garofalo, Lislegard, Stephenson, West and others01/25/2023
33	33		The bill was read for the first time and referred to the Committee on Climate and Energy Finance and Policy
34		-	Adoption of Report: Amended and re-referred to the Committee on Labor and Industry Finance and Policy02/13/2023
35		-	Adoption of Report: Amended and re-referred to the Committee on Ways and Means03/02/2023 2.1plant must transfer to the renewable development account $500,000 each year for each dry
	34	+	Adoption of Report: Amended and re-referred to the Committee on Labor and Industry Finance and Policy02/13/2023 2.1plant must transfer to the renewable development account $500,000 each year for each dry
36	35		2.2cask containing spent fuel that is located at the Prairie Island power plant for each year the
37	36		2.3plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
38	37		2.4the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
39	38		2.5is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
40	39		2.6part of a year.
41	40		2.7 (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
42	41		2.8each January 15 thereafter, the public utility that owns the Monticello nuclear generating
43	42		2.9plant must transfer to the renewable development account $350,000 each year for each dry
44	43		2.10cask containing spent fuel that is located at the Monticello nuclear power plant for each
45	44		2.11year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
46	45		2.12by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
47	46		2.13waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
48	47		2.14any part of a year.
49	48		2.15 (e) Each year, the public utility shall withhold from the funds transferred to the renewable
50	49		2.16development account under paragraphs (c) and (d) the amount necessary to pay its obligations
51	50		2.17under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
52	51		2.18 (f) If the commission approves a new or amended power purchase agreement, the
53	52		2.19termination of a power purchase agreement, or the purchase and closure of a facility under
54	53		2.20section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
55	54		2.21the public utility subject to this section shall enter into a contract with the city in which the
56	55		2.22poultry litter plant is located to provide grants to the city for the purposes of economic
57	56		2.23development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
58	57		2.24fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
59	58		2.25by the public utility from funds withheld from the transfer to the renewable development
60	59		2.26account, as provided in paragraphs (b) and (e).
61	60		2.27 (g) If the commission approves a new or amended power purchase agreement, or the
62	61		2.28termination of a power purchase agreement under section 216B.2424, subdivision 9, with
63	62		2.29an entity owned or controlled, directly or indirectly, by two municipal utilities located north
64	63		2.30of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
65	64		2.31section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
66	65		2.32grant contract with such entity to provide $6,800,000 per year for five years, commencing
67	66		2.3330 days after the commission approves the new or amended power purchase agreement, or
68	67		2.34the termination of the power purchase agreement, and on each June 1 thereafter through
69	68		2.352021, to assist the transition required by the new, amended, or terminated power purchase
70	69		2Section 1.
71		-	REVISOR SS H0826-2HF826 ~~SECOND~~ ENGROSSMENT 3.1agreement. The grant shall be paid by the public utility from funds withheld from the transfer
	70	+	REVISOR SS H0826-1HF826 FIRST ENGROSSMENT 3.1agreement. The grant shall be paid by the public utility from funds withheld from the transfer
72	71		3.2to the renewable development account as provided in paragraphs (b) and (e).
73	72		3.3 (h) The collective amount paid under the grant contracts awarded under paragraphs (f)
74	73		3.4and (g) is limited to the amount deposited into the renewable development account, and its
75	74		3.5predecessor, the renewable development account, established under this section, that was
76	75		3.6not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
77	76		3.710.
78	77		3.8 (i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
79	78		3.9nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
80	79		3.10facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
81	80		3.11Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
82	81		3.12in which the commission finds, by the preponderance of the evidence, that the public utility
83	82		3.13did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
84	83		3.14permanent or interim storage site out of the state. This determination shall be made at least
85	84		3.15every two years.
86	85		3.16 (j) Funds in the account may be expended only for any of the following purposes:
87	86		3.17 (1) to stimulate research and development of renewable electric energy technologies;
88	87		3.18 (2) to encourage grid modernization, including, but not limited to, projects that implement
89	88		3.19electricity storage, load control, and smart meter technology; and
90	89		3.20 (3) to stimulate other innovative energy projects that reduce demand and increase system
91	90		3.21efficiency and flexibility.
92	91		3.22Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
93	92		3.23from the utility that owns a nuclear-powered electric generating plant in this state or the
94	93		3.24Prairie Island Indian community or its members.
95	94		3.25The utility that owns a nuclear generating plant is eligible to apply for grants under this
96	95		3.26subdivision.
97	96		3.27 (k) For the purposes of paragraph (j), the following terms have the meanings given:
98	97		3.28 (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
99	98		3.29(c), clauses (1), (2), (4), and (5); and
100	99		3.30 (2) "grid modernization" means:
101	100		3.31 (i) enhancing the reliability of the electrical grid;
102	101		3Section 1.
103		-	REVISOR SS H0826-2HF826 ~~SECOND~~ ENGROSSMENT 4.1 (ii) improving the security of the electrical grid against cyberthreats and physical threats;
	102	+	REVISOR SS H0826-1HF826 FIRST ENGROSSMENT 4.1 (ii) improving the security of the electrical grid against cyberthreats and physical threats;
104	103		4.2and
105	104		4.3 (iii) increasing energy conservation opportunities by facilitating communication between
106	105		4.4the utility and its customers through the use of two-way meters, control technologies, energy
107	106		4.5storage and microgrids, technologies to enable demand response, and other innovative
108	107		4.6technologies.
109	108		4.7 (l) A renewable development account advisory group that includes, among others,
110	109		4.8representatives of the public utility and its ratepayers, and includes at least one representative
111	110		4.9of the Prairie Island Indian community appointed by that community's tribal council, shall
112	111		4.10develop recommendations on account expenditures. The advisory group must design a
113	112		4.11request for proposal and evaluate projects submitted in response to a request for proposals.
114	113		4.12The advisory group must utilize an independent third-party expert to evaluate proposals
115	114		4.13submitted in response to a request for proposal, including all proposals made by the public
116	115		4.14utility. A request for proposal for research and development under paragraph (j), clause (1),
117	116		4.15may be limited to or include a request to higher education institutions located in Minnesota
118	117		4.16for multiple projects authorized under paragraph (j), clause (1). The request for multiple
119	118		4.17projects may include a provision that exempts the projects from the third-party expert review
120	119		4.18and instead provides for project evaluation and selection by a merit peer review grant system.
121	120		4.19In the process of determining request for proposal scope and subject and in evaluating
122	121		4.20responses to request for proposals, the advisory group must strongly consider, where
123	122		4.21reasonable, potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
124	123		4.22 (m) The advisory group shall submit funding recommendations to the public utility,
125	124		4.23which has full and sole authority to determine which expenditures shall be submitted by
126	125		4.24the advisory group to the legislature. The commission may approve proposed expenditures,
127	126		4.25may disapprove proposed expenditures that it finds not to be in compliance with this
128	127		4.26subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
129	128		4.27modify proposed expenditures. The commission shall, by order, submit its funding
130	129		4.28recommendations to the legislature as provided under paragraph (n).
131	130		4.29 (n) The commission shall present its recommended appropriations from the account to
132	131		4.30the senate and house of representatives committees with jurisdiction over energy policy and
133	132		4.31finance annually by February 15. Expenditures from the account must be appropriated by
134	133		4.32law. In enacting appropriations from the account, the legislature:
135	134		4.33 (1) may approve or disapprove, but may not modify, the amount of an appropriation for
136	135		4.34a project recommended by the commission; and
137	136		4Section 1.
138		-	REVISOR SS H0826-2HF826 ~~SECOND~~ ENGROSSMENT 5.1 (2) may not appropriate money for a project the commission has not recommended
	137	+	REVISOR SS H0826-1HF826 FIRST ENGROSSMENT 5.1 (2) may not appropriate money for a project the commission has not recommended
139	138		5.2funding.
140	139		5.3 (o) A request for proposal for renewable energy generation projects must, when feasible
141	140		5.4and reasonable, give preference to projects that are most cost-effective for a particular energy
142	141		5.5source.
143	142		5.6 (p) The advisory group must annually, by February 15, report to the chairs and ranking
144	143		5.7minority members of the legislative committees with jurisdiction over energy policy on
145	144		5.8projects funded by the account for the prior year and all previous years. The report must,
146	145		5.9to the extent possible and reasonable, itemize the actual and projected financial benefit to
147	146		5.10the public utility's ratepayers of each project.
148	147		5.11 (q) By February 1, 2018, and each February 1 thereafter, the commissioner of
149	148		5.12management and budget shall submit a written report regarding the availability of funds in
150	149		5.13and obligations of the account to the chairs and ranking minority members of the senate
151	150		5.14and house committees with jurisdiction over energy policy and finance, the public utility,
152	151		5.15and the advisory group.
153	152		5.16 (r) A project receiving funds from the account must produce a written final report that
154	153		5.17includes sufficient detail for technical readers and a clearly written summary for nontechnical
155	154		5.18readers. The report must include an evaluation of the project's financial, environmental, and
156	155		5.19other benefits to the state and the public utility's ratepayers.
157	156		5.20 (s) Final reports, any mid-project status reports, and renewable development account
158	157		5.21financial reports must be posted online on a public website designated by the commissioner
159	158		5.22of commerce.
160	159		5.23 (t) All final reports must acknowledge that the project was made possible in whole or
161	160		5.24part by the Minnesota renewable development account, noting that the account is financed
162	161		5.25by the public utility's ratepayers.
163	162		5.26 (u) Of the amount in the renewable development account, priority must be given to
164	163		5.27making the payments required under section 216C.417.
165	164		5.28 (v) Construction projects receiving funds from this account are subject to the requirement
166		-	5.29of paying the prevailing wage ~~rate~~ as defined in section 177.42 and the requirements and
	165	+	5.29of paying the prevailing wage as defined in section 177.42 and the requirements and
167	166		5.30enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
168	167		5.31 EFFECTIVE DATE.This section is effective the day following final enactment and
169	168		5.32applies to construction contracts entered into on or after that date.
170	169		5Section 1.
171		-	REVISOR SS H0826-2HF826 ~~SECOND~~ ENGROSSMENT
	170	+	REVISOR SS H0826-1HF826 FIRST ENGROSSMENT