1.1 A bill for an act
1.2 relating to prevailing wages; requiring prevailing wage agreements for projects
1.3 funded in whole or in part with renewable development account funds; amending
1.4 Minnesota Statutes 2022, section 116C.779, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2022, section 116C.779, subdivision 1, is amended to read:
1.7 Subdivision 1.Renewable development account.(a) The renewable development
1.8account is established as a separate account in the special revenue fund in the state treasury.
1.9Appropriations and transfers to the account shall be credited to the account. Earnings, such
1.10as interest, dividends, and any other earnings arising from assets of the account, shall be
1.11credited to the account. Funds remaining in the account at the end of a fiscal year are not
1.12canceled to the general fund but remain in the account until expended. The account shall
1.13be administered by the commissioner of management and budget as provided under this
1.14section.
1.15 (b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
1.16plant must transfer all funds in the renewable development account previously established
1.17under this subdivision and managed by the public utility to the renewable development
1.18account established in paragraph (a). Funds awarded to grantees in previous grant cycles
1.19that have not yet been expended and unencumbered funds required to be paid in calendar
1.20year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
1.21to transfer under this paragraph.
1.22 (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
1.23each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
1Section 1.
S0747-2 2nd EngrossmentSF747 REVISOR SS
SENATE
STATE OF MINNESOTA
S.F. No. 747NINETY-THIRD SESSION
(SENATE AUTHORS: HOFFMAN, Frentz, McEwen, Farnsworth and Abeler)
OFFICIAL STATUSD-PGDATE
Introduction and first reading38101/25/2023
Referred to Environment, Climate, and Legacy
Withdrawn and re-referred to Energy, Utilities, Environment, and Climate74702/08/2023
Comm report: To pass as amended and re-refer to Labor822a02/16/2023
Comm report: To pass as amended and re-refer to Finance03/02/2023 2.1plant must transfer to the renewable development account $500,000 each year for each dry
2.2cask containing spent fuel that is located at the Prairie Island power plant for each year the
2.3plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
2.4the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
2.5is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
2.6part of a year.
2.7 (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
2.8each January 15 thereafter, the public utility that owns the Monticello nuclear generating
2.9plant must transfer to the renewable development account $350,000 each year for each dry
2.10cask containing spent fuel that is located at the Monticello nuclear power plant for each
2.11year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
2.12by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
2.13waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
2.14any part of a year.
2.15 (e) Each year, the public utility shall withhold from the funds transferred to the renewable
2.16development account under paragraphs (c) and (d) the amount necessary to pay its obligations
2.17under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
2.18 (f) If the commission approves a new or amended power purchase agreement, the
2.19termination of a power purchase agreement, or the purchase and closure of a facility under
2.20section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
2.21the public utility subject to this section shall enter into a contract with the city in which the
2.22poultry litter plant is located to provide grants to the city for the purposes of economic
2.23development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
2.24fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
2.25by the public utility from funds withheld from the transfer to the renewable development
2.26account, as provided in paragraphs (b) and (e).
2.27 (g) If the commission approves a new or amended power purchase agreement, or the
2.28termination of a power purchase agreement under section 216B.2424, subdivision 9, with
2.29an entity owned or controlled, directly or indirectly, by two municipal utilities located north
2.30of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
2.31section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
2.32grant contract with such entity to provide $6,800,000 per year for five years, commencing
2.3330 days after the commission approves the new or amended power purchase agreement, or
2.34the termination of the power purchase agreement, and on each June 1 thereafter through
2.352021, to assist the transition required by the new, amended, or terminated power purchase
2Section 1.
S0747-2 2nd EngrossmentSF747 REVISOR SS 3.1agreement. The grant shall be paid by the public utility from funds withheld from the transfer
3.2to the renewable development account as provided in paragraphs (b) and (e).
3.3 (h) The collective amount paid under the grant contracts awarded under paragraphs (f)
3.4and (g) is limited to the amount deposited into the renewable development account, and its
3.5predecessor, the renewable development account, established under this section, that was
3.6not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
3.710.
3.8 (i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
3.9nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
3.10facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
3.11Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
3.12in which the commission finds, by the preponderance of the evidence, that the public utility
3.13did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
3.14permanent or interim storage site out of the state. This determination shall be made at least
3.15every two years.
3.16 (j) Funds in the account may be expended only for any of the following purposes:
3.17 (1) to stimulate research and development of renewable electric energy technologies;
3.18 (2) to encourage grid modernization, including, but not limited to, projects that implement
3.19electricity storage, load control, and smart meter technology; and
3.20 (3) to stimulate other innovative energy projects that reduce demand and increase system
3.21efficiency and flexibility.
3.22Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
3.23from the utility that owns a nuclear-powered electric generating plant in this state or the
3.24Prairie Island Indian community or its members.
3.25The utility that owns a nuclear generating plant is eligible to apply for grants under this
3.26subdivision.
3.27 (k) For the purposes of paragraph (j), the following terms have the meanings given:
3.28 (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
3.29(c), clauses (1), (2), (4), and (5); and
3.30 (2) "grid modernization" means:
3.31 (i) enhancing the reliability of the electrical grid;
3Section 1.
S0747-2 2nd EngrossmentSF747 REVISOR SS 4.1 (ii) improving the security of the electrical grid against cyberthreats and physical threats;
4.2and
4.3 (iii) increasing energy conservation opportunities by facilitating communication between
4.4the utility and its customers through the use of two-way meters, control technologies, energy
4.5storage and microgrids, technologies to enable demand response, and other innovative
4.6technologies.
4.7 (l) A renewable development account advisory group that includes, among others,
4.8representatives of the public utility and its ratepayers, and includes at least one representative
4.9of the Prairie Island Indian community appointed by that community's tribal council, shall
4.10develop recommendations on account expenditures. The advisory group must design a
4.11request for proposal and evaluate projects submitted in response to a request for proposals.
4.12The advisory group must utilize an independent third-party expert to evaluate proposals
4.13submitted in response to a request for proposal, including all proposals made by the public
4.14utility. A request for proposal for research and development under paragraph (j), clause (1),
4.15may be limited to or include a request to higher education institutions located in Minnesota
4.16for multiple projects authorized under paragraph (j), clause (1). The request for multiple
4.17projects may include a provision that exempts the projects from the third-party expert review
4.18and instead provides for project evaluation and selection by a merit peer review grant system.
4.19In the process of determining request for proposal scope and subject and in evaluating
4.20responses to request for proposals, the advisory group must strongly consider, where
4.21reasonable, potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
4.22 (m) The advisory group shall submit funding recommendations to the public utility,
4.23which has full and sole authority to determine which expenditures shall be submitted by
4.24the advisory group to the legislature. The commission may approve proposed expenditures,
4.25may disapprove proposed expenditures that it finds not to be in compliance with this
4.26subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
4.27modify proposed expenditures. The commission shall, by order, submit its funding
4.28recommendations to the legislature as provided under paragraph (n).
4.29 (n) The commission shall present its recommended appropriations from the account to
4.30the senate and house of representatives committees with jurisdiction over energy policy and
4.31finance annually by February 15. Expenditures from the account must be appropriated by
4.32law. In enacting appropriations from the account, the legislature:
4.33 (1) may approve or disapprove, but may not modify, the amount of an appropriation for
4.34a project recommended by the commission; and
4Section 1.
S0747-2 2nd EngrossmentSF747 REVISOR SS 5.1 (2) may not appropriate money for a project the commission has not recommended
5.2funding.
5.3 (o) A request for proposal for renewable energy generation projects must, when feasible
5.4and reasonable, give preference to projects that are most cost-effective for a particular energy
5.5source.
5.6 (p) The advisory group must annually, by February 15, report to the chairs and ranking
5.7minority members of the legislative committees with jurisdiction over energy policy on
5.8projects funded by the account for the prior year and all previous years. The report must,
5.9to the extent possible and reasonable, itemize the actual and projected financial benefit to
5.10the public utility's ratepayers of each project.
5.11 (q) By February 1, 2018, and each February 1 thereafter, the commissioner of
5.12management and budget shall submit a written report regarding the availability of funds in
5.13and obligations of the account to the chairs and ranking minority members of the senate
5.14and house committees with jurisdiction over energy policy and finance, the public utility,
5.15and the advisory group.
5.16 (r) A project receiving funds from the account must produce a written final report that
5.17includes sufficient detail for technical readers and a clearly written summary for nontechnical
5.18readers. The report must include an evaluation of the project's financial, environmental, and
5.19other benefits to the state and the public utility's ratepayers.
5.20 (s) Final reports, any mid-project status reports, and renewable development account
5.21financial reports must be posted online on a public website designated by the commissioner
5.22of commerce.
5.23 (t) All final reports must acknowledge that the project was made possible in whole or
5.24part by the Minnesota renewable development account, noting that the account is financed
5.25by the public utility's ratepayers.
5.26 (u) Of the amount in the renewable development account, priority must be given to
5.27making the payments required under section 216C.417.
5.28 (v) Construction projects receiving funds from this account are subject to the requirement
5.29of paying the prevailing wage rate as defined in section 177.42 and the requirements and
5.30enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
5.31 EFFECTIVE DATE.This section is effective the day following final enactment and
5.32applies to construction contracts entered into on or after that date.
5Section 1.
S0747-2 2nd EngrossmentSF747 REVISOR SS