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S.F. No. 1888 - Community Energy Transition Competitive Grant Program (First Engrossment)
 
Author: Senator Karin Housley
 
Prepared By: Carlon D. Fontaine, Senate Counsel (651/296-4395)
 
Date: March 10, 2020



 

Section 1.  Community energy transition grants.  Subdivision 1.  Definitions Provides defintions for terms including “commissioner” and “eligible community.” "Commissioner" means the commissioner of employment and economic development (DEED). "Eligible community" means a county, municipality, or tribal government that hosts or has hosted an investor-owned electric generating plant powered by coal, nuclear energy, or natural gas.

Subdivision 2Establishment. Requires the commissioner of employment and economic development to establish a community energy transition grant program.

Subdivision 3Funding.  Creates a community energy transition account. Appropriates money in the account to the commissioner for community energy transition grants. Transfers $15 million from the renewable development account on July 1, 2020, and then $10 million each July 1 thereafter from the renewable development account for deposit in the community energy transition account. Specifies that grants to eligible communities with a plant that has not been scheduled for retirement or decommissioning is limited to $1 million and grants to eligible communities with a plant that has been scheduled for retirement or decommissioning is capped at $5 million. Allows DEED to retain five percent for administrative costs.

Subdivision 4. Cancellation of grant; return of grant money.  Requires money for a project that has been granted but not completed within five years must be returned to DEED for additional grants.

Subdivision 5Grants to eligible communities.  Provides for a competitive process for grants to eligible communities for use to plan for or address the economic and social impact on the community of plant retirement or transition. Specifies that grant awards from the account must be to eligible communities within Xcel service territory.  Allows grants made with general fund dollars to be awarded to eligible communities outside Xcel service territory.  Specific uses may include research, planning, studies, capital improvements, and incentives for businesses to open, relocate, or expand.

Subdivision 6.  Priorities.  Lists the priorities that the advisory council must consider when evaluating projects.

Subdivision 7.  Advisory council.  Creates the community energy transition grant advisory council, consisting of the following members: the commissioner of employment and economic development, or a designee; the commissioner of transportation, or a designee; the commissioner of the Minnesota Pollution Control Agency, or a designee; the commissioner of natural resources, or a designee; the commissioner of commerce, or a designee; the commissioner of administration, or a designee; one representative of the Prairie Island Indian community; two representatives of workers at investor-owned electric generating plants powered by coal, nuclear energy, or natural gas; and four representatives of eligible communities, of which, two must be counties, two must be municipalities, at least one must host a coal plant, and at least one must host a nuclear plant. Provides for other specifics for appointment and administration of the advisory council.

Subdivision 8Reports to the legislature.  Requires an annual report to the legislature beginning in 2022, detailing the use of grant funds, including any economic impact data.

Section 2.  Appropriation; grants to communities located outside of the service territory.  Appropriates $25,000,0000 from the general fund for grants to otherwise eligible communities under the community energy transition grant program.

CDF/syl

 

 
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