1.1    .................... moves to amend H. F. No. 1951 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 16B.325, is amended to read:
1.5    Subdivision 1. Development of sustainable building guidelines. The Department
1.6of Administration and the Department of Commerce, with the assistance of other agencies,
1.7shall develop sustainable building design guidelines for all new state buildings by January
1.815, 2003, and for all major renovations of state buildings by February 1, 2009. The
1.9primary objectives of these guidelines are to ensure that all new state buildings, and
1.10major renovations of state buildings, initially exceed existing the state energy code, as
1.11established in Minnesota Rules, chapter 7676, by at least 30 percent.
1.12    Subd. 2. Lowest possible cost; energy conservation. The guidelines must focus
1.13on achieving the lowest possible lifetime cost for new buildings and major renovations,
1.14and allow for changes in the guidelines that encourage continual energy conservation
1.15improvements in new buildings and major renovations. The guidelines shall define
1.16"major renovations" for purposes of this section. The design guidelines must establish
1.17sustainability guidelines that include air quality and lighting standards and that create
1.18and maintain a healthy environment and facilitate productivity improvements; specify
1.19ways to reduce material costs; and must consider the long-term operating costs of the
1.20building, including the use of renewable energy sources and distributed electric energy
1.21generation that uses a renewable source or natural gas or a fuel that is as clean or cleaner
1.22than natural gas.
1.23    Subd. 3. Development of guidelines; applicability. In developing the guidelines,
1.24the departments shall use an open process, including providing the opportunity for public
1.25comment. The guidelines established under this section are mandatory for all new
2.1buildings receiving funding from the bond proceeds fund after January 1, 2004, and for all
2.2major renovations receiving funding from the bond proceeds fund after February 1, 2009.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.

2.4    Sec. 2. GREEN BONDS.
2.5    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the bond
2.6proceeds fund to the commissioner of commerce for grants to municipalities that
2.7meet or exceed the sustainability guidelines of Minnesota Statutes, section 16B.325.
2.8"Municipality" means a county, statutory or home rule charter city, town, school district,
2.9or any combination of those units operating under an agreement to undertake projects
2.10jointly. The grants are:
2.11    (1) to pay a portion of the incremental cost of predesign and design work that will
2.12identify the design elements and costs for construction or renovation of the proposed
2.13building and adjacent landscaping using standard construction methods, and the design
2.14elements and costs for construction or renovation using energy-efficient elements; and
2.15    (2) to pay a portion of the incremental cost of construction or renovation and
2.16adjacent landscaping work related to implementation of the energy-efficient design, as
2.17identified in the design.
2.18    (b) The commissioner shall prescribe the application form. For all grants, the
2.19application must include at least the following information:
2.20    (1) the resolution adopted by the municipality in support of the project and
2.21specifically in support of implementing an energy-efficient design in the construction
2.22of the new municipal building;
2.23    (2) a detailed estimate, along with necessary supporting evidence, of the total costs
2.24for the phase of the project for which a grant is sought;
2.25    (3) evidence that the municipality has funds committed to pay for the balance of this
2.26phase of the project; and
2.27    (4) any additional information or material the commissioner requires.
2.28    (c) For a predesign or design grant, the application must include at least the
2.29following information:
2.30    (1) a general description of the project, including the ultimate use of the building,
2.31an estimate of the size, possible locations for the building, ownership, and timeline for
2.33    (2) the method for soliciting proposals from design professionals and the
2.34qualifications required by the municipality in selecting the design professional for the
2.35project; and
3.1    (3) an estimate of the incremental cost of the predesign or design work proposed that
3.2will be due to providing the energy-efficient alternative.
3.3    (d) For a construction grant, the application must include at least the predesign and
3.4design work that provides sufficient detail for the commissioner to identify the difference in
3.5construction costs and estimated operating costs, including energy consumption, between
3.6construction of the project with standard elements and construction using the proposed
3.7energy-efficient elements. Grants may only be provided for additional construction or
3.8renovation costs that would not be recovered from energy savings within five years.
3.9    (e) The commissioner shall require each grant recipient to document and report
3.10details of the project funded to allow the commissioner to analyze costs, energy savings,
3.11and building operational savings.
3.12    Subd. 2. Bond sale. To provide the money appropriated in subdivision 1 from
3.13the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
3.14state in an amount up to $10,000,000 in the manner, upon the terms, and with the effect
3.15prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
3.16Constitution, article XI, sections 4 to 7.
3.17EFFECTIVE DATE.This section is effective the day following final enactment."
3.18Delete the title and insert:
3.19"A bill for an act
3.20relating to capital investment; applying sustainable building guidelines to
3.21major state renovations; appropriating money for energy-efficient design and
3.22construction grants; authorizing the issuance of general obligation bonds;
3.23amending Minnesota Statutes 2006, section 16B.325."