1.1.................... moves to amend H.F. No. 680 as follows:
1.2Delete everything after the enacting clause and insert:

1.5    Subdivision 1. Establishment. A public building energy savings revolving loan
1.6fund is established as an account in the special revenue fund. The commissioner of finance
1.7shall credit to the account the amounts authorized under this section and appropriations
1.8and transfers to the account. Earnings, such as interest, dividends, and any other earnings
1.9arising from fund assets, must be credited to the account.
1.10    Subd. 2. Deposits. (a) Owners of projects that have received stimulus funds under
1.11section 4 must annually deposit in the account 30 percent of the monetized energy savings
1.12realized that are attributable to the stimulus funds until the payback period is ended, as
1.13determined by the Office of Energy Security.
1.14(b) Owners of projects that have received loans under this section must annually
1.15deposit in the account 30 percent of the monetized energy savings realized that are
1.16attributable to the loan until the payback period is ended, as determined by the Office
1.17of Energy Security.
1.18    Subd. 3. Expenditures. Money in the account is appropriated to the commissioner
1.19of commerce for the purpose of making loans to improve the energy efficiency of local
1.20government and school district buildings. Loans made under this section must be
1.21consistent with the principles contained in section 2 and the financing terms contained in
1.22section 4.
1.23    Subd. 4. Administration. (a) Applications for a loan under this section must be
1.24made in a manner and on forms prescribed by the Office of Energy Security. Loans to
1.25eligible projects must be made in the order in which complete applications are received by
1.26the commissioner.
2.1(b) The Office of Energy Security must establish procedures for the loan application
2.2process, criteria which must be met in order for loan applications to be approved, and
2.3other provisions necessary to administer the loan program, including, but not limited to,
2.4the maximum interest rate that may be charged for a loan.

2.7    Subdivision 1. Definition. For the purpose of sections 1 to 7, "stimulus funding" or
2.8"funding" means federal stimulus funding provided to the state by the federal stimulus
2.9funding legislation for energy programs, including, without limitation, energy programs
2.10described in sections 2 to 7.
2.11    Subd. 2. Stimulus fund allocation and use principles. To the extent allowed
2.12by federal law and rule, stimulus funding shall be allocated and expended according to
2.13the following principles:
2.14(1) project administrators, including the Office of Energy Security, shall maximize
2.15job retention and creation and optimize energy conservation and demand reduction that
2.16can be achieved by stimulus funding;
2.17(2) consistent with the job retention and creation and energy conservation goals,
2.18projects shall be selected based on relative cost-effectiveness and achieving the maximum
2.19ongoing energy savings per stimulus dollar spent and the ability to meet federal deadlines
2.20for the obligation and expenditure of federal stimulus funds;
2.21(3) stimulus funding must be used for projects geographically distributed across
2.22the state;
2.23(4) whenever practical, stimulus funds should be coordinated with existing
2.24utility conservation programs and other leveraged funds. Preference must be given
2.25to loan programs and other programs that coordinate with and leverage existing utility
2.26conservation programs and private dollars, and to projects whose owners agree to deposit
2.27at least 30 percent of energy savings funds attributable to stimulus funding into the Public
2.28Building Energy Saving Revolving Loan Fund account established in section 1;
2.29(5) preference should be given to projects with jobs that pay a living wage and
2.30protect the occupational health and safety of the workers;
2.31(6) consideration in all projects should be given to achieving high indoor air quality;
2.33(7) project administrators, include the Office of Energy Security, Department of
2.34Administration, the Department of Education and the Minnesota Housing Finance
3.1Authority, must comply with the disadvantaged business enterprise outreach requirements
3.2in section 16C.16, subdivision 4.
3.3    Subd. 3. Action plan. The Office of Economic Security, in coordination with the
3.4Departments of Education and Administration, shall develop an action plan to spend
3.5stimulus funds consistent with this section. This plan must include application procedures
3.6for funding and the development of a system to track all funds expended, energy savings
3.7caused, the number of jobs, and the wage level of jobs retained and created by the
3.8investment of stimulus funding. The Office of Energy Security may retain, select, and hire
3.9contractors to assist in the development of the plan and tracking system using expedited
3.10procurement procedures.

3.11    Sec. 3. WEATHERIZATION.
3.12    Subdivision 1. Allocation of funds. All stimulus funds for weatherization must be
3.13allocated by the director of the Office of Energy Security, consistent with federal allocation
3.14requirements and state allocation formulas in the state weatherization plan. Existing
3.15providers of weatherization services must be fully utilized, consistent with effective
3.16program delivery, before additional providers of weatherization services are added.
3.17    Subd. 2. Rental units. Programs that include rental units shall be developed,
3.18including developing procedures to increase low-income rental unit participation in
3.19programs. Priority shall be given to serving the largest number of new weatherization
3.20clients consistent with federal eligibility requirements.

3.23The Office of Energy Security must coordinate the use of stimulus funds with the
3.24Local Public Building Enhanced Energy-Efficiency Program under section 216C.43. The
3.25Office of Energy Security shall prioritize lighting upgrades, energy recommissioning,
3.26and other cost-effective energy projects that are ready for immediate implementation.
3.27Energy-efficiency conservation block grants and State Energy Program funds may be used
3.28to advance Local Public Building Enhanced Energy-Efficiency Program projects by either
3.29reducing energy bills during a savings repayment period or by decreasing the number of
3.30years for payback of energy improvement investments, provided that at least 60 percent of
3.31a project's funding is provided by the local governmental unit or school district, the Local
3.32Public Building Enhanced Energy-Efficiency Program under section 216C.43, or another
3.33local governmental unit or school district financing program. The Office of Energy
3.34Security shall coordinate with the Department of Education in prioritizing school district
4.1projects, consistent with the principles of statewide geographic distribution of projects,
4.2optimized energy savings and an improved learning environment for schoolchildren.

4.4The Office of Energy Security and the Department of Administration shall
4.5develop a joint plan and joint procedures to select, fund, and implement projects using
4.6stimulus funds. The joint plan and procedures shall prioritize lighting upgrades, energy
4.7recommissioning, and other cost-effective energy projects that are ready for immediate
4.8implementation. Energy-efficiency conservation block grants and State Energy Program
4.9funds may be used to advance the State Public Building Enhanced Energy-Efficiency
4.10Program under section 16B.322, projects by either reducing energy bills during a savings
4.11repayment period or decreasing the number of years for payback of energy improvement
4.12investments, provided that at least 60 percent of a project's funding is provided through
4.13the State Public Building Enhanced Energy-Efficiency Program.

4.15The Office of Energy Security must establish a program to fund a window
4.16replacement and insulation program for existing housing occupied by low or
4.17moderate-income households. The development and implementation of this financing
4.18program must be coordinated with the Minnesota Housing Finance Agency and existing
4.19lead abatement programs.

4.21    Subdivision 1. Home energy auditors and technicians. The director of the Office
4.22of Energy Security, in consultation with the Department of Employment and Economic
4.23Development, shall oversee training of energy auditors necessary for energy projects using
4.24stimulus funding and may allocate funding for that purpose. Technical skills training must
4.25include insulation, air sealing, and mechanical work.
4.26    Subd. 2. Energy manager and building operator training. The director of the
4.27Office of Energy Security, in consultation with the Department of Employment and
4.28Economic Development, shall coordinate and monitor training and certification of energy
4.29managers, building operators, and other energy professionals necessary for energy projects
4.30using stimulus funding and may allocate funding for that purpose. Training strategies must
4.31be designed to meet the wide range of facilities managers and the wide range of building
4.32sizes and types and the occupational health and safety of workers on these energy projects.
4.33    Subd. 3. Training activity guidelines. In addition to training individuals already
4.34employed in implementing energy programs, the director shall attempt to recruit
5.1individuals for training to perform work in energy projects using stimulus funding who
5.2are unemployed, especially targeting communities experiencing disproportionately
5.3high rates of unemployment, including but not limited to low-income, rural, or tribal
5.4communities and individuals in construction trades and crafts. The director shall utilize
5.5the full capacity of current training providers, including, but not limited to, opportunities
5.6industrialization centers, skilled trades labor unions, tribal colleges or nonprofits working
5.7in tribal communities, community action partnerships, higher education institutions, and
5.8nonprofit organizations with demonstrated expertise in energy efficiency.
5.9    Subd. 4. Utility-funded training. A utility may submit a plan to the Office of
5.10Energy Security to fund and operate training programs under this section. If the Office
5.11of Energy Security approves the plan, it shall apply reasonable credit for utility-funded
5.12training programs to a utility's energy-savings goal under section 216B.241, subdivision

5.15The Director of the Office of Energy Security shall report on the progress of the
5.16programs funded under section 3 to 7 to the house and senate committees with jurisdiction
5.17over energy finance by May 1, 2009, September 1, 2009, January 15, 2010, April 1, 2010,
5.18and September 1, 2010. The report shall include a complete accounting of all stimulus
5.19funds spent on the programs funded under sections 3 to 7, including, but not limited to:
5.20(1) the specific projects funded, including the location, building owner, and project
5.21manager;(2) the number of jobs retained or created by each project;
5.22(3) the average wage of the jobs created or retained;
5.23(4) the total calculated and actual energy savings for each project;
5.24(5) the remaining balances in each stimulus fund;
5.25(6) the non-stimulus funding leveraged by stimulus funds for each project;
5.26(7) the current and projected deposits into the Energy Savings Endowment fund;
5.27(8) the training courses provided, including the location and provider of courses
5.28offered, the funding source for each training course, and the total number of trainees; and
5.29(9) compliance with federal and state wage, veterans and disadvantaged business
5.30enterprise requirements.

5.31    Sec. 9. EFFECTIVE DATE.
5.32Sections 1 to 8 are effective the day following final enactment."