HF3686

Purpose

• To modify how grants under Minnesota's state energy grant program are awarded and to improve transparency about federal funds eligible for state matching. It also relaxes a previous time limit on grant duration for this program.

Main Provisions

• Priority order for grant awards (Section 216C.391, Subd. 3):
  1. Federal formula funds directed to the state that require a match.
  2. Federal funds directed to a political subdivision or a Tribal government that require a match.
  3. Federal funds directed to an institution of higher education, a consumer-owned utility, or a business or a nonprofit organization that require a match.
  4. Federal funds directed to an investor-owned utility or a nonprofit organization that require a match.
  5. Federal funds directed to an eligible entity not included in the above categories that require a match.
  6. All other grant opportunities directed to eligible entities that do not require a match, but where the commissioner determines that a grant is likely to help the applicant receive federal funds or increase the amount of federal funds received.
• Reporting and public posting:
  • By November 15, 2023, the commissioner must develop and publicly post, and report to the chairs and ranking minority members of the legislative energy finance committees, the federal energy grant funds that are eligible for state matching funds under this section.
• Grant duration:
  • A grant made under this section may exceed five years, notwithstanding the existing limitation in section 16B.98 subdivision 5 paragraph b.

Significant Changes to Existing Law

• Reorders the priority framework for awarding state energy grants, shifting emphasis to different categories of federal funds and their match requirements.
• Introduces an obligation for the commissioner to identify and publicly disclose which federal energy grant funds are eligible for state matching, with reporting to legislative leadership.
• Allows grants under this section to extend beyond the prior five-year cap, increasing the potential duration of funding arrangements.

How It Works in Practice

• Eligible entities (state agencies, political subdivisions, tribal governments, institutions of higher education, utilities, businesses, nonprofit organizations, etc.) seeking state energy grants must consider the revised priority order and the requirement for a federal funds match.
• The commissioner will provide a public list of eligible federal funds that qualify for matching, enabling applicants to align proposals with the most favorable funding opportunities.
• Organizations receiving grants may have longer-term funding, which could support longer-term energy projects and planning.

Key Terms (to look for in the text)

• state energy grants, eligible entities, match, federal funds, institutional of higher education, consumer-owned utility, investor-owned utility, nonprofit organization, political subdivision, Tribal government, five years (and not withstanding), reporting, public posting, energy finance.

Relevant Terms - state energy grants - eligible entities - match - federal funds - institution of higher education - consumer-owned utility - investor-owned utility - nonprofit organization - political subdivision - Tribal government - five years - notwithstanding - reporting - public posting - energy finance