A bill for an act
relating to state government; establishing a state building renewable energy, storage,
and electric vehicle account; modifying grant management agreement provision;
modifying a 2023 appropriation provision; changing a provision for motor vehicle
lease sales tax revenue; amending Minnesota Statutes 2022, sections 16B.97,
subdivision 1; 16B.98, subdivision 1; 297A.815, subdivision 3; Laws 2023, chapter
62, article 1, section 11, subdivision 2; proposing coding for new law in Minnesota
Statutes, chapter 16B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

DEPARTMENT OF ADMINISTRATION

Section 1.

new text begin [16B.851] STATE BUILDING RENEWABLE ENERGY; STORAGE;
ELECTRIC VEHICLE ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Energy storage" means the predesign, design, acquisition, construction, or installation
of technology which stores and delivers electric or thermal energy.
new text end

new text begin (c) "EVSE" means electric vehicle service equipment, including charging equipment
and associated infrastructure and site upgrades.
new text end

new text begin (d) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1,
paragraph (c), and the same sources in thermal energy.
new text end

new text begin (e) "Renewable energy improvement" means the predesign, design, acquisition,
construction, or installation of a renewable energy production system or energy storage
equipment or system, and associated infrastructure and facilities that are designed to result
in a demand-side net reduction in energy use by the state building's electrical, heating,
ventilating, air-conditioning, and hot water systems.
new text end

new text begin (f) "State agency" has the definition given in section 13.02, subdivision 17, or designated
definition given in section 15.01 and includes the Office of Higher Education, Housing
Finance Agency, Pollution Control Agency, Metropolitan Council, and Bureau of Mediation
Services. State agency includes the agencies, boards, commissions, committees, councils,
and authorities designated in section 15.012.
new text end

new text begin (g) "State building" means a building or facility owned by the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Account established. new text end

new text begin A state building renewable energy, storage, and electric
vehicle account is established in the special revenue fund to provide funds to state agencies
to:
new text end

new text begin (1) design, construct, and equip renewable energy improvement and renewable energy
storage projects at state buildings;
new text end

new text begin (2) purchase state fleet electric vehicles in accordance with section 16C.135;
new text end

new text begin (3) purchase and install EVSE and related infrastructure; and
new text end

new text begin (4) carry out management projects by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Account management. new text end

new text begin The commissioner shall manage and administer the
state building renewable energy, storage, and electric vehicle account.
new text end

new text begin Subd. 4. new text end

new text begin Accepting funds. new text end

new text begin (a) The commissioner shall make an application to the federal
government on behalf of the state of Minnesota for all state projects eligible for elective
payments under sections 6417 and 6418 of the Internal Revenue Code, as added by Public
Law 117-169, 136 Statute 1818, the Inflation Reduction Act of 2022.
new text end

new text begin (b) The commissioner may apply for, receive, and expend money made available from
federal, state, or other sources for the purposes of carrying out the duties in this section.
new text end

new text begin (c) Notwithstanding section 16A.72, all funds received under this subdivision are
deposited into the state building renewable energy, storage, and electric vehicle account
and appropriated to the commissioner for the purposes of subdivision 2 and as permitted
under this section.
new text end

new text begin (d) Money in the state building renewable energy, storage, and electric vehicle account
does not cancel and is available until expended.
new text end

new text begin Subd. 5. new text end

new text begin Applications. new text end

new text begin A state agency applying for state building renewable energy,
storage, EVSE, and electric fleet vehicle funds must submit an application to the
commissioner on a form, in the manner, and at the time prescribed by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Treatment of certain payments received from federal government. new text end

new text begin (a)
Federal payments received for eligible renewable energy improvement and storage projects
and EVSE projects made with appropriations from general obligation bonds may be
transferred to the state bond fund if consistent with federal treasury regulations.
new text end

new text begin (b) Federal payments received for eligible electric fleet vehicle purchases by the
Department of Administration's fleet division must be transferred to the motor pool revolving
account established in section 16B.54, subdivision 8.
new text end

new text begin (c) Federal payments received for eligible electric fleet vehicle purchases made directly
by a state agency shall be transferred to the fund from which the purchase was made.
new text end

new text begin (d) When obligated to fulfill financing agreements, federal payments received for eligible
renewable energy improvements shall be transferred to the appropriate agency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 16B.97, subdivision 1, is amended to read:


Subdivision 1.

Grant agreement.

(a) A grant agreement is a written instrument or
electronic document defining a legal relationship between a granting agency and a grantee
when the principal purpose of the relationship is to transfer cash or something of value to
the recipient to support a public purpose authorized by law instead of acquiring by
professional or technical contract, purchase, lease, or barter property or services for the
direct benefit or use of the granting agency.

(b) This section does not apply to general obligation grants as defined by section 16A.695
deleted text begin anddeleted text end new text begin ,new text end capital project grants to political subdivisions as defined by section 16A.86new text begin , or capital
project grants otherwise subject to section 16A.642
new text end .

Sec. 3.

Minnesota Statutes 2022, section 16B.98, subdivision 1, is amended to read:


Subdivision 1.

Limitation.

(a) As a condition of receiving a