Race for energy stimulus dollars

Several bills related to energy efficiency projects are scheduled to be considered March 23 by the House Energy Finance and Policy Division for possible omnibus bill inclusion.

Among the requests for federal stimulus funds are proposals for a biofuel production facility in northeast Minnesota; a solar energy system on a large dairy farm in Bricelyn; and the renovation of a former school building in Kennedy to support geothermal, wind and solar energy for a Go Green Business Center.

More than a dozen bills have been introduced seeking at least partial funding from the federal stimulus funds that are to be allocated to the Office of Energy Security, not the least of which is HF680. Sponsored by Rep. Jeremy Kalin (DFL-North Branch), it creates the framework by which the office would distribute the funds. It also explains the flow of money to existing energy efficiency programs, which will get a significant boost.

Director Bill Glahn told division members March 18 that his department’s primary goals in distributing the money are that it creates and retains jobs and that energy savings result.

Strategies to reach those goals within the federal two-year timeframe include:

• $131.9 million for the weatherization assistance program;

• $54.2 million for a state energy program that includes: retrofitting public buildings; residential grants and loans through the Minnesota Housing Finance Agency; renewable energy rebates; workforce retraining; ingenuity grants; commercial/industrial incentives; and the creation of a Minnesota Energy Future Investment Fund;

• $8.55 million for energy efficiency grants to local governments; and

• an undetermined amount for tax incentives, competitive grants and an Energy Star Appliance Rebate program.

With a majority of the money going to weatherization, Glahn said some significant changes are in store for the program.

Spending limits per household could increase from $3,000 to $6,500 and Glahn estimated that up to 17,000 houses could be weatherized as a result. The federal government stipulates that at least 5 percent of the homes must be inspected. Glahn proposes that 10 percent be inspected, which would require the hiring of 10 state technical monitors and two financial monitors to oversee the program.