THE GAVEL
>> CHAIR GAROFALO:
GOOD AFTERNOON. I CALL TO ORDER THE
JOB GROWTH ENERGY FOR THE POLICY AND FINANCE COMMITTEE. TODAY IS TUESDAY SIXTH. TODAY
FIRST ORDER OF BUSINESS IS THE APPROVAL OF THE MINUTES.
REPRESENTATIVE FABIAN WAS
THE MINUTES. ANY CORRECTIONS OR ADDITIONS? ALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.] OPPOSED; NAY. THE MOTION
PREVAILS. MINUTES OF AN ADOPTED
>> [GAVEL] >> CHAIR GAROFALO:
NEXT ORDER OF BUSINESS APPROVAL OF THE MINUTES FEBRUARY 28.
REPRESENTATIVE SUNDIN MOVES APPROVAL OF THE MINUTES FROM
FEBRUARY 28. ANY CORRECTIONS OR CHANGES OR ADDITIONS?
SEEING NONE; ALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.]
OPPOSED; NAY. THE MOTION PREVAILS.
>> [GAVEL]
>> CHAIR GAROFALO: THE MINUTES ARE ADOPTED THERE'S A COUPLE ITEMS ON THE AGENDA TODAY. WE HAVE TWO BILLS AS WELL AS AN OVERVIEW OF THE
DULUTH RENEWABLE DEVELOPMENT AT
CONCORD REPRESENTATIVE FABIAN ARE YOU READY
TO GO. HIS REPRESENTATIVE KIEL HERE. YES
SHE'S
NOT REPRESENTATIVE KIEL I DO NOT SEE YOU THERE. YOU ARE
IN BLACK HIDING THERE.
REPRESENTATIVE KIEL WE WILL START WITH YOU.
REPRESENTATIVE FABIAN MOVE
HOUSE FILE 917 FOR POSSIBLE INCLUSION IN A
LATER BILL. REPRESENTATIVE KIEL TO
YOUR BILL
>> REPRESENTATIVE KIEL: THANK YOU MR. CHAIR. I APPRECIATE YOU
HEARING THIS.
REPRESENTATIVE FABIAN ALSO HAS ONE
OF THESE A COUPLE OF THESE INDUSTRIES
IN HIS NECK OF THE WOODS SO WE ARE
BLESSED WITH A
RESIDENTIAL BIOMASS FUELING SYSTEM
THAT'S THE TAX CREDIT WE ARE
TALKING ABOUT.
IN A SODA IS BLESSED WITH ABUNDANT SOURCE
OF AGRICULTURAL AND FOREST SPACE
BIOMASS. DISCERNIBLE MATERIAL
AND RESIDUE IS USE TO
PRODUCE ENERGY BIOMASS THERMAL
ENERGY UTILIZES
THE SUSTAINABILITY SOURCE OF BIOMASS FOR SAFE
AND DOMESTIC WATER HEATING;
PROCESS HEAT AND THERMAL PORTION OF
COMBINED HEAT
AND POWER. I'VE GOT OTHER PEOPLE
THAT ARE HERE TO TESTIFY I JUST WHIP WOULD LIKE TO SHARE
WITH YOU; I NEGLECTED TO CHECK WITH MY LOCAL SCHOOL DISTRICT BUT WHEN I WAS ON THE
SCHOOL BOARD WE HEEDED OUR POOL WITH ONE OF
THESE BIOMASS BURNERS AND THEY START OUT WITH CORN
AND EVERYBODY KNOWS WHAT HAPPENED TO CORN. THE PRICE WENT UP
LITTLE COSTLY TO HEAT YOUR POOL THAT WAY. IN FACT THAT OUR TIME EVEN KEEPING THE POOL AT THE
RIGHT TEMPERATURE COULD IT GOT A LITTLE ONE. IT WAS
VERY EFFICIENT BUT IN
MY COMMITTEE IT WAS ALSO A C
SON AFTER SUNFLOWER SEEDS AT ONE
POINT AND WHAT THEY DID WAS BURN THE
SUNFLOWER [INAUDIBLE] WHICH
THE PLANT HAD TO GET RID OF ANY. SO WAS A WIN-WIN FOR THE COMMUNITY AND HEEDED OUR POOL AND WORKED VERY WELL. IT'S VERY EFFICIENT. I HAVE OTHER TIMES WHEN HERE WITH ME TODAY AND WOULD LIKE
THEM TO TALK MORE ABOUT
THE INDUSTRY. >> CHAIR GAROFALO: PERSONAL
ONE QUICK REPRESENTATIVE FABIAN MODIFIES MOTION HOUSE FILE
970 B RECOMMEND PASSING OVER TO THE TAX COMMITTEE ALSO
REPRESENTATIVE FABIAN TOLD ME AS AN 83 AUTHORS AMENDMENT TO
DELETE
EVERYTHING SO REPRESENTATIVE FABIAN IS CAN MOVE THE A- THREE TO GET
THE BILL IN THE FORM THE AUTHOR WOULD LIKE IT ANY DISCUSSION?
SEEING NONE; ALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.] OPPOSED; NAY.
THE MOTION PREVAILS. >> [GAVEL] >> REPRESENTATIVE GAROFALO:
THE MINISTRIES AMENDMENT IS
ADOPTED. SO REPRESENTATIVE
KIEL TO YOUR TESTIFIERS
>> REPRESENTATIVE KIEL: I LOVE THE OSMOSIS IN
THIS COMMITTEE. >> REPRESENTATIVE
GAROFALO: [INAUDIBLE] EASY. [LAUGHING]
>> REPRESENTATIVE KIEL: WITH THAT I WOULD LIKE TO WELCOME
MR. TRISTAN CHRIS PERSON AND
LET
HIM EXPLAIN >>
REPRESENTATIVE GAROFALO: WILL COME TO
THE TEST COMMITTEE. PLEASE STATE YOUR NAME AND BEGIN YOUR TESTIMONY
>> TESTIFIER: MY NAME IS CHRIS
PERSON. I
AM IN CORPORATE RELATIONS WITH CENTRAL
BOILER INC.
I AM IN CORPORATE RELATIONS WITH CENTRAL BOILER INC. VERY SMALL MINI FASHION COMING LOCATED IN GREENBUSH MINNESOTA TOWN OF ABOUT
800 PEOPLE. THE TOWN THAT I GREW
UP IN. I
WAS EMPLOYED WITH CENTRAL BOILER FOR APPROXIMATELY
SEVEN YEARS AS A
FULL-TIME EMPLOYEE
THIS SUMMER THE FIRST TIME CENTRAL BOILER AT
SOME LAYOFFS IN THE LEFTS WERE
BECAUSE BASICALLY;
THE NEW DEVICES WE
ARE BUILDING AND ARE NOW MANDATED TO BUILD A
CENTRAL BOILER HAVE BECOME VERY VERY
COST PROHIBITIVE
FOR PEOPLE WHO ARE BURNING WOOD COULD A
LITTLE HISTORY STARTING IN THE
YEAR PROBABLY IN THE
EARLY 2000'S T
HREE THE MANUFACTURER LOCATED IN THE
NORTHERN MINNESOTA WOOD MASTER
HEAP MORE AND CENTRAL BOILER ENTERED INTO A VOLUNTARY PARTICIPATION AGREEMENT WITH THE EPA
TO PRODUCE HIGHER EFFICIENCY; LOW
EMISSIONS WOOD-BURNING. THE CONCEPT BEHIND IT WAS TO CLEAN UP THE AIR AND TO BE ABLE TO
COMFORTABLY AFFORD
FUTURE HOME.. AS WE GOT
INTO THAT AND REALIZE THAT THE TECHNOLOGIES THAT WE WERE PUTTING INTO WOOD-BURNING
WERE GOING TO INCREASE THE PRICES
OF THAT AT THE SAME TIME EPA
WENT ABOUT WITH SOME RULEMAKING SO IN 2015
ALL
THE MANUFACTURES ARE REQUIRED TO
BUILD ONLY HIGH EFFICIENCY; LOW
EMISSION BOILERS. WHAT
HAPPENED BECAUSE OF THAT IS THE PRICE OF BOILERS
HAS NOW
GONE THROUGH POTENTIALLY UP TO 30%
INCREASE. SO RURAL HOMEOWNERS
RURAL BUSINESSES ARE USING OUR HYDRONIC HEATERS TO EITHER HOMES
ARE NOW UNABLE TO
POTENTIALLY AFFORD THE NEWEST AND
BEST TECHNOLOGIES. THE MANUFACTURES
UP IN NORTHERN MINNESOTA
REALLY TRIED TO MARKET THESE
DEVICES; REALLY
TRY TO KEEP THE COST LOW BUT I BELIEVE WE
HAVE PRICED OURSELVES ALMOST OUT OF
THE MARKET. WHEN YOU LOOK AT
WHAT A TAX CREDIT COULD DO TO A
RURAL HOMEOWNER WAS
TRYING TO AFFORDABLY HEAT
THEIR HOME WITH ONE OF
THESE DEVICES; IT'S REALLY GOING TO SPUR THEM
TO INVEST IN THE
NEW EQUIPMENT. AS EVERYONE TRANSITIONS INTO A
CLEANER MORE EFFICIENT
ECONOMY ACROSS THE UNITED STATES
AND HISTORICALLY EVE
RY OTHER RENEWABLE ENERGY OUT THERE;
SOLAR; WIND; HAS RECEIVED A
LITTLE BUMP AND WHAT OUR
CONSUMERS NEED IS A LITTLE BUMP
THEY NEED A LITTLE EXTRA MONEY
THAT'S GOING TO
PROMPT THEM TO GET US INTO THE
NEWEST TECHNOLOGIES.
THE EFFICIENCIES ON THESE NEWER UNITS
CAN RUN AS HIGH AS 90%. THE OMISSIONS ARE VERY VERY LOW. SO AS
OF 2015 BUILDING ALLOWED TO BE SOLD IN
A RESIDENTIAL SETTING IS THE NEWER CLEANER
HYDRONIC HEATERS. I BELIEVE THIS BILL WOULD GO A
LONG WAY ACROSS THE
UNITED STATES AND SOME OF THE NORTHERN STATES LIKE NEW
YORK; MASSACHUSETTS ACTUALLY IN THE STATE OF MINNESOTA THERE IS A
PROGRAM
CALLED PROJECT STOVE SWAP WAS INITIATED IN 17 COWS IN NORTHEAST MINNESOTA UP
BY DULUTH. WITH THAT GAVE IS
A PUSH THERE WAS
FUNDS AVAILABLE FOR CONSUMERS TO SWAP OUT
OLD FURNACES;
OLD STOVES. I JUST SAW AN ARTICLE IN
GRAND RAPIDS PAPER THAT
SAID OVER 200 FURNACES AND STOVES HAVE BEEN
SWAPPED OUT
AND THAT WAS THROUGH SOME
UPFRONT FUNDING FOR THESE REAL CONSUMERS WHO RELY UPON WHAT HEAT. SO;
I BELIEVE WITH THIS BILL
WOULD DO WOULD BE
ANOTHER EXAMPLE OF WHAT YOU HAVE NOW IS
THE CONSUMER IS POSSIBLY
LOOKING REPLACING AN OLDER UNIT HAVING
THE MONEY OR
THE AFFORDABILITY TO BE ABLE TO AFFORD WHEN THESE
NEW APPLIANCES HIGHLY EFFICIENT
; BURNS WOOD. ITS RENEWABLE ENERGY AND
IT SUPPORTS THREE GREAT BUSINESSES IN
NORTHWEST MINNESOTA WERE CURRENTLY HURTING
AND HAD TO LAY
OFF EMPLOYEES LIKE I SAID; INCLUDING MYSELF
. I
WAS FULL-TIME THERE FOR SEVEN YEARS. I'M NOW PART-TIME
THERE WERE WORKING COULD OBVIOUSLY
CENTRAL BOILER LEAVES THIS WOULD GO A LONG WAY TO HELPING
RURAL CONSUMERS.
THANK YOU. >> REPRESENTATIVE
GAROFALO: REPRESENTATIVE KIEL ANY
OTHER TESTIFIERS? >> REPRESENTATIVE KIEL: NO. I
BELIEVE NOT >>
REPRESENTATIVE GAROFALO: THIS IS A PUBLIC INPUT
ANY MEMBERS WISH TO TESTIFY IN FAVOR OF VOICE CONCERNS.
SEEING NONE; WILL CLOSE COMMENT PORTION
AND MOVE TO
MEMBERS QUESTIONS. QUESTIONS ON HOUSE FILE 917 A
S AMENDED?
REPRESENTATIVE FABIAN >> REPRESENTATIVE
FABIAN: REPRESENTATIVE KIEL THANK YOU FOR BRINGING THIS FOR.
CHRIS; THANKS FOR BEING HERE
TO TESTIFY.
YOU KNOW YOU REFERRED TO CENTRAL BOILER AS A SMALL
MANUFACTURING COMPANY
COULD BUY A LOT OF STANDARDS IT PROBABLY IS A SMALL MANUFACTURING COMPANY
WHEN THE CITY
OF GREENBUSH IN THE AREA IN ROSEVILLE COUNTY
THIS IS NO SMALL
COMPANY COULD THIS A GOOD COMPANY.
IT'S A MAJOR EMPLOYER IN THE AREA. THEY PROVIDE GOOD BENEFITS.
THE BRAZIERS ARE FANTASTIC EMPLOYERS AND ARE TRYING
REALLY HARDTO MAKE THESE THINGS.
I USE TO KEEP MY HOME WITH WOOD
BACK WHEN MY BOYS WERE HOME AND THEY COULD HELP ME WITH THE
-IS REFERRED TO AS THE
WEEKEND WOODPECKER. THAT'S WHAT WE CALLED OUR CIRCUIT WE GO OUT
ON WEEKENDS AND CUT WOOD AND STOKE THE
STOVE ON DURING THE WEEK BUT WHAT IS
THE COST YOU SAID IT'S UP ABOUT 30%.
CAN YOU WALK ME THROUGH A PROGRESSION
OF HOW THE NEW REQUIREMENTS
FOR EMISSIONS HAVE INCREASED
THE COST TO ME SOME ACTUAL
DOLLAR FIGURES? FOR THE CENTRAL
BOILER CLASSIC AND NOW YOU'VE MOVED ON TO THE NEWER ONES.
>> TESTIFIER: THE C
ENTRAL BOILER CLASSIC MODEL THAT WOULD BE THE OLDER TECHNOLOGY.
THAT WOULD NOT BE A
[INAUDIBLE] FURNACE. BEGINNING TO
BE THREE-$5000. LOOK AT THE NEW
CLASSIC EDGES SOME OF THE
NEW TECHNOLOGIES
STARTING AT 9500 POTENTIALLY UP TO
12;000 INCLUDING INSTALLATION COST.
>>
REPRESENTATIVE FABIAN: SO I RBC I
SUPPORT THIS FOR A VARIETY OF REASONS. BUT
THE OTHER THING I WANT TO POINT
OUT WAS THIS IS THE RESULT OF
PEOPLE WHO ARE TRYING TO USE
NATURAL RESOURCES
TO EAT THEIR HOPES TO THEIR SHOPS TO
EITHER GARAGE TO EAT THEIR BONDS AND
SO FORTH AND THESE ARE
RENEWABLE RESOURCES AND THEY TRIED TO DO THE RIGHT THING
AND NOW A LOT OF THESE PEOPLE
ARE GETTING PRICED OUT OF
THE MARKET AND IT'S NOT IMPACTING JUST THEM BUT IT'S
ALSO IMPACTING
OUR LOCAL MANUFACTURERS AND THE PEOPLE THAT WORK THERE. SO THANK YOU.
>> CHAIR GAROFALO: ANY OTHER QUESTIONS OR COMMENTS FROM REPRESENTATIVE OF THE COMMITTEE?
REPRESENTATIVE MAHONEY
>> REPRESENTATIVE MAHONEY: I'M LOOKING AT THE-THANK YOU
MR. CHAIR THIS IS
REPRESENTATIVE KIEL. I'M LOOKING AT THE
FISCAL NOTE AND IT'S GOT A
COST OF $1.9 MILLION A YEAR.
I LOOKED DOWN TOWARDS THE BOTTOM
IT SAYS THE AVERAGE PRICE
IS ESTIMATED 2700 PER UNIT FOR AN AVERAGE CREDIT OF $900.
I THINK I JUST HEARD NUMBERS AT THE PRICE OF THE UNIT IS MUCH MORE. SO WITH THE COST OF THIS PARTICULAR BILL
PER YEAR? >>
REPRESENTATIVE GAROFALO: >>
CHAIR GAROFALO: YOU HAVE A COPY OF THE REVENUE NOTE
REPRESENTATIVE KIEL
>> REPRESENTATIVE KIEL: I DO. I'M LOOKING AT RIGHT HERE.
>> REPRESENTATIVE GAROFALO: THE ON THE 1.9 MILLION IS OUR NEXT A COSTUMING OR WHAT IS
YOUR QUESTION REPRESENTATIVE MAHONEY. I DON'T UNDERSTAND.
>>
REPRESENTATIVE MAHONEY: I JUST HEARD THE NEW UNITS ARE; I
DIDN'T HEAR PERFECTLY
WITH THE WITNESS WAS SEEN THE ACTUAL COST
OF A NEW UNIT IS. BUT
I THOUGHT IT WAS MORE
THAN $2700. IF THEY'RE BASING THIS
FISCAL NOTE OFF OF $27
PER UNIT WHICH IS ABOUT THE PRICE
THAT MY CONSTITUENTS PAY FOR A NATURAL
GAS FURNACE I GUESS I'M
JUST WONDERING IS THIS FISCAL
NOTE CORRECT AT
AT 1.9 MILLION OR CLOSE TO IT AND IS THAT $2700
OR IS YOUR STATEMENT CORRECT?
>
> REPRESENTATIVE GAROFALO: IT'S ACTUALLY QUESTION FOR THE DEPARTMENT OF REVENUE BUT GO AHEAD MR.-
- >> TESTIFIER: I BELIEVE WHAT HAPPENS A LOT IS THERE IS
A WOODSTOVES AND THEN WILL
WE PRODUCE WE PRODUCE A
HYDRONIC HEATER. THIS COMPLETE DIFFERENT
[INAUDIBLE] SITS OUTSIDE YOUR HOUSE. THERE MAY THAT WAY BECAUSE A LOT MORE
SAFER. IN THE WINTER YOU ARE ABOUT TELL HER STORIES ABOUT PEOPLE HEATING THEIR HOMES WITH A WOOD
STOVE. SO FROM WHAT I'VE SEEN
JUNIOR PROGRAMS THAT LOOKS LIKE THE AVERAGE PRICE IS PROBABLY LOOKING AT A WOOD STOVE
RATHER THAN ONE OF OUR
RESIDENTIAL HEATERS. >> REPRESENTATIVE GAROFALO: THE ASSUMPTION IN THE REVENUE NOTE ARE
PROBABLY NOT THAT WE DON'T SAY
THEIR INACCURATE BUT THEY COULD USE
SOME REFINEMENT IN THE
TAX COMMITTEE. RIGHT NOW; THEY LIST THE AVERAGE
PRICE OF $2007
PER UNIT. THE ASSUMPTION THEY
USE. SO THAT'S A QUESTION
AFTER ANSWER. ANY OTHER QUESTIONS FOR MEMBERS OF
THE COMMITTEE?
REPRESENTATIVE SUNDIN >> REPRESENTATIVE SUNDIN: JUST A QUESTION TO THE
MANUFACTURING TESTIFIER. I'M JUST WONDERING
YOU MENTION THE SAFETY
ISSUE THERE. THESE UNITS ARE
STATIONED OUTSIDE
THE HOUSE ARE THE UL LISTED? I KNOW I'VE GOT
AN INSERT IN THE
FIREPLACE; WE CAN WOODPECKER AS
WELL BUT I'M JUST WONDERING ARE THOSE
UL LISTED? WHAT ABOUT THE
SAFETY CONCERN ABOUT THE SAFETY ISSUE?
>> TESTIFIER: THEY ARE
UL SAFETY LISTED. WI
TH MANUFACTURES RECOMMENDATION FOR SETTINGS AND THINGS
LIKE THAT. >>
REPRESENTATIVE GAROFALO: >> CHAIR GAROFALO:
REPRESENTATIVE ANDERSON
>> REPRESENTATIVE ANDERSON: I DID MAKE IT IN HERE.
I LOOKED INTO THIS A COUPLE YEARS;
TWO AND IF YOU DID MENTION THE
INCREASED REGULATION
WHILE I WAS GONE I APOLOGIZE FOR BEING
REDUNDANT BUTWHAT YOU HAVE TO MEET IN TERMS OF
MANUFACTURING SPECS FOR EMISSION CONTROL THINGS LIKE THAT IS THAT COMING
FROM EPA OR
FROM MINNESOTA POLLUTION CONTROL AGENCY.
>> TESTIFIER: THAT COMES FROM THE UNITED STATE
S EPA AND WHAT'S CALLED THE
NORSE SOURCE PERFORMANCE STANDARDS WHICH WERE ADOPTED IN 2015.
UNDER THE VOLUNTARY PROGRAM THAT WE
PARTICIPATED IN THAT'S WHEN WE WERE ABLE
TO ESTABLISH THE TESTING PROCEDURES TO GET
THE EPA UNDERSTAND HOW
THEY WORKED AND THEN MOST OF
THAT INCLUDED IN THE
FINAL REGULATION WHICH BECAME EFFECTIVE IN 2015.
>>
REPRESENTATIVE GAROFALO: REPRESENTATIVE MAHONEY AGAIN >>
REPRESENTATIVE MAHONEY: TO THOSE REGULATIONS ALSO INCLUDE
NATURAL GAS AND
ELECTRIC BOILERS AND
FURNACES BECAUSE I THOUGHT THEY DID.I THOUGHT THE
EPA PUT
HIGHER STANDARDS ON ALL HOME HEATING UNITS TO
THE TESTIFIER? >> TESTIFIER: YES. THIS WAS
SPECIFICALLY TOWARDS NEW
SOURCE PERFORMANCE FOR RESIDENTIAL
HYDRONIC HEATERS. WE WERE
SUBPART Q
COULD I THINK A WOODSTOVES WERE
SUBPART A. SO IT WAS HIS OWN
SEPARATE STANDALONE RULE. APART FROM-
>> REPRESENTATIVE MAHONEY: I BELIEVE ALL
THE HEATERS AND I'M A PIPEFITTER SO I KIND OF
DID A LITTLE BIT
OF THIS; I CAN SCRATCH THE SURFACE BUT IF I
REMEMBER RIGHT; ALL OF THE RESIDENTIAL HEATING
UNITS REQUIRED TO MEET HIGHER STANDARDS. NOW YOURS IS AN OMISSION STANDARD ISSUEBUT THAT
FALLS INTO CREATING A
HIGHER STANDARD. SO I GUESS WHAT
THIS IS IS A LOCAL BILL
WHICH I'VE DONE A COUPLE OF LOCAL BILLS MYSELF. I WANT EVERYONE TO KNOW
BUT THIS
IS NOT-YOU ARE NOT BEING PICKED ON BY
ONE GROUP. EVERYBODY GOT PICKED ON SO TO
SPEAKBY THE INCREASE IN
ENERGY EFFICIENCY. SO I WANT THAT
CLEAR HERE. BUT I WOULD
-I'M NOT ASKING ACTUALLY QUESTION ANYMORE
-MR. CHAIR; CAN YOU MAKE SURE THAT WE ALL GET
AN UPDATED FISCAL NOTE ON THIS WHEN THEY
USE THE RIGHT
DOLLAR FIGURE? >>
CHAIR GAROFALO: WHEN THIS GOES TO THE TAX COMMITTEE
AND EVENT GOING TO GO FOR A HEARING THERE WILL BE AN UPDATED REVENUE NOTE TO
REFLECT CHANGES.. IT'S ON A
REVENUE NOTE. MAKE SURE
AND ATTACHMATE MAKE IT THAT UPDATED
I THINK YOU SAVE ON TAXES AS
WELL; RIGHT? >> REPRESENTATIVE MAHONEY: NO.
I'M SORRY I GOT OFF TAXES WHEN
I SAID THROUGH A SIX HOUR HERE AND WITH ABOUT THEIR CHILDREN AND ANYTHING BUT THAT.
>>
CHAIR GAROFALO: GOTCHA. I'LL GET THAT TO YOU.
REPRESENTATIVE MUNSON >> REPRESENTATIVE MUNSON:
>> CHAIR GAROFALO:
REPRESENTATIVE MUNSON
. GOT HE'S A LITTLE BIT
REPRESENTATIVE MUNSON. ARE WE TO
GET A NAME TAG BY
THE WAY >>
REPRESENTATIVE MUNSON: MNLARS WILL HAVE IT BY
JUNE. [LAUGHING] I AM A LITTLE
CONCERNED ABOUT THE COST FOR
THE BILL SO
LOOKS LIKE THERE'S $5.7 MILLION EXPECTED
TO COST OVER THE NEXT
THREE YEARS. I THINK
THE NUMBER FROM THE DEPARTMENT
OF REVENUE IS PROBABLY ACCURATE BECAUSE
IT LOOKS LIKE ALL
BIOMASS HEATING WHICH IS THE
INTERNAL FURNACES IN ADDITION TO THE HYDRONIC
FURNACES OUTSIDE
. I USED TO HEAT MY HOUSE WITH AN OUTDOOR
WOOD BOILER FOR MANY YEARS SO
MY INSTALLATION WHICH I DID
MYSELF BUT JUST THE STUFF ALONE
CAUSE ME
EIGHT-$9000 SO CAN I GET AN ESTIMATED NUMBER OF UNITS
THAT THESE THREE
COMPANIES SELL THAT WOULD QUALIFY FOR
THIS CREDIT?
DO YOU HAVE ESTIMATES OF YOUR SALES NUMBERS?
>> TESTIFIER: I WOULD HATE
TO GUESS SINCE I WAS ONLY ONE OF
THE COMPANIES WITH THE TOTAL
NUMBERS ARE I KNOW IN THE
NEW SOURCE PERFORMANCE STANDARDS
RULEMAKING PROCESS IT WAS AN
ECONOMIC STUDY
DONE BY NEAR A CONSULTING THAT'S PART OF THE RECORD ON THE MSDS ONLY
THOSE NUMBERS WOULD BE
IN THERE IN THE ESTIMATED NUMBERS OF HOW MANY WERE
OUT THERE. THAT'S PROBABLY THE BEST WEIGHT
I COULD REFER
YOU TO.. >>
CHAIR GAROFALO: REPRESENTATIVE MUNSON
A FELLOW? >> REPRESENTATIVE MUNSON: NO
THANK YOU >> CHAIR GAROFALO: SEE
NO FURTHER COMMENTS OR QUESTIONS
REPRESENTATIVE KIEL FOR
THE COMMENTS >>
REPRESENTATIVE KIEL: I WANT TO REMIND MEMBERS OF THERE'S
ABOUT 250;000
MINNESOTANS THAT DON'T HAVE ACCESS TO
NATURAL GAS AND IF YOU DON'T HEAT
WITH GAS IN RURAL MINNESOTA
YOU LOOK YOUR LEFT
WITH FUEL PROPANE OR WHAT
IT WOULD BEING A FARMERS IS LIKE MY PRODUCT
ITS RENEWABLE AND PLENTIFUL
IN MINNESOTA SO SOMETHING THAT WE
CONSIDER USING OFTEN AND MANY
PEOPLE LIKE REPRESENTATIVE
FABIAN SAID CAN GO OUT AND
SHOP WOULD AND A
GOOD SOURCE A GOOD WAY TO CLEAN UP OUR
NATURAL RESOURCES WHEN THEY NEED TO BE. SO WITH THAT MEMBERS I HOPE YOU
CONSIDER THIS AND
WOULD SUPPORT THIS BILL GOING THE
TAX COMMITTEE. >>
CHAIR GAROFALO: REPRESENTATIVE FABIAN NEW'S MOTION HOUSE FILE 917 BE RECOMMENDED TO
PASS IN GO TO THE TAX COMMITTEE. ALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.] OPPOSED; NAY. THE MOTION PREVAILS.
>> [GAVEL] >> CHAIR GAROFALO: YOU ARE ON YOUR WAY TO THE TAX COMMITTEE.
REPRESENTATIVE FABIAN HOUSE FILE 1535. MINUS AND WE ARE ACTUALLY GOING TO BE LANE IS OVER TO THE NOT GOING TO BE SENATE TO TEXAS OH
REPRESENTATIVE FABIAN''S
HOUSE FILE 1535 FOR POSSIBLE INCLUSION NO LATER BUILT
OR PERHAPS LATER ACTION BY
THE COMMITTEE. REPRESENTATIVE FABIAN ALSO MOVE THE A-
ONE AMENDMENT TO GET THE BILL
QUICKEST CONFORMING
MORE ACCURATE
WAY. ANY DISCUSSION ON THE A-
ONE AMENDMENT? SEEING NONE; ALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.] OPPOSED; NAY. THE MOTION PREVAILS. >> [GAVEL] >> CHAIR GAROFALO: THE BILL
AS AMENDED REPRESENTATIVE FABIAN TO
YOUR BILL AS AMENDED FOR POSSIBLE INCLUSION IN A
LETTER BILL. >> REPRESENTATIVE FABIAN: I LIKE TO INTRODUCE
JEFF WASHBURN HERE TO HELP WITH
THE TESTIMONY. AS MOST PEOPLE KNOW
IN MUCH OF THE STATE
OF MINNESOTA PARTICULARLY IN
RURAL MINNESOTA OVER WE DO HAVE SOME GROWTH
GOING ON THERE SOME ISSUES WITH REGARD TO
WORKFORCE HOUSING
AND WE HAVE SEEN THAT A NUMBER OF COMMUNITIES AROUND THE STATE
. THIS IS ANOTHER ATTEMPT ON MY PART
AND OTHERS TO SEE IF WE CAN'T HELP TO
MAKE SOME MORE WORKFORCE
HOUSING AVAILABLE TO
DIFFERENT ENTITIES AND WHAT WE ARE DOING IN THE BILL IS BASICALLY
IF YOU TAKE A LOOK AT
THE BILL THE UNDERLINED THINGS WE ARE MAKING THREE FAIRLY MINOR CHANGES
TO IT IN TERMS OF POLICY WE
ARE INCLUDING CITIES AND LOCAL
GOVERNMENTS AND YOU CAN
SEE THAT AND WE ARE ALSO DOING LOANS IN ADDITION TO GRANTS
AND THAT'S THE MAIN PART OF
THIS BILL RELATING TO THIS COMMITTEE
. WHEN WE GET TO TAXES AND WE WILL HAVE TO SIT DO SOME OTHER
THINGS THERE AND THERE WAS SOME
TECHNICAL ERRORS ON HOW THE BILL
WAS DRAFTED SO THAT'S PART OF THE
REASON WHY IT'S BEEN LAID OVER TODAY AND I'M
GUESSING STAFF CAN WALK US THROUGH SOME OF THAT.
OBVIOUSLY; THIS IS A BILL WE HAD LAST YEAR SO
THE 8-1 AMENDMENT IS TO UPDATE THE DATES THAT ARE IN LAST YE
AR'S BILL THAT'S THE REASON FOR
THAT. SO
>> CHAIR: THANK YOU.
ANY TESTIFIERS OR ANYONE THAT WOULD LIKE
TO TESTIFY>> REPRESENTATIVE FABIAN: YES. I'VE JEFF WASHBURN HERE HE LIKE TO TALK TO THE BILL. >> CHAIR:
WELCOME TO THE COMMITTEE. PLEASE TAKE YOUR NAME FOR THE RECORD. >> TESTIFIER:
THANK YOU. MY NAME IS
JEFF WASHBURN ON THE SECOND DIRECTOR
OF THE >> REPRESENTATIVE LIEBLING: AM ALSO MEMBER OF AFFILIATED
ORGANIZATION CALLED WORKFORCE
HOMEOWNERSHIP AS REPRESENTATIVE FABIAN HAD MENTIONED
WE BEEN WORKING ON THIS FUND FOR THE LAST
FEW YEARS LOOKING TO CREATE A DEDICATED SOURCE
OF AFFORDABLE
HOMEOWNERSHIP DOLLARS THAT WOULD
COME FROM A CAPTURE OF GROWTH THE
MORTGAGE REGISTRY
AND TAX FOR A DURATION OF 10 YEARS
TO ESSENTIALLY WHAT WE PROJECTED
TO DOUBLE THE NUMBER OF AFFORDABLE HOMEOWNERSHIP UNITS ACROSS
THE STATE WITH AN EQUAL AMOUNT OF
THOSE UNITS BEING PLACED IN THE
METRO AREA AND EQUAL TO
GREATER MINNESOTA THIS GROUP IS
AFFILIATED WITH-AFFILIATION OF
CHAMELEON TRUSS
HABITAT ORGANIZATIONS COMMITTEE
ACTION PROGRAMS ACROSS THE STATE;
MANUFACTURED
HOUSING ORGANIZATIONS AS WELL AS
SEVERAL NONPROFIT AFFORDABLE
HOMEOWNERSHIP DEVELOPERS
AND PROVIDERS ACROSS
THE STATE AND I THINK ESPECIALLY
AS REPRESENTATIVE SHARED;
THERE'S CHALLENGES
THAT DIFFER ACROSS EACH OF OUR
COMMITTEES BUT THESE FUNDS WOULD MAKE A
SIGNIFICANT IMPACT IN OUR ABILITY TO SERVE OUR HOUSEHOLDS
AND EACH OF THOSE
COMMITTEES IS BEST WOULD BE SIR. JUST A COUPLE OF QUICK ITEMS TO NOTE
IS THAT
OUR ORGANIZATION WE DID SOME WORK WITH UNIVERSITY
OF MINNESOTA AND THROUGH
THEIR RESEARCH THEY SHARED THAT
OUR ORGANIZATIONS HAVE
THE ABILITY AND WE ARE CURRENTLY SERVING A
TO ME HOUSEHOLDS OF
THE RATE THAT SOMETIMES GREATER THAN WHAT THE LOCAL MARKETS
ARE SERVING AND ESPECIALLY IN A STATE THAT HOVERS UNFORTUNATELY
TOWARD THE TOP OF THE BOTTOM HOWEVER YOU LOOK
AT IT OF THE DISPARITIES ACROSS THE NATION
RELATED TO THE DIFFERENCES BETWEEN WHITE AND COMMITTEE OF COLOR HOMEOWNERS WE BELIEVE THIS IS
JUST A REALLY GOOD INVESTMENT. IF IT'S WORKING
AND WERE
ALREADY PERFORMING AT SEVEN TIMES THE LOOK RATE OF
LOCAL COMMUNITIES
SEEMS LIKE A GREAT OPPORTUNITY FOR US TO
DOUBLE DOWN
AND TRY AND CHIP AWAY AT THAT HUGE DISPARITY
THAT
EXISTS.. ADDITIONALLY; WHILE
THIS IS WITH DOUBLE THE AMOUNT OF FUNDING FOR AFFORDABLE OWNERSHIP WE ESTIMATE
THIS INCREASE REALLY ON AN
ANNUAL BASIS THE GROWTH WOULD
EQUATE TO SOMEWHERE
BETWEEN FOUR-$39 A YEAR WHICH IS A LOT OF MONEY BUT RELATIVE TO THE INVESTMENTS MADE BY THE STATE HOUSING FINANCE AGENCY
THE AMOUNT INVESTED HOMEOWNERSHIP RELEASE A SMALL AMOUNT
THIS EFFECTIVELY WITH DOUBLE THE AMOUNT THAT WE WOULD BE ABLE TO APPLY FOR A ON AN ANNUAL BASIS
AND ADDITIONALLY FREE UP ADDITIONAL DOLLARS FOR OTHER INVESTMENTS ACROSS
THE HOUSING SPECTRUMS WE DO SEE THIS AS
A WIN-WIN FOR THE COMMUNITIES WE
ARE SERVING
IN THE HOUSE WAS WERE ABLE TO ASSIST
INTO HOMEOWNERSHIP. >> CHAIR: THANK YOU FOR YOUR TESTIMONY MR. WASHBURN. ANY OTHER TESTIFIERS REPRESENTATIVE
FABIAN TODAY FEBRUARY I DO
NOT; NO. >> CHAIR: ANYONE IN THE PUBLIC THAT WOULD LIKE TO TESTIFY IN THIS BILL?
SEEING THAT THEY'RE NOT ANY ANY MEMBER QUESTIONS?
REPRESENTATIVE DAVNIE >>
REPRESENTATIVE DAVNIE: JUST A NOTE TO
REPRESENTATIVE FABIAN YOU INTRODUCE THIS AS A
-NOT SURPRISING EMPHASIS ON
GREATER MINNESOTA.
I'M HOPING THAT THIS IS A BILL THAT THE
METRO AREA AND THE URBAN
CORE CAN WORK TOGETHER WITH YOU
AND I THINK BACK TO THE SUBPRIME MORTGAGE
LENDING MILLTOWN
AND THE; I FORGET
THE NUMBER; HUNDREDS OF MILLIONS OF DOLLARS
IN ASSETS THAT WERE STRIPPED FROM LOW
INCOME HOMEOWNERS IN THE
URBAN CORE AND THAT'S A
MULTIGENERATIONAL PROBLEM. THAT FILLING OUT DOES NOT HAVE
THAT HOME TO FOR INSTANCE TAKE A LOAN AGAINST TO HELP
THEY COULD GET INTO COLLEGE.
IT DOESN'T HAVE THAT HOME AS
AN ASSET IS THE OWNERS ARE LOOKING TOWARDS RETIREMENT GET IT DOESN'T
HAVE THAT HOME AS AN ASSET TO
BUILD FROM. I APPRECIATE THE
FOCUS ON BUILDING HOMEOWNERSHIP AND
UTILIZING ORGANIZATIONS;;
VENTRESS HABITAT COMMITTEE
ACTION PARTNERSHIPS. WE KNOW HOW TO DO THIS WORK ALREADY. THERE'S NOT A LEARNING CURVE. THEY KNOW HOW TO DO THIS WORK AND THEY KNOW HOW TO DO IT WELL. SO AGAIN I'M HOPING THAT WE CAN WORK TOGETHER
ON THIS IS A STATEWIDE INITIATIVE.
THANK YOU.
>> CHAIR:
REPRESENTATIVE FABIAN B FABIAN THIS IS IN
THIS WORKFORCE
HOMEOWNERSHIP FUND AS A COMPLEMENT TO THE ASSISTING PROGRAMS OVER IT IN HFA.. TO
THEIR GRANT CHALLENGE PROGRAM AND SO FORTH I
DON'T KNOW ALL THE EXACT THINGS INS AND OUTS OF THAT BUT I DO KNOW; TOO; THAT HERE WE ARE LOOKING
AT ROUGHLY 60-40 SPLIT I'M
SURE MR. WASHBURN CAN MAYBE ADDRESS THAT A LITTLE BIT MORE
CLOSELY BUT YES; WE ARE DEFINITELY
LOOKING HERE AND OF COURSE
ALSO OUTSIDE COULD I WAS
LOOKING UP SOME OF THE STATUTES
AND SO FORTH IT SPECIFICALLY
ADDRESSES METROPOLITAN
NONMETROPOLITAN AREAS AND OF
COURSE METROPOLITAN IS DEFINED
IN STATUTE AS A SEVEN COUNTY
METRO AREA. THANK YOU FOR YOUR HELP ON THAT. I
APPRECIATE THAT. SO; YES; WE ARE DEFINITELY FOCUSED.
I DON'T KNOW
BUT TICKLY WHAT I'D LIKE IN THE METROPOLITAN AREA DOING WORKFORCE HOUSING BUT IN RURAL MINNESOTA IT'S
EXTREMELY DIFFICULT I
DON'T KNOW ALL THE INS AND OUTS BECAUSE OF SOME OF THE DIFFERENT PROGRAMS AT
MF HA BUT I'VE HEARD OVER AND
OVER AGAIN A PEOPLE WHETHER THEY'RE IN COMMUNITY ACTION OR WAS THE CITY OR WAS A BUSINESS WERE TRYING TO DO THESE
DIFFERENT PROJECTS THEY ARE JUST
SO-SO COMPLICATED SO WE ARE TRYING TO THROUGH THE WORKFORCE
HOMEOWNERSHIP FUND WE ARE TRYING TO STREAMLINE SOME OF
THE PROCESS
. IN 16 TO WAS A SMALL INFUSION OF CASH
OF $750;000 PUT INTO THIS
NEW PROGRAM IN HFA RECEIVED OVER
$6 MILLION IN REQUESTS FOR THE 750.
SO IN THIS BILL WHAT WE ARE TRYING TO DO IS CAPTURE SOME OF
THE GROWTH
IN THE DEED AND REGISTRY TAX THEM
SURE WHEN WE GET TO TAXABLE OF
A FAIRLY LENGTHY DISCUSSION ABOUT
THAT. SO I'M WILLING TO DO THAT.
I UNDERSTAND WHERE WE ARE AT HERE AND WHAT WERE
DOING BUT THIS IS KIND OF THE
OPENING SALVO. >> CHAIR: THANK YOU.
REPRESENTATIVE MAYE-QUADE >> REPRESENTATIVE MAYE
QUADE: REPRESENTATIVE FABIAN I ENJOY
YOUR BILL.
I DON'T CONSIDER AND TALK AND TALK ABOUT THIS IN PARTICULAR I WANT TO COME BACK TO SOMETHING MR. WASHINGTON CAN BACK TO TALK ABOUT. WE
TALK ABOUT
THAT IN THHIS COMMITTEE WITH THE DISPEL HIGHS DISPARITIES IN THE
NATION AND I WOULD NEVER WANT TO AMEND
YOUR BILL TO MAYBE HAVE
LIKE SPECIFIC TARGET AMOUNTS
OF CERTAIN FOLKS TO
GET FILMS [INAUDIBLE] BUT I WAS WONDERING IF THAT CAN BE PART OF THE REPORT BACK TO
THE LEGISLATURE
. HE TALKED A LITTLE BIT ABOUT MR. WASHBURN ABOUT THE WORK THAT'S
BEEN DONE GETTING PEOPLE OF COLOR
INTO HOMES
REPRESENTATIVE FABIAN WHEN YOU DO THIS REPORT
SUBDIVISION SIX; I WAS WONDERING IF I COULD BE PART OF THE ROOF REPORTS WE CAN SEE
THIS IS LEAN FORWARD
IN ADDRESSING THE RACIAL DISPARITIES IN HOMEOWNERSHIP? >> REPRESENTATIVE FABIAN:
I DON'T KNOW WHY YOU COULDN'T BE WE CAN TALK TO HIM HFA AND SEE
AND MAYBE THEY
ALREADY DO THAT. I'M NOT EXACTLY SURE.
>> CHAIR:
REPRESENTATIVE MAYE-QUADE>> REPRESENTATIVE MAYE QUADE: I WOULD JUST
LOVE TO WORK WITH YOU ON A. THANK YOU.
>> CHAIR:
REPRESENTATIVE FABIAN IN A WORD
ON THAT >> REPRESENTATIVE FABIAN: ONE
OTHER THING
>> CHAIR: THE FINAL WORDS
OR COMMENTS >> REPRESENTATIVE FABIAN: OTHER THING I WANT TO POINT OUT IS THE
GROWTH IN THE DEED REGISTRY TAX THE GROWTH IS ALWAYS MEASURED AGAINST THE PREVIOUS YEAR. THERE'S NO BASE YEAR THAT'S BEING USED
IN ITS ALKYLATE ON TOP OF ITS WHATEVER WAS FROM THE PREVIOUS YEAR. >> CHAIR:
REPRESENTATIVE MAHONEY >> REPRESENTATIVE MAHONEY:
THANK YOU MR. CHAIR. I AM SURPRISED THERE WAS A NO OPPOSITION FROM THE REALTORS BECAUSE EVERY TIME-EVERY OTHER TIME THAT WE TRY TO DO SOMETHING
THE TAX THEY COME
DOWN HERE; THEY ARE A VERY
VOCAL AND ANOTHER EUPHEMISM BUT I BETTER NOT USE IT. SO
I HOPE THEY FOLLOW THROUGH ON THAT ONE
ANY OF THE NEXT TIMES WE GO AFTER THE DEED TAX AND
MORE CONTACTS ; MORTGAGE FEES. I'VE
TWO QUESTIONS TO THE TESTIFIER; YOU
TALKED ABOUT FREEING UP OTHER FUNDS AND THAT IS A WORRY FOR
ME AND SO
CAN I ASK YOU WHAT YOU MEANT BY FREEING UP
OTHER FUNDS?
>> TESTIFIER: WHAT I MEANT BY
THAT IS
EACH YEAR THE STATE HOUSING
FINANCE AGENCY IS A POOL OF FUNDS
. IT'S GOING TO CALL THE IMPACT
FUND AND BOTH MULTIFAMILY OR
RENTAL HOUSING AND AFFORDABLE HOMEOWNERSHIP
ORGANIZATIONS PUT IN APPLICATIONS FOR
THOSE FUNDS. MY HOPE WOULD BE--THIS IS JUST
A HOPE-THAT PIPE MAYBE GETS A LITTLE BIT BIGGER
SO THAT WE ARE STILL ABLE TO DOUBLE
THE AMOUNT OF AFFORDABLE OWNERSHIP
UNITS THAT WERE ABLE TO DO THROUGH A DEDICATED SOURCE OF
FUNDS AND
THE AGENCY WOULD CONTINUE TO INVEST IN
THE OTHER
PORTABLE HOUSING ASPECTS OF THE FOUR HOUSING SPECTRUM.
SPEAKING FOR THE OWNERSHIP SIDE
[INAUDIBLE] END OF THE SPECTRUM THERE'S ALWAYS A. SPEAKING OF MY OWN ORIENTATION WE COULD EASILY DOUBLE THE NUMBER OF HOUSEHOLDS WE SERVE AND I THINK MY LOT OF COLLEAGUES ARE WORKING
ON THIS WITH SAY THE SAME BUT I
ALSO BELIEVE FOLKS AT WORK ON
HOMELESSNESS ISSUES WERE ON
AFFORDABLE RENTAL WEEKLY SAY THE SAME THING. SO THERE
HASN'T BEEN-THERE CONTINUES NOT BE ENOUGH TO SERVE
THE CONSTITUENTS AND RESIDENTS OF
OUR COMMUNITIES AND
I THINK THAT THE MORE WE CAN PUT INTO
AFFORDABLE HOUSING AS
A WHOLE ACROSS THE STATE IS A
GOOD THING FOR OUR STATE
AND ESPECIALLY IN WAYS WE C
AN CREATE OPPORTUNITIES
FOR HOUSEHOLD TO BETTER THEMSELVES AND HIM IS CREATE A CONTINUUM
THAT IS SO VERY IMPORTANT TO
LOOK AHEAD AS TO WHERE AND
AFFORDABLE HOUSEHOLD IS CURRENTLY IN AFFORDABLE RENTAL
IF THEY CAN MOVE FORWARD
WITH INTEGRATED SPIRITUAL UP THAT CONTINUUM AND SO
OFTEN IT'S TOO DAUNTING OF A JOB TO GO FROM AN AFFORDABLE RENTAL
MARKETPLACE RENTAL OR CLEARLY
TO OWNERSHIP WHAT WE ARE TRYING TO IS GREAT THOSE STEPS
FOR THEM TO BE ABLE TO
ACHIEVE THAT. >>
REPRESENTATIVE MAHONEY: WELL INTO THE AUTHOR OF THE BILL; YOU MIGHT WANT
TO CONSIDER SOME WORDING IN
HERE THAT WHAT'S THE TERM; IS
IT SUPPLEMENTS; NOT
SUPPLANT FUNDING THAT'S ALREADY IN PLACE
; BUT THAT'S NEITHER HERE NOR THERE. THE OTHER PIECE THAT I HAVE FOR THE AUTHOR IS
MINNESOTA HOUSING FINANCE AGENCY
HAS SOME PROBLEMS WORKING WITH THE
MANUFACTURED HOUSING IS THAT CAN BE A CONCERN AND IF IT IS HAVE YOU
FIGURED OUT A WAY TO ADDRESS THAT IN YOUR
PARTICULAR 1535? THIS IS FOR
THE AUTHOR. >>
REPRESENTATIVE FABIAN: WE DO HAVE THAT.THERE IS
REFERENCES TO THAT IN
THE BILL I'M LOOKING FOR WE WE HAVE THE
HAVING COMMITTED? TIME
REPRESENTATIVE MAHONEY >> REPRESENTATIVE MAHONEY:
MR. CHAIR AND THIS IS TO
REPRESENTATIVE FABIAN IN THE
PAST [INAUDIBLE] HAS SOME RULES
IN IT THAT MAKE IT
MORE DIFFICULT TO WORK WITH
MANUFACTURED HOUSING AND TO
FINANCE IT. I'M NOT SURE HOW
THIS BILL CHANGES THAT
WERE MAKES TAKES THAT AWAY FROM AS A
IMPEDIMENT TO FINANCING
MANUFACTURED HOUSING;; WHICH;
FRANKLY; IS
-THAT'S A THIRD THE PRICE OR HALF THE PRICE OF A
STICK HOME AND IS
WAY MORE AFFORDABLE FOR SOME PEOPLE LOOKING FOR A LONG-TERM
STABLE HOME TO
STAY IN AND RAISE THEIR FAMILY IN AND
RETIRE IN.. SO; IN YOUR BILL IF YOU DON'T
HAVE IT AND IF WE CAN FIND IT THAT'S FINE; BUT IF YOU DON'T HAVE IT
THAT IS SOMETHING THAT YOU PROBABLY NEED TO PUT IN HERE
THAT ALLOWS
THIS FUND OR ANY OF THEIR FUNDS REALLY; WE
WOULD HOPE; TO BE USED ON
MANUFACTURED HOMES
SO THAT THEY COULD
FINANCE THEM IN SOME FASHION OR ANOTHER BECAUSE RIGHT NOW IT'S
VERY DIFFICULT FOR HOUSING FINANCE TO
DO THAT AND IT SHOULD
NOT BE. >> REPRESENTATIVE FABIAN:
REPRESENTATIVE I APPRECIATE YOUR COMMENT I BELIEVE THAT STUFF CAN HELP OUT HERE ON
LINE 1.20 RESIDENTIAL HOUSING
I BELIEVE INCLUDES
MANUFACTURED HOMES. I APOLOGIZE FOR
PUTTING STUFF ON THE SPOT
>> STAFF:
HOUSE RESEARCH. >>
CHAIR: PROCEED >> STAFF: I WOULD HAVE TO LOOK INTO THAT FURTHER BUT I COULD BE BACK TO THE COMMITTEE ABOUT THAT.
>> REPRESENTATIVE FABIAN: IF BY CHANCE
IT DOES GLUE THEM WE CAN MAKE SOME ADJUSTMENTS TO
GET THAT. >>
REPRESENTATIVE MAHONEY: IN MY SHORT TIME
IN TRYING TO FIGURE OUT HOUSING I
SUSPECT THAT DOESN'T
COVER IT AND I WASN'T TRYING
TO QUESTION OR SHOOT DOWN YOUR BILL BUT TRY TO
GET YOU TO
DO IS TAKE A LOOK AT IT AND FIGURE OUT A WAY TO
MAKE SURE
THAT YOUR BILL ADDRESSES MANUFACTURED HOUSING
BUT USUALLY IN
GREATER MINNESOTA BECAUSE
THAT IS GOING TO BE A
PORTABLE HOUSING AND WE SHOULD ALLOW PEOPLE TO
GET
STATE HELP TO FINANCE IT. I DON'T THINK THE BILL ADDRESSES IT SO MASKING YOU TWO THINGS
MAKING SURE THAT THIS MONEY
DOESN'T GET HAVING IS USED
TO SUPPLANT OTHER MONEY
AND; TWO; MAKE SURE THAT MAKE
MANUFACTURED HOUSING IN SOME WAY OR ANOTHER WE ADDRESS
THAT ISSUE
AND ALLOW MINNESOTA HOUSING FINANCE AGENCY
TO FINANCE
MANUFACTURED HOUSING PARTICULAR IN GREATER MINNESOTA
. THE METRO AREA THAN ON COUNTY
METRO AREA
; I HAVE A COUPLE OF THE THINGS THEY'VE DONE OVER THE MANUFACTURED HOUSING
IN THE METRO AREA HAS BEEN KIND OF
DISGUSTING BUT
I THINK IT'S A BIG ISSUE FOR
GREATER MINNESOTA. SO JUST ASK YOU TAKE A LOOK AT THAT AND SEE IF THERE'S A WAY YOU CAN
WORK IT INTO YOUR BILL BETWEEN HERE
AND TAXES. >> REPRESENTATIVE FABIAN: I
WILL.. [INAUDIBLE] SO I'M SURE WE'LL TAKE A LOOK AT THAT.
>> CHAIR: MEMBERS FOR
THE QUESTIONS?
SEEING NONE; REPRESENTATIVE FABIAN FINAL WORD
>> REPRESENTATIVE FABIAN: COUPLE THINGS WILL QUICKLY GET
THIS AS I SAID IS VERY
DIFFICULT SITUATION
SEVERAL MINNESOTA
WE HAVE THE BENEFIT RIGHT NOW LOOK AT SOME MAJOR
EXPANSION COULD IN SEVERAL COMMITTEES
ACTUALLY SURROUNDING THE
CITY OF DEEP RIVER FALLS WITH A DIGIT KEY EXPANSION IS
GOING ON.
I THINK THE OTHER THING TO POINT OUT IF YOU LOOK IN THE BILL LINE
2.10 2.2 TALK TO LOCAL CONTRIBUTIONS
NONSTATE RESOURCES YOU KNOW HAVING AN ADVANTAGE IN THE GRANT PROCESS
AND THEN THE OTHER THING TO
REPRESENTATIVE DAVNIE
AGENCY SHALL ATTEMPT TO MAKE LOANS
AND GRANTS TO EQUAL AMOUNTS
TO APPLICANTTS OUTSIDE AND WITHIN A METROPOLITAN AREA. REALIZING
YOU CAN'T GET AN EXACT SO THAT'S WHERE THE LANGUAGE
WAS DRAFTED THAT WAY AND 16.
>> CHAIR: ALL RIGHT. WI
TH THAT REPRESENTATIVE FABIAN RENEWS HIS MOTION TO LAY THIS
BILL OVER FOR FUTURE CONSIDERATION.
>> [GAVEL] >> CHAIR: NEXT MEMBERS I BELIEVE WERE MOVING ONWARDTO
REPRESENTATIVE CHAIR GAROFALO.
[INAUDIBILE / OFF MIC].
>> REPRESENTATIVE GAROFALO:
OKAY SO MEMBERS NEXT ON
THE AGENDA IS WE HAVE
AN OVERVIEW OF THE DULUTH STEAM PLANT
GET MEMBERS THIS IS A
PROJECT THAT WE HEARD BEFORE THE COMMITTEE LAST YEAR. IT WAS
ORIGINALLY CONTAINED IN THE
HOUSE POSITION AS PART OF THE END OF
SESSION NEGOTIATIONS ENDED UP RECEIVING
A GRANT THROUGH THE NOW REFORMED
RENEWABLE DEVELOPMENT ACCOUNT
AND SO WE ARE GOING TO DO A QUICK OVERVIEW ON WITH THE
PROJECT STANDS
IN FUNDING AND WE WILL GO FROM THERE. SO WELCOME TO THE COMMITTEE.
PLEASE; STATE NAME FOR THE RECORD AND PROCEED WITH YOUR TESTIMONY. >> TESTIFIER: THANK YOU MR. CHAIR
AND MEMBERS. LIVE OLSEN AND JUST WANT TO SAY THANKS FOR THE OPPORTUNITY
TO DISCUSS THE WORK OF UPDATING
THE DULUTH STEAM SYSTEM AND CONVERTING THE SYSTEM TO A MORE EFFICIENT HOT
WATER SYSTEM. BY WAY OF REVIEW THIS IS A $4
MILLION PROJECT IN THE 2017 REQUEST WAS FOR
21 MILLION AND AS THE
CHAIR MENTIONED
THE CAPITAL BUDGET BILL FROM LAST
SESSION INCLUDED 15 MILLION FROM THE RENEWABLE DEVELOP INTO ACCOUNT
TO BEGIN THE WORK OF
THE PROJECT SO THINGS ARE
MOVING FORWARD. YOU WILL HAVE A CHANCE TO HEAR THAT AND WE ALSO
ARE REQUESTING
7 MILLION STATE FUNDS THIS YEAR TO COMPLETE
THE FUNDING PACKAGE FOR
THE PROJECT I HAVE A BILL HOUSE
FILE 310 REPRESENTED THE FULL REQUEST FROM LAST YEAR IN THE FORM OF APPROPRIATIONS FUND
AND ULTIMATELY; WE WILL NEED TO AMEND
THAT BILL TO REDUCE THE REQUEST FOR ME 21 TO THE
NOW REMAINING 7 MILLION
IN SO CHAIR GAROFALO WILL
VISIT YOU WITH YOU AT A LATER TIME
HOW WE PROCESS THAT REQUEST AND GET IT ONTO CAPITAL INVESTMENT.
SO I HAVE WITH ME MAYOR
EMILY LARSON DAVID MONTGOMERY; THE CITY'S CHIEF
ADMINISTRATIVE OFFICER TO TALK ABOUT THE STEAM PLANT PROJECT WHERE THINGS STAND IN TERMS OF THE PROJECTS DEVELOPMENT. THANK YOU.
>> CHAIR GAROFALO: WELCOME TO
THE COMMITTEE. THEY NAME FOR THE RECORD AND BEGIN YOUR TESTIMONY
>> TESTIFIER: MY NAME IS
EMILY LARSON
THAT I SERVE THE CITY OF DULUTH
AS MAYOR I AM REALLY GRATEFUL TO BE HERE TODAY SO FIRST OF ALL THANK YOU FOR YOUR INVESTMENT LAST YEAR TO GIVE YOU A LITTLE OVERVIEW AND WE WILL INVITE
DAVE MONTGOMERY CHIEF ADMINISTRATIVE OFFICER TO PROVIDE A LITTLE MORE INFORMATION.
THANK YOU FOR GIVING US TIME BEFORE YOUR
COMMITTEE TODAY TO BRING YOU UP
TO SPEED. UNDER DULUTH STATE
THAT PART OF OUR STEAM SYSTEM SERVES ALL OF OUR GREATER DOWNTOWN DISTRICTS
HEATING NEEDS. MUCH OF THIS INFRASTRUCTURE
IS NOW IN EXCESS OF 80
YEARS OLD AND IS IN DESPERATE NEED
OF REPLACEMENT.
AS WE UPGRADE THE SYSTEM WERE CONVERTING FROM STEAM TO HOT WATER WHICH IS MUCH MORE EFFICIENT
THE PROJECT IS ALSO BEING COURTED
WITH ANOTHER MAJOR
INFRASTRUCTURE PROJECT IN THE CITY
OF DULUTH; THE REPLACEMENT OF OUR
MAIN STREET TO DOWNTOWN.
SUPERIOR STREET.
THIS IS TRULY A ONCE IN A GENERATION OPPORTUNITY
TO MAKE
A FUNDAMENTAL IMPROVEMENT TO
OUR INFRASTRUCTURE. ONCE THE SUPERIOR STREET PROJECT IS COMPLETED IT WOULD BE
TRULY IMPRACTICAL FOR US TO REPLACE AND IMPROVE THE DISTRICT HEATING SYSTEM WITHOUT UNDOING ALL OF THE IMPORTANT AND
EXPENSIVE WORK OF REPLACING
SUPERIOR STREETS.
THE CONVERSION FROM STEAM TO HOT WATER IS GOING
TO DRAMATICALLY INCREASE THE EFFICIENCY OF OUR
SYSTEM CREATING 350° STEAM FOR
THE CURRENT ONE THROUGH SYSTEM
DIVIDES ABOUT 40% EFFICIENCY.
WITH OUR UPGRADE TO HOT
WATER HEATED TO 250° WE
WILL ACHIEVE 67% EFFICIENCY BY CREATING
A CLOSED LOOP SYSTEM WHICH WILL ALLOW FOR THE RECAPTURE
OF WATER TO BE REHEATED
AND SENT BACK TO THE SYSTEM RATHER
THAN HAVING THAT STEAM COOL
AND CONDENSED
BE CHANNELED THROUGH THE WASTEWATER SYSTEM FOR TREATMENT AND DISCHARGE
RIGHT BACK INTO
LAKE SUPERIOR. IN TOTAL WE WILL REDUCE
WATER CONSUMPTION OUR
SYSTEM BY 20 MILLION GALLONS PER YEAR.
I KNOW YOU WILL WANT TO HEAR
ABOUT WORKING IN THE PROJECT SO
MANY WHITE DAVID MONTGOMERY WITH US TO SHARE WITH YOU SOME OF THE PROGRESS
YOU'VE SEEN IN THE WORK THAT WE HAVE BEEN UNDERTAKEN IN THE
COMING MONTHS WITH A PHASE 1 FUNDING
THAT WAS SECURED IN 2017.
WITH THAT LIKE TO TURN IT OVER TO
MR. MONTGOMERY. >> CHAIR GAROFALO:
GOOD AFTERNOON. WELCOME TO
THE COMMITTEE.
PLEASE STATE NAME FOR THE RECORD AND BEGIN
YOUR TESTIMONY
>> TESTIFIER: MY NAME IS DAVID MONTGOMERY CHIEF ADMINISTERED OFFICER FOR THE CITY OF DULUTH.
MR. CHAIRMAN MEMBERS OF
THE COMMITTEE;
THANK YOU AGAIN FOR HAVING US HERE AND UPDATING YOU ON THE PROJECT.
I WANT TO TELL YOU ABOUT WHAT WE
HAVE ACCOMPLISHED SINCE THE
2017 SESSION. AND HOW WE ARE PROCEEDING WITH THE WORK ON THE CONVERSION OF OUR STEAM SYSTEM
TO A HOT WATER SYSTEM.
WE HAVE TO DATE WORKED OUT THE DETAILS
OF OUR GRANT AGREEMENT WI
TH THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC
DEVELOPED AND MINNESOTA MANAGEMENT
AND BUDGET TOOK A LITTLE WHILE TO WORK
THROUGH BECAUSE OF THE FUNDING PROCESS THAT WE WENT THROUGH
BUT WE HAVE EXECUTED A
GRANT AGREEMENT AND ARE READY TO
MOVE FORWARD. BIDS FOR THE SUPERIOR STREET PROJECT WHICH INCLUDES
ALL OF THE WORK ON THE STEAM
SYSTEM UPGRADES AND
PIPE REPLACEMENT WENT OUT IN JANUARY
AND WE JUST GOT THE BIDS BACK
LAST WEEK FOR THE
PROJECT IN THE WAR THE CONTRACTOR
AND HAVE ARE HAPPY TO REPORT THAT WE
CAME IN RIGHT AROUND WILL BE
EXPECTED TO FAVORABLE TO THE
EDUCATION BY [INAUDIBLE] AND WE ARE READY TO CONTINUE MOVING.
WE HAVE
NOT WAITED FOR THIS MAJOR
BID PROCESS TO MOVE FORWARD WITH THIS PROJECT. WE HAVE ALREADY UNDERTAKEN AND COMPLETED A CONSIDERABLE AMOUNT
OF THE DESIGN WORK FOR
THE PROJECT AND HAVE INVEST
ED SIGNIFICANTLY IN IMPROVEMENTS AT THE STEAM PLANT ITSELF. YOU
SHOULD HAVE A SHORT HANDOUT IN
YOUR PACKETS WHICH KIND OF
LAYS OUT THE
PROJECT AGAIN AND WHERE WE HAVE BEEN WITH
THE PROJECT. OF NOTE IN
THAT HANDOUT IS A DESCRIPTION ON THE LAST PAGE OF ALL OF THE
ADDITIONAL EFFORTS
WE'VE UNDERTAKEN. A LOT OF MEAT AND POTATOES KIND
OF WORK SUCH AS REPLACING VALVES AND PUMPS IN HOT WATER RETURNS
AND ALL THE THINGS THAT ARE GOING TO INCREASE THE OPERATIONAL EFFICIENCY OF THE PLANT AND
THE SYSTEM AND REALLY ADD TO
THE BENEFITS THAT WILL COME ONCE WE FULLY CONVERT TO A HOT
WATER SYSTEM.
WITH THOSE ENHANCEMENTS HAVE DONE
TO DATE HAVE ALLOWED US FOR
EXAMPLE; BETWEEN THE MONTHS
OF APRIL AND NOVEMBER OF THIS YEAR TO USE
NATURAL GAS
100% FOR ALL OF THE STEAM NEEDS GENERATED BY THE SYSTEM DURING THOSE MONTHS
. WE BURN NO COAL FROM THE PERIOD
APRIL-NOVEMBER SAVING AND REDUCING 20;000 TONS OF COAL
; REDUCING CARBON BY 35;000
TONS. ALL OF THE OTHER
EMISSION REDUCTIONS THAT GO WITH THAT.
WHAT IS ALSO DONE FOR US IS THIS WINTER AS
COLD AS IT'S BEEN IN DECEMBER
JANUARY AND EARLY FEBRUARY FOR THE FIRST
TIME EVER THE SYSTEM WAS ABLE TO OPERATE ON ONLY
THREE OF OUR FOUR BOILERS. WE BURN COAL IN
THE WINTER
IN THE COLD MONTHS BECAUSE AT
THE ENERGY THAT IT'S ABLE
TO GENERATE BUT WE'VE ONLY HAD TO BURN THREE OUT OF THE
FOUR BOILERS
AND THAT'S THE FIRST TIME THAT IS HAPPEN. AGAIN; THIS IS GOING TO
AID US GOING FORWARD ONCE WE DO THE
FULL CONVERSION OF
THE SYSTEM. WE HAVE ALSO LAST FALL
COMPLETED SIGNIFICANT WORK ON
MICHIGAN STREET AND I HAVE ALSO YOU SHOULD'VE ALSO
A SERIES OF PHOTOS IN YOUR PACKET
. SHOWING THAT WORK WITH THE PIPES
GOING IN. THIS IS THE CONNECTION FROM
THE PLANT WHICH IS OVER ON
THE CANAL PARK SIDE OF
THE FREEWAY GOING UNDER
THE FREEWAY OVER TO THE MICHIGAN STREET SIDE
SO THAT WE ARE GETTING ALL OF THAT
WORKED ON
IT WE GOT IT COMPLETED SO THAT WE ARE READY
TO PROCEED WITH THE SUPERIOR
STREET WORK
THE SPRING YOU WERE GOING TO REROUTE TRAFFIC ON MICHIGAN SO WE NEEDED THAT WORK DONE
SO WE CAN USE MICHIGAN AS A REROUTE
WAS A PURE STREET IS TORN UP. THERE WAS A SIGNIFICANT AMOUNT OF WORK WE DID IN COMPLETED
LAST FALL IN PREPARATION OF
THE PROJECT THAT WE ARE READY TO
START ON THIS APRIL OR MAY;
WHETHER DEPENDING ON WHEN FROST COMES OUT OF THE GROUND.
SO WE ARE VERY GRATEFUL FOR THE LEGISLATURE'S
FINANCIAL SUPPORT DURING THE
LAST SESSION AND WE ARE POSITIONING OURSELVES TO MOVE AS QUICKLY AS POSSIBLE
THIS SPRING WITH
THE PROJECT WHERE WE WILL BEGIN ON THE WESTERN END OF
SUPERIOR STREET;; THE FIRST
4-5 BLOCKS AND WE ARE NOW SEEKING THE FINAL $7 MILLION OF
STATE FUNDS SO WE CAN COMPLETE THE TOTAL
FUNDING PACKAGE AND HAVE THAT PACKAGE
IN PLACE AS WE ARE SECURING ALL THE
FINAL WORK TO GET THIS DONE.
AS THE MAYOR MENTIONED THIS A ONCE IN A
GENERATIONAL OPPORTUN TO MAKE A
DRAMATIC IMPROVEMENT IN LONG LIFE
PUBLIC INFRASTRUCTURE WHICH
WILL SERVE THE DULUTH COMMUNITY AND ITS DOWNTOWN FOR YEARS TO COME.
WE WILL BE HAPPY TO RESPOND TO ANY QUESTIONS THE COMMITTEE MIGHT HAVE
AND AGAIN WANT TO EXTEND OUR THANKS
FOR PROVIDING THIS FUND TO GET US MOVING ON THIS PROJECT. >> CHAIR GAROFALO: THANK YOU.
REPRESENTATIVE OLSON ANY
ADDITIONAL TESTIFIERS >> REPRESENTATIVE OLSON: I
DO NOT >> CHAIR GAROFALO: ANY MEMBERS OF THE COMMITTEE HAVE
QUESTIONS.
REPRESENTATIVE METSA >> REPRESENTATIVE METSA: THANK
YOU REPRESENTATIVE OLSON
OR MARSTON. I THINK THIS WAS A BIG PROJECT FOR US TO WORK ON LAST
YEAR AND
IN MAKING THE ADJUSTMENTS WE
DID TO MINNESOTA MADE SOLID PROGRAM 40
REPRESENTATIVE O'NEILL WHO IS NOT HERE RIGHT NOW WAS
VERY HELPFUL ON THAT AS WELL BUT IT'S A GOOD PROJECT FOR
THE REGION.. THEY HIT THE
GROUND RUNNING AND I THINK WE ARE SEEING THAT PAY
DIVIDENDS FOR US I THINK WE CAN FINISH UP THE REST OF IT THIS YEAR.
>> CHAIR GAROFALO:
REPRESENTATIVE METSA IS A WINDOWS OF IN
A LONG-TERM ADVOCATE AN ENTIRE REGION
OF NORTHWEST MINNESOTA
NOT JUST-[LAUGHING] >> REPRESENTATIVE METSA: THANK YOU FOR THAT RECOGNITION MR. CHAIR. >> CHAIR GAROFALO: AS FAR
SOUTH AS
CHICAGO COUNTY WE KNOW YOU'VE ADVOCATED FOR.
[LAUGHING] FOLLOW-UP? >>
REPRESENTATIVE METSA: ARE WE GOING UP TV ARE WE GOING TO
BE ON >> CHAIR GAROFALO: I THINK WE ARE ON TV TODAY. [LAUGHING]
REPRESENTATIVE BAKER
IN-KIND CONTRIBUTION I THINK
IT REPRESENTATIVE
BAKER >> REPRESENTATIVE BAKER: THANK
YOU REPRESENTATIVE OLSON FOR BRINGING THIS UPDATE
TO IT WELCOME AGAIN MAYOR AND MR.
LARSON IT'S GREAT TO SEE YOU
AGAIN. QUESTION I HAVE; BACK IN NUMBER WE ARE REMOVING OUR WATER HEAT SYSTEM
YOU DECIDED AND WE HAVE ALONG WITH YOU PARTNER WITH YOU TO
MAKE SURE IT'S THE RIGHT THING
GOING FORWARD REALLY SOUNDS AMAZINGLY
EFFICIENT AND
ARE YOU PRINT PROJECTING RATES FOR CUSTOMERS WOULD ACTUALLY BE
ADJUSTED AWAY. I'M COUNTRIES WITH THE OUTLOOK
MIGHT BE FOR CUSTOMER RATES GOING FORWARD IF YOU WOULD AM I?
>> TESTIFIER: WHAT I CAN
SAY IS OUR PROJECTIONS
RIGHT NOW WITH THE EFFICIENCIES WE MADE IN THE PLANT ALREADY AND
WITH THE CLOSED LOOP SYSTEM THAT'S GONNA GO IN WE EXPECT THE
ENERGY COMPONENT TO CUSTOMERS
TO BE REDUCED AND 25 AND 30%.
WITH
THIS PROJECT AND IN ADDITION WE ARE WORKING ON OTHER THINGS GOING FOR TO CONTINUALLY THAT WE THINK WILL HAVE
ADDITIONAL SAVINGS OPPORTUNITIES AS WELL BUT WE ARE PROJECTING 25 HAVING 30%
FUEL COMPONENT REDUCTION IN OUR
CUSTOMERS BILLS.
>> REPRESENTATIVE BAKER: CONGRATULATIONS. THAT'S GREAT TO HEAR WE DON'T HEAR THAT
GOING IN THAT DIRECTION VERY OFTEN. SO; GOOD WORKER THANK YOU >> CHAIR GAROFALO: ANY OTHER QUESTIONS OR COMMENTS? REPRESENTATIVE SUNDIN >> REPRESENTATIVE SUNDIN: TO ANY OF THE TESTIFIERS;
WONDERING WHAT CAPACITY
THE SYSTEM IS DESIGNED SO YOU CAN
ACTUALLY EXPAND YOUR SERVICE
TO SAY A EXPANSION OF [INAUDIBLE]?
>> TESTIFIER:
THANK YOU FOR THE QUESTION CAN WE LOOK AT THIS SYSTEM AND AGAIN WITH THE EFFICIENCIES INVOLVED
IN WITH THE CONVERSION
TO HOT-WATER IT PROVIDES MUCH MORE OPPORTUNITY
FOR EXPANSION AND INCREASED
THERMAL CAPACITY
THAT STEAM DOES
NOT PROVIDE SO; YES; THE ANSWER IS YES WE DO EXPECT
TO HANDLE
ANY ENHANCEMENT THAT MAY COME DOWN THE ROAD
AND DEVELOPED IN
PROVIDING THERMAL ENERGY TO THOSE NEW BUILDINGS
FOR CUSTOMERS. >>
REPRESENTATIVE SUNDIN: I THINK THAT SHOWS GREAT FORESIGHT ON YOUR PART. SO
THANK YOU. >> CHAIR GAROFALO: IN THE EVENT THERE WAS A LARGE INFRASTRUCTURE PROJECT
IN DULUTH I PRESUME THAT INFRASTRUCTURE
INVESTMENT WOULD-IT WILL BE SCHEDULED AT THE SAME TIME AS
THIS WORK SHE COULD
LEVERAGE EFFICIENCIES NOT RIPPING OF THE SAME ROADS TWICE OR STUFF LIKE THAT? IS
THAT CORRECT
>> TESTIFIER: HYPOTHETICALLY; YES. THOSE CONVERSATIONS
WOULD OCCUR AND WE WOULD BE ON THE FRONT END OF DISCUSSIONS IN THAT
ENTIRE DESIGN PHASE AND WOULD
LIKELY HAVE THAT
COORDINATION INVOLVED. >>
CHAIR GAROFALO: THE BEST PART OF THIS IS 10% OF GETS THE JOKE AND THE OTHER 90% IS LIKE WHAT ARE THEY TALKING ABOUT.
OKAY. ANY OTHER QUESTIONS OR COMMENTS FROM THE
COMMITTEE? REPRESENTATIVE OLSON ANY
CLOSING COMMENTS FEELS IN A THANK YOU VERY MUCH
>>
CHAIR GAROFALO: THANK YOU FOR YOUR PRESENTATION CAN LOOK FOR TO HEARING FROM YOU IN THE FUTURE.
MEMBERS; WHAT WE WILL DO IS HAVE AN OVERVIEW OF
THE CHANGES THAT WERE MADE TO BE FORMALLY KNOWN
AS THE NOBLE DEVELOPMENT FUND.
OTHER RENEWABLE
DEVELOPMENT ACCOUNTANT WE HAVE AN
OVERVIEW FROM HOUSE NONPARTISAN RESEARCH IN FISCAL STAFF BELIEVE THAT
WE HAVE
REPRESENTATIVE EXCEL ENERGY TO ASK QUESTIONS
IF THOSE IF THEY
ARE NEEDED. WE WILL START WITH
NONPARTISAN STAFF AND MR.
E LOUGH MR. EXAMPLE WHICHEVER ONE
OF YOU WANTS TO GO AHEAD
AND START I THINK WE'LL START WITH MR. E OFF
. >> STAFF: THANK YOU MR. CHAIR BUT I'LL BE BRIEF YOU WILL TOUCH ON THREE TOPICS TODAY BRIEF DISCUSSION WITH THE R
DF RENEWAL DEVELOP AND FUND IS. TALK A LITTLE BIT ABOUT THE 2017
CHANGES THAT WERE MADE LAST SESSION AND FINALLY SOME
ADDITIONAL ISSUES
THE COMMITTEE MIGHT WANT TO ADDRESS THIS YEAR.
AS MANY OF YOU KNOW THE NOBLE DEVELOPMENT FUND COMMIT OF THE 1994 COMPROMISE THAT ALLOWED
EXCEL ENERGY TO STORE NUCLEAR WASTE AT ITS PARIS
ISLAND PLANT EXCHANGE FOR WHICH THE COMPANY BEGAN MAKING CONTRIBUTION OF
$500;000 PER CASK
STORED AT PRAIRIE ISLAND THOSE CONTRIBUTIONS CAN FLOW INTO THE DEVELOP FUND IN 1999.
IN 2008 THEY WERE JOINED BY
CONTRIBUTIONS
FROM TASKS STORED AT THE MONTICELLO PLANT THREE AND $50;000 PER
CASK WHICH ARE SMALLER THAN THE ONES AT
PRAIRIE ISLAND. AND IN 2018 WE HAVE A SITUATION WHERE
THERE'S 44 CASKS AT 44
PRAIRIE ISLAND AND THREE AT MONTICELLO.
THE AMOUNT OF MONEY THAT WILL FLOW
INTO RENEWABLE
THE MOMENT FUND AND 2018 A RESULT IS
$32.5 MILLION. THIS IS CHARGED TO BE
EXCEL ELECTRO CUSTOMERS BY MEANS OF A WRITER OR SURCHARGE
ON EACH
KILOWATT HOUR ELECTRICITY CONSUMED IN THIS YEAR IT AMOUNTS TO 1/10 OF A PENNY PER
K WH ABOUT $.76 FOR THE AVERAGE RESIDENTIAL
EXCEL CONSUMER
PER MONTH OR ABOUT NINE DOLLARS PER YEAR. SINCE
1999 [INAUDIBLE]
FUNDS BEGAN COMING INTO
THE FUND THERE'S BEEN A TOTAL ABOUT $360 MILLION
THAT'S
BEEN PLACED IN THE RENEWABLE THE MOMENT FUND AND THE EXPENDITURES FROM THAT FUND INCLUDE ABOUT $89 IN GRANTS
OVER FOR GRANT CYCLES. THEY WERE USED FOR VARIOUS PROJECTS
INCLUDING BOTH RESEARCH
AND DEVELOPMENT AND SPECIFIC
ENERGY PRODUCTION PROJECTS AND AS WELL THE LEGISLATURE
HAS FROM TIME TO TIME ME
ET APPROPRIATIONS FROM THE FUND
TO SUPPORT REBATES AND
PRODUCTION INCENTIVES
TO CUSTOMERS WHO INSTALL
RENEWABLE ENERGY AT THEIR HOME
OR BUSINESS. THIS INCLUDES RENEWABLE ENERGY
PRODUCTION INCENTIVES WHICH SUPPORTED
MAINLY WIND PRODUCTION AND ALSO
SEVERAL SOLAR
PROJECTS INCLUDING
THE EXCEL REWARDS PROJECTS AND MADE IN
MINNESOTA PROJECT AS WELL.
IN 2017 NEW COMMITMENTS FROM
THE FUND WERE INDICATED BY THE LEGISLATURE
TO SUPPORT WILL BE GOING TO BOTH
WRENCHING POWER OR AUTHORITY AND CITY
OF BENSON TO HELP THEM MAKE
A TRANSITION FROM THE TERMINATION OF THEIR
CONTRACTS WITH BE EXCEL TO BUY
ENERGY; BY BIOMASS ENERGY FROM THOSE
TWO ENTITIES. AS I SAID IN 2017; THE NUMBER OF CHANGES WERE MADE
IN THE BILL THAT THIS
COMMITTEE PASSED AT THE LEAST IMPORTANT OF WHICH WAS TO
ACTUALLY MAKE THE NOBLE DEVELOP AND FUND A
STATE FUND
. PREVIOUSLY; IT HAD BEEN KIND OF
IN LIMBO. THE LEGISLATIVE AUDITOR EXAMINED
THE RDF IN 2010 MADE A RECOMMENDATION BETTER BE A
STATE FUND BASED ON UNUSUAL SITUATION WITH A LEGISLATURE IS DIRECTING THE
PRIVATE COMPANY TO USE ITS PRIVATE REVENUES IN CERTAIN WAYS. THAT'S NO LONGER
THE CASE. IT'S A STATE FUND LIKE ANY OTHER FUND.
WE ALSO-THE BILL ALSO CHANGE
THE PURPOSES OF THE FUND FOR WHICH MONEY IS SPENT. PREVIOUSLY; THE
WERE FOR WAYS TO SPEND THAT MONEY INCREASING MARKET PENETRATION OF HER NOBLES WAS ONE. PROMOTING STARTUP
AND EXPANSION OF NEW COMPANIES AND
RENEWABLE PROJECTS;
STIMULATING R&D OF RENEWABLES AND
FINALLY; DEVELOPING YOUR COMMERCIAL AND
DEMONSTRATION SCALE RENEWABLE
ELECTRICITY PROJECTS. CURRENTLY;
THAT EMPHASIS ON R&D IS STILL
IN THEIR BUT
IT'S BEEN JOINED BY TWO NEW PURPOSES. ONE IS
TO INCUR
A GRID MODERNIZATION INCLUDING ENERGY STORAGE AND
SMART METERS AND ALSO A
MORE GENERAL SUBJECT OF
TO STIMULATE INNOVATIVE PROJECTS THAT REDUCE DEMAND AND
INCREASE EFFICIENCY.
ANOTHER CHANGE THAT WAS MADE LAST SESSION WAS TO ADD
A REPRESENTATIVE FROM THE
PERRY ISLAND
COMMUNITY TO THE ADVISORY GROUP THAT MAKES RECOMMENDATIONS ON SPENDING
FROM RENEWABLE OF ELEMENT FUND SINCE THAT GROUP RESIDES
NEXT DOOR TO WHERE THE PRAIRIE ISLAND
CASKS ARE STORED.
FIND THE; MAYBE THE
MOST IMPORTANT INTEREST TO THIS COMMITTEE
THE CHANGE ANOTHER CHANGE MADE
IN 2017
IS TO MAKE HAVE THE LEGISLATURE
MAKE FINAL DECISIONS ON ALL SPENDING
IN THAT FUND.
THE LEGISLATURE WITH RESPECT
TO THE GRANT PROJECTS THE LEGISLATURE CAN ALL PROVE
OR DISAPPROVE MAY NOT MODIFY
THE PROJECT THAT
IS RECOMMENDED BY THE ADVISORY GROUP IN A PUBLIC
UTILITIES COMMISSION.
THERE ARE SOME ADDITIONAL ISSUES WHICH NEED TO
BE ADDRESSED IN
THE FUND.. ONE IS TO ALLOW PAYMENTS FROM
THE FUND
TO BE TO REMUNERATE THE ADMINISTRATIVE PROCESS OF
THE FUND. THERE'S A
THIRD-PARTY EVALUATOR THAT REVIEWS
AND EVALUATES ALL THE INCOMING
PROJECTS AND THEY NEED
TO BE PAID HONESTLY AND WILL BE NOW BE PAID OUT OF THE FUND WHEN
WE COMMUNICATE THAT'S GOING TO BE DONE. ALSO; WE NEED TO ESTABLISH
MEMBERS OF THE ADVISORY GROUP AND APPOINTING
A 40. PREVIOUSLY THIS HAD BEEN
DONE BY XL ITSELF. NOW SINCE IT'S A STATE FUND HAS TO BE DONE BY
THE STATE AND FINALLY; THERE'S A
NEED FOR A MECHANISM TO DETERMINE IF A STATE
GRANT CYCLE IS GOING TO OCCUR IN THE NEXT YEAR. AGAIN; THIS WAS DONE
KIND OF
UNILATERALLY BY THE EXCEL. I THINK THEY SAID WHEN
THE FUND WE SHOULD BALANCE
OF $29 WILL BE A GRANT CYCLE. WE NEED A SIMILAR MECHANISM NOW
IN STATUTE TO
AUTOMATICALLY MAKE A GRANT
CYCLE HAPPEN. THAT INCLUDES
MY TESTIMONY. >> CHAIR GAROFALO: THANK YOU.
MR. SAMPLE.
>> TESTIFIER: I'M GOING TO GO OVER BRIEFLY JUST KIND OF THE
CASH FLOWS TRANSFERRING THE
FUND FROM THE EXCEL ENERGY TO THE STATE
OF MINNESOTA SO WE MOVE THE FUND TO
THE STATE.. WE HAD TO MOVE RESOURCES.
THE EXCEL ENERGY NOW DEPOSIT MAKES
THE DEPOSIT TO MANAGEMENT
AND BUDGET EVERY JANUARYBASED ON
THE DIFFERENCE BETWEEN THE
CASK REVENUE WHICH THIS YEAR WAS
32.5 MILLION AND
THE OBLIGATIONS THAT THE EXCEL HAS TO PAY OUT OF THE
FUND TO LAURENTIAN; BENSON AND
SOLAR REWARDS. IN JANUARY
THEY DEPOSITED A .8 MILLION INTO
THE FUND WHICH
WAS ROUGHLY 6.5 MILLION LESS THAN EXPECTED
DUE TO A SECOND
PAYMENT TO THE RANCH AND COMING OUT
IN 2018 RATHER THAN ONE OF THOSE PAYMENTS COMING OUT IN 2017.
THE OTHER SOURCE OF REVENUE FOR
THE FUND IN 2000 FISCAL
YEAR 2018 WAS A TRANSFER FROM THAT APARTMENT OF COMMERCE
FROM THE DATA MINNESOTA
SOLAR ACCOUNT IN THEIR SPECIAL REVENUE FUND. AT THE END OF SESSION WE
ANTICIPATED THAT THE AMOUNT WAS
TO BE 54.4 MILLION
.. THE DEPARTMENT OF COMMERCE
ACTUALLY TRANSFERRED 56.4 MILLION
BECAUSE THEY PAID OUT ABOUT
2 MILLION LESS IN
PRODUCTION INCENTIVES
AND ANTICIPATED. BRING A TOTAL REVENUES TO
65 POINT BRING A TOTAL REVENUES TO
65.3 MILLION FOR THE FISCAL
YEAR 18. WE HAVE
ALSO APPROPRIATED FUNDS IN FISCAL
YEAR 18
. WE HAVE $100;000 PER PATIENT OR THEIR
PRIMITIVE COMMERCE TO ADMINISTER ME TO
MINNESOTA SOLAR
UNTIL ITS END. WE ALSO HAVE A
FORECASTED APPROPRIATION TO THE
PRIMITIVE COMMERCE FOR MADE IN
MINNESOTA SOLAR BASED ON
CURRENT CONTRACTS. THESE ARE
PRODUCTION INCENTIVES. THE
PRODUCTION INCENTIVE WAS ESTIMATED AT THE END OF SESSION TO BE ABOUT
$4.9 MILLION FOR FISCAL
YEAR 18. UPDATED IN THE
NOVEMBER FORECAST THAT A PERMIT OF
COMMERCE ESTIMATES THOSE PAYMENTS TO BE ABOUT
$3.9 MILLION FOR FISCAL 18. AS WE
JUST HEARD; THE APPROPRIATED
PART OF THIS
COMMITTEE $59 TO THE CITY
OF DULUTH FOR THE STEAM PLANT RETROFIT
AND $150;000
TO THE DEPARTMENT OF EMPLOYMENT AND ECONOMIC TO THE LIMIT FOR A BIOMASS STUDY AFTER
THESE EXPENDITURES
THE BUDGETARY BALANCE IN THE FUND AT THE END OF THE FISCAL YEAR
WILL BE $46.2 MILLION
. NEXT YEAR WE ANTICIPATE THE SPIR
IT EXCEL ENERGY TO TRANSFER ABOUT 40 MILLION TO
THE FUND AND ABOUT THAT AMOUNT
WILL BE FORWARDED FOR THE NEXT
TWO YEARS.
>> CHAIR GAROFALO: THANK YOU. QUESTIONS FOR MEMBERS OF THE COMMITTEE OR COMMENTS?
REPRESENTATIVE MAYE-QUADE >> REPRESENTATIVE
MAYE QUADE: I WAS WONDERING IF YOU COULD WALK ME THROUGH-I DON'T THINK I
STILL UNDERSTAND THE
RDA. SO I THINK YOU MENTIONED WE HAVE TO
REAPPOINT MEMBERS?
>> TESTIFIER:
RIGHT NOW IT DOESN'T SAY ANYBODY APPOINT MEMBERS. THAT'S THE PROBLEM.
>> REPRESENTATIVE MAYE QUADE:
OKAY; GREAT. I WANT TO
UNDERSTAND
THE FLOW OF RECEIVING
THE PROJECTS AND WHO GOES OVER THEM IS AT
THE PEW PUC OR RDA IN WHEN THE LEGISLATURE GET THEM
TO SAY YES OR NO ARE WE GETTING THEM FROM THE PUC OR GETTING THEM FROM THE RDA. I DON'T UNDERSTAND.
>> TESTIFIER: RIGHT NOW; THE
WAY THE STATUTE LEAVES DOZEN
ADVISORY
GROUP THAT ESSENTIALLY CONSISTS OF THE
SAME MEMBERS THAT WAS UNDER
THE EXCEL. THE REPRESENTATIVES
ON IT
WHO ARRANGE WITH A THIRD-PARTY TO EVALUATE
THE PROJECTS THAT
COME IN AND HEAR ALL THOSE PROJECTS AND
RANK THEM IN THAT ADVISORY GROUP
MAKES RECOMMENDATIONS AS TO WHICH IT SHOULD BE FUNDED.
THE PUBLIC UTILITIES COMMISSION
ESSENTIALLY MAKES IT AND ALSO
MAKES RECOMMENDATIONS AS TO WHAT SHOULD BE FUNDED AND RIGHT NOW; BOTH OF THOSE REGULATIONS WILL BE COMING TO THE LEGISLATURE
SO THE LEGISLATURE CAN
EXAMINE THOSE FOR MAKING ITS
FINAL DETERMINATION WHAT PROJECT SHOULD BE
FUNDED. >> REPRESENTATIVE MAYE QUADE:
YIKES. THAT
WAS IT. >> CHAIR GAROFALO:
REPRESENTATIVE MAHONEY >> REPRESENTATIVE MAHONEY:
SO I'VE A COUPLE OF QUESTIONS.
THE PUC MAKES RECOMMENDATIONS
IN THE ADVISORY
COMMITTEE FROM THE PREVIOUS ADVISORY COMMITTEE
;; THEY BOTH MAKE RECOMMENDATIONS
WERE TO SEND THEM TO THE
LEGISLATURE OR DOES ONLY ONE
OF THEM
MAKE RECOMMENDATIONS AND SEND THAT RECOMMENDATION
TO THE LEGISLATURE?
>> TESTIFIER:
RIGHT NOW; THE STATUTE READS THAT EACH GROUP
MAKES RECOMMENDATIONS. >>
REPRESENTATIVE MAHONEY: THEN; SO THAT I UNDERSTAND
THIS CORRECTLY; HOW DO WE
NOT-THAT DOESN'T MAKE SENSE. BECAUSE IF WE CAN MAKE CHANGES TO IT AS
OF TODAY; DO WE
HAVE TO PICK ONE GROUP OR THE
OTHER GROUP OR DO WE HAVE TO
PICK PROJECTS AMONGST THAT GROUP
FROM BOTH AN ENSIGN
THAT FORD? THAT DOESN'T MAKE ANY SENSE TO ME.
>> TESTIFIER: THE STATUTE
SAYS THAT
THE LEGISLATURE CAN APPROVE OR DISAPPROVE BUT MAY
NOT MODIFY THE
RECOMMENDATIONS MADE BY THE COMMISSION
>>
REPRESENTATIVE MAHONEY: WHO IS THE COMMISSION?
>> TESTIFIER:
THE PUBLIC UTILITIES COMMISSION. >> REPRESENTATIVE MAHONEY: THE PUBLIC UTILITIES COMMISSION. MR. CHAIR; I'M TRYING
TO UNDERSTAND; BECAUSE THIS IS ONE OF YOUR BILL SO YOU
HAD SOME WORK WITH IN IT. WHAT WAS
YOUR INTENT TO MAKE
THOSE RECOMMENDATIONS
? WAS IT THE PUC A NEW COMMISSION BECAUSE I THOUGHT IT WAS A NEW COMMISSION
THAT WAS OF AND I DIDN'T REALIZE WE HAD TO APPOINT OR DIDN'T APPOINT ANYBODY BUT WHAT WAS YOUR INTENT WITH YOUR
THAT LEGISLATION THAT PIECE
OF LEGISLATION? >> CHAIR GAROFALO: FIRST OF ALL IT WAS
REPRESENTATIVE O'NEILL WHO LED THE POINT
ON THIS AND THEN IT
WAS CONTAINED IN LAST YEAR'S
OMNIBUS BILL AS PART OF THE MOVEMENT
FROM THIS BEING PRIVATE FUNDS TO BEING
PUBLIC FUNDS; YES; THERE'S INCREASE ACCOUNTABILITY AND TRANSPARENCY BUT ALSO
NOW THERE HAS TO BE A PUBLIC APPOINTMENT
PROCESS ITSELF CAN
NO LONGER APPOINT THE MEMBERS ITSELF
TO IT. SO THE INTENT AND I
HAD TO THAT THE LEGISLATION AWAITED
RED WAS THAT THE BOARD
DID RECOMMENDATIONS; THE COMMISSION THE BOARD MADE RECOMMENDATIONS; AND THAT THE PUC
EITHER HAD TO AFFIRM OR DENY
THIS RECOMMENDATIONS
AND THEN IT CAME TO THE LEGISLATURE FOR ACTION BUT I'M GOING TO
-IT'S A DISTINCT POSSIBILITY IT'S NOT
THAT WAY. THAT WAS MY UNDERSTANDING OF THE LAW AND
THAT WAS REPRESENTATIVE O'NEILL'S INTENT ON IT BUT WE CAN DOUBLE CHECK THAT BUT MR. E LOVE YOU CAN
SAYING IT ACTUALLY ALLOWS FOR SEPARATE
SERIES RECOMMENDATIONS AND THAT'S WHAT IT SAYS. >>
REPRESENTATIVE MAHONEY: WILL MR. CHAIR WITH THE UNDERSTANDING I HAVE FROM
MR. ENOUGH IT'S
UNLIKELY THAT DOESN'T MAKE SENSE AND HOW WE
CAN ACTUALLY
APPROPRIATE ANY MONEY OUT OF THAT FUND THIS
YEAR BECAUSE WE WOULD HAVE TO
CHOOSE BETWEEN ONE OR
THE OTHER. I THINK WE HAVE A LOT OF WORK TO DO ON THIS PARTICULAR
PIECE
OF LEGISLATION. >>
CHAIR GAROFALO: REPRESENTATIVE MAHONEY; THE ADVISORY BOARD DOESN'T EXIST
YET AND THE PUC
ANDERSON IS THE PUC CAN ONLY TAKE RECOMMENDATIONS FROM THE ADVISORY BOARD AND FOR THEM ON
TO US. IF A MISTAKE
ABOUT THAT I STAND CORRECTED BUT I THINK IT'S FAIR TO SAY THAT THE PUBLIC UTILITIES COMMISSION IS NOT GOING TO COME UP WITH THEIR OWN RECOMMENDATIONS AND SEND THEM TO US. IF THEY ARE THAT
WOULD BE NEWS TO ME AND I HAVE NOT HEARD OF THAT.
SO NOTWITHSTANDING THE LAW AS EXIST THESE ARE PUBLIC FUNDS UNDER THE JURISDICTION OF THIS COMMITTEE SO
IF ANY MEMBER OF THE COMMITTEE WERE TO
TAKE ACTION APPROPRIATE IN HIS FUNDS WOULD HAVE TO MAKE SURE THE BILL IS DRAFTED THEY PUT
NOTWITHSTANDING
CURRENT STATUTE SUCH AND SUCH AND SUCH AND
THEN RECOMMEND THAT A GRANT OR
INCENTIVE BE COMING OUT OF
THE FUND. MR. ENOU
GH >> TESTIFIER: I'M SORRY IF I CONFUSE PEOPLE AND CONFUSE MYSELF. I'M LOOKING AT THE
LANGUAGE AGAIN
AND IT SAYS THE ADVISORY GROUP SHALL SUBMIT
FUNDING RECOMMENDATIONS
-WELL TO THE PUBLIC UTILITY MEANING
BE EXCEL. THE COMMISSION MAY APPROVE PROPOSED EXPENDITURES OR DISAPPROVE THEM
AND MAY HAVE AGREED TO BY THE PUBLIC
UTILITY MODEL
MODIFY THOSE EXPENDITURES. THE COMMISSION THEN SUBMITS ITS FUNDING RECOMMENDATIONS TO THE LEGISLATURE AND THAT'S
THE WAY THIS
READS NOW. SO IT'S THE SAME SET
OF RECOMMENDATIONS. FIRST BEING MADE BY THE
ADVISORY GROUP TO BE EXCEL TO
THE COMMISSION AND THEN TO
THE LEGISLATURE. >> CHAIR GAROFALO: GOT THAT
REPRESENTATIVE MAHONEY. NO? WE CAN WALK THROUGH IT AGAIN
BASICALLY THE RECOMMENDATIONS HAVE TO ORIGINATE WITH A BOARD
>> REPRESENTATIVE MAHONEY: AND THERE'S NO BOARD JUST YET >> CHAIR GAROFALO: CORRECTED THE UTILITIES US THAT GOES TO
THE COMMISSION THEN IN ORDER
FOR THAT
COMMISSION LIQUIDATION TO GO TO THE LETTER THE COMMISSION IS TO TAKE ACTION ON IT. >> REPRESENTATIVE
MAHONEY: SO MR. CHAIR
OR MR. E LUFKIN OR WHOEVER CAN ANSWER THIS; WHAT
IS
OUR AVAILABLE FOR THE COMMITTEE TO WRITE BILLS
AT THIS PARTICULAR TIME?
THE EXPECTED DOLLAR FIGURE IN
THIS FUND FOR 2018?
>> TESTIFIER: THE CURRENT
BUDGETARY BALANCE FOR FISCAL
18 IS
$46.2 MILLION >> REPRESENTATIVE
MAHONEY: [LAUGHING].
>> CHAIR GAROFALO: GIVE
A QUESTION?
>>
REPRESENTATIVE MAHONEY: SO I JUST WANTED TO BE CLEAR THAT IF SOMEONE WAS TO WRITE A BILL
OUT OF THAT $46 MILLION FOR
ENERGY IMPROVEMENTS THEY WOULD HAVE TO PUT NOTWITHSTANDING
CURRENT
LAW; CORRECT? >> CHAIR
GAROFALO: CORRECT. AS WITH THE
OTHER PREVIOUS APPROPRIATIONS OUT OF
THE RENEWAL DEVELOPMENT FUND IT'S THE SAME WAYS THOS
E. >> REPRESENTATIVE MAHONEY: THANK YOU MR. CHAIR >>
CHAIR GAROFALO: OTHER QUESTIONS OR COMMENTS.
REPRESENTATIVE MAYE-QUADE >> REPRESENTATIVE MAYE QUADE:
THANK YOU AND I THINK I MIGHT'VE GOT MY
QUESTION BACK IT WAS DEFTLY LOST BETWEEN
ALL THAT. SO TWO THINGS; THE
FIRST IS SO
THE BOARD GETS CREATED THEY GET THE PROJECTS
AND THEN FROM THERE THEY SUBMIT THEM TO THE UTILITIES. TO THE UTILITY THEN HAVE THE JURISDICTION
OR AUTHORITY TO PICK THROUGH AND SAY; YES;
AND YES I KNOW; AND FROM THE UTILITY TO THE PUC THE PUC TO SAY IS THIS GOOD FOR REPAIRS DOESN'T NEED
BLAH BLAH BLAH AND THE TO THE LEGISLATURE
FOR APPROVAL. DO I HAVE
A CORRECT >> CHAIR GAROFALO: YOU WANT TO RESPOND WOULD YOU HAVE MR. EVANS OR MR. PEARSON HERE AS WELL TO RESPOND.
>> TESTIFIER: LET ME JUST READ YOU THIS DOCUMENT THE ADVISORY GROUP SHALL SUBMIT FUNDING RECOMMENDATIONS TO THE PUBLIC UTILITY WHICH IS FULL AND SOLE
AUTHORITY TO DETERMINE WHICH EXPENDITURES WILL BE SUBMITTED BY THE ADVISORY GROUP TO THE LEGISLATURE. THE COMMISSION
MAY APPROVE
PROPOSED EXPENDITURES THE COMMISSION BEING THE PUBLIC UTILITIES COMMISSION-MAY
APPROVE PROPOSED EXPENDITURES
MAY DISAPPROVE THE RATE NOT BEEN COMPLIANT WITH
THE SUBDIVISION. THE COMMISSION SHALL BUY ORDER SUBMIT ITS FUNDING RECOMMENDATIONS TO THE LEGISLATURE. IT'S BEEN
FILTERED THROUGH
DIFFERENT GROUPS BEFORE THEY
GET HERE. >> REPRESENTATIVE
MAYE QUADE: THANK YOU MR. CHAIR. THEN
I GUESS
MY ONLY OTHER QUESTION IS OR PENALTY OR ANYTHING
THAT ANYBODY FACES IF WE DON'T DO ANYTHING
THIS YEAR SINCE WE DON'T HAVE THIS BOARD OR
ADVISORY GROUP?
>> TESTIFIER: NO.
>> CHAIR GAROFALO: ANY
OTHER FOLLOWER?
REPRESENTATIVE MAHONEY BACK TO YOU. >> REPRESENTATIVE MAHONEY:
WOULD SEEM WE HAVE AN
OPPORTUNITY TO ADVISE
AND CONSENT ON ANY MEMBERS TO THIS
PARTICULAR COMMISSION SO I WOULD CERTAINLY ADVISE THE
COMMITTEE CHAIR TO EXERT
HIS NOTEWORTHY
NEGOTIATING SKILLS TO MAKE SURE THAT THE
HOUSE HAS ADVICE AND CONSENT ON ANY
ONE OF ADDED TO THIS
PARTICULAR COMMISSION
WERE APPOINTED >>
CHAIR GAROFALO: WELL I THINK ALL MEMBERS OF
THE COMMITTEE WE ARE ALL EQUAL SO WE CAN ALL MAKE RECOMMENDATIONS
>> REPRESENTATIVE MAHONEY: I THINK YOU
MISUNDERSTOOD ME. I MEANT TO THE COMMISSION ITSELF
BEFORE THEY-NOT JUST OF THE SENATE TO THE ADVISING CONSENT
SEEING HOW WE ARE THE BETTER-WE ARE A DIFFERENT BODY
WE SHOULD HAVE OUR OWN SAY.
>> CHAIR GAROFALO: UNDERSTOOD. ANY OTHER QUESTIONS OR COMMENTS FOR MEMBERS OF THE COMMITTEE?
HOW STUFF ANY
CLOSING COMMENTS? THANK YOU VERY MUCH FOR THE OVERVIEW. WE GREATLY APPRECIATE IT. MEMBERS; WE ARE NOT GOING TO BE MEETING TO MARKET TOMORROW'S MEETING HAS BEEN CANCELED SO
KEEP YOUR EYES ON THE EMAIL FOR ANY CHANGES IN SCHEDULING FOR NEXT
WEEK BUT YOU ARE FREE TO TAKE YOUR FREE TIME TO STUDY THE REVIEW
OF THIS COMMITTEE
TO MARKET WITH THAT THAT COMPLETE OUR AGENDA FOR TODAY IN OUR MEETING IS ADJOURNED.
THANK YOU. >> [GAVEL] >> [ADJOURNMENT]
>>
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