Capitol Letter for March 29, 2022
The Capitol Letter™ is a recurring publication that provides reports from LWV Minnesota volunteer Observer Corps and Lobby Corps members on what is happening in the current legislative session.
Climate Change
Bill extends incentives for green energy storage
HF4402 by Rep. Jaime Long (DFL–Minneapolis) and SF4119 by Sen. David Senjem (R–Rochester) creates a $10 million grant program in addition to extending Xcel’s solar incentive program through 2026. The state would extend market opportunities to further innovation in the sector through funding from the Renewable Development Account which collects fees on Xcel’s nuclear waste. On-site energy can increase the use of solar and wind in Minnesota. HF4402 was laid over as amended by the House Climate and Energy Policy Committee for possible inclusion in an omnibus bill.
Agencies call for climate change to be part of the bonding discussion
In a hearing last week, committee members of the House Capital Investment Committee were shown how climate change and bond ratings intersect. Bond rating agencies that can determine investment in Minnesota view climate change as a risk and consider states that prepare for extreme weather events more favorably. Infrastructure under stress from flooding affects the state’s credit rating while crop failures and natural disasters impact those on a local level. Many other states are taking similar actions, which generally are favorable to bonding analysts. The goal would be for the state to prepare for potential, or inevitable, climate difficulties instead of just reacting after they happen.
Ratepayer-funding EV rebates rejected; fast charging stations approved
Minnesota utility regulators agreed with the state’s Attorney General office that Xcel Energy cannot use ratepayer funds for electric vehicle (EV) rebates. Minnesota’s largest electric utility stands to gain from EV adoption and the plan would have likely raised its prices, particularly affecting lower-income consumers. On the other hand, the Minnesota PUC approved a $5 million increase for ratepayers for Xcel to install 21 fast charging stations across greater Minnesota over the next three years. A J.D. Power study found that the biggest hurdle for EV sales is a “range anxiety” of drivers, or their fear of running out of battery with no place to recharge. The goal of the additional charging stations is to alleviate that anxiety and hopefully increase sales of EVs.
Funding for local conservation districts receives bipartisan support
Since the 88 Soil and Water Conservation Districts (SWCDs) began protecting local water and land usage, they have had no steady stream of funding. HF3719 by Rep. Liz Reyer (DFL–Eagan) and SF3913 by Sen. Ann Rest (DFL–New Hope) would appropriate a yearly budget of $22 million for them to hire staff and establish long-term water protection. The House Property Tax Division laid over the bill for possible inclusion in the division report to the House Taxes Committee. The Senate companion bill awaits action in the Senate Taxes Committee. Gov. Tim Walz has endorsed these measures and overall has received bipartisan support. Bipartisan support seems hard to come by these days, but the protection of Minnesota’s water resources seem important to many lawmakers on either side of the aisle.
Democracy
Bill to close private lobbying loophole advances
A bill to end “pay-to-play” lobbying passed with bipartisan support from the MN House last week. The bill would enact a ban on a private club that lobbyists would gain access to by paying dues. The dues are essentially campaign donations, thus violating the campaign finance reform. It is one of the few bipartisan democracy bills that have passed so far this session.
Racial Justice
Racial Justice Law Clinic
Starting this fall, the University of Minnesota Law School will launch a new Racial Justice Law Clinic. The clinic will provide classes with a racial justice emphasis in areas including the criminal legal system, voting rights, education, employment, and housing. They hope to build relationships with local community groups, nonprofits, and anything alike to identify local priorities and to work together to address these issues. Minnesota has one of the worst racial discrimination across many areas, and the clinic will work to enhance the commitment to serving the state exclusively devoted to equity and justice for people of color.
$3 million approved for inmate job training, education programs
The House Public Safety and Criminal Justice Reform Finance and Policy Committee approved HF4215, by Rep. Mohamud Noor (DFL–Minneapolis), 13-5. The bill, dubbed “Pathways from Prison to Employment”, will appropriate $2 million in 2023 to the Department of Corrections for education programs in prison and aid in connecting employment opportunities post-incarceration. An additional $1 million will go to expand the work-release program. According to the Department of Corrections, 95% of people incarcerated in Minnesota prisons will one day return to living in our communities. Rep. Noor backs up his bill by saying “when individuals leave prison [with] skills, training, and education, we are all safer”. When inmates are released with job-ready skills, they may find it easier to integrate back into society and are less likely to reoffend. There is a Senate companion bill, SF4074 by Sen. Jason Rarick (R–Pine City), that awaits action.
Observer Corps Reports
House Climate and Energy Hearing - March 17, 2022
Submitted by LWVMN Observer Corps Member Amy Caucutt
Included updates on solar in schools by Kevin Lee, of the Dept. of Commerce, in non-Xcel territory. They have $7.2M from last year's legislature for grants. 122 districts applied and 80 proceeded to the final round. Requests averaging $96,000. The grants will be for 40 kw arrays on school roofs; a home system is usually 4 Kw. Xcel testifier said 179 schools in their territory are set up, Xcel has to go through PUC hearings since there have been two complaints that need answering—so a slower process. The $1.2M for colleges has not been put out for grants yet said Mr. Lee. Rep. Greunhagen (R–Arlington) expressed concerns on the electrical grid being able to handle all this solar, especially the electric coops. He is afraid that this will end up costing the ratepayers (savings to schools but paid for by other ratepayers).
HF3905 DE-5 was passed, the result of further conversations with stakeholders. This is the weatherization bill. We heard that there is currently a 300 year backlog of weatherization improvements for high energy burdened people. Testifiers Scott Zuharick from Virginia, MN and Bill Grant, both from CAP organizations, explained that the 1976 federal program required all non-weatherization fixes to be accomplished before this work can be done, leaving up to 50% of applicants in the “deferred" category. This bill would use state money (and other programs) to accomplish that work. The bill would also set up new and expanded training programs so that more are available to do the work. Laid over for possible inclusion.
HF2624 DE-1 amendment was added and passed on party line vote. The vote was to be sent to the Environment and Natural Resources Committee. This bill expands the PACE program for farmers (low interest rates) for more than solar, i.e. perennial crops, fences, drip irrigation, water conservation...calls for 3rd party agronomic assessments before funding. Cargil asked the St Paul Port Authority to push this. No push back from GOP members so I was surprised when they all but 1 voted 'no' to send to the next committee.
Senate Higher Education Finance and Policy Hearing - March 17, 2022
Submitted by LWVMN Observer Corps Member Cathy Thom
Walk through & Public Testimony on HF4300 (Davnie): A bill for an act relating to education finance; providing for supplemental funding for prekindergarten through grade 12 education; modifying provisions for general education, education excellence, teachers, special education, facilities, nutrition and libraries, early childhood, community education, and state agencies; requiring reports; appropriating money. HF4300 is the Governor’s supplemental prekindergarten through grade 12 education funding bill. It does not currently have a Senate companion bill.
Increases the general education basic formula allowance for fiscal year 2023 by two percent, from $6,863 to $7,000 per pupil, for fiscal years 2023 and later. Increases funding for English learner revenue. Increases funding for Career and Technical Education revenue and adds a separate aid category for certain Career and Technical Education pupil transportation. Links other formulas to any future increases in the general education basic revenue allowance. Requires 80 percent of compensatory revenue to be spent at the site where the revenue was calculated and makes other changes to school funding programs. Increases the portion of career and technical revenue that is reimbursable under the Career and Technical Education revenue formula from 35 percent to 50 percent of a school district’s qualifying career and technical expenditures for the previous year.
Total biennium appropriations of $1.7 billion.
Various representatives from MDE testified summarized the bill and explained various key components – see the HF4300 House Research Summary for specific program and funding allocation details.
Testimony in favor of the bill was provided from representatives from Education Minnesota, a Native American Indian education advocate, MASE, MSBA/MASA/MASBO/SEE/MREA (jointly), AMSD, MN Business Partnership, and various administrators, support staff, and school board members from schools across the state.
The bill was laid over for consideration for inclusion in an omnibus bill without a vote.
House Climate and Energy Hearing - March 22, 2022
Submitted by LWVMN Observer Corps Member Amy Caucutt
HF4404 grants for public building solar energy generating systems. Bill modeled on a successful bill last year called solar on schools. Comment from Rep. Swedzinski suggesting that Prevailing wage requirements could negate savings from any grant. Author Reyer said she was a staunch supporter of fair wages for workers. Gruenhagen offered an amendment to say local government is responsible for removal and disposal at end of life. Author Reer said that that is redundant, since the bill only grants funds for installation. Amendment failed on a party line vote. Bill was laid over for possible inclusion
HF4402 included A-1 amendment extends solar reward program for installation and adds energy storage. Testifiers said incentives (half what they once were) are still needed to help people invest in a relatively new (solar) technology. Growth in this business sector according to the testifier is great. His company has 200 employees and will be hiring another 70 this year. Bill laid over for possible inclusion
HF4305 clarifies solar energy production tax. Several testifiers, including Mr. Wellington, tax counsel for a Missouri company doing projects in Minnesota, said that PUC made a legal determination on behalf of Excel of what is co-location of solar arrays, but dept of Revenue has its own interpretation on when 1 megawatt is exceeded thus calling forth a solar production tax. This bill clarifies for the Dept. of Revenue, that the PUC determination on co-location is to be the law. Author long said this is a technical bill which the GOP should support because it removes unfair taxes on businesses. However, a vote to send this bill to the tax committee passed with all GOP committee members except Rep. Boe voting "no"
HF3897 (Hollins) grant program to help low and moderate income homeowners upgrade their electrical panels. Author had an amendment and noted she was continuing to tighten up the bill. Question from Rep. Mekeland on how the bill prevents homeowners from cashing in on large grants by selling enhanced homes for a profit. The Habitat for Humanity testifier had an answer on how they insure that doesn't happen with their work...a sort of 10 year mortgage that the residual percent has to be paid back if home is sold early. Author said she would work to include such a clause in her bill. Laid over for possible inclusion.
Senate Energy and Climate Hearing - March 22, 2022
Submitted by LWVMN Observer Corps Member Amy Caucutt
No bills were heard, but instead a series of speakers. Mainly physicists or energy consults, who touted the need for carbon clean energy, which they said was nuclear. It was a very convincing hearing and how they spoke about the two public perceptions that tend to kill the use of nuclear energy: waste and safety. The speakers said these are manageable problems. Nuclear is reliable, cheap, and safely manageable if there is a moratorium on nuclear energy. They explained how Germany has the highest electric cost in Europe because of no nuclear; they count on fossil fuels. The speakers felt that this country needs to change direction quickly to nuclear power because it is cheap: we have all elements for creating it and it is safe and it is properly regulated. They think we cannot do enough solar and wind to quickly become carbon free.
Senate Energy and Utilities Finance and Policy Committee Hearing - March 22, 2022
Submitted by LWVMN Observer Corps Member Janet Avery
Five presenters all argued in favor of lifting the moratorium on nuclear power to allow development of newer nuclear power options as significant ways to reduce carbon emissions.
1) Dr Golee stressed the imperative of implementing new nuclear technologies ASAP in order for both small nuclear modules (SNMs) and larger capacity nuclear to replace fossil fuels. This is not like the existing nuclear power plants in the US but rather similar to what is already in place in Europe. He then left to present to the Illinois legislature which is today voting on lifting its nuclear moratorium.
2) Dr. Mark Nelson, Director of Radiant Energy from Chicago, showed slides of Dutch nuclear storage facilities that give tours to school children and others to explain about nuclear waste. His specialty is nuclear and he works on energy for non-profit organizations.
3) Dr. Ashley Finan of the National Reactor Innovation Center at the Idaho National Lab was next. The first link above has her slides. She talked about cooling materials that don't melt (TRISO fuel) and other innovations, explaining that new nuclear options have inherent and passive features (example, gravity - not requiring pump or another power source) vs the older engineered mechanical features in older plants. She talked about its safety and that new technology allows nuclear waste to be reused for more power.
4) Eric Meyer, heads Generation Atomic, a pro-nuclear environmental organization in MN was fourth. He stressed that wind and solar can't do it alone, that we can recycle nuclear waste in the newer reactors. He'd worked with John Marti to establish the moratorium in 1994 - something John Kerry was promoting nationally. John Kerry has now changed his position and is for nuclear. He reported that 60% of Democrats now support nuclear energy to fight climate change, up from only 37% a few years ago. There are double the amount of jobs in nuclear compared to coal and nuclear pays more per hour than coal, wind, or solar. He said the number of states with moratoriums is decreasing with only 12 still having moratoriums (and that Illinois was voting today). He said the Biden administration is supporting nuclear and asked the MN moratorium be lifted.
5) Final speaker was Isaac Orr from the Center for the American Experiment. His slide link is above and he concluded with: Nuclear is the common-sense compromise candidate for conservatives who prioritize the reliability and affordability of energy,and liberals, whose main priority is often reducing greenhouse gas emissions.
Only a couple legislators and Chair Senjem asked a few questions. I expect most, like me, were overwhelmed with the well done yet fairly technical presentations, even though I think presenters did a good job of explaining. The slides were informative and helpful. Uniform message was that MN should lift the moratorium ASAP so we can pursue reducing carbon emissions (there are none from nuclear) sooner.
House Education Finance Hearing - March 24, 2022
Submitted by LWVMN Observer Corps Member Cathy Thom
HF3979 by Rep. Michael Howard (DFL–Richfield) offers school-linked mental health grants authorized for federal instructional setting level four for special education sites, and money appropriated. A student is receiving instruction in a federal instructional setting level four program when the student is in a separate school facility for more than 50 percent of the school day. Students in a level four program are often receiving services at a site operated by an intermediate school, Service Cooperative, or other cooperative unit. HF3979 expands and makes permanent funding for programs with a proven record of success.
Superintendent Sandra Lewandowski, Intermediate School District 287 in Richfield and Val Rae Boe, Superintendent of NE Metro Intermediate School District 916, and other staff from these districts and cooperatives across the state testified that they serve high percentages of students with increasingly severe mental health issues. They also explained that the current grant program would expand funding for programs which have a proven track record of success due to their focus on whole child and whole family supports. These supports have helped many students transition back to less restrictive learning environments that may not otherwise have been able to do so.
Rep. Peggy Bennett (R–Albert Lea) inquired as to whether there would be federal funds available to fund these grants rather than state funding. Superintendent Lewandowski replied that intermediate districts were not equitably funded during major rounds of federal funding and state funds are needed to fill that gap. Rep. Bennett said she is hesitant to vote for a bill where the total cost remains unknown at this point and in a non-budget year where the economic forecast remains in question due to recent instability in fiscal and world events. Rep. Erickson (R–Princeton) echoed Rep. Bennett’s concerns.
In answer to where the funds would come from within the state budget, Rep. Howard replied that state funding could come from either education funds or DHS funds.
The bill was approved to be referred to the House Human Services Finance and Policy Committee by a vote of 9-6.
HF4477 by Rep. Robert Bierman (DFL–Apple Valley) is declining school district enrollment aid modified, and money appropriated. Under current law, a school district’s declining enrollment revenue equals 28 percent of the formula allowance for that year multiplied by the difference between adjusted pupil units for the current year and the adjusted pupil units for the previous year.
Public school enrollment decline is common in areas of the state that are static or losing population (districts that are consistently growing in enrollment are actually rare), and most school districts declined in enrollment across the state during the pandemic (much of the pandemic-related decline is likely to be temporary). According to February 2022 Forecast data, about half of Minnesota’s school districts are expected to have declining enrollment for the 2022-2023 school year compared to the 2021-2022 school year. HF4477 proposes to increase the aid percentage from 28 to 60 percent of the basic formula allowance and would have an annual cost of roughly $20 million.
Testimony in favor of the bill was from administrators across the state, and the bill is supported by a cross-section of MN educational organizations. The Superintendent of Northfield schools also pointed out that birth rates are declining across the state, and so declining enrollment is a problem that is not going away for most MN school districts. He also made an appeal to reduce the SPED cross-subsidy, which would be even more helpful to help MN school districts with funding gaps.
The bill was laid over without a vote.
HF3580 by Rep. Carlos Mariani (DFL–St Paul) requires increases to general education basic revenue to be indexed to the English learner concentration revenue and English learner basic revenue, and provides how the additional revenue must be used. The bill also requires the Professional Educator Licensing and Standards Board and the Board of School Administrators to adopt rules relating to English learner and emerging multilingual learner teaching. Much like special education, EL unfunded cross-subsidy costs are rising for districts across the state, which drains general education resources. There is also a severe shortage of ELL instructors across the state.
Testimony in favor of the bill was from representatives from EdAllies, and school staff from across the state who are involved in EL education and diversity, equity, and inclusion within their districts.
The bill was laid over without a vote.
HF3403 by Rep. Zack Stephenson (DFL–Coon Rapids) establishes a procedure for individuals to receive information, via a preliminary application, about whether a criminal conviction or other misconduct record would disqualify them from an occupational or professional license, registration, or certificate. Licensing boards permitted to charge application fees, appeals authorized, and reports required.
Testimony in favor of the bill was from the Institute for Justice; they emphasized that 19 states and Washington DC have enacted this measure, and data shows that people with criminal records are using the information that it makes available to them to more efficiently and effectively find skilled, gainful employment.
Rep. Cheryl Youakim (DFL–Hopkins) pointed out that this bill simply adds to the prevention of people spending money to obtain a degree that they cannot use to get a job.
Rep. Ron Kresha (R–Little Falls) requested that if there is an educational fiscal component that the bill be brought back before this committee before going to the House floor. Rep. Stephenson agreed that would be done.
The bill was approved to be referred to the Labor, Industry, Veterans, and Military Affairs Finance and Policy Committee by a vote of 11-5.
Senate Judiciary and Public Safety Finance and Policy Hearing - March 28, 2022
Submitted by LWVMN Observer Corps Member Cathy Thom
The hearing was focused on SF2673 by Sen. Warren Limmer (R–Maple Grove), which is the omnibus public safety bill. The bill creates special criminal codes for carjacking, fleeing from police in a motor vehicle in a manner which endangers public safety, and organized retail theft. It also makes changes to certain sentencing guidelines, particularly for repeat offenders, violent offenders, murder of an unborn child, and crimes committed with firearms. It would allow financial data warrant validity to be extended from 10 to 30 days. The bill would also require that the eight currently appointed (by the Governor) members of the Public Sentencing Commission be confirmed by the MN Senate. A DE Amendment and the Chairman’s Recommendations documents provide fiscal data for appropriations.
Sen. Sandy Pappas (DFL–St Paul) and Sen. Ron Latz (DFL–St Louis Park) said there are some good things in the bill, but criticized the lack of balance when it comes to funding. A lot more towards police than to victim services, youth interventions, and to communities themselves.
Sen. Latz called the bill “heavily loaded” towards punitive measures than preventative ones, particularly in its huge amounts of funding towards increased incarceration costs, as well as “unfair” and inaccurate assessments of prosecutors’ and judges’ charging and sentencing patterns. Said that there has been no data presented at all to show the need for the mandatory minimum sentences in the bill, nor the change from the current requirement that convicted criminals serve ⅔ of their sentence to a mandatory ¾ sentence. Emphasized that there is no data that increased mandatory sentences have a deterrent effect. Data instead shows that the likelihood they will get caught is more of a deterrent, but that takes community trust, involvement, and willingness to cooperate with law enforcement to solve crimes and convict perpetrators, little support for which is included in the bill.
Sen. Mary Kiffmeyer (R–Big Lake) complained that “members have been dismissive of anecdotes” as not “real enough” and should be enough to justify legislation to address the “real life experience of constituents” without “the need for some Harvard or other study.” She said that the bill addresses the experiences and concerns of constituents and victims. She called the bill “well-balanced.”
Sen. Karla Bigham (DFL–Cottage Grove) stated that there are a lot of good things in the bill, particularly the county portion where the crime occurs is good, as are the public defender increased funding provisions. She said that “the bill could use some tweaking in order to increase the focus on reducing crime to today in order to prevent crime tomorrow.” She said she would like to see an increased emphasis on crime prevention.
The hearing was informational only, with no public testimony nor committee action taken.