new text begin DIRECTION TO COMMISSIONER; CLEAN ENERGY PILOT PROJECT. new text end

new text begin (a) The commissioner shall develop a pilot project to reduce overall energy consumption and evaluate the financial impacts associated with property assessed clean energy (PACE) approved projects in nursing facilities. new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 256R.02, subdivision 48a, the commissioner may make payments to facilities for the allowable costs of special assessments for approved energy-related program payments authorized under Minnesota Statutes, sections 216C.435 and 216C.436. new text end

new text begin (c) The commissioner shall approve proposals through a contract which shall specify the level of payment, provided that each facility demonstrates: new text end

new text begin (1) completion of a facility-specific energy assessment or energy audit and recommended energy conservation measures that, in aggregate, meet the cost-effectiveness requirements of Minnesota Statutes, section 216B.241; new text end

new text begin (2) a completed PACE application and recommended approval by a PACE program administrator authorized under Minnesota Statutes, sections 216C.435 and 216C.436; and new text end

new text begin (3) the facility's reported spending on utilities per resident day since calendar year 2016 is higher than average for similar facilities. new text end

new text begin (d) Payments to facilities under this section shall be in the form of time-limited rate adjustments which shall be included in the external fixed costs payment rate under Minnesota Statutes, section 256R.25. The commissioner shall select from facilities that meet the requirements of paragraph (c) using a competitive application process. new text end

new text begin (e) Allowable costs for special assessments for approved energy-related program payments cannot exceed the amount of debt service for net expenditures for the project and must meet the cost-effective energy improvements requirements described in Minnesota Statutes, section 216C.435, subdivision 3a. Any credits or rebates related to the project must be offset. A project cost is not an allowable cost on the cost report as a special assessment if it has been or will be used to increase the facility's property rate. new text end

new text begin (f) The external fixed costs payment rate for the PACE allowable costs shall be reduced by an amount equal to the utility per diem included in the other operating payment rate under Minnesota Statutes, section 256R.24, that is associated with the energy project. new text end

new text begin (g) In fiscal years 2020 and 2021, the commissioner of human services may approve assessed clean energy pilot projects under this section, for which the cumulative state share of medical assistance costs does not exceed $125,000. new text end

new text begin (h) Notwithstanding any other law to the contrary, money available under Minnesota Statutes, section 144A.073, shall be used to pay the medical assistance cost for the external fixed rate increase in this section. new text end