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However, already strained budgets and <br />reserves at the state and local level have <br />limited the ability of the state to assist local <br />units of government in furthering specific <br />projects that support the overall state goal. <br />In addition, institutional knowledge and <br />capacity of most cities limits their ability to <br />explore energy efficiency or renewable <br />energy projects, even projects whose energy <br />"payback" could finance project capital <br />costs. <br />As the role cities are playing in reducing <br />energy use and developing renewable energy <br />generation expands, how those efforts are <br />affected by electric utility practices also <br />becomes more important. Utility billing is not <br />consistent between electric utilities, with many <br />using different rate categories, significantly <br />complicating B3 benchmarking reporting and <br />billing transparency. For projects on which a <br />utility provides capital, the length of time over <br />which city projects are amortized can also be <br />extended to the point that energy cost savings <br />are eliminated, even with substantial demand <br />reductions. The application of demand and <br />peak demand rates in repayment schedules can <br />also reduce or eliminate energy cost savings. <br />Response: The League of Minnesota <br />Cities calls on our legislators and state <br />executive agencies charged with <br />accomplishing the state's energy policy <br />goals to assist cities, townships and <br />counties with tailored efforts to identify <br />appropriate energy efficiency and <br />renewable energy projects for <br />undertaking at the local level. Among <br />those tools, the state should: <br />a) Help ensure that reduced energy use <br />results in reduced energy costs by <br />addressing problems with <br />amortization timing; <br />b) Have laws that allow and support <br />utility grant and loan programs; <br />c) Use proceeds from the Renewable <br />Development Fund to support local <br />government projects; <br />d) Provide increased flexibility for <br />utilities to work with local <br />government; <br />e) Support development of a unified <br />electric energy billing and usage <br />structure that is easily imported into a <br />B3 Benchmarking tracking system; <br />f) Develop a framework that allows <br />Property Assessed Clean Energy <br />Programs; <br />Play an increased role in providing a <br />network of charging stations to <br />support a transition to electric <br />vehicles; <br />h) Create a grant and loan program to <br />offset start-up capital expenses for <br />projects identified where the savings <br />in energy costs can offset capital <br />project costs or where projects are <br />needed to meet energy policy goals; <br />i) Clarify state law so that cities may use <br />public utility franchise agreements to <br />advance energy policy goals, and; <br />Recognize that state energy agency <br />technical expertise needs to be made <br />available to cities at no cost. <br />g} <br />j) <br />SD-64. Municipal Public Water <br />Supplies <br />Issue: Essential residential water supplies <br />provided by public water supply systems are <br />classified as the highest priority for the use <br />of public water under Minn. Stat. <br />§103G.261 Minnesota cities spend <br />significant resources meeting their <br />responsibility to providing safe, reliable, <br />affordable water to their residents in a <br />sustainable manner. That is an essential <br />element in assuring a healthy and stable <br />future for public health, the environment, <br />and economic development. As a result, <br />municipal water suppliers have collected <br />League of Minnesota Cities <br />2018 City Policies Page 41 <br />