News of the week

Cannabis and municipal utilities

On August 1, 2023, it will become legal for adults aged 21 or older to grow, possess, transport, gift to another eligible adult, and use cannabis and its related products. Interestingly, it will not be legal to sell cannabis in Minnesota until the state’s cannabis office is open and has adopted a licensing process for sellers, something that will likely not occur until possibly early in 2025. How a person obtains his or her cannabis, however, is a matter for law enforcement agencies and not municipal utilities.

The issue of where a person can legally consume cannabis products is primarily not an issue for municipal utilities either, but instead is an issue for the city council to decide. However, because of the complexities surrounding where cannabis can and cannot be used, a municipal utility should talk to the city council about specific issues related to the utility. 

For example, while most experts seem to agree that no one has the right to consume cannabis at work, it would be a good idea for any updated worksite policies and employee handbooks to expressly include a prohibition on cannabis use in or on utility-owned buildings, facilities, or property. The statute does prohibit use of cannabis in or on any location where smoking is prohibited by state or federal clean air acts. 

Many cities are considering adoption of a moratorium on the use of cannabis in public places, thus giving the city up to one year to determine the best path forward for their communities relating to cannabis use in areas under the control of the city. The moratorium would not apply to use in private homes, curtilage, or yards, nor would it apply to private property not generally open to the public. Private property owners may prohibit use in or on their property, but they are required to notify tenants and users of that. 

The biggest area of concern to municipal utilities is probably related to employment matters. Under the new law, no employer can specifically test for cannabis use (THC levels) as a condition of employment or discipline unless they are required to do so by some other applicable state or federal mandate. Issues related to commercial drivers’ licenses would be an example where testing is required in certain circumstances.

While the mere presence of THC in someone’s system is not generally grounds for termination or discipline under the new law, impairment remains valid grounds for taking disciplinary action. The challenge is determining whether the employee is truly impaired. Detailed findings should be recorded regarding what behavior led to the suspicion and conclusion of impairment. A municipal utility may want to consider talking with the city’s human resource leader and/or city attorney to help clarify how to watch for and act on perceived impairment in a manner consistent with the new law.

Watch future issues of The Digest and The Resource for further updates on Minnesota’s new cannabis statute and its rollout.

MMUA announces 2023 Tom Bovitz Memorial Scholarship recipients

The Tom Bovitz Memorial Scholarship Award program was created as a public relations tool to increase awareness of the impact of hometown utilities and create goodwill in your city for your utility. Each year, MMUA awards $5,000, split into four prizes, to essay contest winners who plan to attend a post-secondary educational institution.

The 2023 recipients are:

• First Place: Ella Westlund, Alexandria Public Utilities
• Second Place: Cadin Pederson, Hawley Public Utilities
• Third Place: Alexis Flaten, Willmar Municipal Utilities
• Fourth Place: Malayna Asmus, Mora Municipal Utility

Congratulations to the recognized students, and thank you to all utilities who submitted essays to the program. To read the first place essay, click here.

Heliene Inc. announces plans for $145 million solar panel plant in Twin Cities

Canadian company Heliene Inc. announced plans to open a $145 million solar panel manufacturing plant in the Twin Cities, expanding the company's Minnesota operations which already include a plant in Mountain Iron.

In this Star Tribune article (behind paywall), Mountain Iron City Administrator said, "They provide good solid wages and tax base for us. It's been a good project." The MMUA member community is home to the plant which already employs 155 workers with an additional 120 jobs to be created by the end of the year according to the company. Heliene's Mountain Iron plant is one of the largest solar panel manufacturers in the country.

Martin Pochtaruk, president of Heliene, stated the Inflation Reduction Act, which features tax credits for solar manufacturers, is boosting the industry. "That is making demand consistent and growing," he said. Heliene received about $15 million in financing from the Minnesota Department of Employment and Economic Development (DEED) and the Iron Range Rehabilitation and Resources Board (IRRRB) toward setting up operations and expanding the facility in Mountain Iron.

Heliene has not yet chosen a location for the Twin Cities plant, which is predicted to add 470 jobs and start production in late 2024.

Senate Committee appropriates $1.2 billion to boost grid supply chain

The Senate Committee on Appropriations on July 20 approved the Fiscal Year 2024 Energy and Water Development appropriations bill, which includes $1.2 billion to be spent through 2026 to “enhance the domestic supply chain for the manufacture of electric grid components.”

This supply chain funding is being reprogammed through various programs authorized under the Infrastructure Investment and Jobs Act. The new funding provided under the appropriations bill can be used for “financial assistance, procurement, technical assistance, and workforce support.” Also, the report accompanying the appropriations bill expresses concerns over a notice of proposed rulemaking to increase energy conservation for distribution transformers. The report’s language follows a provision in the House Committee on Appropriations Energy and Water Development Bill delaying the distribution transformer proposed rule by five years.

APPA strongly supports the report language, the $1.2 billion in additional funding, and the House provision blocking the proposed rule. The association said, "These provisions provide funding to address the underlying supply shortage issue and affirm that the Department of Energy needs to take into consideration concerns voiced by APPA relating to increasing efficiency standards."

To read more, click here.

Funding opportunities

Natural Gas Distribution Infrastructure Safety and Modernization Grant Program 

The Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant’s eligible entities are municipality- or community-owned utilities, not including for-profit entities, needing assistance in repairing, rehabilitating, or replacing high-risk, leak-prone natural gas distribution infrastructure, or in acquiring equipment to reduce incidents and fatalities and avoid economic losses. The NGDISM Grant Program also strives to create good-paying jobs, to promote economic growth, and benefit disadvantaged rural and urban communities with safe provision of natural gas.

City or county owned municipal utilities and customer owned utility providers are eligible. There is no matching funds requirement. The deadline to apply is August 4, 2023. Click here for more details. To learn more, contact Bill Black.

Energy-related grants for rural small businesses, agricultural producers

The U.S. Department of Agriculture is making $21 million in technical assistance grants available through the Rural Energy for America program to help agricultural producers and rural small businesses access federal funds for renewable energy and energy efficiency improvements. Municipal power utilities are eligible for these grants.

Recipients may use the funds to:

• Help rural agricultural producers and small business owners apply for Rural Energy for America funding.
• Provide information on how business owners and agricultural producers can improve the energy efficiency of their operations and use renewable energy technologies and resources.
• Conduct required energy assessments and audits.
• Help agricultural producers and small business owners with planning construction and development of renewable energy or energy efficiency projects.

Click here for more information.

Looking ahead

Summer Conference registration now open—Registration is now open for the Summer Conference and the Summer Conference Trade Show at the Duluth Entertainment Convention Center in Duluth, Minnesota!

To learn more and register for the conference, click here.

Associate members, we hope you will consider participating as well! To learn more and register as a trade show vendor, click here. For sponsorship opportunities, click here.

We also remind you that MMUA's hotel block at the Holiday Inn in Duluth is open. Reservations can be made online here. Room rates are $149 to $179 per night. The group code for discount is MNM, and the deadline for the discount is this Friday, July 21. Full hotel information can be found at www.hiduluth.com.

Regional Safety Workshops—Following the popularity of the summer sessions, MMUA is going back on the road with more regional workshops. Register by August 3 for best rate. You can learn more and register by clicking on the links below.

August 15—Detroit Lakes

August 16—Brainerd

September 18—New Ulm

September 19—Brookings, SD

MMUA will also hold additional "Interacting on the Issues" workshops in the fall. Watch for an announcement for those dates and locations later this week.

Overhead School—Registration is now open. The school will be held at the MMUA Training Center in Marshall from September 12-15. Please click here to learn more and register.

Minnesota Lineworkers Rodeo—Registration is open. The rodeo will also be held at the MMUA Training Center in Marshall on September 12, just before the beginning of Overhead School. Please click here to learn more and register.

Stepping Into Leadership—Designed for those who are new to a supervisory role or current supervisors and leaders who wish to improve their leadership skills. Participants will have 56 hours of instruction delivered in a mix of in-person and virtual settings over a 14-month period. The new cohort will begin on October 4. You can learn more and register by visiting the program's webpage.

Cross Training School... register by September 15 for best rate! The school will be held at the MMUA Training Center in Marshall from October 10-12. Please click here to learn more and register.

Thank you to MMUA's Gold Annual Sponsors!

As always, thank you for your association with MMUA and your commitment to delivering excellent service through locally owned utility assets in your community. Have a great week!

Christian Glanville

Marketing and Member Relations Manager

Direct: 763.746.0727 / Cell: 612.655.0598

Fax: 763.551.0459

cglanville@mmua.org | www.mmua.org

To download a copy of this email, click here.