ARTICLE 1

APPROPRIATIONS

ARTICLE 2

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

ARTICLE 3

GEOTHERMAL ENERGY

new text begin [216C.47] GEOTHERMAL PLANNING GRANTS.
new text end

ARTICLE 4

ELECTRIC TRANSMISSION

216E.03 DESIGNATING SITES AND ROUTES.

new text begin [216E.031] APPLICABILITY DETERMINATION.
new text end

new text begin [216E.035] APPLICATIONS; MAJOR REVIEW.
new text end

216E.04 deleted text begin ALTERNATIVEdeleted text end new text begin APPLICATIONS; STANDARDnew text end REVIEW deleted text begin OF
APPLICATIONSdeleted text end .

new text begin [216E.041] ENVIRONMENTAL ASSESSMENT PREPARATION.
new text end

new text begin [216E.042] PERMIT AMENDMENTS.
new text end

new text begin [216E.051] EXEMPT PROJECTS.
new text end

new text begin [216E.055] COST AND ECONOMIC IMPACT REVIEW.
new text end

216F.02 EXEMPTIONS.

ARTICLE 5

SOLAR ENERGY

new text begin [216C.48] STANDARDIZED SOLAR PLAN REVIEW SOFTWARE;
TECHNICAL ASSISTANCE; FINANCIAL INCENTIVE.
new text end

ARTICLE 6

MISCELLANEOUS

216C.08 JURISDICTION.

216C.09 COMMISSIONER DUTIES.

216C.10 COMMISSIONER POWERS.

new text begin [216C.471] RESIDENTIAL ENERGY RATING REBATE PROGRAM.
new text end

216E.08 PUBLIC PARTICIPATION.

216F.01 DEFINITIONS.

216F.012 SIZE ELECTION.

216F.015 REQUIREMENTS CODED ELSEWHERE.

216F.03 SITING OF LWECS.

216F.04 SITE PERMIT.

7850.2400 CITIZEN ADVISORY TASK FORCE.

7850.3600 CITIZEN ADVISORY TASK FORCE.

HF 4177

ARTICLE 1

APPROPRIATIONS

ARTICLE 2

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

ARTICLE 3

GEOTHERMAL ENERGY

new text begin [216C.47] GEOTHERMAL PLANNING GRANTS. new text end

ARTICLE 4

ELECTRIC TRANSMISSION

new text begin [216C.47] GEOTHERMAL PLANNING GRANTS.
new text end

new text begin [216E.031] APPLICABILITY DETERMINATION.
new text end

new text begin [216E.035] APPLICATIONS; MAJOR REVIEW.
new text end

216E.04 deleted text begin ALTERNATIVEdeleted text end new text begin APPLICATIONS; STANDARDnew text end REVIEW deleted text begin OF
APPLICATIONSdeleted text end .

Section 1. new text begin APPROPRIATIONS.
new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE
new text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSION
new text end

Section 1. new text begin APPROPRIATIONS.
new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE
new text end

Section 1.

Subdivision 1.

Sec. 2.

new text begin Subd. 9a. new text end

Sec. 3.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4. new text begin THERMAL ENERGY NETWORK DEPLOYMENT WORK GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 5. new text begin THERMAL ENERGY NETWORK SITE SUITABILITY STUDY.
new text end

Section 1.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

new text begin Subd. 1a. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 3.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Subd. 8.

Sec. 7.

Subd. 9.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subd. 3.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

Subdivision 1.

Subd. 2.

new text begin Subd. 2a. new text end

new text begin Subd. 2b. new text end

Subd. 3.

deleted text begin Subd. 3a. deleted text end

deleted text begin Subd. 3b. deleted text end

Subd. 4.

deleted text begin Subd. 5. deleted text end

deleted text begin Subd. 6. deleted text end

new text begin Subd. 5a. new text end

new text begin Subd. 6a. new text end

Subd. 7.

Subd. 8.

deleted text begin Subd. 9. deleted text end

deleted text begin Subd. 10. deleted text end

Subd. 11.

new text begin Subd. 12. new text end

new text begin Subd. 13. new text end

Sec. 10.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

Sec. 11.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

Sec. 12.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Subd. 5.

Subd. 6.

Subd. 7.

deleted text begin Subd. 8. deleted text end

Subd. 9.

Sec. 13.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

Sec. 14.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

Sec. 15.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 16.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 17.

Subd. 3.

Sec. 18.

Sec. 19. new text begin GRID ENHANCING TECHNOLOGIES REPORT; PUBLIC UTILITIES
COMMISSION ORDER.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 20. new text begin REVISOR INSTRUCTION.
new text end

Sec. 21. new text begin REPEALER.
new text end

new text begin EFFECTIVE DATE. new text end

Section 1.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

new text begin Subd. 10. new text end

Sec. 2. new text begin INTERCONNECTION DOCKET; PUBLIC UTILITIES COMMISSION.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 3. new text begin POSITION ESTABLISHED; PUBLIC UTILITIES COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin EFFECTIVE DATE. new text end

Section 1.

Subdivision 1.

Sec. 2.

Subd. 6c.

Sec. 3.

new text begin Subd. 3a. new text end

Sec. 4.

Subd. 4.

Sec. 5.

Subd. 10.

Sec. 6.

Subd. 2.

Sec. 7.

Subd. 3.

Sec. 8.

Subd. 5.

Sec. 9.

Subd. 8.

Sec. 10.

Subd. 1c.

Sec. 11.

Subd. 2.

Sec. 12.

Subd. 11.

Sec. 13.

Subd. 12.

Sec. 14.

Sec. 15.

Sec. 16.

Sec. 17.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 18.

Subd. 3a.

Sec. 19.

Subd. 3b.

Sec. 20.

new text begin Subd. 3e. new text end

Sec. 21.

Subd. 4.

Sec. 22.

Subd. 8.

Sec. 23.

Subd. 10.

Sec. 24.

new text begin Subd. 11a. new text end

Sec. 25.

new text begin Subd. 11b. new text end

Sec. 26.

new text begin Subd. 14. new text end

Sec. 27.

new text begin Subd. 15. new text end

Sec. 28.

Subdivision 1.

Sec. 29.

Subd. 1b.

Sec. 30.

Subd. 2.

Sec. 31.

Subd. 4.

Sec. 32.

Subd. 7.

Sec. 33.

Subd. 8.

Sec. 34.

Subd. 10.

Sec. 35.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

APPENDIX

Subdivision 1.

Subd. 4.

Subdivision 1.

Subpart 1.

Authority.

Subp. 2.

Commission decision.

Subp. 3.

Task force responsibilities.

Subp. 4.

Termination of task force.

Bill Text Versions

Current Version - 1st Engrossment

Section 1. new text begin APPROPRIATIONS.new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCEnew text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSIONnew text end

Section 1. new text begin APPROPRIATIONS.new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCEnew text end

Section 1.

Subdivision 1.

Sec. 2.

new text begin Subd. 9a. new text end

Sec. 3.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4. new text begin THERMAL ENERGY NETWORK DEPLOYMENT WORK GROUP.new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 5. new text begin THERMAL ENERGY NETWORK SITE SUITABILITY STUDY.new text end

Section 1.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

new text begin Subd. 1a. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 3.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Subd. 8.

Sec. 7.

Subd. 9.

Section 1. new text begin APPROPRIATIONS.
new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE
new text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSION
new text end

Section 1. new text begin APPROPRIATIONS.
new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE
new text end

Sec. 4. new text begin THERMAL ENERGY NETWORK DEPLOYMENT WORK GROUP.
new text end

Sec. 5. new text begin THERMAL ENERGY NETWORK SITE SUITABILITY STUDY.
new text end

Definitions.

new text begin Thermal energy networks. new text end

new text begin Definitions. new text end

new text begin Establishment. new text end

new text begin Account established. new text end

new text begin Application process. new text end

new text begin Grant awards. new text end

new text begin Eligible grant expenditures. new text end

new text begin Contractor and subcontractor requirements. new text end

new text begin Direction. new text end

new text begin Membership. new text end

new text begin Duties. new text end

new text begin Report to legislature. new text end

new text begin Notice and comment period. new text end

new text begin Definition. new text end

Large energy facility.

List.

new text begin Definitions. new text end

List development; transmissionnew text begin and grid enhancing technologynew text end projects
report.

Showing required for construction.

Exemptions.

Renewable energy standard new text begin and carbon-free energy standard new text end facilities.

Commission procedure.

Site permit.

Route permit.

new text begin Preapplication coordination. new text end

new text begin Preapplication review. new text end

Application.

deleted text begin Project notice. deleted text end

deleted text begin Preapplication consultation meetings. deleted text end

Application notice.

deleted text begin Environmental review. deleted text end

deleted text begin Public hearing. deleted text end

new text begin Public meeting. new text end

new text begin Draft permit. new text end

Considerations in designating sites and routes.

Recording of survey points.

deleted text begin Timing. deleted text end

deleted text begin Final decision. deleted text end

Department of Commerce to provide technical expertise and other
assistance.

new text begin Prevailing wage. new text end

new text begin Application. new text end

new text begin Generally. new text end

new text begin Size determination. new text end

new text begin Transmission lines. new text end

new text begin Forms; assistance; written determination. new text end

new text begin Environmental review. new text end

new text begin Public hearing. new text end

new text begin Timing. new text end

new text begin Final decision. new text end

deleted text begin Alternativedeleted text end new text begin Standardnew text end review.

Applicable projects.

Application.

Notice of application.

Environmental review.

Public hearing.

Timing.

deleted text begin Considerations. deleted text end

Final decision.

new text begin Definitions. new text end

new text begin Environmental assessment; content. new text end

new text begin Environmental assessment; notification of availability. new text end

new text begin Environmental assessment; comments; addendum. new text end

new text begin Matters excluded. new text end

new text begin No additional environmental review. new text end

new text begin Cost. new text end

new text begin Applicability. new text end

new text begin Application. new text end

new text begin Notice. new text end

new text begin Public comment. new text end

new text begin Timing. new text end

new text begin Decision. new text end

new text begin Local review. new text end

new text begin Permit not required. new text end

new text begin Other approval. new text end

new text begin Applicability. new text end

new text begin Review content. new text end

State agency participation.

new text begin Definitions. new text end

new text begin Report; content. new text end

new text begin Commission review; order. new text end

new text begin Cost recovery. new text end

new text begin Definitions. new text end

new text begin Program establishment. new text end

new text begin Eligibility. new text end

new text begin Application. new text end

new text begin Review and grant award process. new text end

new text begin Incentive awards. new text end

new text begin Incentive amount. new text end

new text begin Technical assistance. new text end

new text begin Program promotion. new text end

new text begin Account established. new text end

new text begin Position; duties. new text end

new text begin Definition. new text end

new text begin Position; funding. new text end

Renewable development account.

Incentive plan for energy conservation new text begin and efficient fuel-switching
new text end improvement.

new text begin Data mining facility. new text end

Efficient fuel-switching improvement.

Gross annual retail energy sales.

Consumer-owned utility; energy-savings goal.

Consumer-owned utility; energy conservation and optimization plans.

Energy conservation programs for low-income households.

Criteria for efficient fuel-switching improvements.

Public utility; energy-saving goals.

Public utility; energy conservation and optimization plans.

Programs for efficient fuel-switching improvements; electric utilities.

Programs for efficient fuel-switching improvements; natural gas
utilities.

Definitions.

deleted text begin Cost-effectivedeleted text end Energy improvements.

Commercial PACE loan contractor.

new text begin Eligible improvement. new text end

Energy audit.

Qualifying commercial real property.

Renewable energy system feasibility study.

new text begin Resiliency improvement. new text end

new text begin Resiliency improvement feasibility study. new text end

new text begin Water improvement. new text end

new text begin Water improvement feasibility study. new text end

Program purpose and authority.

Definitions.

Program requirements.

Financing terms.

Repayment.

Bond issuance; repayment.

Improvements; real property or fixture.

new text begin Definitions. new text end

new text begin Establishment. new text end

new text begin Application process. new text end

new text begin Rebate amounts. new text end

new text begin Outreach. new text end

new text begin Reports. new text end

new text begin Account established; appropriation. new text end

new text begin Expiration. new text end

Advisory task force.

Scientific advisory task force.

Scope.

Definitions.

new text begin Thermal energy networks. new text end

new text begin Definitions. new text end

new text begin Establishment. new text end

new text begin Account established. new text end

new text begin Application process. new text end

new text begin Grant awards. new text end

new text begin Eligible grant expenditures. new text end

new text begin Contractor and subcontractor requirements. new text end

new text begin Direction. new text end

new text begin Membership. new text end

new text begin Duties. new text end

new text begin Report to legislature. new text end

new text begin Notice and comment period. new text end

new text begin Definition. new text end

Large energy facility.

List.

new text begin Definitions. new text end

List development; transmissionnew text begin and grid enhancing technologynew text end projects report.

Showing required for construction.

Exemptions.

Renewable energy standard new text begin and carbon-free energy standard new text end facilities.

List development; transmissionnew text begin and grid enhancing technologynew text end projects
report.

Department of Commerce to provide technical expertise and other
assistance.

Engrossments
Introduction		Posted on 02/22/2024
1st Engrossment		Posted on 04/24/2024

A bill for an act
relating to energy; establishing a supplemental budget for energy, transmission,
and renewable energy purposes; adding and modifying provisions governing
geothermal energy, electric transmission, solar energy, and other energy policy;
establishing programs; requiring reports; appropriating money; making technical
changes; amending Minnesota Statutes 2022, sections 216B.16, subdivision 6c;
216B.2402, subdivisions 4, 10, by adding a subdivision; 216B.2403, subdivisions
2, 3, 5, 8; 216B.241, subdivisions 1c, 2, 11, 12; 216B.2421, subdivision 2;
216B.2425, subdivisions 1, 2, by adding a subdivision; 216B.2427, subdivision
1, by adding a subdivision; 216B.243, subdivisions 3, 9; 216B.246, subdivision
3; 216C.10; 216C.435, subdivisions 3a, 3b, 4, 10, by adding subdivisions;
216C.436, subdivisions 1, 4, 7, 8, 10; 216E.03, as amended; 216E.04, as amended;
216F.02; Minnesota Statutes 2023 Supplement, sections 116C.779, subdivision
1; 216B.243, subdivision 8; 216C.08; 216C.09; 216C.331, subdivision 1; 216C.435,
subdivision 8; 216C.436, subdivisions 1b, 2; 216E.10, subdivision 3; proposing
coding for new law in Minnesota Statutes, chapters 216C; 216E; repealing
Minnesota Statutes 2022, sections 216E.08, subdivisions 1, 4; 216F.01, subdivision
1; 216F.012; 216F.015; 216F.03; Minnesota Statutes 2023 Supplement, section
216F.04; Minnesota Rules, parts 7850.2400; 7850.3600.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
new text end

new text begin $
new text end

new text begin -0-
new text end

new text begin $
new text end

new text begin 1,133,000
new text end

new text begin (a) $500,000 in fiscal year 2025 is for a study
to identify suitable sites statewide for the
installation of thermal energy networks. This
is a onetime appropriation and is available
until December 31, 2025.
new text end

new text begin (b) $500,000 in fiscal year 2025 is for transfer
to the residential energy rating rebate program
account established under Minnesota Statutes,
section 216C.471, for rebates to developers
of residences that are certified as meeting the
requirements of the federal Zero Energy Ready
Home Program. Of this amount, up to
$150,000 may be used for program
administration and outreach and technical
assistance to applicants. This is a onetime
transfer and is available until June 30, 2029.
new text end

new text begin (c) $133,000 in fiscal year 2025 is for
participation in a Minnesota Public Utilities
Commission proceeding to review electric
transmission line owners' plans to deploy
grid-enhancing technologies and issue an order
to implement the plans. The base in fiscal year
2026 is $265,000 and the base in fiscal year
2027 is $265,000. The base in fiscal year 2028
is $0.
new text end

new text begin $
new text end

new text begin -0-
new text end

new text begin $
new text end

new text begin 433,000
new text end

new text begin (a) $39,000 in fiscal year 2025 is for support
of the Thermal Energy Network Deployment
Workgroup and preparation of a report. The
base in fiscal year 2026 is $77,000, and the
base in fiscal year 2027 is $0.
new text end

new text begin (b) $117,000 in fiscal year 2025 is for review
of electric transmission line owners' plans to
deploy grid-enhancing technologies and
development of a commission order to
implement approved plans. The base in fiscal
year 2026 is $157,000 and the base in fiscal
year 2027 is $157,000. The base in fiscal year
2028 is $0.
new text end

new text begin (c) $111,000 in fiscal year 2025 is for
conducting a proceeding to develop a
cost-sharing mechanism enabling developers
of distributed generation projects to pay
utilities to expand distribution line capacity in
order to interconnect to the grid. The base in
fiscal year 2026 is $111,000 and the base in
fiscal year 2027 is $77,000. The base in fiscal
year 2028 is $0.
new text end

new text begin (d) $166,000 in fiscal year 2025 is for
participating in Public Utilities Commission
proceedings to issue site and route permits for
electric power facilities under revised
administrative procedures. The base in fiscal
year 2026 and thereafter is $121,000.
new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2024 regular or
special legislative session, the appropriation must be given effect only once.
new text end

new text begin $
new text end

new text begin -0-
new text end

new text begin $
new text end

new text begin 14,200,000
new text end

new text begin (a) $5,000,000 in fiscal year 2025 is for a grant
for construction of a geothermal energy system
at Sabathani Community Center in
Minneapolis. This is a onetime appropriation
and is available until June 30, 2028.
new text end

new text begin (b) $2,500,000 in fiscal year 2025 is for
transfer to the geothermal planning grant
account established under Minnesota Statutes,
section 216C.47, for planning grants to
political subdivisions to assess the feasibility
and cost of constructing geothermal energy
systems. This is a onetime appropriation and
is available until June 30, 2027.
new text end

new text begin (c) $5,000,000 in fiscal year 2025 is for a grant
to Ramsey County Recycling and Energy
Center and Dem-Con HZI Bioenergy LLC to
construct an anaerobic digester energy system
in Louisville Township. This is a onetime
appropriation and is available until June 30,
2028.
new text end

new text begin (d) $1,700,000 in fiscal year 2025 is for
transfer to the SolarAPP+ program account
established under Minnesota Statutes, section
216C.48, for the awarding of incentives to
local units of government that deploy federally
developed software to automate the review of
applications and issuance of permits for
residential solar projects. Incentives may only
be awarded to political subdivisions located
within the electric service territory of the
public utility that is required to make payments
under Minnesota Statutes, section 116C.779,
subdivision 1. This is a onetime transfer.
new text end

Minnesota Statutes 2022, section 216B.2427, subdivision 1, is amended to read:

(a) For the purposes of this section and section 216B.2428,
the following terms have the meanings given.

(b) "Biogas" means gas produced by the anaerobic digestion of biomass, gasification of
biomass, or other effective conversion processes.

(d) "Carbon-free resource" means an electricity generation facility whose operation does
not contribute to statewide greenhouse gas emissions, as defined in section 216H.01,
subdivision 2.

new text begin (e) "Disadvantaged community" means a community in Minnesota that is:
new text end

new text begin (1) defined as disadvantaged by the federal agency disbursing federal funds, when the
federal agency is providing funds for an innovative resource; or
new text end

new text begin (2) an environmental justice area, as defined under section 216B.1691, subdivision 1.
new text end

deleted text begin (e)deleted text end new text begin (f)new text end "District energy" means a heating or cooling system that is solar thermal powered
or that uses the constant temperature of the earth or underground aquifers as a thermal
exchange medium to heat or cool multiple buildings connected through a piping network.

deleted text begin (f)deleted text end new text begin (g)new text end "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f), but does not include energy conservation investments that the commissioner
determines could reasonably be included in a utility's conservation improvement program.

deleted text begin (g)deleted text end new text begin (h)new text end "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by
anthropogenic sources within Minnesota and from the generation of electricity imported
from outside the state and consumed in Minnesota, excluding carbon dioxide that is injected
into geological formations to prevent its release to the atmosphere in compliance with
applicable laws.

deleted text begin (h)deleted text end new text begin (i)new text end "Innovative resource" means biogas, renewable natural gas, power-to-hydrogen,
power-to-ammonia, carbon capture, strategic electrification, district energy, and energy
efficiency.

deleted text begin (i)deleted text end new text begin (j)new text end "Lifecycle greenhouse gas emissions" means the aggregate greenhouse gas
emissions resulting from the production, processing, transmission, and consumption of an
energy resource.

deleted text begin (j)deleted text end new text begin (k)new text end "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas
emissions per unit of energy delivered to an end user.

deleted text begin (k)deleted text end new text begin (l)new text end "Nonexempt customer" means a utility customer that has not been included in a
utility's innovation plan under subdivision 3, paragraph (f).

deleted text begin (l)deleted text end new text begin (m)new text end "Power-to-ammonia" means the production of ammonia from hydrogen produced
via power-to-hydrogen using a process that has a lower lifecycle greenhouse gas intensity
than does natural gas produced from conventional geologic sources.

deleted text begin (m)deleted text end new text begin (n)new text end "Power-to-hydrogen" means the use of electricity generated by a carbon-free
resource to produce hydrogen.

deleted text begin (n)deleted text end new text begin (o)new text end "Renewable energy" has the meaning given in section 216B.2422, subdivision
1.

deleted text begin (o)deleted text end new text begin (p)new text end "Renewable natural gas" means biogas that has been processed to be
interchangeable with, and that has a lower lifecycle greenhouse gas intensity than, natural
gas produced from conventional geologic sources.

deleted text begin (p)deleted text end new text begin (q)new text end "Solar thermal" has the meaning given to qualifying solar thermal project in
section 216B.2411, subdivision 2, paragraph (d).

deleted text begin (q)deleted text end new text begin (r)new text end "Strategic electrification" means the installation of electric end-use equipment in
an existing building in which natural gas is a primary or back-up fuel source, or in a newly
constructed building in which a customer receives natural gas service for one or more
end-uses, provided that the electric end-use equipment:

(1) results in a net reduction in statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the life of the equipment when compared to the most efficient
commercially available natural gas alternative; and

(2) is installed and operated in a manner that improves the load factor of the customer's
electric utility.

Strategic electrification does not include investments that the commissioner determines
could reasonably be included in the natural gas utility's conservation improvement program
under section 216B.241.

new text begin (s) "Thermal energy" means piped noncombustible fluids used to transfer heat into and
out of buildings to reduce any on-site greenhouse gas emissions resulting from all types of
heating and cooling processes, including but not limited to special heating and cooling, hot
water, and refrigeration.
new text end

new text begin (t) "Thermal energy network" means any real estate, fixtures, and personal property that
is operated, owned, used, or used for, in connection with, or to facilitate a utility-scale
distribution infrastructure project that supplies thermal energy, including but not limited to
the project types defined under section 103I.005.
new text end

deleted text begin (r)deleted text end new text begin (u)new text end "Total incremental cost" means the calculation of the following components of
a utility's innovation plan approved by the commission under subdivision 2:

(1) the sum of:

(i) return of and on capital investments for the production, processing, pipeline
interconnection, storage, and distribution of innovative resources;

(ii) incremental operating costs associated with capital investments in infrastructure for
the production, processing, pipeline interconnection, storage, and distribution of innovative
resources;

(iii) incremental costs to procure innovative resources from third parties;

(iv) incremental costs to develop and administer programs; and

(v) incremental costs for research and development related to innovative resources;

(2) less the sum of:

(i) value received by the utility upon the resale of innovative resources or innovative
resource by-products, including any environmental credits included with the resale of
renewable gaseous fuels or value received by the utility when innovative resources are used
as vehicle fuel;

(ii) cost savings achieved through avoidance of purchases of natural gas produced from
conventional geologic sources, including but not limited to avoided commodity purchases
and avoided pipeline costs; and

(iii) other revenues received by the utility that are directly attributable to the utility's
implementation of an innovation plan.

deleted text begin (s)deleted text end new text begin (v)new text end "Utility" means a public utility, as defined in section 216B.02, subdivision 4, that
provides natural gas sales or natural gas transportation services to customers in Minnesota.

Minnesota Statutes 2022, section 216B.2427, is amended by adding a subdivision
to read:

new text begin Innovation plans filed after July 1, 2024, under
this section by a utility with more than 800,000 customers must include spending of at least
15 percent of the utility's proposed total incremental costs over the five-year term of the
proposed innovation plan for thermal energy networks projects. If the utility has developed
or is developing thermal energy network projects outside of an approved innovation plan,
the utility may apply the budget for the projects toward the 15 percent minimum requirement
without counting the costs against the limitations on utility customer costs under subdivision
3.
new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible applicant" means a county, city, town, or the Metropolitan Council.
new text end

new text begin (c) "Geothermal energy system" means a system that heats and cools one or more
buildings by using the constant temperature of the earth as both a heat source and heat sink,
and a heat exchanger consisting of an underground closed loop system of piping containing
a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes:
new text end

new text begin (1) a bored geothermal heat exchanger, as defined in section 103I.005;
new text end

new text begin (2) a groundwater thermal exchange device, as defined in section 103I.005; and
new text end

new text begin (3) a submerged closed loop heat exchanger, as defined in section 103I.005.
new text end

new text begin A geothermal planning grant program is established in the
department to provide financial assistance to eligible applicants to examine the technical
and economic feasibility of installing geothermal energy systems.
new text end

new text begin (a) The geothermal planning grant account is established
as a separate account in the special revenue fund in the state treasury. The commissioner
must credit to the account appropriations and transfers to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund, but remains in the account until June 30, 2027. The commissioner
must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner to (1) award geothermal
planning grants to eligible applicants, and (2) reimburse the reasonable costs incurred by
the department to administer this section.
new text end

new text begin An applicant seeking a grant under this section must
submit an application to the commissioner on a form developed by the commissioner. The
commissioner must develop administrative procedures to govern the application and grant
award process. The commissioner may contract with a third party to conduct some or all of
the program's operations.
new text end

new text begin (a) A grant awarded under this process may be used to pay the
total cost of the activities eligible for funding under subdivision 6, up to a limit of $150,000.
new text end

new text begin (b) The commissioner must endeavor to award grants to eligible applicants in all regions
of Minnesota.
new text end

new text begin (c) Grants may be awarded under this section only to projects whose work is completed
after July 1, 2024.
new text end

new text begin Activities that may be funded with a grant awarded
under this section include:
new text end

new text begin (1) analysis of the heating and cooling demand of the building or buildings that consume
energy from the geothermal energy system;
new text end

new text begin (2) evaluation of equipment that could be combined with a geothermal energy system
to meet the building's heating and cooling requirement;
new text end

new text begin (3) analysis of the geologic conditions of the earth in which a geothermal energy system
operates, including the drilling of one or more test wells to characterize geologic materials
and to measure properties of the earth and aquifers that impact the feasibility of installing
and operating a geothermal energy system; and
new text end

new text begin (4) preparation of a financial analysis of the project.
new text end

new text begin Contractors and subcontractors
performing work funded with a grant awarded under this section must have experience
installing geothermal energy systems.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin The Public Utilities Commission must establish and appoint
a thermal energy network deployment work group to examine (1) the potential regulatory
opportunities for regulated natural gas utilities to deploy thermal energy networks, and (2)
potential barriers to development. The work group must examine the public benefits, costs,
and impacts of deployment of thermal energy networks, as well as examine rate design
options.
new text end

new text begin (a) The work group consists of at least the following:
new text end

new text begin (1) representatives of the Department of Commerce;
new text end

new text begin (2) representatives of the Department of Health;
new text end

new text begin (3) representatives of the Pollution Control Agency;
new text end

new text begin (4) representatives of the Department of Natural Resources;
new text end

new text begin (5) representatives of the Office of the Attorney General;
new text end

new text begin (6) representatives from utilities;
new text end

new text begin (7) representatives from clean energy advocacy organizations;
new text end

new text begin (8) representatives from labor organizations;
new text end

new text begin (9) geothermal technology providers;
new text end

new text begin (10) representatives from consumer protection organizations;
new text end

new text begin (11) representatives from cities; and
new text end

new text begin (12) representatives from low-income communities.
new text end

new text begin (b) The executive secretary of the Public Utilities Commission may invite others to
participate in one or more meetings of the work group.
new text end

new text begin (c) In appointing members to the work group, the Public Utilities Commission shall
endeavor to ensure that all geographic regions of Minnesota are represented.
new text end

new text begin The work group must prepare a report containing findings and
recommendations regarding how to deploy thermal energy networks within a regulated
context in a manner that protects the public interest and considers reliability, affordability,
environmental impacts, and socioeconomic impacts.
new text end

new text begin The work group must submit a report detailing the work
group's findings and recommendations to the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over energy policy and finance by
December 31, 2025. The work group terminates the day after the report under this subdivision
is submitted.
new text end

new text begin The executive secretary of the Public Utilities
Commission must file the completed report in Public Utilities Commission Docket No.
G-999/CI-21-565 and provide notice to all docket participants and other interested persons
that comments on the findings and recommendations may be filed in the docket.
new text end

new text begin For the purposes of this section, "thermal energy network" means
a project that provides heating and cooling to multiple buildings connected via underground
piping containing fluids that, in concert with heat pumps, exchange thermal energy from
the earth and underground or surface waters.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin (a) The Department of Commerce shall conduct or contract for a study to determine the
suitability of sites to deploy thermal energy networks statewide.
new text end

new text begin (b) The study must:
new text end

new text begin (1) identify areas more and less suitable for deployment of thermal energy networks
statewide; and
new text end

new text begin (2) identify potential barriers to the deployment of thermal energy networks and potential
ways to address the barriers.
new text end

new text begin (c) In determining site suitability, the study must consider:
new text end

new text begin (1) geologic or hydrologic access to thermal storage;
new text end

new text begin (2) the existing built environment, including but not limited to age, density, building
uses, existing heating and cooling systems, and existing electrical services;
new text end

new text begin (3) the condition of existing natural gas infrastructure;
new text end

new text begin (4) road and street conditions, including planned replacement or maintenance;
new text end

new text begin (5) local land use regulations;
new text end

new text begin (6) area permitting requirements; and
new text end

new text begin (7) whether the area is an environmental justice area, as defined in section 116.065,
subdivision 1, paragraph (e).
new text end

new text begin (d) No later than January 15, 2026, the Department of Commerce must submit a written
report documenting the study's findings to the chairs and ranking minority members of the
senate and house of representatives committees with jurisdiction over energy policy and
finance.
new text end

Minnesota Statutes 2022, section 216B.2421, subdivision 2, is amended to read:

"Large energy facility" means:

(1) any electric power generating plant or combination of plants at a single site with a
combined capacity of 50,000 kilowatts or more and transmission lines directly associated
with the plant that are necessary to interconnect the plant to the transmission system;

(2) any high-voltage transmission line with a capacity of deleted text begin 200deleted text end new text begin 300new text end kilovolts or more and
greater than deleted text begin 1,500 feetdeleted text end new text begin 30 milesnew text end in length;

deleted text begin (3) any high-voltage transmission line with a capacity of 100 kilovolts or more with
more than ten miles of its length in Minnesota or that crosses a state line;
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end any pipeline greater than six inches in diameter and having more than 50 miles
of its length in Minnesota used for the transportation of coal, crude petroleum or petroleum
fuels or oil, or their derivatives;

deleted text begin (5)deleted text end new text begin (4)new text end any pipeline for transporting natural or synthetic gas at pressures in excess of
200 pounds per square inch with more than 50 miles of its length in Minnesota;

deleted text begin (6)deleted text end new text begin (5)new text end any facility designed for or capable of storing on a single site more than 100,000
gallons of liquefied natural gas or synthetic gas;

deleted text begin (7)deleted text end new text begin (6)new text end any underground gas storage facility requiring a permit pursuant to section
103I.681;

deleted text begin (8)deleted text end new text begin (7)new text end any nuclear fuel processing or nuclear waste storage or disposal facility; and

deleted text begin (9)deleted text end new text begin (8)new text end any facility intended to convert any material into any other combustible fuel and
having the capacity to process in excess of 75 tons of the material per hour.

new text begin This section is effective the day following final enactment and
applies to any project that has filed an application for a certificate of need or a site or route
permit from the commission on or after that date.
new text end

Minnesota Statutes 2022, section 216B.2425, subdivision 1, is amended to read:

The commission shall maintain a list of certified high-voltage
transmission linenew text begin and grid enhancing technologynew text end projects.

new text begin This section is effective June 1, 2025.
new text end

Minnesota Statutes 2022, section 216B.2425, is amended by adding a subdivision
to read:

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Capacity" means the maximum amount of electricity that can flow through a
transmission line while observing industry safety standards.
new text end

new text begin (c) "Congestion" means a condition in which a lack of transmission line capacity prevents
the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
new text end

new text begin (d) "Dynamic line rating" means hardware or software used to calculate the thermal
limit of existing transmission lines at a specific point in time by incorporating information
on real-time and forecasted weather conditions.
new text end

new text begin (e) "Grid enhancing technology" means hardware or software that reduces congestion
or enhances the flexibility of the transmission system by increasing the capacity of a
high-voltage transmission line or rerouting electricity from overloaded to uncongested lines,
while maintaining industry safety standards. Grid enhancing technologies include but are
not limited to dynamic line rating, advanced power flow controllers, and topology
optimization.
new text end

new text begin (f) "Power flow controller" means hardware and software used to reroute electricity
from overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (g) "Thermal limit" means the temperature a transmission line reaches when heat from
the electric current flow within the transmission line causes excessive sagging of the
transmission line.
new text end

new text begin (h) "Topology optimization" means a software technology that uses mathematical models
to identify reconfigurations in the transmission grid in order to reroute electricity from
overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (i) "Transmission line" has the meaning given to "high-voltage transmission line" in
section 216E.01. subdivision 4.
new text end

new text begin (j) "Transmission system" means a network of high-voltage transmission lines owned
or operated by an entity subject to this section that transports electricity to Minnesota
customers.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2022, section 216B.2425, subdivision 2, is amended to read:

(a) By November 1 of each odd-numbered year, a transmission projects report must
be submitted to the commission by each utility, organization, or company that:

(1) is a public utility, a municipal utility, a cooperative electric association, the generation
and transmission organization that serves each utility or association, or a transmission
company; and

(2) owns or operates electric transmission lines in Minnesota, except a company or
organization that owns a transmission line that serves a single customer or interconnects a
single generating facility.

(b) The report may be submitted jointly or individually to the commission.

(1) list specific present and reasonably foreseeable future inadequacies in the transmission
system in Minnesota;

(2) identify alternative means of addressing each inadequacy listednew text begin , including grid
enhancing technologies such as dynamic line rating, power flow controllers, topology
optimization, and other hardware or software that reduce congestion or enhance the flexibility
of the transmission systemnew text end ;

(3) identify general economic, environmental, and social issues associated with each
alternative; and

(4) provide a summary of public input related to the list of inadequacies and the role of
local government officials and other interested persons in assisting to develop the list and
analyze alternatives.

(d) To meet the requirements of this subdivision, reporting parties may rely on available
information and analysis developed by a regional transmission organization or any subgroup
of a regional transmission organization and may develop and include additional information
as necessary.

(e) In addition to providing the information required under this subdivision, a utility
operating under a multiyear rate plan approved by the commission under section 216B.16,
subdivision 19, shall identify in its report investments that it considers necessary to modernize
the transmission and distribution system by enhancing reliability, improving security against
cyber and physical threats, and by increasing energy conservation opportunities by facilitating
communication between the utility and its customers through the use of two-way meters,
control technologies, energy storage and microgrids, technologies to enable demand response,
and other innovative technologies.

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2022, section 216B.243, subdivision 3, is amended to read:

No proposed large energy facility shall
be certified for construction unless the applicant can show that demand for electricity cannot
be met more cost effectively through energy conservation and load-management measures
and unless the applicant has otherwise justified its need. In assessing need, the commission
shall evaluate:

(1) the accuracy of the long-range energy demand forecasts on which the necessity for
the facility is based;

(2) the effect of existing or possible energy conservation programs under sections 216C.05
to 216C.30 and this section or other federal or state legislation on long-term energy demand;

(3) the relationship of the proposed facility to overall state energy needs, as described
in the most recent state energy policy and conservation report prepared under section
216C.18, or, in the case of a high-voltage transmission line, the relationship of the proposed
line to regional energy needs, as presented in the transmission plan submitted under section
216B.2425;

(4) promotional activities that may have given rise to the demand for this facility;

(5) benefits of this facility, including its uses to protect or enhance environmental quality,
and to increase reliability of energy supply in Minnesota and the region;

(6) possible alternatives for satisfying the energy demand or transmission needs including
but not limited to potential for increased efficiency and upgrading of existing energy
generation and transmission facilities, load-management programs, and distributed generationnew text begin ,
except that the commission shall not evaluate alternative endpoints for a high-voltage
transmission line unless (i) the alternative endpoints are consistent with endpoints identified
in a Transmission Expansion Plan approved by the board of directors of the Midcontinent
Independent System Operator, or (ii) the applicant agrees to the evaluation of the alternative
endpointsnew text end ;

(7) the policies, rules, and regulations of other state and federal agencies and local
governments;

(8) any feasible combination of energy conservation improvements, required under
section 216B.241, that can (i) replace part or all of the energy to be provided by the proposed
facility, and (ii) compete with it economically;

(9) with respect to a high-voltage transmission line, the benefits of enhanced regional
reliability, access, or deliverability to the extent these factors improve the robustness of the
transmission system or lower costs for electric consumers in Minnesota;

(10) whether the applicant or applicants are in compliance with applicable provisions
of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file by a date
certain an application for certificate of need under this section or for certification as a priority
electric transmission project under section 216B.2425 for any transmission facilities or
upgrades identified under section 216B.2425, subdivision 7;

(11) whether the applicant has made the demonstrations required under subdivision 3a;
and

(12) if the applicant is proposing a nonrenewable generating plant, the applicant's
assessment of the risk of environmental costs and regulation on that proposed facility over
the expected useful life of the plant, including a proposed means of allocating costs associated
with that risk.

new text begin This section is effective the day following final enactment and
applies to dockets pending at the Public Utilities Commission on or after that date.
new text end

Minnesota Statutes 2023 Supplement, section 216B.243, subdivision 8, is amended
to read:

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a large wind energy conversion system, as defined in section deleted text begin 216F.01deleted text end new text begin 216E.01new text end ,
subdivision deleted text begin 2deleted text end new text begin 6anew text end , or a solar energy generating system, as defined in section 216E.01,
subdivision 9a, for which a site permit application is submitted by an independent power
producer under chapter 216E or 216F; deleted text begin or
deleted text end

(8) a large wind energy conversion system, as defined in section deleted text begin 216F.01deleted text end new text begin 216E.01new text end ,
subdivision deleted text begin 2deleted text end new text begin 6anew text end , or a solar energy generating system that is a large energy facility, as defined
in section 216B.2421, subdivision 2, engaging in a repowering project that:

(i) will not result in the system exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the system exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increasedeleted text begin .deleted text end new text begin ;
new text end

new text begin (9) a transmission line directly associated with and necessary to interconnect any of the
following facilities with the electric transmission grid:
new text end

new text begin (i) a large wind energy conversion system, as defined in section 216E.01, subdivision
6a;
new text end

new text begin (ii) a solar energy generating system that is a large electric power generating plant; or
new text end

new text begin (iii) an energy storage system, as defined in section 216E.01, subdivision 3a;
new text end

new text begin (10) an energy storage system, as defined in section 216E.01, subdivision 3a; or
new text end

new text begin (11) relocation of an existing high-voltage transmission line, provided the line's voltage
is not increased.
new text end

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating system
that is a large energy facility to increase its efficiency without increasing its nameplate
capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

Minnesota Statutes 2022, section 216B.243, subdivision 9, is amended to read:

This
section does not apply to a wind energy conversion system or a solar electric generation
facility that is intended to be used to meet the obligations of section 216B.1691new text begin , subdivision
2a or 2gnew text end ; provided that, after notice and comment, the commission determines that the
facility is a reasonable and prudent approach to meeting a utility's obligations under that
section. When making this determination, the commission must consider:

(1) the size of the facility relative to a utility's total need for renewable resources;

(2) alternative approaches for supplying the renewable energy to be supplied by the
proposed facility;

(3) the facility's ability to promote economic development, as required under section
216B.1691, subdivision 9;

(4) the facility's ability to maintain electric system reliability;

(5) impacts on ratepayers; and

(6) other criteria as the commission may determine are relevant.

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2022, section 216B.246, subdivision 3, is amended to read:

(a) If an electric transmission line has been approved
for construction in a federally registered planning authority transmission plan, the incumbent
electric transmission owner, or owners if there is more than one owner, shall give notice to
the commission, in writing, within deleted text begin 90deleted text end new text begin 30new text end days of approval, regarding its intent to construct,
own, and maintain the electric transmission line. If an incumbent electric transmission owner
gives notice of intent to build the electric transmission line then, unless exempt from the
requirements of section 216B.243, within deleted text begin 18deleted text end new text begin 12new text end months from the date of the notice described
in this paragraph deleted text begin or such longer time approved by the commissiondeleted text end , the incumbent electric
transmission owner shall file an application for a certificate of need under section 216B.243
or certification under section 216B.2425.

(b) If the incumbent electric transmission owner indicates that it does not intend to build
the transmission line, such notice shall fully explain the basis for that decision. If the
incumbent electric transmission owner, or owners, gives notice of intent not to build the
electric transmission line, then the commission may determine whether the incumbent
electric transmission owner or other entity will build the electric transmission line, taking
into consideration issues such as cost, efficiency, reliability, and other factors identified in
this chapter.

new text begin This section is effective the day following final enactment and
applies to any electric transmission line that has been approved for construction in a federally
registered planning authority transmission plan on or after that date.
new text end

Minnesota Statutes 2022, section 216E.03, as amended by Laws 2023, chapter 7,
sections 25, 26, 27, and 28, and Laws 2023, chapter 60, article 12, sections 50, 51, 52, 53,
and 54, is amended to read:

deleted text begin No person may constructdeleted text end A large electric generating plant
deleted text begin ordeleted text end new text begin ,new text end an energy storage systemnew text begin , or a large wind energy conversion system that has not received
a site permit from a county under section 216E.05, subdivision 4, may not be constructed:
(1)new text end without a site permit from the commissiondeleted text begin . A large electric generating plant or an energy
storage system may be constructed onlydeleted text end new text begin ; and (2)new text end on a site new text begin other than the site new text end approved by
the commission. The commission must incorporate into one proceeding the route selection
for a high-voltage transmission line that is directly associated with and necessary to
interconnect the large electric generating plant to the transmission system and whose need
is certified under section 216B.243.

No person may construct a high-voltage transmission line without
a route permit from the commission. A high-voltage transmission line may be constructed
only along a route approved by the commission.

new text begin (a) At least 30 days before filing an application
with the commission, an applicant must provide notice to:
new text end

new text begin (1) each local unit of government within which a site or route may be proposed;
new text end

new text begin (2) Minnesota Tribal governments, as defined under section 10.65, subdivision 2;
new text end

new text begin (3) the state agencies that are represented on the Environmental Quality Board; and
new text end

new text begin (4) the State Historic Preservation Office.
new text end

new text begin (b) The notice must describe the proposed project and provide the entities receiving the
notice an opportunity for preapplication coordination or feedback.
new text end

new text begin (a) Before submitting an application under this chapter,
an applicant must provide a draft application to commissioner of commerce for review. A
draft application must not be filed electronically.
new text end

new text begin (b) The commissioner of commerce's draft application review must focus on the
application's completeness and clarifications that may assist the commission's review of the
application. Upon completion of the preapplication review under this subdivision,
commissioner of commerce must provide the applicant a summary of the completeness
review. The applicant may include the completeness review summary with the applicant's
application under subdivision 3.
new text end

new text begin (a) new text end Any person seeking to construct a large electric power facility
must apply to the commission for a site or route permit, as applicable. The application shall
contain such information as the commission may require. The applicant shall propose deleted text begin at
least two sitesdeleted text end new text begin a single sitenew text end for a large electric power facility and deleted text begin two routesdeleted text end new text begin one routenew text end for a
high-voltage transmission line. deleted text begin Neither of the two proposed routes may be designated as a
preferred route and all proposed routes must be numbered and designated as alternatives.
The commission shall determine whether an application is complete and advise the applicant
of any deficiencies within ten days of receipt. An application is not incomplete if information
not in the application can be obtained from the applicant during the first phase of the process
and that information is not essential for notice and initial public meetings.
deleted text end

new text begin (b) The commission's designee must determine whether an application is complete and
advise the applicant of any deficiencies within ten days of the date an application is received.
new text end

new text begin (c) An application is not incomplete if:
new text end

new text begin (1) information that is not included in the application may be obtained from the applicant
prior to the initial public meeting; and
new text end

new text begin (2) the information that is not included in the application is not essential to provide
adequate notice.
new text end

deleted text begin At least 90 days before filing an application with the
commission, the applicant shall provide notice to each local unit of government within
which a route may be proposed. The notice must describe the proposed project and the
opportunity for a preapplication consultation meeting with local units of government as
provided in subdivision 3b.
deleted text end

deleted text begin Within 30 days of receiving a project
notice, local units of government may request the applicant to hold a consultation meeting
with local units of government. Upon receiving notice from a local unit of government
requesting a preapplication consultation meeting, the applicant shall arrange the meeting at
a location chosen by the local units of government. A single public meeting for which each
local government unit requesting a meeting is given notice satisfies the meeting requirement
of this subdivision.
deleted text end

Within 15 days after submission of an application to the
commission, the applicant shall publish notice of the application in a legal newspaper of
general circulation in each county in which the site or route is proposed and send a copy of
the application by certified mail to any regional development commission, county,
incorporated municipality, and town in which any part of the site or route is proposed.
Within the same 15 days, the applicant shall also send a notice of the submission of the
application and description of the proposed project to each owner whose property is on or
adjacent to any of the proposed sites for the power plant or along any of the proposed routes
for the transmission line. The notice must identify a location where a copy of the application
can be reviewed. For the purpose of giving mailed notice under this subdivision, owners
are those shown on the records of the county auditor or, in any county where tax statements
are mailed by the county treasurer, on the records of the county treasurer; but other
appropriate records may be used for this purpose. The failure to give mailed notice to a
property owner, or defects in the notice, does not invalidate the proceedings, provided a
bona fide attempt to comply with this subdivision has been made. Within the same 15 days,
the applicant shall also send the same notice of the submission of the application and
description of the proposed project to those persons who have requested to be placed on a
list maintained by the commission for receiving notice of proposed large electric generating
power plants and high voltage transmission lines.

deleted text begin (a) The commissioner of the Department of Commerce
shall prepare for the commission an environmental impact statement on each proposed large
electric power facility for which a complete application has been submitted. The
commissioner shall not consider whether or not the project is needed. No other state
environmental review documents shall be required. The commissioner shall study and
evaluate any site or route proposed by an applicant and any other site or route the commission
deems necessary that was proposed in a manner consistent with rules concerning the form,
content, and timeliness of proposals for alternate sites or routes, excluding any alternate
site for a solar energy generating system that was not proposed by an applicant.
deleted text end

deleted text begin (b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a
large electric power generating plant and is not proposed by a utility, the commissioner
must make a finding in the environmental impact statement whether the project is likely to
result in a net reduction of carbon dioxide emissions, considering both the utility providing
electric service to the proposed cogeneration facility and any reduction in carbon dioxide
emissions as a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.
deleted text end

deleted text begin The commission shall hold a public hearing on an application
for a site or route permit for a large electric power facility. All hearings held for designating
a site or route shall be conducted by an administrative law judge from the Office of
Administrative Hearings pursuant to the contested case procedures of chapter 14. Notice
of the hearing shall be given by the commission at least ten days in advance but no earlier
than 45 days prior to the commencement of the hearing. Notice shall be by publication in
a legal newspaper of general circulation in the county in which the public hearing is to be
held and by certified mail to chief executives of the regional development commissions,
counties, organized towns, townships, and the incorporated municipalities in which a site
or route is proposed. Any person may appear at the hearings and offer testimony and exhibits
without the necessity of intervening as a formal party to the proceedings. The administrative
law judge may allow any person to ask questions of other witnesses. The administrative
law judge shall hold a portion of the hearing in the area where the power plant or transmission
line is proposed to be located.
deleted text end

new text begin (a) Within 20 days after the date the commission determines
an application is complete, to the extent practicable, the commission must hold at least one
public meeting in a location near the proposed project's location to explain the permitting
process, present major issues, and respond to questions raised by the public.
new text end

new text begin (b) At the public meeting and in written comments accepted for at least ten days following
the date of the public meeting, the commission must accept comments on potential impacts,
permit conditions, and alternatives the commission should evaluate when considering the
application.
new text end

new text begin Within 30 days after the date the public comment period closes
following the public hearing in section 216.035, subdivision 2, or section 216E.04,
subdivision 6, to the extent practicable, the commission must:
new text end

new text begin (1) prepare a draft site or route permit for the proposed facility. The draft permit must
identify the person or persons who are the permittee, describe the proposed project, and
include proposed permit conditions. A draft site or route permit does not authorize a person
to construct a proposed facility. The commission may change the draft site permit in any
respect before final issuance or may deny the permit; and
new text end

new text begin (2) identify any issues or alternatives that must be evaluated in an environmental
assessment, addendum prepared under section 216E.041, or an environmental impact
statement prepared under section 216E.035.
new text end

(a) The commission's site
and route permit determinations must be guided by the state's goals to conserve resources,
minimize environmental impacts, minimize human settlement and other land use conflicts,
and ensure the state's electric energy security through efficient, cost-effective power supply
and electric transmission infrastructure.

(b) To facilitate the study, research, evaluation, and designation of sites and routes, the
commission shall be guided by, but not limited to, the following considerations:

(1) evaluation of research and investigations relating to the effects on land, water and
air resources of large electric power facilities and the effects of water and air discharges
and electric and magnetic fields resulting from such facilities on public health and welfare,
vegetation, animals, materials and aesthetic values, including baseline studies, predictive
modeling, and evaluation of new or improved methods for minimizing adverse impacts of
water and air discharges and other matters pertaining to the effects of power plants on the
water and air environment;

(2) environmental evaluation of sites and routes proposed for future development and
expansion and their relationship to the land, water, air and human resources of the state;

(3) evaluation of the effects of new electric power generation and transmission
technologies and systems related to power plants designed to minimize adverse environmental
effects;

(4) evaluation of the potential for beneficial uses of waste energy from proposed large
electric power generating plants;

(5) analysis of the direct and indirect economic impact of proposed sites and routes
including, but not limited to, productive agricultural land lost or impaired;

(6) evaluation of adverse direct and indirect environmental effects that cannot be avoided
should the proposed site and route be accepted;

(7) evaluation of alternatives to the applicant's proposed site or route proposed pursuant
to subdivisions 1 and 2;

(8) evaluation of potential routes that would use or parallel existing railroad and highway
rights-of-way;

(9) evaluation of governmental survey lines and other natural division lines of agricultural
land so as to minimize interference with agricultural operations;

(10) evaluation of the future needs for additional high-voltage transmission lines in the
same general area as any proposed route, and the advisability of ordering the construction
of structures capable of expansion in transmission capacity through multiple circuiting or
design modifications;

(11) evaluation of irreversible and irretrievable commitments of resources should the
proposed site or route be approved;

(12) when appropriate, consideration of problems raised by other state and federal
agencies and local entities;

(13) evaluation of the benefits of the proposed facility with respect to (i) the protection
and enhancement of environmental quality, and (ii) the reliability of state and regional
energy supplies;

(14) evaluation of the proposed facility's impact on socioeconomic factors; and

(15) evaluation of the proposed facility's employment and economic impacts in the
vicinity of the facility site and throughout Minnesota, including the quantity and quality of
construction and permanent jobs and their compensation levels. The commission must
consider a facility's local employment and economic impacts, and may reject or place
conditions on a site or route permit based on the local employment and economic impacts.

(c) If the commission's rules are substantially similar to existing regulations of a federal
agency to which the utility in the state is subject, the federal regulations must be applied by
the commission.

(d) No site or route shall be designated which violates state agency rules.

(e) The commission must make specific findings that it has considered locating a route
for a high-voltage transmission line on an existing high-voltage transmission route and the
use of parallel existing highway right-of-way and, to the extent those are not used for the
route, the commission must state the reasons.

The permanent location of monuments or markers
found or placed by a utility in a survey of right-of-way for a route shall be placed on record
in the office of the county recorder or registrar of titles. No fee shall be charged to the utility
for recording this information.

deleted text begin The commission shall make a final decision on an application within
60 days after receipt of the report of the administrative law judge. A final decision on the
request for a site permit or route permit shall be made within one year after the commission's
determination that an application is complete. The commission may extend this time limit
for up to three months for just cause or upon agreement of the applicant.
deleted text end

deleted text begin (a) No site permit shall be issued in violation of the site
selection standards and criteria established in this section and in rules adopted by the
commission. When the commission designates a site, it shall issue a site permit to the
applicant with any appropriate conditions. The commission shall publish a notice of its
decision in the State Register within 30 days of issuance of the site permit.
deleted text end

deleted text begin (b) No route permit shall be issued in violation of the route selection standards and
criteria established in this section and in rules adopted by the commission. When the
commission designates a route, it shall issue a permit for the construction of a high-voltage
transmission line specifying the design, routing, right-of-way preparation, and facility
construction it deems necessary, and with any other appropriate conditions. The commission
may order the construction of high-voltage transmission line facilities that are capable of
expansion in transmission capacity through multiple circuiting or design modifications. The
commission shall publish a notice of its decision in the State Register within 30 days of
issuance of the permit.
deleted text end

deleted text begin (c) The commission must require as a condition of permit issuance, including issuance
of a modified permit for a repowering project, as defined in section 216B.243, subdivision
8, paragraph (b), that the recipient of a site permit to construct a large electric power
generating plant, including all of the permit recipient's construction contractors and
subcontractors on the project: (1) pay no less than the prevailing wage rate, as defined in
deleted text end deleted text begin section 177.42; and (2) be subject to the requirements and enforcement provisions under
sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
deleted text end

(a) The commissioner of the Department of Commerce shall consult with other
state agencies and provide technical expertise and other assistance to the commission or to
individual members of the commission for activities and proceedings under this chapter
deleted text begin and chapters 216Fdeleted text end and new text begin chapter new text end 216G. This assistance shall include the sharing of power
plant siting and routing staff and other resources as necessary. The commissioner shall
periodically report to the commission concerning the Department of Commerce's costs of
providing assistance. The report shall conform to the schedule and include the required
contents specified by the commission. The commission shall include the costs of the
assistance in assessments for activities and proceedings under those sections and reimburse
the special revenue fund for those costs. If either the commissioner or the commission deems
it necessary, the department and the commission shall enter into an interagency agreement
establishing terms and conditions for the provision of assistance and sharing of resources
under this subdivision.

(b) Notwithstanding the requirements of section 216B.33, the commissioner may take
any action required or requested by the commission related to the environmental review
requirements under chapter 216E deleted text begin or 216Fdeleted text end immediately following a hearing and vote by the
commission, prior to issuing a written order, finding, authorization, or certificate.

new text begin The commission must require as a condition of permit
issuance, including issuance of a modified permit for a repowering project, as defined in
section 216B.243, subdivision 8, paragraph (b), that the recipient of a site permit to construct
a large electric power generating plant, including all of the permit recipient's construction
contractors and subcontractors on the project:
new text end

new text begin (1) pay no less than the prevailing wage rate, as defined in section 177.42; and
new text end

new text begin (2) are subject to the requirements and enforcement provisions under sections 177.27,
177.30, 177.32, 177.41 to 177.435, and 177.45.
new text end

new text begin This section applies to applications for a site or route permit
filed under section 216E.035 or 216E.04.
new text end

new text begin This section may be used to determine:
new text end

new text begin (1) whether a proposal is subject to the commission's siting or routing jurisdiction under
this chapter; or
new text end

new text begin (2) which review process is applicable at the time of the initial application.
new text end

new text begin An applicant must follow the provisions of section
216E.021 or 216E.022, as applicable, to determine the size of a solar energy generating
system or a wind energy conversion system. In determining the size of an energy storage
system, an applicant must combine the alternating current nameplate capacity of any other
energy storage system that:
new text end

new text begin (1) is constructed within the same 12-month period as the energy storage system; and
new text end

new text begin (2) exhibits characteristics of being a single development, including but not limited to
ownership structure, an umbrella sales arrangement, shared interconnection, revenue sharing
arrangements, and common debt or equity financing.
new text end

new text begin For transmission lines, the applicant must describe the
applicability issue and provide sufficient facts to support the determination.
new text end

new text begin (a) The commission must provide
forms and assistance to help applicants make a request for an applicability determination.
new text end

new text begin (b) Upon written request from an applicant, the commission must provide a written
determination regarding applicability under this section. To the extent practicable, the
commission must provide the written determination within 30 days of the date the request
was received or 30 days of the date information that the commission requested from the
applicant is received, whichever is later. This written determination constitutes a final
decision of the commission.
new text end

new text begin (a) The commissioner of commerce shall prepare
for the commission an environmental impact statement on each proposed large electric
power facility for which a complete application has been submitted. The commissioner shall
not consider whether or not the project is needed. No other state environmental review
documents are required. The commissioner shall study and evaluate any site or route proposed
by an applicant and any other site or route the commission deems necessary that was proposed
in a manner consistent with rules concerning the form, content, and timeliness of proposals
for alternate sites or routes, excluding any alternate site for a solar energy generating system
that was not proposed by an applicant.
new text end

new text begin (b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a
large electric power generating plant and is not proposed by a utility, the commissioner
must make a finding in the environmental impact statement whether the project is likely to
result in a net reduction of carbon dioxide emissions, considering both the utility providing
electric service to the proposed cogeneration facility and any reduction in carbon dioxide
emissions as a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.
new text end

new text begin (a) In addition to the public meeting required under section
216E.03, subdivision 5a, the commission shall hold a public hearing on an application for
a site or route permit for a large electric power facility. A hearing held for designating a
site or route shall be conducted by an administrative law judge from the Office of
Administrative Hearings pursuant to the contested case procedures of chapter 14 only if
commission staff determines that a disputed matter exists that may require clarification
through expert testimony. Notice of the hearing shall be given by the commission at least
ten days in advance but no earlier than 45 days prior to the commencement of the hearing.
Notice shall be by publication in a legal newspaper of general circulation in the county in
which the public hearing is to be held and by certified mail to chief executives of the regional
development commissions, Tribal governments, counties, organized towns, townships, and
the incorporated municipalities in which a site or route is proposed. Any person may appear
at the hearings and offer testimony and exhibits without the necessity of intervening as a
formal party to the proceedings. The administrative law judge may allow any person to ask
questions of other witnesses. The administrative law judge shall hold a portion of the hearing
in the area where the power plant or transmission line is proposed to be located.
new text end

new text begin (b) The commission must accept written comments submitted at least ten days following
the hearing regarding project impacts, permit conditions, and alternatives the commission
should evaluate when considering the application.
new text end

new text begin (a) The commission shall make a final decision on an application
within 60 days after receipt of the report of the administrative law judge, if applicable. A
final decision on the request for a site permit or route permit shall be made within one year
after the commission's determination that an application is complete. The commission may
extend the time limit under this paragraph for up to three months for just cause or upon
agreement with the applicant.
new text end

new text begin (b) To ensure that a final decision complies with the requirements of this subdivision,
the commission shall establish deadlines for the submission of comments by state agencies
on applications and environmental review documents that expedite the siting and route
permitting process.
new text end

new text begin (a) No site permit shall be issued by the commission: (1) in
violation of the site selection standards and criteria established in this section and in rules
adopted by the commission; or (2) if the commission determines that the proposed project
is not in the public interest. When the commission designates a site, the commission shall
issue a site permit to the applicant with any appropriate conditions. The commission shall
publish a notice of the commission's decision in the State Register within 30 days of issuance
of the site permit.
new text end

new text begin (b) No route permit shall be issued by the commission: (1) in violation of the route
selection standards and criteria established in this section and in rules adopted by the
commission; or (2) if the commission determines that the proposed project is not in the
public interest. When the commission designates a route, the commission shall issue a permit
for the construction of a high-voltage transmission line specifying the design, routing,
right-of-way preparation, and facility construction the commission deems necessary, and
with any other appropriate conditions. The commission may order the construction of
high-voltage transmission line facilities that are capable of expansion in transmission capacity
through multiple circuiting or design modifications. The commission shall publish a notice
of the commission's decision in the State Register within 30 days of issuance of the permit,
to the extent practicable.
new text end

new text begin (c) Immediately following the commission's vote granting an applicant a site or route
permit, and prior to issuance of a written commission order embodying that decision, the
applicant may submit to commission staff for review preconstruction compliance filings
specifying details of the applicant's proposed site operations.
new text end

Minnesota Statutes 2022, section 216E.04, as amended by Laws 2023, chapter
7, section 29, and Laws 2023, chapter 60, article 12, section 55, is amended to read:

An applicant who seeks a site permit or
route permit for one of the projects identified in this section shall have the option of following
the procedures in this section rather than the procedures in section deleted text begin 216E.03deleted text end new text begin 216E.035new text end . The
applicant shall notify the commission at the time the application is submitted which procedure
the applicant chooses to follow.

The requirements and procedures in this section apply to
the following projectsnew text begin , as presented in the application submitted to the commissionnew text end :

(1) large electric power generating plants with a capacity of less than 80 megawattsnew text begin that
are not fueled by natural gasnew text end ;

deleted text begin (2) large electric power generating plants that are fueled by natural gas;
deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end high-voltage transmission lines deleted text begin of between 100 and 200 kilovoltsdeleted text end new text begin below 345
kilovolts and less than 30 miles of length in Minnesotanew text end ;

new text begin (3) high-voltage transmission lines of between 100 and 300 kilovolts of any length;
new text end

deleted text begin (4) high-voltage transmission lines in excess of 200 kilovolts and less than 30 miles in
length in Minnesota;
deleted text end

deleted text begin (5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of
the distance of the line in Minnesota will be located along existing high-voltage transmission
line right-of-way;
deleted text end

deleted text begin (6) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length;
deleted text end

deleted text begin (7)deleted text end new text begin (4)new text end a high-voltage transmission line rerouting to serve the demand of a single customer
when the rerouted line will be located at least 80 percent on property owned or controlled
by the customer or the owner of the transmission line;

deleted text begin (8)deleted text end new text begin (5)new text end large electric power generating plants that are powered by solar energy; deleted text begin and
deleted text end

new text begin (6) a wind energy conversion system of five megawatts or greater alternating current
capacity; and
new text end

deleted text begin (9)deleted text end new text begin (7)new text end energy storage systems.

The applicant for a site or route permit for any of the projects
listed in subdivision 2 who chooses to follow these procedures shall submit information as
the commission may require, but the applicant shall not be required to propose a second
site or route for the project. The applicant shall identify in the application any other sites
or routes that were rejected by the applicant and the commission may identify additional
sites or routes to consider during the processing of the application. The commission shall
determine whether an application is complete and advise the applicant of any deficiencies.

Upon submission of an application under this section,
the applicant shall provide the same notice as required deleted text begin bydeleted text end new text begin undernew text end section 216E.03, subdivision
4.

deleted text begin For the projects identified in subdivision 2 and
following these procedures, the commissioner of the Department of Commercedeleted text end new text begin The applicantnew text end
shall prepare for the commission an environmental assessmentnew text begin for projects identified in
subdivision 2 that follows the procedures in section 216E.041new text end . deleted text begin The environmental assessment
shall contain information on the human and environmental impacts of the proposed project
and other sites or routes identified by the commission and shall address mitigating measures
for all of the sites or routes considered. The environmental assessment shall be the only
state environmental review document required to be prepared on the project.
deleted text end

new text begin (a) In addition to the public meeting required under section
216E.03, subdivision 5a, new text end the commission shall hold a public hearing in the area where the
facility is proposed to be located. The commission shall give notice of the public hearing
in the same manner as notice under section deleted text begin 216E.03, subdivision 6deleted text end new text begin 216E.035, subdivision
2new text end . The commission shall conduct the public hearing under procedures established by the
commission. The applicant shall be present at the hearing to present evidence and to answer
questions. The commission shall provide opportunity at the public hearing for any person
to present comments and to ask questions of the applicant and commission staff. The
commission shall also afford interested persons an opportunity to submit written comments
into the record.

new text begin (b) The commission must accept written comments submitted for at least ten days
following the hearing regarding project impact, permit conditions, and alternatives the
commission should evaluate when considering the application.
new text end

new text begin (a) new text end The commission shall make a final decision on an application
within 60 days after completion of the public hearing. A final decision on the request for a
site permit or route permit under this section shall be made within six months after the
commission's determination that an application is complete. The commission may extend
this time limit for up to three months for just cause or upon agreement of the applicant.

deleted text begin The considerations in section 216E.03, subdivision 7, shall
apply to any projects subject to this section.
deleted text end

(a) No site permit shall be issued new text begin by the commission: (1) new text end in
violation of the site selection standards and criteria established in this section and in rules
adopted by the commissionnew text begin ; or (2) if the commission determines that the proposed project
is not in the public interestnew text end . When the commission designates a site, it shall issue a site
permit to the applicant with any appropriate conditions. The commission shall publish a
notice of its decision in the State Register within 30 days of issuance of the site permit.

(b) No route deleted text begin designation shall be madedeleted text end new text begin shall be issued: (1)new text end in violation of the route
selection standards and criteria established in this section and in rules adopted by the
commissionnew text begin ; or (2) if the commission determines that the proposed project is not in the
public interestnew text end . When the commission designates a route, it shall issue a permit for the
construction of a high-voltage transmission line specifying the design, routing, right-of-way
preparation, and facility construction it deems necessary and with any other appropriate
conditions. The commission may order the construction of high-voltage transmission line
facilities that are capable of expansion in transmission capacity through multiple circuiting
or design modifications. The commission shall publish a notice of its decision in the State
Register within 30 days of issuance of the permit.

new text begin (c) Immediately following the commission's vote granting an applicant a site or route
permit, and prior to issuance of a written commission order embodying the decision, the
applicant may submit to commission staff for review preconstruction compliance filings
specifying details of the applicant's proposed site operations.
new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "General list" means a list maintained by the commission of persons who request to
be notified of the acceptance of applications for site permits or route permits.
new text end

new text begin (d) "Project contact list" means a list maintained by the commission of persons who
request to receive notices regarding a specific project for which a site permit or route permit
is sought.
new text end

new text begin The applicant shall prepare and submit
with the permit application an environmental assessment on each proposed project being
reviewed under section 216E.04. The environmental assessment must contain, at a minimum:
new text end

new text begin (1) a general description of the proposed facility;
new text end

new text begin (2) a list of any alternative sites or routes that are addressed;
new text end

new text begin (3) a discussion of the potential impacts of the proposed project and each alternative site
or route on the human and natural environment;
new text end

new text begin (4) a discussion of mitigative measures that could reasonably be implemented to eliminate
or minimize any adverse impacts identified for the proposed project and each alternative
site or route analyzed;
new text end

new text begin (5) an analysis of the feasibility of each alternative site or route considered; and
new text end

new text begin (6) a list of permits required for the project.
new text end

new text begin Upon receipt of the
environmental assessment from the applicant, the commissioner shall publish notice in the
EQB Monitor of the availability of the environmental assessment and mail notice of the
availability of the document to those persons on the general list or the project contact list.
The commissioner shall provide a copy of the environmental assessment to any public
agency with authority to permit or approve the proposed project. The commissioner shall
post the environmental assessment on the agency's web page.
new text end

new text begin (a) The commissioner
shall provide the public with an opportunity to comment on the environmental assessment
by holding a public meeting and by soliciting public comments. The commissioner shall
mail notice of the meeting to those persons on either the general list or the project contact
list at least ten days before the meeting. The commissioner shall provide at least seven days
from the date of the public meeting for the public to submit comments on the environmental
assessment.
new text end

new text begin (b) Any person or any member agency of the Environmental Quality Board may, at the
public meeting or in written comments submitted to the commissioner, request that the
Department of Commerce analyze any of the following issues in an addendum to the
environmental assessment:
new text end

new text begin (1) one or more alternative sites or routes;
new text end

new text begin (2) additional mitigation measures for environmental impacts identified in the
environmental assessment; or
new text end

new text begin (3) specific human or environmental impacts that were not addressed or not addressed
adequately in the environmental assessment.
new text end

new text begin (c) A person requesting additional environmental analysis in an addendum under
paragraph (b) must submit to the commissioner (1) an explanation of why the request should
be accepted, and (2) all supporting information the person wants the commissioner to
consider. The commissioner shall provide the applicant with an opportunity to respond to
each request. The commissioner shall prepare an addendum in response to a request, or at
the commissioner's own discretion, only if the commissioner determines that the additional
analysis assists the commission's ultimate decision on the permit application, including the
establishment of permit conditions.
new text end

new text begin (d) In making the commission's final decision, the commission must consider the
environmental assessment, the addendum to the environmental assessment, if any, comments
received at or after the public meeting, and the entirety of the record on environmental and
human health impacts.
new text end

new text begin (e) The commissioner shall follow the notification procedures established for an
environmental assessment in subdivision 3 with respect to an addendum prepared under
subdivision 4.
new text end

new text begin If the commission has issued a certificate of need to an
applicant for a large electric power generating plant or high-voltage transmission line or
placed a high-voltage transmission line on the certified project list maintained by the
commission under section 216B.2425, subdivision 3, the environmental assessment of the
project shall not address (1) questions of need, including size, type, and timing; (2) questions
of alternative system configurations; or (3) questions of voltage.
new text end

new text begin An environmental assessment and
addendum, if prepared, must be the only state environmental review documents required
to be prepared by the commissioner on a project qualifying for review under section 216E.04.
An environmental assessment worksheet or environmental impact statement is not required.
Environmental review at the certificate of need stage before the commission must be
performed in accordance with Minnesota Rules, parts 7849.1000 to 7849.2100.
new text end

new text begin The commissioner shall assess the department's cost to prepare an
addendum to an environmental assessment to the applicant.
new text end

new text begin (a) This section applies to a request by the owner of a
large electric power facility to modify any provision or condition of a site or route permit
issued by the commission, including permit amendments to:
new text end

new text begin (1) upgrade or rebuild an existing electric line and associated facilities to a voltage
capable of operating between 100 kilovolts and 300 kilovolts; or
new text end

new text begin (2) repower or refurbish a large electric power generating plant, a large wind energy
conversion system, a solar energy generating system, or an energy storage system that
increases the efficiency of the facility. For a large electric power generating plant, an increase
in efficiency means a reduction in the amount of British thermal units required to generate
a kilowatt hour of electricity at the facility.
new text end

new text begin (b) A permit amendment must not be approved under this section if the permit
amendment:
new text end

new text begin (1) results in significant changes in the environmental or human health impacts of the
facility;
new text end

new text begin (2) increases the developed area within the permitted site; or
new text end

new text begin (3) increases the facility's nameplate capacity above the nameplate capacity in the facility's
most recent interconnection agreement.
new text end

new text begin A person seeking a permit amendment under this section must
submit an application in writing to the commissioner on a form prescribed by the
commissioner. The application must describe:
new text end

new text begin (1) the permit modification sought;
new text end

new text begin (2) how the request meets the applicability criteria under subdivision 1; and
new text end

new text begin (3) any changes in environmental or health impacts that would result from implementation
of the amendment that were not addressed in the environmental document accompanying
the initial permit application.
new text end

new text begin The commission must mail notice that the application was received to
persons on the general list and, if applicable, to persons on the project contact list.
new text end

new text begin The commission must accept written comments on the
application and requests to bring the amendment to the commission for consideration for
at least ten days following service of notice. The applicant must respond to comments within
seven days of the close of the comment period.
new text end

new text begin Within 20 days of the date the public comment period closes, the
commission's designee must decide whether to authorize the permit amendment, bring the
matter to the commission for consideration, or determine that the application requires a
permitting decision under another section in this chapter.
new text end

new text begin The commission may approve an amendment that places reasonable
conditions on the permittee. The commission must notify the applicant in writing of the
commission's decision and send a copy of the decision to any person who requested
notification or filed comments on the application.
new text end

new text begin An owner or operator of a large electric power generating plant
or high-voltage transmission line that was not issued a permit by the commission may seek
approval to modify a project listed under subdivision 1, clause (1) or (2), from the local unit
of government if the facility qualifies for standard review under section 216E.04 or local
review under section 216E.05.
new text end

new text begin A permit issued by the commission is not required
to construct:
new text end

new text begin (1) a small wind energy conversion system;
new text end

new text begin (2) a power plant or solar generating system with a capacity of less than 50 megawatts;
new text end

new text begin (3) an energy storage system with a capacity of less than ten megawatts;
new text end

new text begin (4) a transmission line that (i) has a capacity of 100 kilovolts or more, and (ii) is less
than 1,500 feet in length; or
new text end

new text begin (5) a transmission line that has a capacity of less than 100 kilovolts.
new text end

new text begin A person that proposes a facility listed in subdivision 1 must
(1) obtain any approval required by local, state, or federal units of government with
jurisdiction over the project, and (2) comply with the environmental review requirements
under chapter 116D and Minnesota Rules, chapter 4410.
new text end

new text begin If a project proposed by a public utility applying for a site
or route permit under this chapter was not required to obtain a certificate of need under
section 216B.243, the commission must review the proposed cost of the project and the
project's estimated economic impact on Minnesota ratepayers. The commission may reject
a site or route permit application based solely on project costs that the commission determines
are not reasonable and prudent.
new text end

new text begin In determining a proposed facility's cost and economic impact,
the commission must analyze and consider the following:
new text end

new text begin (1) the construction cost of the proposed facility and the cost of the energy the proposed
facility generates, compared to the costs of reasonable alternatives;
new text end

new text begin (2) the economic impact of the proposed facility, or a suitable modification of the
proposed facility, compared to:
new text end

new text begin (i) the impact of reasonable alternatives; and
new text end

new text begin (ii) not building the facility; and
new text end

new text begin (3) the cost and economic impact of the proposed facility compared with similar facilities
located elsewhere.
new text end

new text begin This section is effective the day following final enactment and
applies to any site or route permit filed by the commission on or after that date.
new text end

Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 3, is amended
to read:

(a) State agencies authorized to issue permits
required for construction or operation of large electric power facilities shall participate
during routing and siting at public hearings and all other activities of the commission on
specific site or route designations and design considerations of the commission, and shall
clearly state whether the site or route being considered for designation or permit and other
design matters under consideration for approval will be in compliance with state agency
standards, rules, or policies.

(b) An applicant for a permit under this section or under chapter 216G shall notify the
commissioner of agriculture if the proposed project will impact cultivated agricultural land,
as that term is defined in section 216G.01, subdivision 4. The commissioner may participate
and advise the commission as to whether to grant a permit for the project and the best options
for mitigating adverse impacts to agricultural lands if the permit is granted. The Department
of Agriculture shall be the lead agency on the development of any agricultural mitigation
plan required for the project.

new text begin (c) The State Historic Preservation Office must comply with the requirements of this
section. The commission's consideration of the State Historic Preservation Office's comments
satisfies the requirements of section 138.665, when applicable.
new text end

Minnesota Statutes 2022, section 216F.02, is amended to read:

deleted text begin (a) The requirements of chapter 216E do not apply to the siting of LWECS, except for
sections 216E.01; 216E.03, subdivision 7; 216E.08; 216E.11; 216E.12; 216E.14; 216E.15;
216E.17; and 216E.18, subdivision 3, which do apply.
deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end Any person may construct an SWECS without complying with deleted text begin chapter 216E ordeleted text end
this chapter.

deleted text begin (c)deleted text end new text begin (b)new text end Nothing in this chapter shall preclude a local governmental unit from establishing
requirements for the siting and construction of SWECS.

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Capacity" means the maximum amount of electricity that can flow through a
transmission line while observing industry safety standards.
new text end

new text begin (f) "Line rating methodology" means a methodology used to calculate the maximum
amount of electricity that can be carried by a transmission line without exceeding thermal
limits designed to ensure safety.
new text end

new text begin (g) "Power flow controller" means hardware and software used to reroute electricity
from overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (h) "Thermal limit" means the temperature a transmission line reaches when heat from
the electric current flow within the transmission line causes excessive sagging of the
transmission line.
new text end

new text begin (i) "Topology optimization" means a software technology that uses mathematical models
to identify reconfigurations in the transmission grid in order to reroute electricity from
overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (j) "Transmission line" has the meaning given to "high-voltage transmission line" in
section 216E.01. subdivision 4.
new text end

new text begin (k) "Transmission system" means a network of high-voltage transmission lines owned
or operated by an entity subject to this section that transports electricity to Minnesota
customers.
new text end

new text begin An entity that owns more than 750 miles of transmission
lines in Minnesota, as reported in the state transmission report submitted to the Public
Utilities Commission under Minnesota Statutes, section 216B.2425, by November 1, 2025,
must include in that report information that:
new text end

new text begin (1) identifies, during each of the last three years, locations that experienced 168 hours
or more of congestion, or the ten locations at which the most costly congestion occurred,
whichever measure produces the greater number of locations;
new text end

new text begin (2) estimates the frequency of congestion at each location and the increased cost to
ratepayers resulting from the substitution of higher-priced electricity;
new text end

new text begin (3) identifies locations on each transmission system that are likely to experience high
levels of congestion during the next five years;
new text end

new text begin (4) evaluates the technical feasibility and estimates the cost of installing one or more
grid enhancing technologies to address each instance of grid congestion identified in clause
(1), and projects the grid enhancing technology's efficacy in reducing congestion;
new text end

new text begin (5) analyzes the cost-effectiveness of installing grid enhancing technologies to address
each instance of congestion identified in clause (1) by using the information developed in
clause (2) to calculate the payback period of each installation, using a methodology developed
by the commission;
new text end

new text begin (6) proposes an implementation plan, including a schedule and cost estimate, to install
grid enhancing technologies at each congestion point identified in clause (1) at which the
payback period is less than or equal to a value determined by the commission, in order to
maximize transmission system capacity; and
new text end

new text begin (7) explains the transmission owner's current line rating methodology.
new text end

new text begin (a) The commission shall review the
implementation plans proposed by each reporting entity as required in subdivision 2, clause
(6), and must:
new text end

new text begin (1) review, and may approve, reject, or modify, the plan; and
new text end

new text begin (2) issue an order requiring implementation of an approved plan.
new text end

new text begin (b) Within 90 days of the commission's issuance of an order under this subdivision each
public utility shall file with the commission a plan containing a workplan, cost estimate,
and schedule for implementing the elements of the plan approved by the commission that
are located within the public utility's electric service area. For each entity required to report
under this section that is not a public utility, the commission's order is advisory.
new text end

new text begin Notwithstanding any other provision of this chapter, the
commission may approve cost recovery under Minnesota Statutes, section 216B.16, including
an appropriate rate of return, of any prudent and reasonable investments made or expenses
incurred by a public utility to administer and implement a grid enhancing technologies plan
approved by the commission under this section.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin The revisor of statutes shall renumber each section of Minnesota Statutes listed in column
A with the number listed in column B. The revisor shall also make necessary cross-reference
changes consistent with the renumbering.
new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin 216F.01, subdivision 2 new text end	new text begin 216E.01, subdivision 6a new text end
	new text begin 216F.01, subdivision 3 new text end	new text begin 216E.01, subdivision 9b new text end
	new text begin 216F.01, subdivision 4 new text end	new text begin 216E.01, subdivision 11 new text end
	new text begin 216F.011 new text end	new text begin 216E.022 new text end
	new text begin 216F.02 new text end	new text begin 216E.023 new text end
	new text begin 216F.06 new text end	new text begin 216E.055 new text end
	new text begin 216F.07 new text end	new text begin 216E.10, subdivision 1a new text end
	new text begin 216F.08 new text end	new text begin 216E.05, subdivision 4 new text end
	new text begin 216F.081 new text end	new text begin 216E.05, subdivision 5 new text end
	new text begin 216F.084 new text end	new text begin 216E.125 new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 216E.08, subdivisions 1 and 4; 216F.01, subdivision
1; 216F.012; 216F.015; and 216F.03, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 216F.04, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Rules, parts 7850.2400; and 7850.3600, new text end new text begin are repealed.
new text end

new text begin This section is effective September 1, 2024, and applies to site
and route applications filed with the commission on or after that date.
new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1.
new text end

new text begin (c) "Permitting authority" means a unit of local government in Minnesota that has
authority to review and issue permits to install residential solar projects and solar plus energy
storage system projects within the unit of local government's jurisdiction.
new text end

new text begin (d) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
new text end

new text begin (e) "Residential solar project" means the installation of a photovoltaic device at a
residence located in Minnesota.
new text end

new text begin (f) "SolarAPP+" means the most recent version of the Solar Automated Permit Processing
Plus software, developed by the National Renewable Energy Laboratory and available free
to permitting authorities from the United States Department of Energy, that uses a web-based
portal to automate the solar project plan review and permit issuance processes for residential
solar projects that are compliant with applicable building and electrical codes.
new text end

new text begin (g) "Solar plus energy storage system project" means a residential solar project installed
in conjunction with an energy storage system at the same residence.
new text end

new text begin A program is established in the department to provide
technical assistance and financial incentives to local units of government that issue permits
for residential solar projects and solar plus energy storage system projects in order to
incentivize a permitting authority to adopt the SolarAPP+ software to standardize, automate,
and streamline the review and permitting process.
new text end

new text begin An incentive may be awarded under this section to a permitting
authority that has deployed SolarAPP+ and made SolarAPP+ available on the permitting
authority's website.
new text end

new text begin (a) A permitting authority must submit an application for a financial
incentive under this section to the commissioner on a form developed by the commissioner.
new text end

new text begin (b) An application may be submitted for a financial incentive under this section after
SolarAPP+ has become operational in the permitting authority's jurisdiction.
new text end

new text begin The commissioner must develop
administrative procedures to govern the application review and incentive award process
under this section.
new text end

new text begin Beginning no later than January 1, 2025, the commissioner
may award a financial incentive to a permitting authority under this section only if the
commissioner has determined that the permitting authority meets verification requirements
established by the commissioner that ensure a permitting authority has made SolarAPP+
operational within the permitting authority's jurisdiction and that SolarAPP+ is available
on the permitting authority's website.
new text end

new text begin (a) An incentive awarded under this section must be no less
than $5,000 and no greater than $20,000.
new text end

new text begin (b) The commissioner may vary the amount of an incentive awarded under this section
by considering the following factors:
new text end

new text begin (1) the population of the permitting authority;
new text end

new text begin (2) the number of permits for solar projects issued by the permitting authority using
conventional review processes;
new text end

new text begin (3) whether the SolarAPP+ software has been adopted on a stand-alone basis or has been
integrated with other permit management software utilized by the permitting authority; and
new text end

new text begin (4) whether the permitting jurisdiction has participated in other sustainability programs,
including but not limited to GreenStep Cities and the United States Department of Energy's
SolSmart and Charging Smart programs.
new text end

new text begin The department must provide technical assistance to
eligible permitting authorities seeking to apply for an incentive under this section.
new text end

new text begin The department must develop an education and outreach
program to make permitting authorities aware of the incentive offered under this section,
including by convening workshops, producing educational materials, and using other
mechanisms to promote the program, including but not limited to utilizing the efforts of the
League of Minnesota Cities, the Association of Minnesota Counties, the Community Energy
Resource Teams established under section 216C.385, and similar organizations to reach
permitting authorities.
new text end

new text begin (a) The SolarAPP+ program account is established in
the special revenue account in the state treasury. The commissioner must credit to the account
appropriations and transfers to the account. Earnings, including interest, dividends, and any
other earnings arising from assets of the account, must be credited to the account. Money
remaining in the account at the end of a fiscal year does not cancel to the general fund but
remains in the account until July 1, 2027. The commissioner must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the purposes of this
section and to reimburse the reasonable costs incurred by the department to administer this
section.
new text end

new text begin (a) No later than September 1, 2024, the commission must initiate a proceeding to
establish by order generic standards for the sharing of utility costs necessary to upgrade a
utility's distribution system by increasing hosting capacity or applying other necessary
distribution system upgrades at a congested or constrained location in order to allow for the
interconnection of distributed generation facilities at the congested or constrained location
and to advance the achievement of the state's renewable and carbon-free energy goals in
Minnesota Statutes, section 216B.1691 and greenhouse gas emissions reduction goals in
Minnesota Statutes, section 216H.02. The tariff standards must reflect an interconnection
process designed to, at a minimum:
new text end

new text begin (1) accelerate the expansion of hosting capacity at multiple points on a utility's distribution
system by ensuring that the cost of upgrades is shared fairly among owners of distributed
generation projects seeking interconnection on a pro rata basis according to the amount of
the expanded capacity utilized by each interconnected distributed generation facility;
new text end

new text begin (2) reduce the capital burden on owners of distributed generation facilities seeking
interconnection;
new text end

new text begin (3) establish a minimum level of upgrade costs an expansion of hosting capacity must
reach in order to be eligible to participate in the cost-share process and below which a trigger
project must bear the full cost of the upgrade;
new text end

new text begin (4) establish a distributed generation facility's pro rata cost-share amount as the utility's
total cost of the upgrade divided by the incremental capacity resulting from the upgrade,
and multiplying the result by the nameplate capacity of the distributed generation facility
seeking interconnection;
new text end

new text begin (5) allow, upon the commission's approval, other utility cost-sharing programs to
contribute toward a distributed generation facility's pro rata cost-share amount under clause
(4);
new text end

new text begin (6) establish a minimum proportion of the total upgrade cost that a utility must receive
from one or more distributed generation facilities before initiating constructing an upgrade;
new text end

new text begin (7) allow trigger projects and any other distributed generation facilities to pay a utility
more than the trigger project's or distributed generation facility's pro rata cost-share amount
only if needed to meet the minimum threshold established in clause (6) and to receive refunds
for amounts paid beyond the trigger project's or distributed generation facility's pro rata
share of expansion costs from distributed generation projects that subsequently interconnect
at the applicable location;
new text end

new text begin (8) prohibit owners of distributed generation facilities from using any unsubscribed
capacity at an interconnection that has undergone an upgrade without the distributed
generation owners paying the distributed generation owner's pro rata cost of the upgrade;
and
new text end

new text begin (9) limit the amount of unrecovered cost associated with upgraded capacity that is not
used by a participating distributed generation facility that may be allocated to ratepayers.
new text end

new text begin (b) For the purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "distributed generation project" means an energy generating system with a capacity
no greater than ten megawatts;
new text end

new text begin (2) "hosting capacity" means the maximum capacity of a utility distribution system to
transport electricity at a specific location without compromising the safety or reliability of
the distribution system;
new text end

new text begin (3) "trigger project" means the initial distributed generation project whose application
for interconnection of a distributed generation project alerts a utility that an upgrade is
needed in order to accommodate the trigger project and any future interconnections at the
applicable location;
new text end

new text begin (4) "upgrade" means a modification of a utility's distribution system at a specific location
that is necessary to allow the interconnection of distributed generation projects by increasing
hosting capacity at the applicable location, including but not limited to installing or modifying
equipment at a substation or along a distribution line. Upgrade does not mean an expansion
of hosting capacity dedicated solely to the interconnection of a single distributed generation
project; and
new text end

new text begin (5) "utility" means a public utility, as defined in Minnesota Statutes, section 216B.02,
subdivision 4, that provides electric service.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin (a) The Public Utilities Commission's Consumer Affairs
Office must establish a new full-time equivalent interconnection ombudsperson position to
assist applicants seeking to interconnect distributed generation projects to utility distribution
systems under the generic statewide standards developed by the commission under section
2. The Public Utilities Commission must (1) appoint a person to the position who possesses
mediation skills and technical expertise related to interconnection and interconnection
procedures, and (2) authorize the person to request and review all interconnection data from
utilities and applicants that are necessary to fulfill the duties of the position described in
this subdivision.
new text end

new text begin (b) The duties of the interconnection ombudsperson include but are not limited to:
new text end

new text begin (1) tracking interconnection disputes between applicants and utilities;
new text end

new text begin (2) facilitating the efficient and fair resolution of disputes between customers seeking
to interconnect and utilities;
new text end

new text begin (3) reviewing utility interconnection policies to assess opportunities to reduce
interconnection disputes, while considering the equitable distribution of distributed generation
facilities;
new text end

new text begin (4) convening stakeholder groups as necessary to facilitate effective communication
among interconnection stakeholders; and
new text end

new text begin (5) preparing reports that detail the number, type, resolution timelines, and outcome of
interconnection disputes.
new text end

new text begin (c) A utility must provide information requested under this section that the interconnection
ombudsperson determines is necessary to effectively carry out the duties of the position.
new text end

new text begin For the purposes of this section, "utility" means a public utility, as
defined in Minnesota Statutes, section 216B.02, subdivision 4, that provides electric service.
new text end

new text begin (a) A utility must assess and collect a surcharge of $50 on
each application interconnection filed by an owner of a distributed generation facility located
in Minnesota. A utility must remit the full surcharge to the Public Utilities Commission
monthly, in a manner determined by the Public Utilities Commission, for each interconnection
application filed with the utility during the previous month.
new text end

new text begin (b) The interconnection ombudsperson account is established in the special revenue
account in the state treasury. The Public Utilities Commission must manage the account.
The Public Utilities Commission must deposit in the account all revenues received from
utilities from the surcharge on interconnection applications established under this section.
Money is appropriated from the account to the Public Utilities Commission for the sole
purpose of funding the ombudsperson position established in subdivision 1.
new text end

new text begin (c) The Public Utilities Commission must review the amount of revenues collected from
the surcharge each year and may adjust the level of the surcharge as necessary to ensure (1)
sufficient money is available to support the position, and (2) the reserve in the account does
not reach more than ten percent of the amount necessary to fully fund the position.
new text end

new text begin This section is effective the day following final enactment and
applies to applications for interconnections filed with a utility on or after that date.
new text end

Minnesota Statutes 2023 Supplement, section 116C.779, subdivision 1, is
amended to read:

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
to transfer under this paragraph.

(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
plant must transfer to the renewable development account $500,000 each year for each dry
cask containing spent fuel that is located at the Prairie Island power plant for each year the
plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
part of a year. The total amount transferred annually under this paragraph must be reduced
by $3,750,000.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(e) Each year, the public utility shall withhold from the funds transferred to the renewable
development account under paragraphs (c) and (d) the amount necessary to pay its obligations
under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.

(f) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e).

(g) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e).

(h) The collective amount paid under the grant contracts awarded under paragraphs (f)
and (g) is limited to the amount deposited into the renewable development account, and its
predecessor, the renewable development account, established under this section, that was
not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
10.

(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
in which the commission finds, by the preponderance of the evidence, that the public utility
did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
permanent or interim storage site out of the state. This determination shall be made at least
every two years.

(j) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

(k) For the purposes of paragraph (j), the following terms have the meanings given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

(l) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. The advisory group must design a
request for proposal and evaluate projects submitted in response to a request for proposals.
The advisory group must utilize an independent third-party expert to evaluate proposals
submitted in response to a request for proposal, including all proposals made by the public
utility. A request for proposal for research and development under paragraph (j), clause (1),
may be limited to or include a request to higher education institutions located in Minnesota
for multiple projects authorized under paragraph (j), clause (1). The request for multiple
projects may include a provision that exempts the projects from the third-party expert review
and instead provides for project evaluation and selection by a merit peer review grant system.
In the process of determining request for proposal scope and subject and in evaluating
responses to request for proposals, the advisory group must strongly consider, where
reasonable:

(1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers;
and

(2) the proposer's commitment to increasing the diversity of the proposer's workforce
and vendors.

(m) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature. The commission may approve proposed expenditures,
may disapprove proposed expenditures that it finds not to be in compliance with this
subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
modify proposed expenditures. The commission shall, by order, submit its funding
recommendations to the legislature as provided under paragraph (n).

(n) The commission shall present its recommended appropriations from the account to
the senate and house of representatives committees with jurisdiction over energy policy and
finance annually by February 15. Expenditures from the account must be appropriated by
law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

(o) A request for proposal for renewable energy generation projects must, when feasible
and reasonable, give preference to projects that are most cost-effective for a particular energy
source.

(p) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.

deleted text begin (q) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.
deleted text end

deleted text begin (r)deleted text end new text begin (q)new text end A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary for
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers. A project
receiving funds from the account must submit a report that meets the requirements of section
216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.

deleted text begin (s)deleted text end new text begin (r)new text end Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.

deleted text begin (t)deleted text end new text begin (s)new text end All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

deleted text begin (u)deleted text end new text begin (t)new text end Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

deleted text begin (v)deleted text end new text begin (u)new text end Construction projects receiving funds from this account are subject to the
requirement to pay the prevailing wage rate, as defined in section 177.42 and the requirements
and enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and
177.45.

Minnesota Statutes 2022, section 216B.16, subdivision 6c, is amended to read:

(a) The commission may order public utilities to develop and submit for
commission approval incentive plans that describe the method of recovery and accounting
for utility conservation new text begin and efficient fuel-switching new text end expenditures and savings. new text begin The
commission must develop and implement incentive plans designed to promote energy
conservation separately from plans designed to promote efficient fuel-switching.new text end In
developing the incentive plans the commission shall ensure the effective involvement of
interested parties.

(b) In approving incentive plans, the commission shall consider:

(1) whether the plan is likely to increase utility investment in cost-effective energy
conservationnew text begin or efficient fuel switchingnew text end ;

(2) whether the plan is compatible with the interest of utility ratepayers and other
interested parties;

(3) whether the plan links the incentive to the utility's performance in achieving
cost-effective conservationnew text begin or efficient fuel switchingnew text end ; deleted text begin and
deleted text end

(4) whether the plan is in conflict with other provisions of this chapterdeleted text begin .deleted text end new text begin ;
new text end

new text begin (5) whether the plan conflicts with other provisions of this chapter; and
new text end

new text begin (6) the likely financial impacts of the incentive plans on the utility.
new text end

(c) The commission may set rates to encourage the vigorous and effective implementation
of utility conservation new text begin and efficient fuel-switching new text end programs. The commission may:

(1) increase or decrease any otherwise allowed rate of return on net investment based
upon the utility's skill, efforts, and success in deleted text begin conservingdeleted text end new text begin improving the efficient use ofnew text end
energynew text begin through energy conservation or efficient fuel switchingnew text end ;

(2) share between ratepayers and utilities the net savings resulting from energy
conservation new text begin and efficient fuel-switching new text end programs to the extent justified by the utility's
skill, efforts, and success in deleted text begin conservingdeleted text end new text begin improving the efficient use ofnew text end energy; and

(3) adopt any mechanism that satisfies the criteria of this subdivision, such that
implementation of cost-effective conservation new text begin or efficient fuel switching new text end is a preferred
resource choice for the public utility considering the impact of conservation new text begin or efficient fuel
switching new text end on earnings of the public utility.

new text begin (d) Any incentives offered to electric utilities under this subdivision for efficient-fuel
switching projects expire December 31, 2032.
new text end

Minnesota Statutes 2022, section 216B.2402, is amended by adding a subdivision
to read:

new text begin "Data mining facility" means all buildings, structures,
equipment, and installations at a single site where electricity is used primarily by computers
to process transactions involving digital currency that is not issued by a central authority.
new text end

Minnesota Statutes 2022, section 216B.2402, subdivision 4, is amended to read:

"Efficient fuel-switching improvement"
means a project that:

(1) replaces a fuel used by a customer with electricity or natural gas delivered at retail
by a utility subject to section 216B.2403 or 216B.241;

(2) results in a net increase in the use of electricity or natural gas and a net decrease in
source energy consumption on a fuel-neutral basis;

(3) otherwise meets the criteria established for consumer-owned utilities in section
216B.2403, subdivision 8, and for public utilities under section 216B.241, subdivisions 11
and 12; and

(4) requires the installation of equipment that utilizes electricity or natural gas, resulting
in a reduction or elimination of the previous fuel used.

An efficient fuel-switching improvement is not an energy conservation improvement or
energy efficiency even if the efficient fuel-switching improvement results in a net reduction
in electricity or natural gas use. deleted text begin An efficient fuel-switching improvement does not include,
and must not count toward any energy savings goal from, energy conservation improvements
when fuel switching would result in an increase of greenhouse gas emissions into the
atmosphere on an annual basis.
deleted text end

Minnesota Statutes 2022, section 216B.2402, subdivision 10, is amended to read:

"Gross annual retail energy sales" means
a utility's annual electric sales to all Minnesota retail customers, or natural gas throughput
to all retail customers, including natural gas transportation customers, on a utility's
distribution system in Minnesota. Gross annual retail energy sales does not include:

(1) gas sales to:

(i) a large energy facility;

(ii) a large customer facility whose natural gas utility has been exempted by the
commissioner under section 216B.241, subdivision 1a, paragraph (a), with respect to natural
gas sales made to the large customer facility; and

(iii) a commercial gas customer facility whose natural gas utility has been exempted by
the commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to
natural gas sales made to the commercial gas customer facility;

(2) electric sales tonew text begin :
new text end

new text begin (i)new text end a large customer facility whose electric utility has been exempted by the commissioner
under section 216B.241, subdivision 1a, paragraph (a), with respect to electric sales made
to the large customer facility; deleted text begin ordeleted text end new text begin and
new text end

new text begin (ii) a data mining facility, if the facility:
new text end

new text begin (A) has provided a signed letter to the utility verifying the facility meets the definition
of a data mining facility; and
new text end

new text begin (B) imposes a peak electrical demand on a consumer-owned utility's system equal to or
greater than 40 percent of the peak electrical demand of the system, measured in the same
manner as the utility that serves the customer facility measures electric demand for billing
purposes; or
new text end

(3) the amount of electric sales prior to December 31, 2032, that are associated with a
utility's program, rate, or tariff for electric vehicle charging based on a methodology and
assumptions developed by the department in consultation with interested stakeholders no
later than December 31, 2021. After December 31, 2032, incremental sales to electric
vehicles must be included in calculating a new text begin public new text end utility's gross annual retail sales.

Minnesota Statutes 2022, section 216B.2403, subdivision 2, is amended to read:

(a) Each individual
consumer-owned new text begin electric new text end utility subject to this section has an annual energy-savings goal
equivalent to 1.5 percent of gross annual retail energy salesnew text begin and each individual
consumer-owned natural gas utility subject to this section has an annual energy-savings
goal equivalent to one percent of gross annual retail energy salesnew text end , to be met with a minimum
of energy savings from energy conservation improvements equivalent to at least deleted text begin 0.95deleted text end new text begin 0.90new text end
percent of the consumer-owned utility's gross annual retail energy sales. The balance of
energy savings toward the annual energy-savings goal may be achieved only by the following
consumer-owned utility activities:

(1) energy savings from additional energy conservation improvements;

(2) electric utility infrastructure projects, as defined in section 216B.1636, subdivision
1, that result in increased efficiency greater than would have occurred through normal
maintenance activity;

(3) net energy savings from efficient fuel-switching improvements that meet the criteria
under subdivision 8, which may contribute up to deleted text begin 0.55deleted text end new text begin 0.60new text end percent of the goal; or

(4) subject to department approval, demand-side natural gas or electric energy displaced
by use of waste heat recovered and used as thermal energy, including the recovered thermal
energy from a cogeneration or combined heat and power facility.

(b) The energy-savings goals specified in this section must be calculated based on
weather-normalized sales averaged over the most recent three years. A consumer-owned
utility may elect to carry forward energy savings in excess of 1.5 percent for a year to the
next three years, except that energy savings from electric utility infrastructure projects may
be carried forward for five years. A particular energy savings can only be used to meet one
year's goal.

(c) A consumer-owned utility subject to this section is not required to make energy
conservation improvements that are not cost-effective, even if the improvement is necessary
to attain the energy-savings goal. A consumer-owned utility subject to this section must
make reasonable efforts to implement energy conservation improvements that exceed the
minimum level established under this subdivision if cost-effective opportunities and funding
are available, considering other potential investments the consumer-owned utility intends
to make to benefit customers during the term of the plan filed under subdivision 3.

deleted text begin (d) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a
consumer-owned utility subject to this section on efficient fuel-switching improvements
implemented to meet the annual energy savings goal under this section must not exceed
0.55 percent per year, averaged over a three-year period, of the consumer-owned utility's
gross annual retail energy sales.
deleted text end

Minnesota Statutes 2022, section 216B.2403, subdivision 3, is amended to read:

(a)
By June 1, 2022, and at least every three years thereafter, each consumer-owned utility must
file with the commissioner an energy conservation and optimization plan that describes the
programs for energy conservation, efficient fuel-switching, load management, and other
measures the consumer-owned utility intends to offer to achieve the utility's energy savings
goal.

(b) A plan's term may extend up to three years. A multiyear plan must identify the total
energy savings and energy savings resulting from energy conservation improvements that
are projected to be achieved in each year of the plan. A multiyear plan that does not, in each
year of the plan, meet both the minimum energy savings goal from energy conservation
improvements and the total energy savings goal of 1.5 percent, or lower goals adjusted by
the commissioner under paragraph (k), must:

(1) state why each goal is projected to be unmet; and

(2) demonstrate how the consumer-owned utility proposes to meet both goals on an
average basis over the duration of the plan.

(1) for existing programs, an analysis of the cost-effectiveness of the consumer-owned
utility's programs offered under the plan, using a list of baseline energy- and capacity-savings
assumptions developed in consultation with the department; and

(2) for new programs, a preliminary analysis upon which the program will proceed, in
parallel with further development of assumptions and standards.

(d) The commissioner must evaluate a plan filed under this subdivision based on the
plan's likelihood to achieve the energy-savings goals established in subdivision 2. The
commissioner may make recommendations to a consumer-owned utility regarding ways to
increase the effectiveness of the consumer-owned utility's energy conservation activities
and programs under this subdivision. The commissioner may recommend that a
consumer-owned utility implement a cost-effective energy conservationnew text begin or efficient
fuel-switchingnew text end programdeleted text begin , including an energy conservation programdeleted text end suggested by an outside
source such as a political subdivision, nonprofit corporation, or community organization.

(e) Beginning June 1, 2023, and every June 1 thereafter, each consumer-owned utility
must file: (1) an annual update identifying the status of the plan filed under this subdivision,
including: (i) total expenditures and investments made to date under the plan; and (ii) any
intended changes to the plan; and (2) a summary of the annual energy-savings achievements
under a plan. An annual filing made in the last year of a plan must contain a new plan that
complies with this section.

(f) When evaluating the cost-effectiveness of a consumer-owned utility's energy
conservation programs, the consumer-owned utility and the commissioner must consider
the costs and benefits to ratepayers, the utility, participants, and society. The commissioner
must also consider the rate at which the consumer-owned utility is increasing energy savings
and expenditures on energy conservation, and lifetime energy savings and cumulative energy
savings.

(g) A consumer-owned utility may annually spend and invest up to ten percent of the
total amount spent and invested on energy conservationnew text begin , efficient fuel-switching, or load
managementnew text end improvements on research and development projects that meet the new text begin applicable
new text end definition of energy conservationnew text begin , efficient fuel-switching, or load managementnew text end improvement.

(h) A generation and transmission cooperative electric association or municipal power
agency that provides energy services to consumer-owned utilities may file a plan under this
subdivision on behalf of the consumer-owned utilities to which the association or agency
provides energy services and may make investments, offer conservation programs, and
otherwise fulfill the energy-savings goals and reporting requirements of this subdivision
for those consumer-owned utilities on an aggregate basis.

(i) A consumer-owned utility is prohibited from spending for or investing in energy
conservation improvements that directly benefit a large energy facility or a large electric
customer facility the commissioner has exempted under section 216B.241, subdivision 1a.

(j) The energy conservation and optimization plan of a consumer-owned utility may
include activities to improve energy efficiency in the public schools served by the utility.
These activities may include programs to:

(1) increase the efficiency of the school's lighting and heating and cooling systems;

(2) recommission buildings;

(3) train building operators; and

(4) provide opportunities to educate students, teachers, and staff regarding energy
efficiency measures implemented at the school.

(k) A consumer-owned utility may request that the commissioner adjust the
consumer-owned utility's minimum goal for energy savings from energy conservation
improvements under subdivision 2, paragraph (a), for the duration of the plan filed under
this subdivision. The request must be made by January 1 of the year when the
consumer-owned utility must file a plan under this subdivision. The request must be based
on:

(1) historical energy conservation improvement program achievements;

(2) customer class makeup;

(3) projected load growth;

(4) an energy conservation potential study that estimates the amount of cost-effective
energy conservation potential that exists in the consumer-owned utility's service territory;

(5) the cost-effectiveness and quality of the energy conservation programs offered by
the consumer-owned utility; and

(6) other factors the commissioner and consumer-owned utility determine warrant an
adjustment.

The commissioner must adjust the energy savings goal to a level the commissioner determines
is supported by the record, but must not approve a minimum energy savings goal from
energy conservation improvements that is less than an average of 0.95 percent per year over
the consecutive years of the plan's duration, including the year the minimum energy savings
goal is adjusted.

(l) A consumer-owned utility filing a conservation and optimization plan that includes
an efficient fuel-switching program deleted text begin to achieve the utility's energy savings goaldeleted text end must, as part
of the filing, demonstrate deleted text begin by a comparison of greenhouse gas emissions between the fuelsdeleted text end
that the requirements of subdivision 8 are metdeleted text begin , using a full fuel-cycle energy analysisdeleted text end .

Minnesota Statutes 2022, section 216B.2403, subdivision 5, is amended to read:

(a) A
consumer-owned utility subject to this section must provide energy conservation programs
to low-income households. The commissioner must evaluate a consumer-owned utility's
plans under this section by considering the consumer-owned utility's historic spending on
energy conservation programs directed to low-income households, the rate of customer
participation in and the energy savings resulting from those programs, and the number of
low-income persons residing in the consumer-owned utility's service territory. A municipal
utility that furnishes natural gas service must spend at least 0.2 percent of the municipal
utility's most recent three-year average gross operating revenue from residential customers
in Minnesota on energy conservation programs for low-income households. A
consumer-owned utility that furnishes electric service must spend at least 0.2 percent of the
consumer-owned utility's gross operating revenue from residential customers in Minnesota
on energy conservation programs for low-income households. The requirement under this
paragraph applies to each generation and transmission cooperative association's aggregate
gross operating revenue from the sale of electricity to residential customers in Minnesota
by all of the association's member distribution cooperatives.

(b) To meet all or part of the spending requirements of paragraph (a), a consumer-owned
utility may contribute money to the energy and conservation account established in section
216B.241, subdivision 2a. An energy conservation optimization plan must state the amount
of contributions the consumer-owned utility plans to make to the energy and conservation
account. Contributions to the account must be used for energy conservation programs serving
low-income households, including renters, located in the service area of the consumer-owned
utility making the contribution. Contributions must be remitted to the commissioner by
February 1 each year.

(c) The commissioner must establish energy conservation programs for low-income
households funded through contributions to the energy and conservation account under
paragraph (b). When establishing energy conservation programs for low-income households,
the commissioner must consult political subdivisions, utilities, and nonprofit and community
organizations, including organizations providing energy and weatherization assistance to
low-income households. The commissioner must record and report expenditures and energy
savings achieved as a result of energy conservation programs for low-income households
funded through the energy and conservation account in the report required under section
216B.241, subdivision 1c, paragraph (f). The commissioner may contract with a political
subdivision, nonprofit or community organization, public utility, municipality, or
consumer-owned utility to implement low-income programs funded through the energy and
conservation account.

(d) A consumer-owned utility may petition the commissioner to modify the required
spending under this subdivision if the consumer-owned utility and the commissioner were
unable to expend the amount required for three consecutive years.

(e) The commissioner must develop and establish guidelines for determining the eligibility
of multifamily buildings to participate in energy conservation programs provided to
low-income households. Notwithstanding the definition of low-income household in section
216B.2402, a consumer-owned utility or association may apply the most recent guidelines
published by the department for purposes of determining the eligibility of multifamily
buildings to participate in low-income programs. The commissioner must convene a
stakeholder group to review and update these guidelines by August 1, 2021, and at least
once every five years thereafter. The stakeholder group must include but is not limited to
representatives of public utilities; municipal electric or gas utilities; electric cooperative
associations; multifamily housing owners and developers; and low-income advocates.

(f) Up to 15 percent of a consumer-owned utility's spending on low-income energy
conservation programs may be spent on preweatherization measures. A consumer-owned
utility is prohibited from claiming energy savings from preweatherization measures toward
the consumer-owned utility's energy savings goal.

(g) The commissioner must, by order, establish a list of preweatherization measures
eligible for inclusion in low-income energy conservation programs no later than March 15,
2022.

(h) A Healthy AIR (Asbestos Insulation Removal) account is established as a separate
account in the special revenue fund in the state treasury. A consumer-owned utility may
elect to contribute money to the Healthy AIR account to provide preweatherization measures
for households eligible for weatherization assistance from the state weatherization assistance
program in section 216C.264. Remediation activities must be executed in conjunction with
federal weatherization assistance program services. Money contributed to the account by a
consumer-owned utility counts toward: (1) the minimum low-income spending requirement
under paragraph (a); and (2) the cap on preweatherization measures under paragraph (f).
Money in the account is annually appropriated to the commissioner of commerce to pay for
Healthy AIR-related activities.

new text begin (i) This paragraph applies to a consumer-owned utility that supplies electricity to a
low-income household whose primary heating fuel is supplied by an entity other than a
public utility. Any spending on space and water heating energy conservation improvements
and efficient fuel-switching by the consumer-owned utility on behalf of the low-income
household may be applied to the consumer owned utility's spending requirement in paragraph
(a). To the maximum extent possible, a consumer-owned utility providing services under
this paragraph must offer the services in conjunction with weatherization services provided
under section 216C.264.
new text end

Minnesota Statutes 2022, section 216B.2403, subdivision 8, is amended to read:

(a) A fuel-switching
improvement is deemed efficient if, applying the technical criteria established under section
216B.241, subdivision 1d, paragraph (e), the improvement, relative to the fuel being
displaced:

(1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basisnew text begin , using (i) the consumer-owned utility's or the utility's
electricity supplier's annual system average efficiency, or (ii) if the utility elects, a seasonal,
monthly, or more granular level of analysis for the electric utility system over the measure's
lifenew text end ;

(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric consumer-owned utility, the reduction in emissions
must be measured deleted text begin based on the hourly emissions profile of the consumer-owned utility or
the utility's electricity supplier, as reported in the most recent resource plan approved by
the commission under section 216B.2422. If the hourly emissions profile is not available,
the commissioner must develop a method consumer-owned utilities must use to estimate
that valuedeleted text end new text begin using (i) the consumer-owned utility's or the utility's electricity supplier's annual
average emissions factor, or (ii) if the utility elects, a seasonal, monthly, or more granular
level of analysis for the electric utility system over the measure's lifenew text end ;new text begin and
new text end

(3) is cost-effective, considering the costs and benefits from the perspective of the
consumer-owned utility, participants, and societydeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (4) is installed and operated in a manner that improves the consumer-owned utility's
system load factor.
deleted text end

(b) For purposes of this subdivision, "source energy" means the total amount of primary
energy required to deliver energy services, adjusted for losses in generation, transmission,
and distribution, and expressed on a fuel-neutral basis.

Minnesota Statutes 2022, section 216B.241, subdivision 1c, is amended to read:

(a) The commissioner shall establish
energy-saving goals for energy conservation improvements and shall evaluate an energy
conservation improvement program on how well it meets the goals set.

(b) A public utility providing electric service has an annual energy-savings goal equivalent
to 1.75 percent of gross annual retail energy sales unless modified by the commissioner
under paragraph (c). A public utility providing natural gas service has an annual
energy-savings goal equivalent to one percent of gross annual retail energy sales, which
cannot be lowered by the commissioner. The savings goals must be calculated based on the
most recent three-year weather-normalized average. A public utility providing electric
service may elect to carry forward energy savings in excess of 1.75 percent for a year to
the succeeding three calendar years, except that savings from electric utility infrastructure
projects allowed under paragraph (d) may be carried forward for five years. A public utility
providing natural gas service may elect to carry forward energy savings in excess of one
percent for a year to the succeeding three calendar years. A particular energy savings can
only be used to meet one year's goal.

(c) In its energy conservation and optimization plan filing, a public utility may request
the commissioner to adjust its annual energy-savings percentage goal based on its historical
conservation investment experience, customer class makeup, load growth, a conservation
potential study, or other factors the commissioner determines warrants an adjustment.

(d) The commissioner may not approve a plan of a public utility that provides for an
annual energy-savings goal of less than one percent of gross annual retail energy sales from
energy conservation improvements.

The balance of the 1.75 percent annual energy savings goal may be achieved through
energy savings from:

(1) additional energy conservation improvements;

(2) electric utility infrastructure projects approved by the commission under section
216B.1636 that result in increased efficiency greater than would have occurred through
normal maintenance activity; or

(3) subject to department approval, demand-side natural gas or electric energy displaced
by use of waste heat recovered and used as thermal energy, including the recovered thermal
energy from a cogeneration or combined heat and power facility.

(e) A public utility is not required to make energy conservation investments to attain
the energy-savings goals of this subdivision that are not cost-effective even if the investment
is necessary to attain the energy-savings goals. For the purpose of this paragraph, in
determining cost-effectiveness, the commissioner shall consider: (1) the costs and benefits
to ratepayers, the utility, participants, and society; (2) the rate at which a public utility is
increasing both its energy savings and its expenditures on energy conservation; and (3) the
public utility's lifetime energy savings and cumulative energy savings.

(f) On an annual basis, the commissioner shall produce and make publicly available a
report on the annual energy and capacity savings and estimated carbon dioxide reductions
achieved by the programs under this section and section 216B.2403 for the two most recent
years for which data is available. The report must also include information regarding any
annual energy sales or generation capacity increases resulting from efficient fuel-switching
improvements. The commissioner shall report on program performance both in the aggregate
and for each entity filing an energy conservation improvement plan for approval or review
by the commissioner, and must estimate progress made toward the statewide energy-savings
goal under section 216B.2401.

deleted text begin (g) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a
public utility subject to this section on efficient fuel-switching improvements to meet energy
savings goals under this section must not exceed 0.35 percent per year, averaged over three
years, of the public utility's gross annual retail energy sales.
deleted text end

Minnesota Statutes 2022, section 216B.241, subdivision 2, is amended to read:

(a) The
commissioner may require a public utility to make investments and expenditures in energy
conservation improvements, explicitly setting forth the interest rates, prices, and terms under
which the improvements must be offered to the customers.

(b) A public utility shall file an energy conservation and optimization plan by June 1,
on a schedule determined by order of the commissioner, but at least every three years. As
provided in subdivisions 11 to 13, plans may include programs for efficient fuel-switching
improvements and load management. An individual utility program may combine elements
of energy conservation, load management, or efficient fuel-switching. The plan must estimate
the lifetime energy savings and cumulative lifetime energy savings projected to be achieved
under the plan. A plan filed by a public utility by June 1 must be approved or approved as
modified by the commissioner by December 1 of that same year.

(c) The commissioner shall evaluate the plan on the basis of cost-effectiveness and the
reliability of technologies employed. The commissioner's order must provide to the extent
practicable for a free choice, by consumers participating in an energy conservation program,
of the device, method, material, or project constituting the energy conservation improvement
and for a free choice of the seller, installer, or contractor of the energy conservation
improvement, provided that the device, method, material, or project seller, installer, or
contractor is duly licensed, certified, approved, or qualified, including under the residential
conservation services program, where applicable.

(d) The commissioner may require a utility subject to subdivision 1c to make an energy
conservation improvement investment or expenditure whenever the commissioner finds
that the improvement will result in energy savings at a total cost to the utility less than the
cost to the utility to produce or purchase an equivalent amount of new supply of energy.

(e) Each public utility subject to this subdivision may spend and invest annually up to
ten percent of the total amount deleted text begin spent and investeddeleted text end new text begin that the public utility spends and investsnew text end
on energy conservationnew text begin , efficient fuel-switching, or load managementnew text end improvements under
this section deleted text begin by the public utilitydeleted text end on research and development projects that meet the new text begin applicable
new text end definition of energy conservationnew text begin , efficient fuel-switching, or load managementnew text end improvement.

(f) The commissioner shall consider and may require a public utility to undertake an
energy conservation deleted text begin programdeleted text end new text begin or efficient fuel-switching program, subject to the requirements
of subdivisions 11 and 12, that isnew text end suggested by an outside source, including a political
subdivision, a nonprofit corporation, or community organization.new text begin In approving a proposal
under this paragraph, the commissioner must consider the qualifications and experience of
the entity proposing the program and any other criteria the commissioner deems relevant.
new text end

(g) A public utility, a political subdivision, or a nonprofit or community organization
that has suggested an energy conservation program, the attorney general acting on behalf
of consumers and small business interests, or a public utility customer that has suggested
an energy conservation program and is not represented by the attorney general under section
8.33 may petition the commission to modify or revoke a department decision under this
section, and the commission may do so if it determines that the energy conservation program
is not cost-effective, does not adequately address the residential conservation improvement
needs of low-income persons, has a long-range negative effect on one or more classes of
customers, or is otherwise not in the public interest. The commission shall reject a petition
that, on its face, fails to make a reasonable argument that an energy conservation program
is not in the public interest.

(h) The commissioner may order a public utility to include, with the filing of the public
utility's annual status report, the results of an independent audit of the public utility's
conservation improvement programs and expenditures performed by the department or an
auditor with experience in the provision of energy conservation and energy efficiency
services approved by the commissioner and chosen by the public utility. The audit must
specify the energy savings or increased efficiency in the use of energy within the service
territory of the public utility that is the result of the public utility's spending and investments.
The audit must evaluate the cost-effectiveness of the public utility's conservation programs.

(i) The energy conservation and optimization plan of each public utility subject to this
section must include activities to improve energy efficiency in public schools served by the
utility. As applicable to each public utility, at a minimum the activities must include programs
to increase the efficiency of the school's lighting and heating and cooling systems, and to
provide for building recommissioning, building operator training, and opportunities to
educate students, teachers, and staff regarding energy efficiency measures implemented at
the school.

(j) The commissioner may require investments or spending greater than the amounts
proposed in a plan filed under this subdivision or section 216C.17 for a public utility whose
most recent advanced forecast required under section 216B.2422 projects a peak demand
deficit of 100 megawatts or more within five years under midrange forecast assumptions.

(k) A public utility filing a conservation and optimization plan that includes an efficient
fuel-switching program deleted text begin to achieve the utility's energy savings goaldeleted text end must, as part of the filing,
demonstrate deleted text begin by a comparison of greenhouse gas emissions between the fuelsdeleted text end that the
requirements of subdivisions 11 or 12 are met, as applicabledeleted text begin , using a full fuel-cycle energy
analysisdeleted text end .

Minnesota Statutes 2022, section 216B.241, subdivision 11, is amended to read:

(a)
A public utility providing electric service at retail may include in the plan required under
subdivision 2 new text begin a proposed goal for efficient fuel-switching improvements that the utility
expects to achieve under the plan and the new text end programs to implement efficient fuel-switching
improvements or combinations of energy conservation improvements, fuel-switching
improvements, and load management. For each program, the public utility must provide a
proposed budget, an analysis of the program's cost-effectiveness, and estimated net energy
and demand savings.

(b) The department may approve proposed programs for efficient fuel-switching
improvements if the department determines the improvements meet the requirements of
paragraph (d). deleted text begin For fuel-switching improvements that require the deployment of electric
technologies, the department must also consider whether the fuel-switching improvement
can be operated in a manner that facilitates the integration of variable renewable energy
into the electric system. The net benefits from an efficient fuel-switching improvement that
is integrated with an energy efficiency program approved under this section may be counted
toward the net benefits of the energy efficiency program, if the department determines the
primary purpose and effect of the program is energy efficiency.
deleted text end

(c) A public utility may file a rate schedule with the commission that provides for annual
cost recovery of reasonable and prudent costs to implement and promote efficient
fuel-switching programs. The new text begin utility, department, or other entity may propose, and the
new text end commission may deleted text begin notdeleted text end approvenew text begin , modify, or reject,new text end a new text begin proposal for a new text end financial incentive to
encourage efficient fuel-switching programs operated by a public utility providing electric
servicenew text begin approved under this subdivision. When making a decision on the financial incentive
proposal, the commission must apply the considerations established in section 216B.16,
subdivision 6c, paragraphs (b) and (c)new text end .

(d) A fuel-switching improvement is deemed efficient if, applying the technical criteria
established under section 216B.241, subdivision 1d, paragraph (e), the improvement meets
the following criteria, relative to the fuel that is being displaced:

(1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basisnew text begin , using (i) the utility's annual system average efficiency,
or (ii) if the utility elects, a seasonal, monthly, or more granular level of analysis for the
electric utility system over the measure's lifenew text end ;

(2) results in a net reduction of statewide greenhouse gas emissions as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric utility, the reduction in emissions must be measured
deleted text begin based on the hourly emission profile of the electric utility, using the hourly emissions profile
in the most recent resource plan approved by the commission under section 216B.2422deleted text end new text begin
using (i) the utility's annual average emissions factor, or (ii) if the utility elects, a seasonal,
monthly or more granular level of analysis, for the electric utility system over the measure's
lifenew text end ;new text begin and
new text end

(3) is cost-effective, considering the costs and benefits from the perspective of the utility,
participants, and societydeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (4) is installed and operated in a manner that improves the utility's system load factor.
deleted text end

(e) For purposes of this subdivision, "source energy" means the total amount of primary
energy required to deliver energy services, adjusted for losses in generation, transmission,
and distribution, and expressed on a fuel-neutral basis.

Minnesota Statutes 2022, section 216B.241, subdivision 12, is amended to read:

(a) As part of a public utility's plan filed under subdivision 2, a public utility that
provides natural gas service to Minnesota retail customers may propose one or more programs
to install electric technologies that reduce the consumption of natural gas by the utility's
retail customers as an energy conservation improvement. The commissioner may approve
a proposed program if the commissioner, applying the technical criteria developed under
section 216B.241, subdivision 1d, paragraph (e), determines that:

(1) the electric technology to be installed meets the criteria established under section
216B.241, subdivision 11, paragraph (d), clauses (1) and (2); and

(2) the program is cost-effective, considering the costs and benefits to ratepayers, the
utility, participants, and society.

(b) If a program is approved by the commission under this subdivision, the public utility
may count the program's energy savings toward its energy savings goal under section
216B.241, subdivision 1c. Notwithstanding section 216B.2402, subdivision 4, efficient
fuel-switching achieved through programs approved under this subdivision is energy
conservation.

(c) A public utility may file rate schedules with the commission that provide annual
cost-recovery for programs approved by the department under this subdivision, including
reasonable and prudent costs to implement and promote the programs.

(d) The commission may approve, modify, or reject a proposal made by the department
or a utility for an incentive plan to encourage efficient fuel-switching programs approved
under this subdivision, applying the considerations established under section 216B.16,
subdivision 6c, paragraphs (b) and (c). The commission may approve a financial incentive
mechanism that is calculated based on the combined energy savings and net benefits that
the commission has determined have been achieved by a program approved under this
subdivision, provided the commission determines that the financial incentive mechanism
is in the ratepayers' interest.

deleted text begin (e) A public utility is not eligible for a financial incentive for an efficient fuel-switching
program under this subdivision in any year in which the utility achieves energy savings
below one percent of gross annual retail energy sales, excluding savings achieved through
fuel-switching programs.
deleted text end

Minnesota Statutes 2023 Supplement, section 216C.08, is amended to read:

new text begin (a) new text end The commissioner has sole authority and responsibility deleted text begin for the administration of
sections 216C.05 to 216C.30 and 216C.375deleted text end new text begin to administer this chapternew text end . Other laws
notwithstanding, the authority grantednew text begin tonew text end the commissioner deleted text begin shall supersededeleted text end new text begin under this section
supersedesnew text end the authority given any other agency whenever overlapping, duplication, or
additional administrative or legal procedures might occur in deleted text begin the administration of sections
216C.05 to 216C.30 and 216C.375deleted text end new text begin administering this chapternew text end . The commissioner shall
consult with other state departments or agencies in matters related to energy and shall
contract with deleted text begin themdeleted text end new text begin the other state departments or agenciesnew text end to provide appropriate services
to effectuate the purposes of deleted text begin sections 216C.05 to 216C.30 and 216C.375deleted text end new text begin this chapternew text end . Any
other department, agency, or official of this state or political subdivision thereof which
would in any way affect the administration or enforcement of deleted text begin sections 216C.05 to 216C.30
and 216C.375deleted text end new text begin this chapternew text end shall cooperate and coordinate all activities with the commissioner
to assure orderly and efficient administration and enforcement of deleted text begin sections 216C.05 to
216C.30 and 216C.375deleted text end new text begin this chapternew text end .

new text begin (b) new text end The commissioner shall designate a liaison officer whose duty shall be to insure the
maximum possible consistency in procedures and to eliminate duplication between the
commissioner and the other agencies that may be involved in energy.

Minnesota Statutes 2023 Supplement, section 216C.09, is amended to read:

(a) The commissioner shall:

(1) manage the department as the central repository within the state government for the
collection of data on energy;

(2) prepare and adopt an emergency allocation plan specifying actions to be taken in the
event of an impending serious shortage of energy, or a threat to public health, safety, or
welfare;

(3) undertake a continuing assessment of trends in the consumption of all forms of energy
and analyze the social, economic, and environmental consequences of these trends;

(4) carry out energy deleted text begin conservationdeleted text end measures as specified by the legislature and recommend
to the governor and the legislature additional energy policies and conservation measures as
required to meet the objectives of deleted text begin sections 216C.05 to 216C.30 and 216C.375deleted text end new text begin this chapternew text end ;

(5) collect and analyze data relating to present and future demands and resources for all
sources of energy;

(6) evaluate policies governing the establishment of rates and prices for energy as related
to energy conservation, and other goals and policies of deleted text begin sections 216C.05 to 216C.30 and
216C.375deleted text end new text begin this chapternew text end , and make recommendations for changes in energy pricing policies
and rate schedules;

(7) study the impact and relationship of the state energy policies to international, national,
and regional energy policies;

(8) design and implement a state program for the conservation of energy; this program
shall include but not be limited to, general commercial, industrial, and residential, and
transportation areas; such program shall also provide for the evaluation of energy systems
as they relate to lighting, heating, refrigeration, air conditioning, building design and
operation, and appliance manufacturing and operation;

(9) inform and educate the public about the sources and uses of energy and the ways in
which persons can conserve energy;

(10) dispense funds made available for the purpose of research studies and projects of
professional and civic orientation, which are related to either energy conservation, resource
recovery, or the development of alternative energy technologies which conserve
nonrenewable energy resources while creating minimum environmental impact;

(11) charge other governmental departments and agencies involved in energy-related
activities with specific information gathering goals and require that those goals be met;

(12) design a comprehensive program for the development of indigenous energy
resources. The program shall include, but not be limited to, providing technical,
informational, educational, and financial services and materials to persons, businesses,
municipalities, and organizations involved in the development of solar, wind, hydropower,
peat, fiber fuels, biomass, and other alternative energy resources. The program shall be
evaluated by the alternative energy technical activity; and

(13) dispense loans, grants, or other financial aid from money received from litigation
or settlement of alleged violations of federal petroleum-pricing regulations made available
to the department for that purpose.

(b) Further, the commissioner may participate fully in hearings before the Public Utilities
Commission on matters pertaining to rate design, cost allocation, efficient resource utilization,
utility conservation investments, small power production, cogeneration, and other rate issues.
The commissioner shall support the policies stated in section 216C.05 and shall prepare
and defend testimony proposed to encourage energy conservation improvements as defined
in section 216B.241.

Minnesota Statutes 2022, section 216C.10, is amended to read:

(a) The commissioner may:

(1) adopt rules under chapter 14 as necessary to carry out the purposes of deleted text begin sections
216C.05 to 216C.30deleted text end new text begin this chapternew text end ;

(2) make all contracts under deleted text begin sections 216C.05 to 216C.30deleted text end new text begin this chapternew text end and do all things
necessary to cooperate with the United States government, and to qualify for, accept, and
disburse any grant intended deleted text begin for the administration of sections 216C.05 to 216C.30deleted text end new text begin to
administer this chapternew text end ;

(3) provide on-site technical assistance to units of local government in order to enhance
local capabilities for dealing with energy problems;

(4) administer for the state, energy programs under federal law, regulations, or guidelines,
and coordinate the programs and activities with other state agencies, units of local
government, and educational institutions;

(5) develop a state energy investment plan with yearly energy conservation and alternative
energy development goals, investment targets, and marketing strategies;

(6) perform market analysis studies relating to conservation, alternative and renewable
energy resources, and energy recovery;

(7) assist with the preparation of proposals for innovative conservation, renewable,
alternative, or energy recovery projects;

(8) manage and disburse funds made available for the purpose of research studies or
demonstration projects related to energy conservation or other activities deemed appropriate
by the commissioner;

(9) intervene in certificate of need proceedings before the Public Utilities Commission;

(10) collect fees from recipients of loans, grants, or other financial aid from money
received from litigation or settlement of alleged violations of federal petroleum-pricing
regulations, which fees must be used to pay the department's costs in administering those
financial aids; and

(11) collect fees from proposers and operators of conservation and other energy-related
programs that are reviewed, evaluated, or approved by the department, other than proposers
that are political subdivisions or community or nonprofit organizations, to cover the
department's cost in making the reviewal, evaluation, or approval and in developing additional
programs for others to operate.

(b) Notwithstanding any other law, the commissioner is designated the state agent to
apply for, receive, and accept federal or other funds made available to the state for the
purposes of deleted text begin sections 216C.05 to 216C.30deleted text end new text begin this chapternew text end .

Minnesota Statutes 2023 Supplement, section 216C.331, subdivision 1, is amended
to read:

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Aggregated customer energy use data" means customer energy use data that is
combined into one collective data point per time interval. Aggregated customer energy use
data is data with any unique identifiers or other personal information removed that a
qualifying utility collects and aggregates in at least monthly intervals for an entire building
on a covered property.

(c) "Benchmark" means to electronically input into a benchmarking tool deleted text begin the totaldeleted text end new text begin whole
buildingnew text end energy use data and other descriptive information about a building that is required
by a benchmarking tool.

(d) "Benchmarking information" means data related to a building's energy use generated
by a benchmarking tool, and other information about the building's physical and operational
characteristics. Benchmarking information includes but is not limited to the building's:

(1) address;

(2) owner and, if applicable, the building manager responsible for operating the building's
physical systems;

(3) total floor area, expressed in square feet;

(4) energy use intensity;

(5) greenhouse gas emissions; and

(6) energy performance score comparing the building's energy use with that of similar
buildings.

(e) "Benchmarking tool" means the United States Environmental Protection Agency's
Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.

(f) "Covered property" means any property that is served by an investor-owned utility
in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city
outside the metropolitan area with a population of over 50,000 residentsnew text begin , as determined by
the Minnesota State Demographic Center,new text end served by a municipal energy utility or
investor-owned utility, and that has one or more buildings containing in sum 50,000 gross
square feet or greater. Covered property does not include:

(1) a residential property containing fewer than five dwelling units;

(2) a property that is: (i) classified as manufacturing under the North American Industrial
Classification System; (ii) an energy-intensive trade-exposed customer, as defined in section
216B.1696; (iii) an electric power generation facility; (iv) a mining facility; or (v) an
industrial building otherwise incompatible with benchmarking in the benchmarking tool,
as determined by the commissioner;

(3) an agricultural building;

(4) a multitenant building that is served by a utility that deleted text begin cannot supplydeleted text end new text begin is not supplyingnew text end
aggregated customer usage datanew text begin under subdivision 8 or is not using a customer usage data
aggregation program to supply aggregated customer usage data to the benchmarking toolnew text end ;
or

(5) other property types that do not meet the purposes of this section, as determined by
the commissioner.

(g) "Customer energy use data" means data collected from utility customer meters that
reflect the quantity, quality, or timing of customers' energy use.

(h) "Energy" means electricity, natural gas, steam, or another product used to: (1) provide
heating, cooling, lighting, or water heating; or (2) power other end uses in a building.

(i) "Energy performance score" means a numerical value from one to 100 that the Energy
Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of
comparable buildings nationwide.

(j) "Energy Star Portfolio Manager" means an interactive resource management tool
developed by the United States Environmental Protection Agency that (1) enables the
periodic entry of a building's energy use data and other descriptive information about a
building, and (2) rates a building's energy efficiency against that of comparable buildings
nationwide.

(k) "Energy use intensity" means the total annual energy consumed in a building divided
by the building's total floor area.

(l) "Financial distress" means a covered property that, at the time benchmarking is
conducted:

(1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;

(2) is controlled by a court-appointed receiver based on financial distress;

(3) is owned by a financial institution through default by the borrower;

(4) has been acquired by deed in lieu of foreclosure; or

(5) has a senior mortgage that is subject to a notice of default.

(m) "Local government" means a statutory or home rule municipality or county.

(n) "Owner" means:

(1) an individual or entity that possesses title to a covered property; or

(2) an agent authorized to act on behalf of the covered property owner.

(o) "Qualifying utility" means deleted text begin a utility serving the covered property, includingdeleted text end :

(1) an electric or gas utility, including:

(i) an investor-owned electric or gas utilitynew text begin serving customers in Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, or Washington County, or in any city outside the metropolitan
area with a population of over 50,000 residents, as determined by the Minnesota State
Demographic Center, and serving properties with one or more buildings containing in sum
50,000 gross square feet or greaternew text end ; or

(ii) a municipally owned electric or gas utilitynew text begin serving customers in any city with a
population of over 50,000 residents, as determined by the Minnesota State Demographic
Center, and serving properties with one or more buildings containing in sum 50,000 gross
square feet or greaternew text end ;

(2) a natural gas supplier with five or more active commercial connections, accounts,
or customers in the statenew text begin and serving customers in Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington County, or in any city outside the metropolitan area with a
population of over 50,000 residents, as determined by the Minnesota State Demographic
Center, and serving properties with one or more buildings containing in sum 50,000 gross
square feet or greaternew text end ; or

(3) a district steam, hot water, or chilled water providernew text begin serving customers in Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city outside
the metropolitan area with a population of over 50,000 residents, as determined by the
Minnesota State Demographic Center, and serving properties with one or more buildings
containing in sum 50,000 gross square feet or greaternew text end .

(p) "Tenant" means a person that occupies or holds possession of a building or part of
a building or premises pursuant to a lease agreement.

(q) "Total floor area" means the sum of gross square footage inside a building's envelope,
measured between the outside exterior walls of the building. Total floor area includes covered
parking structures.

(r) "Utility customer" means the building owner or tenant listed on the utility's records
as the customer liable for payment of the utility service or additional charges assessed on
the utility account.

new text begin (s) "Whole building energy use data" means all energy consumed in a building, whether
purchased from a third party or generated at the building site or from any other source.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2022, section 216C.435, subdivision 3a, is amended to read:

"deleted text begin Cost-effectivedeleted text end Energy improvements"
means:

(1) any new construction, renovation, or retrofitting of qualifying commercial real
property to improve energy efficiency thatnew text begin : (i)new text end is permanently affixed to the propertydeleted text begin ,deleted text end new text begin ; and
(ii)new text end results in a net reduction in energy consumption deleted text begin without altering the principal source
of energy, and has been identifieddeleted text end new text begin or greenhouse gas emissions, as documentednew text end in an energy
audit deleted text begin as repaying the purchase and installation costs in 20 years or less,deleted text end based on the amount
of future energy saved deleted text begin and estimated future energy pricesdeleted text end new text begin or emissions avoidednew text end ;

(2) any renovation or retrofitting of qualifying residential real property that is permanently
affixed to the property and is eligible to receive an incentive through a program offered by
the electric or natural gas utility that provides service under section 216B.241 to the property
or is otherwise determined to be deleted text begin a cost-effectivedeleted text end new text begin an eligiblenew text end energy improvement by the
commissioner under section 216B.241, subdivision 1d, paragraph (a);

(3) permanent installation of new or upgraded electrical circuits and related equipment
to enable electrical vehicle charging; or

(4) a solar voltaic or solar thermal energy system attached to, installed within, or
proximate to a building that generates electrical or thermal energy from a renewable energy
source that has been deleted text begin identifieddeleted text end new text begin documentednew text end in an energy audit or renewable energy system
feasibility study deleted text begin as repaying their purchase and installation costs in 20 years or less, based
on the amount of future energy saved and estimated future energy pricesdeleted text end new text begin , along with the
estimated amount of related renewable energy productionnew text end .

Minnesota Statutes 2022, section 216C.435, subdivision 3b, is amended to read:

"Commercial PACE loan contractor"
means a person or entity that installs deleted text begin cost-effective energydeleted text end new text begin eligiblenew text end improvements financed
under a commercial PACE loan program.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin "Eligible improvement" means one or more energy
improvements, resiliency improvements, or water improvements made to qualifying real
property.
new text end

Minnesota Statutes 2022, section 216C.435, subdivision 4, is amended to read:

"Energy audit" means a formal evaluation of the energy
consumption of a building by a certified energy auditor, whose certification is approved by
the commissioner, for the purpose of identifying appropriate energy improvements that
could be made to the building and including an estimate of the deleted text begin length of time a specific
energy improvement will take to repay its purchase and installation costs, based on the
amount of energy saved and estimated future energy pricesdeleted text end new text begin effective useful life, the reduction
of energy consumption, and the related avoided greenhouse gas emissions resulting from
the proposed eligible improvementsnew text end .

Minnesota Statutes 2023 Supplement, section 216C.435, subdivision 8, is amended
to read:

"Qualifying commercial real property"
means a multifamily residential dwelling, a commercial or industrial building, or farmland,
as defined in section 216C.436, subdivision 1b, that the implementing entity has determined,
after review of an energy audit, renewable energy system feasibility study, new text begin water
improvement study, resiliency improvement study, new text end or agronomic assessment, as defined in
section 216C.436, subdivision 1b, can benefit from deleted text begin the installation of cost-effective energydeleted text end new text begin
installing eligiblenew text end improvements or land and water improvements, as defined in section
216C.436, subdivision 1b. Qualifying commercial real property includes new construction.

Minnesota Statutes 2022, section 216C.435, subdivision 10, is amended to read:

"Renewable energy system
feasibility study" means a written study, conducted by a contractor trained to perform that
analysis, for the purpose of determining the feasibility of installing a renewable energy
system in a building, including an estimate of the deleted text begin length of time a specificdeleted text end new text begin effective useful
life, the production of renewable energy, and any related avoided greenhouse gas emissions
of the proposednew text end renewable energy system deleted text begin will take to repay its purchase and installation
costs, based on the amount of energy saved and estimated future energy prices. For a
geothermal energy improvement, the feasibility study must calculate net savings in terms
of nongeothermal energy and costsdeleted text end .

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin "Resiliency improvement" means one or more
installations or modifications to eligible commercial real property that are designed to
improve a property's resiliency by improving the eligible real property's:
new text end

new text begin (1) structural integrity for seismic events;
new text end

new text begin (2) indoor air quality;
new text end

new text begin (3) durability to resist wind, fire, and flooding;
new text end

new text begin (4) ability to withstand an electric power outage;
new text end

new text begin (5) stormwater control measures, including structural and nonstructural measures to
mitigate stormwater runoff;
new text end

new text begin (6) ability to mitigate the impacts of extreme temperatures; or
new text end

new text begin (7) ability to mitigate greenhouse gas embodied emissions from the eligible real property.
new text end

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin "Resiliency improvement
feasibility study" means a written study that is conducted by a contractor trained to perform
the analysis to:
new text end

new text begin (1) determine the feasibility of installing a resiliency improvement;
new text end

new text begin (2) document the improved resiliency capabilities of the property; and
new text end

new text begin (3) estimate the effective useful life of the proposed resiliency improvements.
new text end

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin "Water improvement" means one or more installations
or modifications to qualifying commercial real property that are designed to improve water
efficiency or water quality by:
new text end

new text begin (1) reducing water consumption;
new text end

new text begin (2) improving the quality, potability, or safety of water for the qualifying property; or
new text end

new text begin (3) conserving or remediating water, in whole or in part, on qualifying real property.
new text end

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin "Water improvement feasibility study"
means a written study that is conducted by a contractor trained to perform the analysis to:
new text end

new text begin (1) determine the appropriate water improvements that could be made to the building;
and
new text end

new text begin (2) estimate the effective useful life, the reduction of water consumption, and any
improvement in water quality resulting from the proposed water improvements.
new text end

Minnesota Statutes 2022, section 216C.436, subdivision 1, is amended to read:

An implementing entity may establish
a commercial PACE loan program to finance deleted text begin cost-effectivedeleted text end energynew text begin , water, and resiliencynew text end
improvements to enable owners of qualifying commercial real property to pay for deleted text begin the
cost-effective energydeleted text end new text begin eligiblenew text end improvements to the qualifying real property with the net
proceeds and interest earnings of revenue bonds authorized in this section. An implementing
entity may limit the number of qualifying commercial real properties for which a property
owner may receive program financing.

Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 1b, is
amended to read:

(a) For the purposes of this section, the following terms have the
meanings given.

(b) "Agronomic assessment" means a study by an independent third party that assesses
the environmental impacts of proposed land and water improvements on farmland.

(d) "Land and water improvement" means:

(1) an improvement to farmland that:

(i) is permanent;

(ii) results in improved agricultural profitability or resiliency;

(iii) reduces the environmental impact of agricultural production; and

(iv) if the improvement affects drainage, complies with the most recent versions of the
applicable following conservation practice standards issued by the United States Department
of Agriculture's Natural Resources Conservation Service: Drainage Water Management
(Code 554), Saturated Buffer (Code 604), Denitrifying Bioreactor (Code 605), and
Constructed Wetland (Code 656); or

(2) water conservation and quality measures, which include permanently affixed
equipment, appliances, or improvements that reduce a property's water consumption or that
enable water to be managed more efficiently.

(e) "Resiliency" meansnew text begin :
new text end

new text begin (1)new text end the ability of farmland to maintain and enhance profitability, soil health, and water
qualitydeleted text begin .deleted text end new text begin ;
new text end

new text begin (2) the ability to mitigate greenhouse gas embodied emissions from an eligible real
property; or
new text end

new text begin (3) an increase in building resilience through flood mitigation, stormwater management,
wildfire and wind resistance, energy storage use, or microgrid use.
new text end

Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 2, is amended
to read:

A commercial PACE loan program must:

(1) impose requirements and conditions on financing arrangements to ensure timely
repayment;

(2) require an energy audit, renewable energy system feasibility study,new text begin resiliency
improvement study, water improvement study,new text end or agronomic or soil health assessment to
be conducted on the qualifying commercial real property and reviewed by the implementing
entity prior to approval of the financing;

(3) require the inspectionnew text begin or verificationnew text end of all deleted text begin installations and a performance verification
of at least ten percent of the cost-effective energydeleted text end new text begin eligiblenew text end improvements or land and water
improvements financed by the program;

(4) not prohibit the financing of all deleted text begin cost-effective energydeleted text end new text begin eligiblenew text end improvements or land
and water improvements not otherwise prohibited by this section;

(5) require that all deleted text begin cost-effective energydeleted text end new text begin eligiblenew text end improvements or land and water
improvements be made to a qualifying commercial real property prior to, or in conjunction
with, an applicant's repayment of financing for deleted text begin cost-effective energydeleted text end new text begin eligiblenew text end improvements
or land and water improvements for deleted text begin thatdeleted text end new text begin the qualifying commercial realnew text end property;

(6) have deleted text begin cost-effective energydeleted text end new text begin eligiblenew text end improvements or land and water improvements
financed by the program performed by a licensed contractor as required by chapter 326B
or other law or ordinance;

(7) require disclosures in the loan document to borrowers by the implementing entity
of: (i) the risks involved in borrowing, including the risk of foreclosure if a tax delinquency
results from a default; and (ii) all the terms and conditions of the commercial PACE loan
and the installation of deleted text begin cost-effective energydeleted text end new text begin eligiblenew text end improvements or land and water
improvements, including the interest rate being charged on the loan;

(8) provide financing only to those who demonstrate an ability to repay;

(9) not provide financing for a qualifying commercial real property in which the owner
is not current on mortgage or real property tax payments;

(10) require a petition to the implementing entity by all owners of the qualifying
commercial real property requesting collections of repayments as a special assessment under
section 429.101;

(11) provide that payments and assessments are not accelerated due to a default and that
a tax delinquency exists only for assessments not paid when due;

(12) require that liability for special assessments related to the financing runs with the
qualifying commercial real property; and

(13) prior to financing any improvements to or imposing any assessment upon qualifying
commercial real property, require notice to and written consent from the mortgage lender
of any mortgage encumbering or otherwise secured by the qualifying commercial real
property.

Minnesota Statutes 2022, section 216C.436, subdivision 4, is amended to read:

Financing provided under this section must have:

(1) a cost-weighted average maturity not exceeding the useful life of the deleted text begin energydeleted text end new text begin eligiblenew text end
improvements installed, as determined by the implementing entity, but in no event may a
term exceed deleted text begin 20deleted text end new text begin 30new text end years;

(2) a principal amount not to exceed the lesser of:

(i) the greater of deleted text begin 20deleted text end new text begin 30new text end percent of the assessed value of the real property on which the
improvements are to be installed or deleted text begin 20deleted text end new text begin 30new text end percent of the real property's appraised value,
accepted or approved by the mortgage lender; or

(ii) the actual cost of installing the deleted text begin energydeleted text end new text begin eligiblenew text end improvements, including the costs of
necessary equipment, materials, and labordeleted text begin ,deleted text end new text begin ;new text end the costs of each related energy audit deleted text begin ordeleted text end new text begin ,new text end
renewable energy system feasibility study, new text begin water improvement study, or resiliency
improvement study; new text end and the cost of verification of installation; and

(3) an interest rate sufficient to pay the financing costs of the program, including the
issuance of bonds and any financing delinquencies.

Minnesota Statutes 2022, section 216C.436, subdivision 7, is amended to read:

An implementing entity that finances an deleted text begin energydeleted text end new text begin eligiblenew text end
improvement under this section must:

(1) secure payment with a lien against the qualifying commercial real property; and

(2) collect repayments as a special assessment as provided for in section 429.101 or by
charter, provided that special assessments may be made payable in up to deleted text begin 20deleted text end new text begin 30new text end equal annual
installments.

If the implementing entity is an authority, the local government that authorized the
authority to act as implementing entity shall impose and collect special assessments necessary
to pay debt service on bonds issued by the implementing entity under subdivision 8, and
shall transfer all collections of the assessments upon receipt to the authority.

Minnesota Statutes 2022, section 216C.436, subdivision 8, is amended to read:

(a) An implementing entity may issue revenue
bonds as provided in chapter 475 for the purposes of this section and section 216C.437,
provided the revenue bond must not be payable more than deleted text begin 20deleted text end new text begin 30new text end years from the date of
issuance.

(b) The bonds must be payable as to both principal and interest solely from the revenues
from the assessments established in subdivision 7 and section 216C.437, subdivision 28.

(c) No holder of bonds issued under this subdivision may compel any exercise of the
taxing power of the implementing entity that issued the bonds to pay principal or interest
on the bonds, and if the implementing entity is an authority, no holder of the bonds may
compel any exercise of the taxing power of the local government. Bonds issued under this
subdivision are not a debt or obligation of the issuer or any local government that issued
them, nor is the payment of the bonds enforceable out of any money other than the revenue
pledged to the payment of the bonds.

Minnesota Statutes 2022, section 216C.436, subdivision 10, is amended to read:

deleted text begin A cost-effective energydeleted text end new text begin An eligiblenew text end
improvement financed under a PACE loan program, including all equipment purchased in
whole or in part with loan proceeds under a loan program, is deemed real property or a
fixture attached to the real property.

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Program" or "the program" means the residential energy rating rebate program
established under this section.
new text end

new text begin (c) "Qualifying unit" means a residential living space occupied by an individual or a
household that has been certified by the United States Department of Energy's Zero Energy
Ready Home Program and that is located in a building with no more than 12 residential
dwelling units. Individual units may qualify independently, without regard to the certification
status of another unit in a building or another structure on a lot.
new text end

new text begin By March 1, 2025, the commissioner must establish a residential
energy rating rebate program to provide financial assistance to builders and developers of
qualifying units to defray certification costs under the United States Department of Energy's
Zero Energy Ready Home Program.
new text end

new text begin (a) Applicants must apply for rebates using a form
developed by the commissioner that demonstrates, at a minimum:
new text end

new text begin (1) that the qualifying unit received a certification under the version of the United States
Department of Energy's Zero Energy Ready Home Program that was in effect at the time
the qualifying unit received its building permit; and
new text end

new text begin (2) proof of payment for energy rating services provided by a verifier partner of the
United States Department of Energy Zero Energy Ready Home Program.
new text end

new text begin (b) Applicants must submit a copy of the final energy rating report completed by the
verifier partner.
new text end

new text begin (c) Applications must be considered on a rolling basis according to criteria developed
by the commissioner.
new text end

new text begin The commissioner must award rebates to applicants in an
amount that equals the amount that the applicant paid for energy rating services certified
by third parties necessary for certification by the United States Department of Energy's Zero
Energy Ready Home Program, including travel and lodging costs for site visits of energy
rating professionals, subject to the following limitations:
new text end

new text begin (1) the maximum award per qualifying unit of single-family housing is $5,000;
new text end

new text begin (2) the maximum award per qualifying unit of all other types of housing is $2,500;
new text end

new text begin (3) no applicant may receive more than $15,000 in rebates for qualifying units in a single
building; and
new text end

new text begin (4) no more than one rebate may be awarded to a qualifying unit.
new text end

new text begin The commissioner must publicize the availability of rebates under
this section to, at a minimum:
new text end

new text begin (1) construction, energy, and architecture professionals;
new text end

new text begin (2) building officials; and
new text end

new text begin (3) affordable and nonprofit housing developers.
new text end

new text begin By January 15 of each year, beginning in 2026, the commissioner
must submit a report to the chairs and ranking minority members of the legislative committees
with primary responsibility for climate and energy policy that summarizes program outcomes
for the prior year, including, at a minimum:
new text end

new text begin (1) the number of rebates awarded, reported separately for single-family homes and
other housing types; and
new text end

new text begin (2) the mean and median amounts of the rebates awarded.
new text end

new text begin (a) The residential energy rating rebate
account is established as a separate account in the special revenue fund in the state treasury.
The commissioner must credit to the account appropriations and transfers to the account.
Earnings, including interest, dividends, and any other earnings arising from assets of the
account, must be credited to the account. Money remaining in the account at the end of a
fiscal year does not cancel to the general fund, but remains in the account until July 1, 2029.
The commissioner must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner to award residential energy
rating rebates to eligible applicants and to reimburse the reasonable costs incurred by the
department to administer this section.
new text end

new text begin This section expires June 30, 2029.
new text end

Repealed Minnesota Statutes: H4177-1

The commission may appoint one or more advisory task forces to assist it in carrying out its duties. Task forces appointed to evaluate sites or routes considered for designation shall be comprised of as many persons as may be designated by the commission, but at least one representative from each of the following: Regional development commissions, counties and municipal corporations and one town board member from each county in which a site or route is proposed to be located. No officer, agent, or employee of a utility shall serve on an advisory task force. Reimbursement for expenses incurred shall be made pursuant to the rules governing state employees. The task forces expire as provided in section 15.059, subdivision 6. At the time the task force is appointed, the commission shall specify the charge to the task force. The task force shall expire upon completion of its charge, upon designation by the commission of alternative sites or routes to be included in the environmental impact statement, or upon the specific date identified by the commission in the charge, whichever occurs first.

The commission may appoint one or more advisory task forces composed of technical and scientific experts to conduct research and make recommendations concerning generic issues such as health and safety, underground routes, double circuiting and long-range route and site planning. Reimbursement for expenses incurred shall be made pursuant to the rules governing reimbursement of state employees. The task forces expire as provided in section 15.059, subdivision 6. The time allowed for completion of a specific site or route procedure may not be extended to await the outcome of these generic investigations.

As used in this chapter, the terms defined in section 216E.01 and this section have the meanings given them, unless otherwise provided or indicated by the context or by this section.

(a) A wind energy conversion system of less than 25 megawatts of nameplate capacity as determined under section 216F.011 is a small wind energy conversion system if, by July 1, 2009, the owner so elects in writing and submits a completed application for zoning approval and the written election to the county or counties in which the project is proposed to be located. The owner must notify the Public Utilities Commission of the election at the time the owner submits the election to the county.

(b) Notwithstanding paragraph (a), a wind energy conversion system with a nameplate capacity exceeding five megawatts that is proposed to be located wholly or partially within a wind access buffer adjacent to state lands that are part of the outdoor recreation system, as enumerated in section 86A.05, is a large wind energy conversion system. The Department of Natural Resources shall negotiate in good faith with a system owner regarding siting and may support the system owner in seeking a variance from the system setback requirements if it determines that a variance is in the public interest.

Requirements governing certain towers are established in section 360.915.

The legislature declares it to be the policy of the state to site LWECS in an orderly manner compatible with environmental preservation, sustainable development, and the efficient use of resources.

(a) No person may construct an LWECS without a site permit issued by the Public Utilities Commission.

(b) Any person seeking to construct an LWECS shall submit an application to the commission for a site permit in accordance with this chapter and any rules adopted by the commission. The permitted site need not be contiguous land.

(c) The commission shall make a final decision on an application for a site permit for an LWECS within 180 days after acceptance of a complete application by the commission. The commission may extend this deadline for cause.

(d) The commission may place conditions in a permit and may deny, modify, suspend, or revoke a permit.

(e) The commission must require as a condition of permit issuance, including issuance of a modified permit for a repowering project, as defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts, including all of the permit recipient's construction contractors and subcontractors on the project: (1) pay no less than the prevailing wage rate, as defined in section 177.42; and (2) be subject to the requirements and enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.

Repealed Minnesota Rule: H4177-1

The commission has the authority to appoint a citizen advisory task force. The commission shall determine whether to appoint such a task force as early in the process as possible. The commission shall establish the size of the task force and appoint its members in accordance with Minnesota Statutes, section 216E.08. The commission shall advise of the appointment of the task force at the next monthly commission meeting.

If the commission decides not to appoint a citizen advisory task force and a person would like such a task force appointed, the person may request that the commission create a citizen advisory task force and appoint its members. Upon receipt of such a request, the commission shall place the matter on the agenda for the next regular monthly commission meeting.

Upon appointment of a citizen advisory task force, the commission shall specify in writing the charge to the task force. The charge shall include the identification of additional sites or routes or particular impacts to be evaluated in the environmental impact statement. The commission may establish additional charges, including a request that the task force express a preference for a specific site or route if it has one.

The task force expires upon completion of its charge, designation by the commission of alternative sites or routes to be included in the environmental impact statement, or the specific date identified by the commission in the charge, whichever occurs first.

Part 7850.2400, regarding the appointment of a citizen advisory task force, applies to projects being considered under the alternative permitting process.

new text begin APPROPRIATIONS
new text end

new text begin Available for the Year
new text end

new text begin Ending June 30
new text end

new text begin 2024
new text end

new text begin 2025
new text end