HF 1386

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/13/2023 04:40pm

A bill for an act
relating to energy; adding and modifying provisions to support deployment of
energy storage; directing the Public Utilities Commission to issue an order;
requiring utilities to install an energy storage system under certain conditions;
directing public utilities to file a tariff with the Public Utilities Commission;
requiring the Public Utilities Commission to order the installation of energy storage
systems; requiring public utilities to file a plan to install energy storage systems;
establishing an incentive program to install energy storage systems; appropriating
money; authorizing rulemaking; amending Minnesota Statutes 2022, sections
216B.1611, by adding a subdivision; 216B.2422, subdivision 7; 216E.01,
subdivision 6, by adding a subdivision; 216E.03, subdivisions 1, 3, 5, as amended,
6, 7, as amended; 216E.04, subdivision 2, as amended; 216E.06; 216E.07; 216E.10;
proposing coding for new law in Minnesota Statutes, chapters 216B; 216C.

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

Section 1.

Minnesota Statutes 2022, section 216B.1611, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Distributed generation capacity; treatment. new text end

new text begin (a) No later than November 1,
2023, the commission must issue an order clarifying that for the purpose of interconnecting
an on-site customer-owned distributed generation facility, the capacity of the facility must
be measured and expressed as:
new text end

new text begin (1) export capacity rather than nameplate capacity; and
new text end

new text begin (2) alternating current capacity.
new text end

new text begin (b) For the purposes of this subdivision, "export capacity" means a distributed generation
facility's nameplate capacity net of any limitations on the amount of power the distributed
generating facility can export to a utility's distribution system resulting from physical
equipment that is part of or connected to the generating facility, including but not limited
to an inverter, relay, or energy storage system, as defined in section 216B.2422, subdivision
1, paragraph (f), as reported to the utility by the owner of the distributed generation facility.
new text end

new text begin (c) The owner of a distributed generation facility interconnected to a utility's distribution
system may not increase the export capacity of the distributed generation facility beyond
the level that was first interconnected to the utility's distribution system without the utility's
written approval. The utility must respond in writing to an owner's notice of intent to increase
export capacity within 90 days of receipt, and may reject the request only upon determining
that acceding to the request would reduce safety or the reliability of electric service.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [216B.1615] FEEDER LINE REPLACEMENT; STORAGE REQUIREMENT.
new text end

new text begin (a) When replacing a feeder line with a feeder line of higher capacity, a public utility
must install at the applicable distribution substation an energy storage system that is of
sufficient capacity to insure customer safety and grid reliability.
new text end

new text begin (b) For the purposes of this section:
new text end

new text begin (1) "energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f); and
new text end

new text begin (2) "feeder line" means a powerline (i) that transfers power from a distribution system
substation to distribution transformers, and (ii) whose current flow is the same at the sending
and receiving end of the powerline.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [216B.1616] ENERGY STORAGE; PEAK SHAVING TARIFF.
new text end

new text begin (a) No later than September 15, 2023, the commission must initiate a docket designed
to result in a commission order requiring public utilities providing electric service to file a
tariff with the commission, based on guidelines established in the order, to compensate
customer-owners of on-site energy storage systems, as defined in section 216B.2422,
subdivision 1, paragraph (f), for the discharge of stored energy that is net input to the utility
during periods of peak electricity demand by utility customers.
new text end

new text begin (b) Within 90 days of the date the commission issues an order under this subdivision,
each public utility must file with the commission for commission approval, disapproval, or
modification a tariff that is consistent with the order.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin [216B.1697] ENERGY STORAGE SYSTEMS; DEPLOYMENT TARGETS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "energy storage system" has
the meaning given in Minnesota Statutes, section 216B.2422, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Deployment targets. new text end

new text begin (a) Each utility required to file a resource plan under
section 216B.2422 must deploy energy storage systems of a capacity to be determined by
the commission under paragraph (b). No later than December 31, 2033, the aggregate
statewide capacity of energy storage systems deployed by all utilities subject to this section
must be at least 3,000 megawatts.
new text end

new text begin (b) No later than October 1, 2023, the commission must issue an order specifying the
amount of energy storage capacity required of each utility subject to this section in order
to meet the statewide capacity target and schedule in paragraph (a). The amount of energy
storage capacity required of an individual utility must be calculated by dividing each utility's
total electric retail sales to Minnesota customers in 2022 by total electric retail sales to
Minnesota customers in 2022 of all utilities subject to this section, and multiplying that
quotient by 3,000 megawatts. The commission may establish interim energy storage capacity
targets that utilities are required to meet before the 2033 target date.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) A utility must file an application with the commission prior
to each proposed installation of an energy storage system. Each application must contain:
new text end

new text begin (1) the energy storage system's technical specifications, including but not limited to:
new text end

new text begin (i) the maximum amount of electric output that the energy storage system can provide;
new text end

new text begin (ii) the length of time the energy storage system can sustain maximum output;
new text end

new text begin (iii) the location of the project within the utility's distribution system and a description
of the analysis conducted to determine the location;
new text end

new text begin (iv) a description of the utility's electric system needs that the proposed energy storage
system addresses;
new text end

new text begin (v) a description of the types of services the energy storage system is expected to provide;
and
new text end

new text begin (vi) a description of the technology required to construct, operate, and maintain the
energy storage system, including any data or communication system necessary to operate
the energy storage system;
new text end

new text begin (2) the estimated cost of the project, including:
new text end

new text begin (i) capital costs;
new text end

new text begin (ii) the estimated cost per unit of energy delivered by the energy storage system; and
new text end

new text begin (iii) an evaluation of the cost-effectiveness of the energy storage system;
new text end

new text begin (3) the estimated benefits of the energy storage system to the utility's electric system,
including but not limited to:
new text end

new text begin (i) deferred investments in generation, transmission, or distribution capacity;
new text end

new text begin (ii) reduced need for electricity during times of peak demand;
new text end

new text begin (iii) improved reliability of the utility's transmission or distribution system; and
new text end

new text begin (iv) improved integration of the utility's renewable energy resources;
new text end

new text begin (4) a description indicating how the addition of an energy storage system complements
the utility's proposed actions described in the most recent integrated resource plan submitted
under section 216B.2422 to meet expected demand with the least expensive combination
of resources; and
new text end

new text begin (5) any additional information required by the commission.
new text end

new text begin (b) A utility must include in the application an evaluation of the potential to store energy
throughout the utility's electric system and must identify geographic areas in the utility's
service area where the deployment of energy storage systems has the greatest potential to
achieve the economic benefits identified in paragraph (a), clause (3).
new text end

new text begin Subd. 4. new text end

new text begin Commission review. new text end

new text begin The commission must review each proposal submitted
under this section and may approve, reject, or modify the proposal. The commission must
approve a proposal the commission determines: (1) is in the public interest; and (2) reasonably
balances the value derived from the deployment of an energy storage system for ratepayers
and the utility's operations with the cost to procure, construct, operate, and maintain the
energy storage system.
new text end

new text begin Subd. 5. new text end

new text begin Cost recovery. new text end

new text begin A public utility may recover from ratepayers all costs prudently
incurred by the public utility to deploy an energy storage system approved by the commission
under this section, net of any revenues generated by the operation of the energy storage
system.
new text end

new text begin Subd. 6. new text end

new text begin Reporting; compliance. new text end

new text begin The commission must establish reporting procedures
for utilities sufficient in content and frequency to keep the commission informed regarding
compliance with this section.
new text end

new text begin Subd. 7. new text end

new text begin Commission authority; orders. new text end

new text begin The commission may issue orders and conduct
proceedings necessary to implement and administer this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2022, section 216B.2422, subdivision 7, is amended to read:

Subd. 7.

Energy storage systems assessment.

(a) Each deleted text begin public deleted text end utility required to file a
resource plan under subdivision 2 must new text begin incorporate in its resource planning the energy
storage targets it is required to meet under section 216B.1697 and must new text end include in the filing
an assessment of energy storage systems that analyzes how the deployment of energy storage
systems contributes to:

(1) meeting identified generation and capacity needs; deleted text begin and
deleted text end

new text begin (2) the factors identified in section 216B.1697, subdivision 3, paragraph (a), clause (3);
and
new text end

deleted text begin (2) deleted text end new text begin (3) new text end evaluating ancillary services.

(b) The assessment must employ appropriate modeling methods to enable the analysis
required in paragraph (a).

Sec. 6.

new text begin [216C.377] ENERGY STORAGE INCENTIVE PROGRAM.
new text end

new text begin (a) The public utility subject to section 116C.779 must develop and operate a program
to provide a grant to customers to reduce the cost to purchase and install an on-site energy
storage system, as defined in section 216B.2422, subdivision 1, paragraph (f). The public
utility subject to this section must file a plan with the commissioner to operate the program
no later than November 1, 2023. The public utility must not operate the program until it is
approved by the commissioner. Any change to an operating program must be approved by
the commissioner.
new text end

new text begin (b) To be eligible to receive a grant under this section, an energy storage system:
new text end

new text begin (1) must have a capacity no greater than 50 kilowatt hours; and
new text end

new text begin (2) must be located within the electric service area of the public utility subject to this
section.
new text end

new text begin (c) An owner of an energy storage system is eligible to receive a grant under this section
if:
new text end

new text begin (1) a solar energy generating system is operating at the same site as the proposed energy
storage system; or
new text end

new text begin (2) the owner has filed an application with the public utility subject to this section to
interconnect a solar energy generating system at the same site as the proposed energy storage
system.
new text end

new text begin (d) The amount of a grant awarded under this section must be based on the number of
watt-hours that reflects the duration of the energy storage system at its rated capacity, up
to a maximum of $........
new text end

new text begin (e) The commissioner must annually review and may adjust the amount of grants awarded
under this section, but must not increase the amount over that awarded in previous years
unless the commissioner demonstrates in writing that an upward adjustment is warranted
by market conditions.
new text end

new text begin (f) A customer who receives a grant under this section is eligible to receive financial
assistance under programs operated by the state or the utility for the solar energy generating
system operating in conjunction with the energy storage system.
new text end

new text begin (g) For the purposes of this section, "solar energy generating system" has the meaning
given in section 216E.01, subdivision 9a.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2022, section 216E.01, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Energy storage system. new text end

new text begin "Energy storage system" means equipment and
associated facilities designed with a nameplate capacity of 5,000 kilowatts or more that is
capable of storing generated electricity for a period of time and delivering the electricity
for use after storage.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2022, section 216E.01, subdivision 6, is amended to read:

Subd. 6.

Large electric power facilities.

"Large electric power facilities" means high
voltage transmission lines deleted text begin and deleted text end new text begin , new text end large electric power generating plants new text begin , and energy storage
systems new text end .

Sec. 9.

Minnesota Statutes 2022, section 216E.03, subdivision 1, is amended to read:

Subdivision 1.

Site permit.

No person may construct a large electric generating plant
new text begin or an energy storage system new text end without a site permit from the commission. A large electric
generating plant new text begin or an energy storage system new text end may be constructed only on a site 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2022, section 216E.03, subdivision 3, is amended to read:

Subd. 3.

Application.

Any person seeking to construct a large electric power deleted text begin generating
plant or a high-voltage transmission line deleted text end new text begin facility new text end must apply to the commission for a site or
route permit new text begin , as applicable new text end . The application shall contain such information as the commission
may require. The applicant shall propose at least two sites for a large electric power
deleted text begin generating plant deleted text end new text begin facility new text end and two routes for a high-voltage transmission line. 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2022, section 216E.03, subdivision 5, as amended by Laws
2023, chapter 7, section 25, is amended to read:

Subd. 5.

Environmental review.

(a) The commissioner of the Department of Commerce
shall prepare for the commission an environmental impact statement on each proposed large
electric power deleted text begin generating plant or high-voltage transmission line deleted text end new text begin facility new text end 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.

(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 begin (c) Environmental review of energy storage systems seeking a site permit under this
section shall be conducted under chapter 116D and Minnesota Rules, chapter 4410. The
commission shall serve as the responsible governmental unit for the project. Preparation of
an environmental impact statement may not be required for an energy storage system.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2022, section 216E.03, subdivision 6, is amended to read:

Subd. 6.

Public hearing.

The commission shall hold a public hearing on an application
for a site new text begin or route new text end permit for a large electric power deleted text begin generating plant or a route permit for a
high-voltage transmission line deleted text end new text begin facility new text end . 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2022, section 216E.03, subdivision 7, as amended by Laws
2023, chapter 7, section 26, is amended to read:

Subd. 7.

Considerations in designating sites and routes.

(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 deleted text begin generating plants and high-voltage transmission lines deleted text end new text begin
facilities new text end 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2022, section 216E.04, subdivision 2, as amended by Laws
2023, chapter 7, section 29, is amended to read:

Subd. 2.

Applicable projects.

The requirements and procedures in this section apply to
the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants that are fueled by natural gas;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

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

(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;

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

(7) 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 and
deleted text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2022, section 216E.06, is amended to read:

216E.06 EMERGENCY PERMIT.

(a) Any utility whose electric power system requires the immediate construction of a
large electric power deleted text begin generating plant or high-voltage transmission line deleted text end new text begin facility new text end due to a major
unforeseen event may apply to the commission for an emergency permit. The application
shall provide notice in writing of the major unforeseen event and the need for immediate
construction. The permit must be issued in a timely manner, no later than 195 days after
the commission's acceptance of the application and upon a finding by the commission that
(1) a demonstrable emergency exists, (2) the emergency requires immediate construction,
and (3) adherence to the procedures and time schedules specified in section 216E.03 would
jeopardize the utility's electric power system or would jeopardize the utility's ability to meet
the electric needs of its customers in an orderly and timely manner.

(b) A public hearing to determine if an emergency exists must be held within 90 days
of the application. The commission, after notice and hearing, shall adopt rules specifying
the criteria for emergency certification.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2022, section 216E.07, is amended to read:

216E.07 ANNUAL HEARING.

The commission shall hold an annual public hearing at a time and place prescribed by
rule in order to afford interested persons an opportunity to be heard regarding any matters
relating to the siting new text begin and routing new text end of large electric deleted text begin generating deleted text end power deleted text begin plants and routing of
high-voltage transmission lines deleted text end new text begin facilities new text end . At the meeting, the commission shall advise the
public of the permits issued by the commission in the past year. The commission shall
provide at least ten days but no more than 45 days' notice of the annual meeting by mailing
or serving electronically, as provided in section 216.17, a notice to those persons who have
requested notice and by publication in the EQB Monitor and the commission's weekly
calendar.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

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

216E.10 APPLICATION TO LOCAL REGULATION AND OTHER STATE
PERMITS.

Subdivision 1.

Site or route permit prevails over local provisions.

To assure the
paramount and controlling effect of the provisions herein over other state agencies, regional,
county, and local governments, and special purpose government districts, the issuance of a
site permit or route permit and subsequent purchase and use of such site or route locations
for large electric power deleted text begin generating plant and high-voltage transmission line deleted text end new text begin facility new text end purposes
shall be the sole site or route approval required to be obtained by the utility. Such permit
shall supersede and preempt all zoning, building, or land use rules, regulations, or ordinances
promulgated by regional, county, local and special purpose government.

Subd. 2.

Other state permits.

Notwithstanding anything herein to the contrary, utilities
shall obtain state permits that may be required to construct and operate large electric power
deleted text begin generating plants and high-voltage transmission lines deleted text end new text begin facilities new text end . A state agency in processing
a utility's facility permit application shall be bound to the decisions of the commission, with
respect to the site or route designation, and with respect to other matters for which authority
has been granted to the commission by this chapter.

Subd. 3.

State agency participation.

(a) State agencies authorized to issue permits
required for construction or operation of large electric power generating plants or high-voltage
transmission lines 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 EFFECTIVE DATE. new text end

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

Sec. 18. new text begin RULES AUTHORIZED.
new text end

new text begin (a) The commission is authorized to develop and adopt rules for siting energy storage
systems and to reflect the provisions of this act.
new text end

new text begin (b) Until the commission adopts rules under this section, the commission shall utilize
applicable provisions of Minnesota Rules, chapter 7850, to site energy storage systems,
except that Minnesota Rules, part 7850.4400, subpart 4, shall not apply to energy storage
systems.
new text end

new text begin (c) For the purposes of this section, "energy storage system" has the meaning given in
Minnesota Statutes, section 216E.01, subdivision 3a.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19. new text begin APPROPRIATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$....... in fiscal year 2024 is appropriated from the renewable development account established
in Minnesota Statutes, section 116C.779, to the commissioner of commerce to award grants
to install energy storage systems under Minnesota Statutes, section 216C.377, and to pay
the reasonable costs of the department to administer that section. This appropriation remains
available until expended. The base for this program in fiscal year 2025 is $........
new text end

new text begin EFFECTIVE DATE. new text end

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

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

new text begin The revisor of statutes shall make any necessary changes in Minnesota Rules resulting
from the changes made to Minnesota Statutes, chapter 216E, in this act.
new text end

new text begin EFFECTIVE DATE. new text end

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