Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 2049

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/01/2014 09:08am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16
3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32
3.33 3.34 4.1 4.2 4.3 4.4 4.5 4.6

A bill for an act
relating to utilities; authorizing on-bill repayment programs related to
conservation improvement plans; requiring greenhouse gas reporting in
integrated resource plan filings; amending Minnesota Statutes 2012, sections
216B.241, by adding subdivisions; 216B.2422, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, section 216B.241, is amended by adding a
subdivision to read:


new text begin Subd. 5d. new text end

new text begin On-bill repayment programs. new text end

new text begin (a) For the purposes of this subdivision:
new text end

new text begin (1) "utility" means a public utility, municipal utility, or cooperative electric
association that provides electric or natural gas service to retail customers; and
new text end

new text begin (2) "on-bill repayment program" means a program in which a utility collects on a
customer's bill repayment of a loan to the customer by an eligible lender to finance the
customer's investment in eligible energy conservation or renewable energy projects, and
remits loan repayments to the lender.
new text end

new text begin (b) A utility may include as part of its conservation improvement plan an on-bill
repayment program to enable a customer to finance eligible projects with installment
loans originated by an eligible lender. An eligible project is one that is either an energy
conservation improvement, or a project installed on the customer's site that uses an eligible
renewable energy source as that term is defined in section 216B.2411, subdivision 2,
paragraph (b), but does not include mixed municipal solid waste or refuse-derived fuel
from mixed municipal solid waste. An eligible renewable energy source also includes
solar thermal technology that collects the sun's radiant energy and uses that energy to heat
or cool air or water, and meets the requirements of section 216C.25. To be an eligible
lender, a lender must:
new text end

new text begin (1) have a federal or state charter and be eligible for federal deposit insurance;
new text end

new text begin (2) be a government entity, including an entity established under chapter 469, that
has authority to provide financial assistance for energy efficiency and renewable energy
projects;
new text end

new text begin (3) be a joint venture by utilities established under section 452.25; or
new text end

new text begin (4) be licensed by the commissioner to conduct lending activities.
new text end

new text begin The commissioner must allow a utility broad discretion in designing and implementing an
on-bill repayment program, provided that the program complies with this subdivision.
new text end

new text begin (c) A utility may establish an on-bill repayment program for all customer classes
or for a specific customer class.
new text end

new text begin (d) A public utility that implements an on-bill repayment program under this
subdivision must enter into a contract with one or more eligible lenders that complies
with the requirements of this subdivision and contains provisions addressing capital
commitments, loan origination, transfer of loans to the public utility for on-bill repayment,
and acceptance of loans returned due to delinquency or default.
new text end

new text begin (e) A public utility's contract with a lender must require the lender to comply with
all applicable federal and state laws, rules, and regulations related to lending practices
and consumer protection; to conform to reasonable and prudent lending standards; and to
provide businesses that sell, maintain, and install eligible projects the ability to participate
in an on-bill repayment program under this subdivision on a nondiscriminatory basis.
new text end

new text begin (f) A public utility's contract with a lender may provide:
new text end

new text begin (1) for the public utility to purchase loans from the lender with a condition that the
lender must purchase back loans in delinquency or default; or
new text end

new text begin (2) for the lender to retain ownership of loans with the public utility servicing the
loans through on-bill repayment as long as payments are current.
new text end

new text begin The risk of default must remain with the lender. The lender shall not have recourse against
the public utility except in the event of negligence or breach of contract by the utility.
new text end

new text begin (g) If a public utility customer makes a partial payment on a utility bill that includes
a loan installment, the partial payment must be credited first to the amount owed for
utility service, including taxes and fees. A public utility may not suspend or terminate
a customer's utility service for delinquency or default on a loan that is being serviced
through the public utility's on-bill repayment program.
new text end

new text begin (h) An outstanding balance on a loan being repaid under this subdivision is a
financial obligation only of the customer who is signatory to the loan, and not to any
subsequent customer occupying the property associated with the loan. If the public utility
purchases loans from the lender as authorized under paragraph (f), clause (1), the public
utility must return to the lender a loan not repaid when a customer borrower no longer
occupies the property.
new text end

new text begin (i) Costs incurred by a public utility under this subdivision are recoverable as
provided in section 216B.16, subdivision 6b, paragraph (c), including reasonable
incremental costs for billing system modifications necessary to implement and operate an
on-bill repayment program and for ongoing costs to operate the program. Costs in a plan
approved by the commissioner may be counted toward a utility's conservation spending
requirements under subdivisions 1a and 1b. Energy savings from energy conservation
improvements resulting from this section may be counted toward satisfying a utility's
energy-savings goals under subdivision 1c.
new text end

new text begin (j) This subdivision does not require a utility to terminate or modify an existing
financing program and does not prohibit a utility from establishing an on-bill financing
program in which the utility provides the financing capital.
new text end

new text begin (k) A municipal utility or cooperative electric association that implements an on-bill
repayment program shall design the program to address the issues identified in paragraphs
(d) through (h) as determined by the governing board of the utility or association.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.241, is amended by adding a
subdivision to read:


new text begin Subd. 5e. new text end

new text begin Commercial and multifamily rental buildings. new text end

new text begin The commissioner
shall solicit, after consulting with stakeholders about the terms of the solicitation, and
may approve proposals for one or more utilities to voluntarily participate in a program
that addresses energy efficiency in commercially or residentially-metered rental buildings,
including multifamily residential buildings. A program may be included in a conservation
improvement plan under this section, or proposed separately. If a program includes an
on-bill repayment mechanism, it must, to the extent practical, utilize the criteria and
standards of and must comply with the requirements of subdivision 5d, except that a
mechanism may allow successor tenants to assume any balance of the loan paid through
the utility bill, and may allow the building owner to assume the balance when the unit is
empty. Participation in an on-bill repayment program under this subdivision is voluntary
for building owners. The commissioner may only approve a program that includes an
on-bill repayment mechanism requiring tenants occupying units in the building to repay a
loan if the tenants agree to do so in writing.
new text end

Sec. 3.

Minnesota Statutes 2012, section 216B.2422, is amended by adding a
subdivision to read:


new text begin Subd. 2c. new text end

new text begin Long-range emission reduction planning. new text end

new text begin Each utility required to file
a resource plan under this section shall include in the filing a narrative identifying and
describing the costs, opportunities, and technical barriers to the utility continuing to make
progress on its system toward achieving the state greenhouse gas emission reduction goals
established in section 216H.02, subdivision 1, and the technologies, alternatives, and steps
the utility is considering to address those opportunities and barriers.
new text end