1.1 A bill for an act
1.2 relating to energy; enacting the Minnesota Energy
1.3 Security and Reliability Act; requiring an energy
1.4 security blueprint and a state transmission plan;
1.5 establishing position of reliability administrator;
1.6 providing for essential energy infrastructure;
1.7 modifying provisions for siting, routing, and
1.8 determining the need for large electric power
1.9 facilities; regulating conservation expenditures by
1.10 energy utilities and eliminating state pre-approval of
1.11 conservation plans by public utilities; encouraging
1.12 regulatory flexibility in supplying and obtaining
1.13 energy; regulating interconnection of distributed
1.14 utility resources; providing for safety and service
1.15 standards from distribution utilities; clarifying the
1.16 state cold weather disconnection requirements;
1.17 authorizing municipal utilities, municipal power
1.18 agencies, cooperative utilities, and investor-owned
1.19 utilities to form joint ventures to provide utility
1.20 services; eliminating the requirement for individual
1.21 utility resource plans; requiring reports; making
1.22 technical, conforming, and clarifying changes;
1.23 appropriating money; amending Minnesota Statutes 2000,
1.24 sections 16B.32, subdivision 2; 116C.52, subdivisions
1.25 4, 10; 116C.53, subdivisions 2, 3; 116C.57,
1.26 subdivisions 1, 2, 4, by adding subdivisions; 116C.58;
1.27 116C.59, subdivisions 1, 4; 116C.60; 116C.61,
1.28 subdivisions 1, 3; 116C.62; 116C.64; 116C.645;
1.29 116C.65; 116C.66; 116C.69; 216B.095; 216B.097,
1.30 subdivision 1; 216B.16, subdivision 15; 216B.1645;
1.31 216B.241, subdivisions 1, 1a, 1b, 2; 216B.2421,
1.32 subdivision 2; 216B.243, subdivisions 3, 4, 8;
1.33 216B.62, subdivision 5; 216C.051, subdivisions 6, 9;
1.34 216C.41, subdivisions 3, 5, by adding a subdivision;
1.35 proposing coding for new law in Minnesota Statutes,
1.36 chapters 16B; 116C; 216B; 216C; 452; repealing
1.37 Minnesota Statutes 2000, sections 116C.55,
1.38 subdivisions 2, 3; 116C.57, subdivisions 3, 5, 5a;
1.39 116C.67; 216B.2421, subdivision 3.
1.40 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.41 ARTICLE 1
1.42 PUBLIC BUILDING ENERGY CONSERVATION
2.1 Section 1. Minnesota Statutes 2000, section 16B.32,
2.2 subdivision 2, is amended to read:
2.3 Subd. 2. [ENERGY CONSERVATION GOALS; EFFICIENCY
2.4 PROGRAM.] (a) The commissioner of administration in consultation
2.5 with the department of public service commerce, in cooperation
2.6 with one or more public utilities or comprehensive energy
2.7 services providers, may conduct a shared-savings program
2.8 involving energy conservation expenditures on state-owned and
2.9 wholly state-leased buildings. The public utility or energy
2.10 services provider shall contract with appropriate state agencies
2.11 to implement energy efficiency improvements in the selected
2.12 buildings. A contract must require the public utility or energy
2.13 services provider to include all energy efficiency improvements
2.14 in selected buildings that are calculated to achieve a cost
2.15 payback within ten years. The contract must require that the
2.16 public utility or energy services provider be repaid solely from
2.17 energy cost savings and only to the extent of energy cost
2.18 savings. Repayments must be interest-free. The goal of the
2.19 program in this paragraph is to demonstrate that through
2.20 effective energy conservation the total energy consumption per
2.21 square foot of state-owned and wholly state-leased buildings
2.22 could be reduced exceed existing energy code by at least 25 30
2.23 percent from consumption in the base year of 1990. All agencies
2.24 participating in the program must report to the commissioner of
2.25 administration their monthly energy usage, building schedules,
2.26 inventory of energy-consuming equipment, and other information
2.27 as needed by the commissioner to manage and evaluate the program.
2.28 (b) The commissioner may exclude from the program of
2.29 paragraph (a) a building in which energy conservation measures
2.30 are carried out. "Energy conservation measures" means measures
2.31 that are applied to a state building that improve energy
2.32 efficiency and have a simple return of investment in ten years
2.33 or within the remaining period of a lease, whichever time is
2.34 shorter, and involves energy conservation, conservation
2.35 facilities, renewable energy sources, improvements in operations
2.36 and maintenance efficiencies, or retrofit activities.
3.1 (c) This subdivision expires January 1, 2001.
3.2 Sec. 2. [16B.325] [SUSTAINABLE BUILDING GUIDELINES.]
3.3 The department of administration and the department of
3.4 commerce, with the assistance of other agencies, shall develop
3.5 sustainable building design guidelines for all new state
3.6 buildings by January 15, 2003. The primary objectives of these
3.7 guidelines are to ensure that all new state buildings initially
3.8 exceed existing energy code, as established in Minnesota Rules,
3.9 chapter 7676, by at least 30 percent. The guidelines must focus
3.10 on achieving the lowest possible lifetime cost for new buildings
3.11 and allow for changes in the guidelines that encourage continual
3.12 energy conservation improvements in new buildings. The design
3.13 guidelines must establish sustainability guidelines that include
3.14 air quality and lighting standards and that create and maintain
3.15 a healthy environment and facilitate productivity improvements;
3.16 specify ways to reduce material costs; and must consider the
3.17 long-term operating costs of the building, including the use of
3.18 renewable energy sources and distributed electric energy
3.19 generation that uses a renewable source or natural gas or a fuel
3.20 that is as clean or cleaner than natural gas. In developing the
3.21 guidelines, the departments shall use an open process, including
3.22 providing the opportunity for public comment. The guidelines
3.23 established under this section are mandatory for all new
3.24 buildings receiving funding from the bond proceeds fund after
3.25 January 1, 2004.
3.26 Sec. 3. [BENCHMARKS FOR EXISTING PUBLIC BUILDINGS.]
3.27 The department of administration shall maintain information
3.28 on energy usage in all public buildings for the purpose of
3.29 establishing energy efficiency benchmarks and energy
3.30 conservation goals. The department shall report preliminary
3.31 energy conservation goals to the chairs of the senate
3.32 telecommunications, energy and utilities committee and the house
3.33 regulated industries committee by January 15, 2002. The
3.34 department shall develop a comprehensive plan by January 15,
3.35 2003, to maximize electrical and thermal energy efficiency in
3.36 existing public buildings through conservation measures having a
4.1 simple payback within ten to 15 years. The plan must detail the
4.2 steps necessary to implement the conservation measures and
4.3 include the projected costs of these measures. The owner or
4.4 operator of a public building subject to this section shall
4.5 provide information to the department of administration
4.6 necessary to accomplish the purposes of this section.
4.7 ARTICLE 2
4.8 JOINT VENTURES
4.9 Section 1. [452.25] [JOINT VENTURES BY UTILITIES.]
4.10 Subdivision 1. [APPLICABILITY.] This section applies to
4.11 all home rule charter and statutory cities, except as provided
4.12 in section 2.
4.13 Subd. 2. [DEFINITIONS.] For purposes of this section:
4.14 (a) "City" means a statutory or home rule charter city,
4.15 section 410.015 to the contrary notwithstanding.
4.16 (b) "Cooperative association" means a cooperative
4.17 association organized under chapter 308A.
4.18 (c) "Governing body" means (1) the city council in a city
4.19 that operates a municipal utility, or (2) a board, commission,
4.20 or body empowered by law, city charter, or ordinance or
4.21 resolution of the city council to control and operate the
4.22 municipal utility.
4.23 (d) "Investor-owned utility" means an entity that provides
4.24 utility services to the public under chapter 216B and that is
4.25 owned by private persons.
4.26 (e) "Municipal power agency" means an organization created
4.27 under sections 453.51 to 453.62.
4.28 (f) "Municipal utility" means a utility owned, operated, or
4.29 controlled by a city to provide utility services.
4.30 (g) "Public utility" or "utility" means a provider of
4.31 electric or water facilities or services or an entity engaged in
4.32 other similar or related operations authorized by law or charter.
4.33 Subd. 3. [AUTHORITY.] (a) Upon the approval of its elected
4.34 utilities commission or, if there be none, its city council, a
4.35 municipal utility may enter into a joint venture with other
4.36 municipal utilities, municipal power agencies, cooperative
5.1 associations, or investor-owned utilities to provide utility
5.2 services. Retail electric utility services provided by a joint
5.3 venture must be within the boundaries of each utility's
5.4 exclusive electric service territory as shown on the map of
5.5 service territories maintained by the department of commerce.
5.6 The terms and conditions of the joint venture are subject to
5.7 ratification by the governing bodies of the respective utilities
5.8 and may include the formation of a corporate or other separate
5.9 legal entity with an administrative and governance structure
5.10 independent of the respective utilities.
5.11 (b) A corporate or other separate legal entity, if formed:
5.12 (1) has the authority and legal capacity and, in the
5.13 exercise of the joint venture, the powers, privileges,
5.14 responsibilities, and duties authorized by this section;
5.15 (2) is subject to the laws and rules applicable to the
5.16 organization, internal governance, and activities of the entity;
5.17 (3) in connection with its property and affairs and in
5.18 connection with property within its control, may exercise any
5.19 and all powers that may be exercised by a natural person or a
5.20 private corporation or other private legal entity in connection
5.21 with similar property and affairs; and
5.22 (4) a joint venture that does not include an investor-owned
5.23 utility may elect to be deemed a municipal utility or a
5.24 cooperative association for purposes of chapter 216B or other
5.25 federal or state law regulating utility operations; and
5.26 (5) for a joint venture that includes an investor-owned
5.27 utility, the commission has authority over the activities,
5.28 services and rates of the joint venture, and may exercise that
5.29 authority, to the same extent the commission has authority over
5.30 the activities, services and rates of the investor-owned utility
5.31 itself.
5.32 (c) Any corporation, if formed, must comply with section
5.33 465.719, subdivisions 9, 10, 11, 12, 13, and 14. The term
5.34 "political subdivision," as it is used in section 465.719, shall
5.35 refer to the city council of a city.
5.36 Subd. 4. [RETAIL CUSTOMERS.] Unless the joint venture's
6.1 retail electric rates, as defined in section 216B.02,
6.2 subdivision 5, of a joint venture that does not include an
6.3 investor-owned utility, are approved by the governing body of
6.4 each municipal utility or municipal power agency and the board
6.5 of directors of each cooperative association that is party to
6.6 the joint venture, the retail electric customers of the joint
6.7 venture, if their number be more than 25, may elect to become
6.8 subject to electric rate regulation by the public utilities
6.9 commission as provided in chapter 216B. The election is subject
6.10 to and must be carried out according to the procedures in
6.11 section 216B.026 and, for these purposes, each retail electric
6.12 customer of the joint venture is deemed a member or stockholder
6.13 as referred to in section 216B.026.
6.14 Subd. 5. [POWERS.] (a) A joint venture under this section
6.15 has the powers, privileges, responsibilities, and duties of the
6.16 separate utilities entering into the joint venture as the joint
6.17 venture agreement may provide, including the powers under
6.18 paragraph (b), except that:
6.19 (1) with respect to retail electric utility services, a
6.20 joint venture shall not enlarge or extend the service territory
6.21 served by the joint venture by virtue of the authority granted
6.22 in sections 216B.44, 216B.45, and 216B.47;
6.23 (2) a joint venture may extend service to an existing
6.24 connected load of 2,000 kilowatts or more, pursuant to section
6.25 216B.42, when the load is outside of the assigned service area
6.26 of the joint venture, or of the electric utilities party to the
6.27 joint venture, only if the load is already being served by one
6.28 of the electric utilities party to the joint venture; and
6.29 (3) a privately owned utility, as defined in section
6.30 216B.02, may extend service to an existing connected load of
6.31 2,000 kilowatts or more, pursuant to section 216B.42, when the
6.32 load is located within the assigned service territory of the
6.33 joint venture, or of the electric utilities party to the joint
6.34 venture, only if the load is already being served by that
6.35 privately owned utility.
6.36 The limitations of clauses (1) to (3) do not apply if written
7.1 consent to the action is obtained from the electric utility
7.2 assigned to and serving the affected service territory or
7.3 connected load.
7.4 (b) Joint venture powers include, but are not limited to,
7.5 the authority to:
7.6 (1) finance, own, acquire, construct, and operate
7.7 facilities necessary to provide utility services to retail
7.8 customers of the joint venture, including generation,
7.9 transmission, and distribution facilities, and like facilities
7.10 used in other utility services;
7.11 (2) combine assigned service territories, in whole or in
7.12 part, upon notice to, hearing by, and approval of the public
7.13 utilities commission;
7.14 (3) serve customers in the utilities' service territories
7.15 or in the combined service territory;
7.16 (4) combine, share, or employ administrative, managerial,
7.17 operational, or other staff if combining or sharing will not
7.18 degrade safety, reliability, or customer service standards;
7.19 (5) provide for joint administrative functions, such as
7.20 meter reading and billings;
7.21 (6) purchase or sell utility services at wholesale for
7.22 resale to customers;
7.23 (7) provide conservation programs, other utility programs,
7.24 and public interest programs, such as cold weather shut-off
7.25 protection and conservation spending programs, as required by
7.26 law and rule; and
7.27 (8) participate as the parties deem necessary in providing
7.28 utility services with other municipal utilities, cooperative
7.29 utilities, investor-owned utilities, or other entities, public
7.30 or private.
7.31 (c) Notwithstanding any contrary provision within this
7.32 section, a joint venture formed under this section may engage in
7.33 wholesale utility services unless the municipal utility,
7.34 municipal power agency, cooperative association, or
7.35 investor-owned utility party to the joint venture is prohibited
7.36 under current law from conducting that activity; but, in any
8.1 case, the joint venture may provide wholesale services to a
8.2 municipal utility, a cooperative association, or an
8.3 investor-owned utility that is party to the joint venture.
8.4 (d) This subdivision does not limit the authority of a
8.5 joint venture to exercise rights of eminent domain for other
8.6 utility purposes to the same extent as is permitted of those
8.7 utilities party to the joint venture.
8.8 Subd. 6. [CONSTRUCTION.] (a) The powers conferred by this
8.9 section are in addition to the powers conferred by other law or
8.10 charter. A joint venture under this section, and a municipal
8.11 utility with respect to any joint venture under this section,
8.12 have the powers necessary to effect the intent and purpose of
8.13 this section, including, but not limited to, the expenditure of
8.14 public funds and the transfer of real or personal property in
8.15 accordance with the terms and conditions of the joint venture
8.16 and the joint venture agreement. This section is complete in
8.17 itself with respect to the formation and operation of a joint
8.18 venture under this section and with respect to a municipal
8.19 utility, a cooperative association, or an investor-owned utility
8.20 party to a joint venture related to their creation of and
8.21 dealings with the joint venture, without regard to other laws or
8.22 city charter provisions that do not specifically address or
8.23 refer to this section or a joint venture created under this
8.24 section.
8.25 (b) This section must not be construed to supersede or
8.26 modify:
8.27 (1) the power of a city council conferred by charter to
8.28 overrule or override any action of a governing body other than
8.29 the actions of the joint venture;
8.30 (2) chapter 216B;
8.31 (3) any referendum requirements applicable to the creation
8.32 of a new electric utility by a municipality under section
8.33 216B.46 or 216B.465; or
8.34 (4) any powers, privileges, or authority or any duties or
8.35 obligations of a municipal utility, municipal power agency, or
8.36 cooperative association acting as a separate legal entity
9.1 without reference to a joint venture created under this section.
9.2 Sec. 2. [EXCEPTION.]
9.3 Laws 1996, chapter 300, section 1, as amended by Laws 1997,
9.4 chapter 232, section 1, shall govern joint ventures created
9.5 under it and those joint ventures are not governed by section 1.
9.6 Sec. 3. [EFFECTIVE DATE.]
9.7 Sections 1 and 2 are effective the day following final
9.8 enactment.
9.9 ARTICLE 3
9.10 MISCELLANEOUS
9.11 Section 1. [216B.1611] [INTERCONNECTION OF ON-SITE
9.12 DISTRIBUTED GENERATION.]
9.13 Subdivision 1. [PURPOSE.] The purpose of this section is
9.14 to: (1) establish the terms and conditions that govern the
9.15 interconnection and parallel operation of on-site distributed
9.16 generation; (2) to provide cost savings and reliability benefits
9.17 to customers; (3) to establish technical requirements that will
9.18 promote the safe and reliable parallel operation of on-site
9.19 distributed generation resources; (4) to enhance both the
9.20 reliability of electric service and economic efficiency in the
9.21 production and consumption of electricity; and (5) to promote
9.22 the use of distributed resources in order to provide electric
9.23 system benefits during periods of capacity constraints.
9.24 Subd. 2. [DISTRIBUTED GENERATION; GENERIC PROCEEDING.] (a)
9.25 The commission shall initiate a proceeding within 30 days of the
9.26 effective date of this section, to establish, by order, generic
9.27 standards for utility tariffs for the interconnection and
9.28 parallel operation of distributed generation fueled by natural
9.29 gas or a renewable fuel, or another similarly clean fuel or
9.30 combination of fuels of no more than ten megawatts of
9.31 interconnected capacity. At a minimum, these tariff standards
9.32 must:
9.33 (1) to the extent possible, be consistent with industry and
9.34 other federal and state operational and safety standards;
9.35 (2) provide for the low-cost, safe, and standardized
9.36 interconnection of facilities;
10.1 (3) take into account differing system requirements and
10.2 hardware, as well as the overall demand load requirements of
10.3 individual utilities;
10.4 (4) allow for reasonable terms and conditions, consistent
10.5 with the cost and operating characteristics of the various
10.6 technologies, so that a utility can reasonably be assured of the
10.7 reliable, safe, and efficient operation of the interconnected
10.8 equipment; and
10.9 (5) establish: (i) a standard interconnection agreement
10.10 that sets forth the contractual conditions under which a company
10.11 and a customer agree that one or more facilities may be
10.12 interconnected with the company's utility system; and (ii) a
10.13 standard application for interconnection and parallel operation
10.14 with the utility system.
10.15 (b) The commission may develop financial incentives based
10.16 on a public utility's performance in encouraging residential and
10.17 small business customers to participate in on-site generation.
10.18 Subd. 3. [DISTRIBUTED GENERATION TARIFF.] Within 90 days
10.19 of the issuance of an order under subdivision 2:
10.20 (1) each public utility providing electric service at
10.21 retail shall file a distributed generation tariff consistent
10.22 with that order, for commission approval or approval with
10.23 modification; and
10.24 (2) each municipal utility and cooperative electric
10.25 association shall adopt a distributed generation tariff that
10.26 addresses the issues included in the commission's order.
10.27 Subd. 4. [REPORTING REQUIREMENTS.] (a) Each electric
10.28 utility shall maintain records concerning applications received
10.29 for interconnection and parallel operation of distributed
10.30 generation. The records must include the date each application
10.31 is received, documents generated in the course of processing
10.32 each application, correspondence regarding each application, and
10.33 the final disposition of each application.
10.34 (b) Every electric utility shall file with the commissioner
10.35 a distributed generation interconnection report for the
10.36 preceding calendar year that identifies each distributed
11.1 generation facility interconnected with the utility's
11.2 distribution system. The report must list the new distributed
11.3 generation facilities interconnected with the system since the
11.4 previous year's report, any distributed generation facilities no
11.5 longer interconnected with the utility's system since the
11.6 previous report, the capacity of each facility, and the feeder
11.7 or other point on the company's utility system where the
11.8 facility is connected. The annual report must also identify all
11.9 applications for interconnection received during the previous
11.10 one-year period, and the disposition of the applications.
11.11 Sec. 2. [216B.79] [PREVENTATIVE MAINTENANCE.]
11.12 The commission may order public utilities to make adequate
11.13 infrastructure investments and undertake sufficient preventative
11.14 maintenance with regard to generation, transmission, and
11.15 distribution facilities.
11.16 Sec. 3. [ALTERNATIVE AND RENEWABLE ENERGY SOURCE
11.17 DEVELOPMENT.]
11.18 The legislative electric energy task force shall evaluate
11.19 options and priorities related to energy source development of
11.20 resources derived from agricultural production and to energy
11.21 options available in rural parts of the state. These energy
11.22 sources include, but are not limited to:
11.23 (1) alternative diesel engine fuels derived from soybean
11.24 and other agricultural plant oils or animal fats;
11.25 (2) ethanol derived from grains or other agricultural
11.26 products or by-products;
11.27 (3) methane or other combustible gases derived from the
11.28 processing of plant or animal wastes;
11.29 (4) biomass fuels such as short-rotation woody or fibrous
11.30 agricultural crops produced for conversion to useful energy;
11.31 (5) use of corn and corn by-products as a fuel for electric
11.32 generation, including for cogeneration facilities; and
11.33 (6) further development of the solar, wind, and biomass
11.34 energy potential in the state.
11.35 ARTICLE 4
11.36 CONSUMER PROTECTION
12.1 Section 1. Minnesota Statutes 2000, section 216B.095, is
12.2 amended to read:
12.3 216B.095 [DISCONNECTION DURING COLD WEATHER.]
12.4 The commission shall amend its rules governing
12.5 disconnection of residential utility customers who are unable to
12.6 pay for utility service during cold weather to include the
12.7 following:
12.8 (1) coverage of customers whose household income is less
12.9 than 185 percent of the federal poverty level 50 percent of the
12.10 state median income;
12.11 (2) a requirement that a customer who pays the utility at
12.12 least ten percent of the customer's income or the full amount of
12.13 the utility bill, whichever is less, in a cold weather month
12.14 cannot be disconnected during that month. The customer's income
12.15 means the actual monthly income of the customer or the average
12.16 monthly income of the customer computed on an annual calendar
12.17 year, whichever is less, and does not include any amount
12.18 received for energy assistance;
12.19 (3) that the ten percent figure in clause (2) must be
12.20 prorated between energy providers proportionate to each
12.21 provider's share of the customer's total energy costs where the
12.22 customer receives service from more than one provider;
12.23 (4) that a customer's household income does not include any
12.24 amount received for energy assistance;
12.25 (5) verification of income by the local energy assistance
12.26 provider or the utility, unless the customer is automatically
12.27 eligible for protection against disconnection as a recipient of
12.28 any form of public assistance, including energy assistance, that
12.29 uses income eligibility in an amount at or below the income
12.30 eligibility in clause (1); and
12.31 (6) (5) a requirement that the customer receive, from the
12.32 local energy assistance provider or other entity, budget
12.33 counseling and referral referrals to energy assistance,
12.34 weatherization, conservation, or other programs likely to reduce
12.35 the customer's consumption of energy bills; and
12.36 (6) a requirement that customers who have demonstrated an
13.1 inability to pay on forms provided for that purpose by the
13.2 utility, and who make reasonably timely payments to the utility
13.3 under a payment plan that considers the financial resources of
13.4 the household, cannot be disconnected from utility service from
13.5 October 15 through April 15. A customer who is receiving energy
13.6 assistance is deemed to have demonstrated an inability to pay.
13.7 For the purpose of clause (2), the "customer's income" means the
13.8 actual monthly income of the customer except for a customer who
13.9 is normally employed only on a seasonal basis and whose annual
13.10 income is over 135 percent of the federal poverty level, in
13.11 which case the customer's income is the average monthly income
13.12 of the customer computed on an annual calendar year basis.
13.13 Sec. 2. Minnesota Statutes 2000, section 216B.097,
13.14 subdivision 1, is amended to read:
13.15 Subdivision 1. [APPLICATION; NOTICE TO RESIDENTIAL
13.16 CUSTOMER.] (a) A municipal utility or a cooperative electric
13.17 association must not disconnect the utility service of a
13.18 residential customer during the period between October 15 and
13.19 April 15 if the disconnection affects the primary heat source
13.20 for the residential unit when the following conditions are met:
13.21 (1) the disconnection would occur during the period between
13.22 October 15 and April 15;
13.23 (2) the customer has declared inability to pay on forms
13.24 provided by the utility. For the purposes of this clause, a
13.25 customer that is receiving energy assistance is deemed to have
13.26 demonstrated an inability to pay;
13.27 (3) (2) the household income of the customer is less than
13.28 185 percent of the federal poverty level, as documented by the
13.29 customer to the utility; and 50 percent of the state median
13.30 income;
13.31 (3) verification of income may be conducted by the local
13.32 energy assistance provider or the utility, unless the customer
13.33 is automatically eligible for protection against disconnection
13.34 as a recipient of any form of public assistance, including
13.35 energy assistance that uses income eligibility in an amount at
13.36 or below the income eligibility in clause (2);
14.1 (4) the customer's a customer whose account is current for
14.2 the billing period immediately prior to October 15 or the
14.3 customer has entered who, at any time, enters into a payment
14.4 schedule that considers the financial resources of the household
14.5 and is reasonably current with payments under the schedule; and
14.6 (5) the customer receives referrals to energy assistance
14.7 programs, weatherization, conservation, or other programs likely
14.8 to reduce the customer's energy bills.
14.9 (b) A municipal utility or a cooperative electric
14.10 association must, between August 15 and October 15 of each year,
14.11 notify all residential customers of the provisions of this
14.12 section.
14.13 Sec. 3. [216B.098] [RESIDENTIAL CUSTOMER PROTECTIONS.]
14.14 Subdivision 1. [APPLICABILITY.] The provisions of this
14.15 section apply to residential customers of public utilities,
14.16 municipal utilities, and cooperative electric associations.
14.17 Each municipal utility and cooperative electric association may
14.18 establish terms and conditions for the plans and agreements
14.19 required under subdivisions 2 and 3.
14.20 Subd. 2. [BUDGET BILLING PLANS.] A utility shall offer a
14.21 customer a budget billing plan for payment of charges for
14.22 service, including adequate notice to customers prior to
14.23 changing budget payment amounts. Municipal utilities having
14.24 3,000 or fewer customers are exempt from this requirement.
14.25 Municipal utilities having more than 3,000 customers shall
14.26 implement this requirement within two years of the effective
14.27 date of this chapter.
14.28 Subd. 3. [PAYMENT AGREEMENTS.] A utility shall offer a
14.29 payment agreement for the payment of arrears.
14.30 Subd. 4. [UNDERCHARGES.] A utility shall offer a payment
14.31 agreement to customers who have been undercharged if no culpable
14.32 conduct by the customer or resident of the customer's household
14.33 caused the undercharge. The agreement must cover a period equal
14.34 to the time over which the undercharge occurred or a different
14.35 time period that is mutually agreeable to the customer and the
14.36 utility. No interest or delinquency fee may be charged under
15.1 this agreement.
15.2 Subd. 5. [MEDICALLY NECESSARY EQUIPMENT.] A utility shall
15.3 reconnect or continue service to a customer's residence where a
15.4 medical emergency exists or where medical equipment requiring
15.5 electricity is necessary to sustain life is in use, provided
15.6 that the utility receives from a medical doctor written
15.7 certification, or initial certification by telephone and written
15.8 certification within five business days, that failure to
15.9 reconnect or continue service will impair or threaten the health
15.10 or safety of a resident of the customer's household. The
15.11 customer must enter into a payment agreement.
15.12 Subd. 6. [COMMISSION AUTHORITY.] In addition to any other
15.13 authority, the commission has the authority to resolve customer
15.14 complaints against a public utility, as defined in section
15.15 216B.02, subdivision 4, whether or not the complaint involves a
15.16 violation of this chapter. The commission may delegate this
15.17 authority to commission staff as it deems appropriate.
15.18 Sec. 4. Minnesota Statutes 2000, section 216B.16,
15.19 subdivision 15, is amended to read:
15.20 Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The
15.21 commission may consider ability to pay as a factor in setting
15.22 utility rates and may establish programs for low-income
15.23 residential ratepayers in order to ensure affordable, reliable,
15.24 and continuous service to low-income utility customers. The
15.25 commission shall order a pilot program for at least one
15.26 utility. In ordering pilot programs, the commission shall
15.27 consider the following:
15.28 (1) the potential for low-income programs to provide
15.29 savings to the utility for all collection costs including but
15.30 not limited to: costs of disconnecting and reconnecting
15.31 residential ratepayers' service, all activities related to the
15.32 utilities' attempt to collect past due bills, utility working
15.33 capital costs, and any other administrative costs related to
15.34 inability to pay programs and initiatives;
15.35 (2) the potential for leveraging federal low-income energy
15.36 dollars to the state; and
16.1 (3) the impact of energy costs as a percentage of the total
16.2 income of a low-income residential customer.
16.3 (b) In determining the structure of the pilot utility
16.4 program, the commission shall:
16.5 (1) consult with advocates for and representatives of
16.6 low-income utility customers, administrators of energy
16.7 assistance and conservation programs, and utility
16.8 representatives;
16.9 (2) coordinate eligibility for the program with the state
16.10 and federal energy assistance program and low-income residential
16.11 energy programs, including weatherization programs; and
16.12 (3) evaluate comprehensive low-income programs offered by
16.13 utilities in other states. The purpose of the low-income
16.14 programs is to lower the percentage of income that low-income
16.15 households devote to energy bills, to increase customer
16.16 payments, and to lower the utility costs associated with
16.17 customer account collection activities. In ordering low-income
16.18 programs, the commission may require public utilities to file
16.19 program evaluations, including the coordination of other
16.20 available low-income bill payment and conservation resources and
16.21 the effect of the program on:
16.22 (1) reducing the percentage of income that participating
16.23 households devote to energy bills;
16.24 (2) service disconnections; and
16.25 (3) customer payment behavior, utility collection costs,
16.26 arrearages, and bad debt.
16.27 (c) The commission shall implement at least one pilot
16.28 project by January 1, 1995, and shall allow a utility required
16.29 to implement a pilot project to recover the net costs of the
16.30 project in the utility's rates.
16.31 (d) The commission, in conjunction with the commissioner of
16.32 the department of public service and the commissioner of
16.33 economic security, shall review low-income rate programs and
16.34 shall report to the legislature by January 1, 1998. The report
16.35 must include:
16.36 (1) the increase in federal energy assistance money
17.1 leveraged by the state as a result of this program;
17.2 (2) the effect of the program on low-income customer's
17.3 ability to pay energy costs;
17.4 (3) the effect of the program on utility customer bad debt
17.5 and arrearages;
17.6 (4) the effect of the program on the costs and numbers of
17.7 utility disconnections and reconnections and other costs
17.8 incurred by the utility in association with inability to pay
17.9 programs;
17.10 (5) the ability of the utility to recover the costs of the
17.11 low-income program without a general rate change;
17.12 (6) how other ratepayers have been affected by this
17.13 program;
17.14 (7) recommendations for continuing, eliminating, or
17.15 expanding the low-income pilot program; and
17.16 (8) how general revenue funds may be utilized in
17.17 conjunction with low-income programs.
17.18 ARTICLE 5
17.19 INCENTIVE PAYMENTS
17.20 Section 1. Minnesota Statutes 2000, section 216C.41,
17.21 subdivision 3, is amended to read:
17.22 Subd. 3. [ELIGIBILITY WINDOW.] Payments may be made under
17.23 this section only for electricity generated:
17.24 (1) from a qualified hydroelectric facility that is
17.25 operational and generating electricity before December 31,
17.26 2001 2002; or
17.27 (2) from a qualified wind energy conversion facility that
17.28 is operational and generating electricity before January 1, 2005.
17.29 Sec. 2. Minnesota Statutes 2000, section 216C.41,
17.30 subdivision 5, is amended to read:
17.31 Subd. 5. [AMOUNT OF PAYMENT.] (a) An incentive payment is
17.32 based on the number of kilowatt hours of electricity generated.
17.33 The amount of the payment is 1.5 cents per kilowatt hour. For
17.34 electricity generated by qualified wind energy conversion
17.35 facilities, the incentive payment under this section is limited
17.36 to no more than 100 megawatts of nameplate capacity. During any
18.1 period in which qualifying claims for incentive payments exceed
18.2 100 megawatts of nameplate capacity, the payments must be made
18.3 to producers in the order in which the production capacity was
18.4 brought into production.
18.5 (b) Beginning January 1, 2002, the total size of a wind
18.6 energy conversion system under this section must be determined
18.7 according to this paragraph. Unless the systems are
18.8 interconnected with different distribution systems, the
18.9 nameplate capacity of one wind energy conversion system must be
18.10 combined with the nameplate capacity of any other wind energy
18.11 conversion system that is:
18.12 (1) located within five miles of the wind energy conversion
18.13 system;
18.14 (2) constructed within the same calendar year as the wind
18.15 energy conversion system; and
18.16 (3) under common ownership.
18.17 In the case of a dispute, the commissioner of commerce shall
18.18 determine the total size of the system, and shall draw all
18.19 reasonable inferences in favor of combining the systems.
18.20 (c) In making a determination under paragraph (b), the
18.21 commissioner of commerce may determine that two wind energy
18.22 conversion systems are under common ownership when the
18.23 underlying ownership structure contains similar persons or
18.24 entities, even if the ownership shares differ between the two
18.25 systems. Wind energy conversion systems are not under common
18.26 ownership solely because the same person or entity provided
18.27 equity financing for the systems.
18.28 Sec. 3. Minnesota Statutes 2000, section 216C.41, is
18.29 amended by adding a subdivision to read:
18.30 Subd. 6. [OWNERSHIP; FINANCING; CURE.] (a) For the
18.31 purposes of subdivision 1, paragraph (c), clause (2), a wind
18.32 energy conversion facility qualifies if it is owned at least 51
18.33 percent by one or more of any combination of the entities listed
18.34 in that clause.
18.35 (b) A subsequent owner of a qualified facility may continue
18.36 to receive the incentive payment for the duration of the
19.1 original payment period if the subsequent owner qualifies for
19.2 the incentive under subdivision 1.
19.3 (c) Nothing in this section may be construed to deny
19.4 incentive payment to an otherwise qualified facility that has
19.5 obtained debt or equity financing for construction or operation
19.6 as long as the ownership requirements of subdivision 1 and this
19.7 subdivision are met. If, during the incentive payment period
19.8 for a qualified facility, the owner of the facility is in
19.9 default of a lending agreement and the lender takes possession
19.10 of and operates the facility and makes reasonable efforts to
19.11 transfer ownership of the facility to an entity other than the
19.12 lender, the lender may continue to receive the incentive payment
19.13 for electricity generated and sold by the facility for a period
19.14 not to exceed 18 months. A lender who takes possession of a
19.15 facility shall notify the commissioner immediately on taking
19.16 possession and, at least quarterly, document efforts to transfer
19.17 ownership of the facility.
19.18 (d) If, during the incentive payment period, a qualified
19.19 facility loses the right to receive the incentive because of
19.20 changes in ownership, the facility may regain the right to
19.21 receive the incentive upon cure of the ownership structure that
19.22 resulted in the loss of eligibility and may reapply for the
19.23 incentive, but in no case may the payment period be extended
19.24 beyond the original ten-year limit.
19.25 (e) A subsequent or requalifying owner under paragraph (b)
19.26 or (d) retains the facility's original priority order for
19.27 incentive payments as long as the ownership structure
19.28 requalifies within two years from the date the facility became
19.29 unqualified or two years from the date a lender takes possession.
19.30 Sec. 4. [EFFECTIVE DATE.]
19.31 This article is effective the day following final enactment.
19.32 ARTICLE 6
19.33 DISTRIBUTION RELIABILITY
19.34 Section 1. [216B.81] [STANDARDS FOR DISTRIBUTION
19.35 UTILITIES.]
19.36 Subdivision 1. [STANDARDS.] (a) The commission and each
20.1 cooperative electric association and municipal utility shall
20.2 adopt standards for safety, reliability, and service quality for
20.3 distribution utilities. Standards for cooperative electric
20.4 associations and municipal utilities should be as consistent as
20.5 possible with the commission standards.
20.6 (b) Reliability standards must be based on the system
20.7 average interruption frequency index, system average
20.8 interruption duration index, and customer average interruption
20.9 duration index measurement indices. Service quality standards
20.10 must specify, if technically and administratively feasible:
20.11 (1) average call center response time;
20.12 (2) customer disconnection rate;
20.13 (3) meter-reading frequency;
20.14 (4) complaint resolution response time;
20.15 (5) service extension request response time;
20.16 (6) recording of service and circuit interrupter data;
20.17 (7) summary reporting;
20.18 (8) historical reliability performance reporting;
20.19 (9) notices of interruptions of bulk power supply
20.20 facilities and other interruptions of power; and
20.21 (10) customer complaints.
20.22 (c) Minimum performance standards developed under this
20.23 section must treat similarly situated distribution systems
20.24 similarly and recognize differing characteristics of system
20.25 design and hardware.
20.26 (d) Electric distribution utilities shall comply with all
20.27 applicable governmental and industry standards required for the
20.28 safety, design, construction, and operation of electric
20.29 distribution facilities, including section 326.243.
20.30 Subd. 2. [DEFINITIONS.] For the purpose of this section,
20.31 the terms defined in this subdivision have the meanings given
20.32 them.
20.33 (a) The "system average interruption frequency index" is
20.34 the average number of interruptions per customer per year. It
20.35 is determined by dividing the total annual number of customer
20.36 interruptions by the average number of customers served during
21.1 the year.
21.2 (b) The "system average interruption duration index" is the
21.3 average customer-minutes of interruption per customer. It is
21.4 determined by dividing the annual sum of customer-minutes of
21.5 interruption by the average number of customers served during
21.6 the year.
21.7 (c) The "customer average interruption duration index" is
21.8 the average customer-minutes of interruption per customer
21.9 interruption. It approximates the average length of time
21.10 required to complete service restoration. It is determined by
21.11 dividing the annual sum of all customer-minutes of interruption
21.12 durations by the annual number of customer interruptions.
21.13 Sec. 2. [COST BENEFIT ANALYSIS.]
21.14 The commissioner of commerce shall provide an analysis of
21.15 the costs and benefits to consumers and utilities of the
21.16 provisions of section 216B.81, including any recommended changes
21.17 to those provisions, to the chairs of the house of
21.18 representatives and senate policy and finance committees with
21.19 jurisdiction over electric utility issues by February 1, 2003.
21.20 Sec. 3. [EFFECTIVE DATE.]
21.21 Section 1 is effective July 1, 2001. Section 2 is
21.22 effective the day following final enactment.
21.23 ARTICLE 7
21.24 SITING AND ROUTING OF
21.25 POWER PLANTS AND TRANSMISSION LINES
21.26 Section 1. Minnesota Statutes 2000, section 116C.52,
21.27 subdivision 4, is amended to read:
21.28 Subd. 4. [HIGH VOLTAGE TRANSMISSION LINE.] "High voltage
21.29 transmission line" means a conductor of electric energy and
21.30 associated facilities designed for and capable of operation at a
21.31 nominal voltage of 200 100 kilovolts or more, except that the
21.32 board, by rule, may exempt lines pursuant to section 116C.57,
21.33 subdivision 5.
21.34 Sec. 2. Minnesota Statutes 2000, section 116C.52,
21.35 subdivision 10, is amended to read:
21.36 Subd. 10. [UTILITY.] "Utility" shall mean any entity
22.1 engaged or intending to engage in this state in the generation,
22.2 transmission or distribution of electric energy including, but
22.3 not limited to, a private investor owned utility, cooperatively
22.4 owned utility, and a public or municipally owned utility.
22.5 Sec. 3. Minnesota Statutes 2000, section 116C.53,
22.6 subdivision 2, is amended to read:
22.7 Subd. 2. [JURISDICTION.] The board is hereby given the
22.8 authority to provide for site and route selection for large
22.9 electric power facilities. The board shall issue permits for
22.10 large electric power facilities in a timely fashion. When the
22.11 public utilities commission has determined the need for the
22.12 project under section 216B.243 or 216B.2425, questions of need,
22.13 including size, type, and timing; alternative system
22.14 configurations; and voltage are not within the board's siting
22.15 and routing authority and must not be included in the scope of
22.16 environmental review conducted under sections 116C.51 to 116C.69.
22.17 Sec. 4. Minnesota Statutes 2000, section 116C.53,
22.18 subdivision 3, is amended to read:
22.19 Subd. 3. [INTERSTATE ROUTES.] If a route is proposed in
22.20 two or more states, the board shall attempt to reach agreement
22.21 with affected states on the entry and exit points prior
22.22 to authorizing the construction of the designating a route. The
22.23 board, in discharge of its duties pursuant to sections 116C.51
22.24 to 116C.69 may make joint investigations, hold joint hearings
22.25 within or without the state, and issue joint or concurrent
22.26 orders in conjunction or concurrence with any official or agency
22.27 of any state or of the United States. The board may negotiate
22.28 and enter into any agreements or compacts with agencies of other
22.29 states, pursuant to any consent of Congress, for cooperative
22.30 efforts in certifying the construction, operation, and
22.31 maintenance of large electric power facilities in accord with
22.32 the purposes of sections 116C.51 to 116C.69 and for the
22.33 enforcement of the respective state laws regarding such
22.34 facilities.
22.35 Sec. 5. Minnesota Statutes 2000, section 116C.57,
22.36 subdivision 1, is amended to read:
23.1 Subdivision 1. [DESIGNATION OF SITES SUITABLE FOR SPECIFIC
23.2 FACILITIES; REPORTS SITE PERMIT.] A utility must apply to the
23.3 board in a form and manner prescribed by the board for
23.4 designation of a specific site for a specific size and type of
23.5 facility. The application shall contain at least two proposed
23.6 sites. In the event a utility proposes a site not included in
23.7 the board's inventory of study areas, the utility shall specify
23.8 the reasons for the proposal and shall make an evaluation of the
23.9 proposed site based upon the planning policies, criteria and
23.10 standards specified in the inventory. Pursuant to sections
23.11 116C.57 to 116C.60, the board shall study and evaluate any site
23.12 proposed by a utility and any other site the board deems
23.13 necessary which was proposed in a manner consistent with rules
23.14 adopted by the board concerning the form, content, and
23.15 timeliness of proposals for alternate sites. No site
23.16 designation shall be made in violation of the site selection
23.17 standards established in section 116C.55. The board shall
23.18 indicate the reasons for any refusal and indicate changes in
23.19 size or type of facility necessary to allow site designation.
23.20 Within a year after the board's acceptance of a utility's
23.21 application, the board shall decide in accordance with the
23.22 criteria specified in section 116C.55, subdivision 2, the
23.23 responsibilities, procedures and considerations specified in
23.24 section 116C.57, subdivision 4, and the considerations in
23.25 chapter 116D which proposed site is to be designated. The board
23.26 may extend for just cause the time limitation for its decision
23.27 for a period not to exceed six months. When the board
23.28 designates a site, it shall issue a certificate of site
23.29 compatibility to the utility with any appropriate conditions.
23.30 The board shall publish a notice of its decision in the State
23.31 Register within 30 days of site designation. No large electric
23.32 power generating plant shall be constructed except on a site
23.33 designated by the board. No person may construct a large
23.34 electric generating plant without a site permit from the board.
23.35 A large electric generating plant may be constructed only on a
23.36 site approved by the board. The board must incorporate into one
24.1 proceeding the route selection for a high voltage transmission
24.2 line that is directly associated with and necessary to
24.3 interconnect the large electric generating plant to the
24.4 transmission system and whose need is certified as part of the
24.5 generating plant project by the public utilities commission.
24.6 Sec. 6. Minnesota Statutes 2000, section 116C.57,
24.7 subdivision 2, is amended to read:
24.8 Subd. 2. [DESIGNATION OF ROUTES; PROCEDURE ROUTE
24.9 PERMIT.] A utility shall apply to the board in a form and manner
24.10 prescribed by the board for a permit for the construction of a
24.11 high voltage transmission line. The application shall contain
24.12 at least two proposed routes. Pursuant to sections 116C.57 to
24.13 116C.60, the board shall study, and evaluate the type, design,
24.14 routing, right-of-way preparation and facility construction of
24.15 any route proposed in a utility's application and any other
24.16 route the board deems necessary which was proposed in a manner
24.17 consistent with rules adopted by the board concerning the form,
24.18 content, and timeliness of proposals for alternate routes
24.19 provided, however, that the board shall identify the alternative
24.20 routes prior to the commencement of public hearings thereon
24.21 pursuant to section 116C.58. Within one year after the board's
24.22 acceptance of a utility's application, the board shall decide in
24.23 accordance with the criteria and standards specified in section
24.24 116C.55, subdivision 2, and the considerations specified in
24.25 section 116C.57, subdivision 4, which proposed route is to be
24.26 designated. The board may extend for just cause the time
24.27 limitation for its decision for a period not to exceed 90 days.
24.28 When the board designates a route, it shall issue a permit for
24.29 the construction of a high voltage transmission line specifying
24.30 the type, design, routing, right-of-way preparation and facility
24.31 construction it deems necessary and with any other appropriate
24.32 conditions. The board may order the construction of high
24.33 voltage transmission line facilities which are capable of
24.34 expansion in transmission capacity through multiple circuiting
24.35 or design modifications. The board shall publish a notice of
24.36 its decision in the state register within 30 days of issuance of
25.1 the permit. No high voltage transmission line shall be
25.2 constructed except on a route designated by the board, unless it
25.3 was exempted pursuant to subdivision 5. No person may construct
25.4 a high voltage transmission line without a route permit from the
25.5 board. A high voltage transmission line may be constructed only
25.6 along a route approved by the board.
25.7 Sec. 7. Minnesota Statutes 2000, section 116C.57, is
25.8 amended by adding a subdivision to read:
25.9 Subd. 2a. [APPLICATION.] Any person seeking to construct a
25.10 large electric power generating plant or a high voltage
25.11 transmission line must apply to the board for a site or route
25.12 permit. The application shall contain such information as the
25.13 board may require. The applicant shall propose at least two
25.14 sites for a large electric power generating plant and two routes
25.15 for a high voltage transmission line. The chair of the board
25.16 shall determine whether an application is complete and advise
25.17 the applicant of any deficiencies within ten days of receipt.
25.18 An application is not incomplete if information not in the
25.19 application can be obtained from the applicant during the first
25.20 phase of the process and that information is not essential for
25.21 notice and initial public meetings.
25.22 Sec. 8. Minnesota Statutes 2000, section 116C.57, is
25.23 amended by adding a subdivision to read:
25.24 Subd. 2b. [NOTICE OF APPLICATION.] Within 15 days after
25.25 submission of an application to the board, the applicant shall
25.26 publish notice of the application in a legal newspaper of
25.27 general circulation in each county in which the site or route is
25.28 proposed and send a copy of the application by certified mail to
25.29 any regional development commission, county, incorporated
25.30 municipality, and township in which any part of the site or
25.31 route is proposed. Within the same 15 days, the applicant shall
25.32 also send a notice of the submission of the application and
25.33 description of the proposed project to each owner whose property
25.34 is on or adjacent to any of the proposed sites for the power
25.35 plant or along any of the proposed routes for the transmission
25.36 line. The notice shall identify a location where a copy of the
26.1 application can be reviewed. For the purpose of giving mailed
26.2 notice under this subdivision, owners shall be those shown on
26.3 the records of the county auditor or, in any county where tax
26.4 statements are mailed by the county treasurer, on the records of
26.5 the county treasurer; but other appropriate records may be used
26.6 for this purpose. The failure to give mailed notice to a
26.7 property owner, or defects in the notice, shall not invalidate
26.8 the proceedings, provided a bona fide attempt to comply with
26.9 this subdivision has been made. Within the same 15 days, the
26.10 applicant shall also send the same notice of the submission of
26.11 the application and description of the proposed project to those
26.12 persons who have requested to be placed on a list maintained by
26.13 the board for receiving notice of proposed large electric
26.14 generating power plants and high voltage transmission lines.
26.15 Sec. 9. Minnesota Statutes 2000, section 116C.57, is
26.16 amended by adding a subdivision to read:
26.17 Subd. 2c. [ENVIRONMENTAL REVIEW.] The board shall prepare
26.18 an environmental impact statement on each proposed large
26.19 electric generating plant or high voltage transmission line for
26.20 which a complete application has been submitted. For any
26.21 project that has obtained a certificate of need from the public
26.22 utilities commission, the board shall not consider whether or
26.23 not the project is needed. No other state environmental review
26.24 documents shall be required. The board shall study and evaluate
26.25 any site or route proposed by an applicant and any other site or
26.26 route the board deems necessary that was proposed in a manner
26.27 consistent with rules adopted by the board concerning the form,
26.28 content, and timeliness of proposals for alternate sites or
26.29 routes.
26.30 Sec. 10. Minnesota Statutes 2000, section 116C.57, is
26.31 amended by adding a subdivision to read:
26.32 Subd. 2d. [PUBLIC HEARING.] The board shall hold a public
26.33 hearing on an application for a site permit for a large electric
26.34 power generating plant or a route permit for a high voltage
26.35 transmission line. All hearings held for designating a site or
26.36 route shall be conducted by an administrative law judge from the
27.1 office of administrative hearings pursuant to the contested case
27.2 procedures of chapter 14. Notice of the hearing shall be given
27.3 by the board at least ten days in advance but no earlier than 45
27.4 days prior to the commencement of the hearing. Notice shall be
27.5 by publication in a legal newspaper of general circulation in
27.6 the county in which the public hearing is to be held and by
27.7 certified mail to chief executives of the regional development
27.8 commissions, counties, organized towns, townships, and the
27.9 incorporated municipalities in which a site or route is
27.10 proposed. Any person may appear at the hearings and offer
27.11 testimony and exhibits without the necessity of intervening as a
27.12 formal party to the proceedings. The administrative law judge
27.13 may allow any person to ask questions of other witnesses. The
27.14 administrative law judge shall hold a portion of the hearing in
27.15 the area where the power plant or transmission line is proposed
27.16 to be located.
27.17 Sec. 11. Minnesota Statutes 2000, section 116C.57,
27.18 subdivision 4, is amended to read:
27.19 Subd. 4. [CONSIDERATIONS IN DESIGNATING SITES AND ROUTES.]
27.20 The board's site and route permit determinations must be guided
27.21 by the state's goals to conserve resources, minimize
27.22 environmental impacts, minimize human settlement and other land
27.23 use conflicts, and ensure the state's electric energy security
27.24 through efficient, cost-effective power supply and electric
27.25 transmission infrastructure. To facilitate the study, research,
27.26 evaluation and designation of sites and routes, the board shall
27.27 be guided by, but not limited to, the
27.28 following responsibilities, procedures, and considerations:
27.29 (1) Evaluation of research and investigations relating to
27.30 the effects on land, water and air resources of large electric
27.31 power generating plants and high voltage transmission line
27.32 routes lines and the effects of water and air discharges and
27.33 electric and magnetic fields resulting from such facilities on
27.34 public health and welfare, vegetation, animals, materials and
27.35 aesthetic values, including base line studies, predictive
27.36 modeling, and monitoring of the water and air mass at proposed
28.1 and operating sites and routes, evaluation of new or improved
28.2 methods for minimizing adverse impacts of water and air
28.3 discharges and other matters pertaining to the effects of power
28.4 plants on the water and air environment;
28.5 (2) Environmental evaluation of sites and routes proposed
28.6 for future development and expansion and their relationship to
28.7 the land, water, air and human resources of the state;
28.8 (3) Evaluation of the effects of new electric power
28.9 generation and transmission technologies and systems related to
28.10 power plants designed to minimize adverse environmental effects;
28.11 (4) Evaluation of the potential for beneficial uses of
28.12 waste energy from proposed large electric power generating
28.13 plants;
28.14 (5) Analysis of the direct and indirect economic impact of
28.15 proposed sites and routes including, but not limited to,
28.16 productive agricultural land lost or impaired;
28.17 (6) Evaluation of adverse direct and indirect environmental
28.18 effects which that cannot be avoided should the proposed site
28.19 and route be accepted;
28.20 (7) Evaluation of alternatives to the applicant's proposed
28.21 site or route proposed pursuant to subdivisions 1 and 2;
28.22 (8) Evaluation of potential routes which that would use or
28.23 parallel existing railroad and highway rights-of-way;
28.24 (9) Evaluation of governmental survey lines and other
28.25 natural division lines of agricultural land so as to minimize
28.26 interference with agricultural operations;
28.27 (10) Evaluation of the future needs for additional high
28.28 voltage transmission lines in the same general area as any
28.29 proposed route, and the advisability of ordering the
28.30 construction of structures capable of expansion in transmission
28.31 capacity through multiple circuiting or design modifications;
28.32 (11) Evaluation of irreversible and irretrievable
28.33 commitments of resources should the proposed site or route be
28.34 approved; and
28.35 (12) Where When appropriate, consideration of problems
28.36 raised by other state and federal agencies and local entities.
29.1 (13) If the board's rules are substantially similar to
29.2 existing rules and regulations of a federal agency to which the
29.3 utility in the state is subject, the federal rules and
29.4 regulations shall must be applied by the board.
29.5 (14) No site or route shall be designated which violates
29.6 state agency rules.
29.7 Sec. 12. Minnesota Statutes 2000, section 116C.57, is
29.8 amended by adding a subdivision to read:
29.9 Subd. 7. [TIMING.] The board shall make a final decision
29.10 on an application within 60 days after receipt of the report of
29.11 the administrative law judge. A final decision on the request
29.12 for a site permit or route permit shall be made within one year
29.13 after the chair's determination that an application is
29.14 complete. The board may extend this time limit for up to three
29.15 months for just cause or upon agreement of the applicant.
29.16 Sec. 13. Minnesota Statutes 2000, section 116C.57, is
29.17 amended by adding a subdivision to read:
29.18 Subd. 8. [FINAL DECISION.] (a) No site permit shall be
29.19 issued in violation of the site selection standards and criteria
29.20 established in this section and in rules adopted by the board.
29.21 When the board designates a site, it shall issue a site permit
29.22 to the applicant with any appropriate conditions. The board
29.23 shall publish a notice of its decision in the State Register
29.24 within 30 days of issuance of the site permit.
29.25 (b) No route permit shall be issued in violation of the
29.26 route selection standards and criteria established in this
29.27 section and in rules adopted by the board. When the board
29.28 designates a route, it shall issue a permit for the construction
29.29 of a high voltage transmission line specifying the design,
29.30 routing, right-of-way preparation, and facility construction it
29.31 deems necessary, and with any other appropriate conditions. The
29.32 board may order the construction of high voltage transmission
29.33 line facilities that are capable of expansion in transmission
29.34 capacity through multiple circuiting or design modifications.
29.35 The board shall publish a notice of its decision in the State
29.36 Register within 30 days of issuance of the permit.
30.1 Sec. 14. [116C.575] [ALTERNATIVE REVIEW OF APPLICATIONS.]
30.2 Subdivision 1. [ALTERNATIVE REVIEW.] An applicant who
30.3 seeks a site permit or route permit for one of the projects
30.4 identified in this section shall have the option of following
30.5 the procedures in this section rather than the procedures in
30.6 section 116C.57. The applicant shall notify the chair at the
30.7 time the application is submitted which procedure the applicant
30.8 chooses to follow.
30.9 Subd. 2. [APPLICABLE PROJECTS.] The requirements and
30.10 procedures in this section apply to the following projects:
30.11 (1) large electric power generating plants with a capacity
30.12 of less than 80 megawatts;
30.13 (2) large electric power generating plants that are fueled
30.14 by natural gas;
30.15 (3) high voltage transmission lines of between 100 and 200
30.16 kilovolts;
30.17 (4) high voltage transmission lines in excess of 200
30.18 kilovolts and less than five miles in length in Minnesota;
30.19 (5) high voltage transmission lines in excess of 200
30.20 kilovolts if at least 80 percent of the distance of the line in
30.21 Minnesota will be located along existing high voltage
30.22 transmission line right-of-way;
30.23 (6) a high voltage transmission line service extension to a
30.24 single customer between 200 and 300 kilovolts and less than ten
30.25 miles in length; and
30.26 (7) a high voltage transmission line rerouting to serve the
30.27 demand of a single customer when the rerouted line will be
30.28 located at least 80 percent on property owned or controlled by
30.29 the customer or the owner of the transmission line.
30.30 Subd. 3. [APPLICATION.] The applicant for a site or route
30.31 permit for any of the projects listed in subdivision 2 who
30.32 chooses to follow these procedures shall submit information as
30.33 the board may require, but the applicant shall not be required
30.34 to propose a second site or route for the project. The
30.35 applicant shall identify in the application any other sites or
30.36 routes that were rejected by the applicant and the board may
31.1 identify additional sites or routes to consider during the
31.2 processing of the application. The chair of the board shall
31.3 determine whether an application is complete and advise the
31.4 applicant of any deficiencies.
31.5 Subd. 4. [NOTICE OF APPLICATION.] Upon submission of an
31.6 application under this section, the applicant shall provide the
31.7 same notice as required by section 116C.57, subdivision 2b.
31.8 Subd. 5. [ENVIRONMENTAL REVIEW.] For the projects
31.9 identified in subdivision 2 and following these procedures, the
31.10 board shall prepare an environmental assessment. The
31.11 environmental assessment shall contain information on the human
31.12 and environmental impacts of the proposed project and other
31.13 sites or routes identified by the board and shall address
31.14 mitigating measures for all of the sites or routes considered.
31.15 The environmental assessment shall be the only state
31.16 environmental review document required to be prepared on the
31.17 project.
31.18 Subd. 6. [PUBLIC HEARING.] The board shall hold a public
31.19 hearing in the area where the facility is proposed to be
31.20 located. The board shall give notice of the public hearing in
31.21 the same manner as notice under section 116C.57, subdivision
31.22 2d. The board shall conduct the public hearing under procedures
31.23 established by the board. The applicant shall be present at the
31.24 hearing to present evidence and to answer questions. The board
31.25 shall provide opportunity at the public hearing for any person
31.26 to present comments and to ask questions of the applicant and
31.27 board staff. The board shall also afford interested persons an
31.28 opportunity to submit written comments into the record.
31.29 Subd. 7. [TIMING.] The board shall make a final decision
31.30 on an application within 60 days after completion of the public
31.31 hearing. A final decision on the request for a site permit or
31.32 route permit under this section shall be made within six months
31.33 after the chair's determination that an application is
31.34 complete. The board may extend this time limit for up to three
31.35 months for just cause or upon agreement of the applicant.
31.36 Subd. 8. [CONSIDERATIONS.] The considerations in section
32.1 116C.57, subdivision 4, shall apply to any projects subject to
32.2 this section.
32.3 Subd. 9. [FINAL DECISION.] (a) No site permit shall be
32.4 issued in violation of the site selection standards and criteria
32.5 established in this section and in rules adopted by the board.
32.6 When the board designates a site, it shall issue a site permit
32.7 to the applicant with any appropriate conditions. The board
32.8 shall publish a notice of its decision in the State Register
32.9 within 30 days of issuance of the site permit.
32.10 (b) No route designation shall be made in violation of the
32.11 route selection standards and criteria established in this
32.12 section and in rules adopted by the board. When the board
32.13 designates a route, it shall issue a permit for the construction
32.14 of a high voltage transmission line specifying the design,
32.15 routing, right-of-way preparation, and facility construction it
32.16 deems necessary and with any other appropriate conditions. The
32.17 board may order the construction of high voltage transmission
32.18 line facilities that are capable of expansion in transmission
32.19 capacity through multiple circuiting or design modifications.
32.20 The board shall publish a notice of its decision in the State
32.21 Register within 30 days of issuance of the permit.
32.22 Sec. 15. [116C.576] [LOCAL REVIEW OF APPLICATIONS.]
32.23 Subdivision 1. [LOCAL REVIEW.] (a) Notwithstanding the
32.24 requirements of sections 116C.57 and 116C.575, an applicant who
32.25 seeks a site or route permit for one of the projects identified
32.26 in this section shall have the option of applying to those local
32.27 units of government that have jurisdiction over the site or
32.28 route for approval to build the project. If local approval is
32.29 granted, a site or route permit is not required from the board.
32.30 If the applicant files an application with the board, the
32.31 applicant shall be deemed to have waived its right to seek local
32.32 approval of the project.
32.33 (b) A local unit of government with jurisdiction over a
32.34 project identified in this section to whom an applicant has
32.35 applied for approval to build the project may request the board
32.36 to assume jurisdiction and make a decision on a site or route
33.1 permit under the applicable provisions of sections 116C.52 to
33.2 116C.69. A local unit of government must file the request with
33.3 the board within 60 days after an application for the project
33.4 has been filed with any one local unit of government. If one of
33.5 the local units of government with jurisdiction over the project
33.6 requests the board to assume jurisdiction, jurisdiction over the
33.7 project transfers to the board. If the local units of
33.8 government maintain jurisdiction over the project, the board
33.9 shall select the appropriate local unit of government to be the
33.10 responsible governmental unit to conduct environmental review of
33.11 the project.
33.12 Subd. 2. [APPLICABLE PROJECTS.] Applicants may seek
33.13 approval from local units of government to construct the
33.14 following projects:
33.15 (1) large electric power generating plants with a capacity
33.16 of less than 80 megawatts;
33.17 (2) large electric power generating plants of any size that
33.18 burn natural gas and are intended to be a peaking plant;
33.19 (3) high voltage transmission lines of between 100 and 200
33.20 kilovolts;
33.21 (4) substations with a voltage designed for and capable of
33.22 operation at a nominal voltage of 100 kilovolts or more;
33.23 (5) a high voltage transmission line service extension to a
33.24 single customer between 200 and 300 kilovolts and less than ten
33.25 miles in length; and
33.26 (6) a high voltage transmission line rerouting to serve the
33.27 demand of a single customer when the rerouted line will be
33.28 located at least 80 percent on property owned or controlled by
33.29 the customer or the owner of the transmission line.
33.30 Subd. 3. [NOTICE OF APPLICATION.] Within ten days of
33.31 submission of an application to a local unit of government for
33.32 approval of an eligible project, the applicant shall notify the
33.33 board that the applicant has elected to seek local approval of
33.34 the proposed project.
33.35 Sec. 16. [116C.577] [EMERGENCY PERMIT.]
33.36 (a) Any utility whose electric power system requires the
34.1 immediate construction of a large electric power generating
34.2 plant or high voltage transmission line due to a major
34.3 unforeseen event may apply to the board for an emergency permit
34.4 after providing notice in writing to the public utilities
34.5 commission of the major unforeseen event and the need for
34.6 immediate construction. The permit must be issued in a timely
34.7 manner, no later than 195 days after the board's acceptance of
34.8 the application and upon a finding by the board that (1) a
34.9 demonstrable emergency exists, (2) the emergency requires
34.10 immediate construction, and (3) adherence to the procedures and
34.11 time schedules specified in section 116C.57 would jeopardize the
34.12 utility's electric power system or would jeopardize the
34.13 utility's ability to meet the electric needs of its customers in
34.14 an orderly and timely manner.
34.15 (b) A public hearing to determine if an emergency exists
34.16 must be held within 90 days of the application. The board,
34.17 after notice and hearing, shall adopt rules specifying the
34.18 criteria for emergency certification.
34.19 Sec. 17. Minnesota Statutes 2000, section 116C.58, is
34.20 amended to read:
34.21 116C.58 [PUBLIC HEARINGS; NOTICE ANNUAL HEARING.]
34.22 The board shall hold an annual public hearing at a time and
34.23 place prescribed by rule in order to afford interested persons
34.24 an opportunity to be heard regarding its inventory of study
34.25 areas and any other aspects of the board's activities and duties
34.26 or policies specified in sections 116C.51 to 116C.69. The board
34.27 shall hold at least one public hearing in each county where a
34.28 site or route is being considered for designation pursuant to
34.29 section 116C.57. Notice and agenda of public hearings and
34.30 public meetings of the board held in each county shall be given
34.31 by the board at least ten days in advance but no earlier than 45
34.32 days prior to such hearings or meetings. Notice shall be by
34.33 publication in a legal newspaper of general circulation in the
34.34 county in which the public hearing or public meeting is to be
34.35 held and by certified mailed notice to chief executives of the
34.36 regional development commissions, counties, organized towns and
35.1 the incorporated municipalities in which a site or route is
35.2 proposed. All hearings held for designating a site or route or
35.3 for exempting a route shall be conducted by an administrative
35.4 law judge from the office of administrative hearings pursuant to
35.5 the contested case procedures of chapter 14. Any person may
35.6 appear at the hearings and present testimony and exhibits and
35.7 may question witnesses without the necessity of intervening as a
35.8 formal party to the proceedings any matters relating to the
35.9 siting of large electric generating power plants and routing of
35.10 high voltage transmission lines. At the meeting, the board
35.11 shall advise the public of the permits issued by the board in
35.12 the past year. The board shall provide at least ten days but no
35.13 more than 45 days' notice of the annual meeting by mailing
35.14 notice to those persons who have requested notice and by
35.15 publication in the EQB Monitor.
35.16 Sec. 18. Minnesota Statutes 2000, section 116C.59,
35.17 subdivision 1, is amended to read:
35.18 Subdivision 1. [ADVISORY TASK FORCE.] The board may
35.19 appoint one or more advisory task forces to assist it in
35.20 carrying out its duties. Task forces appointed to evaluate
35.21 sites or routes considered for designation shall be comprised of
35.22 as many persons as may be designated by the board, but at least
35.23 one representative from each of the following: Regional
35.24 development commissions, counties and municipal corporations and
35.25 one town board member from each county in which a site or route
35.26 is proposed to be located. No officer, agent, or employee of a
35.27 utility shall serve on an advisory task force. Reimbursement
35.28 for expenses incurred shall be made pursuant to the rules
35.29 governing state employees. The task forces expire as provided
35.30 in section 15.059, subdivision 6. At the time the task force is
35.31 appointed, the board shall specify the charge to the task
35.32 force. The task force shall expire upon completion of its
35.33 charge, upon designation by the board of alternative sites or
35.34 routes to be included in the environmental impact statement, or
35.35 upon the specific date identified by the board in the charge,
35.36 whichever occurs first.
36.1 Sec. 19. Minnesota Statutes 2000, section 116C.59,
36.2 subdivision 4, is amended to read:
36.3 Subd. 4. [SCIENTIFIC ADVISORY TASK FORCE.] The board may
36.4 appoint one or more advisory task forces composed of technical
36.5 and scientific experts to conduct research and make
36.6 recommendations concerning generic issues such as health and
36.7 safety, underground routes, double circuiting and long-range
36.8 route and site planning. Reimbursement for expenses incurred
36.9 shall be made pursuant to the rules governing reimbursement of
36.10 state employees. The task forces expire as provided in section
36.11 15.059, subdivision 6. The time allowed for completion of a
36.12 specific site or route procedure may not be extended to await
36.13 the outcome of these generic investigations.
36.14 Sec. 20. Minnesota Statutes 2000, section 116C.60, is
36.15 amended to read:
36.16 116C.60 [PUBLIC MEETINGS; TRANSCRIPT OF PROCEEDINGS;
36.17 WRITTEN RECORDS.]
36.18 Meetings of the board, including hearings, shall be open to
36.19 the public. Minutes shall be kept of board meetings and a
36.20 complete record of public hearings shall be kept. All books,
36.21 records, files, and correspondence of the board shall be
36.22 available for public inspection at any reasonable time. The
36.23 council board shall also be subject to chapter 13D.
36.24 Sec. 21. Minnesota Statutes 2000, section 116C.61,
36.25 subdivision 1, is amended to read:
36.26 Subdivision 1. [REGIONAL, COUNTY AND LOCAL ORDINANCES,
36.27 RULES, REGULATIONS; PRIMARY RESPONSIBILITY AND REGULATION OF
36.28 SITE DESIGNATION, IMPROVEMENT AND USE.] To assure the paramount
36.29 and controlling effect of the provisions herein over other state
36.30 agencies, regional, county and local governments, and special
36.31 purpose government districts, the issuance of a certificate of
36.32 site permit compatibility or transmission line
36.33 construction route permit and subsequent purchase and use of
36.34 such site or route locations for large electric power generating
36.35 plant and high voltage transmission line purposes shall be the
36.36 sole site or route approval required to be obtained by the
37.1 utility. Such certificate or permit shall supersede and preempt
37.2 all zoning, building, or land use rules, regulations, or
37.3 ordinances promulgated by regional, county, local and special
37.4 purpose government.
37.5 Sec. 22. Minnesota Statutes 2000, section 116C.61,
37.6 subdivision 3, is amended to read:
37.7 Subd. 3. [STATE AGENCY PARTICIPATION.] State agencies
37.8 authorized to issue permits required for construction or
37.9 operation of large electric power generating plants or high
37.10 voltage transmission lines shall participate in and present the
37.11 position of the agency during routing and siting at public
37.12 hearings and all other activities of the board on specific site
37.13 or route designations and design considerations of the board,
37.14 which position and shall clearly state whether the site or route
37.15 being considered for designation or permit and other design
37.16 matters under consideration for approval for a certain size and
37.17 type of facility will be in compliance with state agency
37.18 standards, rules or policies.
37.19 Sec. 23. Minnesota Statutes 2000, section 116C.62, is
37.20 amended to read:
37.21 116C.62 [IMPROVEMENT OF SITES AND ROUTES.]
37.22 Utilities which that have acquired a site or route in
37.23 accordance with sections 116C.51 to 116C.69 may proceed to
37.24 construct or improve the site or route for the intended purposes
37.25 at any time, subject to section 116C.61, subdivision 2, provided
37.26 that if the construction and improvement commences more than has
37.27 not commenced within four years after a certificate or permit
37.28 for the site or route has been issued, then the utility must
37.29 certify to the board that the site or route continues to meet
37.30 the conditions upon which the certificate of site compatibility
37.31 or transmission line construction or route permit was issued.
37.32 Sec. 24. Minnesota Statutes 2000, section 116C.64, is
37.33 amended to read:
37.34 116C.64 [FAILURE TO ACT.]
37.35 If the board fails to act within the times specified in
37.36 section 116C.57, the applicant or any affected utility person
38.1 may seek an order of the district court requiring the board to
38.2 designate or refuse to designate a site or route.
38.3 Sec. 25. Minnesota Statutes 2000, section 116C.645, is
38.4 amended to read:
38.5 116C.645 [REVOCATION OR SUSPENSION.]
38.6 A site certificate or construction route permit may be
38.7 revoked or suspended by the board after adequate notice of the
38.8 alleged grounds for revocation or suspension and a full and fair
38.9 hearing in which the affected utility has an opportunity to
38.10 confront any witness and respond to any evidence against it and
38.11 to present rebuttal or mitigating evidence upon a finding by the
38.12 board of:
38.13 (1) Any false statement knowingly made in the application
38.14 or in accompanying statements or studies required of the
38.15 applicant, if a true statement would have warranted a change in
38.16 the board's findings;
38.17 (2) Failure to comply with material conditions of the site
38.18 certificate or construction permit, or failure to maintain
38.19 health and safety standards; or
38.20 (3) Any material violation of the provisions of sections
38.21 116C.51 to 116C.69, any rule promulgated pursuant thereto, or
38.22 any order of the board.
38.23 Sec. 26. Minnesota Statutes 2000, section 116C.65, is
38.24 amended to read:
38.25 116C.65 [JUDICIAL REVIEW.]
38.26 Any utility applicant, party or person aggrieved by the
38.27 issuance of a certificate site or route permit or emergency
38.28 certificate of site compatibility or transmission line
38.29 construction permit from the board or a certification of
38.30 continuing suitability filed by a utility with the board or by a
38.31 final order in accordance with any rules promulgated by the
38.32 board, may appeal to the court of appeals in accordance with
38.33 chapter 14. The appeal shall be filed within 60 30 days after
38.34 the publication in the State Register of notice of the issuance
38.35 of the certificate or permit by the board or certification filed
38.36 with the board or the filing of any final order by the board.
39.1 Sec. 27. Minnesota Statutes 2000, section 116C.66, is
39.2 amended to read:
39.3 116C.66 [RULES.]
39.4 The board, in order to give effect to the purposes of
39.5 sections 116C.51 to 116C.69, shall prior to July 1, 1978, may
39.6 adopt rules consistent with sections 116C.51 to 116C.69,
39.7 including promulgation of site and route designation criteria,
39.8 the description of the information to be furnished by the
39.9 utilities, establishment of minimum guidelines for public
39.10 participation in the development, revision, and enforcement of
39.11 any rule, plan or program established by the board, procedures
39.12 for the revocation or suspension of a construction site or route
39.13 permit or a certificate of site compatibility, and the procedure
39.14 and timeliness for proposing alternative routes and sites, and
39.15 route exemption criteria and procedures. No rule adopted by the
39.16 board shall grant priority to state-owned wildlife management
39.17 areas over agricultural lands in the designation of route
39.18 avoidance areas. The provisions of chapter 14 shall apply to
39.19 the appeal of rules adopted by the board to the same extent as
39.20 it applies to review of rules adopted by any other agency of
39.21 state government.
39.22 The chief administrative law judge shall, prior to January
39.23 1, 1978, adopt procedural rules for public hearings relating to
39.24 the site and route designation permit process and to the route
39.25 exemption process. The rules shall attempt to maximize citizen
39.26 participation in these processes consistent with the time limits
39.27 for board decision established in sections 116C.57, subdivision
39.28 8, and 116C.575, subdivision 7.
39.29 Sec. 28. Minnesota Statutes 2000, section 116C.69, is
39.30 amended to read:
39.31 116C.69 [BIENNIAL REPORT; APPLICATION FEES; APPROPRIATION;
39.32 FUNDING.]
39.33 Subdivision 1. [BIENNIAL REPORT.] Before November 15 of
39.34 each even-numbered year the board shall prepare and submit to
39.35 the legislature a report of its operations, activities, findings
39.36 and recommendations concerning sections 116C.51 to 116C.69. The
40.1 report shall also contain information on the board's biennial
40.2 expenditures, its proposed budget for the following biennium,
40.3 and the amounts paid in certificate and permit application fees
40.4 pursuant to subdivisions 2 and 2a and in assessments pursuant to
40.5 subdivision 3 this section. The proposed budget for the
40.6 following biennium shall be subject to legislative review.
40.7 Subd. 2. [SITE APPLICATION FEE.] Every applicant for a
40.8 site certificate permit shall pay to the board a fee in an
40.9 amount equal to $500 for each $1,000,000 of production plant
40.10 investment in the proposed installation as defined in the
40.11 Federal Power Commission Uniform System of Accounts. The board
40.12 shall specify the time and manner of payment of the fee. If any
40.13 single payment requested by the board is in excess of 25 percent
40.14 of the total estimated fee, the board shall show that the excess
40.15 is reasonably necessary. The applicant shall pay within 30 days
40.16 of notification any additional fees reasonably necessary for
40.17 completion of the site evaluation and designation process by the
40.18 board. In no event shall the total fees required of the
40.19 applicant under this subdivision exceed an amount equal to 0.001
40.20 of said production plant investment ($1,000 for each
40.21 $1,000,000). All money received pursuant to this subdivision
40.22 shall be deposited in a special account. Money in the account
40.23 is appropriated to the board to pay expenses incurred in
40.24 processing applications for certificates site permits in
40.25 accordance with sections 116C.51 to 116C.69 and in the event the
40.26 expenses are less than the fee paid, to refund the excess to the
40.27 applicant.
40.28 Subd. 2a. [ROUTE APPLICATION FEE.] Every applicant for a
40.29 transmission line construction route permit shall pay to the
40.30 board a base fee of $35,000 plus a fee in an amount equal to
40.31 $1,000 per mile length of the longest proposed route. The board
40.32 shall specify the time and manner of payment of the fee. If any
40.33 single payment requested by the board is in excess of 25 percent
40.34 of the total estimated fee, the board shall show that the excess
40.35 is reasonably necessary. In the event the actual cost of
40.36 processing an application up to the board's final decision to
41.1 designate a route exceeds the above fee schedule, the board may
41.2 assess the applicant any additional fees necessary to cover the
41.3 actual costs, not to exceed an amount equal to $500 per mile
41.4 length of the longest proposed route. All money received
41.5 pursuant to this subdivision shall be deposited in a special
41.6 account. Money in the account is appropriated to the board to
41.7 pay expenses incurred in processing applications for
41.8 construction route permits in accordance with sections 116C.51
41.9 to 116C.69 and in the event the expenses are less than the fee
41.10 paid, to refund the excess to the applicant.
41.11 Subd. 3. [FUNDING; ASSESSMENT.] The board shall finance
41.12 its base line studies, general environmental studies,
41.13 development of criteria, inventory preparation, monitoring of
41.14 conditions placed on site certificates and construction route
41.15 permits, and all other work, other than specific site and route
41.16 designation, from an assessment made quarterly, at least 30 days
41.17 before the start of each quarter, by the board against all
41.18 utilities with annual retail kilowatt-hour sales greater than
41.19 4,000,000 kilowatt-hours in the previous calendar year.
41.20 Each share shall be determined as follows: (1) the ratio
41.21 that the annual retail kilowatt-hour sales in the state of each
41.22 utility bears to the annual total retail kilowatt-hour sales in
41.23 the state of all these utilities, multiplied by 0.667, plus (2)
41.24 the ratio that the annual gross revenue from retail
41.25 kilowatt-hour sales in the state of each utility bears to the
41.26 annual total gross revenues from retail kilowatt-hour sales in
41.27 the state of all these utilities, multiplied by 0.333, as
41.28 determined by the board. The assessment shall be credited to
41.29 the special revenue fund and shall be paid to the state treasury
41.30 within 30 days after receipt of the bill, which shall constitute
41.31 notice of said assessment and demand of payment thereof. The
41.32 total amount which may be assessed to the several utilities
41.33 under authority of this subdivision shall not exceed the sum of
41.34 the annual budget of the board for carrying out the purposes of
41.35 this subdivision. The assessment for the second quarter of each
41.36 fiscal year shall be adjusted to compensate for the amount by
42.1 which actual expenditures by the board for the preceding fiscal
42.2 year were more or less than the estimated expenditures
42.3 previously assessed.
42.4 Sec. 29. Minnesota Statutes 2000, section 216B.2421,
42.5 subdivision 2, is amended to read:
42.6 Subd. 2. [LARGE ENERGY FACILITY.] "Large energy facility"
42.7 means:
42.8 (1) any electric power generating plant or combination of
42.9 plants at a single site with a combined capacity of 80,000
42.10 kilowatts or more, or any facility of 50,000 kilowatts or more
42.11 which requires oil, natural gas, or natural gas liquids as a
42.12 fuel and for which an installation permit has not been applied
42.13 for by May 19, 1977 pursuant to Minn. Reg. APC 3(a) and
42.14 transmission lines directly associated with the plant that are
42.15 necessary to interconnect the plant to the transmission system;
42.16 (2) any high voltage transmission line with a capacity of
42.17 200 kilovolts or more and with more than 50 miles of its length
42.18 in Minnesota; or,
42.19 (3) any high voltage transmission line with a capacity of
42.20 300 100 kilovolts or more with more than 25 ten miles of its
42.21 length in Minnesota or that crosses a state line;
42.22 (3) (4) any pipeline greater than six inches in diameter
42.23 and having more than 50 miles of its length in Minnesota used
42.24 for the transportation of coal, crude petroleum or petroleum
42.25 fuels or oil or their derivatives;
42.26 (4) (5) any pipeline for transporting natural or synthetic
42.27 gas at pressures in excess of 200 pounds per square inch with
42.28 more than 50 miles of its length in Minnesota;
42.29 (5) (6) any facility designed for or capable of storing on
42.30 a single site more than 100,000 gallons of liquefied natural gas
42.31 or synthetic gas;
42.32 (6) (7) any underground gas storage facility requiring
42.33 permit pursuant to section 103I.681;
42.34 (7) (8) any nuclear fuel processing or nuclear waste
42.35 storage or disposal facility; and
42.36 (8) (9) any facility intended to convert any material into
43.1 any other combustible fuel and having the capacity to process in
43.2 excess of 75 tons of the material per hour.
43.3 Sec. 30. [216B.2425] [STATE TRANSMISSION PLAN.]
43.4 Subdivision 1. [LIST.] The commission shall maintain a
43.5 list of certified high voltage transmission line projects.
43.6 Subd. 2. [LIST DEVELOPMENT.] (a) By November 1 of each
43.7 odd-numbered year, each public utility, municipal utility, and
43.8 cooperative electric association, or the generation and
43.9 transmission organization that serves each utility or
43.10 association, that owns or operates electric transmission lines
43.11 in Minnesota shall jointly or individually submit a transmission
43.12 projects report to the commission. The report must:
43.13 (1) list specific present and reasonably foreseeable future
43.14 inadequacies in the transmission system in Minnesota;
43.15 (2) identify alternative means of addressing each
43.16 inadequacy listed;
43.17 (3) identify general economic, environmental, and social
43.18 issues associated with each alternative; and
43.19 (4) provide a summary of public input the utilities and
43.20 associations have gathered related to the list of inadequacies
43.21 and the role of local government officials and other interested
43.22 persons in assisting to develop the list and analyze
43.23 alternatives.
43.24 (b) To meet the requirements of this subdivision, entities
43.25 may rely on available information and analysis developed by a
43.26 regional transmission organization or any subgroup of a regional
43.27 transmission organization and may develop and include additional
43.28 information as necessary.
43.29 Subd. 3. [COMMISSION APPROVAL.] By June 1 of each
43.30 even-numbered year, the commission shall adopt a state
43.31 transmission project list and shall certify, certify as
43.32 modified, or deny certification of the projects proposed under
43.33 subdivision 2. The commission may only certify a project that
43.34 is a high voltage transmission line as defined in section
43.35 216B.2421, subdivision 2, that the commission finds is:
43.36 (1) necessary to maintain or enhance the reliability of
44.1 electric service to Minnesota consumers;
44.2 (2) needed, applying the criteria in section 216B.241,
44.3 subdivision 3; and
44.4 (3) in the public interest, taking into account electric
44.5 energy system needs and economic, environmental, and social
44.6 interests affected by the project.
44.7 Subd. 4. [LIST; EFFECT.] Certification of a project as a
44.8 priority electric transmission project satisfies section
44.9 216B.243. A certified project on which construction has not
44.10 begun more than six years after being placed on the list, must
44.11 be reapproved by the commission.
44.12 Subd. 5. [TRANSMISSION INVENTORY.] The department of
44.13 commerce shall create, maintain, and update annually an
44.14 inventory of transmission lines in the state.
44.15 Subd. 6. [EXCLUSION.] This section does not apply to any
44.16 transmission line proposal that has been approved, or was
44.17 pending before a local unit of government, the environmental
44.18 quality board, or the public utilities commission on August 1,
44.19 2001.
44.20 Sec. 31. Minnesota Statutes 2000, section 216B.243,
44.21 subdivision 3, is amended to read:
44.22 Subd. 3. [SHOWING REQUIRED FOR CONSTRUCTION.] No proposed
44.23 large energy facility shall be certified for construction unless
44.24 the applicant can show that demand for electricity cannot be met
44.25 more cost-effectively through energy conservation and
44.26 load-management measures and unless the applicant has otherwise
44.27 justified its need. In assessing need, the commission shall
44.28 evaluate:
44.29 (1) the accuracy of the long-range energy demand forecasts
44.30 on which the necessity for the facility is based;
44.31 (2) the effect of existing or possible energy conservation
44.32 programs under sections 216C.05 to 216C.30 and this section or
44.33 other federal or state legislation on long-term energy demand;
44.34 (3) the relationship of the proposed facility to overall
44.35 state energy needs, as described in the most recent state energy
44.36 policy and conservation report prepared under section 216C.18;
45.1 (4) promotional activities that may have given rise to the
45.2 demand for this facility;
45.3 (5) socially beneficial uses of the output benefits of this
45.4 facility, including its uses to protect or enhance environmental
45.5 quality, and to increase reliability of energy supply in
45.6 Minnesota and the region;
45.7 (6) the effects of the facility in inducing future
45.8 development;
45.9 (7) (6) possible alternatives for satisfying the energy
45.10 demand or transmission needs including but not limited to
45.11 potential for increased efficiency and upgrading of existing
45.12 energy generation and transmission facilities, load management
45.13 programs, and distributed generation;
45.14 (8) (7) the policies, rules, and regulations of other state
45.15 and federal agencies and local governments; and
45.16 (9) (8) any feasible combination of energy conservation
45.17 improvements, required under section 216B.241, that can (i)
45.18 replace part or all of the energy to be provided by the proposed
45.19 facility, and (ii) compete with it economically.
45.20 Sec. 32. Minnesota Statutes 2000, section 216B.243,
45.21 subdivision 4, is amended to read:
45.22 Subd. 4. [APPLICATION FOR CERTIFICATE; HEARING.] Any
45.23 person proposing to construct a large energy facility shall
45.24 apply for a certificate of need prior to construction of the
45.25 facility applying for a site or route permit under sections
45.26 116C.51 to 116C.69 or construction of the facility. The
45.27 application shall be on forms and in a manner established by the
45.28 commission. In reviewing each application the commission shall
45.29 hold at least one public hearing pursuant to chapter 14. The
45.30 public hearing shall be held at a location and hour reasonably
45.31 calculated to be convenient for the public. An objective of the
45.32 public hearing shall be to obtain public opinion on the
45.33 necessity of granting a certificate of need. The commission
45.34 shall designate a commission employee whose duty shall be to
45.35 facilitate citizen participation in the hearing process. If the
45.36 commission and the environmental quality board determine that a
46.1 joint hearing on siting and need under this subdivision and
46.2 section 116C.57, subdivision 2d, is feasible, more efficient,
46.3 and may further the public interest, a joint hearing under those
46.4 subdivisions may be held.
46.5 Sec. 33. Minnesota Statutes 2000, section 216B.243,
46.6 subdivision 8, is amended to read:
46.7 Subd. 8. [EXEMPTIONS.] This section does not apply to:
46.8 (1) cogeneration or small power production facilities as
46.9 defined in the Federal Power Act, United States Code, title 16,
46.10 sections 796(18)(A) and 796(17)(A), and having a combined
46.11 capacity at a single site of less than 80,000 kilowatts or to
46.12 plants or facilities for the production of ethanol or fuel
46.13 alcohol nor in any case where the commission shall determine
46.14 after being advised by the attorney general that its application
46.15 has been preempted by federal law;
46.16 (2) a high voltage transmission line proposed primarily to
46.17 distribute electricity to serve the demand of a single customer
46.18 at a single location, unless the applicant opts to request that
46.19 the commission determine need under this section or section
46.20 216B.2425;
46.21 (3) the upgrade to a higher voltage of an existing
46.22 transmission line that serves the demand of a single customer
46.23 that primarily uses existing rights-of-way, unless the applicant
46.24 opts to request that the commission determine need under this
46.25 section or section 216B.2425;
46.26 (4) conversion of the fuel source of an existing electric
46.27 generating plant to using natural gas; or
46.28 (5) modification of an existing electric generating plant
46.29 to increase efficiency, as long as the capacity of the plant is
46.30 not increased more than ten percent or more than 100 megawatts,
46.31 whichever is greater.
46.32 Sec. 34. Minnesota Statutes 2000, section 216B.62,
46.33 subdivision 5, is amended to read:
46.34 Subd. 5. [ASSESSING COOPERATIVES AND MUNICIPALS.] The
46.35 commission and department may charge cooperative electric
46.36 associations and municipal electric utilities their
47.1 proportionate share of the expenses incurred in the review and
47.2 disposition of resource plans, adjudication of service area
47.3 disputes, proceedings under section 216B.2425, and the costs
47.4 incurred in the adjudication of complaints over service
47.5 standards, practices, and rates. Cooperative electric
47.6 associations electing to become subject to rate regulation by
47.7 the commission pursuant to section 216B.026, subdivision 4, are
47.8 also subject to this section. Neither a cooperative electric
47.9 association nor a municipal electric utility is liable for costs
47.10 and expenses in a calendar year in excess of the limitation on
47.11 costs that may be assessed against public utilities under
47.12 subdivision 2. A cooperative electric association or municipal
47.13 electric utility may object to and appeal bills of the
47.14 commission and department as provided in subdivision 4.
47.15 The department shall assess cooperatives and municipalities
47.16 for the costs of alternative energy engineering activities under
47.17 section 216C.261. Each cooperative and municipality shall be
47.18 assessed in proportion that its gross operating revenues for the
47.19 sale of gas and electric service within the state for the last
47.20 calendar year bears to the total of those revenues for all
47.21 public utilities, cooperatives, and municipalities.
47.22 Sec. 35. [STATE ENERGY PLANNING REPORT.]
47.23 (a) The commissioner of the department of commerce shall
47.24 prepare a state energy planning report and submit it to the
47.25 legislature by December 15, 2001 and update the report by
47.26 December 15, 2002. The report must identify important trends
47.27 and issues in energy consumption, supply, technologies,
47.28 conservation, environmental effects, and economics, and must
47.29 recommend energy goals relating to the energy needs of the
47.30 state. The report must recommend goals for the role of energy
47.31 conservation, utilization of renewable energy resources,
47.32 deployment of distributed generation resources, other modern
47.33 energy technologies, and traditional energy technologies, and
47.34 affordability of energy services for all Minnesotans. The
47.35 report must recommend strategies to reach the recommended goals,
47.36 including recommendations for amendments to state law.
48.1 (b) The report must address, among other issues:
48.2 (1) projected energy consumption over the next ten years;
48.3 (2) the need for new energy production and transportation
48.4 facilities;
48.5 (3) options for streamlining of the procedures for
48.6 certification of need, routing and siting, environmental review,
48.7 and permitting of energy facilities;
48.8 (4) the potential role of energy conservation, modern and
48.9 emerging energy technologies, and renewable generation;
48.10 (5) the role for traditional energy technologies;
48.11 (6) the environmental effects of energy consumption,
48.12 including an analysis of the costs associated with reducing
48.13 those effects; and
48.14 (7) projected energy costs over the next ten years.
48.15 (c) In preparing the report, the commissioner shall invite
48.16 public participation and shall consult with other state
48.17 agencies, including the environmental quality board staff, the
48.18 public utilities commission staff, the pollution control agency,
48.19 the department of health and other relevant agencies, local
48.20 government units, regional energy planning groups, energy
48.21 utilities, and other interested persons. Not later than October
48.22 1, 2001, the commissioner shall issue a draft report. The
48.23 commissioner shall accept written comments and hold at least one
48.24 public meeting to gather additional public input on the draft
48.25 report.
48.26 Sec. 36. [REPEALER.]
48.27 Minnesota Statutes 2000, sections 116C.55, subdivisions 2
48.28 and 3; 116C.57, subdivisions 3, 5, and 5a; 116C.67; and
48.29 216B.2421, subdivision 3, are repealed.
48.30 Sec. 37. [EFFECTIVE DATE.]
48.31 This article is effective for certificates of need and
48.32 route and site permits applied for on or after August 1, 2001.
48.33 ARTICLE 8
48.34 RENEWABLE ENERGY AND CONSERVATION
48.35 Section 1. Minnesota Statutes 2000, section 216B.1645, is
48.36 amended to read:
49.1 216B.1645 [POWER PURCHASE CONTRACT OR INVESTMENT.]
49.2 Upon the petition of a public utility, the public utilities
49.3 commission shall approve or disapprove power purchase contracts,
49.4 investments, or expenditures entered into or made by the utility
49.5 to satisfy the wind and biomass mandates contained in sections
49.6 216B.2423 and, 216B.2424, and 216B.169, including reasonable
49.7 investments and expenditures made to transmit the electricity
49.8 generated from sources developed under those sections that is
49.9 ultimately used to provide service to the utility's retail
49.10 customers, or to develop renewable energy sources from the
49.11 account required in section 116C.779. The expenses incurred by
49.12 the utility over the duration of the approved contract or useful
49.13 life of the investment and expenditures made pursuant to section
49.14 116C.779 shall be recoverable from the ratepayers of the
49.15 utility, to the extent they are not offset by utility revenues
49.16 attributable to the contracts, investments, or expenditures.
49.17 Upon petition by a public utility, the commission shall approve
49.18 or approve as modified a rate schedule providing for the
49.19 automatic adjustment of charges to recover the expenses or costs
49.20 approved by the commission, which, in the case of transmission
49.21 expenditures, are limited to the portion of actual transmission
49.22 costs that are directly allocable to the need to transmit power
49.23 from the renewable sources of energy. The commission may not
49.24 approve recovery of the costs for that portion of the power
49.25 generated from sources governed by this section that the utility
49.26 sells into the wholesale market. Nothing in this section shall
49.27 be construed to determine the manner or extent to which revenues
49.28 derived from other generation facilities of the utility may be
49.29 considered in determining the recovery of the approved cost or
49.30 expenses associated with the mandated contracts, investments, or
49.31 expenditures in the event there is retail competition for
49.32 electric energy.
49.33 Sec. 2. [216B.169] [RENEWABLE AND HIGH-EFFICIENCY ENERGY
49.34 RATE OPTIONS.]
49.35 Subdivision 1. [DEFINITIONS.] For the purposes of this
49.36 section, the following terms have the meanings given them.
50.1 (a) "Utility" means a public utility, municipal utility, or
50.2 cooperative electric association providing electric service at
50.3 retail to Minnesota consumers.
50.4 (b) "Renewable energy" has the meaning given in section
50.5 216B.2422, subdivision 1, paragraph (c).
50.6 (c) "High-efficiency, low emissions, distributed generation"
50.7 means a distributed generation facility of no more than ten
50.8 megawatts of interconnected capacity that is certified by the
50.9 commissioner under subdivision 3 as a high-efficiency, low
50.10 emissions facility.
50.11 Subd. 2. [RENEWABLE AND HIGH-EFFICIENCY ENERGY RATE
50.12 OPTIONS.] (a) Each utility shall offer its customers, and shall
50.13 advertise the offer at least annually, one or more options that
50.14 allow a customer to determine that a certain amount of the
50.15 electricity generated or purchased on behalf of the customer is
50.16 renewable energy or energy generated by high-efficiency, low
50.17 emissions, distributed generation such as fuel cells and
50.18 microturbines fueled by a renewable fuel.
50.19 (b) Each public utility shall file an implementation plan
50.20 within 90 days of the effective date of this section to
50.21 implement paragraph (a).
50.22 (c) Rates charged to customers must be calculated using the
50.23 utility's cost of acquiring the energy for the customer and must:
50.24 (1) reflect the difference between the cost of generating
50.25 or purchasing the renewable energy and the cost of generating or
50.26 purchasing the same amount of nonrenewable energy; and
50.27 (2) be distributed on a per kilowatt-hour basis among all
50.28 customers who choose to participate in the program.
50.29 (d) Implementation of these rate options may reflect a
50.30 reasonable amount of lead time necessary to arrange acquisition
50.31 of the energy. The utility may acquire the energy demanded by
50.32 customers, in whole or in part, through procuring or generating
50.33 the renewable energy directly, or through the purchase of
50.34 credits from a provider that has received certification of
50.35 eligible power supply pursuant to subdivision 3. If a utility
50.36 is not able to arrange an adequate supply of renewable or
51.1 high-efficiency energy to meet its customers' demand under this
51.2 section, the utility must file a report with the commission
51.3 detailing its efforts and reasons for its failure.
51.4 Subd. 3. [CERTIFICATION AND TRADEABLE CREDITS.] (a) The
51.5 commissioner shall certify a power supply or supplies as
51.6 eligible to satisfy customer requirements under this section
51.7 upon finding:
51.8 (1) the power supply is renewable energy or energy
51.9 generated by high-efficiency, low emissions, distributed
51.10 generation; and
51.11 (2) the sales arrangements of energy from the supplies are
51.12 such that the power supply is only sold once to retail consumers.
51.13 (b) To facilitate compliance with this section, the
51.14 commission may, by order, establish a program for tradeable
51.15 credits for eligible power supplies.
51.16 Sec. 3. [216B.1691] [RENEWABLE ENERGY OBJECTIVES.]
51.17 Subdivision 1. [DEFINITIONS.] (a) "Eligible energy
51.18 technology" means:
51.19 (1) an energy technology that generates electricity from
51.20 the following renewable energy sources: solar, wind,
51.21 hydroelectric with a capacity of less than 60 megawatts, or
51.22 biomass; and
51.23 (2) was not mandated by state law or commission order.
51.24 (b) "electric utility" means a public utility providing
51.25 electric service, a generation and transmission cooperative
51.26 electric association, or a municipal power agency.
51.27 Subd. 2. [ELIGIBLE ENERGY OBJECTIVES.] (a) Each electric
51.28 utility shall make a good faith effort to generate or procure
51.29 sufficient electricity generated by an eligible energy
51.30 technology to provide its retail consumers, or the retail
51.31 members of a distribution utility to which the electric utility
51.32 provides wholesale electric service, so that:
51.33 (1) commencing in 2005, at least one percent of the
51.34 electric energy provided to those retail customers is generated
51.35 by eligible energy technologies;
51.36 (2) the amount provided under clause (1) is increased by
52.1 one percent each year until 2015;
52.2 (3) ten percent of the electric energy provided to retail
52.3 customers in Minnesota is generated by eligible energy
52.4 technologies; and
52.5 (4) of the eligible energy technology generation required
52.6 under clauses (1) and (2), at least 0.5 percent of the energy
52.7 must be generated by biomass energy technologies by 2010 and one
52.8 percent by 2015.
52.9 (b) Each electric utility shall report on its activities
52.10 and progress with regard to these objectives in their filings
52.11 under section 216B.2422.
52.12 (c) The commission, in consultation with the commissioner
52.13 of commerce, shall compile the information provided to the
52.14 commission under paragraph (b), and report to the chairs of the
52.15 house of representatives and senate committees with jurisdiction
52.16 over energy and environment policy issues as to the progress of
52.17 utilities in the state in increasing the amount of renewable
52.18 energy provided to retail customers, with any recommendations
52.19 for regulatory or legislative action, by January 15, 2002.
52.20 Sec. 4. Minnesota Statutes 2000, section 216B.241,
52.21 subdivision 1, is amended to read:
52.22 Subdivision 1. [DEFINITIONS.] For purposes of this section
52.23 and section 216B.16, subdivision 6b, the terms defined in this
52.24 subdivision have the meanings given them.
52.25 (a) "Commission" means the public utilities commission.
52.26 (b) "Commissioner" means the commissioner of public service.
52.27 (c) "Customer facility" means all buildings, structures,
52.28 equipment, and installations at a single site.
52.29 (d) "Department" means the department of public service.
52.30 (e) "Energy conservation" means demand-side management of
52.31 energy supplies resulting in a net reduction in energy use.
52.32 Load management that reduces overall energy use is energy
52.33 conservation.
52.34 (f) "Energy conservation improvement" means the purchase or
52.35 installation of a device, method, material, or project that:
52.36 (1) reduces consumption of or increases efficiency in the
53.1 use of electricity or natural gas, including but not limited to
53.2 insulation and ventilation, storm or thermal doors or windows,
53.3 caulking and weatherstripping, furnace efficiency modifications,
53.4 thermostat or lighting controls, awnings, or systems to turn off
53.5 or vary the delivery of energy;
53.6 (2) creates, converts, or actively uses energy from
53.7 renewable sources such as solar, wind, and biomass, provided
53.8 that the device or method conforms with national or state
53.9 performance and quality standards whenever applicable;
53.10 (3) seeks to provide energy savings through reclamation or
53.11 recycling and that is used as part of the infrastructure of an
53.12 electric generation, transmission, or distribution system within
53.13 the state or a natural gas distribution system within the state;
53.14 or
53.15 (4) provides research or development of new means of
53.16 increasing energy efficiency or conserving energy or research or
53.17 development of improvement of existing means of increasing
53.18 energy efficiency or conserving energy a project that results in
53.19 energy conservation.
53.20 (f) (g) "Investments and expenses of a public utility"
53.21 includes the investments and expenses incurred by a public
53.22 utility in connection with an energy conservation improvement,
53.23 including but not limited to:
53.24 (1) the differential in interest cost between the market
53.25 rate and the rate charged on a no-interest or below-market
53.26 interest loan made by a public utility to a customer for the
53.27 purchase or installation of an energy conservation improvement;
53.28 (2) the difference between the utility's cost of purchase
53.29 or installation of energy conservation improvements and any
53.30 price charged by a public utility to a customer for such
53.31 improvements.
53.32 (g) (h) "Large electric customer facility" means a customer
53.33 facility that imposes a peak electrical demand on an electric
53.34 utility's system of not less than 20,000 kilowatts, measured in
53.35 the same way as the utility that serves the customer facility
53.36 measures electrical demand for billing purposes, and for which
54.1 electric services are provided at retail on a single bill by a
54.2 utility operating in the state.
54.3 (i) "Load management" means an activity, service, or
54.4 technology to change the timing or the efficiency of a
54.5 customer's use of energy that allows a utility or a customer to
54.6 respond to wholesale market fluctuations or to reduce the
54.7 overall demand for energy or capacity.
54.8 Sec. 5. Minnesota Statutes 2000, section 216B.241,
54.9 subdivision 1a, is amended to read:
54.10 Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION;
54.11 PUBLIC UTILITY.] (a) For purposes of this subdivision and
54.12 subdivision 2, "public utility" has the meaning given it in
54.13 section 216B.02, subdivision 4. Each public utility shall spend
54.14 and invest for energy conservation improvements under this
54.15 subdivision and subdivision 2 the following amounts:
54.16 (1) for a utility that furnishes gas service, 0.5 percent
54.17 of its gross operating revenues from service provided in the
54.18 state;
54.19 (2) for a utility that furnishes electric service, 1.5
54.20 percent of its gross operating revenues from service provided in
54.21 the state; and
54.22 (3) for a utility that furnishes electric service and that
54.23 operates a nuclear-powered electric generating plant within the
54.24 state, two percent of its gross operating revenues from service
54.25 provided in the state.
54.26 For purposes of this paragraph (a), "gross operating revenues"
54.27 do not include revenues from large electric customer facilities
54.28 exempted by the commissioner of the department of public service
54.29 pursuant to under paragraph (b).
54.30 (b) The owner of a large electric customer facility may
54.31 petition the commissioner of the department of public service to
54.32 exempt both electric and gas utilities serving the large energy
54.33 customer facility from the investment and expenditure
54.34 requirements of paragraph (a) with respect to retail revenues
54.35 attributable to the facility. At a minimum, the petition must
54.36 be supported by evidence relating to competitive or economic
55.1 pressures on the customer and a showing by the customer of
55.2 reasonable efforts to identify, evaluate, and implement
55.3 cost-effective conservation improvements at the facility. If a
55.4 petition is filed on or before October 1 of any year, the order
55.5 of the commissioner to exempt revenues attributable to the
55.6 facility can be effective no earlier than January 1 of the
55.7 following year. The commissioner shall not grant an exemption
55.8 if the commissioner determines that granting the exemption is
55.9 contrary to the public interest. The commissioner may, after
55.10 investigation, rescind any exemption granted under this
55.11 paragraph upon a determination that cost-effective energy
55.12 conservation improvements are available at the large electric
55.13 customer facility. For the purposes of this paragraph,
55.14 "cost-effective" means that the projected total cost of the
55.15 energy conservation improvement at the large electric customer
55.16 facility is less than the projected present value of the energy
55.17 and demand savings resulting from the energy conservation
55.18 improvement. For the purposes of investigations by the
55.19 commissioner under this paragraph, the owner of any large
55.20 electric customer facility shall, upon request, provide the
55.21 commissioner with updated information comparable to that
55.22 originally supplied in or with the owner's original petition
55.23 under this paragraph.
55.24 (c) The commissioner may require investments or spending
55.25 greater than the amounts required under this subdivision for a
55.26 public utility whose most recent advance forecast required under
55.27 section 216B.2422 or 216C.17 projects a peak demand deficit of
55.28 100 megawatts or greater within five years under mid-range
55.29 forecast assumptions.
55.30 (d) A public utility or owner of a large electric customer
55.31 facility may appeal a decision of the commissioner under
55.32 paragraph (b) or (c) to the commission under subdivision 2. In
55.33 reviewing a decision of the commissioner under paragraph (b) or
55.34 (c), the commission shall rescind the decision if it finds that
55.35 the required investments or spending will:
55.36 (1) not result in cost-effective energy conservation
56.1 improvements; or
56.2 (2) otherwise not be in the public interest.
56.3 (e) Each utility shall determine what portion of the amount
56.4 it sets aside for conservation improvement will be used for
56.5 conservation improvements under subdivision 2 and what portion
56.6 it will contribute to the energy and conservation account
56.7 established in subdivision 2a. A public utility may propose to
56.8 the commissioner to designate that all or a portion of funds
56.9 contributed to the account established in subdivision 2a be used
56.10 for research and development projects that can best be
56.11 implemented on a statewide basis. Contributions must be
56.12 remitted to the commissioner of public service by February 1 of
56.13 each year. Nothing in this subdivision prohibits a public
56.14 utility from spending or investing for energy conservation
56.15 improvement more than required in this subdivision.
56.16 Sec. 6. Minnesota Statutes 2000, section 216B.241,
56.17 subdivision 1b, is amended to read:
56.18 Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE
56.19 ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to:
56.20 (1) a cooperative electric association that generates and
56.21 transmits electricity to associations that provide electricity
56.22 at retail including a cooperative electric association not
56.23 located in this state that serves associations or others in the
56.24 state provides retail service to its members;
56.25 (2) a municipality that provides electric service to retail
56.26 customers; and
56.27 (3) a municipality with gross operating revenues in excess
56.28 of $5,000,000 from sales of natural gas to retail customers.
56.29 (b) Each cooperative electric association and municipality
56.30 subject to this subdivision shall spend and invest for energy
56.31 conservation improvements under this subdivision the following
56.32 amounts:
56.33 (1) for a municipality, 0.5 percent of its gross operating
56.34 revenues from the sale of gas and one 1.5 percent of its gross
56.35 operating revenues from the sale of electricity not purchased
56.36 from a public utility governed by subdivision 1a or a
57.1 cooperative electric association governed by this subdivision,
57.2 excluding gross operating revenues from electric and gas service
57.3 provided in the state to large electric customer facilities; and
57.4 (2) for a cooperative electric association, 1.5 percent of
57.5 its gross operating revenues from service provided in the state,
57.6 excluding gross operating revenues from service provided in the
57.7 state to large electric customer facilities indirectly through a
57.8 distribution cooperative electric association.
57.9 (c) Each municipality and cooperative electric association
57.10 subject to this subdivision shall identify and implement energy
57.11 conservation improvement spending and investments that are
57.12 appropriate for the municipality or association, except that a
57.13 municipality or association may not spend or invest for energy
57.14 conservation improvements that directly benefit a large electric
57.15 customer facility for which the commissioner has issued an
57.16 exemption under subdivision 1a, paragraph (b).
57.17 (d) Each municipality and cooperative electric association
57.18 subject to this subdivision may spend and invest annually up
57.19 to 15 ten percent of the total amount required to be spent and
57.20 invested on energy conservation improvements under this
57.21 subdivision on research and development projects that meet the
57.22 definition of energy conservation improvement in subdivision 1
57.23 and that are funded directly by the municipality or cooperative
57.24 electric association. Load management may be used to meet the
57.25 requirements of this subdivision if it reduces the demand for or
57.26 increases the efficiency of electric services.
57.27 (e) Load management activities that do not reduce energy
57.28 use but that increase the efficiency of the electric system may
57.29 be used to meet the following percentage of the conservation
57.30 investment and spending requirements of this subdivision:
57.31 (1) 2002 - 90 percent;
57.32 (2) 2003 - 80 percent;
57.33 (3) 2004 - 65 percent; and
57.34 (4) 2005 and thereafter - 50 percent.
57.35 (f) A generation and transmission cooperative electric
57.36 association may include as spending and investment required
58.1 under this subdivision conservation improvement spending and
58.2 investment by that provides energy services to cooperative
58.3 electric associations that provide electric service at retail to
58.4 consumers and that are served by the generation and transmission
58.5 association may invest in energy conservation improvements on
58.6 behalf of the associations it serves and may fulfill the
58.7 conservation, spending, reporting, and energy savings goals on
58.8 an aggregate basis. A municipal power agency or other
58.9 not-for-profit entity that provides energy service to municipal
58.10 utilities that provide electric service at retail may invest in
58.11 energy conservation improvements on behalf of the municipal
58.12 utilities it serves and may fulfill the conservation, spending,
58.13 reporting, and energy savings goals on an aggregate basis, under
58.14 an agreement between the municipal power agency or
58.15 not-for-profit entity and each municipal utility for funding the
58.16 investments.
58.17 (d) (g) By February 1 of each year June 1, 2002, and every
58.18 two years thereafter, each municipality or cooperative
58.19 shall report file an overview of its conservation improvement
58.20 plan with the commissioner. With this overview, the
58.21 municipality or cooperative shall also provide an evaluation to
58.22 the commissioner detailing its energy conservation improvement
58.23 spending and investments with a brief analysis of effectiveness
58.24 in reducing consumption of electricity or gas for the previous
58.25 period. The evaluation must briefly describe each conservation
58.26 program and must specify the energy savings or increased
58.27 efficiency in the use of energy within the service territory of
58.28 the utility or association that is the result of the spending
58.29 and investments. The evaluation must analyze the
58.30 cost-effectiveness of the utility's or association's
58.31 conservation programs, using a list of baseline energy and
58.32 capacity savings assumptions developed in consultation with the
58.33 department.
58.34 The commissioner shall review each report evaluation and make
58.35 recommendations, where appropriate, to the municipality or
58.36 association to increase the effectiveness of conservation
59.1 improvement activities. Up to three percent of a utility's
59.2 conservation spending obligation under this section may be used
59.3 for program pre-evaluation, testing, and monitoring and program
59.4 evaluation.
59.5 (h) The commissioner shall also review each
59.6 report evaluation for whether a portion of the money spent on
59.7 residential conservation improvement programs is devoted to
59.8 programs that directly address the needs of renters and
59.9 low-income persons unless an insufficient number of appropriate
59.10 programs are available. For the purposes of this subdivision
59.11 and subdivision 2, "low-income" means an income of less than 185
59.12 percent of the federal poverty level at or below 50 percent of
59.13 the state median income.
59.14 (e) (i) As part of its spending for conservation
59.15 improvement, a municipality or association may contribute to the
59.16 energy and conservation account. A municipality or association
59.17 may propose to the commissioner to designate that all or a
59.18 portion of funds contributed to the account be used for research
59.19 and development projects that can best be implemented on a
59.20 statewide basis. Any amount contributed must be remitted to the
59.21 commissioner of public service by February 1 of each year.
59.22 Sec. 7. Minnesota Statutes 2000, section 216B.241,
59.23 subdivision 2, is amended to read:
59.24 Subd. 2. [PROGRAMS.] (a) The commissioner may by rule
59.25 require public utilities to make investments and expenditures in
59.26 energy conservation improvements, explicitly setting forth the
59.27 interest rates, prices, and terms under which the improvements
59.28 must be offered to the customers. The required programs must
59.29 cover a two-year period. Public utilities shall file
59.30 conservation improvement plans by June 1, on a schedule
59.31 determined by order of the commissioner. Plans received by a
59.32 public utility by June 1 must be approved or approved as
59.33 modified by the commissioner by December 1 of that same year.
59.34 The commissioner shall require at least one public utility to
59.35 establish a pilot program to make investments in and
59.36 expenditures for energy from renewable resources such as solar,
60.1 wind, or biomass and shall give special consideration and
60.2 encouragement to programs that bring about significant net
60.3 savings through the use of energy-efficient lighting. The
60.4 commissioner shall evaluate the program on the basis of
60.5 cost-effectiveness and the reliability of technologies
60.6 employed. The rules of the department commissioner's order must
60.7 provide to the extent practicable for a free choice, by
60.8 consumers participating in the program, of the device, method,
60.9 material, or project constituting the energy conservation
60.10 improvement and for a free choice of the seller, installer, or
60.11 contractor of the energy conservation improvement, provided that
60.12 the device, method, material, or project seller, installer, or
60.13 contractor is duly licensed, certified, approved, or qualified,
60.14 including under the residential conservation services program,
60.15 where applicable.
60.16 (b) The commissioner may require a utility to make an
60.17 energy conservation improvement investment or expenditure
60.18 whenever the commissioner finds that the improvement will result
60.19 in energy savings at a total cost to the utility less than the
60.20 cost to the utility to produce or purchase an equivalent amount
60.21 of new supply of energy. The commissioner shall nevertheless
60.22 ensure that every public utility operate one or more programs
60.23 under periodic review by the department. Load management may be
60.24 used to meet the requirements for energy conservation
60.25 improvements under this section if it results in a demonstrable
60.26 reduction in consumption of energy.
60.27 (c) Each public utility subject to subdivision 1a may spend
60.28 and invest annually up to 15 ten percent of the total amount
60.29 required to be spent and invested on energy conservation
60.30 improvements under this section by the utility on research and
60.31 development projects that meet the definition of energy
60.32 conservation improvement in subdivision 1 and that are funded
60.33 directly by the public utility.
60.34 (d) A public utility may not spend for or invest in energy
60.35 conservation improvements that directly benefit a large electric
60.36 customer facility for which the commissioner has issued an
61.1 exemption pursuant to subdivision 1a, paragraph (b). The
61.2 commissioner shall consider and may require a utility to
61.3 undertake a program suggested by an outside source, including a
61.4 political subdivision or a nonprofit or community organization.
61.5 (c) No utility may make an energy conservation improvement
61.6 under this section to a building envelope unless:
61.7 (1) it is the primary supplier of energy used for either
61.8 space heating or cooling in the building;
61.9 (2) the commissioner determines that special circumstances,
61.10 that would unduly restrict the availability of conservation
61.11 programs, warrant otherwise; or
61.12 (3) the utility has been awarded a contract under
61.13 subdivision 2a.
61.14 (d) (e) The commissioner may, by order, establish a list of
61.15 programs that may be offered as energy conservation improvements
61.16 by a public utility, municipal utility, cooperative electric
61.17 association, or other entity providing conservation services
61.18 pursuant to this section. The list of programs may include
61.19 rebates for high-efficiency appliances, rebates or subsidies for
61.20 high-efficiency lamps, small business energy audits, and
61.21 building recommissioning. The commissioner may, by order,
61.22 change this list to add or subtract programs as the commissioner
61.23 determines is necessary to promote efficient and effective
61.24 conservation programs.
61.25 (f) The commissioner shall ensure that a portion of the
61.26 money spent on residential conservation improvement programs is
61.27 devoted to programs that directly address the needs of renters
61.28 and low-income persons, in proportion to the amount the utility
61.29 has historically spent on such programs based on the most recent
61.30 three-year average relative to the utility's total conservation
61.31 spending under this section, unless an insufficient number of
61.32 appropriate programs are available.
61.33 (e) (g) A utility, a political subdivision, or a nonprofit
61.34 or community organization that has suggested a program, the
61.35 attorney general acting on behalf of consumers and small
61.36 business interests, or a utility customer that has suggested a
62.1 program and is not represented by the attorney general under
62.2 section 8.33 may petition the commission to modify or revoke a
62.3 department decision under this section, and the commission may
62.4 do so if it determines that the program is not cost-effective,
62.5 does not adequately address the residential conservation
62.6 improvement needs of low-income persons, has a long-range
62.7 negative effect on one or more classes of customers, or is
62.8 otherwise not in the public interest. The person petitioning
62.9 for commission review has the burden of proof. The commission
62.10 shall reject a petition that, on its face, fails to make a
62.11 reasonable argument that a program is not in the public interest.
62.12 (h) The commissioner may order a public utility to include,
62.13 with the filing of the utility's proposed conservation
62.14 improvement plan under paragraph (a), the results of an
62.15 independent audit of the utility's conservation improvement
62.16 programs and expenditures performed by the department or an
62.17 auditor with experience in the provision of energy conservation
62.18 and energy efficiency services approved by the commissioner and
62.19 chosen by the utility. The audit must specify the energy
62.20 savings or increased efficiency in the use of energy within the
62.21 service territory of the utility that is the result of the
62.22 spending and investments. The audit must evaluate the
62.23 cost-effectiveness of the utility's conservation programs.
62.24 Up to three percent of a utility's conservation spending
62.25 obligation under this section may be used for program
62.26 pre-evaluation, testing, and monitoring and program audit and
62.27 evaluation.
62.28 Sec. 8. Minnesota Statutes 2000, section 216C.051,
62.29 subdivision 6, is amended to read:
62.30 Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the
62.31 cochairs of the legislative task force and after approval of the
62.32 legislative coordinating commission, the commissioner of the
62.33 department of public service commerce shall assess from electric
62.34 utilities all public utilities, generation and transmission
62.35 cooperative electric associations, and municipal power agencies
62.36 providing electric or natural gas services in Minnesota, in
63.1 addition to assessments made under section 216B.62, the amount
63.2 requested for the operation of the task force not to
63.3 exceed $700,000 $150,000 in a fiscal year. This authority to
63.4 assess continues until the commissioner has assessed a total of
63.5 $700,000. The amount assessed under this section is
63.6 appropriated to the director of the legislative coordinating
63.7 commission for those purposes, and is available until expended.
63.8 The department shall apportion those costs among all energy
63.9 utilities in proportion to their respective gross operating
63.10 revenues from the sale of gas or electric service within the
63.11 state during the last calendar year. For the purposes of
63.12 administrative efficiency, the department shall assess energy
63.13 utilities and issue bills in accordance with the billing and
63.14 assessment procedures provided in section 216B.62, to the extent
63.15 that these procedures do not conflict with this subdivision.
63.16 Sec. 9. Minnesota Statutes 2000, section 216C.051,
63.17 subdivision 9, is amended to read:
63.18 Subd. 9. [EXPIRATION.] This section is repealed March 15,
63.19 2001 June 30, 2005.
63.20 Sec. 10. [216C.052] [RELIABILITY ADMINISTRATOR.]
63.21 Subdivision 1. [RESPONSIBILITIES.] (a) There is
63.22 established the position of reliability administrator in the
63.23 department of commerce. The administrator shall act as a source
63.24 of independent expertise and a technical advisor to the
63.25 commissioner, the commission, the public, and the legislative
63.26 electric energy task force on issues related to the reliability
63.27 of the electric system. In conducting its work, the
63.28 administrator shall:
63.29 (1) model and monitor the use and operation of the energy
63.30 infrastructure in the state, including generation facilities,
63.31 transmission lines, natural gas pipelines, and other energy
63.32 infrastructure;
63.33 (2) develop and present to the commission and parties
63.34 technical analyses of proposed infrastructure projects, and
63.35 provide technical advice to the commission;
63.36 (3) present independent, factual, expert, and technical
64.1 information on infrastructure proposals and reliability issues
64.2 at public meetings hosted by the task force, the environmental
64.3 quality board, the department, or the commission.
64.4 (b) Upon request and subject to resource constraints, the
64.5 administrator shall provide technical assistance regarding
64.6 matters unrelated to applications for infrastructure
64.7 improvements to the task force, the department, or the
64.8 commission.
64.9 (c) The administrator may not advocate for any particular
64.10 outcome in a commission proceeding, but may give technical
64.11 advice to the commission as to the impact on the reliability of
64.12 the energy system of a particular project or projects. The
64.13 administrator must not be considered a party or a participant in
64.14 any proceeding before the commission.
64.15 Subd. 2. [ADMINISTRATIVE ISSUES.] (a) The commissioner may
64.16 select the administrator who shall serve for a four-year term.
64.17 The commissioner shall oversee and direct the work of the
64.18 administrator, annually review the expenses of the
64.19 administrator, and annually approve the budget of the
64.20 administrator. The administrator may hire staff and may
64.21 contract for technical expertise in performing duties when
64.22 existing state resources are required for other state
64.23 responsibilities or when special expertise is required. The
64.24 salary of the administrator is governed by section 15A.0815,
64.25 subdivision 2.
64.26 (b) Costs relating to a specific proceeding, analysis, or
64.27 project are not general administrative costs. For purposes of
64.28 this section, "energy utility" means public utilities,
64.29 generation and transmission cooperative electric associations,
64.30 and municipal power agencies providing natural gas or electric
64.31 service in the state.
64.32 (c) The department of commerce shall pay:
64.33 (1) the general administrative costs of the administrator,
64.34 not to exceed $1,500,000 in a fiscal year, and shall assess
64.35 energy utilities for reimbursement for those administrative
64.36 costs. These costs must be consistent with the budget approved
65.1 by the commissioner under paragraph (a). The department shall
65.2 apportion the costs among all energy utilities in proportion to
65.3 their respective gross operating revenues from sales of gas or
65.4 electric service within the state during the last calendar year,
65.5 and shall then render a bill to each utility on a regular basis;
65.6 and
65.7 (2) costs relating to a specific proceeding analysis or
65.8 project and shall render a bill for reimbursement to the
65.9 specific energy utility or utilities participating in the
65.10 proceeding, analysis, or project directly, either at the
65.11 conclusion of a particular proceeding, analysis, or project, or
65.12 from time to time during the course of the proceeding, analysis,
65.13 or project.
65.14 (d) For purposes of administrative efficiency, the
65.15 department shall assess energy utilities and issue bills in
65.16 accordance with the billing and assessment procedures provided
65.17 in section 216B.62, to the extent that these procedures do not
65.18 conflict with this subdivision. The amount of the bills
65.19 rendered by the department under paragraph (c) must be paid by
65.20 the energy utility into an account in the special revenue fund
65.21 in the state treasury within 30 days from the date of billing
65.22 and is appropriated to the commissioner for the purposes
65.23 provided in this section. The commission shall approve or
65.24 approve as modified a rate schedule providing for the automatic
65.25 adjustment of charges to recover amounts paid by utilities under
65.26 this section. All amounts assessed under this section are in
65.27 addition to amounts appropriated to the commission and the
65.28 department by other law.
65.29 Subd. 3. [EXPIRATION.] This section expires June 30, 2006.
65.30 Sec. 11. [CONSERVATION IMPROVEMENT PLAN; EVALUATION OF
65.31 COOPERATIVE AND MUNICIPAL PROGRAMS.]
65.32 (a) In consultation with the department of commerce,
65.33 cooperative electric associations and municipal utilities shall
65.34 evaluate their energy and capacity conservation programs,
65.35 develop plans for future programs, and report their findings and
65.36 plans to the chairs of the house of representatives and senate
66.1 committees with jurisdiction over energy issues by June 1, 2002.
66.2 Evaluations may be conducted jointly with other entities subject
66.3 to this section, and shall address:
66.4 (1) whether the utility or association has implemented and
66.5 is implementing cost-effective energy conservation programs;
66.6 (2) the availability of basic conservation services and
66.7 programs to customers;
66.8 (3) methodologies that best quantify energy savings,
66.9 cost-effectiveness, and the potential for cost-effective
66.10 conservation improvements;
66.11 (4) the role of capacity conservation in meeting utility
66.12 planning needs and state energy goals; and
66.13 (5) the ability of energy conservation programs to avoid
66.14 the need for construction of generation facilities and
66.15 transmission lines.
66.16 (b) The evaluation must develop program and performance
66.17 goals that recognize customer class, utility service area
66.18 demographics, cost of program delivery, regional economic
66.19 indicators, and utility load shape. The cost of the evaluation
66.20 may be deducted from the utility's or association's conservation
66.21 spending obligation under Minnesota Statutes 2000, section
66.22 216B.241.
66.23 Sec. 12. [COOPERATIVE CONSERVATION INVESTMENT INCREASE
66.24 PHASE-IN.]
66.25 The increase in required conservation improvement
66.26 expenditures by a cooperative electric association that results
66.27 from the amendments in section 5 to Minnesota Statutes, section
66.28 216B.241, subdivision 1b, paragraph (a), clause (1), must be
66.29 phased in as follows:
66.30 (1) at least 25 percent shall be effective in year 2002;
66.31 (2) at least 50 percent shall be effective in year 2003;
66.32 (3) at least 75 percent shall be effective in year 2004;
66.33 and
66.34 (4) all of the increase shall be effective in year 2005 and
66.35 thereafter.
66.36 Sec. 13. [DISTRIBUTED ENERGY RESOURCES.]
67.1 (a) To the extent that cost-effective projects are
67.2 available in the service territory of a utility or association
67.3 providing conservation services under Minnesota Statutes,
67.4 section 216B.241, the utility or association shall use five
67.5 percent of the total amount to be spent on energy conservation
67.6 improvements under Minnesota Statutes, section 216B.241, on:
67.7 (1) projects to construct an electric generating facility
67.8 that utilizes renewable fuels as defined in Minnesota Statutes,
67.9 section 216B.2422, subdivision 1, such as methane or other
67.10 combustible gases derived from the processing of plant or animal
67.11 wastes, biomass fuels such as short-rotation woody or fibrous
67.12 agricultural crops, or other renewable fuel, as its primary fuel
67.13 source; or
67.14 (2) projects to install a distributed generation facility
67.15 of ten megawatts or less of interconnected capacity that is
67.16 fueled by natural gas, renewable fuels, or another similarly
67.17 clean fuel.
67.18 (b) For public utilities, as defined under Minnesota
67.19 Statutes, section 216B.02, subdivision 4, projects under this
67.20 section must be considered energy conservation improvements as
67.21 defined in Minnesota Statutes, section 216B.241. For
67.22 cooperative electric associations and municipal utilities,
67.23 projects under this section must be considered load management
67.24 activities described in Minnesota Statutes, section 216B.241,
67.25 subdivision 1, paragraph (i).
67.26 (c) This section expires May 30, 2006.
67.27 Sec. 14. [TRANSITION.]
67.28 The commission may provide an alternative recovery
67.29 mechanism for the expense of continuing existing approved
67.30 cost-effective projects by a rate-regulated distribution
67.31 cooperative electric association.
67.32 Sec. 15. [CONSERVATION INVESTMENT PROGRAM STUDY.]
67.33 (a) The commissioner of commerce shall study the
67.34 conservation investment program created under Minnesota
67.35 Statutes, section 216B.241, and make recommendations to the
67.36 legislature on changes in the program that will assist the
68.1 program to obtain the maximum energy savings possible from
68.2 spending and investments under the program. The study must
68.3 include, at a minimum:
68.4 (1) a review of administrative burdens imposed by the
68.5 program with the goal to reduce them to the maximum extent
68.6 consistent with ensuring that the program will meet its goal of
68.7 maximum energy savings with program funds;
68.8 (2) identification of spending and investments with high
68.9 potential for saving energy and suggestions for targeting the
68.10 program at those expenditures and investments; and
68.11 (3) appropriate levels of spending and investment under the
68.12 program.
68.13 (b) The commissioner shall solicit written public comment
68.14 on the study and submit a report and a copy of the written
68.15 comments to the committees of the legislature having principal
68.16 jurisdiction on energy matters by November 15, 2001.
68.17 Sec. 16. [EXEMPTION EXTENDED.]
68.18 (a) The commissioner of commerce shall not review the
68.19 exemption under Minnesota Statutes, section 216B.241,
68.20 subdivision 1a, paragraph (b), of a large electric customer
68.21 facility, as defined in Minnesota Statutes, section 216B.241,
68.22 subdivision 1, paragraph (g), from the investment and
68.23 expenditure requirements of Minnesota Statutes, section
68.24 216B.241, subdivision 1a, paragraph (b), for five years from the
68.25 date the exemption was granted, provided the exemption was
68.26 granted before April 15, 2001.
68.27 (b) A large electric customer facility as defined in
68.28 Minnesota Statutes, section 216B.241, subdivision 1, that is
68.29 exempt from the investment and expenditure requirements of
68.30 Minnesota Statutes, section 216B.241, by virtue of a contract
68.31 approved by the public utilities commission prior to April 15,
68.32 2001, under Minnesota Statutes, section 216B.162, shall remain
68.33 exempt from those requirements until April 15, 2006.
68.34 (c) This section does not apply if the customer facility's
68.35 monthly peak measured demand for three consecutive months
68.36 exceeds 110 percent of the annual peak measured demand of the
69.1 facility in the year the exemption was granted.
69.2 Sec. 17. [UNIVERSAL ENERGY SERVICE PROGRAM.]
69.3 The department of commerce shall report to the legislature
69.4 by January 15, 2002, regarding the development of a universal
69.5 energy service program. The purpose of the program is to
69.6 provide energy bill payment and conservation assistance to low-
69.7 and moderate-income energy customers. The report shall include
69.8 proposals for implementing the program, including, but not
69.9 limited to, proposals to establish income eligibility, estimate
69.10 the percentage of income that eligible customers devote to
69.11 energy costs, determine the level of funding required to
69.12 significantly lower the energy burden of eligible customers,
69.13 establish funding collection and distribution methods, and
69.14 measure the impact of charges for the program on all Minnesota
69.15 energy consumers.
69.16 Sec. 18. [APPROPRIATION.]
69.17 The commissioner of commerce shall transfer up to $500,000
69.18 annually of the amounts provided for in section 11, subdivision
69.19 2, to the commissioner of administration for the purposes
69.20 provided in article 1, section 2, as needed to implement that
69.21 section.
69.22 Sec. 19. [EFFECTIVE DATE.]
69.23 Sections 14, 15, and 16 are effective the day following
69.24 final enactment. Sections 4 to 7, 10, 12, 13, and 18 are
69.25 effective January 1, 2002. Section 9 is effective retroactively
69.26 from March 1, 2001. Section 8 is effective July 1, 2001.