HF 854

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 11/21/2013 01:23pm

A bill for an act
relating to energy; modifying provisions related to distributed generation
and renewable energy; regulating conservation improvement investments for
low-income programs; modifying eminent domain and condemnation procedures;
amending Minnesota Statutes 2012, sections 216B.164, subdivision 3a, as added;
216B.241, subdivision 7; 216B.2422, subdivision 4; 216E.12, subdivision 4.

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

Section 1.

Minnesota Statutes 2012, section 216B.164, subdivision 3a, as added by
2013 H.F. No. 729, article 9, section 4, if enacted, is amended to read:

Subd. 3a.

Net metered facility.

(a) Except for customers receiving a value of
solar rate under subdivision 10, a customer with a net metered facility having deleted text begin more
than 40-kilowatt and less than 1,000-kilowatt capacity deleted text end new text begin a capacity of 40 kilowatts or
greater but less than 1,000 kilowatts new text end that is interconnected to a public utility may elect
to be compensated for the customer's net input into the utility system in the form of
a kilowatt-hour credit on the customer's energy bill carried forward and applied to
subsequent energy bills. Any net input supplied by the customer into the utility system
that exceeds energy supplied to the customer by the utility during a calendar year must be
compensated at the applicable rate.

(b) A public utility may not impose a standby charge on a net metered or qualifying
facility:

(1) of 100 kilowatts or less capacity; or

(2) of more than 100 kilowatts capacity, except in accordance with an order of the
commission establishing the allowable costs to be recovered through standby charges.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.241, subdivision 7, is amended to read:

Subd. 7.

Low-income programs.

(a) The commissioner shall ensure that each
utility and association provides low-income programs. When approving spending and
energy-savings goals for low-income programs, the commissioner shall consider historic
spending and participation levels, energy savings for low-income programs, and the
number of low-income persons residing in the utility's service territory. A new text begin municipal new text end utility
that furnishes gas service must spend at least 0.2 percent new text begin , and a public utility furnishing
gas service must spend at least 0.4 percent, new text end of its new text begin most recent three-year average new text end gross
operating revenue from residential customers in the state on low-income programs. A
utility or association that furnishes electric service must spend at least 0.1 percent of its
gross operating revenue from residential customers in the state on low-income programs.
For a generation and transmission cooperative association, this requirement shall apply to
each association's members' aggregate gross operating revenue from sale of electricity to
residential customers in the state. Beginning in 2010, a utility or association that furnishes
electric service must spend 0.2 percent of its gross operating revenue from residential
customers in the state on low-income programs.

(b) To meet the requirements of paragraph (a), a utility or association may contribute
money to the energy and conservation account. An energy conservation improvement plan
must state the amount, if any, of low-income energy conservation improvement funds the
utility or association will contribute to the energy and conservation account. Contributions
must be remitted to the commissioner by February 1 of each year.

(c) The commissioner shall establish low-income programs to utilize money
contributed to the energy and conservation account under paragraph (b). In establishing
low-income programs, the commissioner shall consult political subdivisions, utilities, and
nonprofit and community organizations, especially organizations engaged in providing
energy and weatherization assistance to low-income persons. Money contributed to
the energy and conservation account under paragraph (b) must provide programs for
low-income persons, including low-income renters, in the service territory of the utility or
association providing the money. The commissioner shall record and report expenditures
and energy savings achieved as a result of low-income programs funded through the
energy and conservation account in the report required under subdivision 1c, paragraph
(g). The commissioner may contract with a political subdivision, nonprofit or community
organization, public utility, municipality, or cooperative electric association to implement
low-income programs funded through the energy and conservation account.

(d) A utility or association may petition the commissioner to modify its required
spending under paragraph (a) if the utility or association and the commissioner have been
unable to expend the amount required under paragraph (a) for three consecutive years.

new text begin (e) The costs and benefits associated with any approved low-income gas or electric
conservation improvement program that is not cost-effective when considering the costs
and benefits to the utility may, at the discretion of the utility, be excluded from the
calculation of net economic benefits for purposes of calculating the financial incentive to
the utility. The energy and demand savings may, at the discretion of the utility, be applied
toward the calculation of overall portfolio energy and demand savings for purposes of
determining progress toward annual goals and in the financial incentive mechanism.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2012, section 216B.2422, subdivision 4, is amended to read:

Subd. 4.

Preference for renewable energy facility.

The commission shall not
approve a new or refurbished nonrenewable energy facility in an integrated resource plan
or a certificate of need, pursuant to section 216B.243, nor shall the commission allow rate
recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the
utility has demonstrated that a renewable energy facility is not in the public interest. new text begin The
public interest determination must include whether the resource plan helps the utility
achieve the greenhouse gas reduction goals under section 216H.02, the renewable energy
standard under section 216B.1691, or the solar energy standard under section 216B.1691,
subdivision 2f.
new text end

Sec. 4.

Minnesota Statutes 2012, section 216E.12, subdivision 4, is amended to read:

Subd. 4.

Contiguous land.

new text begin (a) new text end When private real property that is an agricultural or
nonagricultural homestead, nonhomestead agricultural land, rental residential property,
and both commercial and noncommercial seasonal residential recreational property, as
those terms are defined in section 273.13 is proposed to be acquired for the construction of
a site or route for a high-voltage transmission line with a capacity of 200 kilovolts or more
by eminent domain proceedings, the deleted text begin fee deleted text end owner deleted text begin , or when applicable, the fee owner with the
written consent of the contract for deed vendee, or the contract for deed vendee with the
written consent of the fee owner, deleted text end shall have the option to require the utility to condemn a
fee interest in any amount of contiguous, commercially viable land which the owner deleted text begin or
vendee deleted text end wholly owns deleted text begin or has contracted to own deleted text end in undivided fee and elects in writing to
transfer to the utility within 60 days after receipt of the notice of the objects of the petition
filed pursuant to section 117.055. Commercial viability shall be determined without
regard to the presence of the utility route or site. new text begin Within 60 days after receipt by the utility
of an owner's election to exercise this option, the utility shall provide written notice to
the owner of any objection the utility has to the owner's election, and if no objection is
made within that time, any objection shall be deemed waived. Within 120 days of the
service of an objection by the utility, the district court having jurisdiction over the eminent
domain proceeding shall hold a hearing to determine whether the utility's objection is
upheld or rejected. The utility has the burden of proof to prove by a preponderance of the
evidence that the property elected by the owner is not commercially viable. new text end The owner
deleted text begin or, when applicable, the contract vendee deleted text end shall have only one such option and may not
expand or otherwise modify an election without the consent of the utility. The required
acquisition of land pursuant to this subdivision shall be considered an acquisition for a
public purpose and for use in the utility's business, for purposes of chapter 117 and section
500.24, respectively; provided that a utility shall divest itself completely of all such lands
used for farming or capable of being used for farming not later than the time it can receive
the market value paid at the time of acquisition of lands less any diminution in value by
reason of the presence of the utility route or site. Upon the owner's election made under
this subdivision, the easement interest over and adjacent to the lands designated by the
owner to be acquired in fee, sought in the condemnation petition for a right-of-way for a
high-voltage transmission line with a capacity of 200 kilovolts or more shall automatically
be converted into a fee taking.

new text begin (b) All rights and protections provided to an owner under chapter 117 apply to
acquisition of land or an interest in land under this section.
new text end

new text begin (c) Within 120 days of an owner's election under this subdivision to require the utility
to acquire land, or 120 days after a district court decision overruling a utility objection to
an election made pursuant to paragraph (a), the utility must make a written offer to acquire
that land and amend its condemnation petition to include the additional land.
new text end

new text begin (d) For purposes of this subdivision, "owner" means the fee owner, or when
applicable, the fee owner with the written consent of the contract for deed vendee, or the
contract for deed vendee with the written consent of the fee owner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendments to paragraph (a) and paragraph (c)
of this section are effective the day following final enactment and apply to actions
commenced on or after that date.
new text end

new text begin (b) Paragraphs (b) and (d) of this section are effective the day following final
enactment and apply to actions pending or commenced on or after that date.
new text end

new text begin (c) This section does not apply to proceedings or actions before the Minnesota
Supreme Court on May 1, 2013.
new text end

new text begin (d) "Commenced" means when service of notice of the petition under Minnesota
Statutes, section 117.055, is made.
new text end