HF 2110

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/12/2021 05:55pm

A bill for an act
relating to energy; establishing, modifying, and appropriating money for energy
conservation and programs, energy transition programs, climate change, electric
vehicle programs, solar energy programs, and other programs and provisions
governing energy, renewable energy, and utility regulation; making technical
changes; requiring reports; amending Minnesota Statutes 2020, sections 16B.86;
16B.87; 16C.135, subdivision 3; 16C.137, subdivision 1; 115B.40, subdivision 1;
116C.779, subdivision 1; 168.27, by adding a subdivision; 216B.096, subdivisions
2, 3; 216B.097, subdivisions 1, 2, 3; 216B.16, subdivisions 6, 13; 216B.164,
subdivision 4, by adding a subdivision; 216B.1641; 216B.1645, subdivisions 1,
2; 216B.1691, subdivisions 1, 2a, 2b, 2d, 2e, 2f, 3, 4, 5, 7, 9, 10, by adding
subdivisions; 216B.2401; 216B.241, subdivisions 1a, 1c, 1d, 1f, 1g, 2, 2b, 3, 5, 7,
8, by adding subdivisions; 216B.2412, subdivision 3; 216B.2422, subdivisions 1,
2, 3, 4, 5, by adding subdivisions; 216B.2424, by adding subdivisions; 216B.243,
subdivision 8; 216B.62, subdivision 3b; 216C.05, subdivision 2; 216E.01,
subdivision 9a; 216E.03, subdivisions 7, 10; 216E.04, subdivision 2; 216F.012;
216F.04; 216H.02, subdivision 1; 326B.106, subdivision 1; 515.07; 515B.2-103;
515B.3-102; proposing coding for new law in Minnesota Statutes, chapters 16B;
116J; 216B; 216C; 216F; 239; 500; repealing Minnesota Statutes 2020, sections
115C.13; 216B.16, subdivision 10; 216B.1691, subdivision 2; 216B.241,
subdivisions 1, 1b, 2c, 4, 10; Laws 2017, chapter 5, section 1.

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

ARTICLE 1

ENERGY CONSERVATION AND STORAGE

Section 1.

Minnesota Statutes 2020, section 16B.86, is amended to read:

16B.86 deleted text begin PRODUCTIVITY deleted text end new text begin STATE BUILDING ENERGY CONSERVATION
IMPROVEMENT REVOLVING new text end LOAN ACCOUNT.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 16B.87, the
following terms have the meanings given.
new text end

new text begin (b) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (d).
new text end

new text begin (c) "Energy conservation improvement" has the meaning given in section 216B.241,
subdivision 1, paragraph (e).
new text end

new text begin (d) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
new text end

new text begin (e) "Project" means the energy conservation improvements financed by a loan made
under this section.
new text end

new text begin (f) "State building" means an existing building owned by the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Account established. new text end

The deleted text begin productivity deleted text end new text begin state building energy conservation
improvement revolving new text end loan account is new text begin established as new text end a deleted text begin special deleted text end new text begin separate new text end account in the state
treasury. new text begin The commissioner shall manage the account and shall credit to the account
investment income, repayments of principal and interest, and any other earnings arising
from assets of the account. new text end Money in the account is appropriated to the commissioner of
administration to make loans to deleted text begin finance agency projects that will result in either reduced
operating costs or increased revenues, or both, for a state agency deleted text end new text begin state agencies to implement
energy conservation and energy efficiency improvements in state buildings under section
16B.87 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 16B.87, is amended to read:

16B.87 AWARD AND REPAYMENT OF deleted text begin PRODUCTIVITY deleted text end new text begin STATE BUILDING
ENERGY IMPROVEMENT CONSERVATION new text end LOANS.

Subdivision 1.

Committee.

The deleted text begin Productivity deleted text end new text begin State Building Energy Conservation
Improvement new text end Loan Committee consists of the commissioners of administration, management
and budget, and deleted text begin revenue deleted text end new text begin commerce new text end . The commissioner of administration serves as chair of
the committee. The members serve without compensation or reimbursement for expenses.

Subd. 2.

Award and terms of loans.

new text begin (a) new text end An agency shall apply for a loan on a form
deleted text begin provided deleted text end new text begin developed new text end by the commissioner of administration deleted text begin . deleted text end new text begin that requires an applicant to
submit the following information:
new text end

new text begin (1) a description of the proposed project, including existing equipment, structural
elements, operating characteristics, and other conditions affecting energy use that the energy
conservation improvements financed by the loan modify or replace;
new text end

new text begin (2) the total estimated project cost and the loan amount sought;
new text end

new text begin (3) a detailed project budget;
new text end

new text begin (4) projections of the proposed project's expected energy and monetary savings;
new text end

new text begin (5) information demonstrating the agency's ability to repay the loan;
new text end

new text begin (6) a description of the energy conservation programs offered by the utility providing
service to the state building from which the applicant seeks additional funding for the project;
and
new text end

new text begin (7) any additional information requested by the commissioner.
new text end

new text begin (b) new text end The committee shall review applications for loans and shall award a loan based upon
criteria adopted by the committee. deleted text begin The committee shall determine the amount, interest, and
other terms of the loan. The time for repayment of a loan may not exceed five years. deleted text end new text begin A loan
made under this section must:
new text end

new text begin (1) be at or below the market rate of interest, including a zero interest loan; and
new text end

new text begin (2) have a term no longer than seven years.
new text end

new text begin (c) In making awards, the committee shall give preference to:
new text end

new text begin (1) applicants that have sought funding for the project through energy conservation
projects offered by the utility serving the state building that is the subject of the application;
and
new text end

new text begin (2) to the extent feasible, applications for state buildings located within the electric retail
service area of the utility that is subject to section 116C.779.
new text end

Subd. 3.

Repayment.

An agency receiving a loan under this section shall repay the loan
according to the terms of the loan agreement. The principal and interest must be paid to the
commissioner of administration new text begin , new text end who shall deposit it in the deleted text begin productivity deleted text end new text begin state building energy
conservation improvement revolving new text end loan deleted text begin fund deleted text end new text begin account. Payments of loan principal and
interest must begin no later than one year after the project is completed new text end .

Sec. 3.

new text begin [216B.1698] INNOVATIVE CLEAN TECHNOLOGIES.
new text end

new text begin (a) For purposes of this section, "innovative clean technology" means advanced energy
technology that is:
new text end

new text begin (1) environmentally superior to technologies currently in use;
new text end

new text begin (2) expected to offer energy-related, environmental, or economic benefits; and
new text end

new text begin (3) not widely deployed by the utility industry.
new text end

new text begin (b) A public utility may petition the commission for authorization to invest in a project
or projects to deploy one or more innovative clean technologies to further the development,
commercialization, and deployment of innovative clean technologies that benefit the public
utility's customers.
new text end

new text begin (c) The commission may approve a petition under paragraph (b) if it finds:
new text end

new text begin (1) the technologies proposed are innovative clean technologies;
new text end

new text begin (2) the investment in an innovative clean energy technology is likely to provide benefits
to customers that exceed the technology's cost;
new text end

new text begin (3) the public utility is meeting its energy conservation goals under section 216B.241;
and
new text end

new text begin (4) the project complies with the spending limits under paragraph (d).
new text end

new text begin (d) Over any three consecutive years, a public utility must not spend more on innovative
clean technologies under this section than:
new text end

new text begin (1) for a public utility providing service to 200,000 or more retail Minnesota customers,
$6,000,000; or
new text end

new text begin (2) for a public utility providing service to fewer than 200,000 retail Minnesota customers,
$3,000,000.
new text end

new text begin (e) The commission may authorize a public utility to file a rate schedule containing
provisions that automatically adjust charges for public utility service in direct relation to
changes in prudent costs incurred by a public utility under this section, up to the amounts
allowed under paragraph (d).To the extent the public utility investment under this section
is for a capital asset, the utility may request that the asset be included in the utility's rate
base.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2020, section 216B.2401, is amended to read:

216B.2401 ENERGY SAVINGS new text begin AND OPTIMIZATION new text end POLICY GOAL.

new text begin (a) new text end The legislature finds that energy savings are an energy resource, and that cost-effective
energy savings are preferred over all other energy resources. new text begin In addition, the legislature
finds that optimizing the timing and method used by energy consumers to manage energy
use provides significant benefits to the consumers and to the utility system as a whole. new text end The
legislature further finds that cost-effective energy savings new text begin and load management programs new text end
should be procured systematically and aggressively in order to reduce utility costs for
businesses and residents, improve the competitiveness and profitability of businesses, create
more energy-related jobs, reduce the economic burden of fuel imports, and reduce pollution
and emissions that cause climate change. Therefore, it is the energy policy of the state of
Minnesota to achieve annual energy savings deleted text begin equal deleted text end new text begin equivalent new text end to at least deleted text begin 1.5 deleted text end new text begin 2.5 new text end percent of
annual retail energy sales of electricity and natural gas through deleted text begin cost-effective energy
conservation improvement programs and rate design, energy efficiency achieved by energy
consumers without direct utility involvement, energy codes and appliance standards, programs
designed to transform the market or change consumer behavior, energy savings resulting
from efficiency improvements to the utility infrastructure and system, and other efforts to
promote energy efficiency and energy conservation. deleted text end new text begin multiple measures, including but not
limited to:
new text end

new text begin (1) cost-effective energy conservation improvement programs and efficient fuel-switching
utility programs under sections 216B.2402 to 216B.241;
new text end

new text begin (2) rate design;
new text end

new text begin (3) energy efficiency achieved by energy consumers without direct utility involvement;
new text end

new text begin (4) advancements in statewide energy codes and cost-effective appliance and equipment
standards;
new text end

new text begin (5) programs designed to transform the market or change consumer behavior;
new text end

new text begin (6) energy savings resulting from efficiency improvements to the utility infrastructure
and system; and
new text end

new text begin (7) other efforts to promote energy efficiency and energy conservation.
new text end

new text begin (b) A utility is encouraged to design and offer to customers load management programs
that enable: (1) customers to maximize the economic value gained from the energy purchased
from the customer's utility service provider; and (2) utilities to optimize the infrastructure
and generation capacity needed to effectively serve customers and facilitate the integration
of renewable energy into the energy system.
new text end

new text begin (c) The commissioner must provide a reasonable estimate of progress made toward the
statewide energy-savings goal under paragraph (a) in the annual report required under section
216B.241, subdivision 1c, and make recommendations for administrative or legislative
initiatives to increase energy savings toward that goal. The commissioner must annually
report on the energy productivity of the state's economy by estimating the ratio of economic
output produced in the most recently completed calendar year to the primary energy inputs
used in that year.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [216B.2402] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of section 216B.16, subdivision 6b, and
sections 216B.2401 to 216B.241, the following terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Consumer-owned utility. new text end

new text begin "Consumer-owned utility" means a municipal gas
utility, a municipal electric utility, or a cooperative electric association.
new text end

new text begin Subd. 3. new text end

new text begin Cumulative lifetime savings. new text end

new text begin "Cumulative lifetime savings" means the total
electric energy or natural gas savings in a given year from energy conservation improvements
installed in that given year and energy conservation improvements installed in previous
years that are still in operation.
new text end

new text begin Subd. 4. new text end

new text begin Efficient fuel-switching improvement. new text end

new text begin "Efficient fuel-switching improvement"
means a project that:
new text end

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

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

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

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

new text begin An efficient fuel-switching improvement is not an energy conservation improvement or
energy efficiency even if it results in a net reduction in electricity or natural gas consumption.
new text end

new text begin Subd. 5. new text end

new text begin Energy conservation. new text end

new text begin "Energy conservation" means an action that results in
a net reduction in electricity or natural gas consumption. Energy conservation does not
include an efficient fuel-switching improvement.
new text end

new text begin Subd. 6. new text end

new text begin Energy conservation improvement. new text end

new text begin "Energy conservation improvement"
means a project that results in energy efficiency or energy conservation. Energy conservation
improvement may include waste heat that is recovered and converted into electricity or used
as thermal energy, but does not include electric utility infrastructure projects approved by
the commission under section 216B.1636.
new text end

new text begin Subd. 7. new text end

new text begin Energy efficiency. new text end

new text begin "Energy efficiency" means measures or programs, including
energy conservation measures or programs, that: (1) target consumer behavior, equipment,
processes, or devices; (2) are designed to reduce the consumption of electricity or natural
gas on either an absolute or per unit of production basis; and (3) do not reduce the quality
or level of service provided to an energy consumer.
new text end

new text begin Subd. 8. new text end

new text begin Fuel. new text end

new text begin "Fuel" means energy, including electricity, propane, natural gas, heating
oil, gasoline, diesel fuel, or steam, consumed by a retail utility customer.
new text end

new text begin Subd. 9. new text end

new text begin Fuel neutral. new text end

new text begin "Fuel neutral" means an approach that compares the use of various
fuels for a given end use, using a common metric.
new text end

new text begin Subd. 10. new text end

new text begin Gross annual retail energy sales. new text end

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

new text begin (1) gas sales to:
new text end

new text begin (i) a large energy facility;
new text end

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

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

new text begin (2) electric sales to a large customer facility whose electric utility has been exempted
by the commissioner under section 216B.241, subdivision 1a, paragraph (a), with respect
to electric sales made to the large customer facility; or
new text end

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

new text begin Subd. 11. new text end

new text begin Investments and expenses of a public utility. new text end

new text begin "Investments and expenses of
a public utility" means the investments and expenses incurred by a public utility in connection
with an energy conservation improvement.
new text end

new text begin Subd. 12. new text end

new text begin Large customer facility. new text end

new text begin "Large customer facility" means all buildings,
structures, equipment, and installations at a single site that in aggregate: (1) impose a peak
electrical demand on an electric utility's system of at least 20,000 kilowatts, measured in
the same manner as the utility that serves the customer facility measures electric demand
for billing purposes; or (2) consume at least 500,000,000 cubic feet of natural gas annually.
When calculating peak electrical demand, a large customer facility may include demand
offset by on-site cogeneration facilities and, if engaged in mineral extraction, may include
peak energy demand from the large customer facility's mining processing operations.
new text end

new text begin Subd. 13. new text end

new text begin Large energy facility. new text end

new text begin "Large energy facility" has the meaning given in section
216B.2421, subdivision 2, clause (1).
new text end

new text begin Subd. 14. new text end

new text begin Lifetime energy savings. new text end

new text begin "Lifetime energy savings" means the amount of
savings a particular energy conservation improvement is projected to produce over the
improvement's effective useful lifetime.
new text end

new text begin Subd. 15. new text end

new text begin Load management. new text end

new text begin "Load management" means an activity, service, or
technology that changes the timing or the efficiency of a customer's use of energy that allows
a utility or a customer to: (1) respond to local and regional energy system conditions; or (2)
reduce peak demand for electricity or natural gas. Load management that reduces a customer's
net annual energy consumption is also energy conservation.
new text end

new text begin Subd. 16. new text end

new text begin Low-income household. new text end

new text begin "Low-income household" means a household whose
household income is 60 percent or less of the state median household income.
new text end

new text begin Subd. 17. new text end

new text begin Low-income programs. new text end

new text begin "Low-income programs" means energy conservation
improvement programs that directly serve the needs of low-income households, including
low-income renters.
new text end

new text begin Subd. 18. new text end

new text begin Member. new text end

new text begin "Member" has the meaning given in section 308B.005, subdivision
15.
new text end

new text begin Subd. 19. new text end

new text begin Multifamily building. new text end

new text begin "Multifamily building" means a residential building
containing five or more dwelling units.
new text end

new text begin Subd. 20. new text end

new text begin Preweatherization measure. new text end

new text begin "Preweatherization measure" means an
improvement that is necessary to allow energy conservation improvements to be installed
in a home.
new text end

new text begin Subd. 21. new text end

new text begin Qualifying utility. new text end

new text begin "Qualifying utility" means a utility that supplies a customer
with energy that enables the customer to qualify as a large customer facility.
new text end

new text begin Subd. 22. new text end

new text begin Waste heat recovered and used as thermal energy. new text end

new text begin "Waste heat recovered
and used as thermal energy" means the capture of heat energy that would otherwise be
exhausted or dissipated to the environment from machinery, buildings, or industrial processes,
and productively using the recovered thermal energy where it was captured or distributing
it as thermal energy to other locations where it is used to reduce demand-side consumption
of natural gas, electric energy, or both.
new text end

new text begin Subd. 23. new text end

new text begin Waste heat recovery converted into electricity. new text end

new text begin "Waste heat recovery
converted into electricity" means an energy recovery process that converts to electricity
energy from the heat of exhaust stacks or pipes used for engines or manufacturing or
industrial processes, or from the reduction of high pressure in water or gas pipelines, that
would otherwise be lost.
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. 6.

new text begin [216B.2403] CONSUMER-OWNED UTILITIES; ENERGY CONSERVATION
AND OPTIMIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to:
new text end

new text begin (1) a cooperative electric association that provides retail service to more than 5,000
members;
new text end

new text begin (2) a municipality that provides electric service to more than 1,000 retail customers; and
new text end

new text begin (3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales
to natural gas retail customers.
new text end

new text begin Subd. 2. new text end

new text begin Consumer-owned utility; energy-savings goal. new text end

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

new text begin (1) energy savings from additional energy conservation improvements;
new text end

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

new text begin (3) net energy savings from efficient fuel-switching improvements that meet the criteria
under subdivision 8; or
new text end

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

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

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

new text begin Subd. 3. new text end

new text begin Consumer-owned utility; energy conservation and optimization plans. new text end

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

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

new text begin (1) state why each goal is projected to be unmet; and
new text end

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

new text begin (c) A plan filed under this subdivision must provide:
new text end

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

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

new text begin (d) The commissioner must evaluate a plan filed under this subdivision based on the
plan's likelihood to achieve the energy-savings goals established in subdivision 2. The
commissioner may make recommendations to a consumer-owned utility regarding ways to
increase the effectiveness of the consumer-owned utility's energy conservation activities
and programs under this subdivision. The commissioner may recommend that a
consumer-owned utility implement a cost-effective energy conservation program, including
an energy conservation program suggested by an outside source, including but not limited
to a political subdivision, nonprofit corporation, or community organization.
new text end

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

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

new text begin (g) A consumer-owned utility may annually spend and invest up to ten percent of the
total amount spent and invested on energy conservation improvements on research and
development projects that meet the definition of energy conservation improvement.
new text end

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

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

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

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

new text begin (2) recommission buildings;
new text end

new text begin (3) train building operators; and
new text end

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

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

new text begin (1) historical energy conservation improvement program achievements;
new text end

new text begin (2) customer class makeup;
new text end

new text begin (3) projected load growth;
new text end

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

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

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

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

new text begin Subd. 4. new text end

new text begin Consumer-owned utility; energy savings investment. new text end

new text begin (a) Except as otherwise
provided, a consumer-owned utility that the commissioner determines falls short of the
minimum energy savings goal from energy conservation improvements established in
subdivision 2, paragraph (a), for three consecutive years during which the utility has annually
spent on energy conservation improvements less than 1.5 percent of gross operating revenues
for an electric utility, or less than 0.5 percent of gross operating revenues for a natural gas
utility, must spend no less than the following amounts for energy conservation improvements:
new text end

new text begin (1) for a municipality, 0.5 percent of gross operating revenues from the sale of gas and
1.5 percent of gross operating revenues from the sale of electricity, excluding gross operating
revenues from electric and gas service provided in Minnesota to large electric customer
facilities; and
new text end

new text begin (2) for a cooperative electric association, 1.5 percent of gross operating revenues from
service provided in Minnesota, excluding gross operating revenues from service provided
in Minnesota to large electric customers facilities indirectly through a distribution cooperative
electric association.
new text end

new text begin (b) The commissioner must not impose the spending requirement under this subdivision
if the commissioner has determined that the utility has followed the commissioner's
recommendations, if any, provided under subdivision 3, paragraph (d).
new text end

new text begin (c) Upon request of a consumer-owned utility, the commissioner may reduce the amount
or duration of the spending requirement imposed under this subdivision, or both, if the
commissioner determines that the consumer-owned utility's failure to maintain the minimum
energy savings goal is the result of:
new text end

new text begin (1) a natural disaster or other emergency that is declared by the executive branch through
an emergency executive order that affects the consumer-owned utility's service area;
new text end

new text begin (2) a unique load distribution experienced by the consumer-owned utility; or
new text end

new text begin (3) other factors that the commissioner determines justifies a reduction.
new text end

new text begin (d) Unless the commissioner reduces the duration of the spending requirement under
paragraph (c), the spending requirement under this subdivision remains in effect until the
consumer-owned utility has met the minimum energy savings goal for three consecutive
years.
new text end

new text begin Subd. 5. new text end

new text begin Energy conservation programs for low-income households. new text end

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

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

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

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

new text begin (e) The commissioner must develop and establish guidelines for determining the eligibility
of multifamily buildings to participate in energy conservation programs provided to
low-income households. Notwithstanding the definition of low-income household in section
216B.2402, a consumer-owned utility or association may apply the most recent guidelines
published by the department for purposes of determining the eligibility of multifamily
buildings to participate in low-income programs. The commissioner must convene a
stakeholder group to review and update these guidelines by July 1, 2022, and at least once
every five years thereafter. The stakeholder group must include but is not limited to
representatives of public utilities; municipal electric or gas utilities; electric cooperative
associations; multifamily housing owners and developers; and low-income advocates.
new text end

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

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

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

new text begin Subd. 6. new text end

new text begin Recovery of expenses. new text end

new text begin The commission must allow a cooperative electric
association subject to rate regulation under section 216B.026 to recover expenses resulting
from: (1) a plan under this section; and (2) assessments and contributions to the energy and
conservation account under section 216B.241, subdivision 2a.
new text end

new text begin Subd. 7. new text end

new text begin Ownership of preweatherization measure or energy conservation
improvement. new text end

new text begin (a) A preweatherization measure or energy conservation improvement
installed in a building under this section, excluding a system owned by a consumer-owned
utility that is designed to turn off, limit, or vary the delivery of energy, is the exclusive
property of the building owner, except to the extent that the improvement is subject to a
security interest in favor of the consumer-owned utility in case of a loan to the building
owner for the improvement.
new text end

new text begin (b) A consumer-owned utility has no liability for loss, damage, or injury directly or
indirectly caused by a preweatherization measure or energy conservation improvement,
unless a consumer-owned utility is determined to have been negligent in purchasing,
installing, or modifying a preweatherization measure or energy conservation improvement.
new text end

new text begin Subd. 8. new text end

new text begin Criteria for efficient fuel-switching improvements. new text end

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

new text begin (1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basis;
new text end

new text begin (2) results in a net reduction of statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric consumer-owned utility, the reduction in emissions
must be measured based on the hourly emissions profile of the consumer-owned utility or
the utility's electricity supplier, as reported in the most recent resource plan approved by
the commission under section 216B.2422. If the hourly emissions profile is not available,
the commissioner must develop a method consumer-owned utilities must use to estimate
that value;
new text end

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

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

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

new text begin Subd. 9. new text end

new text begin Manner of filing and service. new text end

new text begin (a) A consumer-owned utility must submit the
filings required under this section to the department using the department's electronic filing
system. The commissioner may approve an exemption from this requirement if a
consumer-owned utility is unable to submit filings via the department's electronic filing
system. All other interested parties must submit filings to the department via the department's
electronic filing system whenever practicable but may also file by personal delivery or by
mail.
new text end

new text begin (b) The submission of a document to the department's electronic filing system constitutes
service on the department. If a department rule requires service of a notice, order, or other
document by the department, a consumer-owned utility, or an interested party upon persons
on a service list maintained by the department, service may be made by personal delivery,
mail, or electronic service. Electronic service may be made only to persons on the service
list that have previously agreed in writing to accept electronic service at an e-mail address
provided to the department for electronic service purposes.
new text end

new text begin Subd. 10. new text end

new text begin Assessment. new text end

new text begin The commission or department may assess consumer-owned
utilities subject to this section to carry out the purposes of section 216B.241, subdivisions
1d, 1e, and 1f. An assessment under this subdivision must be proportionate to a
consumer-owned utility's gross operating revenue from sales of gas or electric service in
Minnesota during the previous calendar year, as applicable. Assessments under this
subdivision are not subject to the cap on assessments under section 216B.62 or any other
law.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2020, section 216B.241, subdivision 1a, is amended to read:

Subd. 1a.

deleted text begin Investment, expenditure, and contribution; public utility deleted text end new text begin Large customer
facility new text end .

deleted text begin (a) For purposes of this subdivision and subdivision 2, "public utility" has the
meaning given it in section 216B.02, subdivision 4. Each public utility shall spend and
invest for energy conservation improvements under this subdivision and subdivision 2 the
following amounts:
deleted text end

deleted text begin (1) for a utility that furnishes gas service, 0.5 percent of its gross operating revenues
from service provided in the state;
deleted text end

deleted text begin (2) for a utility that furnishes electric service, 1.5 percent of its gross operating revenues
from service provided in the state; and
deleted text end

deleted text begin (3) for a utility that furnishes electric service and that operates a nuclear-powered electric
generating plant within the state, two percent of its gross operating revenues from service
provided in the state.
deleted text end

deleted text begin For purposes of this paragraph (a), "gross operating revenues" do not include revenues
from large customer facilities exempted under paragraph (b), or from commercial gas
customers that are exempted under paragraph (c) or (e).
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end The owner of a large customer facility may petition the commissioner to exempt
both electric and gas utilities serving the large customer facility from deleted text begin the investment and
expenditure requirements of paragraph (a) deleted text end new text begin contributing to investments and expenditures
made under an energy and conservation optimization plan filed under subdivision 2 or
section 216B.2403, subdivision 3, new text end with respect to retail revenues attributable to the large
customer facility. The filing must include a discussion of the competitive or economic
pressures facing the owner of the facility and the efforts taken by the owner to identify,
evaluate, and implement energy conservation and efficiency improvements. A filing
submitted on or before October 1 of any year must be approved within 90 days and become
effective January 1 of the year following the filing, unless the commissioner finds that the
owner of the large customer facility has failed to take reasonable measures to identify,
evaluate, and implement energy conservation and efficiency improvements. If a facility
qualifies as a large customer facility solely due to its peak electrical demand or annual
natural gas usage, the exemption may be limited to the qualifying utility if the commissioner
finds that the owner of the large customer facility has failed to take reasonable measures to
identify, evaluate, and implement energy conservation and efficiency improvements with
respect to the nonqualifying utility. Once an exemption is approved, the commissioner may
request the owner of a large customer facility to submit, not more often than once every
five years, a report demonstrating the large customer facility's ongoing commitment to
energy conservation and efficiency improvement after the exemption filing. The
commissioner may request such reports for up to ten years after the effective date of the
exemption, unless the majority ownership of the large customer facility changes, in which
case the commissioner may request additional reports for up to ten years after the change
in ownership occurs. The commissioner may, within 180 days of receiving a report submitted
under this paragraph, rescind any exemption granted under this paragraph upon a
determination that the large customer facility is not continuing to make reasonable efforts
to identify, evaluate, and implement energy conservation improvements. A large customer
facility that is, under an order from the commissioner, exempt from the investment and
expenditure requirements of paragraph (a) as of December 31, 2010, is not required to
submit a report to retain its exempt status, except as otherwise provided in this paragraph
with respect to ownership changes. No exempt large customer facility may participate in a
utility conservation improvement program unless the owner of the facility submits a filing
with the commissioner to withdraw its exemption.

deleted text begin (c) deleted text end new text begin (b) new text end A commercial gas customer that is not a large customer facility and that purchases
or acquires natural gas from a public utility having fewer than 600,000 natural gas customers
in Minnesota may petition the commissioner to exempt gas utilities serving the commercial
gas customer from deleted text begin the investment and expenditure requirements of paragraph (a) deleted text end new text begin contributing
to investments and expenditures made under an energy and conservation optimization plan
filed under subdivision 2 or section 216B.2403, subdivision 3, new text end with respect to retail revenues
attributable to the commercial gas customer. The petition must be supported by evidence
demonstrating that the commercial gas customer has acquired or can reasonably acquire
the capability to bypass use of the utility's gas distribution system by obtaining natural gas
directly from a supplier not regulated by the commission. The commissioner shall grant the
exemption if the commissioner finds that the petitioner has made the demonstration required
by this paragraph.

deleted text begin (d) The commissioner may require investments or spending greater than the amounts
required under this subdivision for a public utility whose most recent advance forecast
required under section 216B.2422 or 216C.17 projects a peak demand deficit of 100
megawatts or greater within five years under midrange forecast assumptions.
deleted text end

deleted text begin (e) deleted text end new text begin (c) new text end A public utility new text begin , consumer-owned utility, new text end or owner of a large customer facility
may appeal a decision of the commissioner under paragraph new text begin (a) or new text end (b) deleted text begin , (c), or (d) deleted text end to the
commission under subdivision 2. In reviewing a decision of the commissioner under
paragraph new text begin (a) or new text end (b), deleted text begin (c), or (d), deleted text end the commission shall rescind the decision if it finds deleted text begin that the
required investments or spending will:
deleted text end

deleted text begin (1) not result in cost-effective energy conservation improvements; or
deleted text end

deleted text begin (2) otherwise deleted text end new text begin the decision is new text end not deleted text begin be deleted text end in the public interest.

new text begin (d) A public utility is prohibited from spending for or investing in energy conservation
improvements that directly benefit a large energy facility or a large electric customer facility
to which the commissioner has issued an exemption under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2020, section 216B.241, subdivision 1c, is amended to read:

Subd. 1c.

new text begin Public utility; new text end energy-saving goals.

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

(b) deleted text begin Each individual deleted text end new text begin A public new text end utility deleted text begin and association shall have deleted text end new text begin providing electric service
has new text end an annual energy-savings goal equivalent to deleted text begin 1.5 deleted text end new text begin 1.75 new text end percent of gross annual retail
energy sales unless modified by the commissioner under paragraph deleted text begin (d). deleted text end new text begin (c). A public utility
providing natural gas service has an annual energy-savings goal equivalent to one percent
of gross annual retail energy sales, which must not be lowered by the commissioner. new text end The
savings goals must be calculated based on the most recent three-year weather-normalized
average. A new text begin public new text end utility deleted text begin or association deleted text end new text begin providing electric service new text end may elect to carry forward
energy savings in excess of deleted text begin 1.5 deleted text end new text begin 1.75 new text end percent for a year to the succeeding three calendar
years, except that savings from electric utility infrastructure projects allowed under paragraph
(d) may be carried forward for five years. new text begin A public utility providing natural gas service may
elect to carry forward energy savings in excess of one percent for a year to the succeeding
three calendar years. new text end A particular energy savings can new text begin only new text end be used deleted text begin only for deleted text end new text begin to meet new text end one
year's goal.

deleted text begin (c) The commissioner must adopt a filing schedule that is designed to have all utilities
and associations operating under an energy-savings plan by calendar year 2010.
deleted text end

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

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

deleted text begin A utility or association may include in its energy conservation plan energy savings from deleted text end new text begin
The balance of the 1.75 percent annual energy savings goal may be achieved through energy
savings from:
new text end

new text begin (1) additional energy conservation improvements;
new text end

new text begin (2) new text end electric utility infrastructure projects approved by the commission under section
216B.1636 new text begin that result in increased efficiency greater than would have occurred through
normal maintenance activity; new text end or deleted text begin waste heat recovery converted into electricity projects that
may count as energy savings in addition to a minimum energy-savings goal of at least one
percent for energy conservation improvements. Energy savings from electric utility
infrastructure projects, as defined in section 216B.1636, may be included in the energy
conservation plan of a municipal utility or cooperative electric association. Electric utility
infrastructure projects must result in increased energy efficiency greater than that which
would have occurred through normal maintenance activity
deleted text end

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

deleted text begin (e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.
deleted text end

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

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

deleted text begin (h) By January 15, 2010, the commissioner shall report to the legislature whether the
spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.
deleted text end

deleted text begin (i) This subdivision does not apply to:
deleted text end

deleted text begin (1) a cooperative electric association with fewer than 5,000 members;
deleted text end

deleted text begin (2) a municipal utility with fewer than 1,000 retail electric customers; or
deleted text end

deleted text begin (3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales
to retail natural gas customers.
deleted 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. 9.

Minnesota Statutes 2020, section 216B.241, subdivision 1d, is amended to read:

Subd. 1d.

Technical assistance.

(a) The commissioner shall evaluate energy conservation
improvement programs new text begin filed under this section and section 216B.2403 new text end on the basis of
cost-effectiveness and the reliability of the technologies employed. The commissioner shall,
by order, establish, maintain, and update energy-savings assumptions that must be used new text begin by
utilities new text end when filing energy conservation improvement programs. new text begin The department must track
a public utility's or consumer-owned utility's lifetime energy savings and cumulative lifetime
energy savings reported in plans submitted under this section and section 216B.2403.
new text end

new text begin (b) new text end The commissioner shall establish an inventory of the most effective energy
conservation programs, techniques, and technologies, and encourage all Minnesota utilities
to implement them, where appropriate deleted text begin , in their service territories deleted text end . The commissioner shall
describe these programs in sufficient detail to provide a utility reasonable guidance
concerning implementation. The commissioner shall prioritize the opportunities in order of
potential energy savings and in order of cost-effectiveness.

new text begin (c) new text end The commissioner may contract with a third party to carry out any of the
commissioner's duties under this subdivision, and to obtain technical assistance to evaluate
the effectiveness of any conservation improvement program.

new text begin (d) new text end The commissioner may assess up to $850,000 annually for the purposes of this
subdivision. The assessments must be deposited in the state treasury and credited to the
energy and conservation account created under subdivision 2a. An assessment made under
this subdivision is not subject to the cap on assessments provided by section 216B.62, or
any other law.

deleted text begin (b) Of the assessment authorized under paragraph (a), the commissioner may expend
up to $400,000 annually for the purpose of developing, operating, maintaining, and providing
technical support for a uniform electronic data reporting and tracking system available to
all utilities subject to this section, in order to enable accurate measurement of the cost and
energy savings of the energy conservation improvements required by this section. This
paragraph expires June 30, 2018.
deleted text end

new text begin (e) The commissioner must work with stakeholders to develop technical guidelines that
public utilities and consumer-owned utilities must use to:
new text end

new text begin (1) determine whether deployment of a fuel-switching improvement meets the criteria
established in subdivision 11, paragraph (e), or section 216B.2403, subdivision 8, as
applicable; and
new text end

new text begin (2) calculate the amount of energy saved by deploying a fuel-switching improvement.
new text end

new text begin The guidelines under this paragraph must be issued by the commissioner by order no later
than March 15, 2022, and must be updated as the commissioner determines is necessary.
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. 10.

Minnesota Statutes 2020, section 216B.241, subdivision 1f, is amended to read:

Subd. 1f.

Facilities energy efficiency.

(a) The commissioner of administration and the
commissioner of commerce shall maintain and, as needed, revise the sustainable building
design guidelines developed under section 16B.325.

(b) The commissioner of administration and the commissioner of commerce shall maintain
and update the benchmarking tool developed under Laws 2001, chapter 212, article 1, section
3, so that all public buildings can use the benchmarking tool to maintain energy use
information for the purposes of establishing energy efficiency benchmarks, tracking building
performance, and measuring the results of energy efficiency and conservation improvements.

(c) The commissioner shall require that utilities include in their conservation improvement
plans programs that facilitate professional engineering verification to qualify a building as
Energy Star-labeled, Leadership in Energy and Environmental Design (LEED) certified, or
Green Globes-certified. deleted text begin The state goal is to achieve certification of 1,000 commercial
buildings as Energy Star-labeled, and 100 commercial buildings as LEED-certified or Green
Globes-certified by December 31, 2010.
deleted text end

(d) The commissioner may assess up to $500,000 annually for the purposes of this
subdivision. The assessments must be deposited in the state treasury and credited to the
energy and conservation account created under subdivision 2a. An assessment made under
this subdivision is not subject to the cap on assessments provided by section 216B.62, or
any other law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2020, section 216B.241, subdivision 1g, is amended to read:

Subd. 1g.

Manner of filing and service.

(a) A public utility deleted text begin , generation and transmission
cooperative electric association, municipal power agency, cooperative electric association,
and municipal utility deleted text end shall submit filings to the department via the department's electronic
filing system. The commissioner may approve an exemption from this requirement in the
event deleted text begin an affected deleted text end new text begin a public new text end utility deleted text begin or association deleted text end is unable to submit filings via the department's
electronic filing system. All other interested parties shall submit filings to the department
via the department's electronic filing system whenever practicable but may also file by
personal delivery or by mail.

(b) Submission of a document to the department's electronic filing system constitutes
service on the department. Where department rule requires service of a notice, order, or
other document by the department, new text begin public new text end utility, deleted text begin association, deleted text end or interested party upon
persons on a service list maintained by the department, service may be made by personal
delivery, mail, or electronic service, except that electronic service may only be made upon
persons on the service list who have previously agreed in writing to accept electronic service
at an electronic address provided to the department for electronic service purposes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2020, section 216B.241, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Programs deleted text end new text begin Public utility; energy conservation and optimization plans new text end .

(a)
The commissioner may require new text begin a new text end public deleted text begin utilities deleted text end new text begin utility new text end to make investments and expenditures
in energy conservation improvements, explicitly setting forth the interest rates, prices, and
terms under which the improvements must be offered to the customers. deleted text begin The required
programs must cover no more than a three-year period.
deleted text end

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

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

deleted text begin (b) deleted text end new text begin (d) new text end The commissioner may require a utility subject to subdivision 1c to make an
energy conservation improvement investment or expenditure whenever the commissioner
finds that the improvement will result in energy savings at a total cost to the utility less than
the cost to the utility to produce or purchase an equivalent amount of new supply of energy.
deleted text begin The commissioner shall nevertheless ensure that every public utility operate one or more
programs under periodic review by the department.
deleted text end

deleted text begin (c) deleted text end new text begin (e) new text end Each public utility subject to new text begin this new text end subdivision deleted text begin 1a deleted text end may spend and invest annually
up to ten percent of the total amount deleted text begin required to be deleted text end spent and invested on energy conservation
improvements under this section by the new text begin public new text end utility on research and development projects
that meet the definition of energy conservation improvement deleted text begin in subdivision 1 and that are
funded directly by the public utility deleted text end .

deleted text begin (d) A public utility may not spend for or invest in energy conservation improvements
that directly benefit a large energy facility or a large electric customer facility for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b).
deleted text end

new text begin (f) new text end The commissioner shall consider and may require a new text begin public new text end utility to undertake deleted text begin a deleted text end new text begin an
energy conservation new text end program suggested by an outside source, including a political
subdivision, a nonprofit corporation, or community organization.

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

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

deleted text begin (g) A gas utility may not spend for or invest in energy conservation improvements that
directly benefit a large customer facility or commercial gas customer facility for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or
(e). The commissioner shall consider and may require a utility to undertake a program
suggested by an outside source, including a political subdivision, a nonprofit corporation,
or a community organization.
deleted text end

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

new text begin (j) The commissioner may require investments or spending greater than the amounts
proposed in a plan filed under this subdivision or section 216C.17 for a public utility whose
most recent advanced forecast required under section 216B.2422 projects a peak demand
deficit of 100 megawatts or more within five years under midrange forecast assumptions.
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. 13.

Minnesota Statutes 2020, section 216B.241, subdivision 2b, is amended to read:

Subd. 2b.

Recovery of expenses.

new text begin (a) new text end The commission shall allow a new text begin public new text end utility to
recover expenses resulting from deleted text begin a deleted text end new text begin an energy new text end conservation deleted text begin improvement program required deleted text end new text begin
and optimization plan approved new text end by the department new text begin under this section new text end and contributions and
assessments to the energy and conservation account, unless the recovery would be
inconsistent with a financial incentive proposal approved by the commission. deleted text begin The commission
shall allow a cooperative electric association subject to rate regulation under section
216B.026, to recover expenses resulting from energy conservation improvement programs,
load management programs, and assessments and contributions to the energy and
conservation account unless the recovery would be inconsistent with a financial incentive
proposal approved by the commission. In addition,
deleted text end

new text begin (b) new text end A new text begin public new text end utility may file annually, or the Public Utilities Commission may require
the new text begin public new text end utility to file, and the commission may approve deleted text begin , deleted text end rate schedules containing
provisions for the automatic adjustment of charges for utility service in direct relation to
changes in the expenses of the new text begin public new text end utility for real and personal property taxes, fees, and
permits, the amounts of which the new text begin public new text end utility cannot control. A public utility is eligible
to file for adjustment for real and personal property taxes, fees, and permits under this
subdivision only if, in the year previous to the year in which it files for adjustment, it has
spent or invested at least 1.75 percent of its gross revenues from provision of electric service,
excluding gross operating revenues from electric service provided in the state to large electric
customer facilities for which the commissioner has issued an exemption under subdivision
1a, paragraph (b), and 0.6 percent of its gross revenues from provision of gas service,
excluding gross operating revenues from gas services provided in the state to large electric
customer facilities for which the commissioner has issued an exemption under subdivision
1a, paragraph (b), for that year for energy conservation improvements under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2020, section 216B.241, subdivision 3, is amended to read:

Subd. 3.

Ownership of new text begin preweatherization measure or new text end energy conservation
improvement.

deleted text begin An deleted text end new text begin (a) A preweatherization measure or new text end energy conservation improvement
made to or installed in a building in accordance with this section, except systems owned by
deleted text begin the deleted text end new text begin a public new text end utility and designed to turn off, limit, or vary the delivery of energy, are the
exclusive property of the owner of the building except to the extent that the improvement
is subjected to a security interest in favor of the new text begin public new text end utility in case of a loan to the building
owner. deleted text begin The
deleted text end

new text begin (b) A public new text end utility has no liability for loss, damage new text begin , new text end or injury caused directly or indirectly
by deleted text begin an deleted text end new text begin a preweatherization measure or new text end energy conservation improvement except for negligence
by the utility in deleted text begin purchase, installation, or modification of the product. deleted text end new text begin purchasing, installing,
or modifying a preweatherization measure or energy conservation improvement.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2020, section 216B.241, subdivision 5, is amended to read:

Subd. 5.

Efficient lighting program.

(a) Each public utility deleted text begin , cooperative electric
association, and municipal deleted text end new text begin and consumer-owned new text end utility that provides electric service to
retail customers and is subject to subdivision 1c new text begin or section 216B.2403 new text end shall include as part
of its conservation improvement activities a program to strongly encourage the use of LED
lamps. The program must include at least a public information campaign to encourage use
of LED lamps and proper management of spent lamps by all customer classifications.

(b) A public utility that provides electric service at retail to 200,000 or more customers
shall establish, either directly or through contracts with other persons, including lamp
manufacturers, distributors, wholesalers, and retailers and local government units, a system
to collect for delivery to a reclamation or recycling facility spent fluorescent and
high-intensity discharge lamps from households and from small businesses as defined in
section 645.445 that generate an average of fewer than ten spent lamps per year.

(c) A collection system must include establishing reasonably convenient locations for
collecting spent lamps from households and financial incentives sufficient to encourage
spent lamp generators to take the lamps to the collection locations. Financial incentives may
include coupons for purchase of new LED lamps, a cash back system, or any other financial
incentive or group of incentives designed to collect the maximum number of spent lamps
from households and small businesses that is reasonably feasible.

(d) A public utility that provides electric service at retail to fewer than 200,000 customers,
deleted text begin a cooperative electric association, or a municipal deleted text end new text begin or a consumer-owned new text end utility that provides
electric service at retail to customers may establish a collection system under paragraphs
(b) and (c) as part of conservation improvement activities required under this section.

(e) The commissioner of the Pollution Control Agency may not, unless clearly required
by federal law, require a public utility deleted text begin , cooperative electric association, or municipality deleted text end new text begin or
consumer-owned utility new text end that establishes a household fluorescent and high-intensity discharge
lamp collection system under this section to manage the lamps as hazardous waste as long
as the lamps are managed to avoid breakage and are delivered to a recycling or reclamation
facility that removes mercury and other toxic materials contained in the lamps prior to
placement of the lamps in solid waste.

(f) If a public utility deleted text begin , cooperative electric association, or municipal deleted text end new text begin or consumer-owned new text end
utility contracts with a local government unit to provide a collection system under this
subdivision, the contract must provide for payment to the local government unit of all the
unit's incremental costs of collecting and managing spent lamps.

(g) All the costs incurred by a public utility deleted text begin , cooperative electric association, or municipal deleted text end new text begin
or consumer-owned new text end utility to promote the use of LED lamps and to deleted text begin collect fluorescent and
high-intensity discharge deleted text end new text begin collect LED new text end lamps under this subdivision are conservation
improvement spending under this section.

(h) For the purposes of this subdivision, "LED lamp" means a light-emitting diode deleted text begin lamp
that consists of a solid state device that emits visible light when an electric current passes
through a semiconductor deleted text end new text begin bulb or lighting product 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. 16.

Minnesota Statutes 2020, section 216B.241, subdivision 7, is amended to read:

Subd. 7.

Low-income programs.

(a) The commissioner shall ensure that each new text begin public
new text end utility deleted text begin and association deleted text end subject to subdivision 1c provides deleted text begin low-income deleted text end new text begin energy conservation new text end
programs new text begin to low-income households new text end . When approving spending and energy-savings goals
for low-income programs, the commissioner shall consider historic spending and participation
levels, energy savings deleted text begin for deleted text end new text begin achieved by new text end low-income programs, and the number of low-income
persons residing in the utility's service territory. A deleted text begin municipal utility that furnishes gas service
must spend at least 0.2 percent, and a deleted text end public utility furnishing gas service must spend at
least deleted text begin 0.4 deleted text end new text begin 0.8 new text end percent deleted text begin , deleted text end of its most recent three-year average gross operating revenue from
residential customers in the state on low-income programs. A new text begin public new text end utility deleted text begin or association deleted text end
that furnishes electric service must spend at least deleted text begin 0.1 deleted text end new text begin 0.4 new text end percent of its gross operating
revenue from residential customers in the state on low-income programs. deleted text begin 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.
deleted text end

(b) To meet the requirements of paragraph (a), a new text begin public new text end utility deleted text begin or association deleted text end may
contribute money to the energy and conservation account new text begin established under subdivision 2a new text end .
An energy conservation improvement plan must state the amount, if any, of low-income
energy conservation improvement funds the new text begin public new text end utility deleted text begin or association deleted text end 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 new text begin energy conservation new text end programs to utilize
deleted text begin money contributed deleted text end new text begin contributions made new text end 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
deleted text begin engaged in deleted text end providing energy and weatherization assistance to low-income deleted text begin persons deleted text end new text begin
households new text end . deleted text begin Money contributed deleted text end new text begin Contributions made new text end to the energy and conservation account
under paragraph (b) must provide programs for low-income deleted text begin persons deleted text end new text begin households new text end , including
low-income renters, in the service territory of the new text begin public new text end utility deleted text begin or association deleted text end 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 deleted text begin (g) deleted text end new text begin (f) new text end . The commissioner may contract
with a political subdivision, nonprofit or community organization, public utility, deleted text begin municipality, deleted text end
or deleted text begin cooperative electric association deleted text end new text begin consumer-owned utility new text end to implement low-income
programs funded through the energy and conservation account.

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

new text begin (e) The commissioner must develop and establish guidelines to determine the eligibility
of multifamily buildings to participate in low-income energy conservation programs.
Notwithstanding the definition of low-income household in section 216B.2402, for purposes
of determining the eligibility of multifamily buildings for low-income programs a public
utility may apply the most recent guidelines published by the department. The commissioner
must convene a stakeholder group to review and update guidelines by July 1, 2022, and at
least once every five years thereafter. The stakeholder group must include but is not limited
to representatives of public utilities as defined in section 216B.02, subdivision 4; municipal
electric or gas utilities; electric cooperative associations; multifamily housing owners and
developers; and low-income advocates.
new text end

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

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

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

deleted text begin (e) deleted text end new text begin (i) new text end 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 new text begin public new text end 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 new text begin public new text end utility. The energy and demand savings may, at the discretion of the new text begin public new text end 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 begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2020, section 216B.241, subdivision 8, is amended to read:

Subd. 8.

Assessment.

The commission or department may assess new text begin public new text end utilities subject
to this section deleted text begin in proportion to their respective deleted text end new text begin to carry out the purposes of subdivisions 1d,
1e, and 1f. An assessment under this subdivision must be proportionate to a public utility's new text end
gross operating revenue from sales of gas or electric service within deleted text begin the state deleted text end new text begin Minnesota new text end
during the last calendar year deleted text begin to carry out the purposes of subdivisions 1d, 1e, and 1f. Those
assessments deleted text end new text begin , as applicable. Assessments made under this subdivision new text end are not subject to the
cap on assessments provided by section 216B.62, or any other law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Programs for efficient fuel-switching improvements; electric utilities. new text end

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

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

new text begin (c) A public utility may file a rate schedule with the commission that provides for annual
cost recovery of reasonable and prudent costs incurred to implement and promote efficient
fuel-switching programs. The commission may not approve a financial incentive to encourage
efficient fuel-switching programs operated by a public utility providing electric service.
new text end

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

new text begin (1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basis;
new text end

new text begin (2) results in a net reduction of statewide greenhouse gas emissions as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric utility, the reduction in emissions must be measured
based on the hourly emission profile of the electric utility, using the hourly emissions profile
in the most recent resource plan approved by the commission under section 216B.2422;
new text end

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Programs for efficient fuel-switching improvements; natural gas
utilities. new text end

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Cost-effective load management programs. new text end

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

new text begin (b) The commissioner may approve a proposed program if the commissioner determines
the program is cost-effective, considering the costs and benefits to ratepayers, the utility,
participants, and society.
new text end

new text begin (c) A public utility providing retail service to Minnesota customers may file rate schedules
with the commission that provide for annual cost recovery of reasonable and prudent costs
incurred to implement and promote cost-effective load management programs approved by
the department under this subdivision.
new text end

new text begin (d) In determining whether to approve, modify, or reject a proposal made by the
department or a public utility for an incentive plan to encourage investments in load
management programs, the commission shall consider whether the plan:
new text end

new text begin (1) is needed to increase the public utility's investment in cost-effective load management;
new text end

new text begin (2) is compatible with the interest of the public utility's ratepayers; and
new text end

new text begin (3) links the incentive to the public utility's performance in achieving cost-effective load
management.
new text end

new text begin (e) The commission may structure an incentive plan to encourage cost-effective load
management programs as an asset on which a public utility earns a rate of return at a level
the commission determines is reasonable and in the public interest.
new text end

new text begin (f) The commission may include the net benefits from a load management activity
integrated with an energy efficiency program approved under this section in the net benefits
of the energy efficiency program for purposes of a financial incentive program under section
216B.16, subdivision 6c, if the department determines the primary purpose of the load
management activity is energy efficiency.
new text end

new text begin (g) A public utility is not eligible for a financial incentive for a load management program
in any year in which the utility achieves energy savings below one percent of gross annual
retail energy sales, excluding savings achieved through load management programs.
new text end

new text begin (h) The commission may include net benefits from a particular load management activity
in an incentive plan under this subdivision or section 216B.16, subdivision 6c, but not both.
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. 21.

Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Minnesota efficient technology accelerator. new text end

new text begin (a) A nonprofit organization
with extensive experience implementing energy efficiency programs and conducting
energy-efficient technology research in Minnesota may file a proposal with the commissioner
for a program to accelerate deployment and reduce the cost of emerging and innovative
efficient technologies and approaches and result in lower energy costs for Minnesota
ratepayers. The program must include strategic initiatives with technology manufacturers
to improve the efficiency and performance of products, and with equipment installers and
other key actors in the technology supply chain. The program's goals are to achieve
cost-effective energy savings for Minnesota utilities, provide bill savings to Minnesota
utility consumers, enhance employment opportunities in Minnesota, and avoid greenhouse
gas emissions.
new text end

new text begin (b) Prior to developing and filing a proposal, the nonprofit must submit to the
commissioner a notice of intent to file a proposal under this subdivision that describes the
nonprofit's eligibility with respect to the requirements of paragraph (a). The commissioner
shall review the notice of intent and issue a determination of eligibility within 30 days of
the date the notice of intent is filed.
new text end

new text begin (c) Upon receiving approval from the commissioner to file a proposal under this section,
a nonprofit organization must engage interested stakeholders in discussions regarding, at a
minimum, the following elements required of a program proposal under this subdivision:
new text end

new text begin (1) a proposed budget and operational guidelines for the accelerator;
new text end

new text begin (2) proposed methodologies to estimate, evaluate, and allocate energy savings and net
benefits from program activities. Energy savings and net benefits from program activities
must be allocated to participating utilities and must be considered when determining the
cost-effectiveness of energy savings achieved by the program and related incentives;
new text end

new text begin (3) a process to identify and select technologies that:
new text end

new text begin (i) address energy use in residential, commercial, and industrial buildings; and
new text end

new text begin (ii) benefit utility customers in proportion to the funds contributed to the program by
electric and natural gas utilities, respectively; and
new text end

new text begin (4) a process to identify and track performance metrics for each technology selected so
that progress toward achieving energy savings can be measured, including one or more
methods to evaluate cost-effectiveness.
new text end

new text begin (d) No earlier than 180 days from the date of the commissioner's eligibility determination
under paragraph (b), the nonprofit may file a program proposal under this subdivision. The
filing must address each of the elements listed in paragraph (c), clauses (1) to (4), and the
recommendations and concerns identified in the stakeholder engagement process required
under paragraph (c). Within 90 days of the filing of the proposal, after notice and comment,
and after the commissioner has considered the estimated program costs and benefits from
the perspectives of ratepayers, utilities, and society, the commissioner shall approve, modify,
or reject the proposal. An approved program may have a term extending up to five years,
and may be renewed by the commissioner one or more times for additional terms of up to
five years.
new text end

new text begin (e) Upon approval of a program under paragraph (d), each public utility with over 30,000
customers must participate in the program and contribute to the approved program budget
in proportion to the public utility's gross operating revenue from sales of gas or electric
service in Minnesota, excluding revenues from large customer facilities exempted under
subdivision 1a. A participating utility is not required to contribute more than the following
percentages of the utility's spending approved by the commission in the plan filed under
subdivision 2: (1) two percent in the program's initial two years; (2) 3.5 percent in the
program's third and fourth years; and (3) five percent each year thereafter. Other utilities
may elect to participate in an approved program.
new text end

new text begin (f) A participating utility may request the commissioner to adjust its approved annual
budget under subdivision 2, if necessary to meet approved energy savings goals under
subdivision 2. Other utilities may elect to participate in the accelerator program.
new text end

new text begin (g) Costs incurred by a public utility under this subdivision are recoverable under
subdivision 2b as an assessment to the energy and conservation account. Amounts provided
to the account under this subdivision are not subject to the cap on assessments in section
216B.62. The commissioner may make expenditures from the account for the purposes of
this subdivision, including amounts necessary to reimburse administrative costs incurred
by the department under this subdivision. Costs for research projects under this subdivision
that the commissioner determines may be duplicative to projects that would be eligible for
funding under subdivision 1e, paragraph (a), may be deducted from the assessment under
subdivision 1e for utilities participating in the accelerator.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately upon enactment.
new text end

Sec. 22.

Minnesota Statutes 2020, section 216B.2412, subdivision 3, is amended to read:

Subd. 3.

Pilot programs.

The commission shall allow one or more rate-regulated utilities
to participate in a pilot program to assess the merits of a rate-decoupling strategy to promote
energy efficiency and conservation. Each pilot program must utilize the criteria and standards
established in subdivision 2 and be designed to determine whether a rate-decoupling strategy
achieves energy savings. On or before a date established by the commission, the commission
shall require electric and gas utilities that intend to implement a decoupling program to file
a decoupling pilot plan, which shall be approved or approved as modified by the commission.
A pilot program may not exceed three years in length. Any extension beyond three years
can only be approved in a general rate case, unless that decoupling program was previously
approved as part of a general rate case. deleted text begin The commission shall report on the programs annually
to the chairs of the house of representatives and senate committees with primary jurisdiction
over energy policy.
deleted 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. 23.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Energy storage systems; installation. new text end

new text begin The commission shall, as part of an
order with respect to a public utility's integrated resource plan filed under this section,
require a public utility to install one or more energy storage systems, provided that the
commission finds the investments are reasonable, prudent, and in the public interest. In
determining the aggregate capacity of the energy storage systems ordered under this
subdivision, the commission must consider the public utility's assessment of energy storage
systems contained in the public utility's integrated resource plan, as required under
subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any order issued to a public utility by the commission in an integrated resource
plan proceeding after July 1, 2021.
new text end

Sec. 24.

new text begin [216B.2427] ENERGY STORAGE SYSTEM; APPLICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

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

new text begin Subd. 2. new text end

new text begin Application requirement. new text end

new text begin No later than one year following the commission's
order to a public utility in an integrated resource plan proceeding under section 216B.2422,
the public utility must submit an application to the commission for review and approval to
install one or more energy storage systems whose aggregate capacity meets or exceeds that
ordered by the commission in the public utility's most recent integrated resource plan
proceeding under section 216B.2422, subdivision 7a.
new text end

new text begin Subd. 3. new text end

new text begin Application contents. new text end

new text begin (a) Each application submitted under this section shall
contain the following information:
new text end

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

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

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

new text begin (iii) the location of the project and a description of the analysis conducted to determine
the location;
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Commission review. new text end

new text begin The commission shall review each proposal submitted
under this section and may approve, reject, or modify the proposal. The commission shall
approve a proposal the commission determines is in the public interest and reasonably
balances the value derived from the deployment of an energy storage system for ratepayers
and the public utility's operations with the costs of procuring, constructing, operating, and
maintaining the energy storage system.
new text end

new text begin Subd. 5. new text end

new text begin Cost recovery. new text end

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

new text begin Subd. 6. new text end

new text begin Commission authority; orders. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2020, section 216C.05, subdivision 2, is amended to read:

Subd. 2.

Energy policy goals.

It is the energy policy of the state of Minnesota that:

(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of
electricity and natural gas deleted text begin be deleted text end new text begin is new text end achieved through cost-effective energy efficiency;

(2) the per capita use of fossil fuel as an energy input deleted text begin be deleted text end new text begin is new text end reduced by 15 percent by the
year 2015, through increased reliance on energy efficiency and renewable energy alternatives;

(3) 25 percent of the total energy used in deleted text begin the state be deleted text end new text begin Minnesota is new text end derived from renewable
energy resources by the year 2025; deleted text begin and
deleted text end

new text begin (4) statewide greenhouse gas emissions from energy use in existing commercial and
residential buildings is reduced by 50 percent by 2035 through: (i) continued use of the
most effective current energy-saving incentives programs, evaluated by participation and
efficacy; and (ii) development and implementation of new programs, prioritizing solutions
that achieve the highest overall carbon reduction; and
new text end

deleted text begin (4) deleted text end new text begin (5) new text end retail electricity rates for each customer class deleted text begin be deleted text end new text begin are new text end at least five percent below
the national average.

Sec. 26.

new text begin [216C.402] REBUILD RIGHT GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Cold climate air-source heat pump" means a mechanism that heats and cools indoor
air by transferring heat from outdoor or indoor air using a fan, a refrigerant-filled heat
exchanger, and an inverter-driven compressor that varies the pressure of the refrigerant to
warm or cool the refrigerant vapor.
new text end

new text begin (c) "Commercial building" means a building:
new text end

new text begin (1) with an occupant that is (i) engaged in wholesale or retail trade or the provision of
services, or (ii) a restaurant; or
new text end

new text begin (2) that contains four or more dwelling units.
new text end

new text begin (d) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (e).
new text end

new text begin (e) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
new text end

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

new text begin (g) "Envelope" means the physical elements separating a building's interior and exterior.
new text end

new text begin (h) "Grantee" means a person awarded a grant by the commissioner under this section.
new text end

new text begin (i) "Ground-source heat pump" means an earth-coupled heating or cooling device
consisting of a sealed closed-loop piping system installed in the ground to transfer heat
between the surrounding earth and a building.
new text end

new text begin (j) "Institutional building" means a building with occupants that provide health care,
educational, or government services.
new text end

new text begin (k) "Preweatherization measure" means a general repair or measure that affects the health
or safety of residents of a dwelling unit and that is required under federal law in order for
weatherization services to be provided to the dwelling unit.
new text end

new text begin (l) "Qualified energy technology" means:
new text end

new text begin (1) a solar energy system;
new text end

new text begin (2) a measure installed in a building that results in energy efficiency or energy
conservation, excluding a natural gas furnace that does not function solely as a backup to
a primary heating system utilizing a ground-source heat pump or a cold climate air-source
heat pump; or
new text end

new text begin (3) an energy storage system.
new text end

new text begin (m) "Residential building" means a building containing one to three residential units.
new text end

new text begin (n) "Solar energy system" has the meaning given in section 216C.06, subdivision 17.
new text end

new text begin Subd. 2. new text end

new text begin Program establishment. new text end

new text begin A rebuild right grant program is established in the
Department of Commerce to award grants to incorporate qualified energy technologies as
part of the renovation or new construction of buildings damaged or destroyed by civil unrest
in May and June 2020.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) An application for a grant under this section must be made to
the commissioner on a form developed by the commissioner. The application must include:
new text end

new text begin (1) evidence substantiating the applicant's experience required under subdivision 4,
paragraph (b);
new text end

new text begin (2) information detailing how property owners are notified that financial assistance is
available;
new text end

new text begin (3) the geographic area within which an applicant proposes to target financial assistance;
new text end

new text begin (4) information detailing (i) how the applicant determines whether a proposed project
meets the applicable energy standards required under subdivision 5, and (ii) what
post-implementation methods are used to assess whether the standards have been met;
new text end

new text begin (5) information detailing how the applicant evaluates and ranks project proposals; and
new text end

new text begin (6) any other information required by the commissioner.
new text end

new text begin (b) The commissioner must develop administrative procedures and processes to review
applications and award grants under this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

new text begin (a) Multiple organizations, including political subdivisions
and nonprofit organizations, may jointly file a single application for a grant award under
this section.
new text end

new text begin (b) Applicants for a grant awarded under this section must have experience:
new text end

new text begin (1) analyzing the energy and economic impacts of installing qualified energy technologies
in buildings;
new text end

new text begin (2) working with contractors to implement projects that install qualified energy
technologies in buildings; and
new text end

new text begin (3) successfully working with small businesses, community groups, and residents of
neighborhoods where a preponderance of the total number of households are low-income
households.
new text end

new text begin Subd. 5. new text end

new text begin Eligible activities; energy standards. new text end

new text begin (a) Except as provided in paragraph (b),
a renovated or newly constructed commercial or institutional building awarded grant funds
under this section must meet, at a minimum, the current Sustainable Building 2030 energy
performance standards adopted under section 216B.241, subdivision 9.
new text end

new text begin (b) A renovated or newly constructed residential building or a commercial building
containing four or more dwelling units awarded grant funds under this section must meet,
at a minimum, the current energy performance standards for new residential construction
or renovations, as applicable, contained in the International Passive House Standard promoted
by the North American Passive House Network or the United States Department of Energy's
Zero Energy Ready Home.
new text end

new text begin Subd. 6. new text end

new text begin Eligible properties. new text end

new text begin A property is eligible to receive a grant awarded under
this section if the property: (1) was damaged or destroyed by civil unrest that occurred in
the state in May and June 2020; and (2) is being renovated or constructed to operate as a
residential, commercial, or institutional property.
new text end

new text begin Subd. 7. new text end

new text begin Eligible expenditures. new text end

new text begin An appropriation made to support activities under this
section may be used to:
new text end

new text begin (1) conduct outreach activities to:
new text end

new text begin (i) cities and business associations affected by the civil unrest that occurred in Minnesota
in May and June 2020;
new text end

new text begin (ii) persons listed in subdivision 8, clause (1), items (i) to (iv); and
new text end

new text begin (iii) potential building owners who may receive services under the program;
new text end

new text begin (2) purchase and install qualified energy technologies in buildings;
new text end

new text begin (3) pay the reasonable costs incurred by the department to administer this section; and
new text end

new text begin (4) compensate task force members under subdivision 12.
new text end

new text begin Subd. 8. new text end

new text begin Grant priorities. new text end

new text begin When awarding grants under this section, the commissioner
must give priority to applications that:
new text end

new text begin (1) commit to conduct aggressive outreach programs to provide assistance under this
section to eligible owners of buildings:
new text end

new text begin (i) located in census tracts in which 50 percent or more of households have household
incomes at or below 60 percent of the state median household income;
new text end

new text begin (ii) located in census tracts designated by the governor as Opportunity Zones under
United States Code, title 26, section 1400Z-1, et. seq.;
new text end

new text begin (iii) containing minority-owned businesses, as defined in section 116J.8737; or
new text end

new text begin (iv) containing women-owned businesses, as defined in section 116J.8737;
new text end

new text begin (2) commit to employ contractors that pay employees a wage comparable to, as
determined by the commissioner, the prevailing wage rate, as defined in section 177.42; or
new text end

new text begin (3) leverage additional funding to be used for the purposes of this section.
new text end

new text begin Subd. 9. new text end

new text begin Limits. new text end

new text begin Grant funds awarded under this section to support the renovation or
construction of building envelopes and energy systems in commercial or institutional
buildings may be used to pay the difference between (1) the cost to renovate or construct a
building's envelope or energy system to meet the current applicable energy code, and (2)
the cost to meet the standards required under subdivision 5. The commissioner must develop
a methodology to calculate the cost to renovate or construct a commercial or institutional
building's envelope and energy system to meet current applicable energy code standards,
which must be used by a grantee to determine the amount awarded to a building owner.
new text end

new text begin Subd. 10. new text end

new text begin Awards to building owners. new text end

new text begin A commercial or institutional building owner
seeking funding from a grant awarded under this section must submit an application to the
grantee that includes:
new text end

new text begin (1) evidence that the building is eligible to receive a grant under this section, including
documentation of damage done to the building;
new text end

new text begin (2) a description of the project, including cost estimates for major project elements;
new text end

new text begin (3) documentation that the measures funded result in the building meeting the applicable
energy standards of subdivision 5; and
new text end

new text begin (4) any other information required by a grantee.
new text end

new text begin Subd. 11. new text end

new text begin Grantee reports. new text end

new text begin Recipients of a grant awarded under this section must file
semiannual reports with the commissioner containing:
new text end

new text begin (1) a list of properties where grant funds have been expended, the amount of the
expenditures, and the nature of the energy efficiency measures and renewable energy systems
installed;
new text end

new text begin (2) estimated energy savings and greenhouse gas emissions reductions resulting from
expenditures made under this section compared with estimated levels of energy use and
greenhouse gas emissions associated with those properties in 2019; and
new text end

new text begin (3) any other information required by the commissioner.
new text end

new text begin Subd. 12. new text end

new text begin Advisory task force. new text end

new text begin (a) Within 60 days of the effective date of this act, the
commissioner must select and appoint eight members to a Rebuild Right Advisory Task
Force and must convene the initial meeting of the task force. The advisory task force must
include:
new text end

new text begin (1) one representative of the public utility subject to section 116C.779, subdivision 1;
new text end

new text begin (2) one representative of the Prairie Island Indian Community;
new text end

new text begin (3) one representative of organized labor;
new text end

new text begin (4) two representatives of organizations with expertise installing energy conservation
measures and renewable energy programs in buildings;
new text end

new text begin (5) one representative of organizations that advocate for energy policies addressing
low-income households; and
new text end

new text begin (6) two representatives of organizations representing businesses located in areas that
experienced extensive property damage from civil unrest in Minnesota in May and June
2020.
new text end

new text begin (b) Within 60 days of the effective date of this act, the state senators and state
representatives representing Minneapolis neighborhoods that suffered extensive property
damage from civil unrest in May and June 2020 must jointly appoint as task force members
two residents who live in the neighborhoods where the property damage occurred.
new text end

new text begin (c) Within 60 days of the effective date of this act, the state senators and state
representatives representing St. Paul neighborhoods that suffered extensive property damage
from civil unrest in May and June 2020 must jointly appoint as task force members two
residents who live in the neighborhoods where the property damage occurred.
new text end

new text begin (d) Members of the advisory task force appointed under paragraph (a), clauses (1) to
(3), are nonvoting members. All other members are voting members.
new text end

new text begin (e) The Department of Commerce must serve as staff and provide administrative support
to the advisory task force.
new text end

new text begin (f) The advisory task force must advise the commissioner throughout the development
of the request for proposal and grant award process, and may recommend funding priorities
in addition to those listed in subdivision 8. Within 60 days of the initial meeting, the advisory
task force must present recommendations to the commissioner regarding the content of the
request for proposal.
new text end

new text begin (g) An organization that is represented on the advisory task force must not be awarded
a grant under this section.
new text end

new text begin (h) Notwithstanding section 15.059, subdivision 6, advisory task force members may
be compensated as provided under section 15.059, subdivision 3.
new text end

new text begin (i) The advisory task force established under this subdivision expires two years after the
effective date of this act.
new text end

new text begin Subd. 13. new text end

new text begin Report. new text end

new text begin Beginning January 15, 2022, and continuing each January 15 through
2026, the commissioner must submit a report to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over energy policy.
The report must contain:
new text end

new text begin (1) a list of the grant awards made under this section;
new text end

new text begin (2) summaries of the grantee reports submitted under subdivision 10; and
new text end

new text begin (3) other information deemed relevant by the commissioner.
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. 27.

Minnesota Statutes 2020, section 326B.106, subdivision 1, is amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections
326B.101 to 326B.194, the commissioner shall by rule and in consultation with the
Construction Codes Advisory Council establish a code of standards for the construction,
reconstruction, alteration, and repair of buildings, governing matters of structural materials,
design and construction, fire protection, health, sanitation, and safety, including design and
construction standards regarding heat loss control, illumination, and climate control. The
code must also include duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension and revocation of certification.
The code must conform insofar as practicable to model building codes generally accepted
and in use throughout the United States, including a code for building conservation. In the
preparation of the code, consideration must be given to the existing statewide specialty
codes presently in use in the state. Model codes with necessary modifications and statewide
specialty codes may be adopted by reference. The code must be based on the application
of scientific principles, approved tests, and professional judgment. To the extent possible,
the code must be adopted in terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of specifications of particular methods
or materials. To that end the code must encourage the use of new methods and new materials.
Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall
administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to
similar buildings without significant modifications including provisions for use of building
systems as specified in the industrial/modular program specified in section 326B.194.
Additional plan review fees associated with similar plans must be based on costs
commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years
thereafter, the commissioner shall review the new model building codes and adopt the model
codes as amended for use in Minnesota, within two years of the published edition date. The
commissioner may adopt amendments to the building codes prior to the adoption of the
new building codes to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. new text begin Beginning in
2022, the commissioner shall act on the new model commercial energy code by adopting
each new published edition of ASHRAE 90.1 or a more efficient standard, and amending
the standard as necessary to achieve a minimum of eight percent energy efficiency with
each edition, as measured against energy consumption by an average building in each
applicable building sector in 2003. These amendments must achieve a net zero energy
standard for new commercial buildings by 2036 and thereafter. new text end The commissioner may
adopt amendments prior to adoption of the new energy codes, as amended for use in
Minnesota, to advance construction methods, technology, or materials, or, where necessary
to protect the health, safety, and welfare of the public, or to improve the efficiency or use
of a building.

Sec. 28. new text begin SUPPLEMENTING WEATHERIZATION SERVICES.
new text end

new text begin (a) The state may implement preweatherization measures and qualified energy
technologies in dwelling units of low-income households that are: (1) receiving
weatherization services delivered under the federal Weatherization Assistance Program
authorized under United States Code, title 42, section 6861, et. seq.; and (2) located in
neighborhoods adjacent to areas that experienced property damage resulting from civil
unrest in May and June 2020, as determined by the commissioner of commerce.
new text end

new text begin (b) Minnesota Statutes, section 216C.264, subdivisions 1 to 3 and 6, apply to assistance
provided under this section.
new text end

new text begin (c) The commissioner of commerce may require the design heating load of a dwelling
unit receiving assistance under this section to be no more than 12 British Thermal Units per
hour per square foot after all preweatherization measures financed under this section,
qualified energy technologies financed under this section, and weatherization measures
provided under the federal weatherization program are implemented.
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. 29. new text begin TASK FORCE ON EXPANDING THE PROVISION OF
WEATHERIZATION SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Weatherization Assistance Program" means the federal program described in Code
of Federal Regulations, title 10, part 440 et. seq., designed to assist low-income households
to cost-effectively reduce energy use.
new text end

new text begin (d) "Weatherization service providers" means the network of contracted entities that
administer the Weatherization Assistance Program.
new text end

new text begin (e) "Weatherization assistance services" means the energy conservation measures installed
in households under the Weatherization Assistance Program.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A task force is established to explore ways to expand existing
funding sources and identify potential new funding sources in order to increase the number
of low-income Minnesota households served or the scope of services provided by the
Weatherization Assistance Program.
new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin (a) No later than August 1, 2021, the commissioner must appoint
members to the task force representing the following stakeholders:
new text end

new text begin (1) a statewide association representing Weatherization Assistance Program providers;
new text end

new text begin (2) individual Weatherization Assistance Program service providers;
new text end

new text begin (3) investor-owned utilities;
new text end

new text begin (4) electric cooperatives and municipal utilities;
new text end

new text begin (5) low-income energy advocates;
new text end

new text begin (6) Tribal nations; and
new text end

new text begin (7) delivered fuel dealers.
new text end

new text begin (b) Task force members serve without compensation.
new text end

new text begin (c) The commissioner must fill task force vacancies to maintain the representation
required under paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Meetings; officers. new text end

new text begin (a) The commissioner must convene the first meeting of
the task force no later than August 15, 2021.
new text end

new text begin (b) At the first meeting, the task force must elect a chair and vice-chair from among the
task force's members and may elect other officers as necessary.
new text end

new text begin (c) The task force must meet according to a schedule determined by the task force and
may also meet at the call of the chair. The task force must meet as often as necessary to
accomplish the duties listed under subdivision 5.
new text end

new text begin (d) Task force meetings are subject to the open meeting provisions of Minnesota Statutes,
chapter 13D.
new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin The task force must:
new text end

new text begin (1) develop a strategy to reduce, each year, a targeted number of eligible households
denied weatherization services due to unaddressed health, environmental, or structural
hazards in the home;
new text end

new text begin (2) explore new sources of funding in order to increase the number of households
receiving weatherization assistance services;
new text end

new text begin (3) analyze existing program models in other states that offer services that complement
the Weatherization Assistance Program;
new text end

new text begin (4) analyze the current distribution of weatherization services across ethnic groups;
among different regions of Minnesota; in urban, suburban, and rural areas; and with respect
to other demographic factors in order to determine how to distribute weatherization services
more equitably throughout Minnesota;
new text end

new text begin (5) discuss how additional funding would impact the ability of weatherization assistance
service providers to provide weatherization assistance services to more eligible households;
new text end

new text begin (6) identify services that a supplemental funding program could provide to address
necessary repairs to homes that the federal Weatherization Assistance Program requires
before weatherization assistance is provided, but which cannot be funded with federal
Weatherization Assistance Program funds; and
new text end

new text begin (7) examine other related issues the task force deems relevant.
new text end

new text begin Subd. 6. new text end

new text begin Administrative support. new text end

new text begin The commissioner must provide administrative
support and physical or virtual meeting space needed to complete the task force's work.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin No later than February 1, 2022, the task force must submit a report on
the task force's findings and recommendations to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over energy. The
report must include recommendations for legislation to supplement funding for the
Weatherization Assistance Program.
new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin This section expires April 15, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 30. new text begin TRANSFER.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$5,000,000 in fiscal year 2022 and $5,000,000 in fiscal year 2023 are transferred from the
renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of administration for deposit in the state building energy
conservation improvement account established in Minnesota Statutes, section 16B.86, to
provide loans to state agencies for energy conservation projects under Minnesota Statutes,
section 16B.87.
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. 31. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin State building energy conservation loan account. new text end

new text begin Notwithstanding
Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), $249,000 in fiscal year
2022 and $137,000 in fiscal year 2023 are appropriated from the renewable development
account to the commissioner of administration for software and administrative costs
associated with the state building energy conservation improvement revolving loan program
under Minnesota Statutes, section 16B.87. The base in fiscal years 2024 and 2025 is
$117,000.
new text end

new text begin Subd. 2. new text end

new text begin Building energy codes. new text end

new text begin $146,000 in fiscal year 2023 is appropriated from the
general fund to the commissioner of labor and industry to implement new commercial
energy codes, as described in Minnesota Statutes, section 326B.106, subdivision 1. This is
a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Rebuild right grants. new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (j), $3,000,000 in fiscal year 2022 is appropriated from the
renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to award rebuild right grants to building
owners, as described in Minnesota Statutes, section 216C.402. This is a onetime
appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 216B.241, subdivisions 1, 1b, 2c, 4, and 10, new text end new text begin are
repealed.
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

ARTICLE 2

ENERGY TRANSITION

Section 1.

new text begin [116J.5491] ENERGY TRANSITION OFFICE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of sections 116J.5491 to 116J.5493, the
following terms have the meanings given.
new text end

new text begin (b) "Impacted facility" means an electric generating unit that is or was owned by a public
utility, as defined in section 216B.02, subdivision 4, and that:
new text end

new text begin (1) is currently operating and (i) is scheduled to cease operations, or (ii) whose cessation
of operations has been proposed in an integrated resource plan filed with the Public Utilities
Commission under section 216B.2422; or
new text end

new text begin (2) ceased operations or was removed from the local property tax base no earlier than
five years before the effective date of this section.
new text end

new text begin (c) "Impacted community" means a municipality, Tribal government, or county in which
an impacted facility is located.
new text end

new text begin (d) "Impacted worker" means a Minnesota resident:
new text end

new text begin (1) employed at an impacted facility and who is facing the loss of employment as a result
of the impacted facility's retirement; or
new text end

new text begin (2) employed by a company that, under contract, regularly performs construction,
maintenance, or repair work at an impacted facility, and who is facing the loss of employment
or of work opportunities as a result of the impacted facility's retirement.
new text end

new text begin Subd. 2. new text end

new text begin Office established; director. new text end

new text begin (a) The Energy Transition Office is established
in the Department of Employment and Economic Development.
new text end

new text begin (b) The director of the Energy Transition Office is appointed by the governor. The
director must be qualified by experience in issues related to energy, economic development,
and the environment.
new text end

new text begin (c) The office may employ staff necessary to carry out the duties required in this section.
new text end

new text begin Subd. 3. new text end

new text begin Purpose. new text end

new text begin The purpose of the office is to:
new text end

new text begin (1) address economic dislocations experienced by impacted workers after an impacted
facility is retired;
new text end

new text begin (2) implement recommendations of the Minnesota energy transition plan developed in
section 116J.5493;
new text end

new text begin (3) improve communication among local, state, federal, and private entities regarding
impacted facility retirement planning and implementation;
new text end

new text begin (4) address local tax and fiscal issues related to the impacted facility's retirement and
develop strategies to reduce economic dislocations of impacted communities and impacted
workers; and
new text end

new text begin (5) assist the establishment and implementation of economic support programs, including
but not limited to property tax revenue replacement, community energy transition programs,
and economic development tools, for impacted communities and impacted workers.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The office is authorized to:
new text end

new text begin (1) administer programs to support impacted communities and impacted workers;
new text end

new text begin (2) coordinate resources at local, state, and federal levels to support impacted communities
and impacted workers that are subject to significant economic transition;
new text end

new text begin (3) coordinate the development of a statewide policy on impacted communities and
impacted workers;
new text end

new text begin (4) deliver programs and resources to impacted communities and impacted workers;
new text end

new text begin (5) support impacted workers by establishing benefits and educating impacted workers
on applying for benefits;
new text end

new text begin (6) act as a liaison among impacted communities, impacted workers, and state agencies;
new text end

new text begin (7) assist state agencies to (i) address local tax, land use, economic development, and
fiscal issues related to an impacted facility's retirement, and (ii) develop strategies to support
impacted communities and impacted workers;
new text end

new text begin (8) review existing programs supporting impacted workers and identify gaps that need
to be addressed;
new text end

new text begin (9) support the activities of the energy transition advisory committee members;
new text end

new text begin (10) monitor transition efforts in other states and localities;
new text end

new text begin (11) identify impacted facility closures and estimate job losses and the effect on impacted
communities and impacted workers;
new text end

new text begin (12) maintain communication regarding closure dates with all affected parties; and
new text end

new text begin (13) monitor and participate in administrative proceedings that affect the office's activities,
including matters before the Public Utilities Commission, the Department of Commerce,
the Department of Revenue, and other entities.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) Beginning January 15, 2023, and each year thereafter, the Energy
Transition Office must submit a written report to the chairs and ranking minority members
of the legislative committees with jurisdiction over energy, economic development, and tax
policy and finance on the office's activities during the previous year.
new text end

new text begin (b) The report must contain:
new text end

new text begin (1) a list of impacted facility closures, projected associated job losses, and the effect on
impacted communities and impacted workers;
new text end

new text begin (2) recommendations to support impacted communities and impacted workers;
new text end

new text begin (3) information on the administration of assistance programs administered by the office;
and
new text end

new text begin (4) updates on implementation of the Minnesota energy transition plan.
new text end

new text begin Subd. 6. new text end

new text begin Gifts; grants; donations. new text end

new text begin The office may accept gifts and grants on behalf of
the state that constitute donations to the state. Funds received under this subdivision are
appropriated to the commissioner of employment and economic development to support
the purposes of the office.
new text end

Sec. 2.

new text begin [116J.5492] ENERGY TRANSITION ADVISORY COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; purpose. new text end

new text begin The Energy Transition Advisory Committee is
established to develop a statewide energy transition plan and to advise the governor, the
commissioner, and the legislature on transition issues, established transition programs,
economic initiatives, and transition policy.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The advisory committee consists of 19 voting members and
six ex officio nonvoting members.
new text end

new text begin (b) The voting members of the advisory committee are appointed by the commissioner
of employment and economic development, except as specified below:
new text end

new text begin (1) two members of the senate, one appointed by the majority leader of the senate and
one appointed by the minority leader of the senate;
new text end

new text begin (2) two members of the house of representatives, one appointed by the speaker of the
house of representatives and one appointed by the minority leader of the house of
representatives;
new text end

new text begin (3) the commissioner of commerce, or the commissioner's designee;
new text end

new text begin (4) one representative of the Prairie Island Indian community;
new text end

new text begin (5) four representatives of impacted communities, of which two must represent counties
and two must represent municipalities, and, to the extent possible, of the impacted facilities
in those communities, at least one must be a coal plant, at least one must be a nuclear plant,
and at least one must be a natural gas plant;
new text end

new text begin (6) three representatives of impacted workers at impacted facilities;
new text end

new text begin (7) one representative of impacted workers employed by companies that, under contract,
regularly perform construction, maintenance, or repair work at an impacted facility;
new text end

new text begin (8) one representative with professional economic development or workforce retraining
experience;
new text end

new text begin (9) two representatives of utilities that operate an impacted facility;
new text end

new text begin (10) one representative from a nonprofit organization with expertise and experience
delivering energy efficiency and conservation programs; and
new text end

new text begin (11) one representative from the Coalition of Utility Cities.
new text end

new text begin (c) The ex officio nonvoting members of the advisory committee consist of:
new text end

new text begin (1) the governor or the governor's designee;
new text end

new text begin (2) the commissioner of employment and economic development or the commissioner's
designee;
new text end

new text begin (3) the commissioner of labor and industry or the commissioner's designee;
new text end

new text begin (4) the commissioner of revenue or the commissioner's designee;
new text end

new text begin (5) the executive secretary of the Public Utilities Commission or the secretary's designee;
and
new text end

new text begin (6) the commissioner of the Pollution Control Agency or the commissioner's designee.
new text end

new text begin Subd. 3. new text end

new text begin Initial appointments and first meeting. new text end

new text begin The appointing authorities must
appoint the members of the advisory committee by August 1, 2021. The commissioner of
employment and economic development must convene the first meeting by September 1,
2021, and must act as chair until the advisory committee elects a chair at the first meeting.
new text end

new text begin Subd. 4. new text end

new text begin Officers. new text end

new text begin The committee must elect a chair and vice-chair from among the
voting members for terms of two years.
new text end

new text begin Subd. 5. new text end

new text begin Open meetings. new text end

new text begin Advisory committee meetings are subject to chapter 13D.
new text end

new text begin Subd. 6. new text end

new text begin Conflict of interest. new text end

new text begin An advisory committee member is prohibited from
discussing or voting on issues relating to an organization in which the member has either a
direct or indirect financial interest.
new text end

new text begin Subd. 7. new text end

new text begin Gifts; grants; donations. new text end

new text begin The advisory committee may accept gifts and grants
on behalf of the state and that constitute donations to the state. Funds received under this
subdivision are appropriated to the commissioner of employment and economic development
to support the activities of the advisory committee.
new text end

new text begin Subd. 8. new text end

new text begin Meetings. new text end

new text begin The advisory committee must meet monthly until the energy transition
plan is submitted to the governor and the legislature. The chair may call additional meetings
as necessary.
new text end

new text begin Subd. 9. new text end

new text begin Staff. new text end

new text begin The Department of Employment and Economic Development shall serve
as staff for the advisory committee.
new text end

new text begin Subd. 10. new text end

new text begin Expiration. new text end

new text begin This section expires the day after the Minnesota energy transition
plan required under section 116J.5493 is submitted to the legislature and the governor.
new text end

Sec. 3.

new text begin [116J.5493] MINNESOTA ENERGY TRANSITION PLAN.
new text end

new text begin (a) By July 1, 2022, the Energy Transition Advisory Committee established in section
116J.5492 must submit a statewide energy transition plan to the governor and the chairs
and ranking minority members of the legislative committees having jurisdiction over
economic development and energy.
new text end

new text begin (b) The energy transition plan must, at a minimum, for each impacted facility:
new text end

new text begin (1) identify the timing and location of impacted facility retirements and projected job
losses in communities;
new text end

new text begin (2) analyze the estimated fiscal impact of impacted facility retirements on local
governments;
new text end

new text begin (3) describe the statutes and administrative processes that govern how retired utility
property impacts a local government tax base;
new text end

new text begin (4) review existing state programs that might support impacted communities and impacted
workers, and a projection of how effective or ineffective the programs might be in responding
to the effects of impacted facility retirements; and
new text end

new text begin (5) recommend how to effectively respond to the economic effects of impacted facility
retirements.
new text end

Sec. 4.

new text begin [116J.5501] MINNESOTA INNOVATION FINANCE AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Authority" means the Minnesota Innovation Finance Authority.
new text end

new text begin (c) "Clean energy project" has the meaning given to qualified project in paragraph (j),
clauses (1) to (4).
new text end

new text begin (d) "Credit enhancement" means a pool of capital set aside to cover potential losses on
loans made by private lenders, including but not limited to loan loss reserves and loan
guarantees.
new text end

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

new text begin (f) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (g) "Greenhouse gas emissions" has the meaning given to statewide greenhouse gas
emissions in section 216H.01, subdivision 2.
new text end

new text begin (h) "Loan loss reserve" means a pool of capital set aside to reimburse a private lender
if a customer defaults on a loan, up to an agreed upon percentage of loans originated by the
private lender.
new text end

new text begin (i) "Microgrid system" means an electrical grid that serves a discrete geographical area
from distributed energy resources and can operate independently from the central electric
grid on a temporary basis.
new text end

new text begin (j) "Qualified project" means:
new text end

new text begin (1) a project, technology, product, service, or measure that:
new text end

new text begin (i) reduces energy use while providing the same level and quality of service or output
obtained before the application of the project;
new text end

new text begin (ii) shifts the use of electricity by retail customers in response to changes in the price of
electricity that vary over time, or other incentives designed to shift electricity demand from
times when market prices are high or when system reliability is jeopardized; or
new text end

new text begin (iii) significantly reduces greenhouse gas emissions relative to greenhouse gas emissions
produced before implementing the project, excluding projects that generate power from the
combustion of fossil fuels;
new text end

new text begin (2) the development, construction, deployment, alteration, or repair of any:
new text end

new text begin (i) project, technology, product, service, or measure that generates electric power from
renewable energy; or
new text end

new text begin (ii) distributed generation system, energy storage system, smart grid technology, microgrid
system, fuel cell system, or combined heat and power system;
new text end

new text begin (3) the installation, construction, or use of end-use electric technology that replaces
existing fossil fuel-based technology;
new text end

new text begin (4) a project, technology, product, service, or measure that supports the development
and deployment of electric vehicle charging stations and associated infrastructure;
new text end

new text begin (5) agriculture projects that reduce net greenhouse gas emissions or improve climate
resiliency, including but not limited to reforestation, afforestation, forestry management,
and regenerative agriculture;
new text end

new text begin (6) the construction or enhancement of infrastructure that is planned, designed, and
operated in a manner that anticipates, prepares for, and adapts to current and projected
changing climate conditions so that the infrastructure withstands, responds to, and more
readily recovers from disruptions caused by the current and projected changing climate
conditions; and
new text end

new text begin (7) the development, construction, deployment, alteration, or repair of any project,
technology, product, service, or measure that:
new text end

new text begin (i) reduces water use while providing the same or better level and quality of service or
output that was obtained before implementing the water-saving approach; or
new text end

new text begin (ii) protects, restores, or preserves the quality of groundwater and surface waters,
including but not limited to actions that further the purposes of the Clean Water Legacy
Act, as provided in section 114D.10, subdivision 1.
new text end

new text begin (k) "Regenerative agriculture" means the deployment of farming methods that reduce
agriculture's contribution to climate change by increasing the soil's ability to absorb
atmospheric carbon and convert the atmospheric carbon to soil carbon.
new text end

new text begin (l) "Renewable energy" means energy generated from the following sources:
new text end

new text begin (1) solar;
new text end

new text begin (2) wind;
new text end

new text begin (3) geothermal;
new text end

new text begin (4) hydro;
new text end

new text begin (5) trees or other vegetation;
new text end

new text begin (6) anaerobic digestion of organic waste streams; and
new text end

new text begin (7) fuel cells using energy sources listed in this paragraph.
new text end

new text begin (m) "Smart grid" means a digital technology that allows for two-way communication
between a utility and the utility's customers that enables the utility to control power flow
and load in real time.
new text end

new text begin (n) "Task force" means the task force of the Minnesota Innovation Finance Authority.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin (a) By October 15, 2021, the Minnesota Innovation
Finance Authority Task Force established in this section must establish the Minnesota
Innovation Finance Authority as a nonprofit corporation under chapter 317A and must seek
designation as a charitable tax-exempt organization under section 501(c)(3) of the Internal
Revenue Code of 1986, as amended.
new text end

new text begin (b) When incorporated, the authority's purpose is to accelerate the deployment of clean
energy and other qualified projects by reducing the upfront and total cost of adoption, which
the authority achieves by leveraging existing public sources and additional private sources
of capital through the strategic deployment of public funds in the form of loans, credit
enhancements, and other financing mechanisms. The initial directors of the nonprofit
corporation must include at least a majority of the members of the task force and must
include, as nonvoting ex officio members, the commissioner of commerce or the
commissioner's designee and the commissioner of employment and economic development
or the commissioner's designee. The task force must engage independent legal counsel with
relevant experience in nonprofit corporation law and clean energy financing.
new text end

new text begin (c) The Minnesota Innovation Finance Authority must:
new text end

new text begin (1) identify underserved markets for qualified projects in Minnesota, develop programs
to overcome market impediments, and provide access to financing to serve the projects and
underserved markets;
new text end

new text begin (2) strategically use authority funds to leverage private investment in qualified projects,
achieving a high ratio of private to public funds invested through funding mechanisms that
support, enhance, and complement private investment;
new text end

new text begin (3) coordinate with existing government- and utility-based programs to make the most
efficient use of the authority's funds, ensure that financing terms and conditions offered are
well-suited to qualified projects, and ensure the authority's activities add to and complement
the efforts of these partners;
new text end

new text begin (4) stimulate demand for qualified projects by serving as a single point of access for a
customer to obtain technical information on energy conservation and renewable energy
measures, for contractors who install energy conservation and renewable energy measures,
and for financing to reduce the upfront and total costs to borrowers, including through:
new text end

new text begin (i) serving as a clearinghouse for information about federal, state, and utility financial
assistance for qualifying projects in targeted underserved markets, including coordinating
efforts with the energy conservation programs administered by the customer's utility under
section 216B.241 and other programs offered to low-income households;
new text end

new text begin (ii) forming partnerships with contractors and educating contractors regarding the
authority's financing programs;
new text end

new text begin (iii) coordinating multiple contractors on projects that install multiple qualifying
technologies; and
new text end

new text begin (iv) developing innovative marketing strategies to stimulate project owner interest in
targeted underserved markets;
new text end

new text begin (5) develop rules, policies, and procedures specifying borrower eligibility and other
terms and conditions of financial support offered by the authority;
new text end

new text begin (6) develop consumer protection standards governing the authority's investments to
ensure the authority and partners provide financial support in a responsible and transparent
manner that is in the financial interest of participating project owners;
new text end

new text begin (7) develop and administer policies to collect reasonable fees for authority services that
are sufficient to support ongoing authority activities;
new text end

new text begin (8) develop and adopt a workplan to accomplish all of the activities required of the
authority, and update the workplan on an annual basis; and
new text end

new text begin (9) establish and maintain a comprehensive website providing access to all authority
programs and financial products, including rates, terms, and conditions of all financing
support programs, unless disclosure of the information constitutes a trade secret or
confidential commercial or financial information.
new text end

new text begin Subd. 3. new text end

new text begin Additional authorized activities. new text end

new text begin The authority is authorized to:
new text end

new text begin (1) engage in any activities of a Minnesota nonprofit corporation operating under chapter
317A;
new text end

new text begin (2) develop and employ the following financing methods to support qualified projects:
new text end

new text begin (i) credit enhancement mechanisms that reduce financial risk for private lenders by
providing assurance that a limited portion of a loan is assumed by the authority by means
of a loan loss reserve, loan guarantee, or other mechanism;
new text end

new text begin (ii) co-investment, in which the authority invests directly in a clean energy project
through the provision of senior or subordinated debt, equity, or other mechanisms in
conjunction with a private financier's investment; and
new text end

new text begin (iii) serve as an aggregator of many small and geographically dispersed qualified projects,
in which the authority may provide direct lending, investment, or other financial support in
order to diversify risk;
new text end

new text begin (3) serve as the designated state entity to apply for and accept federal funds authorized
by Congress under a federal climate bank, federal green bank, or other similar entity, provided
that the commissioner of commerce authorizes the application; and
new text end

new text begin (4) seek to qualify as a Community Development Financial Institution under United
States Code, title 12, section 4702, in which case the authority must be treated as a qualified
community development entity for the purposes of sections 45D and 1400(m) of the Internal
Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Task force; membership. new text end

new text begin (a) The task force of the Minnesota Innovation
Finance Authority is established and consists of nine members as follows:
new text end

new text begin (1) the commissioner of commerce or the commissioner's designee, as a nonvoting ex
officio member;
new text end

new text begin (2) the commissioner of employment and economic development or the commissioner's
designee, as a nonvoting ex officio member;
new text end

new text begin (3) three additional members appointed by the governor;
new text end

new text begin (4) two additional members appointed by the speaker of the house of representatives;
and
new text end

new text begin (5) two additional members appointed by the president of the senate.
new text end

new text begin (b) The members appointed to the task force under paragraph (a), clauses (3) to (5), must
have expertise in matters relating to energy conservation, clean energy, economic
development, banking, law, finance, or other matters relevant to the work of the task force.
When appointing a member to the task force, consideration must be given to whether the
task force members collectively reflect the geographical and ethnic diversity of Minnesota.
new text end

new text begin (c) Task force members must be appointed by August 15, 2021.
new text end

new text begin (d) The task force expires when the authority is established as a nonprofit corporation
under chapter 317A.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By June 30, 2022, and by June 30 each year thereafter, the authority
must submit a comprehensive annual report on the authority's activities to the governor and
to the chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy. The report must contain, at a minimum, information on:
new text end

new text begin (1) the amount of authority capital invested, by project type;
new text end

new text begin (2) the amount of private capital leveraged as a result of authority investments, by project
type;
new text end

new text begin (3) the number of qualified projects supported, by project type, and the location of the
projects within Minnesota;
new text end

new text begin (4) the estimated number of jobs created and tax revenue generated as a result of the
authority's activities;
new text end

new text begin (5) the number of clean energy projects financed in low- and moderate-income
households; and
new text end

new text begin (6) the authority's financial statements.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2020, section 216B.16, subdivision 6, is amended to read:

Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers
under this chapter to determine just and reasonable rates for public utilities, shall give due
consideration to the public need for adequate, efficient, and reasonable service and to the
need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
the service, including adequate provision for depreciation of its utility property used and
useful in rendering service to the public, and to earn a fair and reasonable return upon the
investment in such property. In determining the rate base upon which the utility is to be
allowed to earn a fair rate of return, the commission shall give due consideration to evidence
of the cost of the property when first devoted to public use, to prudent acquisition cost to
the public utility less appropriate depreciation on each, to construction work in progress, to
offsets in the nature of capital provided by sources other than the investors, and to other
expenses of a capital nature. For purposes of determining rate base, the commission shall
consider the original cost of utility property included in the base and shall make no allowance
for its estimated current replacement value. If the commission orders a generating facility
to terminate its operations before the end of the facility's physical life in order to comply
with a specific state or federal energy deleted text begin statute or deleted text end policy, the commission may allow the public
utility to recover any positive net book value of the facility as determined by the commission.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2020, section 216B.16, subdivision 13, is amended to read:

Subd. 13.

Economic and community development.

The commission may allow a
public utility to recover from ratepayers the new text begin reasonable new text end expenses incurred new text begin (1) new text end for economic
and community development new text begin , and (2) to employ local workers to construct and maintain
generation facilities that supply power to the utility's customers new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2020, section 216B.1645, subdivision 1, is amended to read:

Subdivision 1.

Commission authority.

Upon the petition of a public utility, the Public
Utilities Commission shall approve or disapprove power purchase contracts, investments,
or expenditures entered into or made by the utility to satisfy the wind and biomass mandates
contained in sections 216B.169, 216B.2423, and 216B.2424, deleted text begin and deleted text end to satisfy the renewable
new text begin and solar new text end energy deleted text begin objectives and deleted text end standards set forth in section 216B.1691, new text begin and to provide
additional clean energy resources beyond the proportions required by the mandates and
standards, new text end including reasonable investments and expenditures new text begin , net of revenues, new text end made to:

(1) transmit the electricity generated from sources developed under those sections that
is ultimately used to provide service to the utility's retail customers, including studies
necessary to identify new transmission facilities needed to transmit electricity to Minnesota
retail customers from generating facilities constructed to satisfy the renewable energy
objectives and standards, provided that the costs of the studies have not been recovered
previously under existing tariffs and the utility has filed an application for a certificate of
need or for certification as a priority project under section 216B.2425 for the new
transmission facilities identified in the studies;

(2) provide storage facilities for renewable energy generation facilities that contribute
to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or

(3) develop renewable energy sources from the account required in section 116C.779.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2020, section 216B.1645, subdivision 2, is amended to read:

Subd. 2.

Cost recovery.

The expenses incurred by the utility over the duration of the
approved contract or useful life of the investment deleted text begin and deleted text end new text begin , new text end expenditures made pursuant to section
116C.779 deleted text begin shall be deleted text end new text begin , and the expenses incurred to employ local workers to construct and
maintain generation facilities that supply power to the utility's customers are new text end recoverable
from the ratepayers of the utility deleted text begin , deleted text end to the extent deleted text begin they deleted text end new text begin the expenses or expenditures new text end are not
offset by utility revenues attributable to the contracts, investments, or expenditures new text begin , and if
the expenses or expenditures are deemed reasonable by the commission new text end . Upon petition by
a public utility, the commission shall approve or approve as modified a rate schedule
providing for the automatic adjustment of charges to recover the expenses or costs approved
by the commission under subdivision 1, which, in the case of transmission expenditures,
are limited to the portion of actual transmission costs that are directly allocable to the need
to transmit power from the renewable sources of energy. The commission may not approve
recovery of the costs for that portion of the power generated from sources governed by this
section that the utility sells into the wholesale market.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2020, section 216B.1691, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) Unless otherwise specified in law, "eligible energy
technology" means an energy technology that generates electricity from the following
renewable energy sources:

(1) solar;

(2) wind;

(3) hydroelectric with a capacity of less than 100 megawatts;

(4) hydrogen deleted text begin , provided that after January 1, 2010, the hydrogen must be deleted text end generated from
the resources listed in this paragraph; or

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; the predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge to produce electricity; and new text begin , except as provided in subdivision 1a, new text end an
energy recovery facility used to capture the heat value of mixed municipal solid waste or
refuse-derived fuel from mixed municipal solid waste as a primary fuel.

(b) "Electric utility" means a public utility providing electric service, a generation and
transmission cooperative electric association, a municipal power agency, or a power district.

(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by
an electric utility to retail customers of the electric utility or to a distribution utility for
distribution to the retail customers of the distribution utility. "Total retail electric sales"
does not include the sale of hydroelectricity supplied by a federal power marketing
administration or other federal agency, regardless of whether the sales are directly to a
distribution utility or are made to a generation and transmission utility and pooled for further
allocation to a distribution utility.

new text begin (d) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide.
new text end

new text begin (e) "Area of concern for environmental justice" means an area in Minnesota that meets
one or more of the following conditions:
new text end

new text begin (1) 50 percent or more of the population is nonwhite, based on the most recent data
published by the United States Census Bureau;
new text end

new text begin (2) 40 percent or more of the households have an income at or below 185 percent of the
federal poverty level, based on the most recent data published by the United States Census
Bureau; or
new text end

new text begin (3) is within Indian country, as defined in United State Code, title 18, section 1151.
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. 10.

Minnesota Statutes 2020, section 216B.1691, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Exception; solid waste incinerators. new text end

new text begin (a) An energy recovery facility used to
capture the heat value of mixed municipal solid waste or refuse-derived fuel from mixed
municipal solid waste as a primary fuel is not an eligible energy technology, as defined in
subdivision 1, if:
new text end

new text begin (1) air pollutants emitted by the facility are deposited in an environmental justice area;
and
new text end

new text begin (2) the facility has a permitted maximum capacity of 1,000 tons per day or more.
new text end

new text begin (b) For the purposes of this subdivision, "environmental justice area" has the meaning
given to area of concern for environmental justice under subdivision 1, paragraph (e).
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. 11.

Minnesota Statutes 2020, section 216B.1691, subdivision 2a, is amended to read:

Subd. 2a.

Eligible energy technology standard.

deleted text begin (a) Except as provided in paragraph
(b), deleted text end Each electric utility shall generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota, or the retail customers
of a distribution utility to which the electric utility provides wholesale electric service, so
that at least the following standard percentages of the electric utility's total retail electric
sales to retail customers in Minnesota are generated by eligible energy technologies by the
end of the year indicated:

(1)	2012	12 percent
(2)	2016	17 percent
(3)	2020	20 percent
(4)	2025	deleted text begin 25 deleted text end new text begin 40 new text end percent deleted text begin . deleted text end
new text begin (5) new text end	new text begin 2035 new text end	new text begin 55 percent. new text end

deleted text begin (b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
must meet the requirements of this paragraph rather than paragraph (a). An electric utility
subject to this paragraph must generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota or the retail customer
of a distribution utility to which the electric utility provides wholesale electric service so
that at least the following percentages of the electric utility's total retail electric sales to
retail customers in Minnesota are generated by eligible energy technologies by the end of
the year indicated:
deleted text end

deleted text begin (1) deleted text end	deleted text begin 2010 deleted text end	deleted text begin 15 percent deleted text end
deleted text begin (2) deleted text end	deleted text begin 2012 deleted text end	deleted text begin 18 percent deleted text end
deleted text begin (3) deleted text end	deleted text begin 2016 deleted text end	deleted text begin 25 percent deleted text end
deleted text begin (4) deleted text end	deleted text begin 2020 deleted text end	deleted text begin 30 percent. deleted text end

deleted text begin Of the 30 percent in 2020, at least 25 percent must be generated by solar energy or wind
energy conversion systems and the remaining five percent by other eligible energy
technology. Of the 25 percent that must be generated by wind or solar, no more than one
percent may be solar generated and the remaining 24 percent or greater must be wind
generated.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2020, section 216B.1691, subdivision 2b, is amended to read:

Subd. 2b.

Modification or delay of standard.

(a) The commission shall modify or delay
the implementation of a standard obligation new text begin under subdivision 2a, 2f, or 2g new text end , in whole or in
part, if the commission determines it is in the public interest to do so. The commission,
when requested to modify or delay implementation of a standard, must consider:

(1) the impact of implementing the standard on its customers' utility costs, including the
economic and competitive pressure on the utility's customers;

new text begin (2) the environmental costs that would be incurred as a result of a delay or modification,
based on the full range of environmental cost values established in section 216B.2422,
subdivision 3;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the effects of implementing the standard on the reliability of the electric system;

deleted text begin (3) deleted text end new text begin (4) new text end technical advances or technical concerns;

deleted text begin (4) deleted text end new text begin (5) new text end delays in acquiring sites or routes due to rejection or delays of necessary siting
or other permitting approvals;

deleted text begin (5) deleted text end new text begin (6) new text end delays, cancellations, or nondelivery of necessary equipment for construction or
commercial operation of an eligible energy technology facility;

deleted text begin (6) deleted text end new text begin (7) new text end transmission constraints preventing delivery of service; deleted text begin and
deleted text end

deleted text begin (7) deleted text end new text begin (8) new text end other statutory obligations imposed on the commission or a utility new text begin ; and
new text end

new text begin (9) impacts on areas of concern for environmental justice new text end .

The commission may modify or delay implementation of a standard obligation under
clauses (1) to deleted text begin (3) deleted text end new text begin (4) new text end only if it finds implementation would cause significant rate impact,
requires significant measures to address reliability, or raises significant technical issues.
The commission may modify or delay implementation of a standard obligation under clauses
deleted text begin (4) deleted text end new text begin (5) new text end to deleted text begin (6) deleted text end new text begin (7) new text end only if it finds that the circumstances described in those clauses were due
to circumstances beyond an electric utility's control and make compliance not feasible.

new text begin (b) When evaluating transmission capacity constraints under paragraph (a), clause (7),
the commission must consider whether the utility has:
new text end

new text begin (1) undertaken reasonable measures under the utility's control and consistent with the
utility's obligations under local, state, and federal laws and regulations, and the utility's
obligations as a member of a regional transmission organization or independent system
operator, to acquire sites, necessary permit approvals, and necessary equipment to develop
and construct new transmission lines or upgrade existing transmission lines to transmit
electricity generated by eligible energy technologies; and
new text end

new text begin (2) taken all reasonable operational measures to maximize cost-effective electricity
delivery from eligible energy technologies in advance of transmission availability.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end When considering whether to delay or modify implementation of a standard
obligation, the commission must give due consideration to a preference for electric generation
through use of eligible energy technology and to the achievement of the standards set by
this section.

deleted text begin (c) deleted text end new text begin (d) new text end An electric utility requesting a modification or delay in the implementation of a
standard must file a plan to comply with its standard obligation in the same proceeding deleted text begin that deleted text end new text begin
in which new text end it deleted text begin is requesting deleted text end new text begin requests new text end the delay.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2020, section 216B.1691, subdivision 2d, is amended to read:

Subd. 2d.

Commission order.

The commission shall issue necessary orders detailing
the criteria and standards deleted text begin by which it will deleted text end new text begin used to new text end measure an electric utility's efforts to meet
the renewable energy deleted text begin objectives of subdivision 2 deleted text end new text begin standards under subdivisions 2a, 2f, and
2g, and new text end to determine whether the utility is deleted text begin making the required good faith effort deleted text end new text begin achieving
the standards new text end . In this order, the commission shall include criteria and standards that protect
against undesirable impacts on the reliability of the utility's system and economic impacts
on the utility's ratepayers and that consider technical feasibility.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2020, section 216B.1691, subdivision 2e, is amended to read:

Subd. 2e.

Rate impact of standard compliance; report.

Each electric utility must
submit to the commission and the legislative committees with primary jurisdiction over
energy policy a report containing an estimation of the rate impact of activities of the electric
utility necessary to comply with this section. In consultation with the Department of
Commerce, the commission shall determine a uniform reporting system to ensure that
individual utility reports are consistent and comparable, and shall, by order, require each
electric utility subject to this section to use that reporting system. The rate impact estimate
must be for wholesale rates and, if the electric utility makes retail sales, the estimate shall
also be for the impact on the electric utility's retail rates. Those activities include, without
limitation, energy purchases, generation facility acquisition and construction, and
transmission improvements. deleted text begin An initial report must be submitted within 150 days of May
28, 2011. After the initial report, deleted text end A report must be updated and submitted as part of each
integrated resource plan or plan modification filed by the electric utility under section
216B.2422. The reporting obligation of an electric utility under this subdivision expires
December 31, deleted text begin 2025, for an electric utility subject to subdivision 2a, paragraph (a), and
December 31, 2020, for an electric utility subject to subdivision 2a, paragraph (b) deleted text end new text begin 2040 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2020, section 216B.1691, subdivision 2f, is amended to read:

Subd. 2f.

Solar energy standard.

(a) In addition to the requirements of subdivisions 2a
and deleted text begin 2b deleted text end new text begin 2g new text end , each public utility shall generate or procure sufficient electricity generated by
solar energy to serve its retail electricity customers in Minnesota so that by the end of 2020,
at least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota
is generated by solar energy.

(b) For a public utility with more than 200,000 retail electric customers, at least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured from
solar photovoltaic devices with a nameplate capacity of 40 kilowatts or less.

(c) A public utility with between 50,000 and 200,000 retail electric customers:

(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
less; and

(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
of 40 kilowatts or less to a community solar garden program operated by the public utility
that has been approved by the commission.

(d) The solar energy standard established in this subdivision is subject to all the provisions
of this section governing a utility's standard obligation under subdivision 2a.

(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail
electric sales in Minnesota be generated by solar energy.

(f) For the purposes of calculating the total retail electric sales of a public utility under
this subdivision, there shall be excluded retail electric sales to customers that are:

(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or

(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer.

Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.

(g) A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
solar standard under this subdivision.

(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota after
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.

deleted text begin (i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall file
a report with the commission reporting its progress in achieving the solar energy standard
established under this subdivision.
deleted 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. 16.

Minnesota Statutes 2020, section 216B.1691, is amended by adding a subdivision
to read:

new text begin Subd. 2g. new text end

new text begin Carbon-free standard. new text end

new text begin In addition to the requirements under subdivisions
2a and 2f, each electric utility must generate or procure sufficient electricity generated from
a carbon-free energy technology to provide the utility's retail customers in Minnesota, or
the retail customers of a distribution utility to which the electric utility provides wholesale
electric service, so that at least the following standard percentages of the electric utility's
total retail electric sales to retail customers in Minnesota are generated from carbon-free
energy technologies by the end of the year indicated:
new text end

new text begin (1) new text end	new text begin 2025 new text end	new text begin 65 percent new text end
new text begin (2) new text end	new text begin 2030 new text end	new text begin 80 percent new text end
new text begin (3) new text end	new text begin 2035 new text end	new text begin 90 percent new text end
new text begin (4) new text end	new text begin 2040 new text end	new text begin 100 percent. 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. 17.

Minnesota Statutes 2020, section 216B.1691, subdivision 3, is amended to read:

Subd. 3.

Utility plans filed with commission.

(a) Each electric utility shall report on
its plans, activities, and progress with regard to the deleted text begin objectives and standards of deleted text end new text begin standard
obligations under new text end this section in its filings under section 216B.2422 or in a separate report
submitted to the commission every two years, whichever is more frequent, demonstrating
to the commission the utility's effort to comply with this section. In its resource plan or a
separate report, each electric utility shall provide a description of:

(1) the status of the utility's renewable energy mix relative to the deleted text begin objective and standards deleted text end new text begin
standard obligations new text end ;

(2) efforts taken to meet the deleted text begin objective and standards deleted text end new text begin standard obligations new text end ;

(3) any obstacles encountered or anticipated in meeting the deleted text begin objective or standards; and deleted text end new text begin
standard obligations;
new text end

(4) potential solutions to the obstacles deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) the number of Minnesotans employed to construct facilities designed to meet the
utility's standard obligations under this section;
new text end

new text begin (6) efforts taken to retain and retrain workers employed at electric generating facilities
that the utility has ceased operating or designated to cease operating for new positions
constructing or operating facilities to meet a utility's standard obligation;
new text end

new text begin (7) impacts of facilities designed to meet the utility's standard obligations under this
section on areas of concern for environmental justice; and
new text end

new text begin (8) efforts to increase the diversity of both its workforce and vendors.
new text end

(b) The commissioner shall compile the information provided to the commission under
paragraph (a), and report to the chairs of the house of representatives and senate committees
with jurisdiction over energy and environment policy issues as to the progress of utilities
in the state, including the progress of each individual electric utility, in increasing the amount
of renewable energy provided to retail customers, with any recommendations for regulatory
or legislative action, by January 15 of each odd-numbered year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2020, section 216B.1691, subdivision 4, is amended to read:

Subd. 4.

Renewable energy credits.

(a) To facilitate compliance with this section, the
commission, by rule or order, shall establish by January 1, 2008, a program for tradable
renewable energy credits for electricity generated by eligible energy technology. The credits
must represent energy produced by an eligible energy technology, as defined in subdivision
1. Each kilowatt-hour of renewable energy credits must be treated the same as a kilowatt-hour
of eligible energy technology generated or procured by an electric utility if it is produced
by an eligible energy technology. The program must permit a credit to be used only once.
The program must treat all eligible energy technology equally and shall not give more or
less credit to energy based on the state where the energy was generated or the technology
with which the energy was generated. The commission must determine the period in which
the credits may be used for purposes of the program.

(b) In lieu of generating or procuring energy directly to satisfy deleted text begin the eligible energy
technology objective or deleted text end new text begin a new text end standard deleted text begin of deleted text end new text begin obligation under new text end this section, an electric utility may
utilize renewable energy credits allowed under the program to satisfy the deleted text begin objective or deleted text end
standard.

(c) The commission shall facilitate the trading of renewable energy credits between
states.

(d) The commission shall require all electric utilities to participate in a
commission-approved credit-tracking system or systems. Once a credit-tracking system is
in operation, the commission shall issue an order establishing protocols for trading credits.

deleted text begin (e) An electric utility subject to subdivision 2a, paragraph (b), may not sell renewable
energy credits to an electric utility subject to subdivision 2a, paragraph (a), until 2021.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2020, section 216B.1691, subdivision 5, is amended to read:

Subd. 5.

Technology based on fuel combustion.

(a) Electricity produced by fuel
combustion through fuel blending or co-firing under paragraph (b) may only count toward
a utility's deleted text begin objectives or standards deleted text end new text begin standard obligation new text end if the generation facility:

(1) was constructed in compliance with new source performance standards promulgated
under the federal Clean Air Act, United States Code, title 42, section 7401 et seq., for a
generation facility of that type; or

(2) employs the maximum achievable or best available control technology available for
a generation facility of that type.

(b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1,
paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage
of electricity that is attributable to a fuel listed in that clause can be counted toward an
electric utility's deleted text begin renewable energy objectives deleted text end new text begin standard obligation new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2020, section 216B.1691, subdivision 7, is amended to read:

Subd. 7.

Compliance.

The commission must regularly investigate whether an electric
utility is in compliance with its deleted text begin good faith objective under subdivision 2 and deleted text end standard
obligation under deleted text begin subdivision deleted text end new text begin subdivisions new text end 2a new text begin , 2f, and 2g new text end . If the commission finds
noncompliance, it may order the electric utility to construct facilities, purchase energy
generated by eligible energy technology, purchase renewable energy credits, or engage in
other activities to achieve compliance. If an electric utility fails to comply with an order
under this subdivision, the commission may impose a financial penalty on the electric utility
in an amount not to exceed the estimated cost of the electric utility to achieve compliance.
The penalty may not exceed the lesser of the cost of constructing facilities or purchasing
credits. The commission must deposit financial penalties imposed under this subdivision
in the energy and conservation account established in the special revenue fund under section
216B.241, subdivision 2a. This subdivision is in addition to and does not limit any other
authority of the commission to enforce this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2020, section 216B.1691, subdivision 9, is amended to read:

Subd. 9.

Local benefits.

new text begin (a) new text end The commission shall take all reasonable actions within its
statutory authority to ensure this section is implemented deleted text begin to maximize deleted text end new text begin in a manner that
maximizes net new text end benefits to new text begin all new text end Minnesota citizens deleted text begin , balancing deleted text end new text begin throughout the state, including
but not limited to:
new text end

new text begin (1) the creation of high-quality jobs in Minnesota paying wages that support families;
new text end

new text begin (2) recognition of the rights of workers to organize and unionize;
new text end

new text begin (3) ensuring that workers have the necessary tools, opportunities, and economic assistance
to adapt successfully during the energy transition, particularly in areas of concern for
environmental justice;
new text end

new text begin (4) ensuring that all Minnesotans share the benefits of clean and renewable energy, and
the opportunity to participate fully in the clean energy economy;
new text end

new text begin (5) ensuring that statewide air emissions are reduced, particularly in areas of concern
for environmental justice; and
new text end

new text begin (6) the provision of affordable electric service to Minnesotans, particularly to low-income
consumers.
new text end

new text begin (b) The commission must also implement this section in a manner that balances new text end factors
such as local ownership of or participation in energy production, development and ownership
of eligible energy technology facilities by independent power producers, Minnesota utility
ownership of eligible energy technology facilities, the costs of energy generation to satisfy
the renewable deleted text begin standard deleted text end new text begin and carbon-free standards new text end , and the reliability of electric service to
Minnesotans.

new text begin (c) When making investments to meet the requirements under this section, utilities are
encouraged to locate new energy generating facilities in Minnesota communities where
fossil-fuel generating plants have been retired or are scheduled for retirement.
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. 22.

Minnesota Statutes 2020, section 216B.1691, subdivision 10, is amended to read:

Subd. 10.

Utility acquisition of resources.

A competitive resource acquisition process
established by the commission prior to June 1, 2007, shall not apply to a utility for the
construction, ownership, and operation of generation facilities used to satisfy the requirements
of this section unless, upon a finding that it is in the public interest, the commission issues
an order on or after June 1, 2007, that requires compliance by a utility with a competitive
resource acquisition process. A utility that owns a nuclear generation facility and intends
to construct, own, or operate facilities under this section shall file with the commission deleted text begin on
or before March 1, 2008, deleted text end new text begin as part of the utility's filing under section 216B.2422 new text end a renewable
energy plan setting forth the manner in which the utility proposes to meet the requirements
of this section. deleted text begin The utility shall update the plan as necessary in its filing under section
216B.2422. deleted text end The commission shall approve the plan unless it determines, after public hearing
and comment, that the plan is not in the public interest. As part of its determination of public
interest, the commission shall consider the plan's impact on balancing the state's interest in:

(1) promoting the policy of economic development in rural areas through the development
of renewable energy projects, as expressed in subdivision 9;

(2) maintaining the reliability of the state's electric power grid; and

(3) minimizing cost impacts on ratepayers.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2020, section 216B.2422, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more
of electric power and serving, either directly or indirectly, the needs of 10,000 retail
customers in Minnesota. Utility does not include federal power agencies.

(c) "Renewable energy" means electricity generated through use of any of the following
resources:

(1) wind;

(2) solar;

(3) geothermal;

(4) hydro;

(5) trees or other vegetation;

(6) landfill gas; or

(7) predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge.

(d) "Resource plan" means a set of resource options that a utility could use to meet the
service needs of its customers over a forecast period, including an explanation of the supply
and demand circumstances under which, and the extent to which, each resource option
would be used to meet those service needs. These resource options include using,
refurbishing, and constructing utility plant and equipment, buying power generated by other
entities, controlling customer loads, and implementing customer energy conservation.

(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating
resource of 30 megawatts or greater.

(f) "Energy storage system" means a commercially available technology that:

(1) uses mechanical, chemical, or thermal processes to:

(i) store energy, deleted text begin including energy generated from renewable resources and energy that
would otherwise be wasted, deleted text end and deliver the stored energy for use at a later time; or

(ii) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time;

deleted text begin (2) is composed of stationary equipment;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end if being used for electric grid benefits, is new text begin (i) new text end operationally visible new text begin to the distribution
or transmission entity managing it, new text end and new text begin (ii) new text end capable of being controlled by the distribution
or transmission entity deleted text begin managing it, deleted text end to enable and optimize the safe and reliable operation
of the electric system; and

deleted text begin (4) deleted text end new text begin (3) new text end achieves any of the following:

(i) reduces peak or electrical demand;

(ii) defers the need or substitutes for an investment in electric generation, transmission,
or distribution assets;

(iii) improves the reliable operation of the electrical transmission or distribution systems deleted text begin ,
while ensuring transmission or distribution needs are not created deleted text end ; deleted text begin or deleted text end new text begin and
new text end

(iv) deleted text begin lowers customer costs deleted text end new text begin produces a net ratepayer benefit new text end by storing energy when the
cost of generating or purchasing deleted text begin it deleted text end new text begin energy new text end is low and delivering deleted text begin it deleted text end new text begin energy new text end to customers when
the costs are high.

new text begin (g) Clean energy resource means:
new text end

new text begin (1) renewable energy, as defined in section 216B.2422, subdivision 1, paragraph (c);
new text end

new text begin (2) an energy storage system storing energy generated by renewable energy or a
carbon-free resource;
new text end

new text begin (3) energy efficiency, as defined in section 216B.241, subdivision 1;
new text end

new text begin (4) load management, as defined in section 216B.241, subdivision 1; or
new text end

new text begin (5) a carbon-free resource that the commission has determined is cost competitive under
subdivision 4, paragraph (g).
new text end

new text begin (h) "Carbon-free resource" means a generation technology that, when operating, does
not contribute to statewide greenhouse gas emissions, as defined in section 216H.01,
subdivision 2.
new text end

new text begin (i) "Nonrenewable energy facility" means a generation facility that does not use a
renewable energy or other clean energy resource. Nonrenewable facility does not include
a nuclear facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 24.

Minnesota Statutes 2020, section 216B.2422, subdivision 2, is amended to read:

Subd. 2.

Resource plan filing and approval.

(a) A utility shall file a resource plan with
the commission periodically in accordance with rules adopted by the commission. The
commission shall approve, reject, or modify the plan of a public utility, as defined in section
216B.02, subdivision 4, consistent with the public interest.

(b) In the resource plan proceedings of all other utilities, the commission's order shall
be advisory and the order's findings and conclusions shall constitute prima facie evidence
which may be rebutted by substantial evidence in all other proceedings. With respect to
utilities other than those defined in section 216B.02, subdivision 4, the commission shall
consider the filing requirements and decisions in any comparable proceedings in another
jurisdiction.

(c) As a part of its resource plan filing, a utility shall include the least cost plan for
meeting 50 deleted text begin and deleted text end new text begin , new text end 75 new text begin , and 100 new text end percent of all energy needs from both new and refurbished
generating facilities through a combination of deleted text begin conservation and renewable deleted text end new text begin clean new text end energy new text begin and
carbon-free new text end resources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 25.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 2d. new text end

new text begin Plan to minimize impacts to workers due to facility retirement. new text end

new text begin A utility
required to file a resource plan under subdivision 2 that has scheduled the retirement of an
electric generating facility located in Minnesota must include in the filing a narrative
describing the utility's efforts, in conjunction with the utility's workers and the workers'
designated representatives, to develop a plan to minimize the dislocations employees may
suffer as a result of the facility's retirement. The narrative must address, at a minimum,
plans to:
new text end

new text begin (1) minimize financial losses to workers;
new text end

new text begin (2) provide a transition timeline to ensure certainty for workers;
new text end

new text begin (3) protect pension benefits;
new text end

new text begin (4) extend or replace health insurance, life insurance, and other employment benefits;
new text end

new text begin (5) identify and maximize employment opportunities within the utility for dislocated
workers, including providing incentives for the utility to retain as many workers as possible;
new text end

new text begin (6) provide training and skill development for workers who must or choose to leave the
utility;
new text end

new text begin (7) create targeted transition plans for workers at all locations impacted by the facility
retirement; and
new text end

new text begin (8) quantify any additional costs the utility would incur and specifying what costs, if
any, the utility would request be recovered in the utility's rates as a result of efforts made
under this subdivision to minimize impacts to workers.
new text end

Sec. 26.

Minnesota Statutes 2020, section 216B.2422, subdivision 3, is amended to read:

Subd. 3.

Environmental costs.

(a) The commission shall, deleted text begin to the extent practicable deleted text end new text begin using
the best available scientific and economic information and data new text end , quantify and establish a
range of environmental costs associated with each method of electricity generation. new text begin The
commission shall adopt and apply the interim cost of greenhouse gas emissions valuations
presented in Technical Support Document: Social Cost of Carbon, Methane, and Nitrous
Oxide Interim Estimates, released by the federal government in February 2021, adopting
the 300-year time horizon and the full range of discount rates from 2.5 to five percent, with
three percent as the central estimate, and shall update the parameters as necessary to conform
with updates released by the federal Interagency Working Group on the Social Cost of
Greenhouse Gases or successors that are above the February 2021 interim valuations.
new text end

new text begin (b) When evaluating and selecting resource options in all proceedings before the
commission, including but not limited to proceedings regarding power purchase agreements,
resource plans, and certificates of need, new text end a utility deleted text begin shall deleted text end new text begin must new text end use the values established by
the commission deleted text begin in conjunction with other external factors, including socioeconomic costs,
when evaluating and selecting resource options in all proceedings before the commission,
including resource plan and certificate of need proceedings. deleted text end new text begin under this subdivision to quantify
and monetize greenhouse gas and other emissions from the full lifecycle of fuels used for
in-state or imported electricity generation, including extraction, processing, transport, and
combustion.
new text end

new text begin (c) When evaluating resource options, the commission must include and consider the
environmental cost values adopted under this subdivision. When considering the costs of a
nonrenewable energy facility under this section, the commission must consider only nonzero
values for the environmental costs analyzed under this subdivision, including both the low
and high values of any cost range adopted by the commission.
new text end

deleted text begin (b) The commission shall establish interim environmental cost values associated with
each method of electricity generation by March 1, 1994. These values expire on the date
the commission establishes environmental cost values under paragraph (a).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 27.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Favored electric resources; state policy. new text end

new text begin It is the policy of the state that: (1)
in order to hasten the achievement of the greenhouse gas reduction goals under section
216H.02, the renewable energy standard under section 216B.1691, subdivision 2a, and the
solar energy standard under section 216B.1691, subdivision 2f; and (2) given the significant
and continuing reductions in the cost of wind technologies, solar technologies, energy
storage systems, demand-response technologies, and energy efficiency technologies and
strategies, the favored method to meet electricity demand in Minnesota is a combination of
clean energy resources.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 28.

Minnesota Statutes 2020, section 216B.2422, subdivision 4, is amended to read:

Subd. 4.

Preference for deleted text begin renewable deleted text end new text begin clean new text end energy deleted text begin facility deleted text end new text begin resources new text end .

new text begin (a) new text end 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 new text begin approve
a power purchase agreement or new text end allow rate recovery pursuant to section 216B.16 for deleted text begin such deleted text end a
nonrenewable energy facility, unless the utility has demonstrated new text begin by clear and convincing
evidence new text end that a renewable energy facility new text begin , alone or in combination with other clean energy
resources, new text end is not in the public interest. deleted text begin When making the public interest determination, the deleted text end
deleted text begin commission must consider:
deleted text end

deleted text begin (1) 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;
deleted text end

deleted text begin (2) impacts on local and regional grid reliability;
deleted text end

deleted text begin (3) utility and ratepayer impacts resulting from the intermittent nature of renewable
energy facilities, including but not limited to the costs of purchasing wholesale electricity
in the market and the costs of providing ancillary services; and
deleted text end

deleted text begin (4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
changes in transmission costs, portfolio diversification, and environmental compliance
costs.
deleted text end

new text begin (b) In order to determine that a renewable energy facility, alone or in combination with
other clean energy resources, is not in the public interest, the commission must find by clear
and convincing evidence that using renewable or clean energy resources to meet the need
for resources is not affordable or reliable when compared with a nonrenewable energy
facility or nonclean energy resource.
new text end

new text begin (c) When determining whether a renewable or clean energy resource is not affordable,
the commission must consider utility and ratepayer effects resulting from:
new text end

new text begin (1) the intermittent nature of renewable energy facilities, including but not limited to
the cost to purchase wholesale electricity in the market and the cost to provide ancillary
services;
new text end

new text begin (2) reduced exposure to fuel price volatility, changes in transmission and distribution
costs, portfolio diversification, and environmental compliance costs; and
new text end

new text begin (3) other environmental costs resulting from a nonrenewable energy facility, as determined
by the commission under subdivision 3.
new text end

new text begin (d) When determining whether a renewable or clean energy resource is reliable, the
commission must consider, to the extent reasonable, the ability of the resources or facilities
of the utility and the regional electric grid to provide essential reliability services, including
frequency response, balancing services, and voltage control.
new text end

new text begin (e) The commission must make a written determination describing the commission's
findings and the reasoning behind the conclusions regarding whether a renewable or clean
energy resource is affordable and reliable under this subdivision. When making the public
interest determination under paragraph (a), the commission must also consider and make a
written determination as to whether the energy resources approved by the commission:
new text end

new text begin (1) help the state achieve the greenhouse gas reduction goals under section 216H.02;
and
new text end

new text begin (2) help the utility achieve the renewable energy standard under section 216B.1691,
subdivision 2a, or the solar energy standard under section 216B.1691, subdivision 2f.
new text end

new text begin (f) Nothing in this section impacts a decision to continue operating a nuclear facility
that is generating energy in Minnesota as of June 1, 2020. If a decision is made to retire an
existing nuclear electric generating unit, paragraphs (a) to (e) govern the process to identify
replacement resources.
new text end

new text begin (g) The commission may, by order, add to the list of resources the commission determines
are clean energy resources for the purposes of this section upon finding that the resource is
carbon-free and cost competitive when compared with other carbon-free alternatives.
new text end

new text begin (h) If the commission approves a public utility's integrated resource plan that includes
the retirement of a facility that contributes to statewide greenhouse gas emissions, the public
utility is entitled to own at least a portion of the generation, transmission, and other facilities
necessary to replace the accredited capacity and energy of the retiring facility, as determined
by the commission, provided that:
new text end

new text begin (1) for a public utility with more than 200,000 retail electric customers in Minnesota,
the approved resource plan projects that the public utility's contribution to statewide
greenhouse gas emissions are reduced by 80 percent or more, measured from 2005 to 2030;
new text end

new text begin (2) for a public utility with more than 100,000 but fewer than 200,000 retail electric
customers, the approved resource plan projects that the public utility's contribution to
statewide greenhouse gas emissions are reduced by 80 percent or more, measured from
2005 to 2035;
new text end

new text begin (3) for a public utility with fewer than 100,000 retail electric customers in Minnesota,
the approved resource plan projects that the public utility's contribution to statewide
greenhouse gas emissions are reduced by 65 percent or more, measured from 2005 to 2030;
and
new text end

new text begin (4) the commission determines that the public utility's ownership of clean energy and
carbon-free resources that replace retired facilities is reasonable and in the public interest.
new text end

new text begin (i) Utility purchases or contracts to purchase capacity, energy, or ancillary services from
an independent systems operator, an auction, or other market administered by an independent
systems operator, and whose term is one year or less, are not subject to this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 29.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Preference for local job creation. new text end

new text begin As part of a resource plan filing, a utility
must report on associated local job impacts and the steps the utility and the utility's energy
suppliers and contractors are taking to maximize the availability of construction employment
opportunities for local workers. The commission must consider local job impacts and give
preference to proposals that maximize the creation of construction employment opportunities
for local workers, consistent with the public interest, when evaluating any utility proposal
that involves the selection or construction of facilities used to generate or deliver energy to
serve the utility's customers, including but not limited to an integrated resource plan, a
certificate of need, a power purchase agreement, or commission approval of a new or
refurbished electric generation facility. The commission must, to the maximum extent
possible, prioritize the hiring of workers from communities hosting retiring electric generation
facilities, including workers previously employed at those facilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 30.

Minnesota Statutes 2020, section 216B.2422, subdivision 5, is amended to read:

Subd. 5.

Bidding; exemption from certificate of need proceeding.

(a) A utility may
select resources to meet its projected energy demand through a bidding process approved
or established by the commission. A utility shall use the environmental cost estimates
determined under subdivision 3 deleted text begin in deleted text end new text begin and consider local job impacts when new text end evaluating bids
submitted in a process established under this subdivision.

(b) Notwithstanding any other provision of this section, if an electric power generating
plant, as described in section 216B.2421, subdivision 2, clause (1), is selected in a bidding
process approved or established by the commission, a certificate of need proceeding under
section 216B.243 is not required.

(c) A certificate of need proceeding is also not required for an electric power generating
plant that has been selected in a bidding process approved or established by the commission,
or such other selection process approved by the commission, to satisfy, in whole or in part,
the wind power mandate of section 216B.2423 or the biomass mandate of section 216B.2424.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 31.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Transmission planning in advance of generation retirement. new text end

new text begin A utility must
identify in a resource plan each nonrenewable energy facility on the utility's system that
has a depreciation term, probable service life, or operating license term that ends within 15
years of the resource plan filing date. For each nonrenewable energy facility identified, the
utility must include in the resource plan an initial plan to: (1) replace the nonrenewable
energy facility; and (2) upgrade any transmission or other grid capabilities needed to support
the retirement of that nonrenewable energy facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 32.

new text begin [216B.2427] NATURAL GAS UTILITY INNOVATION PLANS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Carbon capture" means the capture of greenhouse gas emissions that would otherwise
be released into the atmosphere.
new text end

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

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

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

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

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

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

new text begin (j) "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas
emissions per unit of energy.
new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin (1) the sum of:
new text end

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

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

new text begin (iii) incremental costs to procure innovative resources from third parties;
new text end

new text begin (iv) incremental costs to develop and administer programs; and
new text end

new text begin (v) incremental costs for research and development related to innovative resources;
new text end

new text begin (2) less the sum of:
new text end

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

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

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

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

new text begin Subd. 2. new text end

new text begin Innovation plans. new text end

new text begin (a) A natural gas utility may file an innovation plan with
the commission. The utility's plan must include, as applicable, the following components:
new text end

new text begin (1) the innovative resource or resources the utility plans to implement to contribute to
meeting the state's greenhouse gas and renewable energy goals, including those established
in section 216C.05, subdivision 2, clause (3), and section 216H.02, subdivision 1, within
the requirements and limitations set forth in this section;
new text end

new text begin (2) research and development investments related to innovative resources the utility
plans to undertake;
new text end

new text begin (3) total lifecycle greenhouse gas emissions that the utility projects are reduced or avoided
through implementing the plan;
new text end

new text begin (4) a comparison of the estimate in clause (3) to total emissions from natural gas use by
utility customers in 2020;
new text end

new text begin (5) a description of each pilot program included in the plan that is related to the
development or provision of innovative resources, and an estimate of the total incremental
costs to implement each element;
new text end

new text begin (6) the cost-effectiveness of innovative resources calculated from the perspective of the
utility, society, the utility's nonparticipating customers, and the utility's participating
customers compared to other innovative resources that could be deployed to reduce or avoid
the same greenhouse gas emissions targeted for reduction by the utility's proposed innovative
resource;
new text end

new text begin (7) for any pilot program not previously approved as part of the utility's most recent
innovation plan, a third-party analysis of:
new text end

new text begin (i) the lifecycle greenhouse gas emissions intensity of the proposed innovative resources;
and
new text end

new text begin (ii) the forecasted lifecycle greenhouse gas emissions reduced or avoided if the proposed
pilot program is implemented;
new text end

new text begin (8) an explanation of the methodology used by the utility to calculate the lifecycle
greenhouse gas emissions avoided or reduced by each pilot program included in the plan,
including descriptions of how the utility's method deviated, if at all, from the carbon
accounting frameworks established by the commission under section 216B.2428;
new text end

new text begin (9) a discussion of whether the plan supports the development and use of alternative
agricultural products, waste reduction, reuse, or anaerobic digestion of organic waste, and
the recovery of energy from wastewater, and, if it does, a description of the geographic
areas of the state in which the benefits are realized;
new text end

new text begin (10) a description of third-party systems and processes the utility plans to use to:
new text end

new text begin (i) track the innovative resources included in the plan so that environmental benefits
produced by the plan are not claimed for any other program; and
new text end

new text begin (ii) verify the environmental attributes and greenhouse gas emissions intensity of
innovative resources included in the plan;
new text end

new text begin (11) projected local job impacts resulting from implementation of the plan and a
description of steps the utility and the utility's energy suppliers and contractors are taking
to maximize the availability of construction employment opportunities for local workers;
new text end

new text begin (12) a description of how the utility proposes to recover annual total incremental costs
of the plan;
new text end

new text begin (13) steps the utility has taken or proposes to take to reduce the expected cost of the plan
on low- and moderate-income residential customers and to ensure that low- and
moderate-income residential customers benefit from innovative resources included in the
plan;
new text end

new text begin (14) a report on the utility's progress toward implementing the utility's previously
approved innovation plan, if applicable;
new text end

new text begin (15) a report of the utility's progress toward achieving the cost-effectiveness objectives
established by the commission with respect to the utility's previously approved innovation
plan, if applicable; and
new text end

new text begin (16) collections of pilot programs that the utility estimates would, if implemented, provide
approximately 50 percent, 150 percent, and 200 percent of the greenhouse gas reduction or
avoidance benefits of the utility's proposed plan.
new text end

new text begin (b) The commission must approve, modify, or reject a plan. The commission must not
approve an innovation plan unless the commission finds:
new text end

new text begin (1) the size, scope, and scale of the plan produces net benefits under the cost-benefit
framework established by the commission in section 216B.2428;
new text end

new text begin (2) the plan promotes the use of renewable energy resources and reduces or avoids
greenhouse gas emissions at a cost level consistent with subdivision 3;
new text end

new text begin (3) the plan promotes local economic development;
new text end

new text begin (4) the innovative resources included in the plan have a lower lifecycle greenhouse gas
intensity than natural gas produced from conventional geologic sources;
new text end

new text begin (5) the systems used to track and verify the environmental attributes of the innovative
resources included in the plan are reasonable, considering available third-party tracking and
verification systems;
new text end

new text begin (6) the costs and revenues projected under the plan are reasonable in comparison to other
innovative resources the utility could deploy to reduce greenhouse gas emissions, considering
other benefits of the innovative resources included in the plan;
new text end

new text begin (7) the total amount of estimated greenhouse gas emissions reduction or avoidance to
be achieved under the plan is reasonable considering the state's greenhouse gas and renewable
energy goals, including those established in section 216C.05, subdivision 2, clause (3), and
section 216H.02, subdivision 1; customer cost; and the total amount of greenhouse gas
emissions reduction or avoidance achieved under the utility's previously approved plans, if
applicable; and
new text end

new text begin (8) any renewable natural gas purchased by a utility under the plan that is produced from
the anaerobic digestion of manure is certified as being produced at an agricultural livestock
production facility that does not increase the number of animal units at the facility solely
or primarily to produce renewable natural gas for the plan.
new text end

new text begin (c) In seeking to recover costs under a plan approved by the commission under this
section, the utility must demonstrate to the satisfaction of the commission that the actual
total incremental costs incurred to implement the approved innovation plan are reasonable.
Prudently incurred costs under an approved plan, including prudently incurred costs to
obtain the third-party analysis required in paragraph (a), clauses (6) and (7), are recoverable
either:
new text end

new text begin (1) under section 216B.16, subdivision 7, clause (2), via the utility's purchased gas
adjustment;
new text end

new text begin (2) in the utility's next general rate case; or
new text end

new text begin (3) via annual adjustments, provided that after notice and comment the commission
determines that the costs included for recovery through rates are prudently incurred. Annual
adjustments must include a rate of return, income taxes on the rate of return, incremental
property taxes, incremental depreciation expense, and incremental operation and maintenance
expenses. The rate of return must be at the level approved by the commission in the utility's
last general rate case, unless the commission determines that a different rate of return is in
the public interest.
new text end

new text begin (d) Upon approval of a utility's plan, the commission shall establish cost-effectiveness
objectives for the plan based on the cost-benefit test for innovative resources developed
under section 216B.2428. The cost-effectiveness objective for each plan must demonstrate
incremental progress from the previously approved plan's cost-effectiveness objective.
new text end

new text begin (e) A utility operating under an approved plan must file annual reports to the commission
on work completed under the plan, including:
new text end

new text begin (1) costs incurred;
new text end

new text begin (2) lifecycle greenhouse gas emissions reductions or avoidance achieved;
new text end

new text begin (3) a description of the processes used to track and verify the innovative resources and
to retire the associated environmental attributes;
new text end

new text begin (4) an assessment of the degree to which the lifecycle greenhouse gas accounting
methodology is consistent with current science;
new text end

new text begin (5) the economic impact of the plan, including job creation;
new text end

new text begin (6) the utility's progress toward achieving the cost-effectiveness objectives established
by the commission; and
new text end

new text begin (7) modifications to elements of the plan proposed by the utility.
new text end

new text begin (f) When evaluating a utility's annual report, the commission may:
new text end

new text begin (1) approve the continuation of a pilot program included in the plan, with or without
modifications;
new text end

new text begin (2) require the utility to file a new or modified pilot program or plan; or
new text end

new text begin (3) disapprove the continuation of a pilot program or plan.
new text end

new text begin (g) An innovation plan has a term of five years. A subsequent innovation plan must be
filed no later than four years after the previous plan was approved by the commission so
that, if approved, the new plan takes effect immediately upon expiration of the previous
plan.
new text end

new text begin (h) For purposes of this section and the commission's lifecycle carbon accounting
framework and cost-benefit test for innovative resources under section 216B.2428, any
required analysis of lifecycle greenhouse gas emissions reductions or avoidance, or lifecycle
greenhouse gas intensity:
new text end

new text begin (1) must include but is not limited to estimates of:
new text end

new text begin (i) avoided or reduced greenhouse gas emissions attributable to utility operations;
new text end

new text begin (ii) avoided or reduced greenhouse gas emissions from the production, processing, and
transmission of fuels prior to receipt by the utility; and
new text end

new text begin (iii) avoided or reduced greenhouse gas emissions at the point of end use;
new text end

new text begin (2) must not count any unit of greenhouse gas emissions avoidance or reduction more
than once; and
new text end

new text begin (3) may, where direct measurement is not technically or economically feasible, rely on
emissions factors, default values, or engineering estimates from a publicly accessible source
accepted by a federal or state government agency, provided that the emissions factors,
default values, or engineering estimates can be demonstrated to the satisfaction of the
commission to produce a reasonable estimate of greenhouse gas emissions reductions,
avoidance, or intensity.
new text end

new text begin (i) Strategic electrification implemented in a plan approved by the commission under
this section is not eligible for a financial incentive under section 216B.241, subdivision 2c.
Electric end-use equipment installed under a plan approved by the commission under this
section is the exclusive property of the building owner.
new text end

new text begin Subd. 3. new text end

new text begin Limitations on utility customer costs. new text end

new text begin (a) Except as provided in paragraph
(b), the first innovation plan submitted to the commission by a utility must not propose, and
the commission must not approve, annual total incremental costs exceeding the lesser of:
new text end

new text begin (1) 1.75 percent of the utility's gross operating revenues from natural gas service provided
in Minnesota at the time of plan filing; or
new text end

new text begin (2) $20 per nonexempt customer, based on the proposed annual total incremental costs
for each year of the plan divided by the total number of nonexempt utility customers.
new text end

new text begin (b) The commission may approve additional annual costs up to the lesser of:
new text end

new text begin (1) an additional 0.25 percent of the utility's gross operating revenues from service
provided in Minnesota at the time of plan filing; or
new text end

new text begin (2) $5 per nonexempt customer, based on the proposed annual total incremental costs
for each year of the plan divided by the total number of nonexempt utility customers of
incremental costs, provided that the additional costs under this paragraph are associated
exclusively with the purchase of renewable natural gas produced from:
new text end

new text begin (i) food waste diverted from a landfill;
new text end

new text begin (ii) a municipal wastewater treatment system; or
new text end

new text begin (iii) an organic mixture that includes at least 15 percent, by volume, sustainably harvested
native prairie grasses or locally appropriate cover crops, as determined by a local soil and
water conservation district or the United States Department of Agriculture, Natural Resources
Conservation Service.
new text end

new text begin (c) If the commission determines that the utility has successfully achieved the
cost-effectiveness objectives established in the utility's most recently approved innovation
plan, except as provided in paragraph (d), the next subsequent plan filed by the utility under
this section is subject to the provisions of paragraphs (a) and (b), except that:
new text end

new text begin (1) the cap on total incremental costs in paragraph (a) with respect to the second plan is
the lesser of:
new text end

new text begin (i) 2.75 percent of the utility's gross operating revenues from natural gas service in
Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $35 per nonexempt customer; and
new text end

new text begin (2) the cap on additional costs in paragraph (b) is the lesser of:
new text end

new text begin (i) an additional 0.75 percent of the utility's gross operating revenues from natural gas
service in Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $10 per nonexempt customer.
new text end

new text begin (d) If the commission determines that the utility has successfully achieved the
cost-effectiveness objectives established in two of the same utility's previously approved
innovation plans, all subsequent plans filed by the utility under this section are subject to
the provisions of paragraphs (a) and (b), except that:
new text end

new text begin (1) the cap on total incremental costs in paragraph (a) with respect to the third or
subsequent plan is the lesser of:
new text end

new text begin (i) four percent of the utility's gross operating revenues from natural gas service in
Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $50 per nonexempt customer; and
new text end

new text begin (2) the cap on additional costs in paragraph (b) is the lesser of:
new text end

new text begin (i) an additional 1.5 percent of the utility's gross operating revenues from natural gas
service in Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $20 per nonexempt customer.
new text end

new text begin (e) For purposes of paragraphs (a) to (d), the limits on annual total incremental costs
must be calculated at the time the innovation plan is filed as the average of the utility's
forecasted total incremental costs over the five-year term of the plan.
new text end

new text begin (f) A large customer facility that the commissioner of commerce has exempted from a
utility's conservation improvement program under section 216B.241, subdivision 1a,
paragraph (b), is exempt from the utility's innovation plan offerings and must not be charged
any costs incurred to implement an approved innovation plan unless the large customer
facility files a request with the commissioner to be included in a utility's innovation plan.
The commission may prohibit large customer facilities exempt from innovation plan costs
from participating in innovation plans.
new text end

new text begin (g) A utility filing an innovation plan may include annual spending and investments on
research and development of up to ten percent of the proposed total incremental costs related
to innovative plans, subject to the limitations in paragraphs (a) to (e).
new text end

new text begin (h) For purposes of this subdivision, gross operating revenues do not include revenues
from large customer facilities exempt from innovation plan costs.
new text end

new text begin Subd. 4. new text end

new text begin Innovative resources procured outside of an innovation plan. new text end

new text begin (a) Without
filing an innovation plan, a natural gas utility may propose and the commission may approve
cost recovery for:
new text end

new text begin (1) innovative resources acquired to satisfy a commission-approved green tariff program
that allows customers to choose to meet a portion of the customers' energy needs through
innovative resources; or
new text end

new text begin (2) utility expenditures for innovative resources procured at a cost that is within five
percent of the average of Ventura and Demarc index prices for natural gas produced from
conventional geologic sources at the time of the transaction per unit of natural gas that the
innovative resource displaces.
new text end

new text begin (b) An approved green tariff program must include provisions to ensure that reasonable
systems are used to track and verify the environmental attributes of innovative resources
included in the program, taking into account any available third-party tracking or verification
systems.
new text end

new text begin (c) For the purposes of this subdivision, "Ventura and Demarc index prices" means the
daily index price of wholesale natural gas sold at the Northern Natural Gas Company's
Ventura trading hub in Hancock County, Iowa, and its demarcation point in Clifton, Kansas.
new text end

new text begin Subd. 5. new text end

new text begin Power-to-ammonia. new text end

new text begin When determining whether to approve a power-to-ammonia
pilot program as part of an innovative plan, the commission must consider:
new text end

new text begin (1) the risk of exposing any person to unhealthy concentrations of ammonia;
new text end

new text begin (2) the risk that any home or business might be affected by ammonia odors;
new text end

new text begin (3) whether the greenhouse gas emissions addressed by the proposed power-to-ammonia
project could be more efficiently addressed using power-to-hydrogen; and
new text end

new text begin (4) whether the power-to-ammonia project achieves lifecycle greenhouse gas emissions
reductions in the agricultural sector more effectively than power-to-hydrogen.
new text end

new text begin Subd. 6. new text end

new text begin Thermal energy audits. new text end

new text begin The first innovation plan filed under this section by
a utility with more than 800,000 customers must include a pilot program to provide thermal
energy audits to small- and medium-sized business in order to identify opportunities to
reduce or avoid greenhouse gas emissions from natural gas use. The pilot program must
provide incentives for businesses to implement recommendations made by the audit. The
utility must develop criteria to identify businesses that achieve significant emissions
reductions by implementing audit recommendations and must recognize the businesses as
thermal energy leaders.
new text end

new text begin Subd. 7. new text end

new text begin Innovative resources for certain industrial processes. new text end

new text begin The first innovation
plan filed under this section by a utility with more than 800,000 customers must include a
pilot program to provide innovative resources to industrial facilities whose manufacturing
processes, for technical reasons, are not amenable to electrification. A large customer facility
exempt from innovation plan offerings under subdivision 3, paragraph (f), is not eligible to
participate in the pilot program under this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Electric cold climate air-source heat pumps. new text end

new text begin (a) The first innovation plan
filed under this section by a utility with more than 800,000 customers must include a pilot
program that facilitates deep energy retrofits and the installation of cold climate electric
air-source heat pumps in existing residential homes that have natural gas heating systems.
new text end

new text begin (b) For purposes of this subdivision, "deep energy retrofit" means the installation of any
measure or combination of measures, including air sealing and addressing thermal bridges,
that under normal weather and operating conditions can reasonably be expected to reduce
a building's calculated design load to ten or fewer British Thermal Units per hour per square
foot of conditioned floor area. Deep energy retrofit does not include the installation of
photovoltaic electric generation equipment, but may include the installation of a qualifying
solar thermal energy project.
new text end

new text begin Subd. 9. new text end

new text begin District energy. new text end

new text begin The first innovation plan filed under this section by a utility
with more than 800,000 customers must include a pilot program to facilitate the development,
expansion, or modification of district energy systems in Minnesota. This subdivision does
not require the utility to propose, construct, maintain, or own district energy infrastructure.
new text end

new text begin Subd. 10. new text end

new text begin Throughput goal. new text end

new text begin It is the goal of the state of Minnesota that through the
Natural Gas Innovation Act and Conservation Improvement Program, utilities reduce the
overall amount of natural gas produced from conventional geologic sources delivered to
customers.
new text end

new text begin Subd. 11. new text end

new text begin Utility system report and forecasts. new text end

new text begin (a) A public utility filing an innovation
plan shall concurrently submit a report to the commission containing the following
information:
new text end

new text begin (1) methane gas emissions attributed to venting or leakage across the utility's system,
including emissions information reported to the Environmental Protection Agency and gas
leaks considered to be hazardous or nonhazardous, and a narrative description of the utility's
expectations regarding the cost and performance of the utility's leakage reduction programs
over the next five years;
new text end

new text begin (2) total system greenhouse gas emissions and greenhouse gas emissions projected to
be reduced or avoided through innovative resource investments and energy conservation
investments, and a narrative description of the costs required to achieve the reductions over
the next five years through investments in innovative resources and energy conservation;
new text end

new text begin (3) the quantity of pipe in service in the utility's natural gas network in Minnesota, by
material, size, coating, operating pressure, and decade of installation, based on utility
information reported to the United States Department of Transportation;
new text end

new text begin (4) a narrative description of other significant equipment owned and operated by the
utility through which gas is transported or stored, including regulator stations and storage
facilities, a discussion of the function of the equipment, how the equipment is maintained,
and utility efforts to prevent leaks from the equipment;
new text end

new text begin (5) a five-year forecast of fuel prices and anticipated purchases including, as available,
natural gas produced from conventional geologic sources, renewable natural gas, and
alternative fuels;
new text end

new text begin (6) a five-year forecast of potential capital investments by the utility in existing
infrastructure and new infrastructure for natural gas produced from conventional geologic
sources and for innovative resources; and
new text end

new text begin (7) an inventory of the utility's current financial incentive programs for natural gas,
including rebates and incentives offered for new and existing buildings and a description
of the utility's projected changes in incentives the utility is likely to implement over the next
five years.
new text end

new text begin (b) Information filed under this subdivision is intended to be used by the commission
to evaluate a utility's innovation plan in the context of the utility's other planned investments
and activities with respect to natural gas produced from conventional geologic sources.
Information filed under this subdivision must not be used by the commission to set or limit
utility rate recovery.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2022.
new text end

Sec. 33.

new text begin [216B.2428] LIFECYCLE GREENHOUSE GAS EMISSIONS
ACCOUNTING FRAMEWORK; COST-BENEFIT TEST FOR INNOVATIVE
RESOURCES.
new text end

new text begin By June 1, 2022, the commission shall, by order, issue frameworks the commission must
use to calculate lifecycle greenhouse gas emissions intensities of each innovative resource,
as follows:
new text end

new text begin (1) a general framework to compare the lifecycle greenhouse gas emissions intensities
of power-to-hydrogen, strategic electrification, renewable natural gas, district energy, energy
efficiency, biogas, carbon capture, and power-to-ammonia; and
new text end

new text begin (2) a cost-benefit analytic framework to be applied to innovative resources and innovation
plans filed under section 216B.2427 that the commission must use to compare the
cost-effectiveness of those resources and plans. This analytic framework must take into
account:
new text end

new text begin (i) the total incremental cost of the plan or resource and the lifecycle greenhouse gas
emissions avoided or reduced by the innovative resource or plan, using the framework
developed under clause (1);
new text end

new text begin (ii) additional economic costs and benefits, programmatic costs and benefits, additional
environmental costs and benefits, and other costs or benefits that may be expected under a
plan; and
new text end

new text begin (iii) baseline cost-effectiveness criteria against which an innovation plan should be
compared. When establishing baseline criteria, the commission must take into account
options available to reduce lifecycle greenhouse gas emissions from natural gas end uses
and the goals in section 216C.05, subdivision 2, clause (3), and section 216H.02, subdivision
1. To the maximum reasonable extent, the cost-benefit framework must be consistent with
environmental cost values established under section 216B.2422, subdivision 3, and other
calculations of the social value of greenhouse gas emissions reductions used by the
commission. The commission may update frameworks established under this section as
necessary.
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. 34.

new text begin [216B.247] BENEFICIAL BUILDING ELECTRIFICATION.
new text end

new text begin (a) It is the goal of the state of Minnesota to promote energy end uses powered by
electricity in the building sector that result in a net reduction in greenhouse gas emissions
and improvements to public health, consistent with the goal established under section
216H.02, subdivision 1.
new text end

new text begin (b) To the maximum reasonable extent, the implementation of beneficial electrification
in the building sector should prioritize investment and activity in low-income and
under-resourced communities, maintain or improve the quality of electricity service,
maximize customer savings, improve the integration of renewable and carbon-free resources,
and prioritize job creation.
new text end

Sec. 35.

new text begin [216B.248] PUBLIC UTILITY BENEFICIAL BUILDING
ELECTRIFICATION.
new text end

new text begin (a) A public utility may submit to the commission a plan to promote energy end uses
powered by electricity within the public utility's service area in residential and commercial
buildings. To the maximum reasonable extent, a plan must:
new text end

new text begin (1) maximize consumer savings over the lifetime of the investment;
new text end

new text begin (2) mitigate cost and avoid duplication with the utility's conservation improvement plan
under section 216B.241;
new text end

new text begin (3) maintain or enhance the reliability of electricity service;
new text end

new text begin (4) quantify the acres of land needed for new generation, transmission, and distribution
facilities to provide the additional electricity required under the plan;
new text end

new text begin (5) maintain or enhance public health and safety when temperatures fall below 25 degrees
below zero Fahrenheit;
new text end

new text begin (6) support the integration of renewable and carbon-free resources;
new text end

new text begin (7) encourage demand response and load shape management opportunities and the use
of energy storage that reduce overall system costs;
new text end

new text begin (8) prioritize electrification projects in economically disadvantaged communities;
new text end

new text begin (9) consider cost protections for low- and moderate-income customers;
new text end

new text begin (10) produce a net reduction in greenhouse gas emissions, based on the electricity
generation portfolio of the public utility proposing the plan, or based on the electricity
serving the end-use in the event that a public utility providing retail natural gas service
proposes the plan, either over the lifetime of the conversion or by 2050, whichever is sooner;
and
new text end

new text begin (11) consider local job impacts and give preference to proposals that maximize the
creation of construction employment opportunities for local workers.
new text end

new text begin (b) The commission must approve, reject, or modify the public utility's plan, consistent
with the public interest. Plans approved by the commission under this subdivision are eligible
for cost recovery under section 216B.1645.
new text end

Sec. 36.

new text begin [216B.491] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 216B.491 to 216B.4991, the terms
defined in this subdivision have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Ancillary agreement. new text end

new text begin "Ancillary agreement" means any bond, insurance policy,
letter of credit, reserve account, surety bond, interest rate lock or swap arrangement, liquidity
or credit support arrangement, or other financial arrangement entered into in connection
with energy transition bonds that is designed to promote the credit quality and marketability
of energy transition bonds or to mitigate the risk of an increase in interest rates.
new text end

new text begin Subd. 3. new text end

new text begin Assignee. new text end

new text begin "Assignee" means any person to which an interest in energy transition
property is sold, assigned, transferred, or conveyed, other than as security, and any successor
to or subsequent assignee of the person.
new text end

new text begin Subd. 4. new text end

new text begin Bondholder. new text end

new text begin "Bondholder" means any holder or owner of energy transition
bonds.
new text end

new text begin Subd. 5. new text end

new text begin Clean energy resource. new text end

new text begin "Clean energy resource" means:
new text end

new text begin (1) renewable energy, as defined in section 216B.2422, subdivision 1;
new text end

new text begin (2) an energy storage system; or
new text end

new text begin (3) energy efficiency and load management, as defined in section 216B.241, subdivision
1.
new text end

new text begin Subd. 6. new text end

new text begin Customer. new text end

new text begin "Customer" means a person who takes electric service from an
electric utility for consumption of electricity in Minnesota.
new text end

new text begin Subd. 7. new text end

new text begin Electric generating facility. new text end

new text begin "Electric generating facility" means a facility that
generates electricity, is owned in whole or in part by an electric utility, and is used to serve
customers in Minnesota. Electric generating facility includes any interconnected infrastructure
or facility used to transmit or deliver electricity to Minnesota customers.
new text end

new text begin Subd. 8. new text end

new text begin Electric utility. new text end

new text begin "Electric utility" means an electric utility providing electricity
to Minnesota customers, including the electric utility's successors or assignees.
new text end

new text begin Subd. 9. new text end

new text begin Energy storage system. new text end

new text begin "Energy storage system" means a commercially
available technology that uses mechanical, chemical, or thermal processes to:
new text end

new text begin (1) store energy and deliver the stored energy for use at a later time; or
new text end

new text begin (2) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time.
new text end

new text begin Subd. 10. new text end

new text begin Energy transition bonds. new text end

new text begin "Energy transition bonds" means low-cost corporate
securities, including but not limited to senior secured bonds, debentures, notes, certificates
of participation, certificates of beneficial interest, certificates of ownership, or other evidences
of indebtedness or ownership that have a scheduled maturity of no longer than 30 years and
a final legal maturity date that is not later than 32 years from the issue date, that are rated
AA or Aa2 or better by a major independent credit rating agency at the time of issuance,
and that are issued by an electric utility or an assignee under a financing order.
new text end

new text begin Subd. 11. new text end

new text begin Energy transition charge. new text end

new text begin "Energy transition charge" means a charge that:
new text end

new text begin (1) is imposed on all customer bills by an electric utility that is the subject of a financing
order, or the electric utility's successors or assignees;
new text end

new text begin (2) is separate from the utility's base rates; and
new text end

new text begin (3) provides a source of revenue solely to repay, finance, or refinance energy transition
costs.
new text end

new text begin Subd. 12. new text end

new text begin Energy transition costs. new text end

new text begin "Energy transition costs" means:
new text end

new text begin (1) as approved by the commission in a financing order issued under section 216B.492,
the pretax costs that the electric utility has incurred or will incur that are caused by, associated
with, or remain as a result of retiring or replacing electric generating facilities serving
Minnesota retail customers; and
new text end

new text begin (2) pretax costs that an electric utility has previously incurred related to the closure or
replacement of electric infrastructure or facilities occurring before the effective date of this
act.
new text end

new text begin Energy transition costs do not include any monetary penalty, fine, or forfeiture assessed
against an electric utility by a government agency or court under a federal or state
environmental statute, rule, or regulation.
new text end

new text begin Subd. 13. new text end

new text begin Energy transition property. new text end

new text begin "Energy transition property" means:
new text end

new text begin (1) all rights and interests of an electric utility or successor or assignee of an electric
utility under a financing order for the right to impose, bill, collect, receive, and obtain
periodic adjustments to energy transition charges authorized under a financing order issued
by the commission; and
new text end

new text begin (2) all revenue, collections, claims, rights to payments, payments, money, or proceeds
arising from the rights and interests specified in clause (1), regardless of whether any are
commingled with other revenue, collections, rights to payment, payments, money, or
proceeds.
new text end

new text begin Subd. 14. new text end

new text begin Energy transition revenue. new text end

new text begin "Energy transition revenue" means revenue,
receipts, collections, payments, money, claims, or other proceeds arising from energy
transition property.
new text end

new text begin Subd. 15. new text end

new text begin Financing costs. new text end

new text begin "Financing costs" means:
new text end

new text begin (1) principal, interest, and redemption premiums that are payable on energy transition
bonds;
new text end

new text begin (2) payments required under an ancillary agreement and amounts required to fund or
replenish a reserve account or other accounts established under the terms of any indenture,
ancillary agreement, or other financing document pertaining to the bonds;
new text end

new text begin (3) other demonstrable costs related to issuing, supporting, repaying, refunding, and
servicing the bonds, including but not limited to servicing fees, accounting and auditing
fees, trustee fees, legal fees, consulting fees, financial advisor fees, administrative fees,
placement and underwriting fees, capitalized interest, rating agency fees, stock exchange
listing and compliance fees, security registration fees, filing fees, information technology
programming costs, and any other demonstrable costs necessary to otherwise ensure and
guarantee the timely payment of the bonds or other amounts or charges payable in connection
with the bonds;
new text end

new text begin (4) taxes and license fees imposed on the revenue generated from collecting an energy
transition charge;
new text end

new text begin (5) state and local taxes, including franchise, sales and use, and other taxes or similar
charges, including but not limited to regulatory assessment fees, whether paid, payable, or
accrued; and
new text end

new text begin (6) costs incurred by the commission to hire and compensate additional temporary staff
needed to perform the commission's responsibilities under this section and, in accordance
with section 216B.494, to engage specialized counsel and expert consultants experienced
in securitized electric utility ratepayer-backed bond financing similar to energy transition
bonds.
new text end

new text begin Subd. 16. new text end

new text begin Financing order. new text end

new text begin "Financing order" means an order issued by the commission
under section 216B.492 that authorizes an applicant to (1) issue energy transition bonds in
one or more series, (2) impose, charge, and collect energy transition charges, and (3) create
energy transition property.
new text end

new text begin Subd. 17. new text end

new text begin Financing party. new text end

new text begin "Financing party" means a holder of energy transition bonds
and a trustee, collateral agent, a party under an ancillary agreement, or any other person
acting for the benefit of energy transition bondholders.
new text end

new text begin Subd. 18. new text end

new text begin Nonbypassable. new text end

new text begin "Nonbypassable" means that the payment of an energy
transition charge required to repay bonds and related costs may not be avoided by any retail
customer located within an electric utility service area.
new text end

new text begin Subd. 19. new text end

new text begin Pretax costs. new text end

new text begin "Pretax costs" means costs approved by the commission,
including but not limited to:
new text end

new text begin (1) unrecovered capitalized costs of retired or replaced electric generating facilities;
new text end

new text begin (2) costs to decommission and restore the site of an electric generating facility;
new text end

new text begin (3) other applicable capital and operating costs, accrued carrying charges, deferred
expenses, reductions for applicable insurance, and salvage proceeds; and
new text end

new text begin (4) costs to retire any existing indebtedness, fees, costs, and expenses to modify existing
debt agreements, or for waivers or consents related to existing debt agreements.
new text end

new text begin Subd. 20. new text end

new text begin Successor. new text end

new text begin "Successor" means a legal entity that succeeds by operation of law
to the rights and obligations of another legal entity as a result of bankruptcy, reorganization,
restructuring, other insolvency proceeding, merger, acquisition, consolidation, or sale or
transfer of assets.
new text end

Sec. 37.

new text begin [216B.492] FINANCING ORDER.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin (a) An electric utility that has received approval from the
commission to retire an electric generating facility owned by the utility prior to the full
depreciation of the electric generating facility's value may file an application with the
commission for the issuance of a financing order to enable the utility to recover energy
transition costs through the issuance of energy transition bonds under this section.
new text end

new text begin (b) The application must include all of the following information:
new text end

new text begin (1) a description of the electric generating facility to be retired;
new text end

new text begin (2) the undepreciated value remaining in the electric generating facility that is proposed
to be financed through the issuance of bonds under sections 216B.491 to 216B.499, and
the method used to calculate the amount;
new text end

new text begin (3) the estimated savings to electric utility customers if the financing order is issued as
requested in the application, calculated by comparing the costs to customers that are expected
to result from implementing the financing order and the estimated costs associated with
implementing traditional electric utility financing mechanisms with respect to the same
undepreciated balance, expressed in net present value terms;
new text end

new text begin (4) an estimated schedule for the electric generating facility's retirement;
new text end

new text begin (5) a description of the nonbypassable energy transition charge electric utility customers
would be required to pay in order to fully recover financing costs, and the method and
assumptions used to calculate the amount;
new text end

new text begin (6) a proposed methodology for allocating the revenue requirement for the energy
transition charge among the utility's customer classes;
new text end

new text begin (7) a description of a proposed adjustment mechanism to be implemented when necessary
to correct any overcollection or undercollection of energy transition charges, in order to
complete payment of scheduled principal and interest on energy transition bonds and other
financing costs in a timely fashion;
new text end

new text begin (8) a memorandum with supporting exhibits from a securities firm that is experienced
in the marketing of bonds and that is approved by the commissioner of management and
budget indicating the proposed issuance satisfies the current published AA or Aa2 or higher
rating or equivalent rating criteria of at least one nationally recognized securities rating
organization for issuances similar to the proposed energy transition bonds;
new text end

new text begin (9) an estimate of the timing of the issuance and the term of the energy transition bonds,
or series of bonds, provided that the scheduled final maturity for each bond issuance does
not exceed 30 years;
new text end

new text begin (10) identification of plans to sell, assign, transfer, or convey, other than as a security,
interest in energy transition property, including identification of an assignee, and
demonstration that the assignee is a financing entity wholly owned, directly or indirectly,
by the electric utility;
new text end

new text begin (11) identification of ancillary agreements that may be necessary or appropriate;
new text end

new text begin (12) one or more alternative financing scenarios in addition to the preferred scenario
contained in the application; and
new text end

new text begin (13) a workforce transition plan that includes estimates of:
new text end

new text begin (i) the number of workers currently employed at the electric generating facility to be
retired by the electric utility and, separately reported, by contractors, including workers that
directly deliver fuel to the electric generating facility;
new text end

new text begin (ii) the number of workers identified in item (i) who, as a result of the retirement of the
electric generating facility:
new text end

new text begin (A) are offered employment by the electric utility in the same job classification;
new text end

new text begin (B) are offered employment by the electric utility in a different job classification;
new text end

new text begin (C) are not offered employment by the electric utility;
new text end

new text begin (D) are offered early retirement by the electric utility; and
new text end

new text begin (E) retire as planned; and
new text end

new text begin (iii) if the electric utility plans to replace the retiring generating facility with a new
electric generating facility owned by the electric utility, the number of jobs at the new
generating facility outsourced to contractors or subcontractors; and
new text end

new text begin (14) a plan to replace the retired electric generating facilities with other electric generating
facilities owned by the utility or power purchase agreements that meet the requirements of
subdivision 3, clause (15), and a schedule reflecting that the replacement resources are
operational or available at the time the retiring electric generating facilities cease operation.
new text end

new text begin Subd. 2. new text end

new text begin Findings. new text end

new text begin After providing notice and holding a public hearing on an application
filed under subdivision 1, the commission may issue a financing order if the commission
finds that:
new text end

new text begin (1) the energy transition costs described in the application related to the retirement of
electric generation facilities are reasonable;
new text end

new text begin (2) the proposed issuance of energy transition bonds and the imposition and collection
of energy transition charges:
new text end

new text begin (i) are just and reasonable;
new text end

new text begin (ii) are consistent with the public interest;
new text end

new text begin (iii) constitute a prudent and reasonable mechanism to finance the energy transition costs
described in the application; and
new text end

new text begin (iv) provide tangible and quantifiable benefits to customers that are substantially greater
than the benefits that would have been achieved absent the issuance of energy transition
bonds; and
new text end

new text begin (3) the proposed structuring, marketing, and pricing of the energy transition bonds:
new text end

new text begin (i) significantly lower overall costs to customers or significantly mitigate rate impacts
to customers relative to traditional methods of financing; and
new text end

new text begin (ii) achieve the maximum net present value of customer savings, as determined by the
commission in a financing order, consistent with market conditions at the time of sale and
the terms of the financing order.
new text end

new text begin Subd. 3. new text end

new text begin Contents. new text end

new text begin (a) A financing order issued under this section must:
new text end

new text begin (1) determine the maximum amount of energy transition costs that may be financed from
proceeds of energy transition bonds issued pursuant to the financing order;
new text end

new text begin (2) describe the proposed customer billing mechanism for energy transition charges and
include a finding that the mechanism is just and reasonable;
new text end

new text begin (3) describe the financing costs that may be recovered through energy transition charges
and the period over which the costs may be recovered, which must end no earlier than the
date of final legal maturity of the energy transition bonds;
new text end

new text begin (4) describe the energy transition property that is created and that may be used to pay
and secure the payment of the energy transition bonds and financing costs authorized in the
financing order;
new text end

new text begin (5) authorize the electric utility to finance energy transition costs through the issuance
of one or more series of energy transition bonds. An electric utility is not required to secure
a separate financing order for each issuance of energy transition bonds or for each scheduled
phase of the retirement or replacement of electric generating facilities approved in the
financing order;
new text end

new text begin (6) include a formula-based mechanism that must be used to make expeditious periodic
adjustments to the energy transition charge authorized by the financing order that are
necessary to correct for any overcollection or undercollection, or to otherwise guarantee
the timely payment of energy transition bonds, financing costs, and other required amounts
and charges payable in connection with energy transition bonds;
new text end

new text begin (7) specify the degree of flexibility afforded to the electric utility in establishing the
terms and conditions of the energy transition bonds, including but not limited to repayment
schedules, expected interest rates, and other financing costs;
new text end

new text begin (8) specify that the energy transition bonds must be issued as soon as feasible following
issuance of the financing order;
new text end

new text begin (9) require the electric utility, at the same time as energy transition charges are initially
collected and independent of the schedule to close and decommission the electric generating
facility, to remove the electric generating facility to be retired from the utility's rate base
and commensurately reduce the utility's base rates;
new text end

new text begin (10) specify a future ratemaking process to reconcile any difference between the projected
pretax costs included in the amount financed by energy transition bonds and the final actual
pretax costs incurred by the electric utility to retire or replace the electric generating facility;
new text end

new text begin (11) specify information regarding bond issuance and repayments, financing costs,
energy transaction charges, energy transition property, and related matters that the electric
utility is required to provide to the commission on a schedule determined by the commission;
new text end

new text begin (12) allow and may require the creation of an electric utility's energy transition property
to be conditioned on, and occur simultaneously with, the sale or other transfer of the energy
transition property to an assignee and the pledge of the energy transition property to secure
the energy transition bonds;
new text end

new text begin (13) ensure that the structuring, marketing, and pricing of energy transition bonds result
in the lowest securitization bond charges and maximize net present value customer savings,
consistent with market conditions and the terms of the financing order;
new text end

new text begin (14) specify that the electric utility is prohibited from, after the electric generating
facilities subject to the finance order are removed from the electric utility's base rate:
new text end

new text begin (i) operating the electric generating facilities; or
new text end

new text begin (ii) selling the electric generating facilities to another entity to be operated as electric
generating facilities; and
new text end

new text begin (15) specify that the electric utility must send a payment from energy transition bond
proceeds equal to 15 percent of the net present value of electric utility cost savings estimated
by the commission under subdivision 2, clause (3), item (ii), to the commissioner of
employment and economic development for deposit in the energy worker transition account
established in section 216B.4991, and that the balance of the proceeds:
new text end

new text begin (i) must not be used to acquire, construct, finance, own, operate, or purchase energy
from an electric generating facility that is not powered by a clean energy resource; and
new text end

new text begin (ii) may be used to construct, finance, operate, own, or purchase energy from, an electric
generating facility that complies with item (i), under conditions determined by the
commission, including the capacity of generating assets, the estimated date the asset is
placed into service, and any other factors deemed relevant by the commission, taking into
account the electric utility's resource plan most recently approved by the commission under
section 216B.2422.
new text end

new text begin (b) A financing order issued under this section may:
new text end

new text begin (1) include conditions different from those requested in the application that the
commission determines are necessary to:
new text end

new text begin (i) promote the public interest; and
new text end

new text begin (ii) maximize the financial benefits or minimize the financial risks of the transaction to
customers and to directly impacted Minnesota workers and communities; and
new text end

new text begin (2) specify the selection of one or more underwriters of the energy transition bonds.
new text end

new text begin Subd. 4. new text end

new text begin Duration; irrevocability; subsequent order. new text end

new text begin (a) A financing order remains
in effect until the energy transition bonds issued under the financing order and all financing
costs related to the bonds have been paid in full.
new text end

new text begin (b) A financing order remains in effect and unabated notwithstanding the bankruptcy,
reorganization, or insolvency of the electric utility to which the financing order applies or
any affiliate, successor, or assignee of the electric utility.
new text end

new text begin (c) Subject to judicial review as provided for in section 216B.52, a financing order is
irrevocable and is not reviewable by future commissions. The commission may not reduce,
impair, postpone, or terminate energy transition charges approved in a financing order, or
impair energy transition property or the collection or recovery of energy transition revenue.
new text end

new text begin (d) Notwithstanding paragraph (c), the commission may, on the commission's own
motion or at the request of an electric utility or any other person, commence a proceeding
and issue a subsequent financing order that provides for refinancing, retiring, or refunding
energy transition bonds issued under the original financing order if:
new text end

new text begin (1) the commission makes all of the findings specified in subdivision 2 with respect to
the subsequent financing order; and
new text end

new text begin (2) the modification contained in the subsequent financing order does not in any way
impair the covenants and terms of the energy transition bonds to be refinanced, retired, or
refunded.
new text end

new text begin Subd. 5. new text end

new text begin Effect on commission jurisdiction. new text end

new text begin (a) Except as provided in paragraph (b),
the commission, in exercising the powers and carrying out the duties under this section, is
prohibited from:
new text end

new text begin (1) considering energy transition bonds issued under this section to be debt of the electric
utility other than for income tax purposes, unless it is necessary to consider the energy
transition bonds to be debt in order to achieve consistency with prevailing utility debt rating
methodologies;
new text end

new text begin (2) considering the energy transition charges paid under the financing order to be revenue
of the electric utility;
new text end

new text begin (3) considering the energy transition costs or financing costs specified in the financing
order to be the regulated costs or assets of the electric utility; or
new text end

new text begin (4) determining any prudent action taken by an electric utility that is consistent with the
financing order is unjust or unreasonable.
new text end

new text begin (b) Nothing in this subdivision:
new text end

new text begin (1) affects the authority of the commission to apply or modify any billing mechanism
designed to recover energy transition charges;
new text end

new text begin (2) prevents or precludes the commission from investigating an electric utility's
compliance with the terms and conditions of a financing order and requiring compliance
with the financing order; or
new text end

new text begin (3) prevents or precludes the commission from imposing regulatory sanctions against
an electric utility for failure to comply with the terms and conditions of a financing order
or the requirements of this section.
new text end

new text begin (c) The commission is prohibited from refusing to allow the recovery of any costs
associated with the retirement or replacement of electric generating facilities by an electric
utility solely because the electric utility has elected to finance those activities through a
financing mechanism other than energy transition bonds.
new text end

Sec. 38.

new text begin [216B.493] POST-ORDER COMMISSION DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Financing cost review. new text end

new text begin Within 120 days after the date energy transition
bonds are issued, an electric utility subject to a financing order must file with the commission
the actual initial and ongoing financing costs, the final structure and pricing of the energy
transition bonds, and the actual energy transition charge. The commission must review the
prudence of the electric utility's actions to determine whether the actual financing costs are
the lowest that could reasonably be achieved given the terms of the financing order and
market conditions prevailing at the time of the bond's issuance.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin If the commission determines that an electric utility's actions
under this section are not prudent or are inconsistent with the financing order, the commission
may apply any remedies available, provided that any remedy applied may not directly or
indirectly impair the security for the energy transition bonds.
new text end

Sec. 39.

new text begin [216B.494] USE OF OUTSIDE EXPERTS.
new text end

new text begin (a) In carrying out the duties under this section, the commission may:
new text end

new text begin (1) contract with outside consultants and counsel experienced in securitized electric
utility customer-backed bond financing similar to energy transition bonds; and
new text end

new text begin (2) hire and compensate additional temporary staff as needed.
new text end

new text begin Expenses incurred by the commission under this paragraph must be treated as financing
costs and included in the energy transition charge. The costs incurred under clause (1) are
not an obligation of the state and are assigned solely to the transaction.
new text end

new text begin (b) If a utility's application for a financing order is denied or withdrawn for any reason
and energy transition bonds are not issued, the commission's costs to retain expert consultants
under this subdivision must be paid by the applicant utility and are deemed by the commission
to be a prudent deferred expense eligible for recovery in the utility's future rates.
new text end

Sec. 40.

new text begin [216B.495] ENERGY TRANSITION CHARGE; BILLING TREATMENT.
new text end

new text begin (a) An electric utility that obtains a financing order and causes energy transition bonds
to be issued must:
new text end

new text begin (1) include on each customer's monthly electricity bill:
new text end

new text begin (i) a statement that a portion of the charges represents energy transition charges approved
in a financing order;
new text end

new text begin (ii) the amount and rate of the energy transition charge as a separate line item titled
"energy transition charge"; and
new text end

new text begin (iii) if energy transition property has been transferred to an assignee, a statement that
the assignee is the owner of the rights to energy transition charges and that the electric utility
or other entity, if applicable, is acting as a collection agent or servicer for the assignee; and
new text end

new text begin (2) file annually with the commission:
new text end

new text begin (i) a calculation of the impact that financing the retirement or replacement of electric
generating facilities has had on customer electricity rates, by customer class; and
new text end

new text begin (ii) evidence demonstrating that energy transition revenues are applied solely to the
repayment of energy transition bonds and other financing costs.
new text end

new text begin (b) Energy transition charges are nonbypassable and must be paid by all existing and
future customers receiving service from the electric utility or the utility's successors or
assignees under commission-approved rate schedules or special contracts.
new text end

new text begin (c) An electric utility's failure to comply with this section does not invalidate, impair,
or affect any financing order, energy transition property, energy transition charge, or energy
transition bonds, but does subject the electric utility to penalties under applicable commission
rules.
new text end

Sec. 41.

new text begin [216B.496] ENERGY TRANSITION PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin (a) Energy transition property is an existing present property
right or interest in a property right even though the imposition and collection of energy
transition charges depends on the electric utility's collecting energy transition charges and
on future electricity consumption. The property right or interest exists regardless of whether
the revenues or proceeds arising from the energy transition property have been billed, have
accrued, or have been collected.
new text end

new text begin (b) Energy transition property exists until all energy transition bonds issued under a
financing order are paid in full and all financing costs and other costs of the energy transition
bonds have been recovered in full.
new text end

new text begin (c) All or any portion of energy transition property described in a financing order issued
to an electric utility may be transferred, sold, conveyed, or assigned to a successor or assignee
that is wholly owned, directly or indirectly, by the electric utility and is created for the
limited purpose of acquiring, owning, or administering energy transition property or issuing
energy transition bonds as authorized by the financing order. All or any portion of energy
transition property may be pledged to secure energy transition bonds issued under a financing
order, amounts payable to financing parties and to counterparties under any ancillary
agreements, and other financing costs. Each transfer, sale, conveyance, assignment, or
pledge by an electric utility or an affiliate of an electric utility is a transaction in the ordinary
course of business.
new text end

new text begin (d) If an electric utility defaults on any required payment of charges arising from energy
transition property described in a financing order, a court, upon petition by an interested
party and without limiting any other remedies available to the petitioner, must order the
sequestration and payment of the revenues arising from the energy transition property to
the financing parties.
new text end

new text begin (e) The interest of a transferee, purchaser, acquirer, assignee, or pledgee in energy
transition property specified in a financing order issued to an electric utility, and in the
revenue and collections arising from that property, is not subject to setoff, counterclaim,
surcharge, or defense by the electric utility or any other person, or in connection with the
reorganization, bankruptcy, or other insolvency of the electric utility or any other entity.
new text end

new text begin (f) A successor to an electric utility, whether resulting from a reorganization, bankruptcy,
or other insolvency proceeding, merger or acquisition, sale, other business combination,
transfer by operation of law, electric utility restructuring, or otherwise, must perform and
satisfy all obligations of, and has the same duties and rights under, a financing order as the
electric utility to which the financing order applies, and must perform the duties and exercise
the rights in the same manner and to the same extent as the electric utility, including
collecting and paying to any person entitled to receive revenues, collections, payments, or
proceeds of energy transition property.
new text end

new text begin Subd. 2. new text end

new text begin Security interests in energy transition property. new text end

new text begin (a) The creation, perfection,
and enforcement of any security interest in energy transition property to secure the repayment
of the principal and interest on energy transition bonds, amounts payable under any ancillary
agreement, and other financing costs are governed solely by this section.
new text end

new text begin (b) A security interest in energy transition property is created, valid, and binding when:
new text end

new text begin (1) the financing order that describes the energy transition property is issued;
new text end

new text begin (2) a security agreement is executed and delivered; and
new text end

new text begin (3) value is received for the energy transition bonds.
new text end

new text begin (c) Once a security interest in energy transition property is created, the security interest
attaches without any physical delivery of collateral or any other act. The lien of the security
interest is valid, binding, and perfected against all parties having claims of any kind in tort,
contract, or otherwise against the person granting the security interest, regardless of whether
the parties have notice of the lien, upon the filing of a financing statement with the secretary
of state.
new text end

new text begin (d) The description or indication of energy transition property in a transfer or security
agreement and a financing statement is sufficient only if the description or indication refers
to this section and the financing order creating the energy transition property.
new text end

new text begin (e) A security interest in energy transition property is a continuously perfected security
interest and has priority over any other lien, created by operation of law or otherwise, which
may subsequently attach to the energy transition property unless the holder of the security
interest has agreed otherwise in writing.
new text end

new text begin (f) The priority of a security interest in energy transition property is not affected by the
commingling of energy transition property or energy transition revenue with other money.
An assignee, bondholder, or financing party has a perfected security interest in the amount
of all energy transition property or energy transition revenue that is pledged to pay energy
transition bonds, even if the energy transition property or energy transition revenue is
deposited in a cash or deposit account of the electric utility in which the energy transition
revenue is commingled with other money. Any other security interest that applies to the
other money does not apply to the energy transition revenue.
new text end

new text begin (g) Neither a subsequent commission order amending a financing order under section
216B.492, subdivision 4, nor application of an adjustment mechanism, authorized by a
financing order under section 216B.492, subdivision 3, affects the validity, perfection, or
priority of a security interest in or transfer of energy transition property.
new text end

new text begin (h) A valid and enforceable security interest in energy transition property is perfected
only when it has attached and when a financing order has been filed with the secretary of
state in accordance with procedures the secretary of state may establish. The financing order
must name the pledgor of the energy transition property as debtor and identify the property.
new text end

new text begin Subd. 3. new text end

new text begin Sales of energy transition property. new text end

new text begin (a) A sale, assignment, or transfer of
energy transition property is an absolute transfer and true sale of, and not a pledge of or
secured transaction relating to, the seller's right, title, and interest in, to, and under the energy
transition property if the documents governing the transaction expressly state that the
transaction is a sale or other absolute transfer. A transfer of an interest in energy transition
property may be created when:
new text end

new text begin (1) the financing order creating and describing the energy transition property is effective;
new text end

new text begin (2) the documents evidencing the transfer of the energy transition property are executed
and delivered to the assignee; and
new text end

new text begin (3) value is received.
new text end

new text begin (b) A transfer of an interest in energy transition property must be filed with the secretary
of state against all third persons and perfected under sections 336.9-301 to 336.9-342,
including any judicial lien or other lien creditors or any claims of the seller or creditors of
the seller, other than creditors holding a prior security interest, ownership interest, or
assignment in the energy transition property previously perfected under this subdivision or
subdivision 2.
new text end

new text begin (c) The characterization of a sale, assignment, or transfer as an absolute transfer and
true sale, and the corresponding characterization of the property interest of the assignee is
not affected or impaired by:
new text end

new text begin (1) commingling of energy transition revenue with other money;
new text end

new text begin (2) the retention by the seller of:
new text end

new text begin (i) a partial or residual interest, including an equity interest, in the energy transition
property, whether direct or indirect, or whether subordinate or otherwise; or
new text end

new text begin (ii) the right to recover costs associated with taxes, franchise fees, or license fees imposed
on the collection of energy transition revenue;
new text end

new text begin (3) any recourse that the purchaser may have against the seller;
new text end

new text begin (4) any indemnification rights, obligations, or repurchase rights made or provided by
the seller;
new text end

new text begin (5) an obligation of the seller to collect energy transition revenues on behalf of an
assignee;
new text end

new text begin (6) the treatment of the sale, assignment, or transfer for tax, financial reporting, or other
purposes;
new text end

new text begin (7) any subsequent financing order amending a financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (8) any application of an adjustment mechanism under section 216B.492, subdivision
3, paragraph (a), clause (6).
new text end

Sec. 42.

new text begin [216B.497] ENERGY TRANSITION BONDS.
new text end

new text begin (a) Banks, trust companies, savings and loan associations, insurance companies, executors,
administrators, guardians, trustees, and other fiduciaries may legally invest any money
within the individual's or entity's control in energy transition bonds.
new text end

new text begin (b) Energy transition bonds issued under a financing order are not debt of or a pledge
of the faith and credit or taxing power of the state, any agency of the state, or any political
subdivision. Holders of energy transition bonds may not have taxes levied by the state or a
political subdivision in order to pay the principal or interest on energy transition bonds. The
issuance of energy transition bonds does not directly, indirectly, or contingently obligate
the state or a political subdivision to levy any tax or make any appropriation to pay principal
or interest on the energy transition bonds.
new text end

new text begin (c) The state pledges to and agrees with holders of energy transition bonds, any assignee,
and any financing parties that the state must not:
new text end

new text begin (1) take or permit any action that impairs the value of energy transition property; or
new text end

new text begin (2) reduce, alter, or impair energy transition charges that are imposed, collected, and
remitted for the benefit of holders of energy transition bonds, any assignee, and any financing
parties, until any principal, interest, and redemption premium payable on energy transition
bonds, all financing costs, and all amounts to be paid to an assignee or financing party under
an ancillary agreement are paid in full.
new text end

new text begin (d) A person who issues energy transition bonds may include the pledge specified in
paragraph (c) in the energy transition bonds, ancillary agreements, and documentation
related to the issuance and marketing of the energy transition bonds.
new text end

Sec. 43.

new text begin [216B.498] ASSIGNEE OF FINANCING PARTY NOT SUBJECT TO
COMMISSION REGULATION.
new text end

new text begin An assignee or financing party that is not already regulated by the commission does not
become subject to commission regulation solely as a result of engaging in any transaction
authorized by or described in sections 216B.491 to 216B.499.
new text end

Sec. 44.

new text begin [216B.499] EFFECT ON OTHER LAWS.
new text end

new text begin (a) If any provision of sections 216B.491 to 216B.499 conflicts with any other law
regarding the attachment, assignment, perfection, effect of perfection, or priority of any
security interest in or transfer of energy transition property, sections 216B.491 to 216B.499
govern.
new text end

new text begin (b) Nothing in this subdivision precludes an electric utility for which the commission
has initially issued a financing order from applying to the commission for:
new text end

new text begin (1) a subsequent financing order amending the financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (2) approval to issue energy transition bonds to refund all or a portion of an outstanding
series of energy transition bonds.
new text end

Sec. 45.

new text begin [216B.4991] ENERGY WORKER TRANSITION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin The energy worker transition account is established
as a separate account in the special revenue fund in the state treasury. The commissioner
of employment and economic development must credit to the account appropriations and
transfers to the account, and payments of proceeds from the sale of bonds realized by an
electric utility operating under a financing order issued by the commission under section
216B.492. Earnings, including but not limited to interest, dividends, and any other earnings
arising from assets of the account, must be credited to the account. Money remaining in the
account at the end of a fiscal year does not cancel to the general fund but remains in the
account until expended. The commissioner of employment and economic development must
manage the account.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin (a) Money in the account may be used only to provide assistance
to workers whose employment was terminated by an electric utility that has ceased operation
and issued bonds under a financing order issued by the Public Utilities Commission under
section 216B.492. The types of assistance that may be provided from the account are:
new text end

new text begin (1) transition, support, and training services listed under section 116L.17, subdivision
4, clauses (1) to (5);
new text end

new text begin (2) employment and training services, as defined in section 116L.19, subdivision 4;
new text end

new text begin (3) income maintenance and support services, as defined in section 116L.19, subdivision
5;
new text end

new text begin (4) assistance to workers in starting a business, as described in section 116L.17,
subdivision 11; and
new text end

new text begin (5) extension of unemployment benefits.
new text end

new text begin (b) No more than five percent of the money in the account may be used to pay the
department's costs to administer the account.
new text end

new text begin (c) The commissioner may make grants to a state or local government unit, nonprofit
organization, community action agency, business organization or association, or labor
organization to provide the services allowed under this subdivision. No more than ten percent
of the money allocated to a grantee may be used to pay administrative costs.
new text end

Sec. 46.

Minnesota Statutes 2020, section 216E.03, subdivision 10, is amended to read:

Subd. 10.

Final decision.

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

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

new text begin (c) The commission shall require as a condition of permit issuance that the recipient of
a site permit to construct a large electric power generating plant and all of the permit
recipient's construction contractors and subcontractors on the project pay no less than the
prevailing wage rate, as defined in section 177.42. The commission shall also require as a
condition of modifying a site permit for a large electric power generating plant repowering
project, as defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of
the site permit and all of the permit recipient's construction contractors and subcontractors
on the repowering project pay no less than the prevailing wage rate, as defined in section
177.42.
new text end

new text begin (d) The commission may require as a condition of permit issuance that the recipient of
a site permit to construct a large electric power generating plant and all of the permit
recipient's construction contractors and subcontractors on the project participate in
apprenticeship programs that are registered with the Department of Labor and Industry or
the Office of Apprenticeship of the United States Department of Labor for the relevant work
on the project. The commission may also require as a condition of modifying a site permit
for a large electric power generating plant repowering project, as defined in section 216B.243,
subdivision 8, paragraph (b), that the recipient of the site permit and all of the permit
recipient's construction contractors and subcontractors on the repowering project participate
in apprenticeship programs that are registered with the Department of Labor and Industry
or the Office of Apprenticeship of the United States Department of Labor for the relevant
work on the project. When deciding whether to require participation in apprenticeship
programs that are registered with the Department of Labor and Industry or the Office of
Apprenticeship of the United States Department of Labor under this paragraph, the
commission shall consider relevant factors, including the direct and indirect economic
impact as well as the quality, efficiency, and safety of construction on the project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 47.

Minnesota Statutes 2020, section 216F.04, is amended to read:

216F.04 SITE PERMIT.

(a) No person may construct an LWECS without a site permit issued by the Public
Utilities Commission.

(b) Any person seeking to construct an LWECS shall submit an application to the
commission for a site permit in accordance with this chapter and any rules adopted by the
commission. The permitted site need not be contiguous land.

(c) The commission shall make a final decision on an application for a site permit for
an LWECS within 180 days after acceptance of a complete application by the commission.
The commission may extend this deadline for cause.

(d) The commission may place conditions in a permit and may deny, modify, suspend,
or revoke a permit.

new text begin (e) The commission shall require as a condition of permit issuance that the recipient of
a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts and
all of the permit recipient's construction contractors and subcontractors on the project pay
no less than the prevailing wage rate, as defined in section 177.42. The commission shall
also require as a condition of modifying a site permit for an LWECS repowering project as
defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of the site permit
and all of the permit recipient's construction contractors and subcontractors on the repowering
project pay no less than the prevailing wage rate, as defined in section 177.42.
new text end

new text begin (f) The commission may require as a condition of permit issuance that the recipient of
a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts and
all of the permit recipient's construction contractors and subcontractors on the project
participate in apprenticeship programs that are registered with the Department of Labor and
Industry or the Office of Apprenticeship of the United States Department of Labor for the
relevant work on the project. The commission may also require as a condition of modifying
a site permit for an LWECS repowering project as defined in section 216B.243, subdivision
8, paragraph (b), that the recipient of the site permit and all of the permit recipient's
construction contractors and subcontractors on the repowering project participate in
apprenticeship programs that are registered with the Department of Labor and Industry or
the Office of Apprenticeship of the United States Department of Labor for the relevant work
on the project. When deciding whether to require participation in apprenticeship programs
that are registered with the Department of Labor and Industry or the Office of Apprenticeship
of the United States Department of Labor under this paragraph, the commission shall consider
relevant factors, including the direct and indirect economic impact as well as the quality,
efficiency, and safety of construction on the project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 48. new text begin PUBLIC UTILITIES COMMISSION; EVALUATION OF THE ROLE OF
NATURAL GAS UTILITIES IN ACHIEVING STATE GREENHOUSE GAS
REDUCTION GOALS.
new text end

new text begin By August 1, 2021, the Public Utilities Commission must initiate a proceeding to evaluate
changes to natural gas utility regulatory and policy structures needed to support the state's
greenhouse gas emissions reductions goals, including those established in Minnesota Statutes,
section 216H.02, subdivision 1, and to achieve net zero greenhouse gas emissions by 2050,
as determined by the Intergovernmental Panel on Climate Change.
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. 49. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Construction materials; environmental impact study. new text end

new text begin (a) $100,000
in fiscal year 2022 is appropriated from the general fund to the commissioner of
administration to complete the study required under this section. This is a onetime
appropriation.
new text end

new text begin (b) The commissioner of administration must contract with the Center for Sustainable
Building Research at the University of Minnesota to examine the feasibility, economic costs,
and environmental benefits of requiring a bid that proposes to use or construct one or more
eligible materials in the construction or major renovation of a new state building to include
a supply-chain specific type III environmental product declaration for each of those materials,
which information must be taken into consideration in making a contract award. In conducting
the study, the Center for Sustainable Building Research must examine and evaluate similar
programs adopted in other states.
new text end

new text begin (c) By February 1, 2022, the commissioner of administration must submit the findings
and recommendations of the study to the chairs and ranking minority members of the senate
and house of representatives committees with primary jurisdiction over environmental
policy.
new text end

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

new text begin (1) "eligible materials" means any of the following materials that function as part of a
structural system or structural assembly:
new text end

new text begin (i) concrete, including structural cast in place, shortcrete, and precast;
new text end

new text begin (ii) unit masonry;
new text end

new text begin (iii) metal of any type; and
new text end

new text begin (iv) wood of any type, including but not limited to wood composites and wood-laminated
products;
new text end

new text begin (2) "engineered wood" means a product manufactured by banding or fixing strands,
particles, fiber, or veneers of boards of wood by means of adhesives, combined with heat
and pressure, or other methods to form composite material;
new text end

new text begin (3) "state building" means a building owned by the state of Minnesota;
new text end

new text begin (4) "structural" means a building material or component that supports gravity loads of
building floors, roofs, or both, and is the primary lateral system resisting wind and earthquake
loads, including but not limited to shear walls, braced or moment frames, foundations,
below-grade walls, and floors;
new text end

new text begin (5) "supply-chain specific" means an environmental product declaration that includes
supply-chain specific data for production processes that contribute to 80 percent or more
of a product's lifecycle global warming potential. For engineered wood products,
"supply-chain specific" also means an environmental product declaration that reports:
new text end

new text begin (i) any chain of custody certification; and
new text end

new text begin (ii) the percentage of wood, by volume, used in the product that is sourced:
new text end

new text begin (A) by state or province and country;
new text end

new text begin (B) by type of owner, whether federal, state, private, or other; and
new text end

new text begin (C) with forest management certification; and
new text end

new text begin (6) "type III environmental product declaration" means a document verified and registered
by a third party that contains a life-cycle assessment of the environmental impacts, including
but not limited to the use of water, land, and energy resources in the manufacturing process,
of a specific product constructed or manufactured by a specific firm and that meets the
applicable standards developed and maintained for such assessments by the International
Organization for Standardization (ISO).
new text end

new text begin Subd. 2. new text end

new text begin Natural gas innovation plan; implementation. new text end

new text begin (a) $189,000 in fiscal year
2022 and $189,000 in fiscal year 2023 are appropriated from the general fund to the
commissioner of commerce for activities associated with a utility's implementation of a
natural gas innovation plan under Minnesota Statutes, section 216B.2427.
new text end

new text begin (b) $112,000 in fiscal year 2022 and $112,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission for the activities associated with a
utility's implementation of a natural gas innovation plan under Minnesota Statutes, section
216B.2427.
new text end

new text begin Subd. 3. new text end

new text begin Energy Transition Office. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $450,000 in fiscal year 2022 and $450,000 in fiscal
year 2023 are appropriated from the renewable development account established in Minnesota
Statutes, section 116C.779, subdivision 1, to the commissioner of employment and economic
development to operate the Energy Transition Office established under Minnesota Statutes,
section 116J.5491.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Innovation Finance Authority. new text end

new text begin Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $10,000,000 in fiscal year 2022 is
appropriated from the renewable development account established under Minnesota Statutes,
section 116C.779, subdivision 1, to the commissioner of commerce to transfer to the
Minnesota Innovation Finance Authority established under Minnesota Statutes, section
216C.441. This is a onetime appropriation. Of this amount, the Minnesota Innovation Finance
Authority may obligate up to $50,000 for start-up expenses, including but not limited to
expenses incurred prior to incorporation.
new text end

new text begin Subd. 5. new text end

new text begin Beneficial electrification. new text end

new text begin (a) $30,000 in fiscal year 2022 and $30,000 in fiscal
year 2023 are appropriated from the general fund to the commissioner of commerce to
participate in Public Utilities Commission proceedings regarding utility beneficial
electrification plans, as described in section 35.
new text end

new text begin (b) $56,000 in fiscal year 2022 and $28,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission for activities associated with utility
beneficial electrification plans, as described in section 35.
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. 50. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 216B.1691, subdivision 2, new text end new text begin is repealed.
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

ARTICLE 3

CLIMATE CHANGE

Section 1.

new text begin [16B.312] CONSTRUCTION MATERIALS; ENVIRONMENTAL
ANALYSIS.
new text end

new text begin Subdivision 1. new text end

new text begin Title. new text end

new text begin This act may be known and cited as the "Buy Clean and Buy Fair
Minnesota Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (a) "Carbon steel" means steel in which the main alloying element is carbon and whose
properties are chiefly dependent on the percentage of carbon present.
new text end

new text begin (b) "Department" means the Department of Administration.
new text end

new text begin (c) "Eligible material category" means:
new text end

new text begin (1) carbon steel rebar;
new text end

new text begin (2) structural steel;
new text end

new text begin (3) photovoltaic devices, as defined in section 216C.06, subdivision 16; or
new text end

new text begin (4) an energy storage system, as defined in section 216B.2421, subdivision 1, paragraph
(f), that is installed as part of an eligible project.
new text end

new text begin (d) "Eligible project" means:
new text end

new text begin (1) new construction of a state building larger than 50,000 gross square feet of occupied
or conditioned space; or
new text end

new text begin (2) renovation of more than 50,000 gross square feet of occupied or conditioned space
in a state building whose renovation cost exceeds 50 percent of the building's assessed value.
new text end

new text begin (e) "Environmental product declaration" means a supply chain specific type III
environmental product declaration that:
new text end

new text begin (1) contains a lifecycle assessment of the environmental impacts of manufacturing a
specific product by a specific firm, including the impacts of extracting and producing the
raw materials and components that compose the product;
new text end

new text begin (2) is verified and registered by a third party; and
new text end

new text begin (3) meets the applicable standards developed and maintained for such assessments by
the International Organization for Standardization (ISO).
new text end

new text begin (f) "Global warming potential" has the meaning given in section 216H.10, subdivision
5.
new text end

new text begin (g) "Greenhouse gas" has the meaning given to statewide greenhouse gas emissions in
section 216H.01, subdivision 2.
new text end

new text begin (h) "Lifecycle" means an analysis that includes the environmental impacts of all stages
of a specific product's production, from mining and processing the product's raw materials
to the process of manufacturing the product.
new text end

new text begin (i) "Rebar" means a steel reinforcing bar or rod encased in concrete.
new text end

new text begin (j) "State building" means a building whose construction or renovation is funded wholly
or partially from the proceeds of bonds issued by the state of Minnesota.
new text end

new text begin (k) "Structural steel" means steel that is classified by the shapes of its cross-sections,
such as I, T, and C shapes.
new text end

new text begin (l) "Supply chain specific" means an environmental product declaration that includes
specific data for the production processes of the materials and components composing a
product that contribute at least 80 percent of the product's lifecycle global warming potential,
as defined in International Organization for Standardization standard 21930.
new text end

new text begin Subd. 3. new text end

new text begin Standard; maximum global warming potential. new text end

new text begin (a) No later than September
1, 2022, the commissioner shall establish and publish a maximum acceptable global warming
potential for each eligible material used in an eligible project, in accordance with the
following requirements:
new text end

new text begin (1) the commissioner shall, after considering nationally or internationally recognized
databases of environmental product declarations for an eligible material category, establish
the maximum acceptable global warming potential at the industry average global warming
potential for that eligible material category; and
new text end

new text begin (2) the commissioner may set different maximums for different specific products within
each eligible material category.
new text end

new text begin The global warming potential shall be provided in a manner that is consistent with criteria
in an environmental product declaration.
new text end

new text begin (b) No later than September 1, 2025, and every three years thereafter, the commissioner
shall review the maximum acceptable global warming potential for each eligible materials
category and for specific products within an eligible materials category established under
paragraph (a). The commissioner may adjust those values downward for any eligible material
category or product to reflect industry improvements if the commissioner, based on the
process described in paragraph (a), clause (1), determines that the industry average has
declined. The commissioner must not adjust the maximum acceptable global warming
potential upward for any eligible material category or product.
new text end

new text begin Subd. 4. new text end

new text begin Bidding process. new text end

new text begin (a) Except as provided in paragraph (c), the department shall
require in a specification for bids for an eligible project that the global warming potential
reported by a bidder in the environmental product declaration for any eligible material
category must not exceed the maximum acceptable global warming potential for that eligible
material category or product established under subdivision 2. The department may require
in a specification for bids for an eligible project a global warming potential for any eligible
material that is lower than the maximum acceptable global warming potential for that
material established under subdivision 2.
new text end

new text begin (b) Except as provided in paragraph (c), a successful bidder for a contract must not use
or install any eligible material on the project until the commissioner has provided notice to
the bidder in writing that the commissioner has determined that a supply chain-specific
environmental product declaration submitted by the bidder for that material meets the
requirements of this subdivision.
new text end

new text begin (c) A bidder may be exempted from the requirements of paragraphs (a) and (b) if the
commissioner determines that complying with the provisions of paragraph (a) would create
financial hardship for the bidder. The commissioner shall make a determination of hardship
if the commissioner finds that:
new text end

new text begin (1) the bidder has made a good faith effort to obtain the data required in an environmental
product declaration; and
new text end

new text begin (2) the bidder has provided all the data obtained in pursuit of an environmental product
declaration to the commissioner; and
new text end

new text begin (3) based on a detailed estimate of the costs of obtaining an environmental product
declaration, and taking into consideration the bidder's annual gross revenues, complying
with paragraph (a) would cause the bidder financial hardship; or
new text end

new text begin (4) complying with paragraph (a) would disrupt the bidder's ability to perform contractual
obligations.
new text end

new text begin Subd. 5. new text end

new text begin Pilot program. new text end

new text begin (a) No later than July 1, 2022, the department must establish
a pilot program that seeks to obtain from vendors an estimate of the lifecycle greenhouse
gas emissions, including greenhouse gas emissions from mining raw materials, of products
selected by the department from among the products the department procures. The pilot
program must encourage but must not require a product vendor to submit the following data
for each selected product that represents at least 90 percent of the total cost of the materials
or components used in the selected product:
new text end

new text begin (1) the quantity of the product purchased by the department;
new text end

new text begin (2) a current environmental product declaration for the product;
new text end

new text begin (3) the name and location of the product's manufacturer;
new text end

new text begin (4) a copy of the product vendor's Supplier Code of Conduct, if any;
new text end

new text begin (5) names and locations of the product's actual production facilities; and
new text end

new text begin (6) an assessment of employee working conditions at the product's actual production
facilities.
new text end

new text begin (b) The department must construct a publicly accessible database posted on the
department's website containing the data reported under this subdivision. The data must be
reported in a manner that precludes, directly, or in combination with other publicly available
data, the identification of the product manufacturer.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 216H.02, subdivision 1, is amended to read:

Subdivision 1.

Greenhouse gas emissions-reduction goal.

new text begin (a) new text end It is the goal of the state
to reduce statewide greenhouse gas emissions across all sectors producing those emissions
deleted text begin to a level at least 15 percent below 2005 levels by 2015, to a level at least 30 percent below
2005 levels by 2025, and to a level at least 80 percent below 2005 levels by 2050. deleted text end new text begin by at
least the following amounts, compared with the level of emissions in 2005:
new text end

new text begin (1) 15 percent by 2015;
new text end

new text begin (2) 30 percent by 2025;
new text end

new text begin (3) 45 percent by 2030; and
new text end

new text begin (4) net zero by 2050.
new text end

new text begin (b) new text end The deleted text begin levels deleted text end new text begin targets new text end shall be reviewed deleted text begin based on the climate change action plan study. deleted text end new text begin
annually by the commissioner of the Pollution Control Agency, taking into account the
latest scientific research on the impacts of climate change and strategies to reduce greenhouse
gas emissions published by the Intergovernmental Panel on Climate Change. The
commissioner shall forward any recommended changes to the targets to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over climate change and environmental policy.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [239.7912] FUTURE FUELS ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Carbon dioxide equivalent" means the number of metric tons of carbon dioxide
emissions that have the same global warming potential as one metric ton of another
greenhouse gas.
new text end

new text begin (c) "Carbon intensity" means the quantity of life cycle greenhouse gas emissions
associated with a unit of a specific transportation fuel, expressed in grams of carbon dioxide
equivalent per megajoule of transportation fuel, as calculated by the most recent version of
Argonne National Laboratory's GREET model and adapted to Minnesota by the department
through rulemaking or administrative process.
new text end

new text begin (d) "Clean fuel" means a transportation fuel that has a carbon intensity level that is below
the clean fuels carbon intensity standard in a given year.
new text end

new text begin (e) "Credit" means a unit of measure equal to one metric ton of carbon dioxide equivalent,
and that serves as a quantitative measure of the degree to which a fuel provider's
transportation fuel volume is lower than the carbon intensity embodied in an applicable
clean fuels standard.
new text end

new text begin (f) "Credit generator" means an entity involved in supplying a clean fuel.
new text end

new text begin (g) "Deficit" means a unit of measure (1) equal to one metric ton of carbon dioxide
equivalent, and (2) that serves as a quantitative measure of the degree to which a fuel
provider's volume of transportation fuel is greater than the carbon intensity embodied in an
applicable future fuels standard.
new text end

new text begin (h) "Deficit generator" means a fuel provider who generates deficits and who first
produces or imports a transportation fuel for use in Minnesota.
new text end

new text begin (i) "Fuel life cycle" means the total aggregate greenhouse gas emissions resulting from
all stages of a fuel pathway for a specific transportation fuel.
new text end

new text begin (j) "Fuel pathway" means a detailed description of all stages of a transportation fuel's
production and use, including extraction, processing, transportation, distribution, and
combustion or use by an end-user.
new text end

new text begin (k) "Fuel provider" means an entity that supplies a transportation fuel for use in
Minnesota.
new text end

new text begin (l) "Global warming potential" or "GWP" means a quantitative measure of a greenhouse
gas emission's potential to contribute to global warming over a 100-year period, expressed
in terms of the equivalent carbon dioxide emission needed to produce the same 100-year
warming effect.
new text end

new text begin (m) "Greenhouse gas" means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride.
new text end

new text begin (n) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
new text end

new text begin (o) "Relevant petroleum-only portion of transportation fuels" means the component of
gasoline or diesel fuel prior to blending with ethanol, biodiesel, or other biofuel.
new text end

new text begin (p) "Technology provider" means a manufacturer of an end-use consumer technology
involved in supplying clean fuels.
new text end

new text begin (q) "Transportation fuel" means electricity or a liquid or gaseous fuel that (1) is blended,
sold, supplied, offered for sale, or used to propel a motor vehicle, including but not limited
to train, light rail vehicle, ship, aircraft, forklift, or other road or nonroad vehicle in
Minnesota, and (2) meets applicable standards, specifications, and testing requirements
under this chapter. Transportation fuel includes but is not limited to electricity used as fuel
in a motor vehicle, gasoline, diesel, ethanol, biodiesel, renewable diesel, propane, renewable
propane, natural gas, renewable natural gas, hydrogen, aviation fuel, and biomethane.
new text end

new text begin Subd. 2. new text end

new text begin Clean fuels standard; establishment by rule; goals. new text end

new text begin (a) No later than ..., the
commissioner must begin the process to adopt rules under chapter 14 that implement a clean
fuels standard and other provisions of this section. The timing requirement to publish a
notice of intent to adopt rules or notice of hearing under section 14.125 does not apply to
rules adopted under this subdivision.
new text end

new text begin (b) The commissioner must consult with the commissioners of transportation, agriculture,
and the Pollution Control Agency when developing the rules under this subdivision. The
commissioner may gather input from stakeholders through various means, including a task
force, working groups, and public workshops. The commissioner, collaborating with the
Department of Transportation, may consult with stakeholders, including but not limited to
fuel providers; consumers; rural, urban, and Tribal communities; agriculture; environmental
and environmental justice organizations; technology providers; and other businesses.
new text end

new text begin (c) When developing the rule, the commissioner must endeavor to make available to
Minnesota a fuel-neutral clean fuels portfolio that:
new text end

new text begin (1) creates broad rural and urban economic development;
new text end

new text begin (2) provides benefits for communities, consumers, clean fuel providers, technology
providers, and feedstock suppliers;
new text end

new text begin (3) increases energy security from expanded reliance on domestically produced fuels;
new text end

new text begin (4) supports equitable transportation electrification that benefits all communities and is
powered primarily with low-carbon and carbon-free electricity;
new text end

new text begin (5) improves air quality and public health, targeting communities that bear a
disproportionate health burden from transportation pollution;
new text end

new text begin (6) supports state solid waste recycling goals by facilitating credit generation from
renewable natural gas produced from organic waste;
new text end

new text begin (7) aims to support, through credit generation or other financial means, voluntary
farmer-led efforts to adopt agricultural practices that benefit soil health and water quality
while contributing to lower life cycle greenhouse gas emissions from clean fuel feedstocks;
new text end

new text begin (8) maximizes benefits to the environment and natural resources, develops safeguards
and incentives to protect natural lands, and enhances environmental integrity, including
biodiversity; and
new text end

new text begin (9) is the result of extensive outreach efforts to stakeholders and communities that bear
a disproportionate health burden from pollution from transportation or from the production
and transportation of transportation fuels.
new text end

new text begin Subd. 3. new text end

new text begin Clean fuels standard; establishment. new text end

new text begin (a) A clean fuels standard is established
that requires the aggregate carbon intensity of transportation fuel supplied to Minnesota be
reduced to at least 20 percent below the 2018 baseline level by the end of 2035. In
consultation with the Pollution Control Agency, Department of Agriculture, and Department
of Transportation, the commissioner must establish by rule a schedule of annual standards
that steadily decreases the carbon intensity of transportation fuels.
new text end

new text begin (b) When determining the schedule of annual standards, the commissioner must consider
the cost of compliance, the technologies available to a provider to achieve the standard, the
need to maintain fuel quality and availability, and the policy goals under subdivision 2,
paragraph (c).
new text end

new text begin (c) Nothing in this chapter precludes the department from adopting rules that allow the
generation of credits associated with electric or alternative transportation fuels or
infrastructure that existed prior to the effective date of this section or the start date of program
requirements.
new text end

new text begin Subd. 4. new text end

new text begin Clean fuels standard; baseline calculation. new text end

new text begin The department must calculate
the baseline carbon intensity of the relevant petroleum-only portion of transportation fuels
for the 2018 calendar year after reviewing and considering the best available applicable
scientific data and calculations.
new text end

new text begin Subd. 5. new text end

new text begin Clean fuels standard; compliance. new text end

new text begin A deficit generator may comply with this
section by:
new text end

new text begin (1) producing or importing transportation fuels whose carbon intensity is at or below
the level of the applicable year's standard; or
new text end

new text begin (2) purchasing sufficient credits to offset any aggregate deficits resulting from the carbon
intensity of the deficit generator's transportation fuels exceeding the applicable year's
standard.
new text end

new text begin Subd. 6. new text end

new text begin Clean fuel credits. new text end

new text begin The commissioner must establish by rule a program for
tradeable credits and deficits. The commissioner must adopt rules to fairly and reasonably
operate a credit market that may include:
new text end

new text begin (1) a market mechanism that allows credits to be traded or banked for future use;
new text end

new text begin (2) transaction fees associated with the credit market; and
new text end

new text begin (3) procedures to verify the validity of credits and deficits generated by a fuel provider
under this section.
new text end

new text begin Subd. 7. new text end

new text begin Fuel pathway and carbon intensity determination. new text end

new text begin The commissioner must
establish a process to determine the carbon intensity of transportation fuels, including but
not limited to the review by the commissioner of a fuel pathway submitted by a fuel provider.
Fuel pathways must be calculated using the most recent version of the Argonne National
Laboratory's GREET model adapted to Minnesota, as determined by the commissioner.
The fuel pathway determination process must (1) be consistent for all fuel types, (2) be
science- and engineering-based, and (3) reflect differences in vehicle fuel efficiency and
drive trains. The commissioner must consult with the Department of Agriculture, Department
of Transportation, and Pollution Control Agency to determine fuel pathways, and may
coordinate with third-party entities or other states to review and approve pathways to reduce
the administrative cost.
new text end

new text begin Subd. 8. new text end

new text begin Fuel provider reports. new text end

new text begin The commissioner must collaborate with the Department
of Transportation, Department of Agriculture, Pollution Control Agency, and the Public
Utilities Commission to develop a process, including forms developed by the commissioner,
for credit and deficit generators to submit required compliance reporting.
new text end

new text begin Subd. 9. new text end

new text begin Enforcement. new text end

new text begin The commissioner of commerce may enforce this section under
section 45.027.
new text end

new text begin Subd. 10. new text end

new text begin Report to legislature. new text end

new text begin No later than 48 months after the effective date of a
rule implementing a clean fuels standard, the commissioner must submit a report detailing
program implementation to the chairs and ranking minority members of the senate and
house committees with jurisdiction over transportation and climate change. The commissioner
must make summary information on the program available to the public.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin INTEGRATING GREENHOUSE GAS REDUCTIONS INTO STATE
ACTIVITIES; PLAN.
new text end

new text begin By February 15, 2022, the Climate Change Subcabinet established in Executive Order
19-37 must provide to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over climate and energy a preliminary report
on a Climate Transition Plan for incorporating the statewide greenhouse gas emission
reduction targets under Minnesota Statutes, section 216H.02, subdivision 1, into all aspects
of state agency activities, including but not limited to planning, awarding grants, purchasing,
regulating, funding, and permitting. The preliminary report must identify statutory changes
required for this purpose. The Pollution Control Agency must collaborate with the
Department of Administration to estimate greenhouse gas emissions from governmental
activities. The final Climate Transition Plan is due August 1, 2022, and must identify any
additional resources required to implement the plan's recommendations.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin SMALL-AREA CLIMATE MODEL PROJECTIONS FOR MINNESOTA.
new text end

new text begin (a) The Board of Regents of the University of Minnesota is requested to conduct a study
that generates climate model projections for the entire state of Minnesota at a level of detail
as small as three square miles in area. At a minimum, the study must:
new text end

new text begin (1) use resources at the Minnesota Supercomputing Institute to analyze high-performing
climate models under varying greenhouse gas emissions scenarios and develop a series of
projections of temperature, precipitation, snow cover, and a variety of other climate
parameters through the year 2100;
new text end

new text begin (2) downscale the climate impact results under clause (1) to areas as small as three square
miles;
new text end

new text begin (3) develop a publicly accessible data portal website to:
new text end

new text begin (i) allow other universities, nonprofit organizations, businesses, and government agencies
to use the model projections; and
new text end

new text begin (ii) educate and train users to use the data most effectively; and
new text end

new text begin (4) incorporate information on how to use the model results in the University of
Minnesota Extension's climate education efforts, in partnership with the Minnesota Climate
Adaptation Partnership.
new text end

new text begin (b) In conjunction with the study, the university must conduct at least two "train the
trainer" workshops for state agencies, municipalities, and other stakeholders to educate
attendees regarding how to use and interpret the model data as a basis for climate adaptation
and resilience efforts.
new text end

new text begin (c) Beginning July 1, 2022, and continuing each July 1 through 2024, the University of
Minnesota must provide a written report to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over agriculture,
energy, and environment. The report must document the progress made on the study and
study results and must note any obstacles encountered that could prevent successful
completion of the study.
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. 6. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Buy clean, buy fair. new text end

new text begin $176,000 in fiscal year 2022 and $40,000 in fiscal
year 2023 are appropriated from the general fund to the commissioner of administration for
costs to establish (1) maximum global warming potential standards for certain construction
materials, and (2) the pilot program for vendors under Minnesota Statutes, section 16B.312.
The base in fiscal year 2024 is $40,000 and the base in fiscal year 2025 is $90,000. The
base in fiscal year 2026 is $0.
new text end

new text begin Subd. 2. new text end

new text begin Clean fuels report. new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (j), $100,000 in fiscal year 2022 is appropriated from the renewable
development account established in Minnesota Statutes, section 116C.779, subdivision 1,
to the commissioner of commerce to pay for costs incurred to create the report under
Minnesota Statutes, section 239.7912, subdivision 10. The money from this appropriation
does not cancel but remains available until expended. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Small-area climate-model projections. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $583,000 in fiscal year 2022 is appropriated
from the renewable development account established under Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of commerce for a grant to the Board of
Regents of the University of Minnesota to conduct the study requested under section 5 that
generates climate model projections for the entire state of Minnesota, at a level of detail as
small as three square miles in area. This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Climate Transition Plan. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j):
new text end

new text begin (1) $500,000 in fiscal year 2022 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
the Pollution Control Agency to contract with an independent consultant to produce a plan,
as directed by the Climate Change Subcabinet, to incorporate the state's greenhouse gas
emissions reduction targets into all activities of state agencies;
new text end

new text begin (2) $118,000 in fiscal year 2022 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
administration to develop greenhouse gas emissions reduction targets that apply to all state
agency activities; and
new text end

new text begin (3) $128,000 in fiscal year 2022 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
the Pollution Control Agency for costs associated with managing the contract under clause
(1), and to assist the Department of Administration to develop greenhouse gas emissions
reduction targets that apply to all state agency activities.
new text end

new text begin (b) All the appropriations in this subdivision are onetime appropriations.
new text end

ARTICLE 4

ELECTRIC VEHICLES

Section 1.

Minnesota Statutes 2020, section 16C.135, subdivision 3, is amended to read:

Subd. 3.

Vehicle purchases.

new text begin (a) new text end Consistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the central motor pool or for use by an agency, the
commissioner or the agency shall purchase deleted text begin a motor vehicle that is capable of being powered
by cleaner fuels, or a motor vehicle powered by electricity or by a combination of electricity
and liquid fuel, if the total life-cycle cost of ownership is less than or comparable to that of
other vehicles and if the vehicle is capable deleted text end new text begin the motor vehicle in conformity with the following
hierarchy of preferences:
new text end

new text begin (1) an electric vehicle;
new text end

new text begin (2) a hybrid electric vehicle;
new text end

new text begin (3) a vehicle capable of being powered by cleaner fuels; and
new text end

new text begin (4) a vehicle powered by gasoline or diesel fuel.
new text end

new text begin (b) The commissioner may only reject a vehicle type that is higher on the hierarchy of
preferences if:
new text end

new text begin (1) the vehicle type is incapable new text end of carrying out the purpose for which it is purchased deleted text begin . deleted text end new text begin ;
or
new text end

new text begin (2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten
percent higher than the next lower preference vehicle type.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 16C.137, subdivision 1, is amended to read:

Subdivision 1.

Goals and actions.

Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:

(1) ensure that all new on-road vehicles deleted text begin purchased deleted text end , excluding emergency and law
enforcement vehicles deleted text begin : deleted text end new text begin , are purchased in conformity with the hierarchy of preferences
established in section 16C.135, subdivision 3;
new text end

deleted text begin (i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
deleted text end

deleted text begin (ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
deleted text end

deleted text begin (iii) are powered solely by electricity;
deleted text end

(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and

(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.

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 2020, section 168.27, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Dealer training; electric vehicles. new text end

new text begin (a) A new motor vehicle dealer licensed
under this chapter that operates under an agreement or franchise from a manufacturer and
sells electric vehicles must maintain at least one employee who is certified as having
completed a training course offered by a Minnesota motor vehicle dealership association
that addresses at least the following elements:
new text end

new text begin (1) fundamentals of electric vehicles;
new text end

new text begin (2) electric vehicle charging options and costs;
new text end

new text begin (3) publicly available electric vehicle incentives;
new text end

new text begin (4) projected maintenance and fueling costs for electric vehicles;
new text end

new text begin (5) reduced tailpipe emissions, including greenhouse gas emissions, produced by electric
vehicles;
new text end

new text begin (6) the impacts of Minnesota's cold climate on electric vehicle operation; and
new text end

new text begin (7) best practices to sell electric vehicles.
new text end

new text begin (b) This subdivision does not apply to a licensed dealer selling new electric vehicles of
a manufacturer's own brand, but who is not operating under a franchise agreement with the
manufacturer.
new text end

new text begin (c) For the purposes of this section, "electric vehicle" has the meaning given in section
169.011, subdivision 26a, paragraphs (a) and (b), clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 4.

new text begin [216B.1615] ELECTRIC VEHICLE DEPLOYMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
new text end

new text begin (c) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
new text end

new text begin (d) "Electric vehicle charging station" means a physical location deploying equipment
that:
new text end

new text begin (1) transfers electricity to an electric vehicle battery; or
new text end

new text begin (2) dispenses hydrogen, produced by electrolysis, into an electric vehicle that uses a fuel
cell to convert the hydrogen to electricity.
new text end

new text begin (e) "Electric vehicle infrastructure" means electric vehicle charging stations and battery
exchange stations, and any associated machinery, equipment, and infrastructure necessary
to support the operation of electric vehicles and to make electricity from a public utility's
electric distribution system available to electric vehicle charging stations or battery exchange
stations.
new text end

new text begin (f) "Electrolysis" means the process of using electricity to split water into hydrogen and
oxygen.
new text end

new text begin (g) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Transportation electrification plan; contents. new text end

new text begin (a) By June 1, 2022, and by
June 1 every three years thereafter, a public utility serving retail electric customers in a city
of the first class, as defined in section 410.01, must file a transportation electrification plan
with the commission that is designed to maximize the overall benefits of electrified
transportation while minimizing overall costs and to promote:
new text end

new text begin (1) the purchase of electric vehicles by the public utility's customers; and
new text end

new text begin (2) the deployment of electric vehicle infrastructure in the public utility's service territory.
new text end

new text begin (b) A transportation electrification plan may include but is not limited to the following
elements:
new text end

new text begin (1) programs to educate and increase the awareness and benefits of electric vehicles and
electric vehicle charging equipment to potential users and deployers, including individuals,
electric vehicle dealers, single-family and multifamily housing developers and property
management companies, and vehicle fleet managers;
new text end

new text begin (2) utility investments and incentives to facilitate the deployment of electric vehicles,
customer- or utility-owned electric vehicle charging stations, electric vehicle infrastructure,
and other electric utility infrastructure;
new text end

new text begin (3) research and demonstration projects to publicize and measure the value electric
vehicles provide to the electric grid;
new text end

new text begin (4) rate structures or programs, including time-varying rates and charging optimization
programs, that encourage electric vehicle charging that optimizes electric grid operation;
and
new text end

new text begin (5) programs to increase access to the benefits of electricity as a transportation fuel by
low-income customers and communities, including the installation of electric vehicle
infrastructure in neighborhoods with a high proportion of low- or moderate-income
households, the deployment of electric vehicle infrastructure in community-based locations
or multifamily residences, car share programs, and electrification of public transit vehicles.
new text end

new text begin (c) A public utility must give priority under this section to making investments in
communities whose governing body has enacted a resolution or goal supporting electric
vehicle adoption.
new text end

new text begin (d) A public utility must work with local communities to identify suitable high-density
locations, consistent with a community's local development plans, where electric vehicle
infrastructure may be strategically deployed.
new text end

new text begin Subd. 3. new text end

new text begin Transportation electrification plan; review and implementation. new text end

new text begin The
commission must review a transportation electrification plan filed under this section within
180 days of receiving the plan. The commission may approve, modify, or reject a
transportation electrification plan. When reviewing a public utility's transportation
electrification plan, the commission must consider whether the programs and expenditures:
new text end

new text begin (1) improve electric grid operation and the integration of renewable energy sources;
new text end

new text begin (2) increase access to the benefits of electricity as a transportation fuel in low-income
and rural communities;
new text end

new text begin (3) reduce statewide greenhouse gas emissions, as defined in section 216H.01, and
emissions of other air pollutants that impair the environment and public health;
new text end

new text begin (4) stimulate private capital investment and the creation of skilled jobs as a consequence
of widespread electric vehicle deployment;
new text end

new text begin (5) educate potential customers about the benefits of electric vehicles;
new text end

new text begin (6) support increased consumer choice with respect to electrical vehicle charging options
and related infrastructure; and
new text end

new text begin (7) are transparent and incorporate sufficient and frequent public reporting of program
activities to facilitate changes in program design and commission policy with respect to
electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) Notwithstanding any other provision of this chapter, the
commission may approve, with respect to any prudent and reasonable investment made by
a public utility to administer and implement a transportation electrification plan approved
under subdivision 3:
new text end

new text begin (1) a rider or other tariff mechanism for the automatic annual adjustment of charges;
new text end

new text begin (2) performance-based incentives; or
new text end

new text begin (3) placing the investment, including rebates, in the public utility's rate base and allowing
the public utility to earn a rate of return on the investment at (i) the public utility's average
weighted cost of capital, including the rate of return on equity, approved by the commission
in the public utility's most recent general rate case, or (ii) another rate determined by the
commission.
new text end

new text begin (b) Notwithstanding section 216B.16, subdivision 8, paragraph (a), clause (3), the
commission must approve recovery costs for expenses reasonably incurred by a public
utility to provide public advertisement as part of a transportation electrification plan approved
by the commission under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [216B.1616] ELECTRIC SCHOOL BUS DEPLOYMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Battery exchange station" means a physical location where equipment is deployed
that enables a used electric vehicle battery to be exchanged for a fully charged battery.
new text end

new text begin (c) "Electric school bus" means an electric vehicle that is a school bus.
new text end

new text begin (d) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
new text end

new text begin (e) "Electric vehicle charging station" means a physical location deploying equipment
that delivers electricity to a battery in an electric vehicle.
new text end

new text begin (f) "Electric vehicle infrastructure" means electric vehicle charging stations and battery
exchange stations, and any other infrastructure necessary to make electricity from a public
utility's electric distribution system available to electric vehicle charging stations or battery
exchange stations.
new text end

new text begin (g) "Poor air quality" means:
new text end

new text begin (1) ambient air levels that air monitoring data reveals approach or exceed state or federal
air quality standards or chronic health inhalation risk benchmarks for any of the following
pollutants:
new text end

new text begin (i) total suspended particulates;
new text end

new text begin (ii) particulate matter less than ten microns wide (PM-10);
new text end

new text begin (iii) particulate matter less than 2.5 microns wide (PM-2.5);
new text end

new text begin (iv) sulfur dioxide; or
new text end

new text begin (v) nitrogen dioxide; or
new text end

new text begin (2) levels of asthma among children that significantly exceed the statewide average.
new text end

new text begin (h) "School bus" has the meaning given in section 169.011, subdivision 71.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin (a) A public utility may file with the commission a program to
promote deployment of electric school buses.
new text end

new text begin (b) The program may include but is not limited to the following elements:
new text end

new text begin (1) a school district may purchase one or more electric school buses;
new text end

new text begin (2) the public utility may provide a rebate to the school district for the incremental cost
the school district incurs to purchase one or more electric school buses compared with
fossil-fuel-powered school buses;
new text end

new text begin (3) at the request of a school district, the public utility may deploy on the school district's
real property electric vehicle infrastructure required for charging electric school buses;
new text end

new text begin (4) for any electric school bus purchased by a school district with a rebate provided by
the public utility, the school district must enter into a contract with the public utility under
which the school district:
new text end

new text begin (i) accepts any and all liability for operation of the electric school bus;
new text end

new text begin (ii) accepts responsibility to maintain and repair the electric school bus; and
new text end

new text begin (iii) must allow the public utility the option to own the electric school bus's battery at
the time the battery is retired from the electric school bus; and
new text end

new text begin (5) in collaboration with a school district, prioritize the deployment of electric school
buses in areas of the school district that suffer from poor air quality.
new text end

new text begin Subd. 3. new text end

new text begin Program review and implementation. new text end

new text begin The commission must approve, modify,
or reject a proposal for a program filed under this section within 180 days of the date the
proposal is received, based on the proposal's likelihood to, through prudent and reasonable
utility investments:
new text end

new text begin (1) accelerate deployment of electric school buses in the public utility's service territory,
particularly in areas with poor air quality; and
new text end

new text begin (2) reduce emissions of greenhouse gases and particulates compared to those produced
by fossil-fuel-powered school buses.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) The commission may allow any prudent and reasonable
investment made by a public utility on electric vehicle infrastructure installed on a school
district's real property, or a rebate provided under subdivision 2, to be placed in the public
utility's rate base and earn a rate of return as determined by the commission.
new text end

new text begin (b) Notwithstanding any other provision of this chapter, the commission may approve
a tariff mechanism for the automatic annual adjustment of charges for prudent and reasonable
investments made by a public utility to implement and administer a program approved by
the commission under subdivision 3.
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. 6.

new text begin [216C.401] ELECTRIC VEHICLE REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 216C.402, the
terms in this subdivision have the meanings given.
new text end

new text begin (b) "Dealer" means a person, firm, or corporation that possesses a new motor vehicle
license under chapter 168 and:
new text end

new text begin (1) regularly engages in the business of manufacturing or selling, purchasing, and
generally dealing in new and unused motor vehicles;
new text end

new text begin (2) has an established place of business to sell, trade, and display new and unused motor
vehicles; and
new text end

new text begin (3) possesses new and unused motor vehicles to sell or trade the motor vehicles.
new text end

new text begin (c) "Electric vehicle" means a passenger vehicle, as defined in section 169.011,
subdivision 52, that is also an electric vehicle, as defined in section 169.011, subdivision
26a, paragraph (a). Electric vehicle does not include a plug-in hybrid electric vehicle, as
defined in section 169.011, subdivision 54a.
new text end

new text begin (d) "Eligible new electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (a).
new text end

new text begin (e) "Eligible used electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (c).
new text end

new text begin (f) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership transferred, other than the right to use the vehicle for a term of at least 24
months.
new text end

new text begin (g) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
new text end

new text begin (h) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
new text end

new text begin Subd. 2. new text end

new text begin Eligible vehicle. new text end

new text begin (a) A new electric vehicle is eligible for a rebate under this
section if the vehicle meets all of the following conditions, and, if applicable, one of the
conditions of paragraph (b):
new text end

new text begin (1) has not been previously owned or has been returned to a dealer before the purchaser
or lessee takes delivery, even if the electric vehicle is registered in Minnesota;
new text end

new text begin (2) has not been modified from the original manufacturer's specifications;
new text end

new text begin (3) has a base manufacturer's suggested retail price that does not exceed $50,000;
new text end

new text begin (4) is purchased or leased after the effective date of this act for use by the purchaser and
not for resale; and
new text end

new text begin (5) is purchased or leased from a dealer or directly from an original equipment
manufacturer that does not have licensed franchised dealers in Minnesota.
new text end

new text begin (b) A new electric vehicle is eligible for a rebate under this section if, in addition to
meeting all of the conditions of paragraph (a), it also meets one or more of the following
conditions, if applicable:
new text end

new text begin (1) is used by a dealer as a floor model or test drive vehicle and has not been previously
registered in Minnesota or any other state; or
new text end

new text begin (2) is returned to a dealer by a purchaser or lessee within two weeks of purchase or
leasing or when a purchaser's financing for the new electric vehicle has been disapproved.
new text end

new text begin (c) A used electric vehicle is eligible for an electric vehicle rebate under this section if
the electric vehicle has previously been owned in this state or another state and has not been
modified from the original manufacturer's specifications.
new text end

new text begin Subd. 3. new text end

new text begin Eligible purchaser or lessee. new text end

new text begin A person who purchases or leases an eligible
new or used electric vehicle is eligible for a rebate under this section if the purchaser or
lessee:
new text end

new text begin (1) is one of the following:
new text end

new text begin (i) a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a),
when the electric vehicle is purchased or leased;
new text end

new text begin (ii) a business that has a valid address in Minnesota from which business is conducted;
new text end

new text begin (iii) a nonprofit corporation incorporated under chapter 317A; or
new text end

new text begin (iv) a political subdivision of the state;
new text end

new text begin (2) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from Minnesota; and
new text end

new text begin (3) registers the electric vehicle in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin (a) A $2,000 rebate may be issued under this section to an
eligible purchaser to purchase or lease an eligible new electric vehicle.
new text end

new text begin (b) A $500 rebate may be issued under this section to an eligible purchaser or lessee of
an eligible used electric vehicle.
new text end

new text begin (c) A purchaser or lessee whose household income at the time the eligible electric vehicle
is purchased or leased is less than 150 percent of the current federal poverty guidelines
established by the Department of Health and Human Services is eligible for a rebate in
addition to a rebate under paragraph (a) or (b), as applicable, of $500 to purchase or lease
an eligible new electric vehicle and $100 to purchase or lease an eligible used electric
vehicle.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin The number of rebates allowed under this section is limited to:
new text end

new text begin (1) no more than one rebate per resident per household; and
new text end

new text begin (2) no more than one rebate per business entity per year.
new text end

new text begin Subd. 6. new text end

new text begin Program administration. new text end

new text begin (a) Rebate applications under this section must be
filed with the commissioner on a form developed by the commissioner.
new text end

new text begin (b) The commissioner must develop administrative procedures governing the application
and rebate award process. Applications must be reviewed and rebates awarded by the
commissioner on a first-come, first-served basis.
new text end

new text begin (c) The commissioner must, in coordination with dealers and other state agencies as
applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or
lessee at the point of sale so that the rebate amount may be subtracted from the selling price
of the eligible electric vehicle.
new text end

new text begin (d) The commissioner may reduce the rebate amounts provided under subdivision 4 or
restrict program eligibility based on fund availability or other factors.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

new text begin [216C.402] GRANT PROGRAM; MANUFACTURERS' CERTIFICATION
OF AUTO DEALERS TO SELL ELECTRIC VEHICLES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established in the Department of
Commerce to award grants to dealers to offset the costs of obtaining the necessary training
and equipment that is required by electric vehicle manufacturers in order to certify a dealer
to sell electric vehicles produced by the manufacturer.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to reimburse:
new text end

new text begin (1) a dealer for the reasonable costs to obtain training and certification for the dealer's
employees from the electric vehicle manufacturer that awarded the franchise to the dealer;
new text end

new text begin (2) a dealer for the reasonable costs to purchase and install equipment to service and
repair electric vehicles, as required by the electric vehicle manufacturer that awarded the
franchise to the dealer; and
new text end

new text begin (3) the department for the reasonable costs to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A grant awarded under this section to a single dealer must not
exceed $40,000.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin ELECTRIC VEHICLE CHARGING STATIONS; INSTALLATIONS IN
STATE AND REGIONAL PARKS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "DC Fast charger" means electric vehicle charging station equipment that transfers
direct current electricity directly to an electric vehicle's battery.
new text end

new text begin (c) "Electric vehicle" has the meaning given in Minnesota Statutes, section 169.011,
subdivision 26a.
new text end

new text begin (d) "Electric vehicle charging station" means infrastructure that connects an electric
vehicle to a Level 2 or DC Fast charger to recharge the electric vehicle's batteries.
new text end

new text begin (e) "Level 2 charger" means electric vehicle charging station equipment that transfers
208- to 240-volt alternating current electricity to a device in an electric vehicle that converts
alternating current to direct current to recharge an electric vehicle battery.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin The commissioner of natural resources, in consultation with the
commissioners of the Pollution Control Agency, administration, and commerce, must
develop and fund the installation of a network of electric vehicle charging stations in
Minnesota state parks located within the retail electric service area of a public utility subject
to Minnesota Statutes, section 116C.779, subdivision 1. The commissioners must issue a
request for proposals to entities that have experience installing, owning, operating, and
maintaining electric vehicle charging stations. The request for proposal must establish
technical specifications that electric vehicle charging stations are required to meet and must
request responders to address:
new text end

new text begin (1) the optimal number and location of charging stations installed in a given state park;
new text end

new text begin (2) alternative arrangements that may be made to allocate responsibility for electric
vehicle charging station (i) ownership, operation, and maintenance, and (ii) billing
procedures; and
new text end

new text begin (3) any other issues deemed relevant by the commissioners.
new text end

new text begin Subd. 3. new text end

new text begin Deployment; regional parks. new text end

new text begin The commissioner of natural resources may
allocate a portion of the appropriation under this section to install electric vehicle charging
stations in regional parks located within the retail electric service area of a public utility
that is subject to Minnesota Statutes, section 116C.779, subdivision 1.
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. 9. new text begin ELECTRIC VEHICLE CHARGING STATIONS; INSTALLATIONS AT
COUNTY GOVERNMENT CENTERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "DC Fast charger" means electric vehicle charging station equipment that transfers
direct current electricity directly to an electric vehicle's battery.
new text end

new text begin (c) "Electric vehicle" has the meaning given in Minnesota Statutes, section 169.011,
subdivision 26a.
new text end

new text begin (d) "Electric vehicle charging station" means infrastructure that connects an electric
vehicle to a Level 2 or DC Fast charger to recharge the electric vehicle's batteries.
new text end

new text begin (e) "Level 2 charger" means electric vehicle charging station equipment that transfers
208- to 240-volt alternating current electricity to a device in an electric vehicle that converts
alternating current to direct current to recharge an electric vehicle battery.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin The commissioner of commerce must develop and fund the installation
of a network of electric vehicle charging stations in public parking facilities at county
government centers located in Minnesota. The commissioner must issue a request for
proposals to entities that have experience installing, owning, operating, and maintaining
electric vehicle charging stations. The request for proposal must establish technical
specifications that electric vehicle charging stations are required to meet and must request
responders to address:
new text end

new text begin (1) the optimal number and location of charging stations installed at each county
government center;
new text end

new text begin (2) alternative arrangements that may be made to allocate responsibility for electric
vehicle charging station (i) ownership, operation, and maintenance, and (ii) billing
procedures;
new text end

new text begin (3) software used to allow payment for electricity consumed at the charging stations;
and
new text end

new text begin (4) any other issues deemed relevant by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin County role. new text end

new text begin (a) A county has a right of first refusal with respect to ownership
of electric vehicle charging stations receiving funding under this section and installed at the
county government center.
new text end

new text begin (b) A county may enter into agreements to (1) wholly or partially own, operate, or
maintain an electric vehicle charging system receiving funding under this section and
installed at the county government center, or (2) receive reports on the electric vehicle
charging system operations.
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. 10. new text begin METROPOLITAN COUNCIL; ELECTRIC BUS PURCHASES.
new text end

new text begin Beginning on the effective date of this act, any bus purchased by the Metropolitan
Council for Metro Transit bus service must operate solely on electricity provided by
rechargeable on-board batteries. The appropriation in section 11, subdivision 8, must be
used to pay the incremental cost of buses that operate solely on electricity provided by
rechargeable on-board batteries over the cost of diesel-operated buses that are otherwise
comparable in size, features, and performance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires the day after the appropriation under section 11, subdivision 8, has been spent or is
canceled.
new text end

Sec. 11. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Electric vehicle rebates; Xcel service area. new text end

new text begin Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $9,000,000 in fiscal year 2022 and
$8,000,000 in fiscal year 2023 are appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to award rebates to purchase or lease eligible electric vehicles under Minnesota Statutes,
section 216C.401. Rebates must be awarded under this paragraph only to eligible purchasers
located within the retail electric service area of the public utility that is subject to Minnesota
Statutes, section 116C.779. These are onetime appropriations.
new text end

new text begin Subd. 2. new text end

new text begin Electric vehicle rebates; non-Xcel service area. new text end

new text begin $2,500,000 in fiscal year
2022 is appropriated from the general fund to the commissioner of commerce to award
rebates to purchase or lease eligible electric vehicles under Minnesota Statutes, section
216C.401. Rebates must be awarded under this paragraph only to eligible purchasers located
outside the retail electric service area of the public utility that is subject to Minnesota Statutes,
section 116C.779. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Auto dealer grants; Xcel service area. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to award grants under Minnesota Statutes,
section 216C.402, to automobile dealers seeking certification from an electric vehicle
manufacturer to sell electric vehicles. Rebates must be awarded under this paragraph only
to eligible dealers located within the retail electric service area of the public utility that is
subject to Minnesota Statutes, section 116C.779. This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Auto dealer grants; non-Xcel service area. new text end

new text begin $500,000 in fiscal year 2022 is
appropriated from the general fund to the commissioner of commerce to award grants under
Minnesota Statutes, section 216C.402, to automobile dealers seeking certification to sell
electric vehicles. Rebates must be awarded under this paragraph only to eligible dealers
located outside the retail electric service area of the public utility that is subject to Minnesota
Statutes, section 116C.779. This is a onetime appropriation.
new text end

new text begin Subd. 5. new text end

new text begin Electric school buses. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated from
the renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to purchase electric school buses under
Minnesota Statutes, section 216B.1616. This is a onetime appropriation.
new text end

new text begin (b) $30,000 in fiscal year 2022 and $30,000 in fiscal year 2023 are appropriated from
the general fund to the commissioner of commerce for activities associated with the electric
school bus deployment program under Minnesota Statutes, section 216B.161. These are
onetime appropriations.
new text end

new text begin (c) $28,000 in fiscal year 2022 and $28,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission for activities associated with the electric
school bus deployment program under Minnesota Statutes, section 216B.161. These are
onetime appropriations.
new text end

new text begin Subd. 6. new text end

new text begin Charging stations; parks. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 and $59,000 in fiscal
year 2023 are appropriated from the renewable development account established in Minnesota
Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for transfer to
the commissioner of natural resources to install electric vehicle charging stations in state
and regional parks located in a county some portion of which is within the retail electric
service area of the public utility subject to Minnesota Statutes, section 116C.779, subdivision
1, as described in section 8.
new text end

new text begin Subd. 7. new text end

new text begin Charging stations; counties. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to install electric vehicle charging stations
in parking facilities at county government centers located in a county some portion of which
is within the retail electric service area of the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1, as described in section 9. This is a onetime appropriation.
new text end

new text begin Subd. 8. new text end

new text begin Electric buses; Metropolitan Council. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $5,000,000 in fiscal year 2022 is appropriated
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the Metropolitan Council
to defray the cost of purchasing electric buses, as described in section 10. This appropriation
does not cancel and is available until there is insufficient money remaining to completely
defray the cost of purchasing one additional electric bus, as described in section 10. Any
remaining money cancels back to the renewable development account under Minnesota
Statutes, section 116C.779, subdivision 1. This is a onetime appropriation.
new text end

ARTICLE 5

SOLAR ENERGY

Section 1.

Minnesota Statutes 2020, section 216B.164, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Customer's access to electricity usage data. new text end

new text begin A utility shall provide a
customer's electricity usage data to the customer within ten days of receipt of a request from
the customer that is accompanied by evidence that the energy usage data is relevant to the
interconnection of a qualifying facility on behalf of the customer. For the purposes of this
subdivision, "electricity usage data" includes but is not limited to the total amount of
electricity used by a customer monthly, usage by time period if the customer operates under
a tariff where costs vary by time-of-use, and usage data that is used to calculate a customer's
demand charge.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 216B.1641, is amended to read:

216B.1641 COMMUNITY SOLAR GARDEN.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Subscribed energy" means electricity generated by the community solar garden that
is attributable to a subscriber's subscription.
new text end

new text begin (c) "Subscriber" means a retail customer who owns one or more subscriptions of a
community solar garden interconnected with the retail customer's utility.
new text end

new text begin (d) "Subscription" means a contract between a subscriber and the owner of a solar garden.
new text end

new text begin Subd. 2. new text end

new text begin Solar garden; project requirements. new text end

(a) The public utility subject to section
116C.779 shall file by September 30, 2013, a plan with the commission to operate a
community solar garden program which shall begin operations within 90 days after
commission approval of the plan. Other public utilities may file an application at their
election. The community solar garden program must be designed to offset the energy use
of not less than five subscribers in each community solar garden facility of which no single
subscriber has more than a 40 percent interest. The owner of the community solar garden
may be a public utility or any other entity or organization that contracts to sell the output
from the community solar garden to the utility under section 216B.164. There shall be no
limitation on the number or cumulative generating capacity of community solar garden
facilities other than the limitations imposed under section 216B.164, subdivision 4c, or
other limitations provided in law or regulations.

(b) A solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must
have a nameplate capacity of no more than deleted text begin one megawatt deleted text end new text begin three megawatts new text end . Each subscription
shall be sized to represent at least 200 watts of the community solar garden's generating
capacity and to supply, when combined with other distributed generation resources serving
the premises, no more than 120 percent of the average annual consumption of electricity
by each subscriber at the premises to which the subscription is attributed.

(c) The solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility new text begin and, unless
the facility has a minimum setback of 100 feet from the nearest residential property, must
be new text end located in the same county or a county contiguous to where the facility is located.

(d) The public utility must purchase from the community solar garden all energy generated
by the solar garden. new text begin Unless specified elsewhere in this section, new text end the purchase shall be at the
new text begin most recent three-year average of the new text end rate calculated under section 216B.164, subdivision
10, or, until that rate for the public utility has been approved by the commission, the
applicable retail rate. A solar garden is eligible for any incentive programs offered under
section 116C.7792. A subscriber's portion of the purchase shall be provided by a credit on
the subscriber's bill.

new text begin Subd. 3. new text end

new text begin Solar garden plan; requirements; nonutility status. new text end

deleted text begin (e) deleted text end new text begin (a) new text end The commission
may approve, disapprove, or modify a community solar garden deleted text begin program deleted text end new text begin plan new text end . Any plan
approved by the commission must:

(1) reasonably allow for the creation, financing, and accessibility of community solar
gardens;

(2) establish uniform standards, fees, and processes for the interconnection of community
solar garden facilities that allow the utility to recover reasonable interconnection costs for
each community solar garden;

(3) not apply different requirements to utility and nonutility community solar garden
facilities;

(4) be consistent with the public interest;

(5) identify the information that must be provided to potential subscribers to ensure fair
disclosure of future costs and benefits of subscriptions;

(6) include a program implementation schedule;

(7) identify all proposed rules, fees, and charges; deleted text begin and
deleted text end

(8) identify the means by which the program will be promoted deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) require that residential subscribers have a right to cancel a community solar garden
subscription within three business days, as provided under section 325G.07;
new text end

new text begin (10) require that the following information is provided by the solar garden owner in
writing to any prospective subscriber asked to make a prepayment to the solar garden owner
prior to the delivery of subscribed energy by the solar garden:
new text end

new text begin (i) an estimate of the annual generation of subscribed energy, based on the methodology
approved by the commission; and
new text end

new text begin (ii) an estimate of the length of time required to fully recover a subscriber's prepayments
made to the owner of the solar garden prior to the delivery of subscribed energy, calculated
using the formula developed by the commission under paragraph (d); and
new text end

new text begin (11) require new residential subscription agreements that require a prepayment to allow
the subscriber to transfer the subscription to other new or current subscribers, or to cancel
the subscription, on commercially reasonable terms; and
new text end

new text begin (12) require an owner of a solar garden to submit a report that meets the requirements
of section 216C.51, subdivisions 3 and 4, each year the solar garden is in operation.
new text end

deleted text begin (f) deleted text end new text begin (b) new text end Notwithstanding any other law, neither the manager of nor the subscribers to a
community solar garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.

deleted text begin (g) deleted text end new text begin (c) new text end Within 180 days of commission approval of a plan under this section, a utility
shall begin crediting subscriber accounts for each community solar garden facility in its
service territory, and shall file with the commissioner of commerce a description of its
crediting system.

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

deleted text begin (1) "subscriber" means a retail customer of a utility who owns one or more subscriptions
of a community solar garden facility interconnected with that utility; and
deleted text end

deleted text begin (2) "subscription" means a contract between a subscriber and the owner of a solar garden.
deleted text end

new text begin Subd. 4. new text end

new text begin Community access project; eligibility. new text end

new text begin (a) An owner of a community solar
garden may apply to the utility to be designated as a community access project at any time:
new text end

new text begin (1) before the owner makes an initial payment under an interconnection agreement
entered into with a public utility; or
new text end

new text begin (2) if the owner made an initial payment under an interconnection agreement between
January 1, 2021, and the effective date of this act, before commercial operation begins.
new text end

new text begin (b) The utility must designate a solar garden as a community access project if the owner
of a solar garden commits in writing to meet the following conditions:
new text end

new text begin (1) at least 50 percent of the solar garden's generating capacity is subscribed by residential
customers;
new text end

new text begin (2) the contract between the owner of the solar garden and the public utility that purchases
the garden's electricity, and any agreement between the utility or owner of the solar garden
and subscribers, states that the owner of the solar garden does not discriminate against or
screen subscribers based on income or credit score and that any customer of a utility with
a community solar garden plan approved by the commission under subdivision 3 is eligible
to become a subscriber;
new text end

new text begin (3) the solar garden is operated by an entity that maintains a physical address in Minnesota
and has designated a contact person in Minnesota who responds to subscriber inquiries; and
new text end

new text begin (4) the agreement between the owner of the solar garden and subscribers states that the
owner must adequately publicize and convene at least one meeting annually to provide an
opportunity for subscribers to pose questions to the manager or owner.
new text end

new text begin Subd. 5. new text end

new text begin Community access project; financial arrangements. new text end

new text begin (a) If a solar garden is
approved by the utility as a community access project:
new text end

new text begin (1) the public utility purchasing the electricity generated by the community access project
may charge the owner of the community access project no more than one cent per watt
alternating current based on the solar garden's generating capacity for any refundable deposit
the utility requires of a solar garden during the application process;
new text end

new text begin (2) notwithstanding subdivision 2, paragraph (d), the public utility must purchase all
energy generated by the community access project at the retail rate; and
new text end

new text begin (3) all renewable energy credits generated by the community access project belong to
subscribers unless the operator:
new text end

new text begin (i) contracts to:
new text end

new text begin (A) sell the credits to a third party; or
new text end

new text begin (B) sell or transfer the credits to the utility; and
new text end

new text begin (ii) discloses a sale or transfer to subscribers at the time the subscribers enter into a
subscription.
new text end

new text begin (b) If at any time after commercial operation begins a solar garden approved by the
utility as a community access project fails to meet the conditions under subdivision 4, the
solar garden is no longer subject to the provisions of this subdivision and subdivision 6,
and must operate under the program rules established by the commission for a solar garden
that does not qualify as a community access project.
new text end

new text begin (c) An owner of a solar garden whose designation as a community access project is
revoked under this subdivision may reapply to the commission at any time to have the
designation as a community access project reinstated under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Community access project; reporting. new text end

new text begin The owner of a community access
project must include the following information in an annual report to the community access
project subscribers and the utility:
new text end

new text begin (1) a description of the process by which subscribers can provide input to solar garden
policy and decision making;
new text end

new text begin (2) the amount of revenues received by the solar garden in the previous year that were
allocated to categories that include but are not limited to operating costs, debt service, profits
distributed to subscribers, and profits distributed to others; and
new text end

new text begin (3) an estimate of the proportion of low- and moderate-income subscribers, and a
description of one or more of the following methods used to make the estimate:
new text end

new text begin (i) evidence provided by a subscriber that the subscriber or a member of the subscriber's
household receives assistance from any of the following sources:
new text end

new text begin (A) the federal Low-Income Home Energy Assistance Program;
new text end

new text begin (B) federal Section 8 housing assistance;
new text end

new text begin (C) medical assistance;
new text end

new text begin (D) the federal Supplemental Nutrition Assistance Program; or
new text end

new text begin (E) the federal National School Lunch Program;
new text end

new text begin (ii) characterization of the census tract where the subscriber resides as low- or
moderate-income by the Federal Financial Institutions Examination Council; or
new text end

new text begin (iii) other methods approved by the commission.
new text end

new text begin Subd. 7. new text end

new text begin Commission order. new text end

new text begin Within 180 days of the effective date of this section, the
commission must issue an order addressing the requirements of this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [216C.375] SOLAR FOR SCHOOLS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section 216C.376,
the following terms have the meanings given.
new text end

new text begin (b) "Developer" means an entity that installs a solar energy system on a school building
that has been awarded a grant under this section.
new text end

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

new text begin (d) "School" means a school that operates as part of an independent or special school
district.
new text end

new text begin (e) "School district" means an independent or special school district.
new text end

new text begin (f) "Solar energy system" means photovoltaic or solar thermal devices.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar for schools program is established in the
Department of Commerce. The purpose of the program is to (1) provide grants to stimulate
the installation of solar energy systems on or adjacent to school buildings by reducing the
cost, and (2) enable schools to use the solar energy system as a teaching tool that can be
integrated into the school's curriculum.
new text end

new text begin Subd. 3. new text end

new text begin Establishment of account. new text end

new text begin (a) A solar for schools program account is
established in the special revenue fund. Money received from the general fund must be
transferred to the commissioner of commerce and credited to the account. Money deposited
in the account remains in the account until expended and does not cancel to the general
fund.
new text end

new text begin (b) When a grant is awarded under this section, the commissioner must reserve the grant
amount in the account.
new text end

new text begin Subd. 4. new text end

new text begin Expenditures. new text end

new text begin (a) Money in the account must be used only:
new text end

new text begin (1) to award grants under this section; and
new text end

new text begin (2) to pay the reasonable costs incurred by the department to administer this section.
new text end

new text begin (b) Grant awards made with money in the account must be used only for grants for solar
energy systems installed on or adjacent to school buildings receiving retail electric service
from a utility that is not subject to section 116C.779, subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Eligible system. new text end

new text begin (a) A grant may be awarded to a school under this section
only if the solar energy system that is the subject of the grant:
new text end

new text begin (1) is installed on or adjacent to the school building that consumes the electricity generated
by the solar energy system, on property within the service territory of the utility currently
providing electric service to the school building; and
new text end

new text begin (2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the
estimated annual electricity consumption of the school building at which the solar energy
system is installed.
new text end

new text begin (b) A school district that receives a rebate or other financial incentive under section
216B.241 for a solar energy system and that demonstrates considerable need for financial
assistance, as determined by the commissioner, is eligible for a grant under this section for
the same solar energy system.
new text end

new text begin Subd. 6. new text end

new text begin Application process. new text end

new text begin (a) The commissioner must issue a request for proposals
to utilities, schools, and developers who may wish to apply for a grant under this section
on behalf of a school.
new text end

new text begin (b) A utility or developer must submit an application to the commissioner on behalf of
a school on a form prescribed by the commissioner. The form must include, at a minimum,
the following information:
new text end

new text begin (1) the capacity of the proposed solar energy system and the amount of electricity that
is expected to be generated;
new text end

new text begin (2) the current energy demand of the school building on which the solar energy generating
system is to be installed, and information regarding any distributed energy resource, including
subscription to a community solar garden, that currently provides electricity to the school
building;
new text end

new text begin (3) a description of any solar thermal devices proposed as part of the solar energy system;
new text end

new text begin (4) the total cost to purchase and install the solar energy system and the solar energy
system's life-cycle cost, including removal and disposal at the end of the system's life;
new text end

new text begin (5) a copy of the proposed contract agreement between the school and the utility or
developer that includes provisions addressing responsibility for maintenance of the solar
energy system;
new text end

new text begin (6) the school's plan to make the solar energy system serve as a visible learning tool for
students, teachers, and visitors to the school, including how the solar energy system may
be integrated into the school's curriculum and provisions for real-time monitoring of the
solar energy system performance for display in a prominent location in the school or
on-demand in the classroom;
new text end

new text begin (7) information that demonstrates the school district's level of need for financial assistance
available under this section;
new text end

new text begin (8) information that demonstrates the school's readiness to implement the project,
including but not limited to the availability of the site on which the solar energy system is
to be installed and the level of the school's engagement with the utility providing electric
service to the school building on which the solar energy system is to be installed on issues
relevant to the implementation of the project, including metering and other issues;
new text end

new text begin (9) with respect to the installation and operation of the solar energy system, the
willingness and ability of the developer or the utility to:
new text end

new text begin (i) pay employees and contractors a prevailing wage rate, as defined in section 177.42,
subdivision 6; and
new text end

new text begin (ii) adhere to the provisions of section 177.43;
new text end

new text begin (10) how the developer or utility plans to reduce the school's initial capital expense to
purchase and install the solar energy system, and to provide financial benefits to the school
from the utilization of federal and state tax credits, utility incentives, and other financial
incentives; and
new text end

new text begin (11) any other information deemed relevant by the commissioner.
new text end

new text begin (c) The commissioner must administer an open application process under this section
at least twice annually.
new text end

new text begin (d) The commissioner must develop administrative procedures governing the application
and grant award process.
new text end

new text begin Subd. 7. new text end

new text begin Energy conservation review. new text end

new text begin At the commissioner's request, a school awarded
a grant under this section shall provide the commissioner information regarding energy
conservation measures implemented at the school building at which the solar energy system
is installed. The commissioner may make recommendations to the school regarding
cost-effective conservation measures it can implement and may provide technical assistance
and direct the school to available financial assistance programs.
new text end

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance to
schools to develop and execute projects under this section.
new text end

new text begin Subd. 9. new text end

new text begin Grant payments. new text end

new text begin The commissioner must award a grant from the account
established under subdivision 3 to a school for the necessary costs associated with the
purchase and installation of a solar energy system. The amount of the grant must be based
on the commissioner's assessment of the school's need for financial assistance.
new text end

new text begin Subd. 10. new text end

new text begin Limitations. new text end

new text begin (a) No more than 50 percent of the grant payments awarded to
schools under this section may be awarded to schools where the proportion of students
eligible for free and reduced-price lunch under the National School Lunch Program is less
than 50 percent.
new text end

new text begin (b) No more than ten percent of the total amount of grants awarded under this section
may be awarded to schools that are part of the same school district.
new text end

new text begin Subd. 11. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin [216C.376] SOLAR FOR SCHOOLS PROGRAM FOR CERTAIN UTILITY
SERVICE TERRITORY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The utility subject to section 116C.779 must
operate a program to develop and to supplement with additional funding financial
arrangements that enable schools to install and operate solar energy systems that can be
used as teaching tools and integrated into the school curriculum.
new text end

new text begin Subd. 2. new text end

new text begin Required plan. new text end

new text begin (a) By October 1, 2021, the public utility must file a plan for
the solar for schools program with the commissioner. The plan must contain, at a minimum,
the following elements:
new text end

new text begin (1) a description of how the public utility proposes to utilize funds appropriated to the
program to assist schools to install solar energy systems;
new text end

new text begin (2) an estimate of the amount of financial assistance that the public utility proposes to
provide to a school, on a per kilowatt-hour produced basis, and the length of time the public
utility estimates financial assistance is provided to a school;
new text end

new text begin (3) administrative procedures governing the application and financial benefit award
process, and the costs the public utility is projected to incur to administer the program;
new text end

new text begin (4) the public utility's proposed process for periodic reevaluation and modification of
the program; and
new text end

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

new text begin (b) The public utility may not implement the program until the commissioner approves
the public utility's plan submitted under this subdivision. The commissioner may modify a
plan, and no later than December 31, 2021, the commissioner must approve a plan and the
financial incentives the plan provides the public utility if the commissioner determines both
are in the public interest. Any proposed modifications to the plan approved under this
subdivision must be approved by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin System eligibility. new text end

new text begin A solar energy system is eligible to receive financial benefits
under this section if the solar energy system meets all of the following conditions:
new text end

new text begin (1) the solar energy system must be located on or adjacent to a school building receiving
retail electric service from the public utility and completely located within the public utility's
electric service territory, provided that any land situated between the school building and
the site where the solar energy system is installed is owned by the school district in which
the school building operates; and
new text end

new text begin (2) the total aggregate nameplate capacity of all distributed generation serving the school
building, including any subscriptions to a community solar garden under section 216B.1641,
does not exceed the lesser of one megawatt alternating current or 120 percent of the average
annual electric energy consumption of the school building.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin (a) A school seeking financial assistance under this section
must submit an application to the public utility, including a plan for how the school uses
the solar energy system as a visible learning tool for students, teachers, and visitors to the
school, and how the solar energy system may be integrated into the school's curriculum.
new text end

new text begin (b) The public utility must award financial assistance under this section on a first-come,
first-served basis.
new text end

new text begin (c) The public utility must discontinue accepting applications under this section after
all funds appropriated to the program are allocated to program participants, including funds
from canceled projects.
new text end

new text begin Subd. 5. new text end

new text begin Benefits information. new text end

new text begin Before signing an agreement with the public utility to
receive financial assistance under this section, a school must obtain from the developer and
provide to the public utility information the developer shared with potential investors in the
project regarding future financial benefits to be realized from installation of a solar energy
system at the school and potential financial risks.
new text end

new text begin Subd. 6. new text end

new text begin Cost recovery; renewable energy credits. new text end

new text begin (a) Payments by the public utility
to a school receiving financial assistance under this section are fully recoverable by the
public utility through the public utility's fuel clause adjustment.
new text end

new text begin (b) The renewable energy credits associated with the electricity generated by a solar
energy system receiving financial assistance under this section are the property of the public
utility that is subject to this section.
new text end

new text begin Subd. 7. new text end

new text begin Limitation. new text end

new text begin (a) No more than 50 percent of the financial assistance provided
by the public utility to schools under this section may be provided to schools where the
proportion of students eligible for free and reduced-price lunch under the National School
Lunch Program is less than 50 percent.
new text end

new text begin (b) No more than ten percent of the total amount of financial assistance provided by the
public utility to schools under this section may be provided to schools that are part of the
same school district.
new text end

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance to
schools to develop and execute projects under this section.
new text end

new text begin Subd. 9. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2020, section 216E.01, subdivision 9a, is amended to read:

Subd. 9a.

Solar energy generating system.

"Solar energy generating system" means a
set of devices whose primary purpose is to produce electricity by means of any combination
of collecting, transferring, or converting solar-generated energy new text begin , and may include
transmission lines designed for and capable of operating at 100 kilovolts or less that
interconnect a solar energy generating system with a high voltage transmission line 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. 6.

new text begin [500.216] LIMITS ON CERTAIN RESIDENTIAL SOLAR ENERGY
SYSTEMS PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin General rule. new text end

new text begin A private entity must not prohibit or refuse to permit
installation, maintenance, or use of a roof-mounted solar energy system by the owner of a
single-family dwelling, notwithstanding any covenant, restriction, or condition contained
in a deed, security instrument, homeowners association document, or any other instrument
affecting the transfer, sale of, or an interest in real property, except as provided in this
section.
new text end

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin This section applies to single-family detached dwellings whose
owner is the sole owner of the entire building in which the dwelling is located and who is
solely responsible for the maintenance, repair, replacement, and insurance of the entire
building.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Private entity" means a homeowners association, community association, or other
association that is subject to a homeowners association document.
new text end

new text begin (c) "Homeowners association document" means a document containing the declaration,
articles of incorporation, bylaws, or rules and regulations of:
new text end

new text begin (1) a common interest community, as defined in section 515B.1-103, regardless of
whether the common interest community is subject to chapter 515B; and
new text end

new text begin (2) a residential community that is not a common interest community.
new text end

new text begin (d) "Solar energy system" has the meaning given in section 216C.06, subdivision 17.
new text end

new text begin Subd. 4. new text end

new text begin Allowable conditions. new text end

new text begin (a) This section does not prohibit a private entity from
requiring that:
new text end

new text begin (1) a licensed contractor install a solar energy system;
new text end

new text begin (2) a roof-mounted solar energy system not extend above the peak of a pitched roof or
beyond the edge of the roof;
new text end

new text begin (3) the owner or installer of a solar energy system indemnify or reimburse the private
entity or the private entity's members for loss or damage caused by the installation,
maintenance, use, repair, or removal of a solar energy system;
new text end

new text begin (4) the owner and each successive owner of a solar energy system list the private entity
as a certificate holder on the homeowner's insurance policy; or
new text end

new text begin (5) the owner and each successive owner of a solar energy system be responsible for
removing the system if reasonably necessary for the repair, maintenance, or replacement
of common elements or limited common elements, as defined in section 515B.1-103.
new text end

new text begin (b) A private entity may impose other reasonable restrictions on the installation,
maintenance, or use of solar energy systems, provided that those restrictions do not decrease
the projected generation of energy by a solar energy system by more than 20 percent or
increase the solar energy system's cost by more than (1) 20 percent for a solar water heater,
or (2) $2,000 for a solar photovoltaic system, compared with the generation of energy and
the cost of labor and materials certified by the designer or installer of the solar energy system
as originally proposed without the restrictions. A private entity may obtain an alternative
bid and design from a solar energy system designer or installer for the purposes of this
paragraph.
new text end

new text begin (c) A solar energy system must meet applicable standards and requirements imposed by
the state and by governmental units, as defined in section 462.384.
new text end

new text begin (d) A solar energy system for heating water must be certified by the Solar Rating
Certification Corporation (SRCC) or an equivalent certification agency. A solar energy
system for producing electricity must meet all applicable safety and performance standards
established by the National Electrical Code, the Institute of Electrical and Electronics
Engineers and accredited testing laboratories including but not limited to Underwriters
Laboratories and, where applicable, rules of the Public Utilities Commission regarding
safety and reliability.
new text end

new text begin (e) If approval by a private entity is required to install or use a solar energy system, the
application for approval must be processed and approved in the same manner as an
application for approval of an architectural modification to the property, and must not be
willfully avoided or delayed.
new text end

new text begin (f) An application for approval must be made in writing and must contain certification
that the applicant meets any conditions required by a private entity under this subdivision.
An application must include a copy of the interconnection application submitted to the
applicable electric utility.
new text end

new text begin (g) A private entity shall approve or deny an application in writing. If an application is
not denied in writing within 60 days from the date of receipt of the application, the application
is deemed approved unless the delay is the result of a reasonable request for additional
information. If a private entity receives an incomplete application that it determines prevents
it from reaching a decision to approve or disapprove the application, a new 60-day limit
begins only if the private entity sends written notice to the applicant, within 15 business
days of receiving the incomplete application, informing the applicant what additional
information is required.
new text end

Sec. 7.

Minnesota Statutes 2020, section 515.07, is amended to read:

515.07 COMPLIANCE WITH COVENANTS, BYLAWS, AND RULES.

Each apartment owner shall comply strictly with the bylaws and with the administrative
rules adopted pursuant thereto, as either of the same may be lawfully amended from time
to time, and with the covenants, conditions, and restrictions set forth in the declaration or
in the owner's deed to the apartment. Failure to comply with any of the same shall be ground
for an action to recover sums due, for damages or injunctive relief or both maintainable by
the manager or board of directors on behalf of the association of apartment owners or, in a
proper case, by an aggrieved apartment owner. This chapter is subject to deleted text begin section deleted text end new text begin sections new text end
500.215 new text begin and 500.216 new text end .

Sec. 8.

Minnesota Statutes 2020, section 515B.2-103, is amended to read:

515B.2-103 CONSTRUCTION AND VALIDITY OF DECLARATION AND
BYLAWS.

(a) All provisions of the declaration and bylaws are severable.

(b) The rule against perpetuities may not be applied to defeat any provision of the
declaration or this chapter, or any instrument executed pursuant to the declaration or this
chapter.

(c) In the event of a conflict between the provisions of the declaration and the bylaws,
the declaration prevails except to the extent that the declaration is inconsistent with this
chapter.

(d) The declaration and bylaws must comply with deleted text begin section deleted text end new text begin sections new text end 500.215 new text begin and 500.216 new text end .

Sec. 9.

Minnesota Statutes 2020, section 515B.3-102, is amended to read:

515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.

(a) Except as provided in subsections (b), (c), (d), and (e), and subject to the provisions
of the declaration or bylaws, the association shall have the power to:

(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
incorporation, bylaws and declaration, as follows: (i) regulating the use of the common
elements; (ii) regulating the use of the units, and conduct of unit occupants, which may
jeopardize the health, safety or welfare of other occupants, which involves noise or other
disturbing activity, or which may damage the common elements or other units; (iii) regulating
or prohibiting animals; (iv) regulating changes in the appearance of the common elements
and conduct which may damage the common interest community; (v) regulating the exterior
appearance of the common interest community, including, for example, balconies and patios,
window treatments, and signs and other displays, regardless of whether inside a unit; (vi)
implementing the articles of incorporation, declaration and bylaws, and exercising the
powers granted by this section; and (vii) otherwise facilitating the operation of the common
interest community;

(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
collect assessments for common expenses from unit owners;

(3) hire and discharge managing agents and other employees, agents, and independent
contractors;

(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
own name on behalf of itself or two or more unit owners on matters affecting the common
elements or other matters affecting the common interest community or, (ii) with the consent
of the owners of the affected units on matters affecting only those units;

(5) make contracts and incur liabilities;

(6) regulate the use, maintenance, repair, replacement, and modification of the common
elements and the units;

(7) cause improvements to be made as a part of the common elements, and, in the case
of a cooperative, the units;

(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
real estate or personal property, but (i) common elements in a condominium or planned
community may be conveyed or subjected to a security interest only pursuant to section
515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
may be subjected to a security interest, only pursuant to section 515B.3-112;

(9) grant or amend easements for public utilities, public rights-of-way or other public
purposes, and cable television or other communications, through, over or under the common
elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
by the declaration; and, subject to approval by a vote of unit owners other than declarant
or its affiliates, grant or amend other easements, leases, and licenses through, over or under
the common elements;

(10) impose and receive any payments, fees, or charges for the use, rental, or operation
of the common elements, other than limited common elements, and for services provided
to unit owners;

(11) impose interest and late charges for late payment of assessments and, after notice
and an opportunity to be heard before the board or a committee appointed by it, levy
reasonable fines for violations of the declaration, bylaws, and rules and regulations of the
association;

(12) impose reasonable charges for the review, preparation and recordation of
amendments to the declaration, resale certificates required by section 515B.4-107, statements
of unpaid assessments, or furnishing copies of association records;

(13) provide for the indemnification of its officers and directors, and maintain directors'
and officers' liability insurance;

(14) provide for reasonable procedures governing the conduct of meetings and election
of directors;

(15) exercise any other powers conferred by law, or by the declaration, articles of
incorporation or bylaws; and

(16) exercise any other powers necessary and proper for the governance and operation
of the association.

(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
on the power of the association to deal with the declarant which are more restrictive than
the limitations imposed on the power of the association to deal with other persons.

(c) Notwithstanding subsection (a), powers exercised under this section must comply
with deleted text begin section deleted text end new text begin sections new text end 500.215 new text begin and 500.216 new text end .

(d) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
association, before instituting litigation or arbitration involving construction defect claims
against a development party, shall:

(1) mail or deliver written notice of the anticipated commencement of the action to each
unit owner at the addresses, if any, established for notices to owners in the declaration and,
if the declaration does not state how notices are to be given to owners, to the owner's last
known address. The notice shall specify the nature of the construction defect claims to be
alleged, the relief sought, and the manner in which the association proposes to fund the cost
of pursuing the construction defect claims; and

(2) obtain the approval of owners of units to which a majority of the total votes in the
association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
are excluded. The association may obtain the required approval by a vote at an annual or
special meeting of the members or, if authorized by the statute under which the association
is created and taken in compliance with that statute, by a vote of the members taken by
electronic means or mailed ballots. If the association holds a meeting and voting by electronic
means or mailed ballots is authorized by that statute, the association shall also provide for
voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
or mailed ballots, except that the votes must be used in combination with the vote taken at
a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
for purposes of determining whether a quorum was present. Proxies may not be used for a
vote taken under this paragraph unless the unit owner executes the proxy after receipt of
the notice required under subsection (d)(1) and the proxy expressly references this notice.

(e) The association may intervene in a litigation or arbitration involving a construction
defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
claim before complying with subsections (d)(1) and (d)(2) but the association's complaint
in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
prejudice unless the association has complied with the requirements of subsection (d) within
90 days of the association's commencement of the complaint in an intervention or the
assertion of the counterclaim, crossclaim, or third-party claim.

Sec. 10. new text begin PHOTOVOLTAIC DEMAND CREDIT RIDER.
new text end

new text begin By October 1, 2021, an investor-owned utility that has not already done so must submit
to the Public Utilities Commission a photovoltaic demand credit rider that reimburses all
demand metered customers with solar photovoltaic systems greater than 40 kilowatts
alternating current for the demand charge overbilling that occurs. The utility may submit
to the commission multiple options to calculate reimbursement for demand charge overbilling.
At least one submission must use a capacity value stack methodology. The commission is
prohibited from approving a photovoltaic demand credit rider unless the rider allows
stand-alone photovoltaic systems and photovoltaic systems coupled with storage. The
commission must approve the photovoltaic demand credit rider by June 30, 2022.
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. 11. new text begin SITING SOLAR ENERGY GENERATING SYSTEMS ON PRIME
FARMLAND.
new text end

new text begin (a) The Public Utilities Commission must amend Minnesota Rules, section 7850.4400,
subpart 4, to allow the siting of a solar energy generating system on prime farmland that
meets any of the following conditions:
new text end

new text begin (1) the site has been identified as a sensitive groundwater area by the Department of
Natural Resources under Minnesota Statutes, section 103H.101;
new text end

new text begin (2) the owner of the solar energy generating system has entered into an agreement with
the Board of Soil and Water Resources committing the owner to comply with the provisions
of Minnesota Statutes, section 216B.1642, by establishing on the site perennial vegetation
and foraging habitat beneficial to game birds, songbirds, and pollinators, and to report to
the board every three years on progress made toward establishing beneficial habitat; or
new text end

new text begin (3) the solar energy generating system is colocated with and does not disrupt the operation
of agricultural uses, including but not limited to grazing and harvesting forage.
new text end

new text begin (b) The commission shall comply with Minnesota Statutes, section 14.389, in adopting
rules under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12. new text begin DEPARTMENT OF ADMINISTRATION; MASTER SOLAR CONTRACT
PROGRAM.
new text end

new text begin The Department of Administration shall not extend the term of its current on-site solar
photovoltaic master contract, but shall instead, no later than February 1, 2022, announce
an open request for proposals for a new statewide on-site solar photovoltaic master contract
to allow additional applicants to submit proposals to enable their participation in the state's
solar master contract program.
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. 13. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Solar on schools; non-Xcel service territory. new text end

new text begin $1,737,000 in fiscal year
2022 is appropriated from the general fund to the commissioner of commerce to provide
financial assistance to schools to purchase and install solar energy generating systems under
Minnesota Statutes, section 216C.375. This appropriation remains available until expended
and does not cancel to the general fund. This appropriation must be expended on schools
located outside the electric service territory of the public utility that is subject to Minnesota
Statutes, section 116C.779. The base in fiscal year 2024 is $388,000.
new text end

new text begin Subd. 2. new text end

new text begin Solar on schools; Xcel service territory. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $5,000,000 in fiscal year 2022 and $5,000,000
in fiscal year 2023 are appropriated from the renewable development account established
in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to provide financial assistance to schools to purchase and install solar energy generating
systems under Minnesota Statutes, section 216C.376. This appropriation remains available
until expended and does not cancel to the renewable development account. This appropriation
must be expended on schools located within the electric service territory of the public utility
that is subject to Minnesota Statutes, section 116C.779. These are onetime appropriations.
new text end

new text begin Subd. 3. new text end

new text begin Solar devices; state parks. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the commissioner of natural
resources to install solar photovoltaic devices in state parks located within the retail electric
service area of a public utility subject to Minnesota Statutes, section 116C.779, subdivision
1. This appropriation is available until June 30, 2023. This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Solar devices; state buildings. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $4,000,000 in fiscal year 2022 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the commissioner of
administration to install solar photovoltaic devices on state-owned buildings that are located
within the retail electric service area of the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph
(j), $59,000 in fiscal year 2022 and $38,000 in fiscal year 2023 are appropriated from the
renewable development account to the commissioner of administration for costs to administer
the installation of solar photovoltaic devices on state-owned buildings that are located within
the retail electric service area of the public utility subject to Minnesota Statutes, section
116C.779, subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Solar on prime farmland. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $14,000 in fiscal year 2022 and $14,000 in fiscal
year 2023 are appropriated from the renewable development account established under
Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for
transfer to the Board of Water and Soil Resources for activities associated with installing
solar energy generating systems on prime farmland, as described in section 6.
new text end

new text begin (b) $46,000 in fiscal year 2022 is appropriated from the general fund to the Public
Utilities Commission for activities associated with installing solar energy systems on prime
farmland, as described in section 6. This is a onetime appropriation.
new text end

new text begin Subd. 6. new text end

new text begin Mountain Iron solar plant expansion. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $5,500,000 in fiscal year 2021 is appropriated
from the renewable development account established in Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of employment and economic development
for a grant to the Mountain Iron Economic Development Authority to expand a city-owned
solar module manufacturing plant building in the city's Renewable Energy Industrial Park.
This is a onetime appropriation. Any unexpended funds remaining as of June 30, 2022,
must be returned to the renewable development account under Minnesota Statutes, section
116C.779, subdivision 1.
new text end

new text begin Subd. 7. new text end

new text begin Northfield distribution system upgrades. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C. 779, subdivision 1, paragraph (j), $550,000 in fiscal year 2022 is appropriated
from the renewable development account established in Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of commerce for transfer to the public utility
that is subject to Minnesota Statutes, section 116C.779, subdivision 1, to upgrade the utility's
distribution system in and bordering on the city of Northfield to enable the interconnection
of additional customer-sited solar deployment. No later than October 15, 2021, the public
utility that is to receive the transferred funds must submit a report to the commissioner of
commerce, the Public Utilities Commission, and to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over energy policy
and finance describing how the utility proposes to utilize the transfer made under this
subdivision, including the specific locations identified for additional equipment installation,
the nature of the equipment, and the amount of incremental capacity that results from the
installation of the equipment. The commissioner must not transfer the funds appropriated
under this subdivision to the public utility until the commissioner and the Public Utilities
Commission have reviewed and approved the report.
new text end

ARTICLE 6

MISCELLANEOUS

Section 1.

Minnesota Statutes 2020, section 115B.40, subdivision 1, is amended to read:

Subdivision 1.

Response to releases.

The commissioner may take any environmental
response action, including emergency action, related to a release or threatened release of a
hazardous substance, pollutant or contaminant, or decomposition gas from a qualified facility
that the commissioner deems reasonable and necessary to protect the public health or welfare
or the environment under the standards required in sections 115B.01 to 115B.20. The
commissioner may undertake studies necessary to determine reasonable and necessary
environmental response actions at individual facilities. The commissioner may develop
general work plans for environmental studies, presumptive remedies, and generic remedial
designs for facilities with similar characteristics new text begin , as well as implement reuse and
redevelopment strategies new text end . Prior to selecting environmental response actions for a facility,
the commissioner shall hold at least one public informational meeting near the facility and
provide for receiving and responding to comments related to the selection. The commissioner
shall design, implement, and provide oversight consistent with the actions selected under
this subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2020, section 116C.779, subdivision 1, is amended to read:

Subdivision 1.

Renewable development account.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

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

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

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

new text begin (1) new text end potential benefit to Minnesota citizens and businesses and the utility's ratepayers deleted text begin . deleted text end new text begin ;
and
new text end

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

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

(n) The commission shall present its recommended appropriations from the account to
the senate and house of representatives committees with jurisdiction over energy policy and
finance annually by February 15 new text begin following any year in which the commission has acted on
recommendations submitted by the advisory group and the public utility new text end . Expenditures from
the account must be appropriated by law. In enacting appropriations from the account, the
legislature:

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

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

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

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

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

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

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

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

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

Sec. 3.

Minnesota Statutes 2020, section 216B.096, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The terms used in this section have the meanings given them
in this subdivision.

(b) "Cold weather period" means the period from October deleted text begin 15 deleted text end new text begin 1 new text end through April deleted text begin 15 deleted text end new text begin 30 new text end of
the following year.

(c) "Customer" means a residential customer of a utility.

(d) "Disconnection" means the involuntary loss of utility heating service as a result of
a physical act by a utility to discontinue service. Disconnection includes installation of a
service or load limiter or any device that limits or interrupts utility service in any way.

(e) "Household income" means the combined income, as defined in section 290A.03,
subdivision 3, of all residents of the customer's household, computed on an annual basis.
Household income does not include any amount received for energy assistance.

(f) "Reasonably timely payment" means payment within five working days of agreed-upon
due dates.

(g) "Reconnection" means the restoration of utility heating service after it has been
disconnected.

(h) "Summary of rights and responsibilities" means a commission-approved notice that
contains, at a minimum, the following:

(1) an explanation of the provisions of subdivision 5;

(2) an explanation of no-cost and low-cost methods to reduce the consumption of energy;

(3) a third-party notice;

(4) ways to avoid disconnection;

(5) information regarding payment agreements;

(6) an explanation of the customer's right to appeal a determination of income by the
utility and the right to appeal if the utility and the customer cannot arrive at a mutually
acceptable payment agreement; and

(7) a list of names and telephone numbers for county and local energy assistance and
weatherization providers in each county served by the utility.

(i) "Third-party notice" means a commission-approved notice containing, at a minimum,
the following information:

(1) a statement that the utility will send a copy of any future notice of proposed
disconnection of utility heating service to a third party designated by the residential customer;

(2) instructions on how to request this service; and

(3) a statement that the residential customer should contact the person the customer
intends to designate as the third-party contact before providing the utility with the party's
name.

(j) "Utility" means a public utility as defined in section 216B.02, and a cooperative
electric association electing to be a public utility under section 216B.026. Utility also means
a municipally owned gas or electric utility for nonresident consumers of the municipally
owned utility and a cooperative electric association when a complaint in connection with
utility heating service during the cold weather period is filed under section 216B.17,
subdivision 6 or 6a.

(k) "Utility heating service" means natural gas or electricity used as a primary heating
source, including electricity service necessary to operate gas heating equipment, for the
customer's primary residence.

(l) "Working days" means Mondays through Fridays, excluding legal holidays. The day
of receipt of a personally served notice and the day of mailing of a notice shall not be counted
in calculating working days.

Sec. 4.

Minnesota Statutes 2020, section 216B.096, subdivision 3, is amended to read:

Subd. 3.

Utility obligations before cold weather period.

Each year, between deleted text begin September
1 deleted text end new text begin August 15 new text end and October deleted text begin 15 deleted text end new text begin 1 new text end , each utility must provide all customers, personally, by first
class mail, or electronically for those requesting electronic billing, a summary of rights and
responsibilities. The summary must also be provided to all new residential customers when
service is initiated.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2020, section 216B.097, subdivision 1, is amended to read:

Subdivision 1.

Application; notice to residential customer.

(a) A municipal utility or
a cooperative electric association must not disconnect and must reconnect the utility service
of a residential customer during the period between October deleted text begin 15 deleted text end new text begin 1 new text end and April deleted text begin 15 deleted text end new text begin 30 new text end if the
disconnection affects the primary heat source for the residential unit and all of the following
conditions are met:

(1) The household income of the customer is at or below 50 percent of the state median
household income. A municipal utility or cooperative electric association utility may (i)
verify income on forms it provides or (ii) obtain verification of income from the local energy
assistance provider. A customer is deemed to meet the income requirements of this clause
if the customer receives any form of public assistance, including energy assistance, that
uses an income eligibility threshold set at or below 50 percent of the state median household
income.

(2) A customer enters into and makes reasonably timely payments under a payment
agreement that considers the financial resources of the household.

(3) A customer receives referrals to energy assistance, weatherization, conservation, or
other programs likely to reduce the customer's energy bills.

(b) A municipal utility or a cooperative electric association must, between August 15
and October deleted text begin 15 deleted text end new text begin 1 new text end each year, notify all residential customers of the provisions of this section.

Sec. 6.

Minnesota Statutes 2020, section 216B.097, subdivision 2, is amended to read:

Subd. 2.

Notice to residential customer facing disconnection.

Before disconnecting
service to a residential customer during the period between October deleted text begin 15 deleted text end new text begin 1 new text end and April deleted text begin 15 deleted text end new text begin 30 new text end ,
a municipal utility or cooperative electric association must provide the following information
to a customer:

(1) a notice of proposed disconnection;

(2) a statement explaining the customer's rights and responsibilities;

(3) a list of local energy assistance providers;

(4) forms on which to declare inability to pay; and

(5) a statement explaining available time payment plans and other opportunities to secure
continued utility service.

Sec. 7.

Minnesota Statutes 2020, section 216B.097, subdivision 3, is amended to read:

Subd. 3.

Restrictions if disconnection necessary.

(a) If a residential customer must be
involuntarily disconnected between October deleted text begin 15 deleted text end new text begin 1 new text end and April deleted text begin 15 deleted text end new text begin 30 new text end for failure to comply with
subdivision 1, the disconnection must not occur:

(1) on a Friday, unless the customer declines to enter into a payment agreement offered
that day in person or via personal contact by telephone by a municipal utility or cooperative
electric association;

(2) on a weekend, holiday, or the day before a holiday;

(3) when utility offices are closed; or

(4) after the close of business on a day when disconnection is permitted, unless a field
representative of a municipal utility or cooperative electric association who is authorized
to enter into a payment agreement, accept payment, and continue service, offers a payment
agreement to the customer.

Further, the disconnection must not occur until at least 20 days after the notice required
in subdivision 2 has been mailed to the customer or 15 days after the notice has been
personally delivered to the customer.

(b) If a customer does not respond to a disconnection notice, the customer must not be
disconnected until the utility investigates whether the residential unit is actually occupied.
If the unit is found to be occupied, the utility must immediately inform the occupant of the
provisions of this section. If the unit is unoccupied, the utility must give seven days' written
notice of the proposed disconnection to the local energy assistance provider before making
a disconnection.

(c) If, prior to disconnection, a customer appeals a notice of involuntary disconnection,
as provided by the utility's established appeal procedure, the utility must not disconnect
until the appeal is resolved.

Sec. 8.

Minnesota Statutes 2020, section 216B.164, subdivision 4, is amended to read:

Subd. 4.

Purchases; wheeling; costs.

(a) Except as otherwise provided in paragraph
(c), this subdivision shall apply to all qualifying facilities having 40-kilowatt capacity or
more as well as qualifying facilities as defined in subdivision 3 and net metered facilities
under subdivision 3a, if interconnected to a cooperative electric association or municipal
utility, or 1,000-kilowatt capacity or more if interconnected to a public utility, which elect
to be governed by its provisions.

(b) The utility to which the qualifying facility is interconnected shall purchase all energy
and capacity made available by the qualifying facility. The qualifying facility shall be paid
the utility's full avoided capacity and energy costs as negotiated by the parties, as set by the
commission, or as determined through competitive bidding approved by the commission.
deleted text begin The full avoided capacity and energy costs to be paid a qualifying facility that generates
electric power by means of a renewable energy source are the utility's least cost renewable
energy facility or the bid of a competing supplier of a least cost renewable energy facility,
whichever is lower, unless the commission's resource plan order, under section 216B.2422,
subdivision 2, provides that the use of a renewable resource to meet the identified capacity
need is not in the public interest.
deleted text end

(c) For all qualifying facilities having 30-kilowatt capacity or more, the utility shall, at
the qualifying facility's or the utility's request, provide wheeling or exchange agreements
wherever practicable to sell the qualifying facility's output to any other Minnesota utility
having generation expansion anticipated or planned for the ensuing ten years. The
commission shall establish the methods and procedures to insure that except for reasonable
wheeling charges and line losses, the qualifying facility receives the full avoided energy
and capacity costs of the utility ultimately receiving the output.

(d) The commission shall set rates for electricity generated by renewable energy.

Sec. 9.

Minnesota Statutes 2020, section 216B.2424, is amended by adding a subdivision
to read:

new text begin Subd. 5b. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of subdivision 5c, the following terms have
the meanings given.
new text end

new text begin (b) "Agreement period" means the period beginning January 1, 2023, and ending
December 31, 2024.
new text end

new text begin (c) "Ash" means all species of the genus Fraxinus.
new text end

new text begin (d) "Cogeneration facility" means the St. Paul district heating and cooling system
cogeneration facility that uses waste wood as the facility's primary fuel source, provides
thermal energy to St. Paul, and sells electricity to a public utility through a power purchase
agreement approved by the Public Utilities Commission.
new text end

new text begin (e) "Department" means the Department of Agriculture.
new text end

new text begin (f) "Emerald ash borer" means the insect known as emerald ash borer, Agrilus planipennis
Fairmaire, in any stage of development.
new text end

new text begin (g) "Renewable energy technology" has the meaning given to "eligible energy technology"
in section 216B.1691, subdivision 1.
new text end

new text begin (h) "St. Paul district heating and cooling system" means a system of boilers, distribution
pipes, and other equipment that provides energy for heating and cooling in St. Paul, and
includes the cogeneration facility.
new text end

new text begin (i) "Waste wood from ash trees" means ash logs and lumber, ash tree waste, and ash
chips and mulch.
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. 10.

Minnesota Statutes 2020, section 216B.2424, is amended by adding a subdivision
to read:

new text begin Subd. 5c. new text end

new text begin New power purchase agreement. new text end

new text begin (a) No later than August 1, 2021, a public
utility subject to subdivision 5 and the cogeneration facility may file a proposal with the
commission to enter into a power purchase agreement that governs the public utility's
purchase of electricity generated by the cogeneration facility. The power purchase agreement
may extend no later than December 31, 2024, and must not be extended beyond that date
except as provided in paragraph (f).
new text end

new text begin (b) The commission is prohibited from approving a new power purchase agreement filed
under this subdivision that does not meet all of the following conditions:
new text end

new text begin (1) the cogeneration facility agrees that any waste wood from ash trees removed from
Minnesota counties that have been designated as quarantined areas in Section IV of the
Minnesota State Formal Quarantine for Emerald Ash Borer, issued by the commissioner of
agriculture under section 18G.06, effective November 14, 2019, as amended, for utilization
as biomass fuel by the cogeneration facility must be accompanied by evidence:
new text end

new text begin (i) demonstrating that the transport of biomass fuel from processed waste wood from
ash trees to the cogeneration facility complies with the department's regulatory requirements
under the Minnesota State Formal Quarantine for Emerald Ash Borer, which may consist
of:
new text end

new text begin (A) a certificate authorized or prepared by the commissioner of agriculture or an employee
of the Animal and Plant Health Inspection Service of the United States Department of
Agriculture verifying compliance; or
new text end

new text begin (B) shipping documents demonstrating compliance; or
new text end

new text begin (ii) certifying that the waste wood from ash trees has been chipped to one inch or less
in two dimensions, and was chipped within the county from which the ash trees were
originally removed;
new text end

new text begin (2) the price per megawatt hour of electricity paid by the public utility demonstrates
significant savings compared to the existing power purchase agreement, with a price that
does not exceed $98 per megawatt hour;
new text end

new text begin (3) the proposal includes a proposal to the commission for one or more electrification
projects that result in the St. Paul district heating and cooling system being powered by
electricity generated from renewable energy technologies. The plan must evaluate
electrification at three or more levels from ten to 100 percent, including 100 percent of the
energy used by the St. Paul district heating and cooling system to be implemented by
December 31, 2027. The proposal may also evaluate alternative dates for implementation.
For each level of electrification analyzed, the proposal must contain:
new text end

new text begin (i) a description of the alternative electrification technologies evaluated and whose
implementation is proposed as part of the electrification project;
new text end

new text begin (ii) an estimate of the cost of the electrification project to the public utility, the impact
on the monthly energy bills of the public utility's Minnesota customers, and the impact on
the monthly energy bills of St. Paul district heating and cooling system customers;
new text end

new text begin (iii) an estimate of the reduction in greenhouse gas emissions resulting from the
electrification project, including greenhouse gas emissions associated with the transportation
of waste wood;
new text end

new text begin (iv) estimated impacts on the operations of the St. Paul district heating and cooling
system; and
new text end

new text begin (v) a timeline for the electrification project; and
new text end

new text begin (4) the power purchase agreement provides a net benefit to the utility customers or the
state.
new text end

new text begin (c) The commission may approve, or approve as modified, a proposed electrification
project that meets the requirements of this subdivision if it finds the electrification project
is in the public interest, or the commission may reject the project if it finds that the project
is not in the public interest. When determining whether an electrification project is in the
public interest, the commission may consider the effects of the electrification project on air
emissions from the St. Paul district heating and cooling system and how the emissions
impact the environment and residents of affected neighborhoods.
new text end

new text begin (d) During the agreement period, the cogeneration facility must attempt to obtain funding
to reduce the cost of generating electricity and enable the facility to continue to operate
beyond the agreement period to address the removal of ash trees, as described in paragraph
(b), clause (1), without any subsidy or contribution from any power purchase agreement
after December 31, 2024. The cogeneration facility must submit periodic reports to the
commission regarding the efforts made under this paragraph.
new text end

new text begin (e) Upon approval of the new power purchase agreement, the commission must require
periodic reporting regarding progress toward development of a proposal for an electrification
project.
new text end

new text begin (f) The commission is prohibited from approving either an extension of an existing
power purchase agreement or a new power purchase agreement that operates after the
agreement period unless it approves an electrification project. Nothing in this section requires
any utility to enter into a power purchase agreement with the cogeneration facility after
December 31, 2024.
new text end

new text begin (g) Upon approval of an electrification project, the commission must require periodic
reporting regarding the progress toward implementation of the electrification project.
new text end

new text begin (h) If the commission approves the proposal submitted under paragraph (b), clause (3),
the commission may allow the public utility to recover prudently incurred costs net of
revenues resulting from the electrification project through an automatic cost recovery
mechanism that allows for cost recovery outside of a general rate case. The cost recovery
mechanism approved by the commission must:
new text end

new text begin (1) allow a reasonable return on the capital invested in the electrification project by the
public utility, as determined by the commission; and
new text end

new text begin (2) recover costs only from the public utility's Minnesota electric service customers.
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. 11.

Minnesota Statutes 2020, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) This section does not apply to:

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

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

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

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

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

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

(7) a new text begin large new text end wind energy conversion system new text begin , as defined in section 216F.01, subdivision
2, new text end or new text begin a new text end solar deleted text begin electric deleted text end new text begin energy new text end generation deleted text begin facility deleted text end new text begin system, as defined in section 216E.01,
subdivision 9a, new text end if the system deleted text begin or facility deleted text end is owned and operated by an independent power
producer and the electric output of the system deleted text begin or facility deleted text end new text begin :
new text end

new text begin (i) new text end is not sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator; or

new text begin (ii) is sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator, provided that the system
represents solar or wind capacity that the entity purchasing the system's electric output was
ordered by the commission to develop in the entity's most recent integrated resource plan
approved under section 216B.2422; or
new text end

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating large energy facility, as defined in section 216B.2421,
subdivision 2, engaging in a repowering project that:

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

(ii) will result in the facility exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increase.

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

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

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

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

Sec. 12.

Minnesota Statutes 2020, section 216B.62, subdivision 3b, is amended to read:

Subd. 3b.

Assessment for department regional and national duties.

In addition to
other assessments in subdivision 3, the department may assess up to $500,000 per fiscal
year for performing its duties under section 216A.07, subdivision 3a. The amount in this
subdivision shall be assessed to energy utilities in proportion to their respective gross
operating revenues from retail sales of gas or electric service within the state during the last
calendar year and shall be deposited into an account in the special revenue fund and is
appropriated to the commissioner of commerce for the purposes of section 216A.07,
subdivision 3a. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative electric
associations, and municipal power agencies providing natural gas or electric service in the
state. deleted text begin This subdivision expires June 30, 2021.
deleted 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. 13.

new text begin [216B.631] COMPENSATION FOR PARTICIPANTS IN PROCEEDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Participant" means a person who meets the requirements of subdivision 2 and who:
new text end

new text begin (1) files comments or appears in a commission proceeding, other than public hearings,
concerning one or more public utilities; or
new text end

new text begin (2) is permitted by the commission to intervene in a commission proceeding concerning
one or more public utilities; and
new text end

new text begin (3) files a request for compensation under this section.
new text end

new text begin (c) "Proceeding" means an undertaking of the commission in which it seeks to resolve
an issue affecting one or more public utilities and which results in a commission order.
new text end

new text begin (d) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Participants; eligibility. new text end

new text begin Any of the following participants is eligible to receive
compensation under this section:
new text end

new text begin (1) a nonprofit organization that is:
new text end

new text begin (i) exempt from taxation under section 501(c)(3) of the United States Internal Revenue
Code;
new text end

new text begin (ii) incorporated in Minnesota; and
new text end

new text begin (iii) governed under chapter 317A;
new text end

new text begin (2) a Tribal government of a federally recognized Indian Tribe that is located in
Minnesota; or
new text end

new text begin (3) a Minnesota resident, except that an individual who owns a for-profit business that
has earned revenue from a Minnesota utility in the past two years is not eligible for
compensation.
new text end

new text begin Subd. 3. new text end

new text begin Compensation; conditions. new text end

new text begin (a) The commission may order a public utility to
compensate all or part of an eligible participant's reasonable costs of participation in a
proceeding that comes before the commission when the commission finds that the participant
has materially assisted the commission's deliberation.
new text end

new text begin (b) In determining whether a participant has materially assisted the commission's
deliberation, the commission must find that:
new text end

new text begin (1) the participant made a unique contribution to the record and represented an interest
that would not otherwise have been adequately represented;
new text end

new text begin (2) the evidence or arguments presented or the positions taken by the participant were
an important factor in producing a fair decision;
new text end

new text begin (3) the participant's position promoted a public purpose or policy;
new text end

new text begin (4) the evidence presented, arguments made, issues raised, or positions taken by the
participant would not otherwise have been a part of the record;
new text end

new text begin (5) the participant was active in any stakeholder process made part of the proceeding;
and
new text end

new text begin (6) the proceeding resulted in a commission order that adopted, in whole or in part, a
position advocated by the participant.
new text end

new text begin (c) In reviewing a compensation request, the commission must consider whether the
costs presented in the participant's claim are reasonable.
new text end

new text begin Subd. 4. new text end

new text begin Compensation; amount. new text end

new text begin (a) Compensation must not exceed $50,000 for a
single participant in any proceeding, except that:
new text end

new text begin (1) if a proceeding extends longer than 12 months, a participant may request compensation
of up to $50,000 for costs incurred in each calendar year; and
new text end

new text begin (2) in a general rate case proceeding under section 216B.16 or an integrated resource
plan proceeding under section 216B.2422, the maximum single participant compensation
must not exceed $75,000.
new text end

new text begin (b) A single participant must not be granted more than $200,000 under this section in a
single calendar year.
new text end

new text begin (c) Compensation requests from joint participants must be presented as a single request.
new text end

new text begin (d) Notwithstanding paragraphs (a) and (b), the commission must not, in any calendar
year, require a single public utility to pay aggregate compensation under this section that
exceeds the following amounts:
new text end

new text begin (1) $100,000, for a public utility with up to $300,000,000 annual gross operating revenue
in Minnesota;
new text end

new text begin (2) $275,000, for a public utility with more than $300,000,000 but less than $900,000,000
annual gross operating revenue in Minnesota;
new text end

new text begin (3) $375,000, for a public utility with more than $900,000,000 but less than
$2,000,000,000 annual gross operating revenue in Minnesota; and
new text end

new text begin (4) $1,250,000, for a public utility with more than $2,000,000,000 annual gross operating
revenue in Minnesota.
new text end

new text begin (e) When requests for compensation from any public utility approach the limits established
in paragraph (d), the commission may prioritize requests from participants that received
less than $150,000 in total compensation during the previous two years.
new text end

new text begin Subd. 5. new text end

new text begin Compensation; process. new text end

new text begin (a) A participant seeking compensation must file a
request and an affidavit of service with the commission, and serve a copy of the request on
each party to the proceeding. The request must be filed no more than 30 days after the later
of: (1) the expiration of the period within which a petition for rehearing, amendment,
vacation, reconsideration, or reargument must be filed; or (2) the date the commission issues
an order following rehearing, amendment, vacation, reconsideration, or reargument.
new text end

new text begin (b) A compensation request must include:
new text end

new text begin (1) the name and address of the participant or nonprofit organization the participant is
representing;
new text end

new text begin (2) evidence of the organization's nonprofit, tax-exempt status;
new text end

new text begin (3) the name and docket number of the proceeding for which compensation is requested;
new text end

new text begin (4) a list of actual annual revenue secured and expenses incurred for participation in
commission proceedings separately for the preceding and current year, and projected revenue,
revenue sources, and expenses for participation in commission proceedings for the current
year;
new text end

new text begin (5) amounts of compensation awarded to the participant under this section during the
current year and any pending requests for compensation, by docket;
new text end

new text begin (6) an itemization of the participant's costs, including hours worked and associated hourly
rates for each individual contributing to the participation, not including overhead costs,
participant revenues for the proceeding, and the total compensation request; and
new text end

new text begin (7) a narrative describing the unique contribution made to the proceeding by the
participant.
new text end

new text begin (c) A participant shall comply with reasonable requests for information by the commission
and other participants. A participant shall reply to information requests within ten calendar
days of the date the request is received, unless this would place an extreme hardship upon
the replying participant. The replying participant must provide a copy of the information
to any other participant or interested person upon request. Disputes regarding information
requests may be resolved by the commission.
new text end

new text begin (d) Within 30 days after service of the request for compensation, a party may file a
response, together with an affidavit of service, with the commission. A copy of the response
must be served on the requesting participant and all other parties to the proceeding.
new text end

new text begin (e) Within 15 days after the response is filed, the participant may file a reply with the
commission. A copy of the reply and an affidavit of service must be served on all other
parties to the proceeding.
new text end

new text begin (f) If additional costs are incurred by a participant as a result of additional proceedings
following the commission's initial order, the participant may file an amended request within
30 days after the commission issues an amended order. Paragraphs (b) to (e) apply to an
amended request.
new text end

new text begin (g) The commission must issue a decision on participant compensation within 60 days
of the date a request for compensation is filed by a participant.
new text end

new text begin (h) The commission may extend the deadlines in paragraphs (d), (e), and (g) for up to
60 days upon the request of a participant or on the commission's own initiative, if applicable.
new text end

new text begin (i) A participant may request reconsideration of the commission's compensation decision
within 30 days of the decision date.
new text end

new text begin Subd. 6. new text end

new text begin Compensation; orders. new text end

new text begin (a) If the commission issues an order requiring payment
of participant compensation, the public utility that was the subject of the proceeding must
pay the compensation to the participant and file proof of payment with the commission
within 30 days after the later of: (1) the expiration of the period within which a petition for
reconsideration of the commission's compensation decision must be filed; or (2) the date
the commission issues an order following reconsideration of the commission's order on
participant compensation.
new text end

new text begin (b) If the commission issues an order requiring payment of participant compensation in
a proceeding involving multiple public utilities, the commission shall apportion costs among
the public utilities in proportion to each public utility's annual revenue.
new text end

new text begin (c) The commission may issue orders necessary to allow a public utility to recover the
costs of participant compensation on a timely basis.
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. 14.

new text begin [216C.51] UTILITY DIVERSITY REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin It is the policy of this state to encourage each utility that serves
Minnesota residents to focus on and improve the diversity of the utility's workforce and
suppliers.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Certification" means official recognition by a governmental unit that a business is
a preferred vendor as a result of the characteristics of the business owner or owners or the
location of the business.
new text end

new text begin (c) "Utility" has the meaning given in section 216C.06, subdivision 18.
new text end

new text begin Subd. 3. new text end

new text begin Annual report. new text end

new text begin (a) Beginning March 15, 2022, and each March 15 thereafter,
each utility authorized to do business in Minnesota must file an annual diversity report to
the commissioner on:
new text end

new text begin (1) the utility's goals and efforts to increase diversity in the workplace, including current
workforce representation numbers and percentages; and
new text end

new text begin (2) all procurement goals and actual spending for female-owned, minority-owned,
veteran-owned, and small business enterprises during the previous calendar year.
new text end

new text begin (b) The goals under paragraph (a), clause (2), must be expressed as a percentage of the
total work performed by the utility submitting the report. The actual spending for
female-owned, minority-owned, veteran-owned, and small business enterprises must also
be expressed as a percentage of the total work performed by the utility submitting the report.
new text end

new text begin Subd. 4. new text end

new text begin Report elements. new text end

new text begin Each utility required to report under this section must include
the following in the annual report:
new text end

new text begin (1) an explanation of the plan to increase diversity in the utility's workforce and suppliers
during the next year;
new text end

new text begin (2) an explanation of the plan to increase the goals;
new text end

new text begin (3) an explanation of the challenges faced to increase workforce and supplier diversity,
including suggestions regarding actions the department could take to help identify potential
employees and vendors;
new text end

new text begin (4) a list of the certifications the company recognizes;
new text end

new text begin (5) a point of contact for a potential employee or vendor that wishes to work for or do
business with the utility; and
new text end

new text begin (6) a list of successful actions taken to increase workforce and supplier diversity, in
order to encourage other companies to emulate best practices.
new text end

new text begin Subd. 5. new text end

new text begin State data. new text end

new text begin Each annual report must include as much state-specific data as
possible. If the submitting utility does not submit state-specific data, the utility must include
any relevant national data the utility possesses, explain why the utility could not submit
state-specific data, and explain how the utility intends to include state-specific data in future
reports, if possible.
new text end

new text begin Subd. 6. new text end

new text begin Publication; retention. new text end

new text begin The department must publish an annual report on the
department's website and must maintain each annual report for at least five years.
new text end

Sec. 15.

Minnesota Statutes 2020, section 216E.03, subdivision 7, is amended to read:

Subd. 7.

Considerations in designating sites and routes.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (14) evaluation of the proposed project's impact on socioeconomic factors new text end .

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2020, section 216E.04, subdivision 2, is amended to read:

Subd. 2.

Applicable projects.

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

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

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

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

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

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

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

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

(8) large electric power generating plants that are powered by solar energy.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2020, section 216F.012, is amended to read:

216F.012 SIZE ELECTION.

(a) A wind energy conversion system of less than 25 megawatts of nameplate capacity
as determined under section 216F.011 is a small wind energy conversion system if, by July
1, 2009, the owner so elects in writing and submits a completed application for zoning
approval and the written election to the county or counties in which the project is proposed
to be located. The owner must notify the Public Utilities Commission of the election at the
time the owner submits the election to the county.

(b) Notwithstanding paragraph (a), a wind energy conversion system with a nameplate
capacity exceeding five megawatts that is proposed to be located wholly or partially within
a wind access buffer adjacent to state lands that are part of the outdoor recreation system,
as enumerated in section 86A.05, is a large wind energy conversion system. The Department
of Natural Resources shall negotiate in good faith with a system owner regarding siting and
may support the system owner in seeking a variance from the system setback requirements
if it determines that a variance is in the public interest.

deleted text begin (c) The Public Utilities Commission shall issue an annual report to the chairs and ranking
minority members of the house of representatives and senate committees with primary
jurisdiction over energy policy and natural resource policy regarding any variances applied
for and not granted for systems subject to paragraph (b).
deleted 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. 18.

new text begin [216F.084] WIND TURBINE LIGHTING SYSTEMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Duration" means the length of time during which the lights of a wind turbine lighting
system are lit.
new text end

new text begin (c) "Intensity" means the brightness of a wind turbine lighting system's lights.
new text end

new text begin (d) "Light-mitigating technology" means a sensor-based system that reduces the duration
or intensity of wind turbine lighting systems by:
new text end

new text begin (1) using radio frequency or other sensors to detect aircraft approaching one or more
wind turbines, or detecting visibility conditions at turbine sites; and
new text end

new text begin (2) automatically activating appropriate obstruction lights until the lights are no longer
needed by the aircraft and are turned off or dimmed.
new text end

new text begin A light-mitigating technology may include an audio feature that transmits an audible warning
message to provide a pilot additional information regarding a wind turbine the aircraft is
approaching.
new text end

new text begin (e) "Repowering project" has the meaning given in section 216B.243, subdivision 8,
paragraph (b).
new text end

new text begin (f) "Wind turbine lighting system" means a system of lights installed on an LWECS that
meets the applicable Federal Aviation Administration requirements.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin This section applies to an LWECS issued a site permit or site
permit amendment, including a site permit amendment for an LWECS repowering project,
by the commission under section 216F.04 or by a county under section 216F.08, provided
that the application for a site permit or permit amendment is filed after July 1, 2021.
new text end

new text begin Subd. 3. new text end

new text begin Required lighting system. new text end

new text begin (a) An LWECS subject to this section must be
equipped with a light-mitigating technology that meets the requirements established in
Chapter 14 of the Federal Aviation Administration's Advisory Circular 70/760-1, Obstruction
Marking and Lighting, as updated, unless the Federal Aviation Administration, after
reviewing the LWECS site plan, rejects the use of the light-mitigating technology for the
LWECS. A light-mitigating technology installed on a wind turbine in Minnesota must be
purchased from a vendor approved by the Federal Aviation Administration.
new text end

new text begin (b) If the Federal Aviation Administration, after reviewing the LWECS site plan, rejects
the use of a light-mitigating technology for the LWECS under paragraph (a), the LWECS
must be equipped with a wind turbine lighting system that minimizes the duration or intensity
of the lighting system while maintaining full compliance with the lighting standards
established in Chapter 13 of the Federal Aviation Administration's Advisory Circular
70/760-1, Obstruction Marking and Lighting, as updated.
new text end

new text begin Subd. 4. new text end

new text begin Exemptions. new text end

new text begin (a) The Public Utilities Commission or a county that has assumed
permitting authority under section 216F.08 must grant an owner of an LWECS an exemption
from subdivision 3, paragraph (a), if the Federal Aviation Administration denies the owner's
application to equip an LWECS with a light-mitigating technology.
new text end

new text begin (b) The Public Utilities Commission or a county that has assumed permitting authority
under section 216F.08 must grant an owner of an LWECS an exemption from or an extension
of time to comply with subdivision 3, paragraph (a), if after notice and public hearing the
owner of the LWECS demonstrates to the satisfaction of the commission or county that:
new text end

new text begin (1) equipping an LWECS with a light-mitigating technology is technically infeasible;
new text end

new text begin (2) equipping an LWECS with a light-mitigating technology imposes a significant
financial burden on the permittee; or
new text end

new text begin (3) a vendor approved by the Federal Aviation Administration cannot deliver a
light-mitigating technology to the LWECS owner in a reasonable amount of time.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19. new text begin TRIBAL ADVOCACY COUNCIL ON ENERGY; DEPARTMENT OF
COMMERCE SUPPORT.
new text end

new text begin (a) The Department of Commerce must provide technical support and subject matter
expertise to help facilitate efforts taken by the 11 federally recognized Indian Tribes in
Minnesota to establish and operate a Tribal advocacy council on energy.
new text end

new text begin (b) When requested by a Tribal advocacy council on energy, the Department of Commerce
must assist the council to:
new text end

new text begin (1) assess and evaluate common Tribal energy issues, including:
new text end

new text begin (i) identifying and prioritizing energy issues;
new text end

new text begin (ii) facilitating idea sharing among the Tribes to generate solutions to energy issues; and
new text end

new text begin (iii) assisting decision making with respect to resolving energy issues;
new text end

new text begin (2) develop new statewide energy policies or proposed legislation, including:
new text end

new text begin (i) organizing stakeholder meetings;
new text end

new text begin (ii) gathering input and other relevant information;
new text end

new text begin (iii) assisting with policy proposal development, evaluation, and decision making; and
new text end

new text begin (iv) helping facilitate actions taken to submit, and obtain approval for or have enacted,
policies or legislation approved by the council;
new text end

new text begin (3) make efforts to raise awareness of and provide educational opportunities with respect
to Tribal energy issues among Tribal members by:
new text end

new text begin (i) identifying information resources;
new text end

new text begin (ii) gathering feedback on issues and topics the council identifies as areas of interest;
and
new text end

new text begin (iii) identifying topics for and helping to facilitate educational forums; and
new text end

new text begin (4) identify, evaluate, disseminate, and implement successful energy-related practices.
new text end

new text begin (c) Nothing in this section requires or otherwise obligates the 11 federally recognized
Indian Tribes in Minnesota to establish a Tribal advocacy council on energy, nor does it
require or obligate a federally recognized Indian Tribe in Minnesota to participate in or
implement a decision or support an effort made by a Tribal advocacy council on energy.
new text end

new text begin (d) Any support provided by the Department of Commerce to a Tribal advocacy council
on energy under this section must be provided only upon request of the council and is limited
to issues and areas where the Department of Commerce's expertise and assistance is
requested.
new text end

Sec. 20. new text begin PILOT PROJECT; REPORTING REQUIREMENTS.
new text end

new text begin Upon completion of the solar energy pilot project described in section 21, subdivision
3, paragraph (b), or by January 15, 2023, whichever is earlier, the commissioner of the
Pollution Control Agency, in cooperation with the electric cooperative association operating
the pilot project, must report to the chairs and ranking minority members of the legislative
committees with jurisdiction over capital investment, energy, and environment on the
following:
new text end

new text begin (1) project accomplishments and milestones, including any project growth, developments,
or agreements that resulted from the project;
new text end

new text begin (2) challenges or barriers faced during development or after completion of the project;
new text end

new text begin (3) project financials, including expenses, utility agreements, and project viability; and
new text end

new text begin (4) replicability of the pilot project to other future closed landfill projects.
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. 21. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Microgrid research and application. new text end

new text begin (a) Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $2,400,000 in fiscal year 2022 and
$1,200,000 in fiscal year 2023 are appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
commerce for transfer to the University of St. Thomas Center for Microgrid Research for
the purposes of paragraph (b). The base in fiscal year 2024 is $1,000,000, and the base in
fiscal year 2025 is $400,000. The base in fiscal year 2026 is $400,000.
new text end

new text begin (b) The appropriations in this section must be used by the University of St. Thomas
Center for Microgrid Research to:
new text end

new text begin (1) increase the center's capacity to provide industry partners opportunities to test
near-commercial microgrid products on a real-world scale and to multiply opportunities for
innovative research;
new text end

new text begin (2) procure advanced equipment and controls to enable the extension of the university's
microgrid to additional buildings; and
new text end

new text begin (3) expand (i) hands-on educational opportunities to better understand the operations of
microgrids to undergraduate and graduate electrical engineering students, and (ii) partnerships
with community colleges.
new text end

new text begin Subd. 2. new text end

new text begin Clean energy training; pilot project. new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $2,500,000 in fiscal year 2022 is appropriated
from the renewable development account to the commissioner of employment and economic
development for a grant to Northgate Development, LLC, for a pilot project to provide
training pathways into careers in clean energy for students and young adults in underserved
communities. Any unexpended funds remaining at the end of the biennium cancel to the
renewable development account. This is a onetime appropriation.
new text end

new text begin (b) The pilot project must develop skills among program participants, short of the level
required for licensing under Minnesota Statutes, chapter 326B, that are relevant to the design,
construction, operation, or maintenance of:
new text end

new text begin (1) systems producing solar or wind energy;
new text end

new text begin (2) improvements in energy efficiency, as defined in Minnesota Statutes, section
216B.241, subdivision 1;
new text end

new text begin (3) energy storage systems connected to renewable energy facilities, including battery
technology;
new text end

new text begin (4) infrastructure for charging all-electric or electric hybrid vehicles; or
new text end

new text begin (5) grid technologies that manage load and provide services to the distribution grid that
reduce energy consumption or shift demand to off-peak periods.
new text end

new text begin (c) Training must be designed to create pathways to a postsecondary degree, industry
certification, or to a registered apprenticeship program under chapter 178 that is related to
the fields in paragraph (b) and then to stable career employment at a living wage.
new text end

new text begin (d) Training must be provided at a location that is accessible by public transportation
and must prioritize the inclusion of communities of color, indigenous people, and low-income
individuals.
new text end

new text begin (e) Grant funds may be used for all expenses related to the training program, including
curriculum, instructors, equipment, materials, and leasing and improving space for use by
the program.
new text end

new text begin (f) No later than January 15, 2022, and by January 15 of 2023 and 2024, Northgate
Development, LLC, shall submit an annual report to the commissioner of employment and
economic development that must include, at a minimum, information on:
new text end

new text begin (1) program expenditures, including but not limited to amounts spent on curriculum,
instructors, equipment, materials, and leasing and improving space for use by the program;
new text end

new text begin (2) other public or private funding sources, including in-kind donations, supporting the
pilot program;
new text end

new text begin (3) the number of program participants;
new text end

new text begin (4) demographic information on program participants including but not limited to race,
age, gender, and income; and
new text end

new text begin (5) the number of program participants placed in a postsecondary program, industry
certification program, or registered apprenticeship program under Minnesota Statutes,
chapter 178.
new text end

new text begin Subd. 3. new text end

new text begin Landfill bond prepayment; solar pilot project. new text end

new text begin (a) Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $100,000 in fiscal year 2022 is
appropriated from the renewable development account established under Minnesota Statutes,
section 116C.779, subdivision 1, to the commissioner of commerce for transfer to the
commissioner of management and budget to prepay and defease any outstanding general
obligation bonds used to acquire property, finance improvements and betterments, or pay
any other associated financing costs at the Anoka-Ramsey closed landfill. This amount may
be deposited, invested, and applied to accomplish the purposes of this section as provided
in Minnesota Statutes, section 475.67, subdivisions 5 to 10 and 13. Upon the prepayment
and defeasance of all associated debt on the real property and improvements, all conditions
set forth in Minnesota Statutes, section 16A.695, subdivision 3, are deemed to have been
satisfied and the real property and improvements no longer constitute state bond financed
property under Minnesota Statutes, section 16A.695. This is a onetime appropriation. Any
funds appropriated under this section that remain unexpended after the purposes in this
paragraph have been met cancel to the renewable development account.
new text end

new text begin (b) Once the purposes in paragraph (a) have been met, the commissioner of the Pollution
Control Agency may take actions and execute agreements to facilitate the beneficial reuse
of the Anoka-Ramsey closed landfill, and may specifically authorize the installation of a
solar energy generating system, as defined in Minnesota Statutes, section 216E.01,
subdivision 9a, as a pilot project at the closed landfill to be owned and operated by a
cooperative electric association that has more than 130,000 customers in Minnesota. The
appropriation in paragraph (a) must not be used to finance the pilot project, procure land
rights, or to manage the solar energy generating system.
new text end

new text begin Subd. 4. new text end

new text begin Participant compensation. new text end

new text begin (a) $30,000 in fiscal year 2022 and $30,000 in
fiscal year 2023 are appropriated from the general fund to the commissioner of commerce
to address participant compensation issues in Public Utilities Commission proceedings, as
described in Minnesota Statutes, section 216B.631.
new text end

new text begin (b) $28,000 in fiscal year 2022 and $28,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission to address participant compensation
issues under Minnesota Statutes, section 216B.631.
new text end

new text begin Subd. 5. new text end

new text begin Commerce department; Energy Resources Division. new text end

new text begin $3,493,000 in fiscal
year 2022 and $3,547,000 in fiscal year 2023 are appropriated from the general fund to the
commissioner of commerce for general operating activities of the Energy Resources Division.
new text end

new text begin Subd. 6. new text end

new text begin Weatherization; vermiculite remediation. new text end

new text begin $150,000 in fiscal year 2022 and
$150,000 in fiscal year 2023 are appropriated from the general fund to the commissioner
of commerce to remediate vermiculite insulation from households that are eligible for
weatherization assistance under Minnesota's weatherization assistance program state plan
under Minnesota Statutes, section 216C.264. Remediation must be done in conjunction with
federal weatherization assistance program services.
new text end

new text begin Subd. 7. new text end

new text begin Energy regulation and planning. new text end

new text begin $851,000 in fiscal year 2022 and $870,000
in fiscal year 2023 are appropriated from the general fund to the commissioner of commerce
for activities of the energy regulation and planning unit staff.
new text end

new text begin Subd. 8. new text end

new text begin "Made in Minnesota" administration. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C. 779, subdivision 1, paragraph (j), $100,000 in fiscal year 2022 and $100,000
in fiscal year 2023 are appropriated from the renewable development account established
in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to administer the "Made in Minnesota" solar energy production incentive program under
Minnesota Statutes, section 216C.417. Any remaining unspent funds cancel back to the
renewable development account at the end of the biennium.
new text end

new text begin Subd. 9. new text end

new text begin Grant cycle; proposal evaluation. new text end

new text begin $500,000 in fiscal year 2022 and $500,000
in fiscal year 2023 are appropriated from the renewable development account established
in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
for costs associated with any third-party expert evaluation of a proposal submitted in response
to a request for proposal to the renewable development advisory group under Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (l). No portion of this appropriation
may be expended or retained by the commissioner of commerce. Any funds appropriated
under this paragraph that are unexpended at the end of a fiscal year cancel to the renewable
development account.
new text end

new text begin Subd. 10. new text end

new text begin Petroleum Tank Release Compensation Board. new text end

new text begin $1,056,000 in fiscal year
2022 and $1,056,000 in fiscal year 2023 are appropriated from the petroleum tank fund to
the Petroleum Tank Release Compensation Board for its operations.
new text end

new text begin Subd. 11. new text end

new text begin Public Utilities Commission. new text end

new text begin $8,073,000 in fiscal year 2022 and $8,202,000
in fiscal year 2023 are appropriated from the general fund to the Public Utilities Commission
for its general operations.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, sections 115C.13; and 216B.16, subdivision 10, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Laws 2017, chapter 5, section 1, new text end new text begin is repealed.
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

APPENDIX

Repealed Minnesota Statutes: H2110-1

115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11, 115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2022.

216B.16 RATE CHANGE; PROCEDURE; HEARING.

Subd. 10.

Intervenor compensation.

(a) A nonprofit organization or an individual granted formal intervenor status by the commission is eligible to receive compensation.

(b) The commission may order a utility to compensate all or part of an eligible intervenor's reasonable costs of participation in a general rate case that comes before the commission when the commission finds that the intervenor has materially assisted the commission's deliberation and when a lack of compensation would present financial hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor in any proceeding. For the purpose of this subdivision, "materially assisted" means that the intervenor's participation and presentation was useful and seriously considered, or otherwise substantially contributed to the commission's deliberations in the proceeding.

(c) In determining whether an intervenor has materially assisted the commission's deliberation, the commission must consider, among other factors, whether:

(1) the intervenor represented an interest that would not otherwise have been adequately represented;

(2) the evidence or arguments presented or the positions taken by the intervenor were an important factor in producing a fair decision;

(3) the intervenor's position promoted a public purpose or policy;

(4) the evidence presented, arguments made, issues raised, or positions taken by the intervenor would not have been a part of the record without the intervenor's participation; and

(5) the administrative law judge or the commission adopted, in whole or in part, a position advocated by the intervenor.

(d) In determining whether the absence of compensation would present financial hardship to the intervenor, the commission must consider:

(1) whether the costs presented in the intervenor's claim reflect reasonable fees for attorneys and expert witnesses and other reasonable costs; and

(2) the ratio between the costs of intervention and the intervenor's unrestricted funds.

(e) An intervenor seeking compensation must file a request and an affidavit of service with the commission, and serve a copy of the request on each party to the proceeding. The request must be filed 30 days after the later of (1) the expiration of the period within which a petition for rehearing, amendment, vacation, reconsideration, or reargument must be filed or (2) the date the commission issues an order following rehearing, amendment, vacation, reconsideration, or reargument.

(f) The compensation request must include:

(1) the name and address of the intervenor or representative of the nonprofit organization the intervenor is representing;

(2) proof of the organization's nonprofit, tax-exempt status;

(3) the name and docket number of the proceeding for which compensation is requested;

(4) a list of actual annual revenues and expenses of the organization the intervenor is representing for the preceding year and projected revenues, revenue sources, and expenses for the current year;

(5) the organization's balance sheet for the preceding year and a current monthly balance sheet;

(6) an itemization of intervenor costs and the total compensation request; and

(7) a narrative explaining why additional organizational funds cannot be devoted to the intervention.

(g) Within 30 days after service of the request for compensation, a party may file a response, together with an affidavit of service, with the commission. A copy of the response must be served on the intervenor and all other parties to the proceeding.

(h) Within 15 days after the response is filed, the intervenor may file a reply with the commission. A copy of the reply and an affidavit of service must be served on all other parties to the proceeding.

(i) If additional costs are incurred as a result of additional proceedings following the commission's initial order, the intervenor may file an amended request within 30 days after the commission issues an amended order. Paragraphs (e) to (h) apply to an amended request.

(j) The commission must issue a decision on intervenor compensation within 60 days of a filing by an intervenor.

(k) A party may request reconsideration of the commission's compensation decision within 30 days of the decision.

(l) If the commission issues an order requiring payment of intervenor compensation, the utility that was the subject of the proceeding must pay the compensation to the intervenor, and file with the commission proof of payment, within 30 days after the later of (1) the expiration of the period within which a petition for reconsideration of the commission's compensation decision must be filed or (2) the date the commission issues an order following reconsideration of its order on intervenor compensation.

216B.1691 RENEWABLE ENERGY OBJECTIVES.

Subd. 2.

Eligible energy objectives.

Each electric utility shall make a good faith effort to generate or procure sufficient electricity generated by an eligible energy technology to provide its retail consumers, or the retail customers of a distribution utility to which the electric utility provides wholesale electric service, so that commencing in 2005, at least one percent of the electric utility's total retail electric sales to retail customers in Minnesota is generated by eligible energy technologies and seven percent of the electric utility's total retail electric sales to retail customers in Minnesota by 2010 is generated by eligible energy technologies.

216B.241 ENERGY CONSERVATION IMPROVEMENT.

Subdivision 1.

Definitions.

For purposes of this section and section 216B.16, subdivision 6b, the terms defined in this subdivision have the meanings given them.

(a) "Commission" means the Public Utilities Commission.

(b) "Commissioner" means the commissioner of commerce.

(c) "Department" means the Department of Commerce.

(d) "Energy conservation" means demand-side management of energy supplies resulting in a net reduction in energy use. Load management that reduces overall energy use is energy conservation.

(e) "Energy conservation improvement" means a project that results in energy efficiency or energy conservation. Energy conservation improvement may include waste heat that is recovered and converted into electricity, but does not include electric utility infrastructure projects approved by the commission under section 216B.1636. Energy conservation improvement also includes waste heat recovered and used as thermal energy.

(f) "Energy efficiency" means measures or programs, including energy conservation measures or programs, that target consumer behavior, equipment, processes, or devices designed to produce either an absolute decrease in consumption of electric energy or natural gas or a decrease in consumption of electric energy or natural gas on a per unit of production basis without a reduction in the quality or level of service provided to the energy consumer.

(g) "Gross annual retail energy sales" means annual electric sales to all retail customers in a utility's or association's Minnesota service territory or natural gas throughput to all retail customers, including natural gas transportation customers, on a utility's distribution system in Minnesota. For purposes of this section, gross annual retail energy sales exclude:

(1) gas sales to:

(i) a large energy facility;

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

(iii) a commercial gas customer facility whose natural gas utility has been exempted by the commissioner under subdivision 1a, paragraph (c), with respect to natural gas sales made to the commercial gas customer facility; and

(2) electric sales to a large customer facility whose electric utility has been exempted by the commissioner under subdivision 1a, paragraph (b), with respect to electric sales made to the large customer facility.

(h) "Investments and expenses of a public utility" includes the investments and expenses incurred by a public utility in connection with an energy conservation improvement, including but not limited to:

(1) the differential in interest cost between the market rate and the rate charged on a no-interest or below-market interest loan made by a public utility to a customer for the purchase or installation of an energy conservation improvement;

(2) the difference between the utility's cost of purchase or installation of energy conservation improvements and any price charged by a public utility to a customer for such improvements.

(i) "Large customer facility" means all buildings, structures, equipment, and installations at a single site that collectively (1) impose a peak electrical demand on an electric utility's system of not less than 20,000 kilowatts, measured in the same way as the utility that serves the customer facility measures electrical demand for billing purposes or (2) consume not less than 500 million cubic feet of natural gas annually. In calculating peak electrical demand, a large customer facility may include demand offset by on-site cogeneration facilities and, if engaged in mineral extraction, may aggregate peak energy demand from the large customer facility's mining and processing operations.

(j) "Large energy facility" has the meaning given it in section 216B.2421, subdivision 2, clause (1).

(k) "Load management" means an activity, service, or technology to change the timing or the efficiency of a customer's use of energy that allows a utility or a customer to respond to wholesale market fluctuations or to reduce peak demand for energy or capacity.

(l) "Low-income programs" means energy conservation improvement programs that directly serve the needs of low-income persons, including low-income renters.

(m) "Qualifying utility" means a utility that supplies the energy to a customer that enables the customer to qualify as a large customer facility.

(n) "Waste heat recovered and used as thermal energy" means capturing heat energy that would otherwise be exhausted or dissipated to the environment from machinery, buildings, or industrial processes and productively using such recovered thermal energy where it was captured or distributing it as thermal energy to other locations where it is used to reduce demand-side consumption of natural gas, electric energy, or both.

(o) "Waste heat recovery converted into electricity" means an energy recovery process that converts otherwise lost energy from the heat of exhaust stacks or pipes used for engines or manufacturing or industrial processes, or the reduction of high pressure in water or gas pipelines.

Subd. 1b.

Conservation improvement by cooperative association or municipality.

(a) This subdivision applies to:

(1) a cooperative electric association that provides retail service to more than 5,000 members;

(2) a municipality that provides electric service to more than 1,000 retail customers; and

(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales to natural gas retail customers.

(b) Each cooperative electric association and municipality subject to this subdivision shall spend and invest for energy conservation improvements under this subdivision the following amounts:

(1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross operating revenues from electric and gas service provided in the state to large electric customer facilities; and

(2) for a cooperative electric association, 1.5 percent of its gross operating revenues from service provided in the state, excluding gross operating revenues from service provided in the state to large electric customer facilities indirectly through a distribution cooperative electric association.

(c) Each municipality and cooperative electric association subject to this subdivision shall identify and implement energy conservation improvement spending and investments that are appropriate for the municipality or association, except that a municipality or association may not spend or invest for energy conservation improvements that directly benefit a large energy facility or a large electric customer facility for which the commissioner has issued an exemption under subdivision 1a, paragraph (b).

(d) Each municipality and cooperative electric association subject to this subdivision may spend and invest annually up to ten percent of the total amount required to be spent and invested on energy conservation improvements under this subdivision on research and development projects that meet the definition of energy conservation improvement in subdivision 1 and that are funded directly by the municipality or cooperative electric association.

(e) Load-management activities may be used to meet 50 percent of the conservation investment and spending requirements of this subdivision.

(f) A generation and transmission cooperative electric association that provides energy services to cooperative electric associations that provide electric service at retail to consumers may invest in energy conservation improvements on behalf of the associations it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate basis. A municipal power agency or other not-for-profit entity that provides energy service to municipal utilities that provide electric service at retail may invest in energy conservation improvements on behalf of the municipal utilities it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate basis, under an agreement between the municipal power agency or not-for-profit entity and each municipal utility for funding the investments.

(g) Each municipality or cooperative shall file energy conservation improvement plans by June 1 on a schedule determined by order of the commissioner, but at least every three years. Plans received by June 1 must be approved or approved as modified by the commissioner by December 1 of the same year. The municipality or cooperative shall provide an evaluation to the commissioner detailing its energy conservation improvement spending and investments for the previous period. The evaluation must briefly describe each conservation program and must specify the energy savings or increased efficiency in the use of energy within the service territory of the utility or association that is the result of the spending and investments. The evaluation must analyze the cost-effectiveness of the utility's or association's conservation programs, using a list of baseline energy and capacity savings assumptions developed in consultation with the department. The commissioner shall review each evaluation and make recommendations, where appropriate, to the municipality or association to increase the effectiveness of conservation improvement activities.

(h) The commissioner shall consider and may require a utility, association, or other entity providing energy efficiency and conservation services under this section to undertake a program suggested by an outside source, including a political subdivision, nonprofit corporation, or community organization.

Subd. 2c.

Performance incentives.

By December 31, 2008, the commission shall review any incentive plan for energy conservation improvement it has approved under section 216B.16, subdivision 6c, and adjust the utility performance incentives to recognize making progress toward and meeting the energy-savings goals established in subdivision 1c.

Subd. 4.

Federal law prohibitions.

If investments by public utilities in energy conservation improvements are in any manner prohibited or restricted by federal law and there is a provision under which the prohibition or restriction may be waived, then the commission, the governor, or any other necessary state agency or officer shall take all necessary and appropriate steps to secure a waiver with respect to those public utility investments in energy conservation improvements included in this section.

Subd. 10.

Waste heat recovery; thermal energy distribution.

Demand-side natural gas or electric energy displaced by use of waste heat recovered and used as thermal energy, including the recovered thermal energy from a cogeneration or combined heat and power facility, is eligible to be counted towards a utility's natural gas or electric energy savings goals, subject to department approval.

Repealed Minnesota Session Laws: H2110-1

Laws 2017, chapter 5, section 1

Section 1. new text begin NATURAL GAS COMBINED CYCLE ELECTRIC GENERATION PLANT. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 216B.243 and Minnesota Statutes, chapter 216E, a public utility may, at its sole discretion, construct, own, and operate a natural gas combined cycle electric generation plant as the utility proposed to the Public Utilities Commission in docket number E-002/RP-15-21, or as revised by the utility and approved by the Public Utilities Commission in the latest resource plan filed after the effective date of this section, provided that the plant is located on property in Sherburne County, Minnesota, already owned by the public utility, and will be constructed after January 1, 2018. new text end

new text begin (b) Reasonable and prudently incurred costs and investments by a public utility under this section may be recovered pursuant to the provisions of Minnesota Statutes, section 216B.16. new text end

new text begin (c) No less than 20 months prior to the start of construction, a public utility intending to construct a plant under this section shall file with the commission an evaluation of the utility's forecasted costs prepared by an independent evaluator and may ask the commission to establish a sliding scale rate of return mechanism for this capital investment to provide an incentive for the utility to complete the project at or under the forecasted costs. new text end