SF 3337

1st Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

1.1A bill for an act

1.2relating to energy; providing for enforcement of violations of provisions
1.3pertaining to gases with high global warming potential; modifying Petrofund
1.4program; modifying cost recovery provisions for electric transmission and
1.5renewable energy facilities; requiring a certain proportion of solar-generated
1.6electricity under a utility's renewable energy standard; providing that certain
1.7eminent domain appraisal and negotiation requirements apply to public service
1.8corporations; allowing utilities to fund certain solar energy products under the
1.9conservation improvement program; exempting certain wind and solar projects
1.10from the requirement to obtain a certificate of need; modifying and adding
1.11provisions relating to notice to and meetings with local units of government for
1.12siting large electric generating plant or high-voltage transmission line; creating a
1.13wind project aggregation program; requiring reporting of emissions or leakage of
1.14greenhouse gases with high global warming potential; prohibiting sale of certain
1.15refrigerants; requiring reports on reducing greenhouse gas emissions; requiring
1.16development of plan for solar rating and certification laboratory; initiating a pilot
1.17project allowing the Public Utilities Commission to treat strategic tree planting
1.18as an energy conservation improvement; appropriating money;amending
1.19Minnesota Statutes 2006, sections 115.071, subdivision 1; 115C.04, subdivision
1.203; 115C.09, subdivision 3h, by adding a subdivision; 117.189; 216B.16,
1.21subdivision 7b; 216B.1645, subdivisions 1, 2; 216B.2411, subdivision 2, by
1.22adding a subdivision; 216B.243, by adding a subdivision; 216E.03, subdivision
1.234, by adding subdivisions; Minnesota Statutes 2007 Supplement, sections
1.24216B.1645, subdivision 2a; 216B.1691, subdivision 2a; 216B.2411, subdivision
1.251; proposing coding for new law in Minnesota Statutes, chapters 216F; 216H;
1.26repealing Minnesota Statutes 2006, section 115C.09, subdivision 3j.
1.27BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.28    Section 1. Minnesota Statutes 2006, section 115.071, subdivision 1, is amended to read:
1.29    Subdivision 1. Remedies available. The provisions of sections 103F.701 to
1.30103F.761 , this chapter and chapters 114C, 115A, and 116, and sections 216H.10 to
1.31216H.15, 325E.10 to 325E.1251, and 325E.32 and all rules, standards, orders, stipulation
1.32agreements, schedules of compliance, and permits adopted or issued by the agency
1.33thereunder or under any other law now in force or hereafter enacted for the prevention,
2.1control, or abatement of pollution may be enforced by any one or any combination of
2.2the following: criminal prosecution; action to recover civil penalties; injunction; action
2.3to compel performance; or other appropriate action, in accordance with the provisions
2.4of said chapters and this section.
2.5EFFECTIVE DATE.This section is effective the day following final enactment.

2.6    Sec. 2. Minnesota Statutes 2006, section 115C.04, subdivision 3, is amended to read:
2.7    Subd. 3. Agency Cost recovery; subrogation. Reasonable and necessary expenses
2.8incurred by the agency in taking a corrective action, including costs of investigating
2.9a release, administrative and legal expenses, and reimbursement costs described in
2.10subdivision 1, paragraph (b), may be recovered in a civil action in district court brought
2.11by the attorney general board against a responsible person. The agency's certification of
2.12expenses is prima facie evidence that the expenses are reasonable and necessary. If the
2.13responsible person has petroleum tank leakage or spill insurance coverage that insures
2.14against the liability provided in this section, the agency board is subrogated to the rights
2.15of the responsible person with respect to that insurance coverage, to the extent of the
2.16expenses incurred by the agency and described in this subdivision. The agency board
2.17may request the attorney general to bring an action in district court against the insurer
2.18to enforce this subrogation right. Expenses that are recovered under this section must
2.19be deposited in the fund.

2.20    Sec. 3. Minnesota Statutes 2006, section 115C.09, subdivision 3h, is amended to read:
2.21    Subd. 3h. Reimbursement; aboveground tanks in bulk plants. (a) As used in
2.22this subdivision, "bulk plant" means an aboveground or underground tank facility with a
2.23storage capacity of more than 1,100 gallons but less than 1,000,000 gallons that is used to
2.24dispense petroleum into cargo tanks for transportation and sale at another location.
2.25    (b) Notwithstanding any other provision in this chapter and any rules adopted
2.26pursuant to this chapter, the board shall reimburse 90 percent of an applicant's cost for bulk
2.27plant upgrades or closures completed between June 1, 1998, and November 1, 2003, to
2.28comply with Minnesota Rules, chapter 7151, provided that the board determines the costs
2.29were incurred and reasonable. The reimbursement may not exceed $10,000 per bulk plant.
2.30The board may provide reimbursement under this paragraph for work completed after
2.31November 1, 2003, if the work was contracted for prior to that date and was not completed
2.32by that date as a result of an unanticipated situation, provided that an application for
2.33reimbursement under this paragraph, which may be a renewal of an application previously
2.34denied, is submitted prior to December 31, 2005.
3.1    (c) For corrective action at a bulk plant located on what is or was railroad
3.2right-of-way, the board shall reimburse 90 percent of total reimbursable costs on the first
3.3$40,000 of reimbursable costs and 100 percent of any remaining reimbursable costs when
3.4the applicant can document that more than one bulk plant was operated on the same
3.5section of right-of-way, as determined by the commissioner of commerce.

3.6    Sec. 4. Minnesota Statutes 2006, section 115C.09, is amended by adding a subdivision
3.7to read:
3.8    Subd. 3k. PVC piping at residential locations. (a) The purpose of this subdivision
3.9is to assist homeowners who have installed PVC fill piping as part of the heating oil
3.10system at their residences, not knowing that heating oil has been shown to dissolve certain
3.11types of glue used to hold PVC piping together. Replacement of the PVC piping with
3.12metal piping is intended to avoid the catastrophic release of heating oil, as well as the
3.13ensuing cleanup costs, that can occur at residences where the PVC piping fails.
3.14    (b) As used in this subdivision:
3.15    (1) "residential locations" means a storage tank and appurtenances for heating oil
3.16that are used to heat a single-family residence; and
3.17    (2) "qualified person" means someone who is registered as a contractor under section
3.18115C.11 and, as part of their trade or business, installs or repairs nonpressure piping,
3.19heating systems, air conditioning systems, or storage tank systems.
3.20    (c) Notwithstanding any other provision of this chapter or any rules adopted
3.21under this chapter, the board shall reimburse a qualified person 90 percent of the cost
3.22for replacing PVC fill piping with metal piping at residential locations between May 1,
3.232008, and September 1, 2011, provided that the board determines the costs were incurred
3.24and reasonable. The reimbursement may not exceed $250 per residential location. The
3.25maximum expenditure from the fund may not exceed $1,500,000.
3.26    (d) A heating oil vendor is not a responsible person for a heating oil spill inside a
3.27residential location if the spill was caused solely by the failure of a tank or appurtenance
3.28to a tank owned by the homeowner.

3.29    Sec. 5. Minnesota Statutes 2006, section 117.189, is amended to read:
3.30117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
3.31    Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187;
3.32117.188 ; and 117.52, subdivisions 1a and 4, do not apply to public service corporations.
3.33For purposes of an award of appraisal fees under section 117.085, the fees awarded may
3.34not exceed $500 for all types of property.
4.1EFFECTIVE DATE.This section is effective August 1, 2008, and applies to
4.2eminent domain proceedings commenced on or after August 1, 2008.

4.3    Sec. 6. Minnesota Statutes 2006, section 216B.16, subdivision 7b, is amended to read:
4.4    Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision
4.5of this chapter, the commission may approve a tariff mechanism for the automatic annual
4.6adjustment of charges for the Minnesota jurisdictional costs of: (i) new transmission
4.7facilities that have been separately filed and reviewed and approved by the commission
4.8under section 216B.243 or are certified as a priority project or deemed to be a priority
4.9transmission project under section 216B.2425; and (ii) charges incurred by a utility that
4.10accrue from other transmission owners' regionally planned transmission projects that have
4.11been determined by the Midwest Independent System Operator to benefit the utility, as
4.12provided for under a federally approved tariff.
4.13    (b) Upon filing by a public utility or utilities providing transmission service, the
4.14commission may approve, reject, or modify, after notice and comment, a tariff that:
4.15    (1) allows the utility to recover on a timely basis the costs net of revenues of
4.16facilities approved under section 216B.243 or certified or deemed to be certified under
4.17section 216B.2425 or exempt from the requirements of section 216B.243;
4.18    (2) allows the charges incurred by a utility that accrue from other transmission
4.19owners' regionally planned transmission projects that have been determined by the
4.20Midwest Independent System Operator to benefit the utility, as provided for under a
4.21federally approved tariff;
4.22    (3) allows a return on investment at the level approved in the utility's last general
4.23rate case, unless a different return is found to be consistent with the public interest;
4.24    (3) (4) provides a current return on construction work in progress, provided that
4.25recovery from Minnesota retail customers for the allowance for funds used during
4.26construction is not sought through any other mechanism;
4.27    (4) (5) allows for recovery of other expenses if shown to promote a least-cost project
4.28option or is otherwise in the public interest;
4.29    (5) (6) allocates project costs appropriately between wholesale and retail customers;
4.30    (6) (7) provides a mechanism for recovery above cost, if necessary to improve the
4.31overall economics of the project or projects or is otherwise in the public interest; and
4.32    (7) (8) terminates recovery once costs have been fully recovered or have otherwise
4.33been reflected in the utility's general rates.
4.34    (c) A public utility may file annual rate adjustments to be applied to customer bills
4.35paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
5.1    (1) a description of and context for the facilities included for recovery;
5.2    (2) a schedule for implementation of applicable projects;
5.3    (3) the utility's costs for these projects;
5.4    (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
5.5the project; and
5.6    (5) calculations to establish that the rate adjustment is consistent with the terms
5.7of the tariff established in paragraph (b).
5.8    (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
5.9paragraph (b), the commission shall approve the annual rate adjustments provided that,
5.10after notice and comment, the costs included for recovery through the tariff were or are
5.11expected to be prudently incurred and achieve transmission system improvements at the
5.12lowest feasible and prudent cost to ratepayers.

5.13    Sec. 7. Minnesota Statutes 2006, section 216B.1645, subdivision 1, is amended to read:
5.14    Subdivision 1. Commission authority. Upon the petition of a public utility, the
5.15Public Utilities Commission shall approve or disapprove power purchase contracts,
5.16investments, or expenditures entered into or made by the utility to satisfy the wind and
5.17biomass mandates contained in sections 216B.169, 216B.2423, and 216B.2424, and
5.18to satisfy the renewable energy objectives obligations set forth in section 216B.1691,
5.19including reasonable investments and expenditures made to:
5.20    (1) transmit the electricity generated from sources developed under those sections
5.21that is ultimately used to provide service to the utility's retail customers, including
5.22studies necessary to identify new transmission facilities needed to transmit electricity to
5.23Minnesota retail customers from generating facilities constructed to satisfy the renewable
5.24energy objectives obligations, provided that the costs of the studies have not been
5.25recovered previously under existing tariffs and the utility has filed an application for a
5.26certificate of need or for certification as a priority project under section 216B.2425 for the
5.27new transmission facilities identified in the studies;
5.28    (2) provide storage facilities for renewable energy generation facilities that
5.29contribute to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or
5.30    (2) (3) develop renewable energy sources from the account required in section
5.31116C.779 .

5.32    Sec. 8. Minnesota Statutes 2006, section 216B.1645, subdivision 2, is amended to read:
5.33    Subd. 2. Cost recovery. The expenses incurred by the utility over the duration of
5.34the approved contract or useful life of the investment and expenditures made pursuant
6.1to section 116C.779 shall be recoverable from the ratepayers of the utility, to the extent
6.2they are not offset by utility revenues attributable to the contracts, investments, or
6.3expenditures. Upon petition by a public utility, the commission shall approve or approve
6.4as modified a rate schedule providing for the automatic adjustment of charges to recover
6.5the expenses or costs approved by the commission under subdivision 1, which, in the case
6.6of transmission expenditures, are limited to the portion of actual transmission costs that are
6.7directly allocable to the need to transmit power from the renewable sources of energy. The
6.8commission may not approve recovery of the costs for that portion of the power generated
6.9from sources governed by this section that the utility sells into the wholesale market.

6.10    Sec. 9. Minnesota Statutes 2007 Supplement, section 216B.1645, subdivision 2a,
6.11is amended to read:
6.12    Subd. 2a. Cost recovery for owned renewable facilities. (a) A utility may petition
6.13the commission to approve a rate schedule that provides for the automatic adjustment of
6.14charges to recover prudently incurred investments, expenses, or costs associated with
6.15facilities constructed, owned, or operated by a utility to satisfy the requirements of section
6.16216B.1691 , provided those facilities were previously approved by the commission under
6.17section 216B.2422 or 216B.243, or were determined by the commission to be reasonable
6.18and prudent under section 216B.243, subdivision 9. The commission may approve, or
6.19approve as modified, a rate schedule that:
6.20    (1) allows a utility to recover directly from customers on a timely basis the costs of
6.21qualifying renewable energy projects, including:
6.22    (i) return on investment;
6.23    (ii) depreciation;
6.24    (iii) ongoing operation and maintenance costs;
6.25    (iv) taxes; and
6.26    (v) costs of transmission and other ancillary expenses directly allocable to
6.27transmitting electricity generated from a project meeting the specifications of this
6.28paragraph;
6.29    (2) provides a current return on construction work in progress, provided that recovery
6.30of these costs from Minnesota ratepayers is not sought through any other mechanism;
6.31    (3) allows recovery of other expenses incurred that are directly related to a
6.32renewable energy project, including expenses for energy storage, provided that the
6.33utility demonstrates to the commission's satisfaction that the expenses improve project
6.34economics, ensure project implementation, or facilitate coordination with the development
6.35of transmission necessary to transport energy produced by the project to market;
7.1    (4) allocates recoverable costs appropriately between wholesale and retail customers;
7.2    (5) terminates recovery when costs have been fully recovered or have otherwise
7.3been reflected in a utility's rates.
7.4    (b) A petition filed under this subdivision must include:
7.5    (1) a description of the facilities for which costs are to be recovered;
7.6    (2) an implementation schedule for the facilities;
7.7    (3) the utility's costs for the facilities;
7.8    (4) a description of the utility's efforts to ensure that costs of the facilities are
7.9reasonable and were prudently incurred; and
7.10    (5) a description of the benefits of the project in promoting the development of
7.11renewable energy in a manner consistent with this chapter.

7.12    Sec. 10. Minnesota Statutes 2007 Supplement, section 216B.1691, subdivision 2a,
7.13is amended to read:
7.14    Subd. 2a. Eligible energy technology standard. (a) Except as provided in
7.15paragraph (b), each electric utility shall generate or procure sufficient electricity generated
7.16by an eligible energy technology to provide its retail customers in Minnesota, or the
7.17retail customers of a distribution utility to which the electric utility provides wholesale
7.18electric service, so that at least the following standard percentages of the electric utility's
7.19total retail electric sales to retail customers in Minnesota are generated by eligible energy
7.20technologies by the end of the year indicated:

7.21	(1)	2012	12 percent
7.22	(2)	2016	17 percent
7.23	(3)	2020	20 percent
7.24	(4)	2025	25 percent.

7.25    (b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
7.26must meet the requirements of this paragraph rather than paragraph (a). An electric utility
7.27subject to this paragraph must generate or procure sufficient electricity generated by
7.28an eligible energy technology to provide its retail customers in Minnesota or the retail
7.29customer of a distribution utility to which the electric utility provides wholesale electric
7.30service so that at least the following percentages of the electric utility's total retail electric
7.31sales to retail customers in Minnesota are generated by eligible energy technologies by the
7.32end of the year indicated:

7.33	(1)	2010	15 percent
7.34	(2)	2012	18 percent
7.35	(3)	2016	25 percent
7.36	(4)	2020	30 percent.

8.1Of the 30 percent in 2020, at least 25 percent must be generated by wind energy conversion
8.2systems and the remaining five percent by other eligible energy technology.
8.3    (c) By the end of the year 2012, at least 0.0125 percent of the electricity required by
8.4paragraphs (a) and (b) to be generated by each electric utility must be generated by solar
8.5energy. At least 60 percent of the required solar energy electric generation by each utility
8.6must be distributed solar generated at a customer's site with customer-owned facilities.
8.7For the purposes of this paragraph, "distributed solar" means solar electric equipment that
8.8meets the requirements of section 216C.25 with a total peak generating capacity of 100
8.9kilowatts or less used for generating electricity primarily for use in a residential property
8.10or small business, as defined by section 645.445, to reduce the effective electric load
8.11for that residence or business. An electric utility that generates less than 60 percent of
8.12its required solar energy electric generation with customer-owned distributed solar must
8.13demonstrate that reasonable efforts were made to achieve sufficient customer participation
8.14in a timely manner.

8.15    Sec. 11. Minnesota Statutes 2007 Supplement, section 216B.2411, subdivision 1,
8.16is amended to read:
8.17    Subdivision 1. Generation projects. (a) Any municipality or rural electric
8.18association providing electric service and subject to section 216B.241 that is meeting the
8.19objectives under section 216B.1691 may, and each public utility may, use five percent
8.20of the total amount to be spent on energy conservation improvements under section
8.21216B.241 , on:
8.22    (1) projects in Minnesota to construct an electric generating facility that utilizes
8.23eligible renewable energy sources as defined in subdivision 2, such as methane or other
8.24combustible gases derived from the processing of plant or animal wastes, biomass fuels
8.25such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as its
8.26primary fuel source; or
8.27    (2) projects in Minnesota to install a distributed generation facility of ten megawatts
8.28or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
8.29similarly clean fuel.; or
8.30    (3) installing a qualifying solar energy project as defined in subdivision 2.
8.31    (b) For public utilities, as defined under section 216B.02, subdivision 4, projects
8.32under this section must be considered energy conservation improvements as defined in
8.33section 216B.241. For cooperative electric associations and municipal utilities, projects
8.34under this section must be considered load-management activities described in section
8.35216B.241, subdivision 1 .

9.1    Sec. 12. Minnesota Statutes 2006, section 216B.2411, subdivision 2, is amended to
9.2read:
9.3    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
9.4subdivision and section 216B.241, subdivision 1, have the meanings given them.
9.5    (b) "Eligible renewable energy sources" means fuels and technologies to generate
9.6electricity through the use of any of the resources listed in section 216B.1691, subdivision
9.71 , paragraph (a), clause (1), except that the term "biomass" has the meaning provided
9.8under paragraph (c), and "solar" must meet the definition of a qualified solar energy
9.9project under paragraph (d).
9.10    (c) "Biomass" includes:
9.11    (1) methane or other combustible gases derived from the processing of plant or
9.12animal material;
9.13    (2) alternative fuels derived from soybean and other agricultural plant oils or animal
9.14fats;
9.15    (3) combustion of barley hulls, corn, soy-based products, or other agricultural
9.16products;
9.17    (4) wood residue from the wood products industry in Minnesota or other wood
9.18products such as short-rotation woody or fibrous agricultural crops; and
9.19    (5) landfill gas, mixed municipal solid waste, and refuse-derived fuel from mixed
9.20municipal solid waste.
9.21    (d) "Qualifying solar energy project" means a qualifying solar thermal project or
9.22qualifying solar electric project.
9.23    (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets
9.24the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant
9.25energy and transfers it to a storage medium for distribution as energy to heat or cool air or
9.26water, but does not include equipment used to heat water at a residential property (1) for
9.27domestic use if less than one-half of the energy used for that purpose is derived from the
9.28sun or (2) for use in a hot tub or swimming pool.
9.29    (f) "Qualifying solar electric project" means solar electric equipment that meets the
9.30requirements of section 216C.25 with a total peak generating capacity of 100 kilowatts
9.31or less used for generating electricity primarily for use in a residential property or small
9.32business to reduce the effective electric load for that residence or small business.
9.33    (g) "Residential property" means the principal residence used by the homeowner at
9.34the time the solar equipment is placed in service.
9.35    (h) "Small business" has the meaning given to it in section 645.445.

10.1    Sec. 13. Minnesota Statutes 2006, section 216B.2411, is amended by adding a
10.2subdivision to read:
10.3    Subd. 4. Qualifying solar energy project. (a) A utility subject to section 216B.241
10.4may include in its conservation plan programs for the installation of qualifying solar
10.5energy projects as provided in this section. Qualifying solar energy projects must
10.6meet or exceed cost-effectiveness and other guidelines to be developed by order of
10.7the commissioner. Energy savings from qualifying solar energy projects may not be
10.8counted toward the minimum energy savings goal of at least one percent for energy
10.9conservation improvements required under section 216B.241, subdivision 1c, but may, as
10.10the commissioner determines appropriate:
10.11    (1) be counted above that minimum percentage; and
10.12    (2) be considered when establishing performance incentives under section 216B.241,
10.13subdivision 2c.
10.14    (b) Qualifying solar energy projects may not be considered when establishing
10.15demand-side management targets under sections 216B.2422, 216B.243, or any other
10.16section of this chapter.

10.17    Sec. 14. Minnesota Statutes 2006, section 216B.243, is amended by adding a
10.18subdivision to read:
10.19    Subd. 9. Renewable energy standard facilities. The requirements of this section
10.20do not apply to a wind energy conversion system or a solar electric generation facility that
10.21is intended to be used to meet or exceed the obligations of section 216B.1691; provided
10.22that, after notice and comment, the commission determines that the facility is a reasonable
10.23and prudent approach to meeting a utility's obligations under that section. When making
10.24this determination, the commission may consider the size of the facility relative to a
10.25utility's total need for renewable resources and alternative approaches for supplying
10.26the renewable energy to be supplied by the proposed facility, and must consider the
10.27facility's ability to promote economic development, as required under section 216B.1691,
10.28subdivision 9, maintain electric system reliability and consider impacts on ratepayers, and
10.29other criteria as the commission may determine are relevant.
10.30EFFECTIVE DATE.This section is effective the day following final enactment.

10.31    Sec. 15. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
10.32to read:
10.33    Subd. 3a. Project notice. At least 120 days before filing an application with the
10.34commission, the applicant shall provide notice to each local unit of government within
11.1which a route may be proposed. The notice must describe the proposed project and the
11.2opportunity for a preapplication consultation meeting with local units of government as
11.3provided in subdivision 3b.
11.4EFFECTIVE DATE.This section is effective the day following final enactment.

11.5    Sec. 16. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision
11.6to read:
11.7    Subd. 3b. Preapplication consultation meetings. Within 30 days of receiving a
11.8project notice, local units of government may request the applicant hold a consultation
11.9meeting with local units of government. Upon receiving notice from a local unit of
11.10government requesting a preapplication consultation meeting, the applicant shall arrange
11.11the meeting at a location chosen by the local unit of government.
11.12EFFECTIVE DATE.This section is effective the day following final enactment.

11.13    Sec. 17. Minnesota Statutes 2006, section 216E.03, subdivision 4, is amended to read:
11.14    Subd. 4. Notice of Application notice. Within 15 days after submission of an
11.15application to the commission, the applicant shall publish notice of the application in
11.16a legal newspaper of general circulation in each county in which the site or route is
11.17proposed and send a copy of the application by certified mail to any regional development
11.18commission, county, incorporated municipality, and township town in which any part
11.19of the site or route is proposed. Within the same 15 days, the applicant shall also send
11.20a notice of the submission of the application and description of the proposed project to
11.21each owner whose property is on or adjacent to any of the proposed sites for the power
11.22plant or along any of the proposed routes for the transmission line. The notice shall must
11.23identify a location where a copy of the application can be reviewed. For the purpose
11.24of giving mailed notice under this subdivision, owners shall be are those shown on the
11.25records of the county auditor or, in any county where tax statements are mailed by the
11.26county treasurer, on the records of the county treasurer; but other appropriate records may
11.27be used for this purpose. The failure to give mailed notice to a property owner, or defects
11.28in the notice, shall does not invalidate the proceedings, provided a bona fide attempt to
11.29comply with this subdivision has been made. Within the same 15 days, the applicant shall
11.30also send the same notice of the submission of the application and description of the
11.31proposed project to those persons who have requested to be placed on a list maintained by
11.32the commission for receiving notice of proposed large electric generating power plants
11.33and high voltage transmission lines.
12.1EFFECTIVE DATE.This section is effective the day following final enactment.

12.2    Sec. 18. [216F.09] WECS AGGREGATION PROGRAM.
12.3    Subdivision 1. Program established. The entity selected to provide rural wind
12.4development assistance under Laws 2007, chapter 57, article 2, section 3, subdivision 6,
12.5shall also establish a wind energy conversion system (WECS) aggregation program. The
12.6purpose of the program is to create a clearinghouse to coordinate and arrange umbrella
12.7sales arrangements for groups of individuals, farmstead property owners, farmers'
12.8cooperative associations, community-based energy project developers, school districts,
12.9and other political subdivisions to aggregate small-volume purchases, as a group, in order
12.10to place large orders for wind energy conversion systems with WECS manufacturers.
12.11    Subd. 2. Responsibilities. The entity shall:
12.12    (1) provide application procedures for participation in the program;
12.13    (2) set minimum standards for wind energy conversion systems to be considered for
12.14purchase through the program, which may include price, quality and installation standards,
12.15timely delivery schedules and arrangements, performance and reliability ratings, and any
12.16other factors considered necessary or desirable for participants;
12.17    (3) set eligibility considerations and requirements for purchasers, including
12.18availability to the applicant of land authorized for installation and use of WECS,
12.19likelihood of a permit being approved by the commission or a county under this chapter,
12.20documentation of adequate financing, and other necessary or usual financial or business
12.21practices or requirements;
12.22    (4) provide a minimal framework for soliciting or contacting manufacturers on
12.23behalf of participants; and
12.24    (5) coordinate purchase agreements between the manufacturer and participants.
12.25    Subd. 3. Report. By February 1 of 2009, and each year thereafter, the commissioner
12.26of commerce shall submit a report to the chairs and ranking minority members of the
12.27senate and house of representatives committees with primary jurisdiction over energy
12.28policy on the activities and results of the program, including the number of participants
12.29and the number of purchases made.
12.30    Subd. 4. Assessment; appropriation. Annual costs of the program, up to $100,000,
12.31must be assessed under section 216C.052, subdivision 2, paragraph (c), clause (1). The
12.32assessment is appropriated to the commissioner of commerce to be used by the director
12.33of the Office of Energy Security for a grant to the entity to carry out the purposes of
12.34this section.
12.35EFFECTIVE DATE.This section is effective the day following final enactment.

13.1    Sec. 19. [216H.07] GREENHOUSE GAS EMISSION REDUCTION
13.2ATTAINMENT; POLICY DEVELOPMENT PROCESS.
13.3    Subdivision 1. Definition. For the purpose of this section, "reductions" means the
13.4greenhouse gas emissions reductions goals specified in section 216H.02, subdivision 1.
13.5    Subd. 2. Purpose. This section is intended to create a nonexclusive, regular,
13.6mandated process for the state to develop policies to attain the greenhouse gas reduction
13.7goals specified in section 216H.02.
13.8    Subd. 3. Biennial reduction progress report. By November 1 of each
13.9even-numbered year, the commissioners of commerce and the Pollution Control Agency
13.10shall jointly report to the chairs and ranking minority members of the legislative
13.11committees with primary policy jurisdiction over energy and environmental issues the
13.12most recent and best available evidence identifying the level of reductions already
13.13achieved and the level necessary to achieve the reduction goals established in section
13.14216H.02. The report must be written in easily understood, nontechnical language.
13.15    Subd. 4. Annual legislative proposal. The commissioners of commerce and the
13.16Pollution Control Agency shall annually by November 1 provide to the chairs and ranking
13.17minority members of the legislative committees with primary policy jurisdiction over
13.18energy and environmental issues proposed legislation the commissioners determine
13.19appropriate to achieve the reductions. If the commissioners determine no legislation is
13.20appropriate, they shall report that determination to the chairs along with an explanation of
13.21the determination.
13.22EFFECTIVE DATE.This section is effective the day following final enactment.

13.23    Sec. 20. [216H.10] DEFINITIONS.
13.24    Subdivision 1. Applicability. For purposes of sections 216H.10 to 216H.15, the
13.25following terms have the meanings given.
13.26    Subd. 2. Agency. "Agency" means the Pollution Control Agency.
13.27    Subd. 3. Carbon dioxide equivalent. "Carbon dioxide equivalent" means the
13.28quantity of carbon dioxide that has the same global warming potential as a given amount
13.29of another greenhouse gas.
13.30    Subd. 4. Commissioner. "Commissioner" means the commissioner of the Pollution
13.31Control Agency.
13.32    Subd. 5. Global warming. "Global warming" means the observed and predicted
13.33increase in the temperature of the atmosphere near the earth's surface and the oceans.
13.34    Subd. 6. Global warming potential or GWP. "Global warming potential" or
13.35"GWP" means a quantitative measure of the potential of an emission of a greenhouse
14.1gas to contribute to global warming over a 100-year period expressed in terms of the
14.2equivalent emission of carbon dioxide needed to produce the same 100-year warming
14.3effect, as reported in Fourth Assessment Report: Climate Change 2007, International
14.4Panel on Climate Change.
14.5    Subd. 7. High-GWP greenhouse gas. "High-GWP greenhouse gas" means
14.6hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
14.7    Subd. 8. Mobile air conditioner. "Mobile air conditioner" means mechanical
14.8vapor compression refrigeration equipment used to cool the passenger compartment of a
14.9motor vehicle.
14.10    Subd. 9. Motor vehicle. "Motor vehicle" has the meaning given in section 168.011,
14.11subdivision 4.
14.12    Subd. 10. New motor vehicle. "New motor vehicle" has the meaning given in
14.13section 80E.03, subdivision 7.
14.14    Subd. 11. Refrigerant. "Refrigerant" means a substance used, sold for use, or
14.15designed and intended for use in a mobile air conditioner to transfer heat out of the space
14.16being cooled.
14.17EFFECTIVE DATE.This section is effective the day following final enactment.

14.18    Sec. 21. [216H.11] HIGH-GWP GREENHOUSE GAS REPORTING.
14.19    Subdivision 1. Gas manufacturers. Beginning October 1, 2008, and each year
14.20thereafter, a manufacturer of a high-GWP greenhouse gas must report to the agency the
14.21total amount of each high-GWP greenhouse gas sold to a purchaser in this state during
14.22the previous year.
14.23    Subd. 2. Purchases. Beginning October 1, 2008, and each year thereafter, a
14.24person in this state who purchases 100 metric tons or more carbon dioxide equivalent
14.25of a high-GWP greenhouse gas must report to the agency, on a form prescribed by the
14.26commissioner, the total amount of each high-GWP greenhouse gas purchased during the
14.27previous year and the purpose for which the gas was used.
14.28    Subd. 3. Acceptance of federal filing. With the approval of the commissioner, this
14.29section may be satisfied by filing with the commissioner a copy of a greenhouse gas
14.30emissions report filed with a federal agency.
14.31EFFECTIVE DATE.This section is effective the day following final enactment.

14.32    Sec. 22. [216H.12] MOBILE AIR CONDITIONER LEAKAGE RATES;
14.33DISCLOSURE.
15.1    Subdivision 1. Leakage disclosure. Beginning January 1, 2009, a manufacturer
15.2selling or offering for sale a new motor vehicle in this state containing a mobile air
15.3conditioner that uses the high-GWP greenhouse gas HFC-134a (1,1,1,2-tetrafluoroethane)
15.4as a refrigerant must, 90 days prior to the initial sale or offer for sale, report to the
15.5commissioner the leakage rate, in grams of refrigerant per year, for the type of mobile
15.6air conditioner contained in that make, model, and model year. The leakage rate must be
15.7calculated using the information provided in the most recently published version of the
15.8Society of Automotive Engineers International document J2727, "HFC-134a Mobile
15.9Air Conditioning System Emission Chart." The method by which the leakage rate is
15.10calculated, accounting for each component of the air conditioning unit, must also be
15.11reported to the commissioner.
15.12    Subd. 2. Posting. Beginning January 1, 2009, the agency and the Office of the
15.13Attorney General must post on their Web sites:
15.14    (1) the leakage rate disclosed by a manufacturer under subdivision 1 for each model
15.15and make of new motor vehicle sold or offered for sale in this state; and
15.16    (2) the following statement: "Vehicle air conditioning systems may leak refrigerants.
15.17Information provided in the chart compares the potential global warming effects of
15.18refrigerant leakage from different makes and models of vehicles."
15.19EFFECTIVE DATE.This section is effective the day following final enactment.

15.20    Sec. 23. [216H.14] MOBILE AIR CONDITIONER REFRIGERANT;
15.21RESTRICTION.
15.22    After July 1, 2008, no person may buy or sell a refrigerant designed to be used in a
15.23mobile air conditioner in a container holding less than 15 pounds of refrigerant.
15.24EFFECTIVE DATE.This section is effective the day following final enactment.

15.25    Sec. 24. [216H.15] ENFORCEMENT.
15.26    Sections 216H.10 to 216H.14 may be enforced under sections 115.071 and 116.072.
15.27EFFECTIVE DATE.This section is effective the day following final enactment.

15.28    Sec. 25. REPORT.
15.29    By February 1, 2009, the commissioner of the Pollution Control Agency shall
15.30submit a report to the chairs and ranking minority members of the senate and house of
15.31representatives committees with primary jurisdiction over environmental policy that
15.32identifies the uses and emissions sources of hydrofluorocarbons, perfluorocarbons, and
16.1sulfur hexafluoride in this state and suggests options for reducing or eliminating those uses
16.2and emissions and the costs of implementing those options.
16.3EFFECTIVE DATE.This section is effective the day following final enactment.

16.4    Sec. 26. ENERGY CONSERVATION PILOT PROJECT; STRATEGIC TREE
16.5PLANTING.
16.6    (a) From July 1, 2008, through June 30, 2009, the Public Utilities Commission and
16.7the commissioner of commerce shall treat the strategic planting of trees and shrubs on
16.8property of a retail customer provided electric or gas service by a public utility, municipal
16.9utility, or cooperative electric association subject to Minnesota Statutes, section 216B.241,
16.10as promoting energy efficiency and eligible for direct expenditures and expense recovery
16.11under that statute as an energy conservation improvement.
16.12    (b) For purposes of this section, "strategic" refers to the placement of trees and
16.13shrubs to obtain the most advantageous impact on energy conservation for a retail
16.14customer facility, including but not limited to shelter belt protection and heat dissipation.
16.15EFFECTIVE DATE.This section is effective July 1, 2008.

16.16    Sec. 27. SOLAR RATING AND CERTIFICATION LABORATORY.
16.17    The director of the Office of Energy Security shall convene technical stakeholders
16.18who are expert in the design, manufacture, installation, and operation of solar energy
16.19systems to develop criteria and characteristics for a Minnesota-based solar rating and
16.20certification laboratory. The criteria shall include, but not be limited to, consideration of
16.21durability, cold-weather operations, and indoor air quality. The director shall develop and,
16.22by September 15, 2008, issue a request for proposals for the development of a plan, based
16.23on the criteria and characteristics developed by the stakeholder group, for a solar rating
16.24and certification laboratory in the state, including cost estimates. By January 15, 2009,
16.25the director shall submit a report to the chairs of the house and senate committees with
16.26jurisdiction over energy finance issues, detailing the responses to the request and making
16.27recommendations, including draft legislation.
16.28EFFECTIVE DATE.This section is effective the day following final enactment.

16.29    Sec. 28. REPEALER.
16.30Minnesota Statutes 2006, section 115C.09, subdivision 3j, is repealed.
16.31EFFECTIVE DATE.This section is effective the day following final enactment.