1.1                          A bill for an act 
  1.2             relating to energy; transferring proceeds of certain 
  1.3             energy conservation accounts to commissioner of 
  1.4             children, families, and learning; replacing public 
  1.5             utility capital structure approval with security 
  1.6             issuance approval; providing for variance for 
  1.7             decorative gas lamp; amending Minnesota Statutes 1996, 
  1.8             sections 216B.241, subdivision 2a; 216B.49, 
  1.9             subdivisions 3 and 4; 216C.19, subdivision 6; and 
  1.10            239.785, subdivision 6; repealing Minnesota Statutes 
  1.11            1996, section 216B.49, subdivision 2.  
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 216B.241, 
  1.14  subdivision 2a, is amended to read: 
  1.15     Subd. 2a.  [ENERGY AND CONSERVATION ACCOUNT.] The 
  1.16  commissioner shall deposit money contributed under subdivisions 
  1.17  1a and 1b in the energy and conservation account in the general 
  1.18  fund.  Money in the account is appropriated to the department 
  1.19  for programs designed to meet the energy conservation needs of 
  1.20  low-income persons and to make energy conservation improvements 
  1.21  in areas not adequately served under subdivision 2.  Interest on 
  1.22  money in the account accrues to the account.  Using information 
  1.23  collected under section 216C.02, subdivision 1, paragraph (b), 
  1.24  the commissioner shall, to the extent possible, allocate enough 
  1.25  money to programs for low-income persons to assure that their 
  1.26  needs are being adequately addressed.  The commissioner shall 
  1.27  request the commissioner of finance to transfer money from the 
  1.28  account to the commissioner of economic security children, 
  2.1   families, and learning for an energy conservation program for 
  2.2   low-income persons.  In establishing programs, the commissioner 
  2.3   shall consult political subdivisions and nonprofit and community 
  2.4   organizations, especially organizations engaged in providing 
  2.5   energy and weatherization assistance to low-income persons.  At 
  2.6   least one program must address the need for energy conservation 
  2.7   improvements in areas in which a high percentage of residents 
  2.8   use fuel oil or propane to fuel their source of home heating.  
  2.9   The commissioner may contract with a political subdivision, a 
  2.10  nonprofit or community organization, a public utility, a 
  2.11  municipality, or a cooperative electric association to implement 
  2.12  its programs.  
  2.13     Sec. 2.  Minnesota Statutes 1996, section 216B.49, 
  2.14  subdivision 3, is amended to read: 
  2.15     Subd. 3.  [COMMISSION APPROVAL REQUIRED.] It shall be 
  2.16  unlawful for any public utility organized under the laws of this 
  2.17  state to offer or sell any security or, if organized under the 
  2.18  laws of any other state or foreign country, to subject property 
  2.19  in this state to an encumbrance for the purpose of securing the 
  2.20  payment of any indebtedness unless the capital structure 
  2.21  security issuance of the public utility shall first be approved 
  2.22  by the commission.  Approval by the commission shall be by 
  2.23  formal written order. 
  2.24     Sec. 3.  Minnesota Statutes 1996, section 216B.49, 
  2.25  subdivision 4, is amended to read: 
  2.26     Subd. 4.  [CONSIDERATIONS FOR APPROVAL FOR PUBLIC 
  2.27  FINANCING.] Upon the application of a public utility for 
  2.28  approval of its capital structure security issuance and prior to 
  2.29  the issuance of any security or the encumbrance of any property 
  2.30  for the purpose of securing the payment of any indebtedness, the 
  2.31  commission may make such inquiry or investigation, hold such 
  2.32  hearings, and examine such witnesses, books, papers, documents, 
  2.33  or contracts, as in its discretion it may deem necessary.  Prior 
  2.34  to approval the commission shall ascertain that the amount of 
  2.35  securities of each class which any public utility may issue 
  2.36  shall bear a reasonable proportion to each other and to the 
  3.1   value of the property, due consideration being given to the 
  3.2   nature of the business of the public utility, its credit and 
  3.3   prospects, the possibility that the value of the property may 
  3.4   change from time to time, the effect which the issue shall have 
  3.5   upon the management and operation of the public utility, and 
  3.6   other considerations which the commission as a matter of fact 
  3.7   shall find to be relevant.  If the commission shall find that 
  3.8   the proposed capital structure security issuance is reasonable 
  3.9   and proper and in the public interest and will not be 
  3.10  detrimental to the interests of the consumers and patrons 
  3.11  affected thereby, the commission shall by written order grant 
  3.12  its permission for the proposed public financing. 
  3.13     Sec. 4.  Minnesota Statutes 1996, section 216C.19, 
  3.14  subdivision 6, is amended to read: 
  3.15     Subd. 6.  [VARIANCE FOR DECORATIVE GAS LAMP.] Beginning 
  3.16  April 20, 1977, no person shall use a decorative gas lamp in 
  3.17  Minnesota except as provided in this subdivision and in 
  3.18  subdivision subdivisions 5 and 7.  The commissioner shall, at 
  3.19  the request of a homeowner who is 65 years old or older, grant a 
  3.20  permanent variance allowing the a homeowner who received a 
  3.21  variance in 1977 to operate a decorative gas lamp or lamps at 
  3.22  the homeowner's principal place of residence.  The variance 
  3.23  shall be valid for the life of the recipient but shall be 
  3.24  renewed every four years.  The commissioner may shall not issue 
  3.25  a variance after August 1, 1992, except variances issued before 
  3.26  that date may be renewed under this subdivision to any other 
  3.27  person to use a decorative gas lamp or lamps. 
  3.28     Sec. 5.  Minnesota Statutes 1996, section 239.785, 
  3.29  subdivision 6, is amended to read: 
  3.30     Subd. 6.  [LIQUEFIED PETROLEUM GAS ACCOUNT.] A liquefied 
  3.31  petroleum gas account in the special revenue fund is established 
  3.32  in the state treasury.  Fees and penalties collected under this 
  3.33  section must be deposited in the state treasury and credited to 
  3.34  the liquefied petroleum gas account.  Money in that account, 
  3.35  including interest earned, is appropriated to the commissioner 
  3.36  of economic security children, families, and learning for 
  4.1   programs to improve the energy efficiency of residential 
  4.2   liquefied petroleum gas heating equipment in low-income 
  4.3   households, and, when necessary, to provide weatherization 
  4.4   services to the homes. 
  4.5      Sec. 6.  [REPEALER.] 
  4.6      Minnesota Statutes 1996, section 216B.49, subdivision 2, is 
  4.7   repealed.