SF 145

CCR--SF0145A - 85th Legislature (2007 - 2008)

Posted on 01/15/2013 08:28 p.m.

1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 145 1.2A bill for an act 1.3relating to energy; providing for community-based energy development; 1.4requiring a plan to reduce greenhouse gas emissions;amending Minnesota 1.5Statutes 2006, sections 216B.1612, subdivisions 1, 2, 3, 5, by adding a 1.6subdivision; 216B.1691, by adding a subdivision; proposing coding for new law 1.7in Minnesota Statutes, chapter 216F. 1.8May 19, 2007 1.9The Honorable James P. Metzen 1.10President of the Senate 1.11The Honorable Margaret Anderson Kelliher 1.12Speaker of the House of Representatives 1.13We, the undersigned conferees for S.F. No. 145 report that we have agreed upon the 1.14items in dispute and recommend as follows: 1.15That the House recede from its amendments and that S.F. No. 145 be further 1.16amended as follows: 1.17Delete everything after the enacting clause and insert: 1.18"ARTICLE 1 1.19GENERAL PROVISIONS 1.20    Section 1. new text begin TITLE. new text end 1.21     new text begin This act may be cited as the Next Generation Energy Act of 2007. new text end 1.22    Sec. 2. Minnesota Statutes 2006, section 216C.05, is amended to read: 1.23216C.05 FINDINGS AND PURPOSE. 1.24     new text begin Subdivision 1. new text end new text begin Energy planning. new text end The legislature finds and declares that continued 1.25growth in demand for energy will cause severe social and economic dislocations, and that 1.26the state has a vital interest in providing for: increased efficiency in energy consumption, 1.27the development and use of renewable energy resources wherever possible, and the 1.28creation of an effective energy forecasting, planning, and education program. 2.1    The legislature further finds and declares that the protection of life, safety, and 2.2financial security for citizens during an energy crisis is of paramount importance. 2.3    Therefore, the legislature finds that it is in the public interest to review, analyze, and 2.4encourage those energy programs that will minimize the need for annual increases in 2.5fossil fuel consumption by 1990 and the need for additional electrical generating plants, 2.6and provide for an optimum combination of energy sources consistent with environmental 2.7protection and the protection of citizens. 2.8    The legislature intends to monitor, through energy policy planning and 2.9implementation, the transition from historic growth in energy demand to a period when 2.10demand for traditional fuels becomes stable and the supply of renewable energy resources 2.11is readily available and adequately utilized. 2.12     new text begin Subd. 2. new text end new text begin Energy policy goals. new text end new text begin It is the energy policy of the state of Minnesota that: new text end 2.13     new text begin (1) the per capita use of fossil fuel as an energy input be reduced by 15 percent by new text end 2.14 new text begin the year 2015, through increased reliance on energy efficiency and renewable energy new text end 2.15 new text begin alternatives; and new text end 2.16     new text begin (2) 25 percent of the total energy used in the state be derived from renewable energy new text end 2.17 new text begin resources by the year 2025. new text end 2.18ARTICLE 2 2.19ENERGY EFFICIENCY AND CONSERVATION 2.20    Section 1. Minnesota Statutes 2006, section 216B.16, subdivision 1, is amended to read: 2.21    Subdivision 1. Notice. Unless the commission otherwise orders, no public utility 2.22shall change a rate which has been duly established under this chapter, except upon 60 2.23days' notice to the commission. The notice shall include statements of facts, expert 2.24opinions, substantiating documents, and exhibits, supporting the change requested, and 2.25state the change proposed to be made in the rates then in force and the time when the 2.26modified rates will go into effect. If the filing utility does not have an approved new text begin energy new text end 2.27conservation improvement plan on file with the department, it shall also include in its 2.28notice an energy conservation plan pursuant to section 216B.241. new text begin A filing utility subject to new text end 2.29 new text begin rate regulation under section 216B.026 shall reference in its notice the energy conservation new text end 2.30 new text begin improvement plans of the generation and transmission cooperative providing energy new text end 2.31 new text begin conservation improvement programs to members of the filing utility pursuant to section new text end 2.32 new text begin 216B.241. new text end The filing utility shall give written notice, as approved by the commission, of 2.33the proposed change to the governing body of each municipality and county in the area 2.34affected. All proposed changes shall be shown by filing new schedules or shall be plainly 2.35indicated upon schedules on file and in force at the time. 3.1    Sec. 2. Minnesota Statutes 2006, section 216B.16, subdivision 6b, is amended to read: 3.2    Subd. 6b. Energy conservation improvement. (a) Except as otherwise provided 3.3in this subdivision, all investments and expenses of a public utility as defined in 3.4section 216B.241, subdivision 1, paragraph (e) new text begin (i) new text end , incurred in connection with energy 3.5conservation improvements shall be recognized and included by the commission in the 3.6determination of just and reasonable rates as if the investments and expenses were directly 3.7made or incurred by the utility in furnishing utility service. 3.8    (b) After December 31, 1999, Investments and expenses for energy conservation 3.9improvements shall not be included by the commission in the determination of new text begin (i) new text end just and 3.10reasonable electric and gas rates for retail electric and gas service provided to large electric 3.11customer facilities that have been exempted by the commissioner of the department 3.12pursuant to section 216B.241, subdivision 1a, paragraph (b) new text begin ; or (ii) just and reasonable new text end 3.13 new text begin gas rates for large energy facilities new text end . However, no public utility shall be prevented from 3.14recovering its investment in energy conservation improvements from all customers that 3.15were made on or before December 31, 1999, in compliance with the requirements of 3.16section . 3.17    (c) The commission may permit a public utility to file rate schedules providing for 3.18annual recovery of the costs of energy conservation improvements. These rate schedules 3.19may be applicable to less than all the customers in a class of retail customers if necessary to 3.20reflect the differing minimum spending requirements of section 216B.241, subdivision 1a. 3.21After December 31, 1999, new text begin . new text end The commission shall allow a public utility, without requiring 3.22a general rate filing under this section, to reduce the electric and gas rates applicable to 3.23large electric customer facilities that have been exempted by the commissioner of the 3.24department pursuant to section 216B.241, subdivision 1a, paragraph (b), new text begin and to reduce the new text end 3.25 new text begin gas rate applicable to a large energy facility new text end by an amount that reflects the elimination 3.26of energy conservation improvement investments or expenditures for those facilities 3.27required on or before December 31, 1999. In the event that the commission has set 3.28electric or gas rates based on the use of an accounting methodology that results in the cost 3.29of conservation improvements being recovered from utility customers over a period of 3.30years, the rate reduction may occur in a series of steps to coincide with the recovery of 3.31balances due to the utility for conservation improvements made by the utility on or before 3.32December 31, 1999 new text begin 2007 new text end . 3.33     new text begin (d) Investments and expenses of a public utility shall not include electric utility new text end 3.34 new text begin infrastructure costs as defined in section 216B.1636, subdivision 1, paragraph (b). new text end 4.1    Sec. 3. new text begin [216B.1636] RECOVERY OF ELECTRIC UTILITY INFRASTRUCTURE new text end 4.2 new text begin COSTS. new text end 4.3     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) "Electric utility" means a public utility as defined in new text end 4.4 new text begin section 216B.02, subdivision 4, that furnishes electric service to retail customers. new text end 4.5     new text begin (b) "Electric utility infrastructure costs" or "EUIC" means costs for electric utility new text end 4.6 new text begin infrastructure projects that were not included in the electric utility's rate base in its most new text end 4.7 new text begin recent general rate case. new text end 4.8     new text begin (c) "Electric utility infrastructure projects" means projects owned by an electric new text end 4.9 new text begin utility that: new text end 4.10     new text begin (1) replace or modify existing electric utility infrastructure, including utility-owned new text end 4.11 new text begin buildings, if the replacement or modification is shown to conserve energy or use energy new text end 4.12 new text begin more efficiently, consistent with section 216B.241, subdivision 1c; or new text end 4.13     new text begin (2) conserve energy or use energy more efficiently by using waste heat recovery new text end 4.14 new text begin converted into electricity as defined in section 216B.241, subdivision 1, paragraph (n). new text end 4.15     new text begin Subd. 2. new text end new text begin Filing. new text end new text begin (a) The commission may approve an electric utility's petition for new text end 4.16 new text begin a rate schedule to recover EUIC under this section. An electric utility may petition the new text end 4.17 new text begin commission to recover a rate of return, income taxes on the rate of return, incremental new text end 4.18 new text begin property taxes, if any, plus incremental depreciation expense associated with EUIC. new text end 4.19     new text begin (b) The filing is subject to the following: new text end 4.20     new text begin (1) an electric utility may submit a filing under this section no more than once new text end 4.21 new text begin per year; and new text end 4.22     new text begin (2) an electric utility must file sufficient information to satisfy the commission new text end 4.23 new text begin regarding the proposed EUIC or be subject to denial by the commission. The information new text end 4.24 new text begin includes, but is not limited to: new text end 4.25     new text begin (i) the location, description, and costs associated with the project; new text end 4.26     new text begin (ii) evidence that the electric utility infrastructure project will conserve energy or use new text end 4.27 new text begin energy more efficiently than similar utility facilities currently used by the electric utility; new text end 4.28     new text begin (iii) the proposed schedule for implementation; new text end 4.29     new text begin (iv) a description of the costs, and salvage value, if any, associated with the existing new text end 4.30 new text begin infrastructure replaced or modified as a result of the project; new text end 4.31     new text begin (v) the proposed rate design and an explanation of why the proposed rate design new text end 4.32 new text begin is in the public interest; new text end 4.33     new text begin (vi) the magnitude and timing of any known future electric utility projects that the new text end 4.34 new text begin utility may seek to recover under this section; new text end 5.1     new text begin (vii) the magnitude of EUIC in relation to the electric utility's base revenue as new text end 5.2 new text begin approved by the commission in the electric utility's most recent general rate case, new text end 5.3 new text begin exclusive of fuel cost adjustments; new text end 5.4     new text begin (viii) the magnitude of EUIC in relation to the electric utility's capital expenditures new text end 5.5 new text begin since its most recent general rate case; new text end 5.6     new text begin (ix) the amount of time since the utility last filed a general rate case and the utility's new text end 5.7 new text begin reasons for seeking recovery outside of a general rate case; new text end 5.8     new text begin (x) documentation supporting the calculation of the EUIC; and new text end 5.9     new text begin (xi) a cost and benefit analysis showing that the electric utility infrastructure project new text end 5.10 new text begin is in the public interest. new text end 5.11     new text begin (c) Upon approval of the proposed projects and associated EUIC rate schedule, the new text end 5.12 new text begin utility may implement the electric utility infrastructure projects. new text end 5.13     new text begin Subd. 3. new text end new text begin Commission authority; orders. new text end new text begin The commission may issue orders new text end 5.14 new text begin necessary to implement and administer this section. new text end 5.15    Sec. 4. new text begin [216B.2401] ENERGY CONSERVATION POLICY GOAL. new text end 5.16     new text begin It is the energy policy of the state of Minnesota to achieve annual energy savings new text end 5.17 new text begin equal to 1.5 percent of annual retail energy sales of electricity and natural gas directly new text end 5.18 new text begin through energy conservation improvement programs and rate design, and indirectly new text end 5.19 new text begin through energy codes and appliance standards, programs designed to transform the market new text end 5.20 new text begin or change consumer behavior, energy savings resulting from efficiency improvements to new text end 5.21 new text begin the utility infrastructure and system, and other efforts to promote energy efficiency and new text end 5.22 new text begin energy conservation. new text end 5.23    Sec. 5. Minnesota Statutes 2006, section 216B.241, is amended to read: 5.24216B.241 ENERGY CONSERVATION IMPROVEMENT. 5.25    Subdivision 1. Definitions. For purposes of this section and section 216B.16, 5.26subdivision 6b , the terms defined in this subdivision have the meanings given them. 5.27    (a) "Commission" means the Public Utilities Commission. 5.28    (b) "Commissioner" means the commissioner of commerce. 5.29    (c) "Customer facility" means all buildings, structures, equipment, and installations 5.30at a single site. 5.31    (d) "Department" means the Department of Commerce. 5.32    (e) "Energy conservation" means demand-side management of energy supplies 5.33resulting in a net reduction in energy use. Load management that reduces overall energy 5.34use is energy conservation. 6.1    (f) "Energy conservation improvement" means a project that results in new text begin energy new text end 6.2 new text begin efficiency or new text end energy conservation. new text begin Energy conservation improvement may include waste new text end 6.3 new text begin heat recovery converted into electricity but does not include electric utility infrastructure new text end 6.4 new text begin projects approved by the commission under section 216B.1636. new text end 6.5     new text begin (g) "Energy efficiency" means measures or programs, including energy conservation new text end 6.6 new text begin measures or programs, that target consumer behavior, equipment, processes, or devices new text end 6.7 new text begin designed to produce either an absolute decrease in consumption of electric energy or new text end 6.8 new text begin natural gas or a decrease in consumption of electric energy or natural gas on a per unit new text end 6.9 new text begin of production basis without a reduction in the quality or level of service provided to new text end 6.10 new text begin the energy consumer. new text end 6.11    (g) new text begin (h) "Gross annual retail energy sales" means annual electric sales to all retail new text end 6.12 new text begin customers in a utility's or association's Minnesota service territory or natural gas new text end 6.13 new text begin throughput to all retail customers, including natural gas transportation customers, on a new text end 6.14 new text begin utility's distribution system in Minnesota. For purposes of this section, gross annual new text end 6.15 new text begin retail energy sales exclude gas sales to a large energy facility and gas and electric sales new text end 6.16 new text begin to a large electric customer facility exempted by the commissioner under subdivision new text end 6.17 new text begin 1a, paragraph (b). new text end 6.18     new text begin (i) new text end "Investments and expenses of a public utility" includes the investments and 6.19expenses incurred by a public utility in connection with an energy conservation 6.20improvement, including but not limited to: 6.21    (1) the differential in interest cost between the market rate and the rate charged on a 6.22no-interest or below-market interest loan made by a public utility to a customer for the 6.23purchase or installation of an energy conservation improvement; 6.24    (2) the difference between the utility's cost of purchase or installation of energy 6.25conservation improvements and any price charged by a public utility to a customer for 6.26such improvements. 6.27    (h) new text begin (j) new text end "Large electric customer facility" means a customer facility that imposes a 6.28peak electrical demand on an electric utility's system of not less than 20,000 kilowatts, 6.29measured in the same way as the utility that serves the customer facility measures 6.30electrical demand for billing purposes, and for which electric services are provided at 6.31retail on a single bill by a utility operating in the state. 6.32    (i) new text begin (k) "Large energy facility" has the meaning given it in section 216B.2421, new text end 6.33 new text begin subdivision 2, clause (1). new text end 6.34     new text begin (l) new text end "Load management" means an activity, service, or technology to change the 6.35timing or the efficiency of a customer's use of energy that allows a utility or a customer 7.1to respond to wholesale market fluctuations or to reduce the overall new text begin peak new text end demand for 7.2energy or capacity. 7.3     new text begin (m) "Low-income programs" means energy conservation improvement programs new text end 7.4 new text begin that directly serve the needs of low-income persons, including low-income renters. new text end 7.5     new text begin (n) "Waste heat recovery converted into electricity" means an energy recovery new text end 7.6 new text begin process that converts otherwise lost energy from the heat of exhaust stacks or pipes used new text end 7.7 new text begin for engines or manufacturing or industrial processes, or the reduction of high pressure new text end 7.8 new text begin in water or gas pipelines. new text end 7.9    Subd. 1a. Investment, expenditure, and contribution; public utility. (a) For 7.10purposes of this subdivision and subdivision 2, "public utility" has the meaning given it 7.11in section 216B.02, subdivision 4. Each public utility shall spend and invest for energy 7.12conservation improvements under this subdivision and subdivision 2 the following 7.13amounts: 7.14    (1) for a utility that furnishes gas service, 0.5 percent of its gross operating revenues 7.15from service provided in the state; 7.16    (2) for a utility that furnishes electric service, 1.5 percent of its gross operating 7.17revenues from service provided in the state; and 7.18    (3) for a utility that furnishes electric service and that operates a nuclear-powered 7.19electric generating plant within the state, two percent of its gross operating revenues 7.20from service provided in the state. 7.21    For purposes of this paragraph (a), "gross operating revenues" do not include 7.22revenues from large electric customer facilities exempted by the commissioner under 7.23paragraph (b). 7.24    (b) The owner of a large electric customer facility may petition the commissioner 7.25to exempt both electric and gas utilities serving the large energy customer facility from 7.26the investment and expenditure requirements of paragraph (a) with respect to retail 7.27revenues attributable to the facility. At a minimum, the petition must be supported by 7.28evidence relating to competitive or economic pressures on the customer and a showing 7.29by the customer of reasonable efforts to identify, evaluate, and implement cost-effective 7.30conservation improvements at the facility. If a petition is filed on or before October 1 of 7.31any year, the order of the commissioner to exempt revenues attributable to the facility can 7.32be effective no earlier than January 1 of the following year. The commissioner shall 7.33not grant an exemption if the commissioner determines that granting the exemption is 7.34contrary to the public interest. The commissioner may, after investigation, rescind any 7.35exemption granted under this paragraph upon a determination that cost-effective new text begin the new text end 7.36 new text begin customer is not continuing to make reasonable efforts to identify, evaluate, and implement new text end 8.1energy conservation improvements are available at the large electric customer facility. 8.2For the purposes of this paragraph, "cost-effective" means that the projected total cost of 8.3the energy conservation improvement at the large electric customer facility is less than 8.4the projected present value of the energy and demand savings resulting from the energy 8.5conservation improvement. For the purposes of investigations by the commissioner under 8.6this paragraph, the owner of any large electric customer facility shall, upon request, 8.7provide the commissioner with updated information comparable to that originally supplied 8.8in or with the owner's original petition under this paragraph. 8.9    (c) The commissioner may require investments or spending greater than the amounts 8.10required under this subdivision for a public utility whose most recent advance forecast 8.11required under section 216B.2422 or 216C.17 projects a peak demand deficit of 100 8.12megawatts or greater within five years under midrange forecast assumptions. 8.13    (d) A public utility or owner of a large electric customer facility may appeal 8.14a decision of the commissioner under paragraph (b) or (c) to the commission under 8.15subdivision 2. In reviewing a decision of the commissioner under paragraph (b) or (c), 8.16the commission shall rescind the decision if it finds that the required investments or 8.17spending will: 8.18    (1) not result in cost-effective energy conservation improvements; or 8.19    (2) otherwise not be in the public interest. 8.20    (e) Each utility shall determine what portion of the amount it sets aside for 8.21conservation improvement will be used for conservation improvements under subdivision 8.222 and what portion it will contribute to the energy and conservation account established in 8.23subdivision 2a. A public utility may propose to the commissioner to designate that all 8.24or a portion of funds contributed to the account established in subdivision 2a be used 8.25for research and development projects that can best be implemented on a statewide 8.26basis. Contributions must be remitted to the commissioner by February 1 of each year. 8.27Nothing in this subdivision prohibits a public utility from spending or investing for energy 8.28conservation improvement more than required in this subdivision. 8.29    Subd. 1b. Conservation improvement by cooperative association or 8.30municipality. (a) This subdivision applies to: 8.31    (1) a cooperative electric association that provides retail service to its members; 8.32    (2) a municipality that provides electric service to retail customers; and 8.33    (3) a municipality with gross operating revenues in excess of $5,000,000 from 8.34sales of new text begin more than 1,000,000,000 cubic feet in annual throughput sales to new text end natural gas 8.35to retail customers. 9.1    (b) Each cooperative electric association and municipality subject to this subdivision 9.2shall spend and invest for energy conservation improvements under this subdivision 9.3the following amounts: 9.4    (1) for a municipality, 0.5 percent of its gross operating revenues from the sale of 9.5gas and 1.5 percent of its gross operating revenues from the sale of electricity, excluding 9.6gross operating revenues from electric and gas service provided in the state to large 9.7electric customer facilities; and 9.8    (2) for a cooperative electric association, 1.5 percent of its gross operating revenues 9.9from service provided in the state, excluding gross operating revenues from service 9.10provided in the state to large electric customer facilities indirectly through a distribution 9.11cooperative electric association. 9.12    (c) Each municipality and cooperative electric association subject to this subdivision 9.13shall identify and implement energy conservation improvement spending and investments 9.14that are appropriate for the municipality or association, except that a municipality 9.15or association may not spend or invest for energy conservation improvements that 9.16directly benefit a new text begin large energy facility or a new text end large electric customer facility for which the 9.17commissioner has issued an exemption under subdivision 1a, paragraph (b). 9.18    (d) Each municipality and cooperative electric association subject to this subdivision 9.19may spend and invest annually up to ten percent of the total amount required to be spent 9.20and invested on energy conservation improvements under this subdivision on research 9.21and development projects that meet the definition of energy conservation improvement 9.22in subdivision 1 and that are funded directly by the municipality or cooperative electric 9.23association. 9.24    (e) Load-management activities that do not reduce energy use but that increase the 9.25efficiency of the electric system may be used to meet 50 percent of the conservation 9.26investment and spending requirements of this subdivision. 9.27    (f) A generation and transmission cooperative electric association that provides 9.28energy services to cooperative electric associations that provide electric service at retail to 9.29consumers may invest in energy conservation improvements on behalf of the associations 9.30it serves and may fulfill the conservation, spending, reporting, and energy savings goals on 9.31an aggregate basis. A municipal power agency or other not-for-profit entity that provides 9.32energy service to municipal utilities that provide electric service at retail may invest in 9.33energy conservation improvements on behalf of the municipal utilities it serves and may 9.34fulfill the conservation, spending, reporting, and energy savings goals on an aggregate 9.35basis, under an agreement between the municipal power agency or not-for-profit entity 9.36and each municipal utility for funding the investments. 10.1    (g) At least every four years, on a schedule determined by the commissioner, each 10.2municipality or cooperative shall file an overview of its conservation improvement plan 10.3with the commissioner. With this overview, new text begin Each municipality or cooperative shall file new text end 10.4 new text begin energy conservation improvement plans by June 1 on a schedule determined by order new text end 10.5 new text begin of the commissioner, but at least every three years. Plans received by June 1 must be new text end 10.6 new text begin approved or approved as modified by the commissioner by December 1 of the same year. new text end 10.7The municipality or cooperative shall also provide an evaluation to the commissioner 10.8detailing its energy conservation improvement spending and investments for the previous 10.9period. The evaluation must briefly describe each conservation program and must specify 10.10the energy savings or increased efficiency in the use of energy within the service territory 10.11of the utility or association that is the result of the spending and investments. The 10.12evaluation must analyze the cost-effectiveness of the utility's or association's conservation 10.13programs, using a list of baseline energy and capacity savings assumptions developed 10.14in consultation with the department. The commissioner shall review each evaluation 10.15and make recommendations, where appropriate, to the municipality or association to 10.16increase the effectiveness of conservation improvement activities. Up to three percent of 10.17a utility's conservation spending obligation under this section may be used for program 10.18pre-evaluation, testing, and monitoring and program evaluation. The overview and 10.19evaluation filed by a municipality with less than 60,000,000 kilowatt-hours in annual 10.20retail sales of electric service may consist of a letter from the governing board of the 10.21municipal utility to the department providing the amount of annual conservation spending 10.22required of that municipality and certifying that the required amount has been spent on 10.23conservation programs pursuant to this subdivision. 10.24    (h) The commissioner shall also review each evaluation for whether a portion of the 10.25money spent on residential conservation improvement programs is devoted to programs 10.26that directly address the needs of renters and low-income persons unless an insufficient 10.27number of appropriate programs are available. For the purposes of this subdivision and 10.28subdivision 2, "low-income" means an income at or below 50 percent of the state median 10.29income. 10.30    (i) As part of its spending for conservation improvement, a municipality or 10.31association may contribute to the energy and conservation account. A municipality or 10.32association may propose to the commissioner to designate that all or a portion of funds 10.33contributed to the account be used for research and development projects that can best 10.34be implemented on a statewide basis. Any amount contributed must be remitted to the 10.35commissioner by February 1 of each year. 11.1    (j) new text begin (h) new text end A municipality may spend up to 50 percent of its required spending under 11.2this section to refurbish an existing district heating or cooling system. This paragraph 11.3expires new text begin until new text end July 1, 2007. new text begin From July 1, 2007, through June 30, 2011, expenditures made new text end 11.4 new text begin to refurbish a district heating or cooling system are considered to be load-management new text end 11.5 new text begin activities under paragraph (e). This paragraph expires July 1, 2011. new text end 11.6     new text begin (i) The commissioner shall consider and may require a utility, association, or new text end 11.7 new text begin other entity providing energy efficiency and conservation services under this section to new text end 11.8 new text begin undertake a program suggested by an outside source, including a political subdivision, new text end 11.9 new text begin nonprofit corporation, or community organization. new text end 11.10    Subd. 1c. Energy-saving goals. new text begin (a) new text end The commissioner shall establish energy-saving 11.11goals for energy conservation improvement expenditures and shall evaluate an energy 11.12conservation improvement program on how well it meets the goals set. 11.13     new text begin (b) Each individual utility and association shall have an annual energy-savings new text end 11.14 new text begin goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the new text end 11.15 new text begin commissioner under paragraph (d). The savings goals must be calculated based on the new text end 11.16 new text begin most recent three-year weather normalized average. new text end 11.17     new text begin (c) The commissioner must adopt a filing schedule that is designed to have all new text end 11.18 new text begin utilities and associations operating under an energy savings plan by calendar year 2010. new text end 11.19     new text begin (d) In its energy conservation improvement plan filing, a utility or association may new text end 11.20 new text begin request the commissioner to adjust its annual energy savings percentage goal based on new text end 11.21 new text begin its historical conservation investment experience, customer class makeup, load growth, new text end 11.22 new text begin a conservation potential study, or other factors the commissioner determines warrants new text end 11.23 new text begin an adjustment. The commissioner may not approve a plan that provides for an annual new text end 11.24 new text begin energy savings goal of less than one percent of gross annual retail energy sales from new text end 11.25 new text begin energy conservation improvements. A utility or association may include in its energy new text end 11.26 new text begin conservation plan energy savings from electric utility infrastructure projects approved new text end 11.27 new text begin by the commission under section 216B.1636 or waste heat recovery converted into new text end 11.28 new text begin electricity projects that may count as energy savings in addition to the minimum energy new text end 11.29 new text begin savings goal of at least one percent for energy conservation improvements. Electric utility new text end 11.30 new text begin infrastructure projects must result in increased energy efficiency greater than that which new text end 11.31 new text begin would have occurred through normal maintenance activity. new text end 11.32     new text begin (e) An energy savings goal is not satisfied by attaining the revenue expenditure new text end 11.33 new text begin requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the energy new text end 11.34 new text begin savings goal established in this subdivision. new text end 11.35     new text begin (f) An association or utility is not required to make energy conservation investments new text end 11.36 new text begin to attain the energy savings goals of this subdivision that are not cost-effective even new text end 12.1 new text begin if the investment is necessary to attain the energy savings goals. For the purpose of new text end 12.2 new text begin this paragraph, in determining cost-effectiveness, the commissioner shall consider the new text end 12.3 new text begin costs and benefits to ratepayers, the utility, participants, and society. In addition, the new text end 12.4 new text begin commissioner shall consider the rate at which an association or municipal utility is new text end 12.5 new text begin increasing its energy savings and its expenditures on energy conservation. new text end 12.6     new text begin (g) On an annual basis, the commissioner shall produce and make publicly available new text end 12.7 new text begin a report on the annual energy savings and estimated carbon dioxide reductions achieved new text end 12.8 new text begin by the energy conservation improvement programs for the two most recent years for new text end 12.9 new text begin which data is available. The commissioner shall report on program performance both in new text end 12.10 new text begin the aggregate and for each entity filing an energy conservation improvement plan for new text end 12.11 new text begin approval or review by the commissioner. new text end 12.12     new text begin (h) By January 15, 2010, the commissioner shall report to the legislature whether the new text end 12.13 new text begin spending requirements under subdivisions 1a and 1b are necessary to achieve the energy new text end 12.14 new text begin savings goals established in this subdivision. new text end 12.15    Subd. 1d. Cooperative conservation investment increase phase-in new text begin Technical new text end 12.16 new text begin assistance new text end . The increase in required conservation improvement expenditures by a 12.17cooperative electric association that results from the amendments in Laws 2001, chapter 12.18212, article 8, section 6, to subdivision 1b, paragraph (a), clause (1), must be phased 12.19in as follows: 12.20    (1) at least 25 percent shall be effective in year 2002; 12.21    (2) at least 50 percent shall be effective in year 2003; 12.22    (3) at least 75 percent shall be effective in year 2004; and 12.23    (4) all of the increase shall be effective in year 2005 and thereafter. 12.24     new text begin The commissioner shall evaluate energy conservation improvement programs new text end 12.25 new text begin on the basis of cost-effectiveness and the reliability of the technologies employed. new text end 12.26 new text begin The commissioner shall, by order, establish, maintain, and update energy savings new text end 12.27 new text begin assumptions that must be used when filing energy conservation improvement programs. new text end 12.28 new text begin The commissioner shall establish an inventory of the most effective energy conservation new text end 12.29 new text begin programs, techniques, and technologies, and encourage all Minnesota utilities to new text end 12.30 new text begin implement them, where appropriate, in their service territories. The commissioner shall new text end 12.31 new text begin describe these programs in sufficient detail to provide a utility reasonable guidance new text end 12.32 new text begin concerning implementation. The commissioner shall prioritize the opportunities in new text end 12.33 new text begin order of potential energy savings and in order of cost-effectiveness. The commissioner new text end 12.34 new text begin may contract with a third party to carry out any of the commissioner's duties under new text end 12.35 new text begin this subdivision, and to obtain technical assistance to evaluate the effectiveness of any new text end 12.36 new text begin conservation improvement program. The commissioner may assess up to $800,000 new text end 13.1 new text begin annually until June 30, 2009, and $450,000 annually thereafter for the purposes of this new text end 13.2 new text begin subdivision. The assessments must be deposited in the state treasury and credited to the new text end 13.3 new text begin energy and conservation account created under subdivision 2a. An assessment made under new text end 13.4 new text begin this subdivision is not subject to the cap on assessments provided by section 216B.62, or new text end 13.5 new text begin any other law. new text end 13.6     new text begin Subd. 1e. new text end new text begin Applied research and development grants. new text end new text begin The commissioner may, by new text end 13.7 new text begin order, approve and make grants for applied research and development projects of general new text end 13.8 new text begin applicability that identify new technologies or strategies to maximize energy savings, new text end 13.9 new text begin improve the effectiveness of energy conservation programs, or document the carbon new text end 13.10 new text begin dioxide reductions from energy conservation programs. When approving projects, the new text end 13.11 new text begin commissioner shall consider proposals and comments from utilities and other interested new text end 13.12 new text begin parties. The commissioner may assess up to $3,600,000 annually for the purposes of this new text end 13.13 new text begin subdivision. The assessments must be deposited in the state treasury and credited to the new text end 13.14 new text begin energy and conservation account created under subdivision 2a. An assessment made under new text end 13.15 new text begin this subdivision is not subject to the cap on assessments provided by section 216B.62, or new text end 13.16 new text begin any other law. new text end 13.17     new text begin Subd. 1f. new text end new text begin Facilities energy efficiency. new text end new text begin (a) The commissioner of administration and new text end 13.18 new text begin the commissioner of commerce shall maintain and, as needed, revise the sustainable new text end 13.19 new text begin building design guidelines developed under section 16B.325. new text end 13.20     new text begin (b) The commissioner of administration and the commissioner of commerce shall new text end 13.21 new text begin maintain and update the benchmarking tool developed under Laws 2001, chapter 212, new text end 13.22 new text begin article 1, section 3, so that all public buildings can use the benchmarking tool to maintain new text end 13.23 new text begin energy use information for the purposes of establishing energy efficiency benchmarks, new text end 13.24 new text begin tracking building performance, and measuring the results of energy efficiency and new text end 13.25 new text begin conservation improvements. new text end 13.26     new text begin (c) The commissioner shall require that utilities include in their conservation new text end 13.27 new text begin improvement plans programs that facilitate professional engineering verification to qualify new text end 13.28 new text begin a building as Energy Star-labeled, Leadership in Energy and Environmental Design new text end 13.29 new text begin (LEED) certified, or Green Globes-certified. The state goal is to achieve certification of new text end 13.30 new text begin 1,000 commercial buildings as Energy Star-labeled, and 100 commercial buildings as new text end 13.31 new text begin LEED-certified or Green Globes-certified by December 31, 2010. new text end 13.32     new text begin (d) The commissioner may assess up to $500,000 annually for the purposes of this new text end 13.33 new text begin subdivision. The assessments must be deposited in the state treasury and credited to the new text end 13.34 new text begin energy and conservation account created under subdivision 2a. An assessment made under new text end 14.1 new text begin this subdivision is not subject to the cap on assessments provided by section 216B.62, or new text end 14.2 new text begin any other law. new text end 14.3    Subd. 2. Programs. (a) The commissioner may require public utilities to make 14.4investments and expenditures in energy conservation improvements, explicitly setting 14.5forth the interest rates, prices, and terms under which the improvements must be offered to 14.6the customers. The required programs must cover no more than a four-year new text begin three-year new text end 14.7period. Public utilities shall file conservation improvement plans by June 1, on a schedule 14.8determined by order of the commissioner, but at least every four new text begin three new text end years. Plans 14.9received by a public utility by June 1 must be approved or approved as modified by the 14.10commissioner by December 1 of that same year. The commissioner shall give special 14.11consideration and encouragement to programs that bring about significant net savings 14.12through the use of energy-efficient lighting. The commissioner shall evaluate the program 14.13on the basis of cost-effectiveness and the reliability of technologies employed. The 14.14commissioner's order must provide to the extent practicable for a free choice, by consumers 14.15participating in the program, of the device, method, material, or project constituting the 14.16energy conservation improvement and for a free choice of the seller, installer, or contractor 14.17of the energy conservation improvement, provided that the device, method, material, or 14.18project seller, installer, or contractor is duly licensed, certified, approved, or qualified, 14.19including under the residential conservation services program, where applicable. 14.20    (b) The commissioner may require a utility to make an energy conservation 14.21improvement investment or expenditure whenever the commissioner finds that the 14.22improvement will result in energy savings at a total cost to the utility less than the cost 14.23to the utility to produce or purchase an equivalent amount of new supply of energy. The 14.24commissioner shall nevertheless ensure that every public utility operate one or more 14.25programs under periodic review by the department. 14.26    (c) Each public utility subject to subdivision 1a may spend and invest annually up to 14.27ten percent of the total amount required to be spent and invested on energy conservation 14.28improvements under this section by the utility on research and development projects 14.29that meet the definition of energy conservation improvement in subdivision 1 and that 14.30are funded directly by the public utility. 14.31    (d) A public utility may not spend for or invest in energy conservation improvements 14.32that directly benefit a new text begin large energy facility or a new text end large electric customer facility for which 14.33the commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The 14.34commissioner shall consider and may require a utility to undertake a program suggested 14.35by an outside source, including a political subdivision or new text begin , new text end a nonprofit new text begin corporation, new text end or 14.36community organization. 15.1    (e) The commissioner may, by order, establish a list of programs that may be 15.2offered as energy conservation improvements by a public utility, municipal utility, 15.3cooperative electric association, or other entity providing conservation services pursuant 15.4to this section. The list of programs may include rebates for high-efficiency appliances, 15.5rebates or subsidies for high-efficiency lamps, small business energy audits, and building 15.6recommissioning. The commissioner may, by order, change this list to add or subtract 15.7programs as the commissioner determines is necessary to promote efficient and effective 15.8conservation programs. 15.9    (f) The commissioner shall ensure that a portion of the money spent on residential 15.10conservation improvement programs is devoted to programs that directly address the 15.11needs of renters and low-income persons, in proportion to the amount the utility has 15.12historically spent on such programs based on the most recent three-year average relative to 15.13the utility's total conservation spending under this section, unless an insufficient number of 15.14appropriate programs are available. 15.15    (g) new text begin (e) new text end A utility, a political subdivision, or a nonprofit or community organization 15.16that has suggested a program, the attorney general acting on behalf of consumers and 15.17small business interests, or a utility customer that has suggested a program and is not 15.18represented by the attorney general under section 8.33 may petition the commission to 15.19modify or revoke a department decision under this section, and the commission may do 15.20so if it determines that the program is not cost-effective, does not adequately address the 15.21residential conservation improvement needs of low-income persons, has a long-range 15.22negative effect on one or more classes of customers, or is otherwise not in the public 15.23interest. The commission shall reject a petition that, on its face, fails to make a reasonable 15.24argument that a program is not in the public interest. 15.25    (h) new text begin (f) new text end The commissioner may order a public utility to include, with the filing of the 15.26utility's proposed conservation improvement plan under paragraph (a), the results of an 15.27independent audit of the utility's conservation improvement programs and expenditures 15.28performed by the department or an auditor with experience in the provision of energy 15.29conservation and energy efficiency services approved by the commissioner and chosen by 15.30the utility. The audit must specify the energy savings or increased efficiency in the use 15.31of energy within the service territory of the utility that is the result of the spending and 15.32investments. The audit must evaluate the cost-effectiveness of the utility's conservation 15.33programs. 15.34    (i) Up to three percent of a utility's conservation spending obligation under this 15.35section may be used for program pre-evaluation, testing, and monitoring and program 15.36audit and evaluation. 16.1    Subd. 2a. Energy and conservation account. new text begin The energy and conservation new text end 16.2 new text begin account is established in the special revenue fund in the state treasury. new text end The commissioner 16.3must deposit money contributed under subdivisions 1a and 1b new text begin assessed or contributed new text end 16.4 new text begin under subdivisions 1d, 1e, 1f, and 7 new text end in the new text begin state treasury and credit it to the new text end energy and 16.5conservation account in the general new text begin special revenue new text end fund. Money in the account is 16.6appropriated to the department new text begin commissioner new text end for programs designed to meet the energy 16.7conservation needs of low-income persons and to make energy conservation improvements 16.8in areas not adequately served under subdivision 2, including research and development 16.9projects included in the definition of energy conservation improvement in subdivision 1 new text begin new text end 16.10 new text begin the purposes of subdivisions 1d, 1e, 1f, and 7 new text end . Interest on money in the account accrues to 16.11the account. Using information collected under section 216C.02, subdivision 1, paragraph 16.12(b) , the commissioner must, to the extent possible, allocate enough money to programs 16.13for low-income persons to assure that their needs are being adequately addressed. 16.14The commissioner must request the commissioner of finance to transfer money from 16.15the account to the commissioner of education for an energy conservation program for 16.16low-income persons. In establishing programs, the commissioner must consult political 16.17subdivisions and nonprofit and community organizations, especially organizations 16.18engaged in providing energy and weatherization assistance to low-income persons. At 16.19least one program must address the need for energy conservation improvements in areas 16.20in which a high percentage of residents use fuel oil or propane to fuel their source of 16.21home heating. The commissioner may contract with a political subdivision, a nonprofit 16.22or community organization, a public utility, a municipality, or a cooperative electric 16.23association to implement its programs. The commissioner may provide grants to any 16.24person to conduct research and development projects in accordance with this section. 16.25    Subd. 2b. Recovery of expenses. The commission shall allow a utility to recover 16.26expenses resulting from a conservation improvement program required by the department 16.27and contributions new text begin and assessments new text end to the energy and conservation account, unless the 16.28recovery would be inconsistent with a financial incentive proposal approved by the 16.29commission. new text begin The commission shall allow a cooperative electric association subject new text end 16.30 new text begin to rate regulation under section 216B.026, to recover expenses resulting from energy new text end 16.31 new text begin conservation improvement programs, load management programs, and assessments new text end 16.32 new text begin and contributions to the energy and conservation account unless the recovery would be new text end 16.33 new text begin inconsistent with a financial incentive proposal approved by the commission. new text end In addition, 16.34a utility may file annually, or the Public Utilities Commission may require the utility 16.35to file, and the commission may approve, rate schedules containing provisions for the 16.36automatic adjustment of charges for utility service in direct relation to changes in the 17.1expenses of the utility for real and personal property taxes, fees, and permits, the amounts 17.2of which the utility cannot control. A public utility is eligible to file for adjustment for real 17.3and personal property taxes, fees, and permits under this subdivision only if, in the year 17.4previous to the year in which it files for adjustment, it has spent or invested at least 1.75 17.5percent of its gross revenues from provision of electric service, excluding gross operating 17.6revenues from electric service provided in the state to large electric customer facilities for 17.7which the commissioner has issued an exemption under subdivision 1a, paragraph (b), and 17.80.6 percent of its gross revenues from provision of gas service, excluding gross operating 17.9revenues from gas services provided in the state to large electric customer facilities for 17.10which the commissioner has issued an exemption under subdivision 1a, paragraph (b), for 17.11that year for energy conservation improvements under this section. 17.12     new text begin Subd. 2c. new text end new text begin Performance incentives. new text end new text begin By December 31, 2008, the commission new text end 17.13 new text begin shall review any incentive plan for energy conservation improvement it has approved new text end 17.14 new text begin under section 216B.16, subdivision 6c, and adjust the utility performance incentives to new text end 17.15 new text begin recognize making progress toward and meeting the energy savings goals established new text end 17.16 new text begin in subdivision 1c. new text end 17.17    Subd. 3. Ownership of energy conservation improvement. An energy 17.18conservation improvement made to or installed in a building in accordance with this 17.19section, except systems owned by the utility and designed to turn off, limit, or vary the 17.20delivery of energy, are the exclusive property of the owner of the building except to the 17.21extent that the improvement is subjected to a security interest in favor of the utility in case 17.22of a loan to the building owner. The utility has no liability for loss, damage or injury 17.23caused directly or indirectly by an energy conservation improvement except for negligence 17.24by the utility in purchase, installation, or modification of the product. 17.25    Subd. 4. Federal law prohibitions. If investments by public utilities in energy 17.26conservation improvements are in any manner prohibited or restricted by federal law 17.27and there is a provision under which the prohibition or restriction may be waived, then 17.28the commission, the governor, or any other necessary state agency or officer shall take 17.29all necessary and appropriate steps to secure a waiver with respect to those public utility 17.30investments in energy conservation improvements included in this section. 17.31    Subd. 5. Efficient lighting program. (a) Each public utility, cooperative electric 17.32association, and municipal utility that provides electric service to retail customers shall 17.33include as part of its conservation improvement activities a program to strongly encourage 17.34the use of fluorescent and high-intensity discharge lamps. The program must include at 18.1least a public information campaign to encourage use of the lamps and proper management 18.2of spent lamps by all customer classifications. 18.3    (b) A public utility that provides electric service at retail to 200,000 or more 18.4customers shall establish, either directly or through contracts with other persons, including 18.5lamp manufacturers, distributors, wholesalers, and retailers and local government units, a 18.6system to collect for delivery to a reclamation or recycling facility spent fluorescent and 18.7high-intensity discharge lamps from households and from small businesses as defined in 18.8section 645.445 that generate an average of fewer than ten spent lamps per year. 18.9    (c) A collection system must include establishing reasonably convenient locations 18.10for collecting spent lamps from households and financial incentives sufficient to encourage 18.11spent lamp generators to take the lamps to the collection locations. Financial incentives 18.12may include coupons for purchase of new fluorescent or high-intensity discharge lamps, 18.13a cash back system, or any other financial incentive or group of incentives designed to 18.14collect the maximum number of spent lamps from households and small businesses that is 18.15reasonably feasible. 18.16    (d) A public utility that provides electric service at retail to fewer than 200,000 18.17customers, a cooperative electric association, or a municipal utility that provides electric 18.18service at retail to customers may establish a collection system under paragraphs (b) and 18.19(c) as part of conservation improvement activities required under this section. 18.20    (e) The commissioner of the Pollution Control Agency may not, unless clearly 18.21required by federal law, require a public utility, cooperative electric association, or 18.22municipality that establishes a household fluorescent and high-intensity discharge lamp 18.23collection system under this section to manage the lamps as hazardous waste as long as 18.24the lamps are managed to avoid breakage and are delivered to a recycling or reclamation 18.25facility that removes mercury and other toxic materials contained in the lamps prior to 18.26placement of the lamps in solid waste. 18.27    (f) If a public utility, cooperative electric association, or municipal utility contracts 18.28with a local government unit to provide a collection system under this subdivision, 18.29the contract must provide for payment to the local government unit of all the unit's 18.30incremental costs of collecting and managing spent lamps. 18.31    (g) All the costs incurred by a public utility, cooperative electric association, or 18.32municipal utility for promotion and collection of fluorescent and high-intensity discharge 18.33lamps under this subdivision are conservation improvement spending under this section. 18.34    Subd. 6. Renewable energy research. (a) A public utility that owns a nuclear 18.35generation facility in the state shall spend five percent of the total amount that utility 18.36is required to spend under this section to support basic and applied research and 19.1demonstration activities at the University of Minnesota Initiative for Renewable Energy 19.2and the Environment for the development of renewable energy sources and technologies. 19.3The utility shall transfer the required amount to the University of Minnesota on or before 19.4July 1 of each year and that annual amount shall be deducted from the amount of money the 19.5utility is required to spend under this section. The University of Minnesota shall transfer 19.6at least ten percent of these funds to at least one rural campus or experiment station. 19.7    (b) Research funded under this subdivision shall include: 19.8    (1) development of environmentally sound production, distribution, and use of 19.9energy, chemicals, and materials from renewable sources; 19.10    (2) processing and utilization of agricultural and forestry plant products and other 19.11bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and 19.12materials using a variety of means including biocatalysis, biorefining, and fermentation; 19.13    (3) conversion of state wind resources to hydrogen for energy storage and 19.14transportation to areas of energy demand; 19.15    (4) improvements in scalable hydrogen fuel cell technologies; and 19.16    (5) production of hydrogen from bio-based, renewable sources; and sequestration 19.17of carbon. 19.18    (c) Notwithstanding other law to the contrary, the utility may, but is not required to, 19.19spend more than two percent of its gross operating revenues from service provided in this 19.20state under this section or section 216B.2411. 19.21    (d) This subdivision expires June 30, 2008. 19.22     new text begin Subd. 7. new text end new text begin Low-income programs. new text end new text begin (a) The commissioner shall ensure that each new text end 19.23 new text begin utility and association provides low-income programs. When approving spending and new text end 19.24 new text begin energy savings goals for low-income programs, the commissioner shall consider historic new text end 19.25 new text begin spending and participation levels, energy savings for low-income programs, and the new text end 19.26 new text begin number of low-income persons residing in the utility's service territory. A utility that new text end 19.27 new text begin furnishes gas service must spend at least 0.2 percent of its gross operating revenue from new text end 19.28 new text begin residential customers in the state on low-income programs. A utility or association that new text end 19.29 new text begin furnishes electric service must spend at least 0.1 percent of its gross operating revenue new text end 19.30 new text begin from residential customers in the state on low-income programs. For a generation and new text end 19.31 new text begin transmission cooperative association, this requirement shall apply to each association's new text end 19.32 new text begin members' aggregate gross operating revenue from sale of electricity to residential new text end 19.33 new text begin customers in the state. Beginning in 2010, a utility or association that furnishes electric new text end 19.34 new text begin service must spend 0.2 percent of its gross operating revenue from residential customers new text end 19.35 new text begin in the state on low-income programs. new text end 20.1     new text begin (b) To meet the requirements of paragraph (a), a utility or association may contribute new text end 20.2 new text begin money to the energy and conservation account. An energy conservation improvement plan new text end 20.3 new text begin must state the amount, if any, of low-income energy conservation improvement funds the new text end 20.4 new text begin utility or association will contribute to the energy and conservation account. Contributions new text end 20.5 new text begin must be remitted to the commissioner by February 1 of each year. new text end 20.6     new text begin (c) The commissioner shall establish low-income programs to utilize money new text end 20.7 new text begin contributed to the energy and conservation account under paragraph (b). In establishing new text end 20.8 new text begin low-income programs, the commissioner shall consult political subdivisions, utilities, and new text end 20.9 new text begin nonprofit and community organizations, especially organizations engaged in providing new text end 20.10 new text begin energy and weatherization assistance to low-income persons. Money contributed to new text end 20.11 new text begin the energy and conservation account under paragraph (b) must provide programs for new text end 20.12 new text begin low-income persons, including low-income renters, in the service territory of the utility or new text end 20.13 new text begin association providing the money. The commissioner shall record and report expenditures new text end 20.14 new text begin and energy savings achieved as a result of low-income programs funded through the new text end 20.15 new text begin energy and conservation account in the report required under subdivision 1c, paragraph new text end 20.16 new text begin (g). The commissioner may contract with a political subdivision, nonprofit or community new text end 20.17 new text begin organization, public utility, municipality, or cooperative electric association to implement new text end 20.18 new text begin low-income programs funded through the energy and conservation account. new text end 20.19     new text begin (d) A utility or association may petition the commissioner to modify its required new text end 20.20 new text begin spending under paragraph (a) if the utility or association and the commissioner have been new text end 20.21 new text begin unable to expend the amount required under paragraph (a) for three consecutive years. new text end 20.22     new text begin Subd. 8. new text end new text begin Assessment. new text end new text begin The commission or department may assess utilities subject to new text end 20.23 new text begin this section in proportion to their respective gross operating revenue from sales of gas or new text end 20.24 new text begin electric service within the state during the last calendar year to carry out the purposes of new text end 20.25 new text begin subdivisions 1d, 1e, and 1f. Those assessments are not subject to the cap on assessments new text end 20.26 new text begin provided by section 216B.62, or any other law. new text end 20.27    Sec. 6. new text begin [216B.2412] DECOUPLING OF ENERGY SALES FROM REVENUES. new text end 20.28     new text begin Subdivision 1. new text end new text begin Definition and purpose. new text end new text begin For the purpose of this section, new text end 20.29 new text begin "decoupling" means a regulatory tool designed to separate a utility's revenue from changes new text end 20.30 new text begin in energy sales. The purpose of decoupling is to reduce a utility's disincentive to promote new text end 20.31 new text begin energy efficiency. new text end 20.32     new text begin Subd. 2. new text end new text begin Decoupling criteria. new text end new text begin The commission shall, by order, establish criteria new text end 20.33 new text begin and standards for decoupling. The commission shall design the criteria and standards to new text end 20.34 new text begin mitigate the impact on public utilities of the energy savings goals under section 216B.241 new text end 21.1 new text begin without adversely affecting utility ratepayers. In designing the criteria, the commission new text end 21.2 new text begin shall consider energy efficiency, weather, and cost of capital, among other factors. new text end 21.3     new text begin Subd. 3. new text end new text begin Pilot programs. new text end new text begin The commission shall allow one or more rate-regulated new text end 21.4 new text begin utilities to participate in a pilot program to assess the merits of a rate-decoupling strategy new text end 21.5 new text begin to promote energy efficiency and conservation. Each pilot program must utilize the new text end 21.6 new text begin criteria and standards established in subdivision 2 and be designed to determine whether new text end 21.7 new text begin a rate-decoupling strategy achieves energy savings. On or before a date established by new text end 21.8 new text begin the commission, the commission shall require electric and gas utilities that intend to new text end 21.9 new text begin implement a decoupling program to file a decoupling pilot plan, which shall be approved new text end 21.10 new text begin or approved as modified by the commission. A pilot program may not exceed three years new text end 21.11 new text begin in length. Any extension beyond three years can only be approved in a general rate case, new text end 21.12 new text begin unless that decoupling program was previously approved as part of a general rate case. new text end 21.13 new text begin The commission shall report on the programs annually to the chairs of the house of new text end 21.14 new text begin representatives and senate committees with primary jurisdiction over energy policy. new text end 21.15    Sec. 7. new text begin [216C.03] STATE GOVERNMENT ENERGY SAVINGS PLAN. new text end 21.16     new text begin The commissioner of commerce, in coordination with the commissioners of the new text end 21.17 new text begin agencies listed in section 15.01, the chancellor of the Minnesota State Colleges and new text end 21.18 new text begin Universities, and the president of the University of Minnesota, shall identify policy new text end 21.19 new text begin options, barriers, and economic benefits and costs for state government operations to new text end 21.20 new text begin achieve the energy savings goals in section 216B.2401 and the resulting carbon emission new text end 21.21 new text begin reductions. The commissioner of commerce must issue a report to the legislature by new text end 21.22 new text begin February 1, 2008. new text end 21.23    Sec. 8. new text begin REVISOR'S INSTRUCTION. new text end 21.24     new text begin The revisor of statutes shall change the reference to "section 216B.241, subdivision new text end 21.25 new text begin 1, paragraph (i)" found in section 216B.2411, subdivision 1, to read "section 216B.241, new text end 21.26 new text begin subdivision 1." new text end 21.27    Sec. 9. new text begin EFFECTIVE DATE. new text end 21.28     new text begin This article is effective July 1, 2007. new text end 21.29ARTICLE 3 21.30MISCELLANEOUS 21.31    Section 1. Minnesota Statutes 2006, section 123B.65, subdivision 2, is amended to read: 22.1    Subd. 2. Energy efficiency contract. (a) Notwithstanding any law to the contrary, 22.2a school district may enter into a guaranteed energy savings contract with a qualified 22.3provider to significantly reduce energy or operating costs. 22.4    (b) Before entering into a contract under this subdivision, the board shall comply 22.5with clauses (1) to (5). 22.6    (1) The board must seek proposals from multiple qualified providers by publishing 22.7notice of the proposed guaranteed energy savings contract in the board's official newspaper 22.8and in other publications if the board determines that additional publication is necessary to 22.9notify multiple qualified providers. 22.10    (2) The school board must select the qualified provider that best meets the needs of 22.11the board. The board must provide public notice of the meeting at which it will select the 22.12qualified provider. 22.13    (3) The contract between the board and the qualified provider must describe the 22.14methods that will be used to calculate the costs of the contract and the operational and 22.15energy savings attributable to the contract. 22.16    (4) The qualified provider shall issue a report to the board giving a description of all 22.17costs of installations, modifications, or remodeling, including costs of design, engineering, 22.18installation, maintenance, repairs, or debt service, and giving detailed calculations of the 22.19amounts by which energy or operating costs will be reduced and the projected payback 22.20schedule in years. 22.21    (5) The board must provide published notice of the meeting in which it proposes to 22.22award the contract, the names of the parties to the proposed contract, and the contract's 22.23purpose. 22.24     new text begin (c) The board must provide a copy of any contract entered into under paragraph (a) new text end 22.25 new text begin and the report provided under paragraph (b), clause (4), to the commissioner of commerce new text end 22.26 new text begin within 30 days of the effective date of the contract. new text end 22.27    Sec. 2. Minnesota Statutes 2006, section 216C.052, subdivision 8a, as added by Laws 22.282007, chapter 57, article 2, section 26, is amended to read: 22.29    Subd. 8a. Manitoba Hydro information. By January 1, 2008, and each year 22.30thereafter, the task force shall request the Manitoba Hydro-Electric Board to provide 22.31the following information for each community that is a signatory to the Northern Flood 22.32Agreement, including South Indian Lake: 22.33    (1) median household income and number of residents employed full time and 22.34part time; 23.1    (2) the number of outstanding claims filed against Manitoba Hydro by individuals 23.2and communities and the number of claims settled by Manitoba Hydro; and 23.3    (3) the amount of shoreline damaged by flooding and erosion and the amount of 23.4shoreline restored and cleaned. 23.5     new text begin Nothing in this section shall be construed as a directive to the government of Canada new text end 23.6 new text begin or the province of Manitoba. new text end 23.7    For the purposes of this subdivision, "Northern Flood Agreement" means the 23.8agreement entered into by the Northern Flood Committee, Incorporated, the Manitoba 23.9Hydro-Electric Board, the province of Manitoba, and the government of Canada on 23.10December 16, 1977. 23.11    Sec. 3. Minnesota Statutes 2006, section 216C.31, is amended to read: 23.12216C.31 ENERGY AUDIT PROGRAMS. 23.13    The commissioner shall develop and administer state programs of energy audits of 23.14residential and commercial buildings including those required by United States Code, title 23.1542, sections 8211 to 8222 and sections 8281 to 8284. The commissioner shall continue 23.16to administer the residential energy audit program as originally established under the 23.17provisions of United States Code, title 42, sections 8211 to 8222; through July 1, 1986 23.18irrespective of any prior expiration date provided in United States Code, title 42, section 23.198216. The commissioner may approve temporary programs if they are likely to result 23.20in the installation of as many conservation measures as would have been installed had 23.21the utility met the requirements of United States Code, title 42, sections 8211 to 8222. 23.22The Consumer Services Division and the attorney general may release information on 23.23consumer comments about the operation of the program to the commissioner new text begin the training new text end 23.24 new text begin and qualifications necessary for the auditing of residential and commercial buildings under new text end 23.25 new text begin the auspices of a program created under section 216B.241 new text end . 23.26    Sec. 4. Minnesota Statutes 2006, section 471.345, subdivision 13, is amended to read: 23.27    Subd. 13. Energy efficiency projects. The following definitions apply to this 23.28subdivision. 23.29    (a) "Energy conservation measure" means a training program or facility alteration 23.30designed to reduce energy consumption or operating costs and includes: 23.31    (1) insulation of the building structure and systems within the building; 23.32    (2) storm windows and doors, caulking or weatherstripping, multiglazed windows 23.33and doors, heat absorbing or heat reflective glazed and coated window and door 24.1systems, additional glazing, reductions in glass area, and other window and door system 24.2modifications that reduce energy consumption; 24.3    (3) automatic energy control systems; 24.4    (4) heating, ventilating, or air conditioning system modifications or replacements; 24.5    (5) replacement or modifications of lighting fixtures to increase the energy efficiency 24.6of the lighting system without increasing the overall illumination of a facility, unless an 24.7increase in illumination is necessary to conform to the applicable state or local building 24.8code for the lighting system after the proposed modifications are made; 24.9    (6) energy recovery systems; 24.10    (7) cogeneration systems that produce steam or forms of energy such as heat, as well 24.11as electricity, for use primarily within a building or complex of buildings; 24.12    (8) energy conservation measures that provide long-term operating cost reductions. 24.13    (b) "Guaranteed energy savings contract" means a contract for the evaluation 24.14and recommendations of energy conservation measures, and for one or more energy 24.15conservation measures. The contract must provide that all payments, except obligations 24.16on termination of the contract before its expiration, are to be made over time, but not to 24.17exceed 15 years from the date of final installation, and the savings are guaranteed to the 24.18extent necessary to make payments for the systems. 24.19    (c) "Qualified provider" means a person or business experienced in the design, 24.20implementation, and installation of energy conservation measures. A qualified provider 24.21to whom the contract is awarded shall give a sufficient bond to the municipality for its 24.22faithful performance. 24.23    Notwithstanding any law to the contrary, a municipality may enter into a guaranteed 24.24energy savings contract with a qualified provider to significantly reduce energy or 24.25operating costs. 24.26    Before entering into a contract under this subdivision, the municipality shall provide 24.27published notice of the meeting in which it proposes to award the contract, the names of 24.28the parties to the proposed contract, and the contract's purpose. 24.29    Before installation of equipment, modification, or remodeling, the qualified provider 24.30shall first issue a report, summarizing estimates of all costs of installations, modifications, 24.31or remodeling, including costs of design, engineering, installation, maintenance, repairs, 24.32or debt service, and estimates of the amounts by which energy or operating costs will be 24.33reduced. 24.34    A guaranteed energy savings contract that includes a written guarantee that savings 24.35will meet or exceed the cost of energy conservation measures is not subject to competitive 25.1bidding requirements of section 471.345 or other law or city charter. The contract is 25.2not subject to section 123B.52. 25.3    A municipality may enter into a guaranteed energy savings contract with a qualified 25.4provider if, after review of the report, it finds that the amount it would spend on the energy 25.5conservation measures recommended in the report is not likely to exceed the amount 25.6to be saved in energy and operation costs over 15 years from the date of installation if 25.7the recommendations in the report were followed, and the qualified provider provides a 25.8written guarantee that the energy or operating cost savings will meet or exceed the costs 25.9of the system. The guaranteed energy savings contract may provide for payments over 25.10a period of time, not to exceed 15 years. 25.11    A municipality may enter into an installment payment contract for the purchase and 25.12installation of energy conservation measures. The contract must provide for payments 25.13of not less than 1/15 of the price to be paid within two years from the date of the first 25.14operation, and the remaining costs to be paid monthly, not to exceed a 15-year term from 25.15the date of the first operation. 25.16     new text begin A municipality entering into a guaranteed energy savings contract shall provide a new text end 25.17 new text begin copy of the contract and the report from the qualified provider to the commissioner of new text end 25.18 new text begin commerce within 30 days of the effective date of the contract. new text end 25.19    Guaranteed energy savings contracts may extend beyond the fiscal year in which 25.20they become effective. The municipality shall include in its annual appropriations measure 25.21for each later fiscal year any amounts payable under guaranteed energy savings contracts 25.22during the year. Failure of a municipality to make such an appropriation does not affect 25.23the validity of the guaranteed energy savings contract or the municipality's obligations 25.24under the contracts. 25.25    Sec. 5. Minnesota Statutes 2006, section 504B.161, subdivision 1, is amended to read: 25.26    Subdivision 1. Requirements. new text begin (a) new text end In every lease or license of residential premises, 25.27the landlord or licensor covenants: 25.28    (1) that the premises and all common areas are fit for the use intended by the parties; 25.29    (2) to keep the premises in reasonable repair during the term of the lease or license, 25.30except when the disrepair has been caused by the willful, malicious, or irresponsible 25.31conduct of the tenant or licensee or a person under the direction or control of the tenant or 25.32licensee; and 25.33    (3) to new text begin make the premises reasonably energy efficient by installing weatherstripping, new text end 25.34 new text begin caulking, storm windows, and storm doors when any such measure will result in energy new text end 25.35 new text begin procurement cost savings, based on current and projected average residential energy costs new text end 26.1 new text begin in Minnesota, that will exceed the cost of implementing that measure, including interest, new text end 26.2 new text begin amortized over the ten-year period following the incurring of the cost; and new text end 26.3     new text begin (4) to new text end maintain the premises in compliance with the applicable health and safety 26.4laws of the state, including the weatherstripping, caulking, storm window, and storm door 26.5energy efficiency standards for renter-occupied residences prescribed by section 216C.27, 26.6subdivisions 1 and 3 , and of the local units of government where the premises are located 26.7during the term of the lease or license, except when violation of the health and safety 26.8laws has been caused by the willful, malicious, or irresponsible conduct of the tenant or 26.9licensee or a person under the direction or control of the tenant or licensee. 26.10     new text begin (b) new text end The parties to a lease or license of residential premises may not waive or modify 26.11the covenants imposed by this section. 26.12    Sec. 6. new text begin NUCLEAR ENERGY STUDY. new text end 26.13     new text begin The legislative electric energy task force shall conduct an analysis of the economic new text end 26.14 new text begin and environmental costs of constructing a 600-megawatt nuclear-powered electric new text end 26.15 new text begin generating plant in Minnesota. The analysis must include predesign, design and new text end 26.16 new text begin construction costs, and waste storage costs. The study must compare these costs with new text end 26.17 new text begin the costs of constructing a pulverized coal plant with carbon capture and sequestration new text end 26.18 new text begin technology and a coal-gasification plant with carbon capture and sequestration technology. new text end 26.19 new text begin The study's findings must be submitted in a report to the chairs and ranking minority new text end 26.20 new text begin members of the committees of the house of representatives and senate with primary new text end 26.21 new text begin jurisdiction over energy policy by March 1, 2008. new text end 26.22    Sec. 7. new text begin REPEALER. new text end 26.23 new text begin Minnesota Statutes 2006, sections 216B.165; 216C.27; and 216C.30, subdivision 5, new text end new text begin new text end 26.24 new text begin and new text end new text begin Minnesota Rules, parts 7635.0100; 7635.0110; 7635.0120; 7635.0130; 7635.0140; new text end 26.25 new text begin 7635.0150; 7635.0160; 7635.0170; 7635.0180; 7635.0200; 7635.0210; 7635.0220; new text end 26.26 new text begin 7635.0230; 7635.0240; 7635.0250; 7635.0260; 7635.0300; 7635.0310; 7635.0320; new text end 26.27 new text begin 7635.0330; 7635.0340; 7635.0400; 7635.0410; 7635.0420; 7635.0500; 7635.0510; new text end 26.28 new text begin 7635.0520; 7635.0530; 7635.0600; 7635.0610; 7635.0620; 7635.0630; 7635.0640; new text end 26.29 new text begin 7635.1000; 7635.1010; 7635.1020; 7635.1030; 7655.0100; 7655.0120; 7655.0200; new text end 26.30 new text begin 7655.0210; 7655.0220; 7655.0230; 7655.0240; 7655.0250; 7655.0260; 7655.0270; new text end 26.31 new text begin 7655.0280; 7655.0290; 7655.0300; 7655.0310; 7655.0320; 7655.0330; 7655.0400; new text end 26.32 new text begin 7655.0410; and 7655.0420, new text end new text begin are repealed, effective July 1, 2007. new text end 26.33    Sec. 8. new text begin EFFECTIVE DATE. new text end 26.34     new text begin This article is effective July 1, 2007. new text end 27.1ARTICLE 4 27.2C-BED AND RELATED ISSUES 27.3    Section 1. Minnesota Statutes 2006, section 216B.1612, subdivision 1, is amended to 27.4read: 27.5    Subdivision 1. Tariff establishment. A tariff shall be established to optimize local, 27.6regional, and state benefits from wind new text begin renewable new text end energy development and to facilitate 27.7widespread development of community-based wind new text begin renewable new text end energy projects throughout 27.8Minnesota. 27.9    Sec. 2. Minnesota Statutes 2006, section 216B.1612, subdivision 2, is amended to read: 27.10    Subd. 2. Definitions. (a) The terms used in this section have the meanings given 27.11them in this subdivision. 27.12    (b) "C-BED tariff" or "tariff" means a community-based energy development tariff. 27.13    (c) "Qualifying owner" means: 27.14    (1) a Minnesota resident; 27.15    (2) a limited liability company that is organized under the laws of this state new text begin chapter new text end 27.16 new text begin 322B new text end and that is made up of members who are Minnesota residents; 27.17    (3) a Minnesota nonprofit organization organized under chapter 317A; 27.18    (4) a Minnesota cooperative association organized under chapter 308A or 308B, 27.19other than new text begin including new text end a rural electric cooperative association or a generation and 27.20transmission cooperative new text begin on behalf of and at the request of a member distribution utility new text end ; 27.21    (5) a Minnesota political subdivision or local government other than new text begin including, new text end 27.22 new text begin but not limited to, new text end a municipal electric utility new text begin , new text end or new text begin a new text end municipal power agency new text begin on behalf new text end 27.23 new text begin of and at the request of a member distribution utility new text end , including, but not limited to, a 27.24county, statutory or home rule charter city, town, school district, or public or private 27.25higher education institution or any other local or regional governmental organization such 27.26as a board, commission, or association; or 27.27    (6) a tribal council. 27.28    (d) "Net present value rate" means a rate equal to the net present value of the 27.29nominal payments to a project divided by the total expected energy production of the 27.30project over the life of its power purchase agreement. 27.31    (e) "Standard reliability criteria" means: 27.32    (1) can be safely integrated into and operated within the utility's grid without causing 27.33any adverse or unsafe consequences; and 27.34    (2) is consistent with the utility's resource needs as identified in its most recent 27.35resource plan submitted under section 216B.2422. 28.1    (f) new text begin "Renewable" refers to a technology listed in section 216B.1691, subdivision 1, new text end 28.2 new text begin paragraph (a). new text end 28.3     new text begin (g) new text end "Community-based energy new text begin development new text end project" or "C-BED project" means 28.4a new wind new text begin renewable new text end energy project that new text begin either as a stand-alone project or part of a new text end 28.5 new text begin partnership under subdivision 8 new text end : 28.6    (1) has no single qualifying owner owning more than 15 percent of a C-BED new text begin wind new text end 28.7 new text begin energy new text end project that consists of more than two turbines; or new text begin unless: (i) the C-BED wind new text end 28.8 new text begin energy project consists of only one or two turbines; or (ii) the qualifying owner is a public new text end 28.9 new text begin entity listed under paragraph (b), clause (5), that is not a municipal utility; new text end 28.10    (2) for C-BED projects of one or two turbines, is owned entirely by one or more 28.11qualifying owners, with new text begin demonstrates that new text end at least 51 percent of the total financial benefits new text begin new text end 28.12 new text begin gross revenues from a power purchase agreement new text end over the life of the project flowing 28.13 new text begin will flow new text end to qualifying owners new text begin and other local entities new text end ; and 28.14    (3) has a resolution of support adopted by the county board of each county in which 28.15the project is to be located, or in the case of a project located within the boundaries of a 28.16reservation, the tribal council for that reservation. 28.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 28.18    Sec. 3. Minnesota Statutes 2006, section 216B.1612, subdivision 3, is amended to read: 28.19    Subd. 3. Tariff rate. (a) The tariff described in subdivision 4 must have a rate 28.20schedule that allows for a rate up to a 2.7 cents per kilowatt-hour net present value rate 28.21over the 20-year life of the power purchase agreement. The tariff must provide for a rate 28.22that is higher in the first ten years of the power purchase agreement than in the last ten 28.23years. The discount rate required to calculate the net present value must be the utility's 28.24normal discount rate used for its other business purposes. 28.25    (b) The commission shall consider mechanisms to encourage the aggregation 28.26of C-BED projects. 28.27    (c) The commission shall require that qualifying new text begin and nonqualifying new text end owners provide 28.28sufficient security to secure performance under the power purchase agreement, and shall 28.29prohibit the transfer of the C-BED project to a nonqualifying owner during the initial 28.3020 years of the contract. 28.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 28.32    Sec. 4. Minnesota Statutes 2006, section 216B.1612, subdivision 4, is amended to read: 28.33    Subd. 4. Utilities to offer tariff. By December 1, 2005 new text begin 2007 new text end , each public utility 28.34providing electric service at retail shall file for commission approval a community-based 29.1energy development tariff consistent with subdivision 3. Within 90 days of the 29.2first commission approval order under this subdivision, each municipal power 29.3agency and generation and transmission cooperative electric association shall adopt a 29.4community-based energy development tariff as consistent as possible with subdivision 3. 29.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.6    Sec. 5. Minnesota Statutes 2006, section 216B.1612, subdivision 5, is amended to read: 29.7    Subd. 5. Priority for C-BED projects. (a) A utility subject to section 216B.1691 29.8that needs to construct new generation, or purchase the output from new generation, as 29.9part of its plan to satisfy its good faith objective new text begin and standard new text end under that section should new text begin new text end 29.10 new text begin must new text end take reasonable steps to determine if one or more C-BED projects are available that 29.11meet the utility's cost and reliability requirements, applying standard reliability criteria, to 29.12fulfill some or all of the identified need at minimal impact to customer rates. 29.13Nothing in this section shall be construed to obligate a utility to enter into a power 29.14purchase agreement under a C-BED tariff developed under this section. 29.15    (b) Each utility shall include in its resource plan submitted under section 216B.2422 29.16a description of its efforts to purchase energy from C-BED projects, including a list of the 29.17projects under contract and the amount of C-BED energy purchased. 29.18    (c) The commission shall consider the efforts and activities of a utility to purchase 29.19energy from C-BED projects when evaluating its good faith effort towards meeting the 29.20renewable energy objective under section 216B.1691. 29.21     new text begin (d) A municipal power agency or generation and transmission cooperative shall, new text end 29.22 new text begin when issuing a request for proposals for C-BED projects to satisfy its standard obligation new text end 29.23 new text begin under section 216B.1691, provide notice to its member distribution utilities that they new text end 29.24 new text begin may propose, in partnership with other qualifying owners, a C-BED project for the new text end 29.25 new text begin consideration of the municipal power agency or generation and transmission cooperative. new text end 29.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.27    Sec. 6. Minnesota Statutes 2006, section 216B.1612, subdivision 7, is amended to read: 29.28    Subd. 7. Other C-BED tariff issues. (a) A community-based project developer 29.29and a utility shall negotiate the rate and power purchase agreement terms consistent with 29.30the tariff established under subdivision 4. 29.31    (b) At the discretion of the developer, a community-based project developer and 29.32a utility may negotiate a power purchase agreement with terms different from the tariff 29.33established under subdivision 4. 30.1    (c) A qualifying owner, or any combination of qualifying owners, may develop a 30.2joint venture project with a nonqualifying wind new text begin renewable new text end energy project developer. 30.3However, the terms of the C-BED tariff may only apply to the portion of the energy 30.4production of the total project that is directly proportional to the equity share of the project 30.5owned by the qualifying owners. 30.6    (d) A project that is operating under a power purchase agreement under a C-BED 30.7tariff is not eligible for net energy billing under section 216B.164, subdivision 3, or for 30.8production incentives under section 216C.41. 30.9    (e) A public utility must receive commission approval of a power purchase 30.10agreement for a C-BED tariffed project. The commission shall provide the utility's 30.11ratepayers an opportunity to address the reasonableness of the proposed power purchase 30.12agreement. Unless a party objects to a contract within 30 days of submission of the 30.13contract to the commission the contract is deemed approved. 30.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.15    Sec. 7. Minnesota Statutes 2006, section 216B.1612, is amended by adding a 30.16subdivision to read: 30.17     new text begin Subd. 8. new text end new text begin Community energy partnerships. new text end new text begin A utility providing electric service new text end 30.18 new text begin to retail or wholesale customers in Minnesota and an independent power producer may, new text end 30.19 new text begin subject to the limits specified in this section, participate in a community-based energy new text end 30.20 new text begin project, including as an owner, equity partner, or provider of technical or financial new text end 30.21 new text begin assistance. new text end 30.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.23    Sec. 8. Minnesota Statutes 2006, section 216B.1645, is amended by adding a 30.24subdivision to read: 30.25     new text begin Subd. 2b. new text end new text begin Cost recovery for owned renewable facilities. new text end new text begin (a) A utility may petition new text end 30.26 new text begin the commission to approve a rate schedule that provides for the automatic adjustment of new text end 30.27 new text begin charges to recover prudently incurred investments, expenses, or costs associated with new text end 30.28 new text begin facilities constructed, owned, or operated by a utility to satisfy the requirements of section new text end 30.29 new text begin 216B.1691, provided those facilities were previously approved by the commission under new text end 30.30 new text begin section 216B.2422 or 216B.243. The commission may approve, or approve as modified, a new text end 30.31 new text begin rate schedule that: new text end 30.32     new text begin (1) allows a utility to recover directly from customers on a timely basis the costs of new text end 30.33 new text begin qualifying renewable energy projects, including: new text end 30.34     new text begin (i) return on investment; new text end 31.1     new text begin (ii) depreciation; new text end 31.2     new text begin (iii) ongoing operation and maintenance costs; new text end 31.3     new text begin (iv) taxes; and new text end 31.4     new text begin (v) costs of transmission and other ancillary expenses directly allocable to new text end 31.5 new text begin transmitting electricity generated from a project meeting the specifications of this new text end 31.6 new text begin paragraph; new text end 31.7     new text begin (2) provides a current return on construction work in progress, provided that recovery new text end 31.8 new text begin of these costs from Minnesota ratepayers is not sought through any other mechanism; new text end 31.9     new text begin (3) allows recovery of other expenses incurred that are directly related to a renewable new text end 31.10 new text begin energy project, provided that the utility demonstrates to the commission's satisfaction that new text end 31.11 new text begin the expenses improve project economics, ensure project implementation, or facilitate new text end 31.12 new text begin coordination with the development of transmission necessary to transport energy produced new text end 31.13 new text begin by the project to market; new text end 31.14     new text begin (4) allocates recoverable costs appropriately between wholesale and retail customers; new text end 31.15     new text begin (5) terminates recovery when costs have been fully recovered or have otherwise new text end 31.16 new text begin been reflected in a utility's rates. new text end 31.17     new text begin (b) A petition filed under this subdivision must include: new text end 31.18     new text begin (1) a description of the facilities for which costs are to be recovered; new text end 31.19     new text begin (2) an implementation schedule for the facilities; new text end 31.20     new text begin (3) the utility's costs for the facilities; new text end 31.21     new text begin (4) a description of the utility's efforts to ensure that costs of the facilities are new text end 31.22 new text begin reasonable and were prudently incurred; and new text end 31.23     new text begin (5) a description of the benefits of the project in promoting the development of new text end 31.24 new text begin renewable energy in a manner consistent with this chapter. new text end 31.25    Sec. 9. new text begin [216B.1681] CURTAILMENT PAYMENTS. new text end 31.26     new text begin The commission shall conduct a study of curtailment payments for wind energy new text end 31.27 new text begin projects to assess whether utilities are unduly discriminating among project ownership new text end 31.28 new text begin structures in regard to the contractual availability of curtailment payments. The new text end 31.29 new text begin commission shall submit the study to the chairs and ranking minority members of the new text end 31.30 new text begin senate and house of representatives committees with primary jurisdiction over energy new text end 31.31 new text begin policy by January 15, 2008. new text end 31.32    Sec. 10. Minnesota Statutes 2006, section 216B.1691, is amended by adding a 31.33subdivision to read: 31.34     new text begin Subd. 7. new text end new text begin Utility acquisition of resources. new text end new text begin A competitive resource acquisition new text end 31.35 new text begin process established by the commission prior to June 1, 2007, shall not apply to a utility new text end 32.1 new text begin for the construction, ownership, and operation of generation facilities used to satisfy the new text end 32.2 new text begin requirements of this section unless, upon a finding that it is in the public interest, the new text end 32.3 new text begin commission issues an order on or after June 1, 2007, that requires compliance by a utility new text end 32.4 new text begin with a competitive resource acquisition process. A utility that owns a nuclear generation new text end 32.5 new text begin facility and intends to construct, own, or operate facilities under this section shall file with new text end 32.6 new text begin the commission on or before March 1, 2008, a renewable energy plan setting forth the new text end 32.7 new text begin manner in which the utility proposes to meet the requirements of this section, including new text end 32.8 new text begin a proposed schedule for purchasing renewable energy from C-BED and non-C-BED new text end 32.9 new text begin projects. The utility shall update the plan as necessary in its filing under section new text end 32.10 new text begin 216B.2422. The commission shall approve the plan unless it determines, after public new text end 32.11 new text begin hearing and comment, that the plan is not in the public interest. As part of its determination new text end 32.12 new text begin of public interest, the commission shall consider the plan's allocation of projects among new text end 32.13 new text begin C-BED, non-C-BED, and utility-owned projects, balancing the state's interest in: new text end 32.14     new text begin (1) promoting the policy of economic development in rural areas through the new text end 32.15 new text begin development of renewable energy projects, as expressed in subdivision 9; new text end 32.16     new text begin (2) maintaining the reliability of the state's electric power grid; and new text end 32.17     new text begin (3) minimizing cost impacts on ratepayers. new text end 32.18    Sec. 11. Minnesota Statutes 2006, section 216C.052, is amended to read: 32.19216C.052 RELIABILITY ADMINISTRATOR. 32.20    Subdivision 1. Responsibilities. (a) There is established the position of reliability 32.21administrator in the Public Utilities Commission new text begin Department of Commerce new text end . The 32.22administrator shall act as a source of independent expertise and a technical advisor to 32.23 new text begin the commissioner, new text end the commission and the public on issues related to the reliability of 32.24the electric system. In conducting its work, the administrator shall provide assistance 32.25to the commission new text begin commissioner new text end in administering and implementing the commission's new text begin new text end 32.26 new text begin department's new text end duties under sections new text begin 216B.1612, 216B.1691, new text end 216B.2422, 216B.2425, and 32.27216B.243 ; chapters 216E, 216F, and 216G; and rules associated with those provisions. 32.28Subject to resource constraints, the reliability administrator may also new text begin and shall also new text end : 32.29    (1) model and monitor the use and operation of the energy infrastructure in the 32.30state, including generation facilities, transmission lines, natural gas pipelines, and other 32.31energy infrastructure; 32.32    (2) develop and present to the commission and parties technical analyses of proposed 32.33infrastructure projects, and provide technical advice to the commission; 33.1    (3) present independent, factual, expert, and technical information on infrastructure 33.2proposals and reliability issues at public meetings hosted by the task force, the 33.3Environmental Quality Board, the department, or the commission. 33.4    (b) Upon request and subject to resource constraints, the administrator shall 33.5provide technical assistance regarding matters unrelated to applications for infrastructure 33.6improvements to the task force, the department, or the commission. 33.7    (c) The administrator may not advocate for any particular outcome in a commission 33.8proceeding, but may give technical advice to the commission as to the impact on the 33.9reliability of the energy system of a particular project or projects. 33.10    Subd. 2. Administrative issues. (a) The commission new text begin commissioner new text end may select the 33.11administrator who shall serve for a four-year term. The administrator new text begin must have at least new text end 33.12 new text begin five years of experience working as a power systems engineer or transmission planner, or new text end 33.13 new text begin in a position dealing with power system reliability issues, and new text end may not have been a party 33.14or a participant in a commission energy proceeding for at least one year prior to selection 33.15by the commission new text begin commissioner new text end . The commission new text begin commissioner new text end shall oversee and 33.16direct the work of the administrator, annually review the expenses of the administrator, 33.17and annually approve the budget of the administrator. Pursuant to commission approval, 33.18The administrator may hire staff and may contract for technical expertise in performing 33.19duties when existing state resources are required for other state responsibilities or when 33.20special expertise is required. The salary of the administrator is governed by section 33.2115A.0815, subdivision 2 . 33.22    (b) Costs relating to a specific proceeding, analysis, or project are not general 33.23administrative costs. For purposes of this section, "energy utility" means public utilities, 33.24generation and transmission cooperative electric associations, and municipal power 33.25agencies providing natural gas or electric service in the state. 33.26    (c) The commission new text begin Department of Commerce new text end shall pay: 33.27    (1) the general administrative costs of the administrator, not to exceed $1,000,000 in 33.28a fiscal year, and shall assess energy utilities for those administrative costs. These costs 33.29must be consistent with the budget approved by the commission new text begin commissioner new text end under 33.30paragraph (a). The commission new text begin department new text end shall apportion the costs among all energy 33.31utilities in proportion to their respective gross operating revenues from sales of gas or 33.32electric service within the state during the last calendar year, and shall then render a 33.33bill to each utility on a regular basis; and 33.34    (2) costs relating to a specific proceeding analysis or project and shall render a bill to 33.35the specific energy utility or utilities participating in the proceeding, analysis, or project 34.1directly, either at the conclusion of a particular proceeding, analysis, or project, or from 34.2time to time during the course of the proceeding, analysis, or project. 34.3    (d) For purposes of administrative efficiency, the commission new text begin department new text end shall 34.4assess energy utilities and issue bills in accordance with the billing and assessment 34.5procedures provided in section 216B.62, to the extent that these procedures do not 34.6conflict with this subdivision. The amount of the bills rendered by the commission new text begin new text end 34.7 new text begin department new text end under paragraph (c) must be paid by the energy utility into an account in the 34.8special revenue fund in the state treasury within 30 days from the date of billing and is 34.9appropriated to the commission new text begin department new text end for the purposes provided in this section. 34.10The commission shall approve or approve as modified a rate schedule providing for the 34.11automatic adjustment of charges to recover amounts paid by utilities under this section. 34.12All amounts assessed under this section are in addition to amounts appropriated to the 34.13commission new text begin and the department new text end by other law. 34.14    Subd. 3. Assessment and appropriation. In addition to the amount noted in 34.15subdivision 2, the commission new text begin commissioner new text end may assess utilities, using the mechanism 34.16specified in that subdivision, up to an additional $500,000 annually through June 30, 34.172008. The amounts assessed under this subdivision are appropriated to the commission new text begin new text end 34.18 new text begin commissioner new text end , and some or all of the amounts assessed may be transferred to the 34.19commissioner of administration, for the purposes specified in section 16B.325 and Laws 34.202001, chapter 212, article 1, section 3, as needed to implement those sections. 34.21    Subd. 4. Expiration. Subdivisions 1 and 2 expire June 30, 2007 new text begin 2012 new text end . Subdivision 34.223 expires June 30, 2008. 34.23    Sec. 12. new text begin [216F.011] SIZE DETERMINATION. new text end 34.24     new text begin (a) The total size of a combination of wind energy conversion systems for the new text end 34.25 new text begin purpose of determining what jurisdiction has siting authority under this chapter must new text end 34.26 new text begin be determined according to this section. The nameplate capacity of one wind energy new text end 34.27 new text begin conversion system must be combined with the nameplate capacity of any other wind new text end 34.28 new text begin energy conversion system that: new text end 34.29     new text begin (1) is located within five miles of the wind energy conversion system; new text end 34.30     new text begin (2) is constructed within the same 12-month period as the wind energy conversion new text end 34.31 new text begin system; and new text end 34.32     new text begin (3) exhibits characteristics of being a single development, including, but not limited new text end 34.33 new text begin to, ownership structure, an umbrella sales arrangement, shared interconnection, revenue new text end 34.34 new text begin sharing arrangements, and common debt or equity financing. new text end 35.1     new text begin (b) The commissioner shall provide forms and assistance for project developers to new text end 35.2 new text begin make a request for a size determination. Upon written request of a project developer, the new text end 35.3 new text begin commissioner of commerce shall provide a written size determination within 30 days new text end 35.4 new text begin of receipt of the request and of any information requested by the commissioner. In the new text end 35.5 new text begin case of a dispute, the chair of the Public Utilities Commission shall make the final size new text end 35.6 new text begin determination. new text end 35.7     new text begin (c) An application to a county for a permit under this chapter for a wind energy new text end 35.8 new text begin conversion system is not complete without a size determination made under this section. new text end 35.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 15, 2008. new text end 35.10    Sec. 13. new text begin [216F.08] PERMIT AUTHORITY; ASSUMPTION BY COUNTIES. new text end 35.11     new text begin (a) A county board may, by resolution and upon written notice to the Public Utilities new text end 35.12 new text begin Commission, assume responsibility for processing applications for permits required new text end 35.13 new text begin under this chapter for LWECS with a combined nameplate capacity of less than 25,000 new text end 35.14 new text begin kilowatts. The responsibility for permit application processing, if assumed by a county, new text end 35.15 new text begin may be delegated by the county board to an appropriate county officer or employee. new text end 35.16 new text begin Processing by a county shall be done in accordance with procedures and processes new text end 35.17 new text begin established under chapter 394. new text end 35.18     new text begin (b) A county board that exercises its option under paragraph (a) may issue, deny, new text end 35.19 new text begin modify, impose conditions upon, or revoke permits pursuant to this section. The action new text end 35.20 new text begin of the county board about a permit application is final, subject to appeal as provided new text end 35.21 new text begin in section 394.27. new text end 35.22     new text begin (c) The commission shall, by order, establish general permit standards, including new text end 35.23 new text begin appropriate property line set-backs, governing site permits for LWECS under this section. new text end 35.24 new text begin The order must consider existing and historic commission standards for wind permits new text end 35.25 new text begin issued by the commission. The general permit standards shall apply to permits issued by new text end 35.26 new text begin counties and to permits issued by the commission for LWECS with a combined nameplate new text end 35.27 new text begin capacity of less than 25,000 kilowatts. The commission or a county may grant a variance new text end 35.28 new text begin from a general permit standard if the variance is found to be in the public interest. new text end 35.29     new text begin (d) The commission and the commissioner of commerce shall provide technical new text end 35.30 new text begin assistance to a county with respect to the processing of LWECS site permit applications. new text end 35.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 15, 2008. new text end 35.32    Sec. 14. new text begin [216F.081] APPLICATION OF COUNTY STANDARDS. new text end 35.33     new text begin A county may adopt by ordinance standards for LWECS that are more stringent than new text end 35.34 new text begin standards in commission rules or in the commission's permit standards. The commission, new text end 36.1 new text begin in considering a permit application for LWECS in a county that has adopted more stringent new text end 36.2 new text begin standards, shall consider and apply those more stringent standards, unless the commission new text end 36.3 new text begin finds good cause not to apply the standards. new text end 36.4    Sec. 15. Minnesota Statutes 2006, section 500.30, subdivision 2, is amended to read: 36.5    Subd. 2. Like any conveyance. Any property owner may grant a solar or wind 36.6easement in the same manner and with the same effect as a conveyance of an interest in 36.7real property. The easements shall be created in writing and shall be filed, duly recorded, 36.8and indexed in the office of the recorder of the county in which the easement is granted. 36.9No duly recorded easement shall be unenforceable on account of lack of privity of estate 36.10or privity of contract; such easements shall run with the land or lands benefited and 36.11burdened and shall constitute a perpetual easement, except that an easement may terminate 36.12upon the conditions stated therein or pursuant to the provisions of section 500.20. new text begin A wind new text end 36.13 new text begin easement, easement to install wind turbines on real property, option, or lease of wind new text end 36.14 new text begin rights shall also terminate after seven years from the date the easement is created or lease new text end 36.15 new text begin is entered into, if a wind energy project on the property to which the easement or lease new text end 36.16 new text begin applies does not begin commercial operation within the seven-year period. new text end 36.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 36.18 new text begin and applies to wind easements created and wind rights leases entered into on and after new text end 36.19 new text begin the effective date of this section. new text end 36.20    Sec. 16. new text begin RESOURCE ASSESSMENT. new text end 36.21     new text begin The reliability administrator shall conduct an engineering assessment of Minnesota's new text end 36.22 new text begin electricity resource needs through 2025, with a focus on baseload resources. The new text end 36.23 new text begin reliability administrator may contract with an independent entity to conduct all or part of new text end 36.24 new text begin the study. The assessment must consider additional generation and transmission resources new text end 36.25 new text begin necessary to meet the state's renewable energy standard under Laws 2007, chapter 3, new text end 36.26 new text begin section 1, subdivision 2a, and projected energy savings resulting from the implementation new text end 36.27 new text begin of article 2. The assessment, among other activities, must review and evaluate the most new text end 36.28 new text begin recent Minnesota utility demand forecasts, integrated resource plans filed under section new text end 36.29 new text begin 216B.2422, and transmission projects reports filed under section 216B.2425, including new text end 36.30 new text begin the assumptions underlying them, and provide independent projections of demand and new text end 36.31 new text begin baseload and nonbaseload generation and transmission resources available to meet new text end 36.32 new text begin projected demand in 2010, 2015, 2020, and 2025. The reliability administrator shall new text end 36.33 new text begin manage the assessment process and shall appoint a technical review committee to review new text end 36.34 new text begin the assessment's proposed methods, assumptions, and preliminary data and results. The new text end 37.1 new text begin reliability administrator must submit a report on the assessment to the chairs and ranking new text end 37.2 new text begin minority members of the senate and house of representatives committees with primary new text end 37.3 new text begin jurisdiction over energy policy. The cost of the assessment is recoverable under section new text end 37.4 new text begin 216C.052, subdivision 2. new text end 37.5    Sec. 17. new text begin STATEWIDE STUDY OF DISPERSED GENERATION POTENTIAL. new text end 37.6     new text begin Subdivision 1. new text end new text begin Definition. new text end new text begin "Dispersed generation" means an electric generation new text end 37.7 new text begin project with a generating capacity between ten and 40 megawatts that utilizes an "eligible new text end 37.8 new text begin energy technology," as defined in Minnesota Statutes, section 216B.1691, subdivision 1, new text end 37.9 new text begin paragraph (a). new text end 37.10     new text begin Subd. 2. new text end new text begin Study participants. new text end new text begin Each electric utility subject to Minnesota Statutes, new text end 37.11 new text begin section 216B.1691, must participate collaboratively in conducting a two-phase study of new text end 37.12 new text begin the potential for dispersed generation projects that can be developed in Minnesota. new text end 37.13     new text begin Subd. 3. new text end new text begin First phase study content; report. new text end new text begin In the first phase of the study, new text end 37.14 new text begin participants must analyze the impacts of the addition of a total of 600 megawatts of new text end 37.15 new text begin new dispersed generation projects distributed among the following Minnesota electric new text end 37.16 new text begin transmission planning zones: the Northeast zone, the Northwest zone, the Southeast new text end 37.17 new text begin zone, the Southwest zone, and the West-Central zone. Study participants must use a new text end 37.18 new text begin generally accepted 2010 year transmission system model including all transmission new text end 37.19 new text begin facilities expected to be operating in 2010. The study must take into consideration new text end 37.20 new text begin regional projected load growth, planned changes in the bulk transmission network, and the new text end 37.21 new text begin long-range transmission conceptual plan being developed under Laws 2007, chapter 3, new text end 37.22 new text begin section 2. In determining locations for the installation of dispersed generation projects new text end 37.23 new text begin that consist of wind energy conversion systems, the study should consider, at a minimum, new text end 37.24 new text begin wind resource availability, existing and contracted wind projects, and current dispersed new text end 37.25 new text begin generation projects in the Midwest Independent System Operator interconnection queue. new text end 37.26 new text begin The study must analyze the impacts of individual projects and all projects in aggregate on new text end 37.27 new text begin the transmission system, and identify specific modifications to the transmission system new text end 37.28 new text begin necessary to remedy any problems caused by the installation of dispersed generation new text end 37.29 new text begin projects, including cost estimates for the modifications. The study must analyze the new text end 37.30 new text begin additional dispersed generation projects connected at the lowest voltage level transmission new text end 37.31 new text begin that exists in the vicinity of the projected generation sites. A preliminary analysis to new text end 37.32 new text begin identify transmission system problems must be conducted with the projects installed at new text end 37.33 new text begin initially selected locations. The technical review committee may, after reviewing the new text end 37.34 new text begin locations selected for installation, recommend moving the installation sites once to new new text end 38.1 new text begin locations to reduce undesirable transmission system impacts. The commissioner of new text end 38.2 new text begin commerce must submit a report containing the findings and recommendations of the first new text end 38.3 new text begin phase of the study to the commission no later than June 15, 2008. new text end 38.4     new text begin Subd. 4. new text end new text begin Second phase study content; report. new text end new text begin In the second phase of the study, new text end 38.5 new text begin participants must analyze the impacts of an additional total of 600 megawatts of dispersed new text end 38.6 new text begin generation projects installed among the five transmission planning zones, or a higher total new text end 38.7 new text begin capacity amount if agreed to by both the utilities and the technical review committee. The new text end 38.8 new text begin utilities must employ an analysis method similar to that used in the first phase of the study, new text end 38.9 new text begin and must use the most recent information available, including information developed in new text end 38.10 new text begin the first phase. The second phase of the study must use a generally accepted 2013 year new text end 38.11 new text begin transmission system model including all transmission facilities that are expected to be new text end 38.12 new text begin in service at that time. The commissioner of commerce must submit a report containing new text end 38.13 new text begin the findings and recommendations of the second phase of the study to the commission no new text end 38.14 new text begin later than September 15, 2009. new text end 38.15     new text begin Subd. 5. new text end new text begin Technical review committee. new text end new text begin Prior to the start of the first phase of new text end 38.16 new text begin the study, the commissioner of commerce must appoint a technical review committee new text end 38.17 new text begin consisting of between ten and 15 individuals with experience and expertise in electric new text end 38.18 new text begin transmission system engineering, renewable energy generation technology, and dispersed new text end 38.19 new text begin generation project development, including representatives from the federal Department new text end 38.20 new text begin of Energy, the Midwest Independent System Operator, and stakeholder interests. The new text end 38.21 new text begin technical review committee must oversee both phases of the study, and must: new text end 38.22     new text begin (1) make recommendations to the utilities regarding the proposed methods and new text end 38.23 new text begin assumptions to be used in the technical study; new text end 38.24     new text begin (2) in conjunction with the appropriate utilities, hold public meetings on each new text end 38.25 new text begin phase of the study in each electricity transmission planning zone prior to the beginning new text end 38.26 new text begin of each phase of study, after the impact analysis is completed, and when a draft final new text end 38.27 new text begin report is available; new text end 38.28     new text begin (3) establish procedures for handling commercially sensitive information; and new text end 38.29     new text begin (4) review the initial and final drafts of the study and make recommendations for new text end 38.30 new text begin improvement, including problems associated with the interconnections among utility new text end 38.31 new text begin systems that may be amenable to solution through cooperation between the utilities in each new text end 38.32 new text begin zone. During each phase of the study, the technical review committee may recommend new text end 38.33 new text begin that the installation of dispersed generation projects be moved to new locations that cause new text end 38.34 new text begin fewer undesirable transmission system impacts. new text end 38.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 39.1    Sec. 18. new text begin WIND DEVELOPMENT PROPERTY AGREEMENTS; STUDY. new text end 39.2     new text begin The Legislative Electric Energy Task Force shall study whether the state should new text end 39.3 new text begin regulate easements, leases, and other agreements to acquire an interest in real property new text end 39.4 new text begin for the purpose of wind energy development. The purpose of the study is to determine new text end 39.5 new text begin whether the duration and other terms of those interests should be limited to promote new text end 39.6 new text begin wind energy development. The task force must report the results of its study and any new text end 39.7 new text begin recommendations to the chairs of the energy finance and policy committees of the new text end 39.8 new text begin legislature by February 1, 2008. new text end 39.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 39.10    Sec. 19. new text begin C-BED ADVISORY TASK FORCE. new text end 39.11     new text begin Subdivision 1. new text end new text begin Members. new text end new text begin The Legislative Electric Energy Task Force shall oversee new text end 39.12 new text begin and appoint an advisory task force on community-based energy development (C-BED) new text end 39.13 new text begin under Minnesota Statutes, section 15.059, subdivision 6, consisting of representatives new text end 39.14 new text begin of the Department of Commerce, the Public Utilities Commission, public utilities, new text end 39.15 new text begin independent power producers, municipal utilities, rural cooperatives, landowners currently new text end 39.16 new text begin engaged in C-BED and non-C-BED wind development projects, advocacy organizations new text end 39.17 new text begin for wind developers, and environmental organizations, as well as wind energy experts, new text end 39.18 new text begin tribal representatives, and clean energy advocates. new text end 39.19     new text begin Subd. 2. new text end new text begin Issues. new text end new text begin The task force shall study and make recommendations to the chairs new text end 39.20 new text begin and ranking minority members of the senate and house of representatives committees new text end 39.21 new text begin with primary jurisdiction over energy policy in a report submitted by January 15, 2008, new text end 39.22 new text begin on the following issues: new text end 39.23     new text begin (1) the definition of a C-BED qualifying owner; new text end 39.24     new text begin (2) the definition of gross revenues with respect to community benefits; new text end 39.25     new text begin (3) the ability of Minnesota and non-Minnesota financial institutions to provide new text end 39.26 new text begin capital; new text end 39.27     new text begin (4) compliance and enforcement; new text end 39.28     new text begin (5) wind easements; new text end 39.29     new text begin (6) feed-in tariffs for community energy; new text end 39.30     new text begin (7) community energy models/project structure; new text end 39.31     new text begin (8) credits toward utility renewable energy standard requirements for utility new text end 39.32 new text begin participation; new text end 39.33     new text begin (9) utility compensation for additional work for community ownership projects; new text end 40.1     new text begin (10) types of incentives, compensation, and encouragement for utility participation; new text end 40.2 new text begin and new text end 40.3     new text begin (11) other topics related to and impacting the C-BED program, as determined by new text end 40.4 new text begin the task force. new text end 40.5     new text begin Subd. 3. new text end new text begin Expiration. new text end new text begin This section, and the advisory task force on community-based new text end 40.6 new text begin energy development, expires January 16, 2008. new text end 40.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 40.8    Sec. 20. new text begin TRANSFERRING RELIABILITY ADMINISTRATOR new text end 40.9 new text begin RESPONSIBILITIES. new text end 40.10     new text begin All responsibilities, as defined in Minnesota Statutes, section 15.039, subdivision new text end 40.11 new text begin 1, held by the Public Utilities Commission relating to the reliability administrator under new text end 40.12 new text begin Minnesota Statutes, section 216C.052, are transferred to the Minnesota Department of new text end 40.13 new text begin Commerce under Minnesota Statutes, section 15.039. new text end 40.14    Sec. 21. new text begin TRANSMISSION AUTHORITY AND INTERCONNECTION new text end 40.15 new text begin EVALUATIONS. new text end 40.16     new text begin The reliability administrator shall, in consultation with interested stakeholders: new text end 40.17     new text begin (1) review the structures, powers, and duties for constructing, owning, maintaining, new text end 40.18 new text begin and operating transmission facilities of state transmission authorities established in new text end 40.19 new text begin Kansas, North Dakota, South Dakota, and Wyoming, and evaluate whether the existence new text end 40.20 new text begin of a similar organization in Minnesota would have the potential to increase the reliability new text end 40.21 new text begin and efficiency of the electrical grid in the state; hasten the development of needed new text end 40.22 new text begin transmission lines; accelerate the development of renewable energy projects, especially in new text end 40.23 new text begin rural areas of the state; and reduce delivered energy costs to Minnesota ratepayers; and new text end 40.24     new text begin (2) assess the potential for and barriers to interconnecting dispersed generation new text end 40.25 new text begin projects to locations on the electric grid where a generator interconnection would not be new text end 40.26 new text begin subject to the interconnection rules of the Federal Energy Regulatory Commission or the new text end 40.27 new text begin Midwest Independent System Operator. new text end 40.28 new text begin No technical or engineering analyses are necessary in order to complete these duties. The new text end 40.29 new text begin reliability administrator must report its findings and any recommendations to the chairs of new text end 40.30 new text begin the senate and house of representatives committees with jurisdiction over energy policy by new text end 40.31 new text begin February 15, 2008. new text end 41.1ARTICLE 5 41.2GLOBAL CLIMATE CHANGE; GREENHOUSE GAS EMISSIONS 41.3    Section 1. new text begin [216H.01] DEFINITIONS. new text end 41.4     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin For the purpose of this chapter, the terms defined in this new text end 41.5 new text begin section have the meanings given them. new text end 41.6     new text begin Subd. 2. new text end new text begin Statewide greenhouse gas emissions. new text end new text begin "Statewide greenhouse new text end 41.7 new text begin gas emissions" include emissions of carbon dioxide, methane, nitrous oxide, new text end 41.8 new text begin hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by anthropogenic new text end 41.9 new text begin sources within the state and from the generation of electricity imported from outside new text end 41.10 new text begin the state and consumed in Minnesota. Carbon dioxide that is injected into geological new text end 41.11 new text begin formations to prevent its release to the atmosphere in compliance with applicable laws, new text end 41.12 new text begin and carbon dioxide associated with the combustion of fuels other than coal, petroleum, new text end 41.13 new text begin and natural gas are not counted as contributing to statewide greenhouse gas emissions. new text end 41.14    Sec. 2. new text begin [216H.02] GREENHOUSE GAS EMISSIONS CONTROL. new text end 41.15     new text begin Subdivision 1. new text end new text begin Greenhouse gas emissions reduction goal. new text end new text begin It is the goal of the state new text end 41.16 new text begin to reduce statewide greenhouse gas emissions across all sectors producing those emissions new text end 41.17 new text begin to a level at least 15 percent below 2005 levels by 2015, to a level at least 30 percent new text end 41.18 new text begin below 2005 levels by 2025, and to a level at least 80 percent below 2005 levels by 2050. new text end 41.19 new text begin The levels shall be reviewed based on the climate change action plan study. new text end 41.20     new text begin Subd. 2. new text end new text begin Climate change action plan. new text end new text begin By February 1, 2008, the commissioner of new text end 41.21 new text begin commerce, in consultation with the commissioners of the Pollution Control Agency, new text end 41.22 new text begin the Housing Finance Agency, and the Departments of Natural Resources, Agriculture, new text end 41.23 new text begin Employment and Economic Development, and Transportation, and the chair of the new text end 41.24 new text begin Metropolitan Council, shall submit to the legislature a climate change action plan that new text end 41.25 new text begin meets the requirements of this section. new text end 41.26     new text begin Subd. 3. new text end new text begin Stakeholder process. new text end new text begin The plan required by subdivision 2 must be new text end 41.27 new text begin developed through a structured, broadly inclusive stakeholder-based review of potential new text end 41.28 new text begin policies and initiatives that will reduce statewide greenhouse gas emissions from a new text end 41.29 new text begin broad range of sources and activities. The commissioner shall engage a nationally new text end 41.30 new text begin recognized independent expert entity to conduct the stakeholder process. The report of new text end 41.31 new text begin the stakeholder process must form the basis for the plan submitted by the commissioner new text end 41.32 new text begin under subdivision 2. new text end 41.33     new text begin Subd. 4. new text end new text begin General elements of the plan. new text end new text begin The plan must: new text end 42.1     new text begin (1) estimate 1990 and 2005 greenhouse gas emissions in the state and make new text end 42.2 new text begin projections of emissions in 2015, 2025, and 2050; new text end 42.3     new text begin (2) identify, evaluate, and integrate a broad range of statewide greenhouse gas new text end 42.4 new text begin reduction options for all emission sectors in the state; new text end 42.5     new text begin (3) assess the costs, benefits, and feasibility of implementing the options; new text end 42.6     new text begin (4) recommend an integrated set of reduction options and strategies for implementing new text end 42.7 new text begin the options that will achieve the goals in subdivision 1, including analysis of the associated new text end 42.8 new text begin costs and benefits to Minnesotans; new text end 42.9     new text begin (5) estimate the statewide greenhouse gas emissions reductions anticipated from new text end 42.10 new text begin implementation of existing state policies; new text end 42.11     new text begin (6) recommend a system to require the reporting of statewide greenhouse gas new text end 42.12 new text begin emissions, identifying which facilities must report, and how emission estimates should new text end 42.13 new text begin be made; and new text end 42.14     new text begin (7) evaluate the option of exempting a project from the prohibitions contained in new text end 42.15 new text begin section 216H.03, subdivision 3, if the project contributes a specified fee per ton of carbon new text end 42.16 new text begin dioxide emissions emitted annually by the project, the proceeds of which would be used to new text end 42.17 new text begin fund permanent, quantifiable, verifiable, and enforceable reductions in greenhouse gas new text end 42.18 new text begin emissions that would not otherwise have occurred. new text end 42.19     new text begin Subd. 5. new text end new text begin Specific plan requirements. new text end new text begin (a) The plan must evaluate and recommend new text end 42.20 new text begin interim goals as steps to achieve the goals in subdivision 1. new text end 42.21     new text begin (b) The plan must determine the feasibility, assess the costs and benefits, and new text end 42.22 new text begin recommend how the state could adopt a regulatory system that imposes a cap on the new text end 42.23 new text begin aggregate air pollutant emissions of a group of sources, requires those subject to the new text end 42.24 new text begin cap to own an allowance for each ton of the air pollutant emitted, and allows for new text end 42.25 new text begin market-based trading of those allowances. The evaluation must contain an analysis of the new text end 42.26 new text begin state implementing a cap and trade system alone, in coordination with other states, and new text end 42.27 new text begin as a requirement of federal law applying to all states. The plan must recommend the new text end 42.28 new text begin parameters of a cap and trade system that includes a cap that would prevent significant new text end 42.29 new text begin increases in greenhouse gas emissions above current levels with a schedule for lowering new text end 42.30 new text begin the cap periodically to achieve the goals in subdivision 1 and interim goals recommended new text end 42.31 new text begin under paragraph (a). The plan must consider cost savings and cost increases on energy new text end 42.32 new text begin consumers in the state. new text end 42.33     new text begin (c) The plan must include recommendations for improvements in the emissions new text end 42.34 new text begin inventory and recommend whether the state should require greenhouse gas emissions new text end 42.35 new text begin reporting from specific sources and, if so, which sources should be required to report. The new text end 42.36 new text begin plan must also evaluate options for an emissions registry after reviewing registries in other new text end 43.1 new text begin states and recommend a registry that will insure the greatest opportunity for Minnesota new text end 43.2 new text begin entities to obtain marketable credits. new text end 43.3     new text begin Subd. 6. new text end new text begin Regional activities. new text end new text begin The state must, to the extent possible, with other states new text end 43.4 new text begin in the Midwest region, develop and implement a regional approach to reducing greenhouse new text end 43.5 new text begin gas emissions from activities in the region, including consulting on a regional cap and new text end 43.6 new text begin trade system. The commissioner of commerce shall coordinate Minnesota's regional new text end 43.7 new text begin activities under this subdivision and report to the legislative committees in the senate new text end 43.8 new text begin and house of representatives with jurisdiction over energy and environmental policy by new text end 43.9 new text begin February 1, 2008, and February 1, 2009, on the progress made and recommendations for new text end 43.10 new text begin further action. The commissioner of commerce, as part of the activities required under this new text end 43.11 new text begin subdivision, must meet with responsible officials from bordering states, other states in the new text end 43.12 new text begin Midwest region, and states in other regions of the country to: (1) determine whether other new text end 43.13 new text begin states are interested in establishing and cooperating in a multistate or regional greenhouse new text end 43.14 new text begin gas cap and trade allowance program; (2) identify and prepare an inventory of greenhouse new text end 43.15 new text begin gas reduction resources available to support a multistate or regional greenhouse gas cap new text end 43.16 new text begin and trade allowance program; (3) seek cooperation on a regional inventory of greenhouse new text end 43.17 new text begin gas emission sources; and (4) prepare an inventory of available renewable energy new text end 43.18 new text begin resources within a state or region. The commissioner of commerce must develop a new text end 43.19 new text begin definition of scope of this regional activity that is in addition to the components described new text end 43.20 new text begin in clauses (1) to (4). The commissioner must report on the additional scoping definitions new text end 43.21 new text begin to the chairs and ranking minority members of the legislative committees with jurisdiction new text end 43.22 new text begin over energy and environmental finance and policy on or before the commencement of the new text end 43.23 new text begin 2008 regular legislative session. new text end 43.24    Sec. 3. new text begin [216H.03] FAILURE TO ADOPT GREENHOUSE GAS CONTROL new text end 43.25 new text begin PLAN. new text end 43.26     new text begin Subdivision 1. new text end new text begin Definition; new large energy facility. new text end new text begin For the purpose of this new text end 43.27 new text begin section, "new large energy facility" means a large energy facility, as defined in section new text end 43.28 new text begin 216B.2421, subdivision 2, clause (1), that is not in operation as of January 1, 2007, but new text end 43.29 new text begin does not include a facility that (1) uses natural gas as a primary fuel, (2) is designed to new text end 43.30 new text begin provide peaking, intermediate, emergency backup, or contingency services, (3) uses a new text end 43.31 new text begin simple cycle or combined cycle turbine technology, and (4) is capable of achieving full new text end 43.32 new text begin load operations within 45 minutes of startup for a simple cycle facility, or is capable new text end 43.33 new text begin of achieving minimum load operations within 185 minutes of startup for a combined new text end 43.34 new text begin cycle facility. new text end 44.1     new text begin Subd. 2. new text end new text begin Definition; statewide power sector carbon dioxide emissions. new text end new text begin For the new text end 44.2 new text begin purpose of this section, "statewide power sector carbon dioxide emissions" means the total new text end 44.3 new text begin annual emissions of carbon dioxide from the generation of electricity within the state new text end 44.4 new text begin and all emissions of carbon dioxide from the generation of electricity imported from new text end 44.5 new text begin outside the state and consumed in Minnesota. Emissions of carbon dioxide associated new text end 44.6 new text begin with transmission and distribution line losses are included in this definition. Carbon new text end 44.7 new text begin dioxide that is injected into geological formations to prevent its release to the atmosphere new text end 44.8 new text begin in compliance with applicable laws, and emissions of carbon dioxide associated with new text end 44.9 new text begin the combustion of biomass, as defined in section 216B.2411, subdivision 2, paragraph new text end 44.10 new text begin (c), clauses (1) to (4), are not counted as contributing to statewide power sector carbon new text end 44.11 new text begin dioxide emissions. new text end 44.12     new text begin Subd. 3. new text end new text begin Long-term increased emissions from power plants prohibited. new text end new text begin Unless new text end 44.13 new text begin preempted by federal law, until a comprehensive and enforceable state law or rule new text end 44.14 new text begin pertaining to greenhouse gases that directly limits and substantially reduces, over time, new text end 44.15 new text begin statewide power sector carbon dioxide emissions is enacted and in effect, and except as new text end 44.16 new text begin allowed in subdivisions 4 to 7, on and after August 1, 2009, no person shall: new text end 44.17     new text begin (1) construct within the state a new large energy facility that would contribute to new text end 44.18 new text begin statewide power sector carbon dioxide emissions; new text end 44.19     new text begin (2) import or commit to import from outside the state power from a new large energy new text end 44.20 new text begin facility that would contribute to statewide power sector carbon dioxide emissions; or new text end 44.21     new text begin (3) enter into a new long-term power purchase agreement that would increase new text end 44.22 new text begin statewide power sector carbon dioxide emissions. For purposes of this section, a long-term new text end 44.23 new text begin power purchase agreement means an agreement to purchase 50 megawatts of capacity new text end 44.24 new text begin or more for a term exceeding five years. new text end 44.25     new text begin Subd. 4. new text end new text begin Exception for facilities that offset emissions. new text end new text begin (a) The prohibitions in new text end 44.26 new text begin subdivision 3 do not apply if the project proponent demonstrates to the Public Utilities new text end 44.27 new text begin Commission's satisfaction that it will offset the new contribution to statewide power sector new text end 44.28 new text begin carbon dioxide emissions with a carbon dioxide reduction project identified in paragraph new text end 44.29 new text begin (b) and in compliance with paragraph (c). new text end 44.30     new text begin (b) A project proponent may offset in an amount equal to or greater than the new text end 44.31 new text begin proposed new contribution to statewide power sector carbon dioxide emissions in either, new text end 44.32 new text begin or a combination of both, of the following ways: new text end 44.33     new text begin (1) by reducing an existing facility's contribution to statewide power sector carbon new text end 44.34 new text begin dioxide emissions; or new text end 45.1     new text begin (2) by purchasing carbon dioxide allowances from a state or group of states that has a new text end 45.2 new text begin carbon dioxide cap and trade system in place that produces verifiable emissions reductions. new text end 45.3     new text begin (c) The Public Utilities Commission shall not find that a proposed carbon dioxide new text end 45.4 new text begin reduction project identified in paragraph (b) acceptably offsets a new contribution new text end 45.5 new text begin to statewide power sector carbon dioxide emissions unless the proposed offsets are new text end 45.6 new text begin permanent, quantifiable, verifiable, enforceable, and would not have otherwise occurred. new text end 45.7 new text begin This section does not exempt emissions that have been offset under this subdivision and new text end 45.8 new text begin emissions exempted under subdivisions 5 to 7 from a cap and trade system if adopted by new text end 45.9 new text begin the state. new text end 45.10     new text begin Subd. 5. new text end new text begin Exception for new steel production facility. new text end new text begin The prohibitions in new text end 45.11 new text begin subdivision 3 do not apply to increases in statewide power sector carbon dioxide new text end 45.12 new text begin emissions from a new steel production project located in a taconite relief area that has new text end 45.13 new text begin filed an application for an air quality permit from the Pollution Control Agency prior new text end 45.14 new text begin to January 1, 2007. new text end 45.15     new text begin Subd. 6. new text end new text begin Exception for iron nugget production facility. new text end new text begin The prohibitions in new text end 45.16 new text begin subdivision 3 do not apply to an iron nugget production facility that began construction new text end 45.17 new text begin prior to January 31, 2007, nor to associated mining activities and beneficiation facilities new text end 45.18 new text begin with a concentrate capacity of up to three million tons annually. For the purposes of this new text end 45.19 new text begin subdivision, "iron nugget" means a product with at least 90 percent iron content. new text end 45.20     new text begin Subd. 7. new text end new text begin Other exemptions. new text end new text begin The prohibitions in subdivision 3 do not apply to: new text end 45.21     new text begin (1) a new large energy facility under consideration by the Public Utilities new text end 45.22 new text begin Commission pursuant to proposals or applications filed with the Public Utilities new text end 45.23 new text begin Commission before April 1, 2007, or to any power purchase agreement related to a facility new text end 45.24 new text begin described in this clause. The exclusion of pending proposals and applications from the new text end 45.25 new text begin prohibitions in subdivision 3 does not limit the applicability of any other law and is not an new text end 45.26 new text begin expression of legislative intent regarding whether any pending proposal or application new text end 45.27 new text begin should be approved or denied; new text end 45.28     new text begin (2) a contract not subject to commission approval that was entered into prior to new text end 45.29 new text begin April 1, 2007, to purchase power from a new large energy facility that was approved by new text end 45.30 new text begin a comparable authority in another state prior to that date, for which municipal or public new text end 45.31 new text begin power district bonds have been issued, and on which construction has begun; or new text end 45.32     new text begin (3) a new large energy facility or a power purchase agreement between a Minnesota new text end 45.33 new text begin utility and a new large energy facility located outside Minnesota that the Public new text end 45.34 new text begin Utilities Commission has determined is essential to ensure the long-term reliability of new text end 45.35 new text begin Minnesota's electric system, to allow electric service for increased industrial demand, new text end 46.1 new text begin or to avoid placing a substantial financial burden on Minnesota ratepayers. An order new text end 46.2 new text begin of the commission granting an exemption under this clause is stayed until the June 1 new text end 46.3 new text begin following the next regular or annual session of the legislature that begins after the date new text end 46.4 new text begin of the commission's final order. new text end 46.5     new text begin Subd. 8. new text end new text begin Enforcement. new text end new text begin Whenever the commission or the Department of Commerce new text end 46.6 new text begin determines that any person is violating or about to violate this section, it may refer the new text end 46.7 new text begin matter to the attorney general who shall take appropriate legal action. This section may new text end 46.8 new text begin be enforced by the attorney general on the same basis as a law listed in section 8.31, new text end 46.9 new text begin subdivision 1, except that the remedies provided by section 8.31, subdivision 3a, do not new text end 46.10 new text begin apply to a violation of this section. new text end 46.11    Sec. 4. new text begin [216H.06] GREENHOUSE GAS EMISSIONS CONSIDERATION IN new text end 46.12 new text begin RESOURCE PLANNING. new text end 46.13     new text begin By January 1, 2008, the Public Utilities Commission shall establish an estimate of new text end 46.14 new text begin the likely range of costs of future carbon dioxide regulation on electricity generation. new text end 46.15 new text begin The estimate, which may be made in a commission order, must be used in all electricity new text end 46.16 new text begin generation resource acquisition proceedings. The estimates, and annual updates, must be new text end 46.17 new text begin made following informal proceedings conducted by the commissioners of commerce and new text end 46.18 new text begin pollution control that allow interested parties to submit comments. new text end 46.19ARTICLE 6 46.20RENEWABLE ENERGY STANDARDS 46.21    Section 1. Minnesota Statutes 2006, section 216B.1691, subdivision 5, as amended by 46.22Laws 2007, chapter 3, section 1, subdivision 5, is amended to read: 46.23    Subd. 5. Technology based on fuel combustion. (a) Electricity produced by fuel 46.24combustion new text begin through fuel blending or co-firing under paragraph (b) new text end may only count toward 46.25a utility's objectives or standards if the generation facility: 46.26    (1) was constructed in compliance with new source performance standards 46.27promulgated under the federal Clean Air Act for a generation facility of that type; or 46.28    (2) employs the maximum achievable or best available control technology available 46.29for a generation facility of that type. 46.30    (b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 46.311, paragraph (a), clause (1) new text begin (5) new text end , with other fuels in the generation facility, but only the 46.32percentage of electricity that is attributable to a fuel listed in that clause can be counted 46.33toward an electric utility's renewable energy objectives. 47.1    Sec. 2. Minnesota Statutes 2006, section 216B.1691, subdivision 7, as added by Laws 47.22007, chapter 3, section 1, subdivision 7, is amended to read: 47.3    Subd. 7. Compliance. The commission must regularly investigate whether an 47.4electric utility is in compliance with its good-faith objective under subdivision 2 and 47.5standard obligation under subdivision 2a. If the commission finds noncompliance, it may 47.6order the electric utility to construct facilities, purchase energy generated by eligible 47.7energy technology, purchase renewable energy credits, or engage in other activities 47.8to achieve compliance. If an electric utility fails to comply with an order under this 47.9subdivision, the commission may impose a financial penalty on the electric utility in an 47.10amount not to exceed the estimated cost of the electric utility to achieve compliance. The 47.11penalty may not exceed the lesser of the cost of constructing facilities or purchasing 47.12credits. new text begin The commission must deposit financial penalties imposed under this subdivision new text end 47.13 new text begin in the energy and conservation account established in the special revenue fund under new text end 47.14 new text begin section 216B.241, subdivision 2a. new text end This subdivision is in addition to and does not limit any 47.15other authority of the commission to enforce this section." 47.16Delete the title and insert: 47.17"A bill for an act 47.18relating to energy; modifying and adding provisions relating to energy efficiency 47.19and conservation, energy savings and audits, energy projects and information, 47.20residential energy requirements, a nuclear energy study, community-based 47.21energy development and related issues, the reliability administrator, an electricity 47.22resource assessment, wind energy conversion systems and authority of counties, 47.23greenhouse gas emissions and renewable energy standards; requiring studies; 47.24making technical and clarifying changes;amending Minnesota Statutes 2006, 47.25sections 123B.65, subdivision 2; 216B.16, subdivisions 1, 6b; 216B.1612, 47.26subdivisions 1, 2, 3, 4, 5, 7, by adding a subdivision; 216B.1645, by adding a 47.27subdivision; 216B.1691, subdivisions 5, as amended, 7, as added, by adding a 47.28subdivision; 216B.241; 216C.05; 216C.052; 216C.31; 471.345, subdivision 47.2913; 500.30, subdivision 2; 504B.161, subdivision 1; proposing coding for new 47.30law in Minnesota Statutes, chapters 216B; 216C; 216F; proposing coding for 47.31new law as Minnesota Statutes, chapter 216H; repealing Minnesota Statutes 47.322006, sections 216B.165; 216C.27; 216C.30, subdivision 5; Minnesota Rules, 47.33parts 7635.0100; 7635.0110; 7635.0120; 7635.0130; 7635.0140; 7635.0150; 47.347635.0160; 7635.0170; 7635.0180; 7635.0200; 7635.0210; 7635.0220; 47.357635.0230; 7635.0240; 7635.0250; 7635.0260; 7635.0300; 7635.0310; 47.367635.0320; 7635.0330; 7635.0340; 7635.0400; 7635.0410; 7635.0420; 47.377635.0500; 7635.0510; 7635.0520; 7635.0530; 7635.0600; 7635.0610; 47.387635.0620; 7635.0630; 7635.0640; 7635.1000; 7635.1010; 7635.1020; 47.397635.1030; 7655.0100; 7655.0120; 7655.0200; 7655.0210; 7655.0220; 47.407655.0230; 7655.0240; 7655.0250; 7655.0260; 7655.0270; 7655.0280; 47.417655.0290; 7655.0300; 7655.0310; 7655.0320; 7655.0330; 7655.0400; 47.427655.0410; 7655.0420." We request the adoption of this report and repassage of the bill.Senate Conferees: (Signed) Yvonne Prettner Solon, Gary W. Kubly, D. Scott Dibble, Jim Carlson, Julie A. RosenHouse Conferees: (Signed) Bill Hilty, Aaron Peterson, Maria Ruud, Jeremy Kalin, John Berns 48.1 We request the adoption of this report and repassage of the bill. 48.2 Senate Conferees: (Signed) 48.3 48.4 Yvonne Prettner Solon Gary W. Kubly 48.5 48.6 D. Scott Dibble Jim Carlson 48.7 48.8 Julie A. Rosen 48.9 House Conferees: (Signed) 48.10 48.11 Bill Hilty Aaron Peterson 48.12 48.13 Maria Ruud Jeremy Kalin 48.14 48.15 John Berns