1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 33371.2A bill for an act1.3relating to energy; creating coordinated process for reducing greenhouse gas 1.4emissions; proposing coding for new law in Minnesota Statutes, chapter 216H.1.5May 5, 20081.6The Honorable James P. Metzen1.7President of the Senate1.8The Honorable Margaret Anderson Kelliher1.9Speaker of the House of Representatives1.10We, the undersigned conferees for S.F. No. 3337 report that we have agreed upon 1.11the items in dispute and recommend as follows:1.12That the House recede from its amendments and that S.F. No. 3337 be further 1.13amended as follows:1.14Delete everything after the enacting clause and insert:1.15"ARTICLE 11.16UTILITIES1.17    Section 1. Minnesota Statutes 2006, section 115C.04, subdivision 3, is amended to read:1.18    Subd. 3. Agency Cost recovery; subrogation. Reasonable and necessary expenses 1.19incurred by the agency in taking a corrective action, including costs of investigating 1.20a release, administrative and legal expenses, and reimbursement costs described in 1.21subdivision 1, paragraph (b), may be recovered in a civil action in district court brought by 1.22the attorney general on behalf of the board against a responsible person. The agency's 1.23certification of expenses is prima facie evidence that the expenses are reasonable and 1.24necessary. If the responsible person has petroleum tank leakage or spill insurance 1.25coverage that insures against the liability provided in this section, the agencyboard is 1.26subrogated to the rights of the responsible person with respect to that insurance coverage, 1.27to the extent of the expenses incurred by the agency and described in this subdivision. 1.28The agencyboard may request the attorney general to bring an action in district court 2.1against the insurer to enforce this subrogation right. Expenses that are recovered under 2.2this section must be deposited in the fund.2.3    Sec. 2. Minnesota Statutes 2006, section 115C.09, subdivision 3h, is amended to read:2.4    Subd. 3h. Reimbursement; aboveground tanks in bulk plants. (a) As used in 2.5this subdivision, "bulk plant" means an aboveground or underground tank facility with a 2.6storage capacity of more than 1,100 gallons but less than 1,000,000 gallons that is used to 2.7dispense petroleum into cargo tanks for transportation and sale at another location.2.8    (b) Notwithstanding any other provision in this chapter and any rules adopted 2.9pursuant to this chapter, the board shall reimburse 90 percent of an applicant's cost for bulk 2.10plant upgrades or closures completed between June 1, 1998, and November 1, 2003, to 2.11comply with Minnesota Rules, chapter 7151, provided that the board determines the costs 2.12were incurred and reasonable. The reimbursement may not exceed $10,000 per bulk plant. 2.13The board may provide reimbursement under this paragraph for work completed after 2.14November 1, 2003, if the work was contracted for prior to that date and was not completed 2.15by that date as a result of an unanticipated situation, provided that an application for 2.16reimbursement under this paragraph, which may be a renewal of an application previously 2.17denied, is submitted prior to December 31, 2005.2.18    (c) For corrective action at a bulk plant located on what is or was railroad 2.19right-of-way, the board shall reimburse 90 percent of total reimbursable costs on the first 2.20$40,000 of reimbursable costs and 100 percent of any remaining reimbursable costs when 2.21the applicant can document that more than one bulk plant was operated on the same 2.22section of right-of-way, as determined by the commissioner of commerce.2.23    Sec. 3. Minnesota Statutes 2006, section 115C.09, is amended by adding a subdivision 2.24to read:2.25    Subd. 3k.PVC piping at residential locations.(a) This subdivision is to assist 2.26homeowners who have installed PVC fill piping as part of the heating oil system at their 2.27residences. Replacement of the PVC piping with metal piping is intended to avoid the 2.28catastrophic release of heating oil, as well as the ensuing cleanup costs, that can occur 2.29at residences where the PVC piping fails.2.30    (b) As used in this subdivision:2.31    (1) "residential locations" means a storage tank and appurtenances for heating oil 2.32that are used to heat a single-family residence; and3.1    (2) "qualified person" means someone who is registered as a contractor under section 3.2115C.11 and, as part of their trade or business, installs or repairs nonpressure piping, 3.3heating systems, air conditioning systems, or storage tank systems.3.4    (c) Notwithstanding any other provision of this chapter or any rules adopted 3.5under this chapter, the board shall reimburse a qualified person 90 percent of the cost 3.6for replacing PVC fill piping with metal piping at residential locations between May 1, 3.72008, and September 1, 2011, provided that the board determines the costs were incurred 3.8and reasonable. The reimbursement may not exceed $250 per residential location. The 3.9maximum expenditure from the fund may not exceed $1,500,000.3.10    (d) A heating oil vendor is not a responsible person for a heating oil spill inside a 3.11residential location if the spill was caused solely by the failure of a tank or appurtenance 3.12to a tank owned by the homeowner.3.13    Sec. 4. [117.054] COPIES OF APPRAISAL TO LANDOWNER.3.14    A public utility, municipal utility, cooperative electric association, natural gas 3.15pipeline or crude oil or petroleum products pipeline company must provide the property 3.16owner with a copy of each appraisal it has obtained for a property before presenting 3.17a petition under section 117.055 to acquire the property.3.18EFFECTIVE DATE.This section is effective August 1, 2008, and applies to 3.19eminent domain proceedings commenced on or after October 1, 2008.3.20    Sec. 5. Minnesota Statutes 2006, section 216B.16, subdivision 7b, is amended to read:3.21    Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision 3.22of this chapter, the commission may approve a tariff mechanism for the automatic annual 3.23adjustment of charges for the Minnesota jurisdictional costs of: (i) new transmission 3.24facilities that have been separately filed and reviewed and approved by the commission 3.25under section 
         216B.243or are certified as a priority project or deemed to be a priority 3.26transmission project under section 
         216B.2425; and (ii) charges incurred by a utility that 3.27accrue from other transmission owners' regionally planned transmission projects that have 3.28been determined by the Midwest Independent System Operator to benefit the utility, as 3.29provided for under a federally approved tariff.3.30    (b) Upon filing by a public utility or utilities providing transmission service, the 3.31commission may approve, reject, or modify, after notice and comment, a tariff that:3.32    (1) allows the utility to recover on a timely basis the costs net of revenues of 3.33facilities approved under section 
         216B.243 or certified or deemed to be certified under 3.34section 
         216B.2425 or exempt from the requirements of section 216B.243;4.1    (2) allows the charges incurred by a utility that accrue from other transmission 4.2owners' regionally planned transmission projects that have been determined by the 4.3Midwest Independent System Operator to benefit the utility, as provided for under a 4.4federally approved tariff. These charges must be reduced or offset by revenues received 4.5by the utility and by amounts the utility charges to other regional transmission owners, to 4.6the extent those revenues and charges have not been otherwise offset;4.7    (3) allows a return on investment at the level approved in the utility's last general 4.8rate case, unless a different return is found to be consistent with the public interest;4.9    (3) (4) provides a current return on construction work in progress, provided that 4.10recovery from Minnesota retail customers for the allowance for funds used during 4.11construction is not sought through any other mechanism;4.12    (4) (5) allows for recovery of other expenses if shown to promote a least-cost project 4.13option or is otherwise in the public interest;4.14    (5) (6) allocates project costs appropriately between wholesale and retail customers;4.15    (6) (7) provides a mechanism for recovery above cost, if necessary to improve the 4.16overall economics of the project or projects or is otherwise in the public interest; and4.17    (7) (8) terminates recovery once costs have been fully recovered or have otherwise 4.18been reflected in the utility's general rates.4.19    (c) A public utility may file annual rate adjustments to be applied to customer bills 4.20paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:4.21    (1) a description of and context for the facilities included for recovery;4.22    (2) a schedule for implementation of applicable projects;4.23    (3) the utility's costs for these projects;4.24    (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for 4.25the project; and4.26    (5) calculations to establish that the rate adjustment is consistent with the terms 4.27of the tariff established in paragraph (b).4.28    (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in 4.29paragraph (b), the commission shall approve the annual rate adjustments provided that, 4.30after notice and comment, the costs included for recovery through the tariff were or are 4.31expected to be prudently incurred and achieve transmission system improvements at the 4.32lowest feasible and prudent cost to ratepayers.4.33    Sec. 6. Minnesota Statutes 2006, section 216B.1645, subdivision 1, is amended to read:4.34    Subdivision 1. Commission authority. Upon the petition of a public utility, the 4.35Public Utilities Commission shall approve or disapprove power purchase contracts, 5.1investments, or expenditures entered into or made by the utility to satisfy the wind and 5.2biomass mandates contained in sections 
         216B.169, 
         216B.2423, and 
         216B.2424, and to 5.3satisfy the renewable energy objectives and standards set forth in section 
         216B.1691, 5.4including reasonable investments and expenditures made to:5.5    (1) transmit the electricity generated from sources developed under those sections 5.6that is ultimately used to provide service to the utility's retail customers, including 5.7studies necessary to identify new transmission facilities needed to transmit electricity to 5.8Minnesota retail customers from generating facilities constructed to satisfy the renewable 5.9energy objectives and standards, provided that the costs of the studies have not been 5.10recovered previously under existing tariffs and the utility has filed an application for a 5.11certificate of need or for certification as a priority project under section 
         216B.2425 for the 5.12new transmission facilities identified in the studies;5.13    (2) provide storage facilities for renewable energy generation facilities that 5.14contribute to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or5.15    (2) (3) develop renewable energy sources from the account required in section 5.16116C.779
         .5.17    Sec. 7. Minnesota Statutes 2006, section 216B.1645, subdivision 2, is amended to read:5.18    Subd. 2. Cost recovery. The expenses incurred by the utility over the duration of 5.19the approved contract or useful life of the investment and expenditures made pursuant 5.20to section 
         116C.779 shall be recoverable from the ratepayers of the utility, to the extent 5.21they are not offset by utility revenues attributable to the contracts, investments, or 5.22expenditures. Upon petition by a public utility, the commission shall approve or approve 5.23as modified a rate schedule providing for the automatic adjustment of charges to recover 5.24the expenses or costs approved by the commission under subdivision 1, which, in the case 5.25of transmission expenditures, are limited to the portion of actual transmission costs that are 5.26directly allocable to the need to transmit power from the renewable sources of energy. The 5.27commission may not approve recovery of the costs for that portion of the power generated 5.28from sources governed by this section that the utility sells into the wholesale market. 5.29    Sec. 8. Minnesota Statutes 2007 Supplement, section 216B.1645, subdivision 2a, 5.30is amended to read:5.31    Subd. 2a. Cost recovery for owned renewable facilities. (a) A utility may petition 5.32the commission to approve a rate schedule that provides for the automatic adjustment of 5.33charges to recover prudently incurred investments, expenses, or costs associated with 5.34facilities constructed, owned, or operated by a utility to satisfy the requirements of section 6.1216B.1691
         , provided those facilities were previously approved by the commission under 6.2section 216B.2422 or 216B.243, or were determined by the commission to be reasonable 6.3and prudent under section 216B.243, subdivision 9. The commission may approve, or6.4approve as modified, a rate schedule that: 6.5    (1) allows a utility to recover directly from customers on a timely basis the costs of 6.6qualifying renewable energy projects, including: 6.7    (i) return on investment; 6.8    (ii) depreciation; 6.9    (iii) ongoing operation and maintenance costs; 6.10    (iv) taxes; and 6.11    (v) costs of transmission and other ancillary expenses directly allocable to 6.12transmitting electricity generated from a project meeting the specifications of this 6.13paragraph; 6.14    (2) provides a current return on construction work in progress, provided that recovery 6.15of these costs from Minnesota ratepayers is not sought through any other mechanism; 6.16    (3) allows recovery of other expenses incurred that are directly related to a 6.17renewable energy project, including expenses for energy storage, provided that the 6.18utility demonstrates to the commission's satisfaction that the expenses improve project 6.19economics, ensure project implementation, or facilitate coordination with the development 6.20of transmission necessary to transport energy produced by the project to market; 6.21    (4) allocates recoverable costs appropriately between wholesale and retail customers; 6.22    (5) terminates recovery when costs have been fully recovered or have otherwise 6.23been reflected in a utility's rates. 6.24    (b) A petition filed under this subdivision must include: 6.25    (1) a description of the facilities for which costs are to be recovered; 6.26    (2) an implementation schedule for the facilities; 6.27    (3) the utility's costs for the facilities; 6.28    (4) a description of the utility's efforts to ensure that costs of the facilities are 6.29reasonable and were prudently incurred; and 6.30    (5) a description of the benefits of the project in promoting the development of 6.31renewable energy in a manner consistent with this chapter.6.32    Sec. 9. Minnesota Statutes 2007 Supplement, section 216B.241, is amended by adding 6.33a subdivision to read:6.34    Subd. 5a.Qualifying solar energy project.(a) A utility or association may include 6.35in its conservation plan programs for the installation of qualifying solar energy projects as 7.1defined by section 216B.2411 to the extent of the spending allowed for generation projects 7.2by section 216B.2411. The cost-effectiveness of a qualifying solar energy project may 7.3be determined by a different standard than for other energy conservation improvements 7.4under this section if the commissioner determines it is in the public interest to do so to 7.5encourage solar energy projects. Energy savings from qualifying solar energy projects 7.6may not be counted toward the minimum energy savings goal of at least one percent 7.7for energy conservation improvements required under subdivision 1c, but may, if the 7.8conservation plan is approved:7.9    (1) be counted toward energy savings above that minimum percentage; and7.10    (2) be considered when establishing performance incentives under section 216B.241, 7.11subdivision 2c.7.12    (b) Qualifying solar energy projects may not be considered when establishing 7.13demand-side management targets under sections 216B.2422, 216B.243, or any other 7.14section of this chapter.7.15EFFECTIVE DATE.This section is effective the day following final enactment.7.16    Sec. 10. Minnesota Statutes 2007 Supplement, section 216B.2411, subdivision 1, 7.17is amended to read:7.18    Subdivision 1. Generation projects. (a) Any municipality or rural electric 7.19association providing electric service and subject to section 
         216B.241that is meeting the 7.20objectives under section 216B.1691 may, and each public utility may, use five percent 7.21of the total amount to be spent on energy conservation improvements under section 7.22216B.241
         , on: 7.23    (1) projects in Minnesota to construct an electric generating facility that utilizes 7.24eligible renewable energy sources as defined in subdivision 2, such as methane or other 7.25combustible gases derived from the processing of plant or animal wastes, biomass fuels 7.26such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as its 7.27primary fuel source; or7.28    (2) projects in Minnesota to install a distributed generation facility of ten megawatts 7.29or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another 7.30similarly clean fuel.; or7.31    (3) projects in Minnesota to install a qualifying solar energy project as defined in 7.32subdivision 2.7.33    (b) For public utilities, as defined under section 
         216B.02, subdivision 4, projects 7.34under this section must be considered energy conservation improvements as defined in 7.35section 
         216B.241. For cooperative electric associations and municipal utilities, projects 8.1under this section must be considered load-management activities described in section 8.2216B.241, subdivision 1
         . 8.3EFFECTIVE DATE.This section is effective the day following final enactment.8.4    Sec. 11. Minnesota Statutes 2006, section 216B.2411, subdivision 2, is amended to 8.5read:8.6    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this 8.7subdivision and section 
         216B.241, subdivision 1, have the meanings given them. 8.8    (b) "Eligible renewable energy sources" means fuels and technologies to generate 8.9electricity through the use of any of the resources listed in section 
         216B.1691, subdivision 8.101
         , paragraph (a), clause (1), except that the term "biomass" has the meaning provided 8.11under paragraph (c), and "solar" must be from a qualified solar energy project as defined in 8.12paragraph (d). 8.13    (c) "Biomass" includes:8.14    (1) methane or other combustible gases derived from the processing of plant or 8.15animal material;8.16    (2) alternative fuels derived from soybean and other agricultural plant oils or animal 8.17fats;8.18    (3) combustion of barley hulls, corn, soy-based products, or other agricultural 8.19products;8.20    (4) wood residue from the wood products industry in Minnesota or other wood 8.21products such as short-rotation woody or fibrous agricultural crops; and8.22    (5) landfill gas, mixed municipal solid waste, and refuse-derived fuel from mixed 8.23municipal solid waste.8.24    (d) "Qualifying solar energy project" means a qualifying solar thermal project or 8.25qualifying solar electric project.8.26    (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets 8.27the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant 8.28energy and transfers it to a storage medium for distribution as energy to heat or cool air or 8.29water, but does not include equipment used to heat water at a residential property (1) for 8.30domestic use if less than one-half of the energy used for that purpose is derived from the 8.31sun or (2) for use in a hot tub or swimming pool.8.32    (f) "Qualifying solar electric project" means solar electric equipment that meets the 8.33requirements of section 216C.25 with a total peak generating capacity of 100 kilowatts 8.34or less used for generating electricity primarily for use in a residential property or small 8.35business to reduce the effective electric load for that residence or small business.9.1    (g) "Residential property" means the principal residence of a homeowner at the time 9.2the solar equipment is placed in service.9.3    (h) "Small business" has the meaning given to it in section 645.445.9.4EFFECTIVE DATE.This section is effective the day following final enactment.9.5    Sec. 12. Minnesota Statutes 2006, section 216B.2424, subdivision 1, is amended to 9.6read:9.7    Subdivision 1. Farm-grown closed-loop biomass. (a) For the purposes of this 9.8section, "farm-grown closed-loop biomass" means biomass, as defined in section 9.9216C.051, subdivision 7 herbaceous crops, trees, agricultural waste, and aquatic plant 9.10matter that is used to generate electricity, but does not include mixed municipal solid 9.11waste, as defined in section 115A.03, and that:9.12    (1) is intentionally cultivated, harvested, and prepared for use, in whole or in part, 9.13as a fuel for the generation of electricity;9.14    (2) when combusted, releases an amount of carbon dioxide that is less than or 9.15approximately equal to the carbon dioxide absorbed by the biomass fuel during its 9.16growing cycle; and9.17    (3) is fired in a new or substantially retrofitted electric generating facility that is:9.18    (i) located within 400 miles of the site of the biomass production; and9.19    (ii) designed to use biomass to meet at least 75 percent of its fuel requirements.9.20    (b) The legislature finds that the negative environmental impacts within 400 miles 9.21of the facility resulting from transporting and combusting the biomass are offset in that 9.22region by the environmental benefits to air, soil, and water of the biomass production.9.23    (c) Among the biomass fuel sources that meet the requirements of paragraph (a), 9.24clauses (1) and (2), are poplar, aspen, willow, switch grass, sorghum, alfalfa, cultivated 9.25prairie grass, and sustainably managed woody biomass.9.26    (d) For the purpose of this section, "sustainably managed woody biomass" means:9.27    (1) brush, trees, and other biomass harvested from within designated utility, railroad, 9.28and road rights-of-way;9.29    (2) upland and lowland brush harvested from lands incorporated into brushland 9.30habitat management activities of the Minnesota Department of Natural Resources;9.31    (3) upland and lowland brush harvested from lands managed in accordance with 9.32Minnesota Department of Natural Resources "Best Management Practices for Managing 9.33Brushlands";9.34    (4) logging slash or waste wood that is created by harvest, by precommercial 9.35timber stand improvement to meet silvicultural objectives, or by fire, disease, or insect 10.1control treatments, and that is managed in compliance with the Minnesota Forest 10.2Resources Council's "Sustaining Minnesota Forest Resources: Voluntary Site-Level Forest 10.3Management Guidelines for Landowners, Loggers and Resource Managers" as modified 10.4by the requirement of this subdivision; and10.5    (5) trees or parts of trees that do not meet the utilization standards for pulpwood, 10.6posts, bolts, or sawtimber as described in the Minnesota Department of Natural Resources 10.7Division of Forestry Timber Sales Manual, 1998, as amended as of May 1, 2005, and the 10.8Minnesota Department of Natural Resources Timber Scaling Manual, 1981, as amended 10.9as of May 1, 2005, except as provided in paragraph (a), clause (1), and this paragraph, 10.10clauses (1) to (3).10.11    Sec. 13. Minnesota Statutes 2006, section 216B.243, is amended by adding a 10.12subdivision to read:10.13    Subd. 9.Renewable energy standard facilities.The requirements of this section 10.14do not apply to a wind energy conversion system or a solar electric generation facility that 10.15is intended to be used to meet or exceed the obligations of section 216B.1691; provided 10.16that, after notice and comment, the commission determines that the facility is a reasonable 10.17and prudent approach to meeting a utility's obligations under that section. When making 10.18this determination, the commission may consider the size of the facility relative to a 10.19utility's total need for renewable resources and alternative approaches for supplying 10.20the renewable energy to be supplied by the proposed facility, and must consider the 10.21facility's ability to promote economic development, as required under section 216B.1691, 10.22subdivision 9, maintain electric system reliability and consider impacts on ratepayers, and 10.23other criteria as the commission may determine are relevant.10.24EFFECTIVE DATE.This section is effective the day following final enactment.10.25    Sec. 14. Minnesota Statutes 2006, section 216C.051, as amended by Laws 2007, 10.26chapter 57, article 2, sections 24 and 25, is amended to read:10.27216C.051 LEGISLATIVE ELECTRIC ENERGY TASK FORCE10.28COMMISSION.10.29    Subd. 2. Establishment. (a) There is established a Legislative Electric Energy 10.30Task Force Commission to study future electric energy sources and costs and to make 10.31recommendations for legislation for an environmentally and economically sustainable 10.32and advantageous electric energy supply concerning issues related to its duties under 10.33subdivision 3.10.34    (b) The task force commission  consists of:11.1    (1) ten members of the house of representatives including the chairs of the 11.2Environment and Natural Resources Committee and the Energy Finance and Policy 11.3Division and eight members to be appointed by the speaker of the house, four of whom 11.4must be from the minority caucus appointed by the speaker of the house of representatives, 11.5four of whom must be from the minority caucus, and including the chair of the committee 11.6with primary jurisdiction over energy policy; the chair or another member of each of the 11.7committees with primary jurisdiction over environmental policy, agricultural policy, and 11.8transportation policy; and a legislator who is a member of the NextGen Energy Board; and11.9    (2) ten members of the senate including the chairs of the Environment, Energy 11.10and Natural Resources Budget Division and Energy, Utilities, Technology and 11.11Communications committees and eight members to be appointed by the Subcommittee on 11.12Committees, four of whom must be from the minority caucus.11.13    (2)  ten members of the senate to be appointed by the Subcommittee on Committees, 11.14four of whom must be from the minority caucus, and including the chair of the committee 11.15with primary jurisdiction over energy policy; the chair or another member of each of the 11.16committees with primary jurisdiction over environmental policy, agricultural policy, and 11.17transportation policy; and a legislator who is a member of the NextGen Energy Board.11.18    (c) The task forcecommission may employ full-time and part-time staff, contract 11.19for consulting services, and may reimburse the expenses of persons requested to assist 11.20it in its duties other than state employees or employees of electric utilities. The director 11.21of the Legislative Coordinating Commission shall assist the task forcecommission in 11.22administrative matters. The task forcecommission shall elect cochairs, one member of 11.23the house and one member of the senate from among the committee and subcommittee 11.24chairs named to the committee commission. The task forcecommission members from 11.25the house shall elect the house cochair, and the task forcecommission members from 11.26the senate shall elect the senate cochair.11.27    Subd. 2a.Subcommittees.The commission may establish subcommittees as 11.28necessary to perform its duties.11.29    Subd. 3. Technical and economic considerations, analyses, and 11.30recommendations Duties.(a) In light of the electric energy guidelines established in 11.31subdivision 7 and utility resource plans and competitive bidding dockets before the 11.32commission, the task force shall gather information and make recommendations to the 11.33legislature regarding potential electric energy resources. The task force may contract 11.34with one or more energy policy experts and energy economists to assist it in its analysis. 11.35The task force may not contract for service nor employ any person who was involved in 11.36any capacity in any portion of any proceeding before the Public Utilities Commission, 12.1the administrative law judge, the state Court of Appeals, or the United States Nuclear 12.2Regulatory Commission related to the dry cask storage proposal on Prairie Island. The 12.3task force must gather information on at least the following electric energy resources, but 12.4may expand its inquiry as warranted by the information collected:12.5    (1) wind energy;12.6    (2) hydrogen as a fuel carrier produced from renewable and fossil fuel resources;12.7    (3) biomass;12.8    (4) decomposition gases produced by solid waste management facilities;12.9    (5) solid waste as a direct fuel or refuse-derived fuel; and12.10    (6) clean coal technology.12.11    (b) In evaluating these electric energy resources, the task force must consider at 12.12least the following:12.13    (1) to the best of forecasting abilities, how much electric generation capacity 12.14and demand for electric energy is necessary to maintain a strong economy and a high 12.15quality of life in the state over the next 15 to 20 years; how is this demand level affected 12.16by achievement of the maximum reasonably feasible and cost-effective demand-side 12.17management and generation and distribution efficiencies;12.18    (2) what alternative forms of energy can provide a stable supply of energy and are 12.19producible and sustainable in the state and at what cost;12.20    (3) what are the costs to the state and ratepayers to ensure that new electric energy 12.21generation utilizes less environmentally damaging sources; how do those costs change 12.22as the time frame for development and implementation of new generation sources is 12.23compressed;12.24    (4) what are the implications for delivery systems for energy produced in areas of 12.25the state that do not now have high-volume transmission capability; are new transmission 12.26technologies being developed that can address some of the concerns with transmission; can 12.27a more dispersed electric generation system lessen the need for long-distance transmission;12.28    (5) what are the actual costs and benefits of purchasing electricity and fuel to 12.29generate electricity from outside the state; what are the present costs to the state's economy 12.30of exporting a large percentage of the state's energy dollars and what is the future 12.31economic impact of continuing to do so;12.32    (6) are there benefits to be had from a large immediate investment in quickly 12.33implementing alternative electric energy sources in terms of developing an exportable 12.34technology and/or commodity; is it feasible to turn around the flow of dollars for energy 12.35so that the state imports dollars and exports energy and energy technology; what is a 12.36reasonable time frame for the shift if it is possible;13.1    (7) are there taxation or regulatory barriers to developing more sustainable and 13.2less problematic electric energy generation; what are they specifically and how can they 13.3be specifically addressed;13.4    (8) can an approach be developed that moves quickly to development and 13.5implementation of alternative energy sources that can be forgiving of interim failures but 13.6that is also sufficiently deliberate to ensure ultimate success on a large scale; and13.7    (9) in what specific ways can the state assist regional energy suppliers to accelerate 13.8phasing out energy production processes that produce wastes or emissions that must 13.9necessarily be carefully controlled and monitored to minimize adverse effects on the 13.10environment and human health and to assist in developing and implementing base load 13.11energy production that both prevents or minimizes by its nature adverse environmental 13.12and human health effects and utilizes resources that are available or producible in the state.13.13    (c) The task force must study issues related to the transportation of spent nuclear 13.14fuel from this state to interim or permanent repositories outside this state. The task force 13.15must also gather information on at least the following factors, but may expand its inquiry 13.16as warranted by the information collected:13.17    (1) Minnesota's actual and projected electricity demand;13.18    (2) electricity export potential;13.19    (3) inventory of energy resources currently used to generate all electricity sold 13.20in Minnesota and an analysis of the social, economic, and environmental benefits and 13.21burdens associated with each energy resource;13.22    (4) electricity demand savings from greater efficiency; and13.23    (5) job growth and economic development potential.13.24    (a) The commission shall continuously evaluate the energy policies of this state and 13.25the degree to which they promote an environmentally and economically sustainable energy 13.26future. The commission shall monitor the state's progress in achieving its goals to develop 13.27renewable sources of electric energy under section 216B.1691, subdivision 2a, and the 13.28progress of energy-related sectors in reducing greenhouse gas emissions under the state's 13.29greenhouse gas emissions-reductions goals established in section 216H.02, subdivision 1. 13.30The commission may review proposed energy legislation and may recommend legislation. 13.31The commission shall when feasible solicit and consider public testimony regarding the 13.32economic, environmental, and social implications of state energy plans and policies. 13.33Notwithstanding any other law to the contrary the commission's evaluations and reviews 13.34under this subdivision shall include new and existing technologies for nuclear power.13.35    (d)(b) The commission may study, analyze, hold hearings, and make legislative 13.36recommendations regarding the following issues:14.1    (1) the generation, transmission, and distribution of electricity;14.2    (2) the reduction of greenhouse gas emissions;14.3    (3) the conservation of energy;14.4    (4) alternative energy sources available to replace dwindling fossil fuel and other 14.5nonrenewable fuel sources;14.6    (5) the development of renewable energy supplies;14.7    (6) the economic development potential associated with issues described in clauses 14.8(1) to (5); and 14.9    (7) other energy-related subjects the commission finds significant.14.10    Subd. 3a.Nuclear report. The public utility that owns the Prairie Island and 14.11Monticello nuclear generation facilities shall update the reports required under section 14.12116C.772, subdivisions 3 to 5
         , and shall submit those updates periodically to the Public 14.13Utilities Commission with the utility's resource plan filing under section 
         216B.2422 and to 14.14the task force commission. 14.15    Subd. 4a.Report and recommendations.By January 15, 2005, and every two 14.16years thereafter, the task force shall submit a report to the chairs of the committees in 14.17the house of representatives and the senate that have responsibility for energy and for 14.18environmental and natural resources issues that contains an overview of information 14.19gathered and analyses that have been prepared, and specific recommendations, if any, for 14.20legislative action that will ensure development and implementation of electric energy 14.21policy that will provide the state with adequate, renewable, and economic electric power 14.22for the long term. The report shall also identify issues that must be addressed to provide 14.23Minnesotans with adequate electricity from in-state renewable energy sources for the 14.24long term and export to adjacent states.14.25    Subd. 6.Assessment; appropriation.On request by the cochairs of the 14.26Legislative Task Force and after approval of the Legislative Coordinating Commission, 14.27the commissioner of commerce shall assess from all public utilities, generation and 14.28transmission cooperative electric associations, and municipal power agencies providing 14.29electric or natural gas services in Minnesota, in addition to assessments made under 14.30section 216B.62, the amount requested for the operation of the task force not to exceed 14.31$250,000 in a fiscal year. The amount assessed under this section is appropriated to the 14.32director of the Legislative Coordinating Commission for those purposes, and is available 14.33until expended. The department shall apportion those costs among all energy utilities in 14.34proportion to their respective gross operating revenues from the sale of gas or electric 14.35service within the state during the last calendar year. For the purposes of administrative 15.1efficiency, the department shall assess energy utilities and issue bills in accordance with 15.2the billing and assessment procedures provided in section 216B.62, to the extent that these 15.3procedures do not conflict with this subdivision. 15.4    Subd. 7.Guidelines; preferred electric generation sources; definitions.(a) The 15.5Legislative Task Force on Electric Energy shall undertake its responsibilities in light of 15.6the guidelines specified in this subdivision.15.7    (b) The highest priority in electric energy production and consumption is 15.8conservation of electric energy and management of demand by all segments of the 15.9community.15.10    (c) The following energy sources for generating electric power distributed in the 15.11state, listed in their descending order of preference, based on minimizing long-term 15.12negative environmental, social, and economic burdens imposed by the specific energy 15.13sources, are:15.14    (1) wind and solar;15.15    (2) biomass and low-head or refurbished hydropower;15.16    (3) decomposition gases produced by solid waste management facilities, natural 15.17gas-fired cogeneration, and waste materials or byproducts combined with natural gas;15.18    (4) natural gas, hydropower that is not low-head or refurbished hydropower, and 15.19solid waste as a direct fuel or refuse-derived fuel; and15.20    (5) coal and nuclear power.15.21    (d) For the purposes of paragraph (c) within each clause, the more efficient an energy 15.22source is in generating electricity or the more efficient a technology is that utilizes an 15.23energy source, the more preferred it is for use in generating electricity for distribution and 15.24consumption in the state.15.25    (e) For the purposes of paragraph (c), clauses (3) and (4), the use of waste materials 15.26and byproducts for generating electric power must be limited to those waste materials 15.27and byproducts that are necessarily generated or produced by efficient processes and 15.28systems. Preventing and minimizing waste and byproducts are preferred in every situation 15.29to relying on the continued generation or production of waste materials and byproducts.15.30    (f) For the purposes of this section, "preferred" or "renewable" energy sources are 15.31those described in paragraph (c), clauses (1) to (3), and "subordinate" or "traditional" 15.32energy sources are those described in paragraph (c), clauses (4) and (5).15.33    (g) For the purposes of this section:15.34    (1) "biomass" means herbaceous crops, trees, agricultural waste, and aquatic plant 15.35matter, excluding mixed municipal solid waste, as defined in section 115A.03, used to 15.36generate electricity; and 16.1    (2) "low-head hydropower" means a hydropower facility that has a head of less 16.2than 66 feet.16.3    Subd. 8. Subpoena power. The task forcecommission may issue a subpoena under 16.4section 
         3.153 to any person for production of information held by that person that is 16.5relevant to the work of the task force commission. 16.6    Subd. 8a.Manitoba Hydro information.(a) By January 1, 2008, and each year 16.7thereafter, the task force shall request the Manitoba Hydro-Electric Board to provide 16.8the following information for each community that is a signatory to the Northern Flood 16.9Agreement, including South Indian Lake:16.10    (1) median household income and number of residents employed full time and 16.11part time;16.12    (2) the number of outstanding claims filed against Manitoba Hydro by individuals 16.13and communities and the number of claims settled by Manitoba Hydro; and16.14    (3) the amount of shoreline damaged by flooding and erosion and the amount of 16.15shoreline restored and cleaned.16.16    (b) Nothing in this section shall be construed as a directive to the government of 16.17Canada or the province of Manitoba.16.18    (c) For the purposes of this subdivision, "Northern Flood Agreement" means the 16.19agreement entered into by the Northern Flood Committee, Incorporated, the Manitoba 16.20Hydro-Electric Board, the province of Manitoba, and the government of Canada on 16.21December 16, 1977.16.22    Subd. 9.Expiration.This section is repealed June 30, 2010.16.23    Subd. 10.Data from state agencies.A state agency shall reply promptly to a 16.24request for data from the commission, subject to the requirements of chapter 13 and 16.25section 15.17.16.26    Subd. 11.Assessment; appropriation.(a) Upon request by the cochairs of the 16.27commission, the commissioner of commerce shall assess the amount requested for the 16.28operation of the commission, not to exceed $250,000 in a fiscal year, from the following 16.29sources:16.30    (1) all public utilities, municipal utilities, electric cooperative associations, 16.31generation and transmission cooperative electric associations, and municipal power 16.32agencies providing electric or natural gas services in Minnesota; and16.33    (2) all bulk terminals located in this state from which petroleum products and liquid 16.34petroleum gas are dispensed for sale in this state.17.1    (b) The commissioner of commerce shall apportion the assessment amount requested 17.2among the entities in paragraph (a), clauses (1) and (2), in proportion to their respective 17.3gross operating revenues from energy sold within the state during the most recent calendar 17.4year, while ensuring that wholesale and retail sales are not double counted. 17.5    (c) The entities in paragraph (a), clauses (1) and (2), must provide information to the 17.6commissioner of commerce to allow for calculation of the assessment.17.7    (d) The assessments under this subdivision are in addition to assessments made 17.8under section 216B.62. The amount assessed under this section is appropriated to the 17.9director of the Legislative Coordinating Commission for the purposes of this section, and 17.10is available until expended. Utilities selling gas and electric service at retail must be 17.11assessed and billed in accordance with the procedures provided in section 216B.62, to the 17.12extent that these procedures do not conflict with this subdivision.17.13EFFECTIVE DATE.This section is effective January 3, 2009.17.14    Sec. 15. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision 17.15to read:17.16    Subd. 3a.Project notice.At least 90 days before filing an application with the 17.17commission, the applicant shall provide notice to each local unit of government within 17.18which a route may be proposed. The notice must describe the proposed project and the 17.19opportunity for a preapplication consultation meeting with local units of government as 17.20provided in subdivision 3b.17.21EFFECTIVE DATE.This section is effective September 1, 2008.17.22    Sec. 16. Minnesota Statutes 2006, section 216E.03, is amended by adding a subdivision 17.23to read:17.24    Subd. 3b.Preapplication consultation meetings.Within 30 days of receiving a 17.25project notice, local units of government may request the applicant to hold a consultation 17.26meeting with local units of government. Upon receiving notice from a local unit of 17.27government requesting a preapplication consultation meeting, the applicant shall arrange 17.28the meeting at a location chosen by the local units of government. A single public meeting 17.29for which each local government unit requesting a meeting is given notice satisfies the 17.30meeting requirement of this subdivision.17.31EFFECTIVE DATE.This section is effective the day following final enactment.17.32    Sec. 17. Minnesota Statutes 2006, section 216E.03, subdivision 4, is amended to read:18.1    Subd. 4. Notice of Application notice. Within 15 days after submission of an 18.2application to the commission, the applicant shall publish notice of the application in 18.3a legal newspaper of general circulation in each county in which the site or route is 18.4proposed and send a copy of the application by certified mail to any regional development 18.5commission, county, incorporated municipality, and township town in which any part 18.6of the site or route is proposed. Within the same 15 days, the applicant shall also send 18.7a notice of the submission of the application and description of the proposed project to 18.8each owner whose property is on or adjacent to any of the proposed sites for the power 18.9plant or along any of the proposed routes for the transmission line. The notice shall must18.10identify a location where a copy of the application can be reviewed. For the purpose 18.11of giving mailed notice under this subdivision, owners shall be are those shown on the 18.12records of the county auditor or, in any county where tax statements are mailed by the 18.13county treasurer, on the records of the county treasurer; but other appropriate records may 18.14be used for this purpose. The failure to give mailed notice to a property owner, or defects 18.15in the notice, shall does not invalidate the proceedings, provided a bona fide attempt to 18.16comply with this subdivision has been made. Within the same 15 days, the applicant shall 18.17also send the same notice of the submission of the application and description of the 18.18proposed project to those persons who have requested to be placed on a list maintained by 18.19the commission for receiving notice of proposed large electric generating power plants 18.20and high voltage transmission lines.18.21EFFECTIVE DATE.This section is effective the day following final enactment.18.22    Sec. 18. [216F.012] SIZE ELECTION.18.23    (a) A wind energy conversion system of less than 25 megawatts of nameplate 18.24capacity as determined under section 216F.011 is a small wind energy conversion system 18.25if, by July 1, 2009, the owner so elects in writing and submits a completed application for 18.26zoning approval and the written election to the county or counties in which the project is 18.27proposed to be located. The owner must notify the Public Utilities Commission of the 18.28election at the time the owner submits the election to the county.18.29    (b) Notwithstanding paragraph (a), a wind energy conversion system with a 18.30nameplate capacity exceeding five megawatts that is proposed to be located wholly or 18.31partially within a wind access buffer adjacent to state lands that are part of the outdoor 18.32recreation system, as enumerated in section 86A.05, is a large wind energy conversion 18.33system. The Department of Natural Resources shall negotiate in good faith with a system 18.34owner regarding siting and may support the system owner in seeking a variance from the 18.35system setback requirements if it determines that a variance is in the public interest.19.1    (c) The public utilities commission shall issue an annual report to the chairs and 19.2ranking minority members of the house of representatives and senate committees with 19.3primary jurisdiction over energy policy and natural resource policy regarding any 19.4variances applied for and not granted for systems subject to paragraph (b).19.5EFFECTIVE DATE.This section is effective the day following final enactment.19.6    Sec. 19. [216F.09] WECS AGGREGATION PROGRAM.19.7    Subdivision 1.Program established.The entity selected to provide rural wind 19.8development assistance under Laws 2007, chapter 57, article 2, section 3, subdivision 6, 19.9shall also establish a wind energy conversion system (WECS) aggregation program. The 19.10purpose of the program is to create a clearinghouse to coordinate and arrange umbrella 19.11sales arrangements for groups of individuals, farmstead property owners, farmers' 19.12cooperative associations, community-based energy project developers, school districts, 19.13and other political subdivisions to aggregate small-volume purchases, as a group, in order 19.14to place large orders for wind energy conversion systems with WECS manufacturers.19.15    Subd. 2.Responsibilities.The entity shall:19.16    (1) provide application procedures for participation in the program; 19.17    (2) set minimum standards for wind energy conversion systems to be considered for 19.18purchase through the program, which may include price, quality and installation standards, 19.19timely delivery schedules and arrangements, performance and reliability ratings, and any 19.20other factors considered necessary or desirable for participants;19.21    (3) set eligibility considerations and requirements for purchasers, including 19.22availability to the applicant of land authorized for installation and use of WECS, 19.23likelihood of a permit being approved by the commission or a county under this chapter, 19.24documentation of adequate financing, and other necessary or usual financial or business 19.25practices or requirements; 19.26    (4) provide a minimal framework for soliciting or contacting manufacturers on 19.27behalf of participants; and19.28    (5) coordinate purchase agreements between the manufacturer and participants.19.29    Subd. 3.Report.By February 1 of 2009, and each year thereafter, the commissioner 19.30of commerce shall submit a report to the chairs and ranking minority members of the 19.31senate and house of representatives committees with primary jurisdiction over energy 19.32policy on the activities and results of the program, including the number of participants 19.33and the number of purchases made.20.1    Subd. 4.Assessment; appropriation.Annual costs of the program, up to $100,000, 20.2must be assessed under section 216C.052, subdivision 2, paragraph (c), clause (1). The 20.3assessment is appropriated to the commissioner of commerce to be used by the director 20.4of the Office of Energy Security for a grant to the entity to carry out the purposes of 20.5this section.20.6EFFECTIVE DATE.This section is effective the day following final enactment.20.7    Sec. 20. [216H.07] GREENHOUSE GAS EMISSION REDUCTION 20.8ATTAINMENT; POLICY DEVELOPMENT PROCESS.20.9    Subdivision 1. Definitions.(a) For the purpose of this section, the terms defined in 20.10this subdivision have the meanings given them.20.11    (b) "Reductions" means the greenhouse gas emissions reductions goals specified in 20.12section 216H.02, subdivision 1.20.13    Subd. 2.Purpose.This section is intended to create a nonexclusive, regular, 20.14mandated process for the state to develop policies to attain the greenhouse gas reduction 20.15goals specified in section 216H.02.20.16    Subd. 3.Biennial reduction progress report.By January 15 of each odd-numbered 20.17year, the commissioners of commerce and the Pollution Control Agency shall jointly 20.18report to the chairs and ranking minority members of the legislative committees with 20.19primary policy jurisdiction over energy and environmental issues the most recent and best 20.20available evidence identifying the level of reductions already achieved and the level 20.21necessary to achieve the reductions timetable in section 216H.02. The report must be 20.22in easily understood nontechnical terms.20.23    Subd. 4.Annual legislative proposal.The commissioners of commerce and the 20.24Pollution Control Agency shall annually by January 15 provide to the chairs of the 20.25legislative committees with primary policy jurisdiction over energy and environmental 20.26issues proposed legislation the commissioners determine appropriate to achieve the 20.27reductions. The legislation must be based on the principles in subdivision 5. If the 20.28commissioners determine no legislation is appropriate, they shall report that determination 20.29to the chairs along with an explanation of the determination.20.30    Subd. 5.Reduction principles.Legislation proposed under subdivision 4 must be 20.31based on the following principles:20.32    (1) the greenhouse gas emission reduction goals specified in section 216H.02, 20.33subdivision 1, must be attained;21.1    (2) the reductions must be attained on a schedule that keeps pace with the reduction 21.2timetable required by section 216H.02, subdivision 1;21.3    (3) conservation, including ceasing some activities, doing some activities less, and 21.4doing some activities more energy efficiently, is the first choice for reduction;21.5    (4) public education is a key component;21.6    (5) all levels of government should lead by example; 21.7    (6) strategies that may lead to economic dislocation should be phased in and should 21.8be coupled with strategies that address the dislocation; and21.9    (7) there must be coordination with other federal and regional greenhouse gas 21.10emission reduction requirements so that the state benefits and is not penalized from its 21.11reduction activities.21.12    Sec. 21. [216H.10] DEFINITIONS.21.13    Subdivision 1.Applicability.For purposes of sections 216H.10 to 216H.15, the 21.14following terms have the meanings given.21.15    Subd. 2.Agency."Agency" means the Pollution Control Agency.21.16    Subd. 3.Carbon dioxide equivalent."Carbon dioxide equivalent" means the 21.17quantity of carbon dioxide that has the same global warming potential as a given amount 21.18of another greenhouse gas.21.19    Subd. 4.Commissioner."Commissioner" means the commissioner of the Pollution 21.20Control Agency.21.21    Subd. 5.Global warming."Global warming" means the observed and predicted 21.22increase in the temperature of the atmosphere near the earth's surface and the oceans.21.23    Subd. 6.Global warming potential or GWP."Global warming potential" or 21.24"GWP" means a quantitative measure of the potential of an emission of a greenhouse 21.25gas to contribute to global warming over a 100-year period expressed in terms of the 21.26equivalent emission of carbon dioxide needed to produce the same 100-year warming 21.27effect, as reported in Fourth Assessment Report: Climate Change 2007, Intergovernmental 21.28Panel on Climate Change.21.29    Subd. 7.High-GWP greenhouse gas."High-GWP greenhouse gas" means 21.30hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.21.31    Subd. 8.Mobile air conditioner."Mobile air conditioner" means mechanical 21.32vapor compression refrigeration equipment used to cool the passenger compartment of a 21.33motor vehicle.22.1    Subd. 9.Motor vehicle."Motor vehicle" has the meaning given in section 168.011, 22.2subdivision 4.22.3    Subd. 10.New motor vehicle."New motor vehicle" has the meaning given in 22.4section 80E.03, subdivision 7.22.5    Subd. 11.Refrigerant."Refrigerant" means a substance used, sold for use, or 22.6designed and intended for use in a mobile air conditioner to transfer heat out of the space 22.7being cooled.22.8EFFECTIVE DATE.This section is effective the day following final enactment.22.9    Sec. 22. [216H.11] HIGH-GWP GREENHOUSE GAS REPORTING.22.10    Subdivision 1.Gas manufacturers.Beginning October 1, 2008, and each year 22.11thereafter, a manufacturer of a high-GWP greenhouse gas must report to the agency the 22.12total amount of each high-GWP greenhouse gas sold to a purchaser in this state during 22.13the previous year.22.14    Subd. 2.Purchases.Beginning October 1, 2008, and each year thereafter, a 22.15person in this state who purchases 500 metric tons or more carbon dioxide equivalent 22.16of a high-GWP greenhouse gas must report to the agency, on a form prescribed by the 22.17commissioner, the total amount of each high-GWP greenhouse gas purchased during the 22.18previous year and the purpose for which the gas was used.22.19    Subd. 3.Acceptance of federal filing.With the approval of the commissioner, this 22.20section may be satisfied by filing with the commissioner a copy of a greenhouse gas 22.21emissions report filed with a federal agency.22.22EFFECTIVE DATE.This section is effective the day following final enactment.22.23    Sec. 23. [216H.12] MOBILE AIR CONDITIONER LEAKAGE RATES; 22.24DISCLOSURE.22.25    Subdivision 1.Leakage disclosure.Beginning January 1, 2009, a manufacturer 22.26selling or offering for sale a new motor vehicle in this state containing a mobile air 22.27conditioner that uses the high-GWP greenhouse gas HFC-134a (1,1,1,2-tetrafluoroethane) 22.28as a refrigerant must, 90 days prior to the initial sale or offer for sale, report to the 22.29commissioner the leakage rate, in grams of refrigerant per year, for the type of mobile 22.30air conditioner contained in that make, model, and model year. The leakage rate must 22.31be calculated using the information provided in the most recently published version of 22.32the SAE International document J2727, "HFC-134a Mobile Air Conditioning System 23.1Emission Chart." The method by which the leakage rate is calculated, accounting for each 23.2component of the air conditioning unit, must also be reported to the commissioner.23.3    Subd. 2.Posting.Beginning January 1, 2009, the agency and the Office of the 23.4Attorney General must post on their Web sites:23.5    (1) the leakage rate disclosed by a manufacturer under subdivision 1 for each model 23.6and make of new motor vehicle sold or offered for sale in this state; and23.7    (2) the following statement: "Vehicle air conditioning systems may leak refrigerants. 23.8Information provided in the chart compares the potential global warming effects of 23.9refrigerant leakage from different makes and models of vehicles."23.10EFFECTIVE DATE.This section is effective the day following final enactment.23.11    Sec. 24. [216H.15] ENFORCEMENT.23.12    Sections 216H.10 to 216H.12 may be enforced under section 116.072.23.13EFFECTIVE DATE.This section is effective the day following final enactment.23.14    Sec. 25. Minnesota Statutes 2007 Supplement, section 500.30, subdivision 2, is 23.15amended to read:23.16    Subd. 2. Like any conveyance. Any property owner may grant a solar or wind 23.17easement in the same manner and with the same effect as a conveyance of an interest in 23.18real property. The easements shall be created in writing and shall be filed, duly recorded, 23.19and indexed in the office of the recorder of the county in which the easement is granted. 23.20No duly recorded easement shall be unenforceable on account of lack of privity of estate 23.21or privity of contract; such easements shall run with the land or lands benefited and 23.22burdened and shall constitute a perpetual easement, except that an easement may terminate 23.23upon the conditions stated therein or pursuant to the provisions of section 
         500.20. A wind 23.24easement, easement to install wind turbines on real property, option, or lease of wind 23.25rights shall also terminate after seven years from the date the easement is created or lease 23.26is entered into, if a wind energy project on the property to which the easement or lease 23.27applies does not begin commercial operation within the seven-year period.23.28EFFECTIVE DATE.This section is effective June 1, 2010.23.29    Sec. 26. REPORT.23.30    By February 1, 2009, the commissioner of the Pollution Control Agency shall 23.31submit a report to the chairs and ranking minority members of the senate and house of 23.32representatives committees with primary jurisdiction over environmental policy that 24.1identifies the uses and emissions sources of hydrofluorocarbons, perfluorocarbons, and 24.2sulfur hexafluoride in this state and suggests options for reducing or eliminating those 24.3uses and emissions and the costs of implementing those options. The options for reducing 24.4emissions must include phasing out specific consumer products containing high global 24.5warming potential gases where that is cost-effective.24.6EFFECTIVE DATE.This section is effective the day following final enactment.24.7    Sec. 27. SOLAR RATING AND CERTIFICATION LABORATORY.24.8    The director of the Office of Energy Security shall convene technical stakeholders 24.9who are expert in the design, manufacture, installation, and operation of solar energy 24.10systems to develop criteria and characteristics for a Minnesota-based solar rating and 24.11certification laboratory. The criteria shall include, but not be limited to, consideration of 24.12durability, cold-weather operations, and indoor air quality. The director shall develop and, 24.13by September 15, 2008, issue a request for proposals for the development of a plan, based 24.14on the criteria and characteristics developed by the stakeholder group, for a solar rating 24.15and certification laboratory in the state, including cost estimates. By January 15, 2009, 24.16the director shall submit a report to the chairs of the house and senate committees with 24.17jurisdiction over energy finance issues, detailing the responses to the request and making 24.18recommendations, including draft legislation.24.19EFFECTIVE DATE.This section is effective the day following final enactment.24.20    Sec. 28. SIZE ELECTION STAKEHOLDER GROUP.24.21    (a) By July 30, 2008, the commissioner of commerce shall convene a Size Election 24.22Stakeholder Group to evaluate the effect of new Minnesota Statutes, section 216F.012, 24.23on the process for obtaining a site permit for wind energy conversion systems with 24.24a combined nameplate capacity between five and 25 megawatts. The Department of 24.25Commerce shall provide staff and administrative support to the group.24.26    (b) The stakeholder group must consist of 13 members, as follows:24.27    (1) two legislators from the house of representatives, one from the majority party 24.28and one from the minority party, appointed by the speaker of the house;24.29    (2) two legislators from the senate, one from the majority party and one from the 24.30minority party, appointed by the Subcommittee on Committees of the Committee on 24.31Rules and Administration; and24.32    (3) nine members, jointly appointed by the chairs of the senate and house of 24.33representatives committees with primary jurisdiction over energy policy. Four of the nine 24.34members must have experience developing or owning wind energy conversion systems in 25.1Minnesota with a combined nameplate capacity between five and 25 megawatts; one must 25.2represent the Department of Commerce; one must represent the Department of Natural 25.3Resources; one must represent counties or county associations; one must represent a 25.4nonprofit organization with experience in wind energy conversion system development 25.5issues; and one must represent a wildlife conservation organization. The members shall 25.6select one legislator each from the senate and house of representatives to serve as co-chairs 25.7of the stakeholder group.25.8    (c) The stakeholder group shall collect and analyze data regarding site permits for 25.9wind energy conversion systems with a combined nameplate capacity between five and 25 25.10megawatts and submit a report based on that analysis, by January 15, 2009, to the chairs 25.11and ranking minority members of the senate and house of representatives committees 25.12with primary jurisdiction over energy policy, including recommendations as to whether 25.13Minnesota Statutes, section 216F.012, should be amended.25.14    (d) Members of the stakeholder group are eligible for reimbursement of expenses, 25.15which the commissioner of commerce shall pay from the assessment under Minnesota 25.16Statutes, section 216C.052, subdivision 2, paragraph (c), clause (1).25.17EFFECTIVE DATE.This section is effective the day following final enactment.25.18    Sec. 29. STATE VIDEO FRANCHISING STUDY.25.19    Subdivision 1.Study contents.The Department of Commerce shall contract with 25.20the University of Minnesota for a study of the impact of legislation enacted in at least 25.21three states that requires franchises for video service to be issued by a state agency. The 25.22contractor conducting the study shall, prior to its initiation, consult with associations 25.23representing municipalities and communities of color. The study shall contain, at a 25.24minimum, the following information:25.25    (1) the number of new video service providers that have applied for a state video 25.26franchise;25.27    (2) the number of incumbent video service providers that have elected to terminate 25.28an existing franchise agreement and apply for a state video franchise;25.29    (3) the amount of capital invested by new video service providers to furnish video 25.30service;25.31    (4) the number of communities in which new video service providers intend to offer 25.32video services, as reflected in their application;25.33    (5) the number of communities with an incumbent video provider in which new 25.34providers intend to offer video services;26.1    (6) the number of communities with no incumbent video service provider in which 26.2new video service providers intend to offer video services;26.3    (7) the effect on video service prices in communities with an incumbent video 26.4provider in which new video service providers offer video services;26.5    (8) the effect on franchise fee revenues received by municipalities from video 26.6service providers;26.7    (9) the effect on the number of PEG channels available to communities;26.8    (10) the effect on the amount of revenues received by municipalities to support the 26.9provision of PEG programming in communities;26.10    (11) the effect on the amount of PEG programming available in communities;26.11    (12) the progress of new video providers in meeting any build-out requirements 26.12in the law; and26.13    (13) the effect on municipal services provided to communities by video service 26.14providers.26.15    Subd. 2.Report.The department shall submit the report described in subdivision 26.161 to the chairs and ranking minority members of the senate and house committees with 26.17primary jurisdiction over telecommunications policy by February 1, 2009.26.18EFFECTIVE DATE.This section is effective the day following final enactment.26.19    Sec. 30. BROADBAND MAPPING PROJECT.26.20    Subdivision 1.Project.The commissioner of commerce shall contract with a 26.21nonprofit organization that has significant experience working with broadband providers to 26.22develop geographical information system maps displaying levels of broadband service by 26.23connection speed and type of technology used and integrating the maps with demographic 26.24information to produce a comprehensive statewide inventory and mapping of existing 26.25broadband service and capability.26.26    Subd. 2.Mapping.Data must be collected from broadband providers and entered 26.27into a geographic information system to produce maps that, for the state of Minnesota and 26.28any defined geographical entity within it, clearly convey the following information:26.29    (1) areas unserved by any broadband provider;26.30    (2) areas served by a single broadband provider;26.31    (3) the location of towers used to transmit and receive broadband signals;26.32    (4) actual upstream and downstream transmission speeds at the county level of detail;26.33    (5) areas served by multiple broadband providers; and26.34    (6) the types of technology used to provide broadband service.27.1The data used to produce the maps must be capable of being integrated with demographic 27.2data from other sources including, but not limited to, population density and household 27.3income to allow for the production of maps that measure, down to the census block 27.4level of detail, various characteristics of residents in areas receiving different levels of 27.5broadband services and utilizing different technologies. Data provided by a broadband 27.6provider to the contractor under this subdivision is nonpublic data under Minnesota 27.7Statutes, section 13.02, subdivision 9. Maps produced under this subdivision are public 27.8data under Minnesota Statutes, section 13.03.27.9    For the purposes of this section, "technology" or "technologies" means different 27.10methods of connecting to the Internet including, but not limited to, cable modem, DSL, 27.11ADSL, VDSL, and fiber optics.27.12    The initial maps must be provided to the commissioner of commerce by February 27.131, 2009.27.14EFFECTIVE DATE.This section is effective the day following final enactment.27.15    Sec. 31. WIND PROPERTY INTEREST MEDIATION AND REPORT.27.16    The commissioner of commerce shall, by July 1, 2008, convene a work group of 27.17interested parties to mediate differences concerning the termination of property interests 27.18related to wind energy systems developments. The commissioner must investigate and 27.19determine whether there is a factual basis for concerns that wind energy development 27.20may be hindered if termination of those property interests is not required by law if 27.21development has not occurred over some specified period of time. The commissioner 27.22shall, by January 15, 2009, report to the chairs and ranking minority members of the 27.23committees of the legislature with primary jurisdiction over energy issues on the results of 27.24the factual investigation and any legislative recommendations related to termination of 27.25those property interests.27.26EFFECTIVE DATE.This section is effective the day following final enactment.27.27    Sec. 32. APPROPRIATION; DEPARTMENT OF COMMERCE.27.28    (a) $175,000 is appropriated for fiscal year 2009 from the telecommunication access 27.29Minnesota fund account in the special revenue fund to the commissioner of commerce for 27.30the purpose of section 30. This is a onetime appropriation.27.31    (b) $85,000 is appropriated for fiscal year 2009 from the telecommunication access 27.32Minnesota fund account in the special revenue fund to the commissioner of commerce for 27.33the purpose of section 29. This is a onetime appropriation.28.1    Sec. 33. AUTHORIZATION.28.2    The director of the Legislative Coordinating Commission may expend money 28.3appropriated for the use of the Legislative Electric Energy Task Force for the purposes of 28.4the Legislative Energy Commission established in Minnesota Statutes, section 3.8851, and 28.5those funds are available until expended and the money is appropriated to the director for 28.6that purpose.28.7EFFECTIVE DATE.This section is effective January 3, 2009.28.8    Sec. 34. REVISOR'S INSTRUCTION.28.9    The revisor of statutes shall recodify Minnesota Statutes, section 216C.051, as 28.10section 3.8851.28.11    Sec. 35.  REPEALER.28.12Minnesota Statutes 2006, section 115C.09, subdivision 3j, is repealed.28.13EFFECTIVE DATE.This section is effective the day following final enactment.28.14ARTICLE 228.15OUTDOOR LIGHTING28.16    Section 1. Minnesota Statutes 2007 Supplement, section 16B.328, is amended by 28.17adding a subdivision to read:28.18    Subd. 3.Standards for state-funded outdoor lighting fixtures.(a) An outdoor 28.19lighting fixture may be installed or replaced using state funds only if:28.20    (1) the new or replacement outdoor lighting fixture is a cutoff luminaire if the rated 28.21output of the outdoor lighting fixture is greater than 1,800 lumens;28.22    (2) the minimum illuminance adequate for the intended purpose is used with 28.23consideration given to nationally recognized standards;28.24    (3) for lighting of a designated highway of the state highway system, the Department 28.25of Transportation determines that the purpose of the outdoor lighting fixture cannot be 28.26achieved by the installation of reflective road markers, lines, warning or informational 28.27signs, or other effective passive methods; and28.28    (4) full consideration has been given to energy conservation and savings, reducing 28.29glare, minimizing light pollution, and preserving the natural night environment.28.30    (b) Paragraph (a) does not apply if:28.31    (1) a federal law, rule, or regulation preempts state law;28.32    (2) the outdoor lighting fixture is used on a temporary basis because emergency 28.33personnel require additional illumination for emergency procedures;29.1    (3) the outdoor lighting fixture is used on a temporary basis for nighttime work;29.2    (4) special events or situations require additional illumination, provided that the 29.3illumination installed shields the outdoor lighting fixtures from direct view and minimizes 29.4upward lighting and light pollution;29.5    (5) the outdoor lighting fixture is used solely to highlight the aesthetic aspects of 29.6a single object or distinctive building; or29.7    (6) a compelling safety interest exists that cannot be addressed by another method.29.8    (c) This subdivision does not apply to the operation and maintenance of lights or 29.9lighting systems purchased or installed, or for which design work is completed, before 29.10August 1, 2008.29.11    (d) This section does not apply if a state agency or local unit of government 29.12determines that compliance with this section would: 29.13    (1) require an increased use of electricity;29.14    (2) increase the construction cost of a lighting system more than 15 percent over the 29.15construction cost of a lighting system that does not comply with this section; 29.16    (3) increase the cost of operation and maintenance of the lighting system more than 29.17ten percent over the cost of operating and maintaining the existing lighting system over 29.18the life of the lighting system; or 29.19    (4) result in a negative safety impact."29.20Delete the title and insert:29.21"A bill for an act29.22relating to utilities; providing standards for state-funded outdoor lighting 29.23fixtures; modifying Petrofund program; providing for replacement of PVC 29.24piping in heating oil systems in residential locations; providing that certain 29.25eminent domain appraisal and negotiation requirements apply to public service 29.26corporations; modifying cost recovery provisions for electric transmission and 29.27renewable energy facilities; providing for solar-generated electricity under a 29.28utility's renewable energy standard; allowing utilities to fund certain solar energy 29.29products under the conservation improvement program; exempting certain wind 29.30and solar projects from the requirement to obtain a certificate of need; modifying 29.31and adding provisions relating to notice to and meetings with local units of 29.32government for siting large electric generating plant or high-voltage transmission 29.33line; allowing size election for certain wind energy conversion systems and 29.34creating Size Election Stakeholder Group; creating a wind project aggregation 29.35program; requiring reports on reducing greenhouse gas emissions; requiring 29.36reporting of emissions or leakage of greenhouse gases with high global warming 29.37potential; providing for wind and solar easements; requiring development of 29.38plan for solar rating and certification laboratory; requiring studies and reports; 29.39appropriating money;amending Minnesota Statutes 2006, sections 115C.04, 29.40subdivision 3; 115C.09, subdivision 3h, by adding a subdivision; 216B.16, 29.41subdivision 7b; 216B.1645, subdivisions 1, 2; 216B.2411, subdivision 2; 29.42216B.2424, subdivision 1; 216B.243, by adding a subdivision; 216C.051, as 29.43amended; 216E.03, subdivision 4, by adding subdivisions; Minnesota Statutes 29.442007 Supplement, sections 16B.328, by adding a subdivision; 216B.1645, 29.45subdivision 2a; 216B.241, by adding a subdivision; 216B.2411, subdivision 1; 30.1500.30, subdivision 2; proposing coding for new law in Minnesota Statutes, 30.2chapters 117; 216F; 216H; repealing Minnesota Statutes 2006, section 115C.09, 30.3subdivision 3j."
         		We request the adoption of this report and repassage of the bill.Senate Conferees: (Signed) Yvonne Prettner Solon, John Doll, Julie A. Rosen, Ellen R. Anderson, Dan SparksHouse Conferees: (Signed) Bill Hilty, Sheldon Johnson, Brita Sailer, Kathy Brynaert, Torrey Westrom

31.1We request the adoption of this report and repassage of the bill.31.2Senate Conferees:(Signed)31.3
                     							.....
                     						
                     							.....
                     						31.4Yvonne Prettner SolonJohn Doll31.5
                     							.....
                     						
                     							.....
                     						31.6Julie A. RosenEllen R. Anderson31.7
                     							.....
                     						31.8Dan Sparks31.9House Conferees:(Signed)31.10
                     							.....
                     						
                     							.....
                     						31.11Bill HiltySheldon Johnson31.12
                     							.....
                     						
                     							.....
                     						31.13Brita SailerKathy Brynaert31.14
                     							.....
                     						31.15Torrey Westrom