1.1 	A bill for an act
1.2 	relating to energy; providing for energy conservation; regulating utility rates; 
1.3 	providing for various Legislative Energy Commission studies; regulating 
1.4 	utilities; amending Minnesota Statutes 2008, sections 216A.03, subdivision 6, by 
1.5 	adding a subdivision; 216B.16, subdivisions 2, 6c, 7b, by adding a subdivision; 
1.6 	216B.1645, subdivision 2a; 216B.169, subdivision 2; 216B.1691, subdivision 2a; 
1.7 	216B.23, by adding a subdivision; 216B.241, subdivisions 1c, 5a, 9; 216B.2411, 
1.8 	subdivisions 1, 2; 216B.2424, subdivision 5a; 216B.243, subdivisions 8, 9; 
1.9 	216C.11; proposing coding for new law in Minnesota Statutes, chapters 216B; 
1.10 	216C; repealing Laws 2007, chapter 3, section 3.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2008, section 216A.03, subdivision 6, is amended to 
1.13 	read:
1.14 		Subd. 6.Record of proceedings. An audio magnetic or audio electronic recording 
1.15 	device shall be used to keep a record of all proceedings before the commission unless the
1.16 	commission provides a hearing reporter to record the proceeding.

1.17 	Sec. 2. Minnesota Statutes 2008, section 216A.03, is amended by adding a subdivision 
1.18 	to read:
1.19 		Subd. 6a.Hearing reporter. A magnetically or electronically recorded record is 
1.20 	not required if the commission requires a hearing reporter to record the proceeding. The 
1.21 	commission may delegate to the executive secretary authority to require hearing reporter 
1.22 	services. The cost of hearing reporter services must be borne by the utility, telephone 
1.23 	company, or telecommunications carrier that is the subject of the proceeding. If more than 
1.24 	one company is the subject of a proceeding, the commission or, if the commission so 
1.25 	delegates, the executive secretary, shall determine how the hearing reporter costs are to 
1.26 	be allocated for the proceeding.

2.1 	Sec. 3. [216B.0952] REPORT ON PROVIDING DELIVERED HOME HEATING 
2.2 	FUEL.
2.3 	(a) A fuel oil or propane company receiving $150,000 or more from the Low Income 
2.4 	Home Energy Assistance Program (LIHEAP) for the previous heating season for deliveries 
2.5 	to customers in the state must report the following information to the Office of Energy 
2.6 	Security by August 1, next following the heating season on a form prepared by the office:
2.7 	(1) its total number of customers;
2.8 	(2) its total number of customers receiving LIHEAP assistance; and
2.9 	(3) all of the following separately for its residential and residential LIHEAP 
2.10 	customers:
2.11 	(i) the number of customers refused delivery at any time during the heating season. 
2.12 	Vendors must report if they refused delivery to the same service address more than one 
2.13 	time during the heating season;
2.14 	(ii) the number of customers on keep-fill;
2.15 	(iii) the number of full and partial pre-buy customers;
2.16 	(iv) the number of customers currently on budget-billing or payment plans;
2.17 	(v) the number of customers currently behind on their bills;
2.18 	(vi) the amount of LIHEAP funding received for the previous heating season;
2.19 	(vii) the per gallon price for fuel for each of the heating season months;
2.20 	(viii) all non-fuel-related fees paid by LIHEAP funds; and
2.21 	(ix) a price list of routine services that are normal and customary, including, but 
2.22 	not limited to:
2.23 	(A) leak or pressure test fee;
2.24 	(B) minimum delivery amounts and fees;
2.25 	(C) special trip during business hours and nonbusiness hours;
2.26 	(D) same-day delivery fee;
2.27 	(E) after hours, weekend, and holiday delivery fee; and
2.28 	(F) next work day delivery fee.
2.29 	The Office of Energy Security must regularly track delivered heating fuel prices 
2.30 	throughout the year.
2.31 	(b) For the purpose of this section, "heating season" means the period from October 
2.32 	15 to the next April 15.

2.33 	Sec. 4. Minnesota Statutes 2008, section 216B.16, subdivision 2, is amended to read:
2.34 		Subd. 2.Suspension of proposed rate; hearing; final determination defined. (a) 
2.35 	Whenever there is filed with the commission a schedule modifying or resulting in a change 
3.1 	in any rates then in force as provided in subdivision 1, the commission may suspend the 
3.2 	operation of the schedule by filing with the schedule of rates and delivering to the affected 
3.3 	utility a statement in writing of its reasons for the suspension at any time before the rates 
3.4 	become effective. The suspension shall not be for a longer period than ten months beyond 
3.5 	the initial filing date except as provided in this subdivision or subdivision 1a.
3.6 	(b) During the suspension the commission shall determine whether all questions of 
3.7 	the reasonableness of the rates requested raised by persons deemed interested or by the 
3.8 	department can be resolved to the satisfaction of the commission. If the commission 
3.9 	finds that all significant issues raised have not been resolved to its satisfaction, or upon 
3.10 	petition by ten percent of the affected customers or 250 affected customers, whichever is 
3.11 	less, it shall refer the matter to the Office of Administrative Hearings with instructions 
3.12 	for a public hearing as a contested case pursuant to chapter 14, except as otherwise 
3.13 	provided in this section.
3.14 	(c) The commission may order that the issues presented by the proposed rate 
3.15 	changes be bifurcated into two separate hearings as follows: (1) determination of the 
3.16 	utility's revenue requirements and (2) determination of the rate design. Upon issuance of 
3.17 	both administrative law judge reports, the issues shall again be joined for consideration 
3.18 	and final determination by the commission.
3.19 	(d) All prehearing discovery activities of state agency intervenors shall be 
3.20 	consolidated and conducted by the Department of Commerce.
3.21 	(e) If the commission does not make a final determination concerning a schedule of 
3.22 	rates within ten months after the initial filing date, the schedule shall be deemed to have 
3.23 	been approved by the commission; except if:
3.24 	(1) an extension of the procedural schedule has been granted under paragraph (f) or 
3.25 	subdivision 1a, in which case the schedule of rates is deemed to have been approved by 
3.26 	the commission on the last day of the extended period of suspension; or
3.27 	(2) a settlement has been submitted to and rejected by the commission and the 
3.28 	commission does not make a final determination concerning the schedule of rates, the 
3.29 	schedule of rates is deemed to have been approved 60 days after the initial or, if applicable, 
3.30 	the extended period of suspension.
3.31 	(f) If the commission finds that it has insufficient time during the suspension period 
3.32 	to make a final determination of a case involving changes in general rates because of the 
3.33 	need to make a final determination of another previously filed any pending case involving 
3.34 	changes in general rates under this section or section 237.075, the commission may extend 
3.35 	the suspension period to the extent necessary to allow itself 20 working days to allow up 
3.36 	to a total of 90 additional calendar days to make the final determination after it has made a 
4.1 	final determination in the previously filed case. An extension of the suspension period 
4.2 	under this paragraph does not alter the setting of interim rates under subdivision 3. 
4.3 	(g) For the purposes of this section, "final determination" means the initial decision 
4.4 	of the commission and not any order which may be entered by the commission in response 
4.5 	to a petition for rehearing or other further relief. The commission may further suspend 
4.6 	rates until it determines all those petitions.

4.7 	Sec. 5. Minnesota Statutes 2008, section 216B.16, subdivision 6c, is amended to read:
4.8 		Subd. 6c.Incentive plan for energy conservation improvement. (a) The 
4.9 	commission may order public utilities to develop and submit for commission approval 
4.10 	incentive plans that describe the method of recovery and accounting for utility 
4.11 	conservation expenditures and savings. In developing the incentive plans the commission 
4.12 	shall ensure the effective involvement of interested parties.
4.13 	(b) In approving incentive plans, the commission shall consider:
4.14 	(1) whether the plan is likely to increase utility investment in cost-effective energy 
4.15 	conservation;
4.16 	(2) whether the plan is compatible with the interest of utility ratepayers and other 
4.17 	interested parties;
4.18 	(3) whether the plan links the incentive to the utility's performance in achieving 
4.19 	cost-effective conservation; and
4.20 	(4) whether the plan is in conflict with other provisions of this chapter.
4.21 	(c) The commission may set rates to encourage the vigorous and effective 
4.22 	implementation of utility conservation programs. The commission may:
4.23 	(1) increase or decrease any otherwise allowed rate of return on net investment based 
4.24 	upon the utility's skill, efforts, and success in conserving energy;
4.25 	(2) share between ratepayers and utilities the net savings resulting from energy 
4.26 	conservation programs to the extent justified by the utility's skill, efforts, and success in 
4.27 	conserving energy; and
4.28 	(3) compensate the utility for earnings lost as a result of its conservation programs
4.29 	adopt any mechanism that satisfies the criteria of this subdivision.

4.30 	Sec. 6. Minnesota Statutes 2008, section 216B.16, subdivision 7b, is amended to read:
4.31 		Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision 
4.32 	of this chapter, the commission may approve a tariff mechanism for the automatic annual 
4.33 	adjustment of charges for the Minnesota jurisdictional costs of (i) new transmission 
4.34 	facilities that have been separately filed and reviewed and approved by the commission 
5.1 	under section 216B.243or are certified as a priority project or deemed to be a priority 
5.2 	transmission project under section 216B.2425; and (ii) charges incurred by a utility that 
5.3 	accrue from other transmission owners' regionally planned transmission projects that have 
5.4 	been determined by the Midwest Independent System Operator to benefit the utility, as 
5.5 	provided for under a federally approved tariff. 
5.6 	(b) Upon filing by a public utility or utilities providing transmission service, the 
5.7 	commission may approve, reject, or modify, after notice and comment, a tariff that: 
5.8 	(1) allows the utility to recover on a timely basis the costs net of revenues of 
5.9 	facilities approved under section 216B.243 or certified or deemed to be certified under 
5.10 	section 216B.2425 or exempt from the requirements of section 216B.243; 
5.11 	(2) allows the charges incurred by a utility that accrue from other transmission 
5.12 	owners' regionally planned transmission projects that have been determined by the 
5.13 	Midwest Independent System Operator to benefit the utility, as provided for under a 
5.14 	federally approved tariff. These charges must be reduced or offset by revenues received 
5.15 	by the utility and by amounts the utility charges to other regional transmission owners, to 
5.16 	the extent those revenues and charges have not been otherwise offset; 
5.17 	(3) allows a return on investment at the level approved in the utility's last general 
5.18 	rate case, unless a different return is found to be consistent with the public interest; 
5.19 	(4) provides a current return on construction work in progress, provided that 
5.20 	recovery from Minnesota retail customers for the allowance for funds used during 
5.21 	construction is not sought through any other mechanism; 
5.22 	(5) allows for recovery of other expenses if shown to promote a least-cost project 
5.23 	option or is otherwise in the public interest; 
5.24 	(6) allocates project costs appropriately between wholesale and retail customers; 
5.25 	(7) provides a mechanism for recovery above cost, if necessary to improve the 
5.26 	overall economics of the project or projects or is otherwise in the public interest; and 
5.27 	(8) terminates recovery once costs have been fully recovered or have otherwise 
5.28 	been reflected in the utility's general rates. 
5.29 	(c) A public utility may file annual rate adjustments to be applied to customer bills 
5.30 	paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide: 
5.31 	(1) a description of and context for the facilities included for recovery; 
5.32 	(2) a schedule for implementation of applicable projects; 
5.33 	(3) the utility's costs for these projects; 
5.34 	(4) a description of the utility's efforts to ensure the lowest costs to ratepayers for 
5.35 	the project; and 
6.1 	(5) calculations to establish that the rate adjustment is consistent with the terms 
6.2 	of the tariff established in paragraph (b). 
6.3 	(d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in 
6.4 	paragraph (b), the commission shall approve the annual rate adjustments provided that, 
6.5 	after notice and comment, the costs included for recovery through the tariff were or are 
6.6 	expected to be prudently incurred and achieve transmission system improvements at the 
6.7 	lowest feasible and prudent cost to ratepayers. 

6.8 	Sec. 7. Minnesota Statutes 2008, section 216B.16, is amended by adding a subdivision 
6.9 	to read:
6.10 		Subd. 7d.Central Corridor utility zone cost adjustment. (a) The Central 
6.11 	Corridor utility zone is the area extending from the Union Depot Station in St. Paul to the 
6.12 	proposed multimodal station in Minneapolis along the route of the light rail transit project 
6.13 	connecting those two points, and an area extending approximately one-quarter mile from 
6.14 	that route and including the entire University of Minnesota, Minneapolis campus.
6.15 	(b) A public utility that provides retail electric service within the Central Corridor 
6.16 	utility zone and that is required to replace, relocate, construct, or install new facilities, 
6.17 	may apply to the commission for approval of new facilities in the Central Corridor 
6.18 	utility zone and facilities outside the zone that the utility demonstrates must be changed 
6.19 	as a direct result of changes within the zone. Facilities proposed under this subdivision 
6.20 	may include transmission facilities, distribution facilities, generation facilities, advanced 
6.21 	technology-assisted efficiency devices, and energy storage facilities not otherwise subject 
6.22 	to section 216B.243, or chapter 216E, 216F, or 216G. Upon approval under paragraph (c), 
6.23 	the utility may construct and install the facilities.
6.24 	(c) The commission may approve the construction and installation of facilities in 
6.25 	the Central Corridor mass transit utility zone proposed by a utility under paragraph (b) 
6.26 	upon a finding:
6.27 	(1) that the facilities:
6.28 	(i) are necessary to provide electric service;
6.29 	(ii) assist future development of renewable energy, conservation, electric vehicles, 
6.30 	and advanced technology-assisted efficiency programs and devices; or
6.31 	(iii) are exploratory, experimental, or research facilities to advance the use of 
6.32 	renewable energy, conservation, electric vehicles, and advanced technology-assisted 
6.33 	efficiency programs and devices;
7.1 	(2) that the utility has engaged in a cooperative process with affected local and state 
7.2 	government agencies in the design, planning, or construction of the Central Corridor 
7.3 	utility zone project and changes to utility facilities;
7.4 	(3) that the utility and local units of government have made reasonable efforts to 
7.5 	seek federal, state, or private funds that may be available to mass transit and energy 
7.6 	projects; and
7.7 	(4) that the utility has made reasonable efforts to minimize the project costs and 
7.8 	maximize the value of the facilities to customers.
7.9 	(d) Upon request of the commission, the utility shall submit periodic reports to 
7.10 	the commission reviewing the cost and benefits of the facilities constructed within the 
7.11 	Central Corridor utility zone and their potential applicability to other areas outside the 
7.12 	Central Corridor utility zone.

7.13 	Sec. 8. Minnesota Statutes 2008, section 216B.1645, subdivision 2a, is amended to 
7.14 	read:
7.15 		Subd. 2a. Cost recovery for utility's renewable facilities. (a) A utility may petition 
7.16 	the commission to approve a rate schedule that provides for the automatic adjustment of 
7.17 	charges to recover prudently incurred investments, expenses, or costs associated with 
7.18 	facilities constructed, owned, or operated by a utility to satisfy the requirements of section 
7.19 	216B.1691, provided those facilities were previously approved by the commission under 
7.20 	section 216B.2422 or 216B.243, or were determined by the commission to be reasonable 
7.21 	and prudent under section 216B.243, subdivision 9. For facilities not subject to review 
7.22 	by the commission under section 216B.2422 or 216B.243, a utility shall petition the 
7.23 	commission for eligibility for cost recovery under this section prior to requesting cost 
7.24 	recovery for the facility. The commission may approve, or approve as modified, a rate 
7.25 	schedule that: 
7.26 	(1) allows a utility to recover directly from customers on a timely basis the costs of 
7.27 	qualifying renewable energy projects, including: 
7.28 	(i) return on investment; 
7.29 	(ii) depreciation; 
7.30 	(iii) ongoing operation and maintenance costs; 
7.31 	(iv) taxes; and 
7.32 	(v) costs of transmission and other ancillary expenses directly allocable to 
7.33 	transmitting electricity generated from a project meeting the specifications of this 
7.34 	paragraph; 
8.1 	(2) provides a current return on construction work in progress, provided that recovery 
8.2 	of these costs from Minnesota ratepayers is not sought through any other mechanism; 
8.3 	(3) allows recovery of other expenses incurred that are directly related to a 
8.4 	renewable energy project, including expenses for energy storage, provided that the 
8.5 	utility demonstrates to the commission's satisfaction that the expenses improve project 
8.6 	economics, ensure project implementation, advance research and understanding of how 
8.7 	storage devices may improve renewable energy projects, or facilitate coordination with 
8.8 	the development of transmission necessary to transport energy produced by the project 
8.9 	to market; 
8.10 	(4) allocates recoverable costs appropriately between wholesale and retail customers; 
8.11 	(5) terminates recovery when costs have been fully recovered or have otherwise 
8.12 	been reflected in a utility's rates. 
8.13 	(b) A petition filed under this subdivision must include: 
8.14 	(1) a description of the facilities for which costs are to be recovered; 
8.15 	(2) an implementation schedule for the facilities; 
8.16 	(3) the utility's costs for the facilities; 
8.17 	(4) a description of the utility's efforts to ensure that costs of the facilities are 
8.18 	reasonable and were prudently incurred; and 
8.19 	(5) a description of the benefits of the project in promoting the development of 
8.20 	renewable energy in a manner consistent with this chapter. 

8.21 	Sec. 9. Minnesota Statutes 2008, section 216B.169, subdivision 2, is amended to read:
8.22 		Subd. 2.Renewable and high-efficiency energy rate options. (a) EachA utility 
8.23 	shallmay offer its customers, and shall advertise the offer at least annually, one or 
8.24 	more options that allow a customer to determine that a certain amount of the electricity 
8.25 	generated or purchased on behalf of the customer is renewable energy or energy 
8.26 	generated by high-efficiency, low-emissions, distributed generation such as fuel cells and 
8.27 	microturbines fueled by a renewable fuel.
8.28 	(b) Eachpublic utility shall file an implementation plan within 90 days of July 1, 
8.29 	2001, to implement paragraph (a).
8.30 	(c) (b) Rates charged to customers must be calculated using the utility's cost of 
8.31 	acquiring the energy for the customer and must:
8.32 	(1) reflect the difference between the cost of generating or purchasing the renewable 
8.33 	energy and the cost of generating or purchasing the same amount of nonrenewable energy; 
8.34 	and
9.1 	(2) be distributed on a per kilowatt-hour basis among all customers who choose to 
9.2 	participate in the program.
9.3 	(d)Implementation of these rate options may reflect a reasonable amount of lead 
9.4 	time necessary to arrange acquisition of the energy.(c) The utility may acquire the 
9.5 	energy demanded by customers, in whole or in part, through procuring or generating the 
9.6 	renewable energy directly, or through the purchase of credits from a provider that has 
9.7 	received certification of eligible power supply pursuant to subdivision 3. If a utility is not 
9.8 	able to arrange an adequate supply of renewable or high-efficiency energy to meet its 
9.9 	customers' demand under this section, the utility must file a report with the commission 
9.10 	detailing its efforts and reasons for its failure.

9.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.12 	Sec. 10. Minnesota Statutes 2008, section 216B.1691, subdivision 2a, is amended to 
9.13 	read:
9.14 		Subd. 2a.Eligible energy technology standard. (a) Except as provided in 
9.15 	paragraph (b), each electric utility shall generate or procure sufficient electricity generated 
9.16 	by an eligible energy technology to provide its retail customers in Minnesota, or the 
9.17 	retail customers of a distribution utility to which the electric utility provides wholesale 
9.18 	electric service, so that at least the following standard percentages of the electric utility's 
9.19 	total retail electric sales to retail customers in Minnesota are generated by eligible energy 
9.20 	technologies by the end of the year indicated:

9.21	(1)
	2012
	12 percent
	
9.22	(2)
	2016
	17 percent
	
9.23	(3)
	2020
	20 percent
	
9.24	(4)
	2025
	25 percent.
	
9.25 	(b) An electric utility that owned a nuclear generating facility as of January 1, 2007, 
9.26 	must meet the requirements of this paragraph rather than paragraph (a). An electric utility 
9.27 	subject to this paragraph must generate or procure sufficient electricity generated by 
9.28 	an eligible energy technology to provide its retail customers in Minnesota or the retail 
9.29 	customer of a distribution utility to which the electric utility provides wholesale electric 
9.30 	service so that at least the following percentages of the electric utility's total retail electric 
9.31 	sales to retail customers in Minnesota are generated by eligible energy technologies by the 
9.32 	end of the year indicated:

9.33	(1)
	2010
	15 percent
	
9.34	(2)
	2012
	18 percent
	
10.1	(3)
	2016
	25 percent
	
10.2	(4)
	2020
	30 percent.
	
10.3 	Of the 30 percent in 2020, at least 25 percent must be generated by solar energy or
10.4 	wind energy conversion systems and the remaining five percent by other eligible energy 
10.5 	technology. Of the 25 percent that must be generated by wind or solar, no more than 
10.6 	one percent may be solar generated and the remaining 24 percent or greater must be 
10.7 	wind generated.

10.8 	Sec. 11. Minnesota Statutes 2008, section 216B.23, is amended by adding a subdivision 
10.9 	to read:
10.10 		Subd. 1a.Authority to issue refund. On determining that a public utility has 
10.11 	charged a rate in violation of this chapter, a commission rule, or a commission order, the 
10.12 	commission, after conducting a proceeding, may require the public utility to refund to its 
10.13 	customers, in a manner approved by the commission, any revenues the commission finds 
10.14 	were collected as a result of the unlawful conduct. Any refund authorized by this section 
10.15 	is permitted in addition to any remedies authorized by section 216B.16 or any other law 
10.16 	governing rates. Exercising authority under this section does not preclude the commission 
10.17 	from pursuing penalties under sections 216B.57 to 216B.61 for the same conduct. Nothing 
10.18 	in this section shall be construed as allowing retroactive ratemaking. In addition, nothing 
10.19 	in this section shall be construed to allow refunds based on claims that prior or current 
10.20 	approved rates have been unjust, unreasonable, unreasonably preferential, discriminatory, 
10.21 	insufficient, inequitable, or inconsistent in application to a class of customers. Moreover, 
10.22 	nothing in this section shall be construed to allow refunds based on claims that approved 
10.23 	rates have not encouraged energy conservation, encouraged renewable energy use, or 
10.24 	furthered the goals of section 216B.164, 216B.241, or 216C.05. A refund under this 
10.25 	subdivision shall not apply to revenues collected more than six years prior to the date of 
10.26 	the notice of the commission proceeding.

10.27 	Sec. 12. Minnesota Statutes 2008, section 216B.241, subdivision 1c, is amended to 
10.28 	read:
10.29 		Subd. 1c.Energy-saving goals. (a) The commissioner shall establish energy-saving 
10.30 	goals for energy conservation improvement expenditures and shall evaluate an energy 
10.31 	conservation improvement program on how well it meets the goals set.
10.32 	(b) Each individual utility and association shall have an annual energy-savings 
10.33 	goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the 
10.34 	commissioner under paragraph (d). The savings goals must be calculated based on the 
11.1 	most recent three-year weather normalized average. A utility or association may elect to 
11.2 	carry forward energy savings in excess of 1.5 percent for a year to the succeeding three 
11.3 	calendar years, except that savings from electric utility infrastructure projects allowed 
11.4 	under paragraph (d) may be carried forward for five years. A particular energy savings can 
11.5 	be used only for one year's goal.
11.6 	(c) The commissioner must adopt a filing schedule that is designed to have all 
11.7 	utilities and associations operating under an energy-savings plan by calendar year 2010.
11.8 	(d) In its energy conservation improvement plan filing, a utility or association may 
11.9 	request the commissioner to adjust its annual energy-savings percentage goal based on 
11.10 	its historical conservation investment experience, customer class makeup, load growth, 
11.11 	a conservation potential study, or other factors the commissioner determines warrants 
11.12 	an adjustment. The commissioner may not approve a plan that provides for an annual 
11.13 	energy-savings goal of less than one percent of gross annual retail energy sales from 
11.14 	energy conservation improvements. 
11.15 	A utility or association may include in its energy conservation plan energy savings 
11.16 	from electric utility infrastructure projects approved by the commission under section 
11.17 	216B.1636 or waste heat recovery converted into electricity projects that may count as 
11.18 	energy savings in addition to the minimum energy-savings goal of at least one percent for 
11.19 	energy conservation improvements. Electric utility infrastructure projects must result in 
11.20 	increased energy efficiency greater than that which would have occurred through normal 
11.21 	maintenance activity.
11.22 	(e) An energy-savings goal is not satisfied by attaining the revenue expenditure 
11.23 	requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the 
11.24 	energy-savings goal established in this subdivision.
11.25 	(f) An association or utility is not required to make energy conservation investments 
11.26 	to attain the energy-savings goals of this subdivision that are not cost-effective even 
11.27 	if the investment is necessary to attain the energy-savings goals. For the purpose of 
11.28 	this paragraph, in determining cost-effectiveness, the commissioner shall consider the 
11.29 	costs and benefits to ratepayers, the utility, participants, and society. In addition, the 
11.30 	commissioner shall consider the rate at which an association or municipal utility is 
11.31 	increasing its energy savings and its expenditures on energy conservation.
11.32 	(g) On an annual basis, the commissioner shall produce and make publicly available 
11.33 	a report on the annual energy savings and estimated carbon dioxide reductions achieved 
11.34 	by the energy conservation improvement programs for the two most recent years for 
11.35 	which data is available. The commissioner shall report on program performance both in 
12.1 	the aggregate and for each entity filing an energy conservation improvement plan for 
12.2 	approval or review by the commissioner.
12.3 	(h) By January 15, 2010, the commissioner shall report to the legislature whether 
12.4 	the spending requirements under subdivisions 1a and 1b are necessary to achieve the 
12.5 	energy-savings goals established in this subdivision.

12.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.7 	Sec. 13. Minnesota Statutes 2008, section 216B.241, subdivision 5a, is amended to 
12.8 	read:
12.9 		Subd. 5a.Qualifying solar energy project. (a) A utility or association may include 
12.10 	in its conservation plan programs for the installation of qualifying solar energy projects as 
12.11 	defined by section 216B.2411 to the extent of the spending allowed for generation projects 
12.12 	by section 216B.2411. The cost-effectiveness of a qualifying solar energy project may 
12.13 	be determined by a different standard than for other energy conservation improvements 
12.14 	under this section if the commissioner determines it is in the public interest to do so to 
12.15 	encourage solar energy projects. Energy savings from qualifying solar energy projects 
12.16 	may not be counted toward the minimum energy-savings goal of at least one percent 
12.17 	for energy conservation improvements required under subdivision 1c, but may, if the 
12.18 	conservation plan is approved:
12.19 	(1) be counted toward energy savings above that minimum percentage; and
12.20 	(2) be considered when establishing performance incentives under section 216B.241, 
12.21 	subdivision 2c eligible for a performance incentive under section 216B.16, subdivision 6c, 
12.22 	or 216B.241, subdivision 2c, that is distinct from the incentive for energy conservation 
12.23 	and is based on the competitiveness and cost-effectiveness of solar projects in relation to 
12.24 	other potential solar projects available to the utility.
12.25 	(b) Qualifying solar energy projects may not be considered when establishing 
12.26 	demand-side management targets under section 216B.2422, 216B.243, or any other 
12.27 	section of this chapter.

12.28 	Sec. 14. Minnesota Statutes 2008, section 216B.241, subdivision 9, is amended to read:
12.29 		Subd. 9.Building performance standards; Sustainable Building 2030. (a) The 
12.30 	purpose of this subdivision is to establish cost-effective energy-efficiency performance 
12.31 	standards for new and substantially reconstructed commercial, industrial, and institutional 
12.32 	buildings that can significantly reduce carbon dioxide emissions by lowering energy use in 
12.33 	new and substantially reconstructed buildings. For the purposes of this subdivision, the 
12.34 	establishment of these standards may be referred to as Sustainable Building 2030.
13.1 	(b) The commissioner shall contract with the Center for Sustainable Building 
13.2 	Research at the University of Minnesota to coordinate development and implementation 
13.3 	of energy-efficiency performance standards, strategic planning, research, data analysis, 
13.4 	technology transfer, training, and other activities related to the purpose of Sustainable 
13.5 	Building 2030. The commissioner and the Center for Sustainable Building Research 
13.6 	shall, in consultation with utilities, builders, developers, building operators, and experts 
13.7 	in building design and technology, develop a Sustainable Building 2030 implementation 
13.8 	plan that must address, at a minimum, the following issues:
13.9 	(1) training architects to incorporate the performance standards in building design;
13.10 	(2) incorporating the performance standards in utility conservation improvement 
13.11 	programs; and
13.12 	(3) developing procedures for ongoing monitoring of energy use in buildings that 
13.13 	have adopted the performance standards.
13.14 	The plan must be submitted to the chairs and ranking minority members of the senate and 
13.15 	house of representatives committees with primary jurisdiction over energy policy by 
13.16 	July 1, 2009.
13.17 	(c) Sustainable Building 2030 energy-efficiency performance standards must be firm, 
13.18 	quantitative measures of total building energy use and associated carbon dioxide emissions 
13.19 	per square foot for different building types and uses, that allow for accurate determinations 
13.20 	of a building's conformance with a performance standard. The energy-efficiency 
13.21 	performance standards must be updated every three or five years to incorporate all 
13.22 	cost-effective measures. The performance standards must reflect the reductions in carbon 
13.23 	dioxide emissions per square foot resulting from actions taken by utilities to comply 
13.24 	with the renewable energy standards in section 216B.1691. The performance standards 
13.25 	should be designed to achieve reductions equivalent to the following reduction schedule, 
13.26 	measured against energy consumption by an average building in each applicable building 
13.27 	sector in 2003: (1) 60 percent in 2010; (2) 70 percent in 2015; (3) 80 percent in 2020; 
13.28 	and (4) 90 percent in 2025. A performance standard must not be established or increased 
13.29 	absent a conclusive engineering analysis that it is cost-effective based upon established 
13.30 	practices used in evaluating utility conservation improvement programs.
13.31 	(d) The annual amount of the contract with the Center for Sustainable Building 
13.32 	Research is up to $500,000. The Center for Sustainable Building Research shall expend 
13.33 	no more than $150,000 of this amount each year on administration, coordination, and 
13.34 	oversight activities related to Sustainable Building 2030. The balance of contract funds 
13.35 	must be spent for subcontracts with not-for-profit energy organizations, architecture and 
13.36 	engineering firms, and other qualified entities to undertake technical projects and activities 
14.1 	in support of Sustainable Building 2030. The primary work to be accomplished each 
14.2 	year by qualified technical experts under subcontracts is the development and thorough 
14.3 	justification of recommendations for specific energy-efficiency performance standards. 
14.4 	Additional work may include:
14.5 	(1) research, development, and demonstration of new energy-efficiency technologies 
14.6 	and techniques suitable for commercial, industrial, and institutional buildings;
14.7 	(2) analysis and evaluation of practices in building design, construction, 
14.8 	commissioning and operations, and analysis and evaluation of energy use in the 
14.9 	commercial, industrial, and institutional sectors;
14.10 	(3) analysis and evaluation of the effectiveness and cost-effectiveness of Sustainable 
14.11 	Building 2030 performance standards, conservation improvement programs, and building 
14.12 	energy codes;
14.13 	(4) development and delivery of training programs for architects, engineers, 
14.14 	commissioning agents, technicians, contractors, equipment suppliers, developers, and 
14.15 	others in the building industries; and
14.16 	(5) analyze and evaluate the effect of building operations on energy use. 
14.17 	(e) The commissioner shall require utilities to develop and implement conservation 
14.18 	improvement programs that are expressly designed to achieve energy efficiency goals 
14.19 	consistent with the Sustainable Building 2030 performance standards. These programs 
14.20 	must include offerings of design assistance and modeling, financial incentives, and the 
14.21 	verification of the proper installation of energy-efficient design components in new and 
14.22 	substantially reconstructed buildings. A utility's design assistance program must consider 
14.23 	the strategic planting of trees and shrubs around buildings as an energy conservation 
14.24 	strategy for the designed project. A utility making an expenditure under its conservation 
14.25 	improvement program that results in a building meeting the Sustainable Building 2030 
14.26 	performance standards may claim the energy savings toward its energy-savings goal 
14.27 	established in subdivision 1c.
14.28 	(f) The commissioner shall report to the legislature every three years, beginning 
14.29 	January 15, 2010, on the cost-effectiveness and progress of implementing the Sustainable 
14.30 	Building 2030 performance standards and shall make recommendations on the need to 
14.31 	continue the program as described in this section.

14.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

14.33 	Sec. 15. Minnesota Statutes 2008, section 216B.2411, subdivision 1, is amended to 
14.34 	read:
15.1 		Subdivision 1. Generation projects. (a) Any municipality or rural electric 
15.2 	association providing electric service and subject to section 216B.241 may, and each 
15.3 	public utility may, use five percent of the total amount to be spent on energy conservation 
15.4 	improvements under section 216B.241, on: 
15.5 	(1) projects in Minnesota to construct an electric generating facility that utilizes 
15.6 	eligible renewable energy sources as defined in subdivision 2, such as methane or other 
15.7 	combustible gases derived from the processing of plant or animal wastes, biomass fuels 
15.8 	such as short-rotation woody or fibrous agricultural crops, or other renewable fuel, as 
15.9 	its primary fuel source; 
15.10 	(2) projects in Minnesota to install a distributed generation facility of ten megawatts 
15.11 	or less of interconnected capacity that is fueled by natural gas, renewable fuels, or another 
15.12 	similarly clean fuel; or 
15.13 	(3) projects in Minnesota to install a qualifying solar energy project as defined in 
15.14 	subdivision 2. 
15.15 	(b) A municipality, rural electric association, or public utility that offers a program 
15.16 	to customers to promote installing qualifying solar energy projects may request authority 
15.17 	from the commissioner to exceed the five percent limit in paragraph (a), but not to 
15.18 	exceed ten percent, to meet customer demand for installation of qualifying solar energy 
15.19 	projects. In considering this request, the commissioner shall consider customer interest in 
15.20 	qualifying solar energy and the impact on other customers.
15.21 	(c) For public utilities, as defined under section 216B.02, subdivision 4, projects 
15.22 	under this section must be considered energy conservation improvements as defined in 
15.23 	section 216B.241. For cooperative electric associations and municipal utilities, projects 
15.24 	under this section must be considered load-management activities described in section 
15.25 	216B.241, subdivision 1. 

15.26 	Sec. 16. Minnesota Statutes 2008, section 216B.2411, subdivision 2, is amended to 
15.27 	read:
15.28 		Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this 
15.29 	subdivision and section 216B.241, subdivision 1, have the meanings given them. 
15.30 	(b) "Eligible renewable energy sources" means fuels and technologies to generate 
15.31 	electricity through the use of any of the resources listed in section 216B.1691, subdivision 
15.32 	1, paragraph (a), except that the incineration of wastewater sludge is not an eligible 
15.33 	renewable energy source, "biomass" has the meaning provided under paragraph (c), and 
15.34 	"solar" must be from a qualified solar energy project as defined in paragraph (d). 
15.35 	(c) "Biomass" includes: 
16.1 	(1) methane or other combustible gases derived from the processing of plant or 
16.2 	animal material; 
16.3 	(2) alternative fuels derived from soybean and other agricultural plant oils or animal 
16.4 	fats; 
16.5 	(3) combustion of barley hulls, corn, soy-based products, or other agricultural 
16.6 	products; 
16.7 	(4) wood residue from the wood products industry in Minnesota or other wood 
16.8 	products such as short-rotation woody or fibrous agricultural crops; 
16.9 	(5) landfill gas;
16.10 	(6) the predominantly organic components of wastewater effluent, sludge, or related 
16.11 	byproducts from publicly owned treatment works; and 
16.12 	(7) mixed municipal solid waste, and refuse-derived fuel from mixed municipal 
16.13 	solid waste. 
16.14 	(d) "Qualifying solar energy project" means a qualifying solar thermal project or 
16.15 	qualifying solar electric project. 
16.16 	(e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets 
16.17 	the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant 
16.18 	energy and transfers it to a storage medium for distribution as energy to heat or cool air or 
16.19 	water, but does not include equipment used to heat water at a residential property (1) for 
16.20 	domestic use if less than one-half of the energy used for that purpose is derived from the 
16.21 	sun or (2) for use in a hot tub or swimming pool. 
16.22 	(f) "Qualifying solar electric project" means solar electric equipment that meets 
16.23 	the requirements of section 216C.25 and includes, if applicable, related on-site energy 
16.24 	storage equipment, with a total peak generating capacity of 100 kilowatts or less used 
16.25 	for generating electricity primarily for use in a residential property or small business, 
16.26 	commercial, or publicly owned building to reduce the effective electric load for that 
16.27 	residence or small business building. 
16.28 	(g) "Residential property building" means the principal residence of a homeowner at 
16.29 	the time the solar equipment is placed in service. 
16.30 	(h) "Small business" has the meaning given to it in section 645.445. 

16.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.32 	Sec. 17. Minnesota Statutes 2008, section 216B.2424, subdivision 5a, is amended to 
16.33 	read:
16.34 		Subd. 5a.Reduction of biomass mandate. (a) Notwithstanding subdivision 5, the 
16.35 	biomass electric energy mandate must be reduced from 125 megawatts to 110 megawatts.
17.1 	(b) The Public Utilities Commission shall approve a request pending before the 
17.2 	commission as of May 15, 2003, for amendments to and assignment of a power purchase 
17.3 	agreement with the owner of a facility that uses short-rotation, woody crops as its primary 
17.4 	fuel previously approved to satisfy a portion of the biomass mandate if the owner of 
17.5 	the project agrees to reduce the size of its project from 50 megawatts to 35 megawatts, 
17.6 	while maintaining an average price for energy in nominal dollars measured over the term 
17.7 	of the power purchase agreement at or below $104 per megawatt-hour, exclusive of any 
17.8 	price adjustments that may take effect subsequent to commission approval of the power 
17.9 	purchase agreement, as amended. The commission shall also approve, as necessary, any 
17.10 	subsequent assignment or sale of the power purchase agreement or ownership of the 
17.11 	project to an entity owned or controlled, directly or indirectly, by two municipal utilities 
17.12 	located north of Constitutional Route No. 8, as described in section 161.114, which 
17.13 	currently own electric and steam generation facilities using coal as a fuel and which 
17.14 	propose to retrofit their existing municipal electrical generating facilities to utilize biomass 
17.15 	fuels in order to perform the power purchase agreement.
17.16 	(c) If the power purchase agreement described in paragraph (b) is assigned to an 
17.17 	entity that is, or becomes, owned or controlled, directly or indirectly, by two municipal 
17.18 	entities as described in paragraph (b), and the power purchase agreement meets the 
17.19 	price requirements of paragraph (b), the commission shall approve any amendments to 
17.20 	the power purchase agreement necessary to reflect the changes in project location and 
17.21 	ownership and any other amendments made necessary by those changes. The commission 
17.22 	shall also specifically find that:
17.23 	(1) the power purchase agreement complies with and fully satisfies the provisions of 
17.24 	this section to the full extent of its 35-megawatt capacity;
17.25 	(2) all costs incurred by the public utility and all amounts to be paid by the public 
17.26 	utility to the project owner under the terms of the power purchase agreement are fully 
17.27 	recoverable pursuant to section 216B.1645;
17.28 	(3) subject to prudency review by the commission, the public utility may recover 
17.29 	from its Minnesota retail customers the Minnesota jurisdictional portion of the amounts 
17.30 	that may be incurred and paid by the public utility during the full term of the power 
17.31 	purchase agreement; and
17.32 	(4) if the purchase power agreement meets the requirements of this subdivision, 
17.33 	it is reasonable and in the public interest.
17.34 	(d) The commission shall specifically approve recovery by the public utility of 
17.35 	any and all Minnesota jurisdictional costs incurred by the public utility to improve, 
17.36 	construct, install, or upgrade transmission, distribution, or other electrical facilities owned 
18.1 	by the public utility or other persons in order to permit interconnection of the retrofitted 
18.2 	biomass-fueled generating facilities or to obtain transmission service for the energy 
18.3 	provided by the facilities to the public utility pursuant to section 216B.1645, and shall 
18.4 	disapprove any provision in the power purchase agreement that requires the developer 
18.5 	or owner of the project to pay the jurisdictional costs or that permit the public utility to 
18.6 	terminate the power purchase agreement as a result of the existence of those costs or the 
18.7 	public utility's obligation to pay any or all of those costs.
18.8 	(e) Upon request by the project owner, the public utility shall agree to amend the 
18.9 	power purchase agreement described in paragraph (b) and approved by the commission as 
18.10 	required by paragraph (c). The amendment shall be negotiated and executed within 45 
18.11 	days of the effective date of this section and shall apply to prices paid after January 1, 
18.12 	2009. In no event shall the average price for energy in nominal dollars measured over 
18.13 	the term of the power purchase agreement exceed $104 per megawatt hour by more 
18.14 	than five percent. The public utility shall request approval of the amendment by the 
18.15 	commission within 30 days of execution of the amended power purchase agreement. 
18.16 	The amendment is not effective until approval by the commission. The commission 
18.17 	must act on the amendment within 90 days of submission of the request by the public 
18.18 	utility. Upon approval of the amended power purchase agreement, the commission shall 
18.19 	allow the public utility to recover the costs of the amended power purchase agreement, as 
18.20 	provided in section 216B.1645.

18.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.22 	Sec. 18. Minnesota Statutes 2008, section 216B.243, subdivision 8, is amended to read:
18.23 		Subd. 8.Exemptions. This section does not apply to:
18.24 	(1) cogeneration or small power production facilities as defined in the Federal Power 
18.25 	Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 
18.26 	paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 
18.27 	than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 
18.28 	any case where the commission has determined after being advised by the attorney general 
18.29 	that its application has been preempted by federal law;
18.30 	(2) a high-voltage transmission line proposed primarily to distribute electricity to 
18.31 	serve the demand of a single customer at a single location, unless the applicant opts to 
18.32 	request that the commission determine need under this section or section 216B.2425;
18.33 	(3) the upgrade to a higher voltage of an existing transmission line that serves 
18.34 	the demand of a single customer that primarily uses existing rights-of-way, unless the 
19.1 	applicant opts to request that the commission determine need under this section or section 
19.2 	216B.2425;
19.3 	(4) a high-voltage transmission line of one mile or less required to connect a new or 
19.4 	upgraded substation to an existing, new, or upgraded high-voltage transmission line;
19.5 	(5) conversion of the fuel source of an existing electric generating plant to using 
19.6 	natural gas; or
19.7 	(6) the modification of an existing electric generating plant to increase efficiency, 
19.8 	as long as the capacity of the plant is not increased more than ten percent or more than 
19.9 	100 megawatts, whichever is greater; or
19.10 	(7) a large energy facility that (i) generates electricity from wind energy conversion 
19.11 	systems, (ii) will serve retail customers in Minnesota, (iii) is specifically intended to be 
19.12 	used to meet the renewable energy objective under section 216B.1691 or addresses a 
19.13 	resource need identified in a current commission-approved or commission-reviewed 
19.14 	resource plan under section 216B.2422, and (iv) derives at least ten percent of the total 
19.15 	nameplate capacity of the proposed project from one or more C-BED projects, as defined 
19.16 	under section 216B.1612, subdivision 2, paragraph (f).

19.17 	Sec. 19. Minnesota Statutes 2008, section 216B.243, subdivision 9, is amended to read:
19.18 		Subd. 9. Renewable energy standard facilities. The requirements of This section 
19.19 	dodoes not apply to a wind energy conversion system or a solar electric generation 
19.20 	facility that is intended to be used to meet or exceed the obligations of section 216B.1691; 
19.21 	provided that, after notice and comment, the commission determines that the facility is 
19.22 	a reasonable and prudent approach to meeting a utility's obligations under that section. 
19.23 	When making this determination, the commission maymust consider:
19.24 	(1) the size of the facility relative to a utility's total need for renewable resources and;
19.25 	(2) alternative approaches for supplying the renewable energy to be supplied by 
19.26 	the proposed facility, and must consider;
19.27 	(3) the facility's ability to promote economic development, as required under section 
19.28 	216B.1691, subdivision 9,;
19.29 	(4) the facility's ability to maintain electric system reliability and consider;
19.30 	(5) impacts on ratepayers,;  and 
19.31 	(6) other criteria as the commission may determine are relevant. 

19.32 	Sec. 20. [216C.054] ANNUAL TRANSMISSION ADEQUACY REPORT TO 
19.33 	LEGISLATURE.
20.1 	The commissioner of commerce, in consultation with the Public Utilities 
20.2 	Commission, shall annually by January 15 submit a written report to the chairs and the 
20.3 	ranking minority members of the legislative committees with primary jurisdiction over 
20.4 	energy policy that contains a narrative describing what electric transmission infrastructure 
20.5 	is needed within the state over the next 15 years and what specific progress is being 
20.6 	made to meet that need. To the extent possible, the report must contain a description 
20.7 	of specific transmission needs and the current status of proposals to address that need. 
20.8 	The report must identify any barriers to meeting transmission infrastructure needs and 
20.9 	make recommendations, including any legislation, that are necessary to overcome those 
20.10 	barriers. The report must be based on the best available information and must describe 
20.11 	what assumptions are made as the basis for the report. If the commissioner determines 
20.12 	that there are difficulties in accurately assessing future transmission infrastructure needs, 
20.13 	the commissioner shall explain those difficulties as part of the report. The commissioner is 
20.14 	not required to conduct original research to support the report. The commissioner may 
20.15 	utilize information the commissioner, the commission, and the Office of Energy Security 
20.16 	possess and utilize in carrying out their existing statutory duties related to the state's 
20.17 	transmission infrastructure. The report must be in easily understood, nontechnical terms. 

20.18 	Sec. 21. Minnesota Statutes 2008, section 216C.11, is amended to read:
20.19 	216C.11 ENERGY CONSERVATION INFORMATION CENTER.
20.20 	The commissioner shall establish an Energy Information Center in the department's 
20.21 	offices in St. Paul. The information center shall maintain a toll-free telephone information 
20.22 	service and disseminate printed materials on energy conservation topics, including but 
20.23 	not limited to, availability of loans and other public and private financing methods 
20.24 	for energy conservation physical improvements, the techniques and materials used to 
20.25 	conserve energy in buildings, including retrofitting or upgrading insulation and installing 
20.26 	weatherstripping, the projected prices and availability of different sources of energy, 
20.27 	and alternative sources of energy.
20.28 	The Energy Information Center shall serve as the official Minnesota Alcohol Fuels 
20.29 	Information Center and shall disseminate information, printed, by the toll-free telephone 
20.30 	information service, or otherwise on the applicability and technology of alcohol fuels.
20.31 	The information center shall include information on the potential hazards of energy 
20.32 	conservation techniques and improvements in the printed materials disseminated. The 
20.33 	commissioner shall not be liable for damages arising from the installation or operation of 
20.34 	equipment or materials recommended by the information center.
21.1 	The information center shall use the information collected under section 216C.02, 
21.2 	subdivision 1, to maintain a central source of information on conservation and other 
21.3 	energy-related programs, including both programs required by law or rule and programs 
21.4 	developed and carried on voluntarily. In particular, the information center shall compile 
21.5 	and maintain information on policies covering disconnections or denials of fuel 
21.6 	during cold weather adopted by public utilities and other fuel suppliers not governed 
21.7 	by Minnesota Rules, parts 7820.1500 to 7820.2300 section 216B.096 or 216B.097, 
21.8 	including the number of households disconnected or denied fuel and the duration of the 
21.9 	disconnections or denials.  

21.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.11 	Sec. 22. LEGISLATIVE ENERGY COMMISSION; STUDY.
 21.12 	The Legislative Energy Commission must study the conservation improvement 
21.13 	program under Minnesota Statutes, section 216B.241. The study can include any aspect of 
21.14 	the program but must include the following issues:
21.15 	(1) proper credit to utilities and associations for conservation caused by utility or 
21.16 	association activity with a focus on educational activity designed to induce behavior 
21.17 	that causes conservation;
21.18 	(2) the use of third parties to develop or implement conservation improvement plans 
21.19 	either completely or as a supplement to utility and association activities; and
21.20 	(3) a mechanism so that utilities and associations can invest in plans statewide if 
21.21 	that produces the best conservation results.

21.22 	Sec. 23. APPLIANCE ENERGY STANDARDS; LEGISLATIVE ENERGY 
21.23 	COMMISSION.
 21.24 	The Legislative Energy Commission shall analyze the adoption of state energy 
21.25 	use standards for appliances it determines consume a significant amount of energy 
21.26 	statewide and for which the state is not preempted by federal law from adopting standards. 
21.27 	Televisions must be one of the appliances for which a standard must be analyzed. The 
21.28 	analysis must include:
21.29 	(1) consideration of the effect of the standard on the appliance market in the state;
21.30 	(2) the effect of the standard on consumer costs of purchasing and operating an 
21.31 	appliance;
21.32 	(3) technical ability to comply with a standard currently and in the future; and
21.33 	(4) energy savings achievable by a standard.

22.1 	Sec. 24. LEGISLATIVE ENERGY COMMISSION; LOW-CARBON FUEL 
22.2 	STANDARD STUDY AND RECOMMENDATIONS.
 22.3 	The Legislative Energy Commission shall study and make recommendations on 
22.4 	whether and how to implement a low-carbon fuel standard for transportation fuels used in 
22.5 	motor vehicles. The standard would be designed to reduce the carbon content of those 
22.6 	transportation fuels over time in an amount the commission determines appropriate 
22.7 	considering the full range of societal impacts caused by the reduction, including 
22.8 	environmental and economic impacts. The commission shall submit a report on the results 
22.9 	of the study along with legislative recommendations by January 15, 2010, to the chairs 
22.10 	and ranking minority members of the legislative committees with primary jurisdiction 
22.11 	over energy issues.

22.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

22.13 	Sec. 25. NATURAL GAS UTILITIES; INTERIM ENERGY SAVINGS PLAN.
 22.14 	The commissioner of commerce may approve an energy conservation improvement 
22.15 	plan under Minnesota Statutes, section 216B.241, subdivision 1c, paragraph (d), that:
22.16 	(1) is submitted to the commissioner in calendar year 2009 by a utility that provides 
22.17 	natural gas service at retail;
22.18 	(2) governs the conservation improvements to be undertaken by the utility over the 
22.19 	next three-year time period; and
22.20 	(3) is accompanied by a conservation potential study that specifies how the utility 
22.21 	may meet and exceed the minimum energy savings goal of one percent of gross annual 
22.22 	retail energy sales within five years of submission of the plan.
22.23 	Nothing in this section precludes the commissioner from requiring additional 
22.24 	energy conservation improvement activities and programs beyond those proposed by the 
22.25 	utility in its proposed plan as long as those additional activities and programs meet the 
22.26 	requirements of Minnesota Statutes, section 216B.241. The commissioner shall require 
22.27 	all reasonable actions by the utility that will increase the likelihood of the utility meeting 
22.28 	and exceeding the minimum one percent energy savings goal and the 1.5 percent goal 
22.29 	as soon as reasonably feasible.

22.30 	Sec. 26. RESIDENTIAL ENERGY USE DISCLOSURE; STUDY AND REPORT.
 22.31 	(a) The Legislative Energy Commission shall study the issue of disclosing the 
22.32 	energy use of a residence to a purchaser or renter. For purposes of this section, "residence" 
22.33 	includes single- and multiple-family dwellings, apartments, and manufactured homes. 
22.34 	The study must include consideration of:
23.1 	(1) the energy consumption information an energy supplier, including a utility, 
23.2 	should furnish to a residential property owner;
23.3 	(2) whether different types of energy use information disclosure should be required 
23.4 	for existing and newly constructed residences;
23.5 	(3) the energy use information that would be useful to a purchaser or renter of a 
23.6 	residence; and
23.7 	(4) when and to which prospective or actual purchasers or renters disclosure should 
23.8 	be made.
23.9 	(b) The commission shall convene a stakeholder group to assist in the study that 
23.10 	must include, among others, residential builders, apartment owners, tenant advocates, 
23.11 	manufactured home park owners, a nonprofit organization representing manufactured 
23.12 	home park residents, utilities, real estate professionals, energy advocates, and consumers. 
23.13 	The commission shall report the results of the study along with any recommended 
23.14 	legislation to the chairs and ranking minority members of the committees of the legislature 
23.15 	with primary jurisdiction over energy policy by January 15, 2010.

23.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

23.17 	Sec. 27. UTILITY RATES STUDY.
 23.18 	The Public Utilities Commission, in consultation with the Office of Energy 
23.19 	Security, shall conduct a study of automatic cost-recovery mechanisms and alternative 
23.20 	forms of utility rate regulation. This study shall include an assessment of the impact of 
23.21 	automatic cost-recovery mechanisms on prices charged to utility consumers compared 
23.22 	to traditional cost-recovery mechanisms, an assessment of the impact of automatic 
23.23 	recovery mechanisms on the level of customer understanding of utility rates compared to 
23.24 	traditional cost-recovery mechanisms, and an assessment of alternative forms of utility 
23.25 	rate regulation that may be used in place of automatic cost-recovery mechanisms. The 
23.26 	study shall also address methods to improve administration and customer understanding 
23.27 	of automatic cost-recovery mechanisms. The commission shall submit this report to the 
23.28 	legislature on or before June 30, 2010. The commission may assess public utilities for 
23.29 	the cost of the study. The assessment is not subject to a cap on assessments provided by 
23.30 	section 216B.62 or any other law.

23.31 	Sec. 28. REVISOR'S INSTRUCTION.
 23.32 	(a) The revisor of statutes shall replace the phrase "parts 7820.1500 to 7820.2300" in 
23.33 	Minnesota Rules, part 7826.0200, with the phrase "Minnesota Statutes, sections 216B.096 
23.34 	and 216B.097."
24.1 	(b) The revisor of statutes shall replace the phrase "chapter 7820" in Minnesota 
24.2 	Rules, part 7826.1500, item B, with the phrase "Minnesota Statutes, sections 216B.096 
24.3 	and 216B.097."

24.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.5 	Sec. 29.  REPEALER.
 24.6 	Laws 2007, chapter 3, section 3, is repealed.