<a id="pl.1.3"></a><var>1.3</var>modifying considerations for implementing energy standard; modifying provision <br/>
<a id="pl.1.4"></a><var>1.4</var>related to software developed by the state; making technical changes related to <br/>
<a id="pl.1.5"></a><var>1.5</var>utility report filings, hydrogen energy projects, weatherization programs, public <br/>
<a id="pl.1.6"></a><var>1.6</var>utility commission assessments, and utility metering for supportive housing; <br/>
<a id="pl.1.7"></a><var>1.7</var>removing obsolete and redundant language;amending Minnesota Statutes <br/>
<a id="pl.1.8"></a><var>1.8</var>2008, sections 16E.15, subdivision 2; 216B.1691, subdivision 2b; 216B.241, <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivision 2; 216B.243, subdivision 3b; 216B.812, subdivision 2; 216C.264; <br/>
<a id="pl.1.10"></a><var>1.10</var>216E.18, subdivision 3; 326B.106, subdivision 12; proposing coding for new law <br/>
<a id="pl.1.11"></a><var>1.11</var>in Minnesota Statutes, chapter 216B; repealing Minnesota Statutes 2008, sections <br/>
<a id="pl.1.12"></a><var>1.12</var>216C.19, subdivisions 2, 3, 13, 14, 15, 16, 18, 19, 20; 216C.262; Minnesota <br/>
<a id="pl.1.13"></a><var>1.13</var>Statutes 2009 Supplement, section 216C.19, subdivision 17.<br/>
<a id="pl.1.14"></a><var>1.14</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.15"></a><var>1.15</var>    Section 1. Minnesota Statutes 2008, section 16E.15, subdivision 2, is amended to read:<br/>
<a id="pl.1.16"></a><var>1.16</var>    Subd. 2. <b>Software sale fund.</b> (a) Except as provided in paragraphs paragraph (b) <br/>
<a id="pl.1.17"></a><var>1.17</var>and (c), proceeds of the sale or licensing of software products or services by the chief <br/>
<a id="pl.1.18"></a><var>1.18</var>information officer must be credited to the  enterprise technology revolving fund. If a state <br/>
<a id="pl.1.19"></a><var>1.19</var>agency other than the  Office of Enterprise Technology has contributed to the development <br/>
<a id="pl.1.20"></a><var>1.20</var>of software sold or licensed under this section, the chief information officer may reimburse <br/>
<a id="pl.1.21"></a><var>1.21</var>the agency by discounting computer services provided to that agency.<br/>
<a id="pl.1.22"></a><var>1.22</var>(b) Proceeds of the sale or licensing of software products or services developed by <br/>
<a id="pl.1.23"></a><var>1.23</var>the Pollution Control Agency, or custom developed by a vendor for the agency, must be <br/>
<a id="pl.1.24"></a><var>1.24</var>credited to the environmental fund.<br/>
<a id="pl.1.25"></a><var>1.25</var>(c) Proceeds of the sale or licensing of software products or services developed by <br/>
<a id="pl.1.26"></a><var>1.26</var>the Department of Education, or custom developed by a vendor for the agency, to support <br/>
<a id="pl.1.27"></a><var>1.27</var>the achieved savings assessment program, must be appropriated to the commissioner of <br/>
<a id="pl.1.28"></a><var>1.28</var>education and credited to the weatherization program to support weatherization activities.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.1"></a><var>2.1</var>    Sec. 2. Minnesota Statutes 2008, section 216B.1691, subdivision 2b, is amended to <br/>
<a id="pl.2.2"></a><var>2.2</var>read:<br/>
<a id="pl.2.3"></a><var>2.3</var>    Subd. 2b. <b>Modification or delay of standard.</b> (a) The commission shall modify or <br/>
<a id="pl.2.4"></a><var>2.4</var>delay the implementation of a standard obligation, in whole or in part, if the commission <br/>
<a id="pl.2.5"></a><var>2.5</var>determines it is in the public interest to do so. The commission, when requested to modify <br/>
<a id="pl.2.6"></a><var>2.6</var>or delay implementation of a standard, must consider:<br/>
<a id="pl.2.7"></a><var>2.7</var>(1) the impact of implementing the standard on its customers' utility costs, including <br/>
<a id="pl.2.8"></a><var>2.8</var>the economic and competitive pressure on the utility's customers;<br/>
<a id="pl.2.9"></a><var>2.9</var>(2) the effects of implementing the standard on the reliability of the electric system;<br/>
<a id="pl.2.10"></a><var>2.10</var>(3) technical advances or technical concerns;<br/>
<a id="pl.2.11"></a><var>2.11</var>(4) delays in acquiring sites or routes due to rejection or delays of necessary siting or <br/>
<a id="pl.2.12"></a><var>2.12</var>other permitting approvals;<br/>
<a id="pl.2.13"></a><var>2.13</var>(5) the availability of suitable sites for the location of eligible energy technology <br/>
<a id="pl.2.14"></a><var>2.14</var>facilities, considering  local land use restrictions;<br/>
<a id="pl.2.15"></a><var>2.15</var>(6) delays, cancellations, or nondelivery of necessary equipment for construction or <br/>
<a id="pl.2.16"></a><var>2.16</var>commercial operation of an eligible energy technology facility;<br/>
<a id="pl.2.17"></a><var>2.17</var>(6) (7) transmission constraints preventing delivery of service; and<br/>
<a id="pl.2.18"></a><var>2.18</var>(7) (8) other statutory obligations imposed on the commission or a utility.<br/>
<a id="pl.2.19"></a><var>2.19</var>The commission may modify or delay implementation of a standard obligation under <br/>
<a id="pl.2.20"></a><var>2.20</var>clauses (1) to (3) only if it finds implementation would cause significant rate impact, <br/>
<a id="pl.2.21"></a><var>2.21</var>requires significant measures to address reliability, or raises significant technical issues. <br/>
<a id="pl.2.22"></a><var>2.22</var>The commission may modify or delay implementation of a standard obligation under <br/>
<a id="pl.2.23"></a><var>2.23</var>clauses (4) to (6) only if it finds that the circumstances described in those clauses were due <br/>
<a id="pl.2.24"></a><var>2.24</var>to circumstances beyond an electric utility's control and make compliance not feasible.<br/>
<a id="pl.2.25"></a><var>2.25</var>    (b) When considering whether to delay or modify implementation of a standard <br/>
<a id="pl.2.26"></a><var>2.26</var>obligation, the commission must give due consideration to a preference for electric <br/>
<a id="pl.2.27"></a><var>2.27</var>generation through use of eligible energy technology and to the achievement of the <br/>
<a id="pl.2.28"></a><var>2.28</var>standards set by this section.<br/>
<a id="pl.2.29"></a><var>2.29</var>(c) An electric utility requesting a modification or delay in the implementation of a <br/>
<a id="pl.2.30"></a><var>2.30</var>standard must file a plan to comply with its standard obligation in the same proceeding <br/>
<a id="pl.2.31"></a><var>2.31</var>that it is requesting the delay.<br/>
<a id="pl.2.32"></a><var>2.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.33"></a><var>2.33</var>    Sec. 3. <b>[216B.1695] NUCLEAR POWER PLANT; COST RECOVERY.</b><br/>
<a id="pl.3.1"></a><var>3.1</var>(a) The commission may not allow any of the following costs attributable to the <br/>
<a id="pl.3.2"></a><var>3.2</var>construction of a nuclear generating plant begun after July 1, 2010, to be recovered from <br/>
<a id="pl.3.3"></a><var>3.3</var>Minnesota ratepayers until the plant begins operating at a monthly load capacity factor of <br/>
<a id="pl.3.4"></a><var>3.4</var>at least 85 percent:<br/>
<a id="pl.3.5"></a><var>3.5</var>(1) planning, design, safety, environmental, or engineering studies undertaken prior <br/>
<a id="pl.3.6"></a><var>3.6</var>to construction; or<br/>
<a id="pl.3.7"></a><var>3.7</var>(2) the costs of obtaining regulatory approval, including permits, licenses and any <br/>
<a id="pl.3.8"></a><var>3.8</var>other approval required prior to construction from federal, state and local authorities.<br/>
<a id="pl.3.9"></a><var>3.9</var>(b) The commission may not allow any of the following costs attributable to the <br/>
<a id="pl.3.10"></a><var>3.10</var>construction of a nuclear generating plant begun after July 1, 2010, to be recovered from <br/>
<a id="pl.3.11"></a><var>3.11</var>Minnesota ratepayers:<br/>
<a id="pl.3.12"></a><var>3.12</var>(1) any construction costs exceeding the projected construction cost of the generating <br/>
<a id="pl.3.13"></a><var>3.13</var>plant and any ancillary facility constructed by the utility to temporarily or permanently <br/>
<a id="pl.3.14"></a><var>3.14</var>store nuclear waste generated by the plant, as identified in the utility's certificate of need <br/>
<a id="pl.3.15"></a><var>3.15</var>application submitted under section 216B.243;<br/>
<a id="pl.3.16"></a><var>3.16</var>(2) the costs of insuring the plant against accidents that exceed the cost of insurance <br/>
<a id="pl.3.17"></a><var>3.17</var>for a fossil fuel plant of equivalent capacity; or<br/>
<a id="pl.3.18"></a><var>3.18</var>(3) contributions from the plant to provide and maintain local fire protection and <br/>
<a id="pl.3.19"></a><var>3.19</var>emergency services to the plant in case of an accident.<br/>
<a id="pl.3.20"></a><var>3.20</var>(c) Except for regulatory costs of state agencies, no revenues from taxes or <br/>
<a id="pl.3.21"></a><var>3.21</var>fees imposed by the state of Minnesota may be used to pay for any portion of the <br/>
<a id="pl.3.22"></a><var>3.22</var>preconstruction, construction, maintenance, or operating costs of a nuclear generating <br/>
<a id="pl.3.23"></a><var>3.23</var>plant, or to assume any financial risk associated with an accidental  release of radioactivity <br/>
<a id="pl.3.24"></a><var>3.24</var>from the generating plant or an ancillary facility constructed by the utility that owns the <br/>
<a id="pl.3.25"></a><var>3.25</var>generating plant to temporarily or permanently store nuclear waste generated by the plant.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.26"></a><var>3.26</var>    Sec. 4. Minnesota Statutes 2008, section 216B.241, subdivision 2, is amended to read:<br/>
<a id="pl.3.27"></a><var>3.27</var>    Subd. 2. <b>Programs.</b> (a) The commissioner may require public utilities to make <br/>
<a id="pl.3.28"></a><var>3.28</var>investments and expenditures in energy conservation improvements, explicitly setting <br/>
<a id="pl.3.29"></a><var>3.29</var>forth the interest rates, prices, and terms under which the improvements must be offered to <br/>
<a id="pl.3.30"></a><var>3.30</var>the customers. The required programs must cover no more than a three-year period. Public <br/>
<a id="pl.3.31"></a><var>3.31</var>utilities shall file conservation improvement plans by June 1, on a schedule determined by <br/>
<a id="pl.3.32"></a><var>3.32</var>order of the commissioner, but at least every three years. Plans received by a public utility <br/>
<a id="pl.3.33"></a><var>3.33</var>by June 1 must be approved or approved as modified by the commissioner by December <br/>
<a id="pl.3.34"></a><var>3.34</var>1 of that same year. The commissioner shall evaluate the program on the basis of <br/>
<a id="pl.3.35"></a><var>3.35</var>cost-effectiveness and the reliability of technologies employed. The commissioner's order <br/>
<a id="pl.4.1"></a><var>4.1</var>must provide to the extent practicable for a free choice, by consumers participating in the <br/>
<a id="pl.4.2"></a><var>4.2</var>program, of the device, method, material, or project constituting the energy conservation <br/>
<a id="pl.4.3"></a><var>4.3</var>improvement and for a free choice of the seller, installer, or contractor of the energy <br/>
<a id="pl.4.4"></a><var>4.4</var>conservation improvement, provided that the device, method, material, or project seller, <br/>
<a id="pl.4.5"></a><var>4.5</var>installer, or contractor is duly licensed, certified, approved, or qualified, including under <br/>
<a id="pl.4.6"></a><var>4.6</var>the residential conservation services program, where applicable.<br/>
<a id="pl.4.7"></a><var>4.7</var>    (b) The commissioner may require a utility to make an energy conservation <br/>
<a id="pl.4.8"></a><var>4.8</var>improvement investment or expenditure whenever the commissioner finds that the <br/>
<a id="pl.4.9"></a><var>4.9</var>improvement will result in energy savings at a total cost to the utility less than the cost <br/>
<a id="pl.4.10"></a><var>4.10</var>to the utility to produce or purchase an equivalent amount of new supply of energy. The <br/>
<a id="pl.4.11"></a><var>4.11</var>commissioner shall nevertheless ensure that every public utility operate one or more <br/>
<a id="pl.4.12"></a><var>4.12</var>programs under periodic review by the department.<br/>
<a id="pl.4.13"></a><var>4.13</var>    (c) Each public utility subject to subdivision 1a may spend and invest annually up to <br/>
<a id="pl.4.14"></a><var>4.14</var>ten percent of the total amount required to be spent and invested on energy conservation <br/>
<a id="pl.4.15"></a><var>4.15</var>improvements under this section by the utility on research and development projects <br/>
<a id="pl.4.16"></a><var>4.16</var>that meet the definition of energy conservation improvement in subdivision 1 and that <br/>
<a id="pl.4.17"></a><var>4.17</var>are funded directly by the public utility.<br/>
<a id="pl.4.18"></a><var>4.18</var>    (d) A public utility may not spend for or invest in energy conservation improvements <br/>
<a id="pl.4.19"></a><var>4.19</var>that directly benefit a large energy facility or a large electric customer facility for which <br/>
<a id="pl.4.20"></a><var>4.20</var>the commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). <br/>
<a id="pl.4.21"></a><var>4.21</var>The commissioner shall consider and may require a utility to undertake a program <br/>
<a id="pl.4.22"></a><var>4.22</var>suggested by an outside source, including a political subdivision, a nonprofit corporation, <br/>
<a id="pl.4.23"></a><var>4.23</var>or community organization.<br/>
<a id="pl.4.24"></a><var>4.24</var>    (e) A utility, a political subdivision, or a nonprofit or community organization <br/>
<a id="pl.4.25"></a><var>4.25</var>that has suggested a program, the attorney general acting on behalf of consumers and <br/>
<a id="pl.4.26"></a><var>4.26</var>small business interests, or a utility customer that has suggested a program and is not <br/>
<a id="pl.4.27"></a><var>4.27</var>represented by the attorney general under section 
         <statute_ref>8.33</statute_ref> may petition the commission to <br/>
<a id="pl.4.28"></a><var>4.28</var>modify or revoke a department decision under this section, and the commission may do <br/>
<a id="pl.4.29"></a><var>4.29</var>so if it determines that the program is not cost-effective, does not adequately address the <br/>
<a id="pl.4.30"></a><var>4.30</var>residential conservation improvement needs of low-income persons, has a long-range <br/>
<a id="pl.4.31"></a><var>4.31</var>negative effect on one or more classes of customers, or is otherwise not in the public <br/>
<a id="pl.4.32"></a><var>4.32</var>interest. The commission shall reject a petition that, on its face, fails to make a reasonable <br/>
<a id="pl.4.33"></a><var>4.33</var>argument that a program is not in the public interest.<br/>
<a id="pl.4.34"></a><var>4.34</var>    (f) The commissioner may order a public utility to include, with the filing of the <br/>
<a id="pl.4.35"></a><var>4.35</var>utility's proposed conservation improvement plan under paragraph (a) annual status <br/>
<a id="pl.4.36"></a><var>4.36</var>report, the results of an independent audit of all or a selection of the utility's conservation <br/>
<a id="pl.5.1"></a><var>5.1</var>improvement programs and expenditures performed by the department or an auditor <br/>
<a id="pl.5.2"></a><var>5.2</var>with experience in the provision of energy conservation and energy efficiency services <br/>
<a id="pl.5.3"></a><var>5.3</var>approved by the commissioner and chosen by the utility. The audit must specify the <br/>
<a id="pl.5.4"></a><var>5.4</var>energy savings or increased efficiency in the use of energy within the service territory of <br/>
<a id="pl.5.5"></a><var>5.5</var>the utility that is the result of the spending and investments. The audit must evaluate the <br/>
<a id="pl.5.6"></a><var>5.6</var>cost-effectiveness of the utility's conservation programs.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.5.7"></a><var>5.7</var>    Sec. 5. Minnesota Statutes 2008, section 216B.243, subdivision 3b, is amended to read:<br/>
<a id="pl.5.8"></a><var>5.8</var>    Subd. 3b. <b>Nuclear power plant; new construction </b><b>prohibited</b><b>; relicensing.</b><br/>
<a id="pl.5.9"></a><var>5.9</var>(a) The commission may not issue a certificate of need for the construction of a new <br/>
<a id="pl.5.10"></a><var>5.10</var>nuclear-powered electric generating plant provided that  the certificate of need application <br/>
<a id="pl.5.11"></a><var>5.11</var>contains a separate estimate of preconstruction and construction costs that does not include <br/>
<a id="pl.5.12"></a><var>5.12</var>any of the costs identified in section 216B.1695, paragraphs (a) and (b).<br/>
<a id="pl.5.13"></a><var>5.13</var>(b) Any certificate of need for additional storage of spent nuclear fuel for a facility <br/>
<a id="pl.5.14"></a><var>5.14</var>seeking a license extension shall address the impacts of continued operations over the <br/>
<a id="pl.5.15"></a><var>5.15</var>period for which approval is sought.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.5.16"></a><var>5.16</var>    Sec. 6. Minnesota Statutes 2008, section 216B.812, subdivision 2, is amended to read:<br/>
<a id="pl.5.17"></a><var>5.17</var>    Subd. 2. <b>Pilot projects.</b> (a) In consultation with appropriate representatives from <br/>
<a id="pl.5.18"></a><var>5.18</var>state agencies, local governments, universities, businesses, and other interested parties, the <br/>
<a id="pl.5.19"></a><var>5.19</var>Department of Commerce shall report back to the legislature by November 1, 2005, and <br/>
<a id="pl.5.20"></a><var>5.20</var>every two years thereafter, with develop a slate of proposed pilot projects that contribute <br/>
<a id="pl.5.21"></a><var>5.21</var>to realizing Minnesota's hydrogen economy goal as set forth in section 
         <statute_ref>216B.8109</statute_ref>. The <br/>
<a id="pl.5.22"></a><var>5.22</var>Department of Commerce must consider the following nonexclusive list of priorities in <br/>
<a id="pl.5.23"></a><var>5.23</var>developing the proposed slate of pilot projects:<br/>
<a id="pl.5.24"></a><var>5.24</var>    (1)  deploy "bridge" technologies such as hybrid-electric, off-road, and fleet vehicles <br/>
<a id="pl.5.25"></a><var>5.25</var>running on hydrogen or fuels blended with hydrogen;<br/>
<a id="pl.5.26"></a><var>5.26</var>    (2)  lead to cost-competitive, on-site renewable hydrogen production technologies;<br/>
<a id="pl.5.27"></a><var>5.27</var>    (3) demonstrate nonvehicle applications for hydrogen;<br/>
<a id="pl.5.28"></a><var>5.28</var>    (4) improve the cost and efficiency of hydrogen from renewable energy sources; and<br/>
<a id="pl.5.29"></a><var>5.29</var>    (5) improve the cost and efficiency of hydrogen production using direct solar energy <br/>
<a id="pl.5.30"></a><var>5.30</var>without electricity generation as an intermediate step.<br/>
<a id="pl.5.31"></a><var>5.31</var>    (b) For deployment projects that do not involve a demonstration component, <br/>
<a id="pl.5.32"></a><var>5.32</var>individual system components of the technology  should, if feasible, meet commercial <br/>
<a id="pl.5.33"></a><var>5.33</var>performance standards and systems modeling must be completed to predict commercial <br/>
<a id="pl.6.1"></a><var>6.1</var>performance, risk, and synergies. In addition, the proposed pilots should meet as many of <br/>
<a id="pl.6.2"></a><var>6.2</var>the following criteria as possible:<br/>
<a id="pl.6.3"></a><var>6.3</var>    (1) advance energy security;<br/>
<a id="pl.6.4"></a><var>6.4</var>    (2) capitalize on the state's native resources;<br/>
<a id="pl.6.5"></a><var>6.5</var>    (3) result in economically competitive infrastructure being put in place;<br/>
<a id="pl.6.6"></a><var>6.6</var>    (4) be located where it will link well with existing and related projects and be <br/>
<a id="pl.6.7"></a><var>6.7</var>accessible to the public, now or in the future;<br/>
<a id="pl.6.8"></a><var>6.8</var>    (5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure;<br/>
<a id="pl.6.9"></a><var>6.9</var>    (6) include an explicit public education and awareness component;<br/>
<a id="pl.6.10"></a><var>6.10</var>    (7) be scalable to respond to changing circumstances and market demands;<br/>
<a id="pl.6.11"></a><var>6.11</var>    (8) draw on firms and expertise within the state where possible;<br/>
<a id="pl.6.12"></a><var>6.12</var>    (9) include an assessment of its economic, environmental, and social impact; and<br/>
<a id="pl.6.13"></a><var>6.13</var>    (10) serve other needs beyond hydrogen development.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.6.14"></a><var>6.14</var>    Sec. 7. Minnesota Statutes 2008, section 216C.264, is amended to read:<br/>
<a id="pl.6.15"></a><var>6.15</var><b>216C.264 COORDINATING RESIDENTIAL WEATHERIZATION </b><br/>
<a id="pl.6.16"></a><var>6.16</var><b>PROGRAMS.</b><br/>
<a id="pl.6.17"></a><var>6.17</var>    Subdivision 1. <b>Agency designation.</b> The department is the state agency to apply <br/>
<a id="pl.6.18"></a><var>6.18</var>for, receive, and disburse money made available to the state by federal law for the purpose <br/>
<a id="pl.6.19"></a><var>6.19</var>of weatherizing the residences of low-income persons. The commissioner must coordinate <br/>
<a id="pl.6.20"></a><var>6.20</var>available federal money with state money appropriated for this purpose.<br/>
<a id="pl.6.21"></a><var>6.21</var>    Subd. 2. <b>Grants.</b> The commissioner must make grants of federal and state money <br/>
<a id="pl.6.22"></a><var>6.22</var>to community action agencies and other public or private nonprofit agencies for the <br/>
<a id="pl.6.23"></a><var>6.23</var>purpose of weatherizing the residences of low-income persons. Grant applications must <br/>
<a id="pl.6.24"></a><var>6.24</var>be submitted in accordance with rules promulgated by the commissioner.<br/>
<a id="pl.6.25"></a><var>6.25</var>    Subd. 3. <b>Benefits of weatherization.</b> In the case of any grant made to an owner of a <br/>
<a id="pl.6.26"></a><var>6.26</var>rental dwelling unit for weatherization, the commissioner must require that (1) the benefits <br/>
<a id="pl.6.27"></a><var>6.27</var>of weatherization assistance in connection with the dwelling unit accrue primarily to the <br/>
<a id="pl.6.28"></a><var>6.28</var>low-income family that resides in the unit; (2) the rents on the dwelling unit will not be <br/>
<a id="pl.6.29"></a><var>6.29</var>raised because of any increase in value due solely to the weatherization assistance; and (3) <br/>
<a id="pl.6.30"></a><var>6.30</var>no undue or excessive enhancement will occur to the value of the dwelling unit.<br/>
<a id="pl.6.31"></a><var>6.31</var>    Subd. 4. <b>Rules.</b> The commissioner must promulgate rules that describe procedures <br/>
<a id="pl.6.32"></a><var>6.32</var>for the administration of grants, data to be reported by grant recipients, and compliance <br/>
<a id="pl.6.33"></a><var>6.33</var>with relevant federal regulations. The commissioner must require that a rental unit <br/>
<a id="pl.6.34"></a><var>6.34</var>weatherized under this section be rented to a household meeting the income limits of <br/>
<a id="pl.6.35"></a><var>6.35</var>the program for 24 of the 36 months after weatherization is complete. In applying this <br/>
<a id="pl.7.1"></a><var>7.1</var>restriction to multiunit buildings weatherized under this section, the commissioner must <br/>
<a id="pl.7.2"></a><var>7.2</var>require that occupancy continue to reflect the proportion of eligible households in the <br/>
<a id="pl.7.3"></a><var>7.3</var>building at the time of weatherization.<br/>
<a id="pl.7.4"></a><var>7.4</var>    Subd. 5. <b>Grant allocation.</b> The commissioner must distribute supplementary <br/>
<a id="pl.7.5"></a><var>7.5</var>state grants in a manner consistent with the goal of producing the maximum number of <br/>
<a id="pl.7.6"></a><var>7.6</var>weatherized units. Supplementary state grants are provided primarily for the payment of <br/>
<a id="pl.7.7"></a><var>7.7</var>additional labor costs for the federal weatherization program, and as an incentive for the <br/>
<a id="pl.7.8"></a><var>7.8</var>increased production of weatherized units.<br/>
<a id="pl.7.9"></a><var>7.9</var>Criteria for the allocation of state grants to local agencies include existing local <br/>
<a id="pl.7.10"></a><var>7.10</var>agency production levels, emergency needs, and the potential for maintaining or increasing <br/>
<a id="pl.7.11"></a><var>7.11</var>acceptable levels of production in the area.<br/>
<a id="pl.7.12"></a><var>7.12</var>An eligible local agency may receive advance funding for 90 days' production, but <br/>
<a id="pl.7.13"></a><var>7.13</var>thereafter must receive grants solely on the basis of program criteria.<br/>
<a id="pl.7.14"></a><var>7.14</var>    Subd. 6. <b>Eligibility criteria.</b> To the extent allowed by federal regulations, the <br/>
<a id="pl.7.15"></a><var>7.15</var>commissioner must ensure that the same income eligibility criteria apply to both the <br/>
<a id="pl.7.16"></a><var>7.16</var>weatherization program and the energy assistance program.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.7.17"></a><var>7.17</var>    Sec. 8. Minnesota Statutes 2008, section 216E.18, subdivision 3, is amended to read:<br/>
<a id="pl.7.18"></a><var>7.18</var>    Subd. 3. <b>Funding; assessment.</b> The commission shall finance its baseline studies, <br/>
<a id="pl.7.19"></a><var>7.19</var>general environmental studies, development of criteria, inventory preparation, monitoring <br/>
<a id="pl.7.20"></a><var>7.20</var>of conditions placed on site and route permits, and all other work, other than specific site <br/>
<a id="pl.7.21"></a><var>7.21</var>and route designation, from an assessment made quarterly, at least 30 days before the start <br/>
<a id="pl.7.22"></a><var>7.22</var>of each quarter, by the commission against all utilities with annual retail kilowatt-hour <br/>
<a id="pl.7.23"></a><var>7.23</var>sales greater than 4,000,000 kilowatt-hours in the previous calendar year.<br/>
<a id="pl.7.24"></a><var>7.24</var>Each share shall be determined as follows: (1) the ratio that the annual retail <br/>
<a id="pl.7.25"></a><var>7.25</var>kilowatt-hour sales in the state of each utility bears to the annual total retail kilowatt-hour <br/>
<a id="pl.7.26"></a><var>7.26</var>sales in the state of all these utilities, multiplied by 0.667, plus (2) the ratio that the annual <br/>
<a id="pl.7.27"></a><var>7.27</var>gross revenue from retail kilowatt-hour sales in the state of each utility bears to the annual <br/>
<a id="pl.7.28"></a><var>7.28</var>total gross revenues from retail kilowatt-hour sales in the state of all these utilities, <br/>
<a id="pl.7.29"></a><var>7.29</var>multiplied by 0.333, as determined by the commission. The assessment shall be credited <br/>
<a id="pl.7.30"></a><var>7.30</var>to the special revenue fund and shall be paid to the state treasury within 30 days after <br/>
<a id="pl.7.31"></a><var>7.31</var>receipt of the bill, which shall constitute notice of said assessment and demand of payment <br/>
<a id="pl.7.32"></a><var>7.32</var>thereof. The total amount which may be assessed to the several utilities under authority <br/>
<a id="pl.7.33"></a><var>7.33</var>of this subdivision shall not exceed the sum of the annual budget of the commission <br/>
<a id="pl.7.34"></a><var>7.34</var>for carrying out the purposes of this subdivision. The assessment for the second third <br/>
<a id="pl.7.35"></a><var>7.35</var>quarter of each fiscal year shall be adjusted to compensate for the amount by which actual <br/>
<a id="pl.8.1"></a><var>8.1</var>expenditures by the commission for the preceding fiscal year were more or less than the <br/>
<a id="pl.8.2"></a><var>8.2</var>estimated expenditures previously assessed.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.8.3"></a><var>8.3</var>    Sec. 9. Minnesota Statutes 2008, section 326B.106, subdivision 12, is amended to read:<br/>
<a id="pl.8.4"></a><var>8.4</var>    Subd. 12. <b>Separate metering for electric service.</b> The standards concerning heat <br/>
<a id="pl.8.5"></a><var>8.5</var>loss, illumination, and climate control adopted pursuant to subdivision 1, shall require <br/>
<a id="pl.8.6"></a><var>8.6</var>that electrical service to individual dwelling units in buildings containing two or more <br/>
<a id="pl.8.7"></a><var>8.7</var>units be separately metered, with individual metering readily accessible to the individual <br/>
<a id="pl.8.8"></a><var>8.8</var>occupants. The standards authorized by this subdivision shall only apply to buildings <br/>
<a id="pl.8.9"></a><var>8.9</var>constructed after the effective date of the amended standards. Buildings intended for <br/>
<a id="pl.8.10"></a><var>8.10</var>occupancy primarily by persons who are 62 years of age or older or disabled,  supportive <br/>
<a id="pl.8.11"></a><var>8.11</var>housing, or which buildings that contain a majority of units not equipped with complete <br/>
<a id="pl.8.12"></a><var>8.12</var>kitchen facilities, shall be exempt from the provisions of this subdivision. For purposes <br/>
<a id="pl.8.13"></a><var>8.13</var>of this section, "supportive housing" means housing made available to individuals and <br/>
<a id="pl.8.14"></a><var>8.14</var>families with multiple barriers to obtaining and maintaining housing, including those who <br/>
<a id="pl.8.15"></a><var>8.15</var>are formerly homeless or at risk of homelessness and those who have a mental illness, <br/>
<a id="pl.8.16"></a><var>8.16</var>substance abuse disorder, debilitating disease, or a combination of these conditions.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.8.17"></a><var>8.17</var>    Sec. 10. <b> REPEALER.</b><br/>
<a id="pl.8.18"></a><var>8.18</var>Minnesota Statutes 2008, sections 216C.19, subdivisions 2, 3, 13, 14, 15, 16, 18, <br/>
<a id="pl.8.19"></a><var>8.19</var>19, and 20; and 216C.262, are repealed.<br/>
<a id="pl.8.20"></a><var>8.20</var>Minnesota Statutes 2009 Supplement, section 216C.19, subdivision 17, is repealed.<br/>