1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 28341.2A bill for an act1.3relating to energy; modifying, adding, or authorizing provisions governing 1.4medically necessary equipment, propane sales, low-income rate discounts, 1.5interconnection of distributed renewable generation, electric vehicle charging 1.6tariffs, on-bill payment programs, energy efficiency programs, emissions 1.7reduction planning, certificates of need, solar energy systems, and transmission 1.8lines; requiring a report;amending Minnesota Statutes 2012, sections 216B.098, 1.9subdivision 5; 216B.16, subdivision 14; 216B.1611, by adding a subdivision; 1.10216B.241, by adding a subdivision; 216B.2422, by adding a subdivision; 1.11216B.243, subdivision 8; 216C.41, subdivision 4; 216C.436, subdivision 4, by 1.12adding a subdivision; 216E.01, by adding a subdivision; 216E.04, subdivision 1.132; 239.051, subdivision 29; 239.785, by adding a subdivision; 325E.027; 1.14515.07; 515B.2-103; 515B.3-102; Laws 2013, chapter 57, section 2; Laws 1.152014, chapter 145, section 1; proposing coding for new law in Minnesota 1.16Statutes, chapters 216B; 216E; 500; repealing Minnesota Rules, parts 3300.0800; 1.173300.0900; 3300.1000, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 1.1817, 18, 19, 20, 21, 22, 23, 24, 25, 25a, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 1.1936; 3300.1100; 3300.1200; 3300.1300; 3300.1400; 3300.1500; 3300.1600; 1.203300.1700; 3300.1800; 3300.1900; 7607.0100; 7607.0110; 7607.0120; 1.217607.0130; 7607.0140; 7607.0150; 7607.0160; 7607.0170; 7607.0180; 1.227610.0300; 7685.0100; 7685.0120; 7685.0130; 7685.0140.1.23May 7, 20141.24The Honorable Paul Thissen1.25Speaker of the House of Representatives1.26The Honorable Sandra L. Pappas1.27President of the Senate1.28We, the undersigned conferees for H. F. No. 2834 report that we have agreed upon 1.29the items in dispute and recommend as follows:1.30That the Senate recede from its amendments and that H. F. No. 2834 be further 1.31amended as follows:1.32Delete everything after the enacting clause and insert:1.33    "Section 1. Minnesota Statutes 2012, section 16C.144, subdivision 3, is amended to 1.34read:1.35    Subd. 3. Lease purchase agreement. The commissioner may enter into a lease 1.36purchase agreement with any party for the implementation of utility cost-savings measures 2.1in accordance with the guaranteed energy-savings agreement. The implementation costs of 2.2the utility cost-savings measures recommended in the engineering report shall not exceed 2.3the amount to be saved in utility and operation and maintenance costs over the term of the 2.4lease purchase agreement. The term of the lease purchase agreement shall not exceed 152.525 years from the date of final installation. The lease is assignable in accordance with 2.6terms approved by the commissioner of management and budget.2.7    Sec. 2. Minnesota Statutes 2012, section 216B.098, subdivision 5, is amended to read:2.8    Subd. 5. Medically necessary equipment.(a) A utility shall reconnect or 2.9continue service to a customer's residence where a medical emergency exists or where 2.10medical equipment requiring electricity necessary to sustain life is in use, provided that 2.11the utility receives from a medical doctor written certification, or initial certification by 2.12telephone and written certification within five business days, that failure to reconnect or 2.13continue service will impair or threaten the health or safety of a resident of the customer's 2.14household. The customer must enter into a payment agreement.2.15(b) Certification of the necessity for service is required. Certification may be 2.16provided by:2.17(1) a licensed medical doctor;2.18(2) a licensed physician assistant;2.19    (3) an advanced practice registered nurse, as defined in section 148.171; or2.20(4) a registered nurse, but only to the extent of verifying the current diagnosis or 2.21prescriptions made by a licensed medical doctor for the customer or member of the 2.22customer's household.2.23(c) Except as provided in paragraph (d), a certification may not extend beyond six 2.24months from the date of written certification.2.25(d) If a utility determines that a longer certification is appropriate given a particular 2.26customer's circumstances, the utility may, at its sole discretion, extend the duration of a 2.27certification for up to 12 months.2.28(e) A certification may be renewed, provided that the renewal complies with this 2.29subdivision. A certification may be renewed by the same or another medical professional 2.30who meets the qualifications of paragraph (b).2.31(f) A customer whose account is in arrears must contact and enter into a payment 2.32agreement with the utility. The payment agreement must consider a customer's financial 2.33circumstances and any extenuating circumstances of the household. The payment 2.34agreement may, at the discretion of the utility, contain a provision by which the utility 3.1forgives all or a portion of the amount in which the account is in arrears, which, if 3.2implemented, extinguishes individual liability for the amount forgiven.3.3    Sec. 3. [216B.0991] DEFINITIONS.3.4    Subdivision 1.Scope.For the purposes of sections 216B.0991 to 216B.0995, the 3.5terms defined in this section have the meanings given them.3.6    Subd. 2.Customer."Customer" means a person who has an established relationship 3.7with a propane distributor and whose propane system meets the safety guidelines 3.8established by the propane distributor for residential heating service.3.9    Subd. 3.LIHEAP."LIHEAP" means the low-income home energy assistance 3.10program.3.11    Subd. 4.Propane distributor."Propane distributor" means a person who sells 3.12propane at retail to customers as their primary residential heat source; propane distributors 3.13are not public utilities.3.14    Subd. 5.Residential heating service."Residential heating service" means the 3.15provision of the primary source of heat for the interior of a residential structure.3.16    Sec. 4. [216B.0992] PRICE AND FEE DISCLOSURE.3.17A propane distributor must provide a document listing the current per-gallon price of 3.18propane and all additional charges, fees, and discounts that pertain to residential heating 3.19service. The document must be:3.20(1) made available to the general public upon request; and3.21(2) provided to new customers before residential heating service is initiated.3.22    Sec. 5. [216B.0993] BUDGET PAYMENT PLAN.3.23(a) A propane distributor who offers customers a budget payment plan must make 3.24that same plan available to all customers, including those who participate in the LIHEAP 3.25program.3.26(b) A budget payment plan must equalize a customer's estimated annual propane bill 3.27by dividing it into equal monthly payments. Any budget plan started after the propane 3.28distributor's traditional budget plan start date will be divided by the remaining months 3.29in the budget plan year. Any positive balance remaining at the end of a year may, at the 3.30customer's discretion, be provided to the customer as a cash payment or carried over as a 3.31credit on the customer's bill for the next year.4.1(c) A propane distributor must notify a customer on a budget payment plan of a price 4.2or fee change that may affect the monthly amount due under the budget payment plan 4.3by more than 20 percent.4.4(d) A propane distributor may alter or terminate the plan if a customer has failed to 4.5pay two monthly payments during the period of the budget payment plan. In lieu of the 4.6requirements of this section, the parties may enter into a mutually agreeable plan.4.7    Sec. 6. [216B.0994] PROPANE PURCHASE CONTRACTS.4.8A propane distributor is prohibited from adding any service, distribution, 4.9transportation, or similar fees to customer billings for those customers who have entered 4.10into a contract for prepurchasing or capitated pricing of propane for the period of the 4.11contract provided that:4.12(1) the customer has met all obligations of that contract; and4.13(2) the propane distributor can receive product from its contracted supply points and 4.14a force majeure has not been declared by the propane distributor's supplier.4.15    Sec. 7. [216B.0995] TERMS OF SALE.4.16    Subdivision 1.Cash sales.A propane distributor with an available supply of 4.17propane must not refuse to sell propane to a customer who:4.18(1) pays the distributor's established price upon delivery in cash, by certified or 4.19cashier's check, or by commercial money order or its equivalent; or4.20(2) receives energy assistance from LIHEAP or a governmental or private agency 4.21that has funds available to pay for a delivery.4.22    Subd. 2.LIHEAP participation; delivery.A propane distributor who accepts 4.23LIHEAP payments must, upon request, make available to its customers information 4.24regarding LIHEAP, including income eligibility and contact information for organizations 4.25accepting LIHEAP applications.4.26    Subd. 3.Third-party credit disclosure.A propane distributor must not make 4.27known the names of past or present delinquent customers to other propane distributors, 4.28except in the course of a routine credit check performed when a prospective customer 4.29applies for credit privileges.4.30    Sec. 8. Minnesota Statutes 2012, section 216B.16, subdivision 14, is amended to read:4.31    Subd. 14. Low-income electric rate discount. A public utility shall fund an 4.32affordability program for low-income customers in an amount based on a 50 percent electric 4.33rate discount on the first 400 kilowatt-hours consumed in a billing period for low-income 5.1residential customers of the utility at a base annual funding level of $8,000,000. The annual 5.2funding level shall increase in the calendar years subsequent to each commission approval 5.3of a rate increase for the public utility's residential customers by the same percentage as the 5.4approved residential rate increase. Costs for the program shall be included in the utility's 5.5base rate. For the purposes of this subdivision, "low-income" describes a customer who is 5.6receiving assistance from the federal low-income home energy assistance program. The 5.7affordability program must be designed to target participating customers with the lowest 5.8incomes and highest energy costs in order to lower the percentage of income they devote 5.9to energy bills, increase their payments, lower utility service disconnections, and lower5.10 decrease costs associated with collection activities on their accounts. For low-income 5.11customers who are 62 years of age or older or disabled, the program must, in addition to 5.12any other program benefits, include a 50 percent electric rate discount on the first 400 5.13kilowatt-hours consumed in a $15 discount in each billing period. For the purposes of this 5.14subdivision, "public utility" includes only those public utilities with more than 200,000 5.15residential electric service customers. The commission may issue orders necessary to 5.16implement, administer, and recover the costs of the program on a timely basis.5.17EFFECTIVE DATE.This section is effective October 1, 2014.5.18    Sec. 9. Minnesota Statutes 2012, section 216B.1611, is amended by adding a 5.19subdivision to read:5.20    Subd. 3a.Project information.(a) Beginning July 1, 2014, each electric utility 5.21shall request an applicant for interconnection of distributed renewable energy generation 5.22to provide the following information, in a format prescribed by the commissioner:5.23(1) the nameplate capacity of the facility in the application;5.24(2) the preincentive installed cost and cost components of the generation system 5.25at the facility;5.26(3) the energy source of the facility; and5.27(4) the zip code in which the facility is to be located.5.28(b) The commissioner shall develop or identify a system to collect and process the 5.29information under this subdivision for each utility, and make non-project-specific data 5.30available to the public on a periodic basis as determined by the commissioner, and in a 5.31format determined by the commissioner. The commissioner may solicit proposals from 5.32outside parties to develop the system. The commissioner may only collect data authorized 5.33in paragraph (a), and may not require submission of any additional data that could be used 5.34to personally identify any individual applicant or utility customer.6.1(c) Electric utilities collecting and transferring data under this subdivision are not 6.2responsible for the accuracy, completeness, or quality of the information under this 6.3subdivision.6.4(d) Except as provided in paragraph (b), any information provided by an applicant to 6.5the commissioner under this subdivision is nonpublic data as defined in section 13.02, 6.6subdivision 9.6.7EFFECTIVE DATE.This section is effective July 1, 2014, and applies to 6.8applications received on or after that date.6.9    Sec. 10. [216B.1614] ELECTRIC VEHICLE CHARGING TARIFF.6.10    Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in 6.11this subdivision have the meanings given them.6.12(b) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.6.13(c) "Public utility" has the meaning given in section 216B.02, subdivision 4.6.14(d) "Renewable energy" has the meaning given in section 216B.169, subdivision 2, 6.15paragraph (d).6.16    Subd. 2.Required tariff.(a) By February 1, 2015, each public utility selling 6.17electricity at retail must file with the commission a tariff that allows a customer to purchase 6.18electricity solely for the purpose of recharging an electric vehicle. The tariff must:6.19(1) contain either a time-of-day or off-peak rate, as elected by the public utility;6.20(2) offer a customer the option to purchase electricity:6.21(i) from the utility's current mix of energy supply sources; or6.22(ii) entirely from renewable energy sources, subject to the conditions established 6.23under section 216B.169, subdivision 2, paragraph (b), and subdivision 3, paragraph (a); and6.24(3) be made available to the residential customer class.6.25    (b) The public utility may, at its discretion, offer the tariff to other customer classes.6.26(c) The commission shall, after notice and opportunity for public comment, approve, 6.27modify, or reject the tariff. The commission may approve the tariff if the public utility 6.28has demonstrated that the tariff:6.29(1) appropriately reflects off-peak versus peak cost differences in the rate charged;6.30(2) includes a mechanism to allow the recovery of costs reasonably necessary to 6.31comply with this section, including costs to inform and educate customers about the 6.32financial, energy conservation, and environmental benefits of electric vehicles and to 6.33publicly advertise and promote participation in the customer-optional tariff; 6.34(3) provides for clear and transparent customer billing statements including, but not 6.35limited to, the amount of energy consumed under the tariff; and7.1(4) incorporates the cost of metering or submetering within the rate charged to 7.2the customer.7.3(d) Within 60 days of commission approval of a public utility's tariff filed under this 7.4section, the public utility shall make the tariff available to customers.7.5(e) The utility may at any time propose revisions to a tariff filed under this 7.6subdivision based on changing costs or conditions.7.7    Subd. 3.Data reporting.Each public utility providing a tariff under this section 7.8shall periodically report to the commission, as established by the commission and on a form 7.9prescribed by the commission, the following information, organized on a per-quarter basis:7.10(1) the number of customers who have arranged to purchase electricity under the 7.11tariff;7.12(2) the total amount of electricity sold under the tariff; and7.13(3) other data required by the commission.7.14EFFECTIVE DATE.This section is effective the day following final enactment.7.15    Sec. 11. Minnesota Statutes 2012, section 216B.241, is amended by adding a 7.16subdivision to read:7.17    Subd. 5d.On-bill repayment programs.(a) For the purposes of this subdivision:7.18(1) "utility" means a public utility, municipal utility, or cooperative electric 7.19association that provides electric or natural gas service to retail customers; and7.20(2) "on-bill repayment program" means a program in which a utility collects on a 7.21customer's bill repayment of a loan to the customer by an eligible lender to finance the 7.22customer's investment in eligible energy conservation or renewable energy projects, and 7.23remits loan repayments to the lender.7.24(b) A utility may include as part of its conservation improvement plan an on-bill 7.25repayment program to enable a customer to finance eligible projects with installment 7.26loans originated by an eligible lender. An eligible project is one that is either an energy 7.27conservation improvement, or a project installed on the customer's site that uses an eligible 7.28renewable energy source as that term is defined in section 216B.2411, subdivision 2, 7.29paragraph (b), but does not include mixed municipal solid waste or refuse-derived fuel 7.30from mixed municipal solid waste. An eligible renewable energy source also includes 7.31solar thermal technology that collects the sun's radiant energy and uses that energy to heat 7.32or cool air or water, and meets the requirements of section 216C.25. To be an eligible 7.33lender, a lender must:7.34(1) have a federal or state charter and be eligible for federal deposit insurance; 8.1(2) be a government entity, including an entity established under chapter 469, that 8.2has authority to provide financial assistance for energy efficiency and renewable energy 8.3projects;8.4(3) be a joint venture by utilities established under section 452.25; or8.5(4) be licensed, certified, or otherwise have its lending activities overseen by a 8.6state or federal government agency.8.7The commissioner must allow a utility broad discretion in designing and implementing an 8.8on-bill repayment program, provided that the program complies with this subdivision.8.9(c) A utility may establish an on-bill repayment program for all customer classes 8.10or for a specific customer class.8.11(d) A public utility that implements an on-bill repayment program under this 8.12subdivision must enter into a contract with one or more eligible lenders that complies 8.13with the requirements of this subdivision and contains provisions addressing capital 8.14commitments, loan origination, transfer of loans to the public utility for on-bill repayment, 8.15and acceptance of loans returned due to delinquency or default.8.16(e) A public utility's contract with a lender must require the lender to comply with 8.17all applicable federal and state laws, rules, and regulations related to lending practices 8.18and consumer protection; to conform to reasonable and prudent lending standards; and to 8.19provide businesses that sell, maintain, and install eligible projects the ability to participate 8.20in an on-bill repayment program under this subdivision on a nondiscriminatory basis.8.21(f) A public utility's contract with a lender may provide:8.22(1) for the public utility to purchase loans from the lender with a condition that the 8.23lender must purchase back loans in delinquency or default; or8.24(2) for the lender to retain ownership of loans with the public utility servicing the 8.25loans through on-bill repayment as long as payments are current. 8.26The risk of default must remain with the lender. The lender shall not have recourse against 8.27the public utility except in the event of negligence or breach of contract by the utility.8.28(g) If a public utility customer makes a partial payment on a utility bill that includes 8.29a loan installment, the partial payment must be credited first to the amount owed for 8.30utility service, including taxes and fees. A public utility may not suspend or terminate 8.31a customer's utility service for delinquency or default on a loan that is being serviced 8.32through the public utility's on-bill repayment program.8.33(h) An outstanding balance on a loan being repaid under this subdivision is a 8.34financial obligation only of the customer who is signatory to the loan, and not to any 8.35subsequent customer occupying the property associated with the loan. If the public utility 8.36purchases loans from the lender as authorized under paragraph (f), clause (1), the public 9.1utility must return to the lender a loan not repaid when a customer borrower no longer 9.2occupies the property.9.3(i) Costs incurred by a public utility under this subdivision are recoverable as 9.4provided in section 216B.16, subdivision 6b, paragraph (c), including reasonable 9.5incremental costs for billing system modifications necessary to implement and operate an 9.6on-bill repayment program and for ongoing costs to operate the program. Costs in a plan 9.7approved by the commissioner may be counted toward a utility's conservation spending 9.8requirements under subdivisions 1a and 1b. Energy savings from energy conservation 9.9improvements resulting from this section may be counted toward satisfying a utility's 9.10energy-savings goals under subdivision 1c.9.11(j) This subdivision does not require a utility to terminate or modify an existing 9.12financing program and does not prohibit a utility from establishing an on-bill financing 9.13program in which the utility provides the financing capital.9.14(k) A municipal utility or cooperative electric association that implements an on-bill 9.15repayment program shall design the program to address the issues identified in paragraphs 9.16(d) through (h) as determined by the governing board of the utility or association.9.17    Sec. 12. Minnesota Statutes 2012, section 216B.2422, is amended by adding a 9.18subdivision to read:9.19    Subd. 2c.Long-range emission reduction planning.Each utility required to file a 9.20resource plan under subdivision 2 shall include in the filing a narrative identifying and 9.21describing the costs, opportunities, and technical barriers to the utility continuing to make 9.22progress on its system toward achieving the state greenhouse gas emission reduction goals 9.23established in section 216H.02, subdivision 1, and the technologies, alternatives, and steps 9.24the utility is considering to address those opportunities and barriers.9.25    Sec. 13. Minnesota Statutes 2012, section 216B.243, subdivision 8, is amended to read:9.26    Subd. 8. Exemptions. This section does not apply to:9.27(1) cogeneration or small power production facilities as defined in the Federal Power 9.28Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 9.29paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 9.30than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 9.31any case where the commission has determined after being advised by the attorney general 9.32that its application has been preempted by federal law;10.1(2) a high-voltage transmission line proposed primarily to distribute electricity to 10.2serve the demand of a single customer at a single location, unless the applicant opts to 10.3request that the commission determine need under this section or section 
         216B.2425;10.4(3) the upgrade to a higher voltage of an existing transmission line that serves the 10.5demand of a single customer that primarily uses existing rights-of-way, unless the applicant 10.6opts to request that the commission determine need under this section or section 
         216B.2425;10.7(4) a high-voltage transmission line of one mile or less required to connect a new or 10.8upgraded substation to an existing, new, or upgraded high-voltage transmission line;10.9(5) conversion of the fuel source of an existing electric generating plant to using 10.10natural gas; or10.11(6) the modification of an existing electric generating plant to increase efficiency, 10.12as long as the capacity of the plant is not increased more than ten percent or more than 10.13100 megawatts, whichever is greater.; or10.14(7) a wind energy conversion system or solar electric generation facility if the system 10.15or facility is owned and operated by an independent power producer and the electric output 10.16of the system or facility is not sold to an entity that provides retail service in Minnesota 10.17or wholesale electric service to another entity in Minnesota other than an entity that is a 10.18federally recognized regional transmission organization or independent system operator.10.19EFFECTIVE DATE.This section is effective the day following final enactment.10.20    Sec. 14. Minnesota Statutes 2012, section 216C.41, subdivision 4, is amended to read:10.21    Subd. 4. Payment period. (a) A facility may receive payments under this section for 10.22a ten-year period. No payment under this section may be made for electricity generated:10.23    (1) by a qualified hydroelectric facility after December 31, 2021;10.24    (2) by a qualified wind energy conversion facility after December 31, 2018; or10.25    (3) by a qualified on-farm biogas recovery facility after December 31, 2015 2017.10.26    (b) The payment period begins and runs consecutively from the date the facility 10.27begins generating electricity or, in the case of refurbishment of a hydropower facility, after 10.28substantial repairs to the hydropower facility dam funded by the incentive payments are 10.29initiated.10.30    Sec. 15. Minnesota Statutes 2012, section 216C.436, subdivision 4, is amended to read:10.31    Subd. 4. Financing terms. Financing provided under this section must have:10.32(1) a weightedcost-weighted average maturity not exceeding the useful life of 10.33the energy improvements installed, as determined by the implementing entity, but in no 10.34event may a term exceed 20 years;11.1(2) a principal amount not to exceed the lesser of ten 20 percent of the assessed value 11.2of the real property on which the improvements are to be installed or the actual cost of 11.3installing the energy improvements, including the costs of necessary equipment, materials, 11.4and labor, the costs of each related energy audit or renewable energy system feasibility 11.5study, and the cost of verification of installation; and11.6(3) an interest rate sufficient to pay the financing costs of the program, including the 11.7issuance of bonds and any financing delinquencies.11.8EFFECTIVE DATE.This section is effective the day following final enactment.11.9    Sec. 16. Minnesota Statutes 2012, section 216C.436, is amended by adding a 11.10subdivision to read:11.11    Subd. 9.Supplemental funding sources.(a) An implementing entity is authorized 11.12to establish, acquire, and use additional or alternative funding sources for the purposes 11.13of this section.11.14(b) For the purposes of this subdivision, additional or alternative funding sources do 11.15not include issuance of general obligation bonds.11.16EFFECTIVE DATE.This section is effective the day following final enactment.11.17    Sec. 17. Minnesota Statutes 2012, section 216E.01, is amended by adding a subdivision 11.18to read:11.19    Subd. 8a.Solar energy generating system."Solar energy generating system" 11.20means a set of devices whose primary purpose is to produce electricity by means of any 11.21combination of collecting, transferring, or converting solar-generated energy.11.22EFFECTIVE DATE.This section is effective the day following final enactment.11.23    Sec. 18. [216E.021] SOLAR ENERGY SYSTEM SIZE DETERMINATION.11.24(a) This section must be used to determine whether a combination of solar energy 11.25generating systems meets the definition of large electric power generating plant and is 11.26subject to the commission's siting authority jurisdiction under this chapter. The alternating 11.27current nameplate capacity of one solar energy generating system must be combined with 11.28the alternating current nameplate capacity of any other solar energy generating system that:11.29(1) is constructed within the same 12-month period as the solar energy generating 11.30system; and12.1(2) exhibits characteristics of being a single development, including but not limited 12.2to ownership structure, an umbrella sales arrangement, shared interconnection, revenue 12.3sharing arrangements, and common debt or equity financing.12.4(b) The commissioner of commerce shall provide forms and assistance for applicants 12.5to make a request for a size determination. Upon written request of an applicant, the 12.6commissioner shall provide a written size determination within 30 days of receipt of the 12.7request and of any information requested by the commissioner. In the case of a dispute, 12.8the chair of the Public Utilities Commission shall make the final size determination.12.9EFFECTIVE DATE.This section is effective the day following final enactment.12.10    Sec. 19. Minnesota Statutes 2012, section 216E.04, subdivision 2, is amended to read:12.11    Subd. 2. Applicable projects. The requirements and procedures in this section 12.12apply to the following projects:12.13(1) large electric power generating plants with a capacity of less than 80 megawatts;12.14(2) large electric power generating plants that are fueled by natural gas;12.15(3) high-voltage transmission lines of between 100 and 200 kilovolts;12.16(4) high-voltage transmission lines in excess of 200 kilovolts and less than five miles 12.17in length in Minnesota;12.18(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent 12.19of the distance of the line in Minnesota will be located along existing high-voltage 12.20transmission line right-of-way;12.21(6) a high-voltage transmission line service extension to a single customer between 12.22200 and 300 kilovolts and less than ten miles in length; and12.23(7) a high-voltage transmission line rerouting to serve the demand of a single 12.24customer when the rerouted line will be located at least 80 percent on property owned or 12.25controlled by the customer or the owner of the transmission line; and12.26(8) large electric power generating plants that are powered by solar energy.12.27EFFECTIVE DATE.This section is effective the day following final enactment.12.28    Sec. 20. Minnesota Statutes 2012, section 239.051, subdivision 29, is amended to read:12.29    Subd. 29. Refinery, terminal. "Refinery" or "terminal" means a petroleum refinery, 12.30pipeline terminal, river terminal, storage facility, or other point of origin where liquefied 12.31petroleum gas or petroleum products are manufactured, or imported by rail, truck, barge, or 12.32pipe; and held, stored, transferred, offered for distribution, distributed, offered for sale, or 12.33sold. For the purpose of restricting petroleum product blending, this definition includes all 13.1refineries and terminals within and outside of Minnesota, but does not include a licensed 13.2distributor's bulk storage facility that is used to store petroleum products for which the 13.3petroleum inspection fee charged under this chapter is either not due or has been paid.13.4    Sec. 21. Minnesota Statutes 2012, section 239.785, is amended by adding a subdivision 13.5to read:13.6    Subd. 7.Notification of product unavailability; terminal operators. A person 13.7who operates a terminal where liquefied petroleum gas is loaded into transport trucks for 13.8subsequent distribution shall notify the commissioner within 24 hours when liquefied 13.9petroleum gas is physically not available for sale to licensed distributors.13.10    Sec. 22. Minnesota Statutes 2012, section 325E.027, is amended to read:13.11325E.027 DISCRIMINATION PROHIBITION.13.12    (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil 13.13who has signed a low-income home energy assistance program vendor agreement with the 13.14Department of Commerce may refuse to deliver liquid propane gas or number 1 or number 13.152 fuel oil to any person located within the dealer's or distributor's normal delivery area 13.16who receives direct grants under the low-income home energy assistance program if:13.17    (1) the person has requested delivery;13.18    (2) the dealer or distributor has product available;13.19    (3) the person requesting delivery is capable of making full payment at the time of 13.20delivery; and13.21    (4) the person is not in arrears regarding any previous fuel purchase from that dealer 13.22or distributor.13.23    (b) A dealer or distributor making delivery to a person receiving direct grants 13.24under the low-income home energy assistance program may not charge that person any 13.25additional costs or fees that would not be charged to any other customer and must make 13.26available to that person any discount program on the same basis as the dealer or distributor 13.27makes available to any other customer.13.28(c) The commissioner of commerce may enforce this section using any of the 13.29authority granted to the commissioner under section 45.027.13.30EFFECTIVE DATE.This section is effective the day following final enactment.13.31    Sec. 23. Laws 2013, chapter 57, section 2, is amended to read:14.1    Sec. 2. TRANSMISSION LINE; CERTIFICATE OF NEED REQUIRED 14.2AND EVIDENCE REQUIRED.14.3(a) A high-voltage transmission line with a capacity of 100 kilovolts or more proposed 14.4to be located within a city in the metropolitan area as defined in Minnesota Statutes, 14.5section 
         473.121, subdivision 2, for which a route permit application was filed between 14.6June 2011 and August 2011, and a certificate of need application was filed between June 14.72012 and August 2012, to rebuild approximately eight miles of 69 kilovolt transmission 14.8with a high-voltage transmission line to meet local area distribution needs, must be 14.9approved in a certificate of need proceeding conducted under Minnesota Statutes, section 14.10216B.243
         . The certificate of need may be approved only if the commission finds by clear 14.11and convincing evidence that there is no feasible and available distribution level alternative 14.12to the transmission line. In making its findings the commission shall consider the factors 14.13provided in applicable law and rules including, without limitation, cost-effectiveness, 14.14energy conservation, and the protection or enhancement of environmental quality.14.15(b) Further proceedings regarding the routing of a high-voltage transmission line 14.16described in this section shall be suspended until the Public Utilities Commission has 14.17made a determination that the transmission line is needed.14.18(c) If an application for a certificate of need described in paragraph (a) is withdrawn 14.19or otherwise abandoned, this section shall apply to any high-voltage transmission line of 14.20100 kilovolts or more proposed to meet the same needs as the line described in paragraph 14.21(a) and that follows a route that is similar to that of the line subject to paragraph (a). In 14.22addition, a certificate of need for a line subject to this paragraph is not effective until 14.2330 days following the adjournment of the regular legislative session next following 14.24commission approval of the certificate of need.14.25EFFECTIVE DATE.This section is effective the day following final enactment.14.26    Sec. 24. Laws 2014, chapter 145, section 1, is amended to read:14.27    Section 1. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM; 14.28SUPPLEMENTAL APPROPRIATION.14.29(a) $20,000,000 is appropriated in fiscal year 2014 from the general fund to the 14.30commissioner of commerce for the purpose of providing additional heating assistance 14.31through the low-income home energy assistance program under United States Code, title 14.3242, sections 8621 to 8630, and Minnesota Statutes, section 
         216C.02, subdivision 1. No 14.33more than five eight percent of this appropriation may be used for expenses to administer 14.34the program. Any unspent balance available on June 30, 2014, cancels to the general fund.15.1(b) The funding provided in this section shall supplement, and not replace, any 15.2federal or other funding existing or otherwise available for heating assistance in Minnesota.15.3(c) The commissioner shall disburse the funds provided in this section in a manner 15.4consistent with the requirements of the federal low-income home energy assistance 15.5program under United States Code, title 42, sections 8621 to 8630.15.6EFFECTIVE DATE.This section is effective retroactively from March 1, 2014.15.7    Sec. 25. LEGISLATIVE ENERGY COMMISSION; PROPANE CONVERSION 15.8STRATEGIES.15.9(a) The Legislative Energy Commission is requested to investigate the feasibility of 15.10converting propane gas users to natural gas or other alternative sources of energy. The 15.11investigation, among other things, should assess the technical and economic issues for 15.12converting nonmetropolitan users of propane gas to pipeline service of natural gas.15.13(b) The commission is requested to complete its investigations so that any 15.14recommendations for legislation are completed by January 15, 2015.15.15EFFECTIVE DATE.This section is effective the day following final enactment.15.16    Sec. 26.  REPEALER.15.17    Subdivision 1.Weatherization assistance.Minnesota Rules, parts 3300.0800; 15.183300.0900; 3300.1000, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 15.1920, 21, 22, 23, 24, 25, 25a, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, and 36; 3300.1100; 15.203300.1200; 3300.1300; 3300.1400; 3300.1500; 3300.1600; 3300.1700; 3300.1800; and 15.213300.1900, are repealed.15.22    Subd. 2.Energy conservation loan program.Minnesota Rules, parts 7607.0100; 15.237607.0110; 7607.0120; 7607.0130; 7607.0140; 7607.0150; 7607.0160; 7607.0170; and 15.247607.0180, are repealed.15.25    Subd. 3.Cooling systems replacement; energy efficiency criteria.Minnesota 15.26Rules, parts 7685.0100; 7685.0120; 7685.0130; and 7685.0140, are repealed."15.27Delete the title and insert:15.28"A bill for an act15.29relating to energy; modifying, adding, or authorizing provisions governing 15.30medically necessary equipment, propane sales, low-income rate discounts, 15.31interconnection of distributed generation, electric vehicle charging tariffs, 15.32on-bill repayment programs, energy efficiency programs, emissions reduction 15.33planning, certificates of need, solar energy systems, transmission lines, and 15.34low-income home energy assistance; repealing certain obsolete administrative 15.35rules; requiring a report;amending Minnesota Statutes 2012, sections 16C.144, 15.36subdivision 3; 216B.098, subdivision 5; 216B.16, subdivision 14; 216B.1611, 15.37by adding a subdivision; 216B.241, by adding a subdivision; 216B.2422, 16.1by adding a subdivision; 216B.243, subdivision 8; 216C.41, subdivision 4; 16.2216C.436, subdivision 4, by adding a subdivision; 216E.01, by adding a 16.3subdivision; 216E.04, subdivision 2; 239.051, subdivision 29; 239.785, by 16.4adding a subdivision; 325E.027; Laws 2013, chapter 57, section 2; Laws 2014, 16.5chapter 145, section 1; proposing coding for new law in Minnesota Statutes, 16.6chapters 216B; 216E; repealing Minnesota Rules, parts 3300.0800; 3300.0900; 16.73300.1000, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 16.820, 21, 22, 23, 24, 25, 25a, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36; 3300.1100; 16.93300.1200; 3300.1300; 3300.1400; 3300.1500; 3300.1600; 3300.1700; 16.103300.1800; 3300.1900; 7607.0100; 7607.0110; 7607.0120; 7607.0130; 16.117607.0140; 7607.0150; 7607.0160; 7607.0170; 7607.0180; 7685.0100; 16.127685.0120; 7685.0130; 7685.0140."

We request the adoption of this report and repassage of the bill.House Conferees:
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                     						Melissa HortmanWill Morgan
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                     						Pat GarofaloYvonne Selcer
                     							.....
                     						Erik SimonsonSenate Conferees:
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                     						John MartyJulie A. Rosen
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                     						John A. HoffmanJim Carlson
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                     						D. Scott Dibble