1.1 	A bill for an act
1.2 	relating to energy; modifying and establishing various provisions governing energy 
1.3 	policy and finance; strengthening requirements for clean energy and energy 
1.4 	conservation in Minnesota; appropriating money; requiring reports;amending 
1.5 	Minnesota Statutes 2018, sections 13.685; 116C.7792; 216B.16, subdivision 13, 
1.6 	by adding a subdivision; 216B.1641; 216B.1645, subdivisions 1, 2; 216B.1691, 
1.7 	subdivisions 1, 2b, 9, by adding a subdivision; 216B.2401; 216B.241, subdivisions 
1.8 	1a, 1c, 1d, 1f, 2, 2b, 3, 5, 7, 9, by adding a subdivision; 216B.2422, subdivisions 
1.9 	1, 2, 3, 4, 5, by adding subdivisions; 216B.243, subdivisions 3, 3a; 216C.435, 
1.10 	subdivisions 3a, 8; 216C.436, subdivision 4, by adding a subdivision; 216F.04; 
1.11 	216F.08; 326B.106, by adding a subdivision; proposing coding for new law in 
1.12 	Minnesota Statutes, chapters 216B; 216C; repealing Minnesota Statutes 2018, 
1.13 	section 216B.241, subdivisions 1, 2c, 4.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	Section 1. Minnesota Statutes 2018, section 13.685, is amended to read:
1.16 	13.685 MUNICIPAL UTILITY CUSTOMER DATA.
1.17 	Data on customers of municipal electric utilities are private data on individuals or 
1.18 	nonpublic data, but may be released to:
1.19 	(1) a law enforcement agency that requests access to the data in connection with an 
1.20 	investigation;
1.21 	(2) a school for purposes of compiling pupil census data;
1.22 	(3) the Metropolitan Council for use in studies or analyses required by law;
1.23 	(4) a public child support authority for purposes of establishing or enforcing child support; 
1.24 	or
1.25 	(5) a person authorized to receive the data under section 216B.078; or
2.1 	(5) (6) a person where use of the data directly advances the general welfare, health, or 
2.2 	safety of the public; the commissioner of administration may issue advisory opinions 
2.3 	construing this clause pursuant to section 13.072.

2.4 	Sec. 2. Minnesota Statutes 2018, section 116C.7792, is amended to read:
2.5 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
2.6 	The utility subject to section 116C.779 shall operate a program to provide solar energy 
2.7 	production incentives for solar energy systems of no more than a total aggregate nameplate 
2.8 	capacity of 40 kilowatts direct alternating current per premise. The owner of a solar energy 
2.9 	system installed before June 1, 2018, is eligible to receive a production incentive under this 
2.10 	section for any additional solar energy systems constructed at the same customer location, 
2.11 	provided that the aggregate capacity of all systems at the customer location does not exceed 
2.12 	40 kilowatts. The program shall be operated for eight nine consecutive calendar years 
2.13 	commencing in 2014. $5,000,000 shall be allocated in each of the first four years, 
2.14 	$15,000,000 in each of the fifth year, $10,000,000 and sixth years, $14,000,000 in each of 
2.15 	the sixth and seventh and eighth years, and $5,000,000 in the eighth ninth year from funds 
2.16 	withheld from transfer to the renewable development account under section 116C.779, 
2.17 	subdivision 1, paragraphs (b) and (e), and placed in a separate account for the purpose of 
2.18 	the solar production incentive program operated by the utility and not for any other program 
2.19 	or purpose. Any unspent amount allocated in the fifth year is available until December 31 
2.20 	of the sixth year. Any unspent amount remaining at the end of any other allocation year 
2.21 	must be transferred to the renewable development account. The solar system must be sized 
2.22 	to less than 120 percent of the customer's on-site annual energy consumption when combined 
2.23 	with other distributed generation resources and subscriptions provided under section 
2.24 	216B.1641 associated with the premise. The production incentive must be paid for ten years 
2.25 	commencing with the commissioning of the system. The utility must file a plan to operate 
2.26 	the program with the commissioner of commerce. The utility may not operate the program 
2.27 	until it is approved by the commissioner. A change to the program to include projects up 
2.28 	to a nameplate capacity of 40 kilowatts or less does not require the utility to file a plan with 
2.29 	the commissioner. Any plan approved by the commissioner of commerce must not provide 
2.30 	an increased incentive scale over prior years unless the commissioner demonstrates that 
2.31 	changes in the market for solar energy facilities require an increase.

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

3.1 	Sec. 3. [216B.078] CUSTOMER ENERGY DATA.
3.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
3.3 	the meanings given.
3.4 	(b) "Customer" means a person contracting for or purchasing electric or natural gas 
3.5 	service from a utility.
3.6 	(c) "Customer data" means all data a utility collects, creates, receives, or maintains in 
3.7 	which a customer is identified or can be identified as the subject of the data. Customer data 
3.8 	includes energy usage data.
3.9 	(d) "Energy usage data" means a customer's account information and the data a utility 
3.10 	collects from the customer's meter that reflects the quantity, quality, or timing of the 
3.11 	customer's natural gas use, electricity use, or electricity production. Customer energy usage 
3.12 	data includes but is not limited to data regarding:
3.13 	(1) the amount and timing of energy use and production;
3.14 	(2) energy outages, frequency, intermittency, or shutoffs;
3.15 	(3) pricing and rate data applicable to the customer; and
3.16 	(4) any other energy usage data used to calculate the customer's bill.
3.17 	(e) "Summary energy usage data" means statistical records and reports derived from 
3.18 	energy usage data that do not contain a customer's personally identifiable information.
3.19 	(f) "Personally identifiable information" means any data in which a customer is identified 
3.20 	or can be identified as the subject of the data.
3.21 	(g) "Third party" means a person, other than a customer, who requests customer energy 
3.22 	usage data or summary energy usage data from the utility that maintains the data.
3.23 	(h) "Utility" means a public utility, retail municipal utility, or retail cooperative 
3.24 	association that provides electric or natural gas service to Minnesota customers.
3.25 		Subd. 2.Customer access to energy usage data. (a) A utility must provide a customer 
3.26 	with access to the customer's own energy usage data.
3.27 	(b) Access must be convenient for the typical customer. A utility's procedure to access 
3.28 	energy usage data must be user-friendly. The utility must present the energy usage data in 
3.29 	a format comprehensible to the typical customer.
3.30 	(c) A utility must provide access to energy usage data in as close to real-time as 
3.31 	practicable.
4.1 	(d) Access to energy usage data must be provided free of charge to the customer, except 
4.2 	that a utility may charge a fee if a customer requests access to energy usage data in a format 
4.3 	or standard that differs from the format or standard the utility generally offers to customers.
4.4 	(e) A utility must notify a customer if it substantially modifies the customer's energy 
4.5 	usage data. The notification must include a detailed explanation of the changes made to the 
4.6 	customer's energy usage data.
4.7 		Subd. 3.Third-party access to energy usage data. (a) If a customer provides 
4.8 	authorization, a utility must provide one or more third parties with access to the customer's 
4.9 	energy usage data.
4.10 	(b) The procedure a utility uses to allow a customer to authorize third-party access to 
4.11 	energy usage data must be (1) convenient for the typical customer, and (2) available on the 
4.12 	utility's website and in physical form by mail.
4.13 	(c) The scope of the authorization may limit a third party's access to specific elements 
4.14 	of the customer's energy usage data.
4.15 	(d) An authorization to access energy usage data is valid for the period of time specified 
4.16 	in the written authorization. An authorization may include a period without a specified end 
4.17 	date.
4.18 	(e) A customer may revoke an authorization for third-party access at any time. The 
4.19 	utility's procedure to revoke authorization must be (1) convenient for the typical customer, 
4.20 	and (2) available on the utility's website and in physical form by mail.
4.21 	(f) Subject to the scope of the authorization, an authorized third party must have the 
4.22 	same level of access to the customer's energy usage data as the customer.
4.23 	(g) To the extent a third party with access to energy usage data under this subdivision 
4.24 	maintains the data independent of the utility providing access, the third party is subject to 
4.25 	the data security and privacy requirements under subdivision 6.
4.26 		Subd. 4.Public access to summary energy data. (a) A utility must prepare and make 
4.27 	available summary energy usage data upon the written request of any person. The procedure 
4.28 	a utility uses to allow a person to request summary energy data must be (1) convenient for 
4.29 	the typical customer, and (2) available on the utility's website. A utility may charge the 
4.30 	requester a fee to prepare and supply summary energy data.
4.31 	(b) Summary energy usage data provided under this subdivision may include aggregated 
4.32 	sets of customer energy usage data from no less than 15 customers. A single customer's 
4.33 	energy use must not constitute more than 15 percent of total energy consumption for the 
5.1 	requested data set. Summary energy usage data may be disaggregated on a per-customer 
5.2 	basis, provided that the customer's identity is not ascertainable.
5.3 	(c) Within ten days of the date a request for summary energy data is received, a utility 
5.4 	must respond by providing the requester with:
5.5 	(1) the summary energy data requested or a reference to responsive summary energy 
5.6 	data published under paragraph (d);
5.7 	(2) a written statement that describes any fee charged and a time schedule for preparing 
5.8 	the requested summary energy data, including reasons for any time delays; or
5.9 	(3) a written statement stating reasons why the utility has determined the requested 
5.10 	summary energy data cannot be prepared.
5.11 	(d) A utility may make summary energy data publicly available on its website.
5.12 		Subd. 5.Fees charged for data. A utility charging a data access fee authorized by this 
5.13 	section must:
5.14 	(1) base the fee amount on the actual costs incurred by the utility to create and deliver 
5.15 	the requested data;
5.16 	(2) consider the reasonable value to the utility of the data prepared and, if appropriate, 
5.17 	reduce the fee assessed to the requesting person;
5.18 	(3) provide the requesting person with an estimate and explanation of the fee; and
5.19 	(4) collect the fee before preparing or supplying the requested data.
5.20 		Subd. 6.Data security and privacy. (a) A utility must establish appropriate, 
5.21 	industry-standard safeguards to protect the security of energy usage data it maintains. A 
5.22 	utility is prohibited from selling, sharing, licensing, or disseminating energy usage data, 
5.23 	except as authorized under this section or by state or federal law.
5.24 	(b) Utilities must implement risk management practices to protect customer data. Risk 
5.25 	management practices must include but are not limited to practices that:
5.26 	(1) identify, analyze, and mitigate cybersecurity risks to customer data;
5.27 	(2) reasonably protect against loss and unauthorized use, access, or dissemination of 
5.28 	customer data;
5.29 	(3) implement employee training measures to preserve data integrity; and
5.30 	(4) maintain a comprehensive data breach response program to identify, mitigate, and 
5.31 	resolve an incident that causes or results in the unauthorized use, access, or dissemination 
6.1 	of customer data. The data breach response program must provide for complete, accurate, 
6.2 	and timely notice to customers whose customer data may have been compromised.
6.3 	(c) If a utility uses a third-party service to maintain or store customer data, the utility 
6.4 	must ensure that the third-party service implements risk management practices that meet 
6.5 	the requirements under paragraph (b).
6.6 		Subd. 7.Enforcement. The commissioner may enforce this section as provided under 
6.7 	section 45.027.

6.8 	Sec. 4. Minnesota Statutes 2018, section 216B.16, is amended by adding a subdivision to 
6.9 	read:
6.10 		Subd. 7e.Energy storage system pilot projects. (a) A public utility may petition the 
6.11 	commission under this section to recover costs associated with implementing an energy 
6.12 	storage system pilot project. As part of the petition, the public utility must submit a report 
6.13 	to the commission containing, at a minimum, the following information regarding the 
6.14 	proposed energy storage system pilot project:
6.15 	(1) the storage technology utilized;
6.16 	(2) the energy storage capacity and the duration of output at that capacity;
6.17 	(3) the proposed location;
6.18 	(4) the purchase and installation costs;
6.19 	(5) how the project will interact with existing distributed generation resources on the 
6.20 	utility's grid; and
6.21 	(6) the goals the project proposes to achieve, which may include controlling frequency 
6.22 	or voltage, mitigating transmission congestion, providing emergency power supplies during 
6.23 	outages, reducing curtailment of existing renewable energy generators, and reducing peak 
6.24 	power costs.
6.25 	(b) A utility may petition the commission to approve a rate schedule that provides for 
6.26 	the automatic adjustment of charges to recover prudently incurred investments, expenses, 
6.27 	or costs associated with energy storage system pilot projects approved by the commission 
6.28 	under this subdivision. A petition filed under this subdivision must include the elements 
6.29 	listed in section 216B.1645, subdivision 2a, paragraph (b), clauses (1) to (4), and must 
6.30 	describe the benefits of the pilot project.
7.1 	(c) The commission may approve, or approve as modified, a rate schedule filed under 
7.2 	this subdivision. The rate schedule filed by the public utility may include the elements listed 
7.3 	in section 216B.1645, subdivision 2a, paragraph (a), clauses (1) to (5).
7.4 	(d) For each pilot project that the commission has determined is in the public interest, 
7.5 	the commission must determine the specific amounts that are eligible for recovery under 
7.6 	the approved rate schedule within 90 days of the date the specific pilot program receives 
7.7 	final approval or within 90 days of the date the public utility files for approval of cost 
7.8 	recovery for the specific pilot program, whichever is later.
7.9 	(e) Nothing in this subdivision prohibits or deters the deployment of energy storage 
7.10 	systems.
7.11 	(f) For the purposes of this subdivision:
7.12 	(1) "energy storage system" has the meaning given in section 216B.2422, subdivision 
7.13 	1; and
7.14 	(2) "pilot project" means a project that is (i) owned, operated, and controlled by a public 
7.15 	utility to optimize safe and reliable system operations, and (ii) deployed at a limited number 
7.16 	of locations in order to assess the technical and economic effectiveness of its operations.

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

7.18 	Sec. 5. Minnesota Statutes 2018, section 216B.16, subdivision 13, is amended to read:
7.19 		Subd. 13.Economic and community development. The commission may allow a 
7.20 	public utility to recover from ratepayers the expenses incurred (1) for economic and 
7.21 	community development, and (2) to employ local workers to construct and maintain 
7.22 	generation facilities that supply power to the utility's customers.

7.23 	Sec. 6. Minnesota Statutes 2018, section 216B.1641, is amended to read:
7.24 	216B.1641 COMMUNITY SOLAR GARDEN.
7.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
7.26 	the meanings given.
7.27 	(b) "Subscriber" means a retail customer of a utility who owns one or more subscriptions 
7.28 	to a community solar garden interconnected with that utility.
7.29 	(c) "Subscription" means a contract between a subscriber and the owner of a community 
7.30 	solar garden.
8.1 		Subd. 2.Solar garden; project requirements. (a) The public utility subject to section 
8.2 	116C.779 shall file by September 30, 2013, a plan with the commission to operate a 
8.3 	community solar garden program which shall begin operations within 90 days after 
8.4 	commission approval of the plan. Other public utilities may file an application at their 
8.5 	election. The community solar garden program must be designed to offset the energy use 
8.6 	of not less than five subscribers in each community solar garden facility of which no single 
8.7 	subscriber has more than a 40 percent interest. The owner of the community solar garden 
8.8 	may be a public utility or any other entity or organization that contracts to sell the output 
8.9 	from the community solar garden to the utility under section 216B.164. There shall be no 
8.10 	limitation on the number or cumulative generating capacity of community solar garden 
8.11 	facilities other than the limitations imposed under section 216B.164, subdivision 4c, or 
8.12 	other limitations provided in law or regulations.
8.13 	(b) A solar garden is a facility that generates electricity by means of a ground-mounted 
8.14 	or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the 
8.15 	electricity generated in proportion to the size of their subscription. The solar garden must 
8.16 	have a nameplate capacity of no more than one megawatt three megawatts. Each subscription 
8.17 	shall be sized to represent at least 200 watts of the community solar garden's generating 
8.18 	capacity and to supply, when combined with other distributed generation resources serving 
8.19 	the premises, no more than 120 percent of the average annual consumption of electricity 
8.20 	by each subscriber at the premises to which the subscription is attributed.
8.21 	(c) The solar generation facility must be located in the service territory of the public 
8.22 	utility filing the plan. Subscribers must be retail customers of the public utility. Subscribers 
8.23 	must be located in the same county as the solar garden or in a contiguous county contiguous 
8.24 	to where the facility is located., unless:
8.25 	(1) the solar garden has a minimum setback of 100 feet from the nearest residential 
8.26 	property; and
8.27 	(2) the owner or operator of the solar garden provides written certification to the 
8.28 	commission that at least ten percent of the solar garden's electric generating capacity is 
8.29 	reserved for residential subscribers.
8.30 	(d) The public utility must purchase from the community solar garden all energy generated 
8.31 	by the solar garden. Except as provided under subdivision 7, the purchase shall be at the 
8.32 	most recent three-year average of the rate calculated annually under section 216B.164, 
8.33 	subdivision 10, or, until that rate for the public utility has been approved by the commission, 
8.34 	the applicable retail rate. A solar garden is eligible for any incentive programs offered under 
9.1 	either section 116C.7792or section 216C.415. A subscriber's portion of the purchase shall 
9.2 	be provided by a credit on the subscriber's bill.
9.3 	(e) Beginning January 1, 2020, any solar garden application filed with a utility must 
9.4 	certify that all workers constructing the solar garden will be paid at the prevailing wage 
9.5 	rate, as defined in section 177.42, subdivision 6.
9.6 		Subd. 3.Solar garden plan; requirements; nonutility status. (e) (a) The commission 
9.7 	may approve, disapprove, or modify a community solar garden program plan. Any plan 
9.8 	approved by the commission must:
9.9 	(1) reasonably allow for the creation, financing, and accessibility of community solar 
9.10 	gardens;
9.11 	(2) establish uniform standards, fees, and processes for the interconnection of community 
9.12 	solar garden facilities that allow the utility to recover reasonable interconnection costs for 
9.13 	each community solar garden;
9.14 	(3) not apply different requirements to utility and nonutility community solar garden 
9.15 	facilities;
9.16 	(4) be consistent with the public interest;
9.17 	(5) identify the information that must be provided to potential subscribers to ensure fair 
9.18 	disclosure of future costs and benefits of subscriptions;
9.19 	(6) include a program implementation schedule;
9.20 	(7) identify all proposed rules, fees, and charges; and
9.21 	(8) identify the means by which the program will be promoted.
9.22 	(f) (b) Notwithstanding any other law, neither the manager of nor the subscribers to a 
9.23 	community solar garden facility shall be considered a utility solely as a result of their 
9.24 	participation in the community solar garden facility.
9.25 	(g) (c) Within 180 days of commission approval of a plan under this section, a utility 
9.26 	shall begin crediting subscriber accounts for each community solar garden facility in its 
9.27 	service territory, and shall file with the commissioner of commerce a description of its 
9.28 	crediting system.
9.29 	(h) For the purposes of this section, the following terms have the meanings given:
9.30 	(1) "subscriber" means a retail customer of a utility who owns one or more subscriptions 
9.31 	of a community solar garden facility interconnected with that utility; and
10.1 	(2) "subscription" means a contract between a subscriber and the owner of a solar garden.
10.2 		Subd. 4.Program administration; enforcement. (a) The Department of Commerce 
10.3 	must administer the community solar garden program and is responsible for implementing 
10.4 	all elements of the program. The department's duties under this section include:
10.5 	(1) processing community solar garden applications;
10.6 	(2) establishing and accepting program fees from applicants and solar garden managers;
10.7 	(3) calculating the rate paid to subscribers and submitting the rate to the commission for 
10.8 	approval;
10.9 	(4) ensuring that community solar garden program documents and protocols are available 
10.10 	to subscribers;
10.11 	(5) ensuring that solar garden managers provide adequate notice to subscribers of changes 
10.12 	in solar garden operations, including but not limited to adjustments in subscriber bill credit 
10.13 	rates;
10.14 	(6) ensuring that a utility conducts the interconnection process in a timely fashion;
10.15 	(7) ensuring that the actions of solar garden owners, operators, and subscribers comply 
10.16 	with this section and orders of the commission; and
10.17 	(8) other administrative tasks as determined by the commissioner.
10.18 	(b) The commissioner may use the authority granted under section 45.027 to enforce 
10.19 	any violations related to the duties and responsibilities entrusted to the commissioner under 
10.20 	this subdivision.
10.21 		Subd. 5.Account established. A solar garden administrative account is established in 
10.22 	the special revenue fund. Fees collected under this section must be deposited in and credited 
10.23 	to the account. Money in the account, including interest, is appropriated to the commissioner 
10.24 	to administer this section.
10.25 		Subd. 6.Community access project; eligibility. Any community solar garden established 
10.26 	under a plan approved by the commission may petition the commission to be designated as 
10.27 	a community access project. The commission must designate a solar garden as a community 
10.28 	access project if the solar garden meets the following conditions:
10.29 	(1) at least 50 percent of the solar garden's generating capacity is subscribed by residential 
10.30 	customers;
11.1 	(2) the contract between an owner of the solar garden and the public utility that purchases 
11.2 	the garden's electricity, and any agreement between the utility or owner of the solar garden 
11.3 	and subscribers, states (i) the owner of the solar garden does not discriminate against or 
11.4 	screen subscribers based on income or credit score, and (ii) any customer of a utility whose 
11.5 	community solar garden plan has been approved by the commission under subdivision 3 is 
11.6 	eligible to become a subscriber;
11.7 	(3) the solar garden is operated by an entity that maintains a physical address in Minnesota 
11.8 	and has designated a contact person in Minnesota who responds to subscriber inquiries; and
11.9 	(4) the agreement between the owner of the solar garden and subscribers states the owner 
11.10 	will adequately publicize and convene at least one meeting annually to provide an opportunity 
11.11 	for subscribers to address questions to the manager or owner.
11.12 		Subd. 7.Community access project; financial arrangements. (a) If a solar garden is 
11.13 	approved by the commission as a community access project:
11.14 	(1) the public utility purchasing the electricity generated by the community access project 
11.15 	may charge the owner of the community access project no more than one cent per watt 
11.16 	alternating current, based on the solar garden's generating capacity, for any refundable 
11.17 	deposit the utility requires of a solar garden during the application process;
11.18 	(2) notwithstanding subdivision 2, paragraph (d), the public utility must purchase all 
11.19 	energy generated by the community access project at the retail rate;
11.20 	(3) a subscriber's portion of the energy purchased from a community access project by 
11.21 	a public utility must be credited to the subscriber's bill; and
11.22 	(4) all renewable energy credits generated by the community access project belong to 
11.23 	subscribers unless the operator:
11.24 	(i) contracts to sell the renewable energy credits to a third party, or sell or transfer the 
11.25 	renewable energy credits to the utility; and
11.26 	(ii) discloses the sale or transfer to a subscriber at the time the subscriber enters into a 
11.27 	subscription.
11.28 	(b) If at any time a solar garden approved by the commission as a community access 
11.29 	project fails to meet the conditions under subdivision 4, the solar garden is no longer subject 
11.30 	to subdivisions 5 and 6 and must operate under the program rules established by the 
11.31 	commission for a solar garden that does not qualify as a community access project.
12.1 	(c) An owner of a solar garden whose designation as a community access project is 
12.2 	revoked under this subdivision may reapply to the commission at any time to have its 
12.3 	designation as a community access project reinstated under subdivision 4.
12.4 		Subd. 8.Community access project; reporting. (a) The owner of a community access 
12.5 	project must include the following information in an annual report to the subscribers of the 
12.6 	community access project and the utility:
12.7 	(1) a description of the process by which subscribers can provide input to solar garden 
12.8 	policy and decision-making;
12.9 	(2) the amount of revenues received by the solar garden in the previous year that were 
12.10 	allocated to categories that include but are not limited to operating costs, debt service, profits 
12.11 	distributed to subscribers, and profits distributed to others; and
12.12 	(3) an analysis of the proportion of subscribers that are low- and moderate-income, and 
12.13 	a description of one or more of the following methods used to calculate that proportion:
12.14 	(i) income verification by subscribers;
12.15 	(ii) subscriber evidence that the subscriber or a member of the subscriber's household 
12.16 	receives assistance from any of the following sources:
12.17 	(A) the low-income home energy assistance program;
12.18 	(B) Section 8 housing assistance;
12.19 	(C) medical assistance;
12.20 	(D) the Supplemental Nutrition Assistance Program; or
12.21 	(E) the National School Lunch Program;
12.22 	(iii) characterization of the census tract in which the subscriber resides as low- or 
12.23 	moderate-income by the Federal Financial Institutions Examination Council; or
12.24 	(iv) other methods approved by the commission.
12.25 		Subd. 9.Commission order. Within 180 days of the effective date of this act, the 
12.26 	commission must issue an order incorporating the provisions of this act.

12.27 	EFFECTIVE DATE. Subdivisions 4 and 5 are effective January 1, 2020. Subdivisions 
12.28 	1 to 3 and 6 to 9 are effective the day following final enactment.

13.1 	Sec. 7. [216B.1643] SOLAR GARDEN GRANT PROGRAM FOR LOW-INCOME 
13.2 	HOUSEHOLDS.
13.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
13.4 	the meanings given them.
13.5 	(b) "Eligible entity" means a community action agency, as defined in section 256E.31, 
13.6 	a tribal or county governmental agency, or a non-profit governmental organization that 
13.7 	administers low-income energy programs for the Department of Commerce.
13.8 	(c) "Income-eligible residential household" means a household with an annual income 
13.9 	that is (1) 50 percent or less of the state median income, or (2) 200 percent or less of the 
13.10 	federal poverty level.
13.11 	(d) "Solar garden" has the meaning given in section 216B.1641.
13.12 		Subd. 2.Establishment; purpose. A solar garden grant program for income-eligible 
13.13 	residential households is established in the Department of Commerce to award grants that 
13.14 	promote the development of solar gardens for income-eligible residential households. Funds 
13.15 	in the account are reserved for the purpose of this section and do not lapse.
13.16 		Subd. 3.Eligibility. (a) A solar garden owner is eligible to receive a grant under this 
13.17 	section if:
13.18 	(1) the new solar garden capacity is 500 kilowatts or less;
13.19 	(2) all of the solar garden subscribers are income-eligible residential households, as 
13.20 	defined through a yearly application provided by the Department of Commerce; and
13.21 	(3) the solar garden is operated by an eligible entity or by a third party performing the 
13.22 	duties under a contract with an eligible entity.
13.23 	(b) An eligible entity is responsible for managing the solar garden and must annually 
13.24 	certify to the commissioner that the solar garden complies with paragraph (a).
13.25 		Subd. 4.Application process; content. (a) An eligible applicant must submit an 
13.26 	application to the commissioner on a form designated by the commissioner. The 
13.27 	commissioner must develop administrative procedures that govern the application, grant 
13.28 	award process, and ongoing solar garden management requirements.
13.29 	(b) An application for a grant under this section must include:
13.30 	(1) evidence that the solar garden meets the eligibility requirements under subdivision 
13.31 	3; and
14.1 	(2) any other information requested by the commissioner.
14.2 		Subd. 5.Limitations. A grant awarded under this section must not exceed 60 percent 
14.3 	of the total cost to develop the community solar garden.
14.4 		Subd. 6.Eligible expenditures. Grants awarded under this section may be expended to 
14.5 	(1) finance, purchase, and install facilities necessary to operate a solar garden, and (2) pay 
14.6 	reasonable expenses incurred by the department to administer the program and certify 
14.7 	applicant eligibility on an ongoing basis.

14.8 	Sec. 8. Minnesota Statutes 2018, section 216B.1645, subdivision 1, is amended to read:
14.9 		Subdivision 1.Commission authority. Upon the petition of a public utility, the Public 
14.10 	Utilities Commission shall approve or disapprove power purchase contracts, investments, 
14.11 	or expenditures entered into or made by the utility to satisfy the wind and biomass mandates 
14.12 	contained in sections 216B.169, 216B.2423, and 216B.2424, and to satisfy the renewable 
14.13 	energy objectives and standards set forth in section 216B.1691, including reasonable 
14.14 	investments and expenditures, net of revenues, made to:
14.15 	(1) transmit the electricity generated from sources developed under those sections that 
14.16 	is ultimately used to provide service to the utility's retail customers, including studies 
14.17 	necessary to identify new transmission facilities needed to transmit electricity to Minnesota 
14.18 	retail customers from generating facilities constructed to satisfy the renewable energy 
14.19 	objectives and standards, provided that the costs of the studies have not been recovered 
14.20 	previously under existing tariffs and the utility has filed an application for a certificate of 
14.21 	need or for certification as a priority project under section 216B.2425 for the new 
14.22 	transmission facilities identified in the studies;
14.23 	(2) provide storage facilities for renewable energy generation facilities that contribute 
14.24 	to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or
14.25 	(3) develop renewable energy sources from the account required in section 116C.779.

14.26 	Sec. 9. Minnesota Statutes 2018, section 216B.1645, subdivision 2, is amended to read:
14.27 		Subd. 2.Cost recovery. The expenses incurred by the utility over the duration of the 
14.28 	approved contract or useful life of the investment and, expenditures made pursuant to section 
14.29 	116C.779shall be, and employment of local workers to construct and maintain generation 
14.30 	facilities that supply power to the utility's customers are recoverable from the ratepayers of 
14.31 	the utility, to the extent they are not offset by utility revenues attributable to the contracts, 
14.32 	investments, or expenditures. Upon petition by a public utility, the commission shall approve 
15.1 	or approve as modified a rate schedule providing for the automatic adjustment of charges 
15.2 	to recover the expenses or costs approved by the commission under subdivision 1, which, 
15.3 	in the case of transmission expenditures, are limited to the portion of actual transmission 
15.4 	costs that are directly allocable to the need to transmit power from the renewable sources 
15.5 	of energy. The commission may not approve recovery of the costs for that portion of the 
15.6 	power generated from sources governed by this section that the utility sells into the wholesale 
15.7 	market.

15.8 	Sec. 10. Minnesota Statutes 2018, section 216B.1691, subdivision 1, is amended to read:
15.9 		Subdivision 1.Definitions. (a) Unless otherwise specified in law, "eligible energy 
15.10 	technology" means an energy technology that generates electricity from the following 
15.11 	renewable energy sources:
15.12 	(1) solar;
15.13 	(2) wind;
15.14 	(3) hydroelectric with a capacity of less than 100 megawatts;
15.15 	(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from 
15.16 	the resources listed in this paragraph; or
15.17 	(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester 
15.18 	system; the predominantly organic components of wastewater effluent, sludge, or related 
15.19 	by-products from publicly owned treatment works, but not including incineration of 
15.20 	wastewater sludge to produce electricity; and an energy recovery facility used to capture 
15.21 	the heat value of mixed municipal solid waste or refuse-derived fuel from mixed municipal 
15.22 	solid waste as a primary fuel.
15.23 	(b) "Electric utility" means a public utility providing electric service, a generation and 
15.24 	transmission cooperative electric association, a municipal power agency, or a power district.
15.25 	(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by 
15.26 	an electric utility to retail customers of the electric utility or to a distribution utility for 
15.27 	distribution to the retail customers of the distribution utility. "Total retail electric sales" 
15.28 	does not include the sale of hydroelectricity supplied by a federal power marketing 
15.29 	administration or other federal agency, regardless of whether the sales are directly to a 
15.30 	distribution utility or are made to a generation and transmission utility and pooled for further 
15.31 	allocation to a distribution utility.
16.1 	(d) "Carbon-free" means a technology that generates electricity without emitting carbon 
16.2 	dioxide.

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

16.4 	Sec. 11. Minnesota Statutes 2018, section 216B.1691, subdivision 2b, is amended to read:
16.5 		Subd. 2b.Modification or delay of standard. (a) The commission shall modify or delay 
16.6 	the implementation of a standard obligation, in whole or in part, if the commission determines 
16.7 	it is in the public interest to do so. The commission, when requested to modify or delay 
16.8 	implementation of a standard, must consider:
16.9 	(1) the impact of implementing the standard on its customers' utility costs, including the 
16.10 	economic and competitive pressure on the utility's customers;
16.11 	(2) the environmental costs incurred as a result of a delay or modification, based on the 
16.12 	environmental cost values established in section 216B.2422, subdivision 3;
16.13 	(3) the effects of implementing the standard on the reliability of the electric system;
16.14 	(3) (4) technical advances or technical concerns;
16.15 	(4) (5) delays in acquiring sites or routes due to rejection or delays of necessary siting 
16.16 	or other permitting approvals;
16.17 	(5) (6) delays, cancellations, or nondelivery of necessary equipment for construction or 
16.18 	commercial operation of an eligible energy technology facility;
16.19 	(6) (7) transmission constraints preventing delivery of service; and
16.20 	(7) (8) other statutory obligations imposed on the commission or a utility.
16.21 	(b) The commission may modify or delay implementation of a standard obligation under 
16.22 	paragraph (a), clauses (1) to (3) (4), only if it finds implementation would cause significant 
16.23 	rate impact, requires significant measures to address reliability, would cause significant 
16.24 	environmental costs, or raises significant technical issues. The commission may modify or 
16.25 	delay implementation of a standard obligation under paragraph (a), clauses (4) (5) to (6)
16.26 	(7), only if it finds that the circumstances described in those clauses were due to 
16.27 	circumstances beyond an electric utility's control and make compliance not feasible.
16.28 	(c) When evaluating transmission capacity constraints under paragraph (a), clause (7), 
16.29 	the commission must consider:
16.30 	(1) whether the utility has, in a timely fashion, undertaken reasonable measures under 
16.31 	its control and consistent with its obligations under local, state, and federal laws and 
17.1 	regulations, and its obligations as a member of the Midcontinent Independent System 
17.2 	Operator, to acquire sites, necessary permit approvals, and necessary equipment to develop 
17.3 	and construct new transmission lines or upgrade existing transmission lines to transmit 
17.4 	electricity generated by eligible energy technologies; and
17.5 	(2) whether the utility has taken all reasonable operational measures to maximize 
17.6 	cost-effective electricity delivery from eligible energy technologies in advance of 
17.7 	transmission availability.
17.8 	(b) (d) When considering whether to delay or modify implementation of a standard 
17.9 	obligation, the commission must give due consideration to a preference for electric generation 
17.10 	through use of eligible energy technology and to the achievement of the standards set by 
17.11 	this section.
17.12 	(c) (e) An electric utility requesting a modification or delay in the implementation of a 
17.13 	standard must file a plan to comply with its standard obligation in the same proceeding that 
17.14 	it is requesting the delay.

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

17.16 	Sec. 12. Minnesota Statutes 2018, section 216B.1691, is amended by adding a subdivision 
17.17 	to read:
17.18 		Subd. 2g.Carbon-free standard. By 2050, 100 percent of the electricity each electric 
17.19 	utility subject to subdivision 2a directly provides to Minnesota retail customers, or indirectly 
17.20 	provides through wholesale sales to a distribution utility serving Minnesota retail customers, 
17.21 	must be generated by a technology that is carbon-free.

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

17.23 	Sec. 13. Minnesota Statutes 2018, section 216B.1691, subdivision 9, is amended to read:
17.24 		Subd. 9.Local benefits. (a) The commission shall take all reasonable actions within its 
17.25 	statutory authority to ensure this section is implemented to maximize in a manner that 
17.26 	maximizes benefits to all Minnesota citizens, balancing and local workers throughout the 
17.27 	state. Benefits under this subdivision include but are not limited to:
17.28 	(1) the creation of high-quality jobs in Minnesota that pay wages that support families;
17.29 	(2) recognition of the rights of workers to organize and unionize;
17.30 	(3) ensuring workers have the necessary tools, opportunities, and economic assistance 
17.31 	to adapt successfully during the energy transition, particularly in communities that host 
18.1 	retiring power plants or that contain historically marginalized and underrepresented 
18.2 	populations;
18.3 	(4) ensuring all Minnesotans share (i) the benefits of clean and renewable energy, and 
18.4 	(ii) the opportunity to participate fully in the clean energy economy;
18.5 	(5) ensuring air emissions are reduced in communities historically burdened by pollution 
18.6 	and the impacts of climate change; and
18.7 	(6) the provision of affordable electric service to Minnesotans, and particularly to 
18.8 	low-income consumers.
18.9 	(b) The commission must also implement this section in a manner that balances factors 
18.10 	such as local ownership of or participation in energy production, local job impacts,
18.11 	development and ownership of eligible energy technology facilities by independent power 
18.12 	producers, Minnesota utility ownership of eligible energy technology facilities, the costs 
18.13 	of energy generation to satisfy the renewable standard and carbon-free standards, and the 
18.14 	reliability of electric service to Minnesotans.

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

18.16 	Sec. 14. [216B.1697] ENERGY STORAGE SYSTEM; APPLICATION.
18.17 		Subdivision 1.Definition. For the purposes of this section, "energy storage system" 
18.18 	means a commercially available technology that uses mechanical, chemical, or thermal 
18.19 	processes to:
18.20 	(1) store energy and deliver the stored energy for use at a later time; or
18.21 	(2) store thermal energy for direct use for heating or cooling at a later time in a manner 
18.22 	that reduces the demand for electricity at the later time.
18.23 		Subd. 2.Application requirement. No later than January 1, 2021, each public utility 
18.24 	providing retail electric service in Minnesota must submit to the commission for review 
18.25 	and approval an application to install one or more energy storage systems.
18.26 		Subd. 3.Application contents. (a) Each application submitted under this section must 
18.27 	contain the following information:
18.28 	(1) technical specifications of the energy storage system, including but not limited to:
18.29 	(i) the maximum amount of electric output that the energy storage system can provide;
18.30 	(ii) the length of time the energy storage system can sustain its maximum output;
19.1 	(iii) the location of the project and a description of the analysis conducted to determine 
19.2 	the location;
19.3 	(iv) the needs of the public utility's electric system the proposed energy storage system 
19.4 	addresses;
19.5 	(v) a description of the types of services the energy storage system is expected to provide; 
19.6 	and
19.7 	(vi) a description of the technology required to construct, operate, and maintain the 
19.8 	energy storage system, including any data or communication system necessary to operate 
19.9 	the energy storage system;
19.10 	(2) the estimated cost of the project, including:
19.11 	(i) capital costs;
19.12 	(ii) the estimated cost per unit of energy delivered by the energy storage system; and
19.13 	(iii) an evaluation of the energy storage system's cost-effectiveness;
19.14 	(3) the estimated benefits of the energy storage system to the public utility's electric 
19.15 	system, including but not limited to:
19.16 	(i) deferred investments in generation, transmission, or distribution capacity;
19.17 	(ii) reduced need for electricity during times of peak demand;
19.18 	(iii) improved reliability of the public utility's transmission or distribution system; and
19.19 	(iv) improved integration of the public utility's renewable energy resources;
19.20 	(4) how the addition of an energy storage system complements proposed actions of the 
19.21 	public utility described in its most recent integrated resource plan submitted under section 
19.22 	216B.2422, to meet expected demand with the lowest-cost combination of resources; and
19.23 	(5) any additional information required by the commission.
19.24 	(b) A public utility must include in its application an evaluation of the potential to store 
19.25 	energy in the public utility's electric system, and must identify geographic areas in the public 
19.26 	utility's service area where the deployment of energy storage systems has the greatest 
19.27 	potential to achieve the economic benefits identified in paragraph (a), clause (3).
19.28 		Subd. 4.Commission review. The commission must review each proposal submitted 
19.29 	under this section, and may approve, reject, or modify the proposal. The commission must 
19.30 	approve a proposal it determines is in the public interest and reasonably balances the value 
19.31 	derived from the deployment of an energy storage system for ratepayers and the public 
20.1 	utility's operations with the costs of procuring, constructing, operating, and maintaining the 
20.2 	energy storage system.
20.3 		Subd. 5.Cost recovery. A public utility may recover from ratepayers all costs prudently 
20.4 	incurred by the public utility to deploy an energy storage system approved by the commission 
20.5 	under this section, net of any revenues generated by the operation of the energy storage 
20.6 	system.
20.7 		Subd. 6.Commission authority; orders. The commission may issue orders necessary 
20.8 	to implement and administer this section.

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

20.10 	Sec. 15. [216B.1698] INNOVATIVE CLEAN TECHNOLOGIES.
20.11 	(a) For purposes of this section, "innovative clean technology" means advanced energy 
20.12 	technology that is:
20.13 	(1) environmentally superior to technologies currently in use;
20.14 	(2) expected to offer energy-related, environmental, or economic benefits; and
20.15 	(3) not widely deployed by the utility industry.
20.16 	(b) A public utility may petition the commission for authorization to invest in a project 
20.17 	or projects to deploy one or more innovative clean technologies to further the development, 
20.18 	commercialization, and deployment of innovative clean technologies for the benefit of utility 
20.19 	customers.
20.20 	(c) The commission may approve a petition under paragraph (b) if it finds:
20.21 	(1) the technologies proposed to be deployed are innovative clean technologies;
20.22 	(2) the utility is meeting its energy conservation goals under section 216B.241; and
20.23 	(3) the petition does not result in a utility spending greater than $5,000,000 per year on 
20.24 	innovative clean technologies under this section.
20.25 	(d) The commission may also permit a public utility to file rate schedules containing 
20.26 	provisions to automatically adjust charges for public utility service in direct relation to 
20.27 	changes in prudent costs incurred by a utility under this section, up to $5,000,000 each year. 
20.28 	To the extent the utility investment under this section is for a capital asset, the utility may 
20.29 	request that the asset be included in the utility's rate base.

21.1 	Sec. 16. Minnesota Statutes 2018, section 216B.2401, is amended to read:
21.2 	216B.2401 ENERGY SAVINGS AND OPTIMIZATION POLICY GOAL.
21.3 	(a) The legislature finds that energy savings are an energy resource, and that cost-effective 
21.4 	energy savings are preferred over all other energy resources. In addition, the legislature 
21.5 	finds that optimizing when and how energy consumers manage energy use can provide 
21.6 	significant benefits to the consumers and to the utility system as a whole. The legislature 
21.7 	further finds that cost-effective energy savings and load management programs should be 
21.8 	procured systematically and aggressively in order to reduce utility costs for businesses and 
21.9 	residents, improve the competitiveness and profitability of businesses, create more 
21.10 	energy-related jobs, reduce the economic burden of fuel imports, and reduce pollution and 
21.11 	emissions that cause climate change. Therefore, it is the energy policy of the state of 
21.12 	Minnesota to achieve annual energy savings equal equivalent to at least 1.5 2.5 percent of 
21.13 	annual retail energy sales of electricity and natural gas through cost-effective energy 
21.14 	conservation improvement programs and rate design, energy efficiency achieved by energy 
21.15 	consumers without direct utility involvement, energy codes and appliance standards, programs 
21.16 	designed to transform the market or change consumer behavior, energy savings resulting 
21.17 	from efficiency improvements to the utility infrastructure and system, and other efforts to 
21.18 	promote energy efficiency and energy conservation. multiple means, including but not 
21.19 	limited to:
21.20 	(1) cost-effective energy conservation improvement programs and efficient fuel-switching 
21.21 	utility programs under sections 216B.2402 to 216B.241;
21.22 	(2) rate design;
21.23 	(3) energy efficiency achieved by energy consumers without direct utility involvement;
21.24 	(4) advancements in statewide energy codes and cost-effective appliance and equipment 
21.25 	standards;
21.26 	(5) programs designed to transform the market or change consumer behavior;
21.27 	(6) energy savings resulting from efficiency improvements to the utility infrastructure 
21.28 	and system; and
21.29 	(7) other efforts to promote energy efficiency and energy conservation.
21.30 	(b) A utility is encouraged to design and offer to its customers load management programs 
21.31 	that enable (1) customers to maximize the economic value gained from the energy purchased 
21.32 	from the customer's utility service provider, and (2) utilities to optimize the infrastructure 
21.33 	and generation capacity needed to effectively serve customers and facilitate the integration 
22.1 	of renewable energy into the energy system. The commissioner must provide a reasonable 
22.2 	estimate for progress toward this statewide energy-savings goal in the annual report required 
22.3 	under section 216B.241, subdivision 1c, along with recommendations for administrative or 
22.4 	legislative initiatives to increase energy savings toward that goal. The commissioner must 
22.5 	also annually report on the energy productivity of the state's economy by providing an 
22.6 	estimate of the ratio of economic output produced in a previous year to the primary energy 
22.7 	inputs used in the current year.

22.8 	Sec. 17. [216B.2402] DEFINITIONS.
22.9 	(a) For the purposes of section 216B.16, subdivision 6b, and sections 216B.2401 to 
22.10 	216B.241, the terms defined in this section have the meanings given them.
22.11 	(b) "Consumer-owned utility" means a municipal utility or a cooperative electric 
22.12 	association.
22.13 	(c) "Cumulative lifetime savings" means the total electric energy or natural gas savings 
22.14 	in a given year from energy conservation improvements installed in the given year or in 
22.15 	previous years that are still operational and providing savings because the measures have 
22.16 	not reached the end of the measure's useful life.
22.17 	(d) "Efficient fuel-switching improvement" means a project that (1) converts a customer 
22.18 	from use of a fuel to the use of electric energy or natural gas delivered at retail by a utility 
22.19 	subject to this section, resulting in a net increase in the use of electric energy or natural gas 
22.20 	and a net decrease in source energy consumption on a fuel-neutral basis, and (2) otherwise 
22.21 	meets the criteria established in section 216B.2403, subdivision 8. An efficient fuel-switching 
22.22 	improvement requires the installation of equipment that utilizes electric energy or natural 
22.23 	gas, resulting in a reduction or elimination of use of the previous fuel. An efficient 
22.24 	fuel-switching improvement is not an energy conservation improvement even if it results 
22.25 	in a net reduction in electricity or natural gas.
22.26 	(e) "Energy conservation" means an action that results in a net reduction in electric 
22.27 	energy or natural gas consumption. Energy conservation does not include an efficient 
22.28 	fuel-switching improvement.
22.29 	(f) "Energy conservation improvement" means a project that results in energy efficiency 
22.30 	or energy conservation. Energy conservation improvement may include waste heat that is 
22.31 	recovered and converted into electricity, but does not include electric utility infrastructure 
22.32 	projects approved by the commission under section 216B.1636. Energy conservation 
22.33 	improvement includes waste heat recovered and used as thermal energy.
23.1 	(g) "Energy efficiency" means measures or programs, including energy conservation 
23.2 	measures or programs, that target consumer behavior, equipment, processes, or devices 
23.3 	designed to produce either an absolute decrease in consumption of electric energy or natural 
23.4 	gas or a decrease in consumption of electric energy or natural gas on a per unit of production 
23.5 	basis, without reducing the quality or level of service provided to the energy consumer.
23.6 	(h) "Fuel" means energy consumed by a retail utility customer. Fuel includes electricity, 
23.7 	propane, natural gas, heating oil, gasoline, diesel fuel, or steam.
23.8 	(i) "Fuel neutral" means an approach that compares the use of various fuels for a given 
23.9 	end use, using a common metric.
23.10 	(j) "Gross annual retail energy sales" means the annual electric sales to all retail customers 
23.11 	in a utility's or association's Minnesota service territory or natural gas throughput to all retail 
23.12 	customers, including natural gas transportation customers, on a utility's distribution system 
23.13 	in Minnesota. Gross annual retail energy sales does not include:
23.14 	(1) gas sales to:
23.15 	(i) a large energy facility;
23.16 	(ii) a large customer facility whose natural gas utility has been exempted by the 
23.17 	commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to natural 
23.18 	gas sales made to the large customer facility; and
23.19 	(iii) a commercial gas customer facility whose natural gas utility has been exempted by 
23.20 	the commissioner under section 216B.241, subdivision 1a, paragraph (c), with respect to 
23.21 	natural gas sales made to the commercial gas customer facility; or
23.22 	(2) electric sales to a large customer facility whose electric utility has been exempted 
23.23 	by the commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect 
23.24 	to electric sales made to the large facility.
23.25 	(k) "Investments and expenses of a public utility" means the investments and expenses 
23.26 	incurred by a public utility in connection with an energy conservation improvement.
23.27 	(l) "Large customer facility" means all buildings, structures, equipment, and installations 
23.28 	at a single site that collectively (1) impose a peak electrical demand on an electric utility's 
23.29 	system of at least 20,000 kilowatts, measured in the same way as the utility that serves the 
23.30 	customer facility measures electric demand for billing purposes, or (2) consume at least 
23.31 	500,000,000 cubic feet of natural gas annually. When calculating peak electrical demand, 
23.32 	a large customer facility may include demand offset by on-site cogeneration facilities and, 
24.1 	if engaged in mineral extraction, may aggregate peak energy demand from the large customer 
24.2 	facility's mining processing operations.
24.3 	(m) "Large energy facility" has the meaning given in section 216B.2421, subdivision 2, 
24.4 	clause (1).
24.5 	(n) "Lifetime energy savings" means the amount of savings a particular energy 
24.6 	conservation improvement produces over the improvement's effective useful lifetime.
24.7 	(o) "Load management" means an activity, service, or technology to change the timing 
24.8 	or the efficiency of a customer's use of energy that allows a utility or a customer to (1) 
24.9 	respond to local and regional energy system conditions, or (2) reduce peak demand for 
24.10 	electric energy or natural gas. Load management that reduces the customer's net annual 
24.11 	energy consumption is also energy conservation.
24.12 	(p) "Low-income household" means a household whose household income is 60 percent 
24.13 	or less of the state median household income.
24.14 	(q) "Low-income programs" means energy conservation improvement programs that 
24.15 	directly serve the needs of low-income persons, including low-income renters. Multifamily 
24.16 	buildings of five units or more that are rented by low-income persons are eligible to be 
24.17 	served through low-income programs, which may include upgrading appliances, upgrading 
24.18 	heating and air conditioning equipment, and building envelope improvements.
24.19 	(r) "Member" has the meaning given in section 308B.005, subdivision 15.
24.20 	(s) "Qualifying utility" means a utility that supplies a customer with energy that enables 
24.21 	the customer to qualify as a large customer facility.
24.22 	(t) "Source energy" means the total amount of fuel required for a given purpose, 
24.23 	considering energy losses in the production, transmission, and delivery of the energy.
24.24 	(u) "Waste heat recovered and used as thermal energy" means capturing heat energy 
24.25 	that would be exhausted or dissipated to the environment from machinery, buildings, or 
24.26 	industrial processes, and productively using the recovered thermal energy where it was 
24.27 	captured or distributing it as thermal energy to other locations where it is used to reduce 
24.28 	demand-side consumption of natural gas, electric energy, or both.
24.29 	(v) "Waste heat recovery converted into electricity" means an energy recovery process 
24.30 	that converts otherwise lost energy from the heat of exhaust stacks or pipes used for engines 
24.31 	or manufacturing or industrial processes, or the reduction of high pressure in water or gas 
24.32 	pipelines.

25.1 	Sec. 18. [216B.2403] CUSTOMER-OWNED UTILITIES; ENERGY 
25.2 	CONSERVATION AND OPTIMIZATION.
25.3 		Subdivision 1.Applicability. This section applies to:
25.4 	(1) a cooperative electric association that provides retail service to more than 5,000 
25.5 	members;
25.6 	(2) a municipality that provides electric service to more than 1,000 retail customers; and
25.7 	(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales 
25.8 	to natural gas retail customers.
25.9 		Subd. 2.Consumer-owned utility; energy-savings goal. (a) Each individual 
25.10 	consumer-owned utility subject to this section has an annual energy-savings goal equivalent 
25.11 	to 1.5 percent of gross annual retail energy sales. The annual energy-savings goal must be 
25.12 	met with a minimum of energy savings from energy conservation improvements equivalent 
25.13 	to at least one percent of the consumer-owned utility's gross annual retail energy sales. The 
25.14 	balance of energy savings toward the annual energy-savings goal must be achieved by the 
25.15 	following utility activities:
25.16 	(1) energy savings from additional energy conservation improvements;
25.17 	(2) electric utility infrastructure projects, as defined in section 216B.1636, subdivision 
25.18 	1; or
25.19 	(3) net energy savings from efficient fuel-switching improvements that meet the criteria 
25.20 	under subdivision 8.
25.21 	(b) Nothing in this section limits a utility's ability to report and recognize savings from 
25.22 	activities under paragraph (a), clauses (2) and (3), in excess of the utility's annual energy 
25.23 	savings, provided the utility has met the minimum energy-savings goal from energy 
25.24 	conservation improvements.
25.25 	(c) The energy-savings goals specified in this section must be calculated based on the 
25.26 	most recent three-year, weather-normalized average. A consumer-owned utility that elects 
25.27 	to file annual plans may carry forward for up to three years any energy savings in excess 
25.28 	of its 1.5 percent energy-savings goal in a single year.
25.29 	(d) A consumer-owned utility subject to this section is not required to make energy 
25.30 	conservation improvements that are not cost-effective, even if the improvement is necessary 
25.31 	to attain the energy-savings goal. A consumer-owned utility subject to this section must 
25.32 	make reasonable efforts to implement energy conservation improvements above the minimum 
26.1 	level set under this subdivision if cost-effective opportunities and utility funding are available, 
26.2 	considering other potential investments the utility plans to make for the benefit of customers 
26.3 	during the term of the plan filed under subdivision 4.
26.4 	(e) A consumer-owned utility may request that the commissioner adjust its minimum 
26.5 	goal for energy savings from energy conservation improvements specified under paragraph 
26.6 	(a) for the period of the plan filed under subdivision 4. The request must be made by January 
26.7 	1 of a year when the utility must file a plan under subdivision 4. The request must be based 
26.8 	on:
26.9 	(1) historical energy conservation improvement program achievements;
26.10 	(2) customer class makeup;
26.11 	(3) projected load growth;
26.12 	(4) an energy conservation potential study that estimates the amount of cost-effective 
26.13 	energy conservation potential that exists in the utility's service territory;
26.14 	(5) the cost-effectiveness and quality of the energy conservation programs offered by 
26.15 	the utility; and
26.16 	(6) other factors the commissioner and consumer-owned utility determine warrant an 
26.17 	adjustment.
26.18 	The commissioner must adjust the savings goal to a level the commissioner determines is 
26.19 	supported by the record, but must not approve a minimum energy-savings goal from energy 
26.20 	conservation improvements that is less than one percent of gross annual retail energy sales.
26.21 		Subd. 3.Consumer-owned utility; energy savings investments. (a) Each cooperative 
26.22 	electric association and municipality subject to subdivision 2 must spend and invest in the 
26.23 	following amounts for energy conservation improvements under this subdivision:
26.24 	(1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas 
26.25 	and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross 
26.26 	operating revenues from electric and gas service provided in Minnesota to large electric 
26.27 	customer facilities; and
26.28 	(2) for a cooperative electric association, 1.5 percent of its gross operating revenues 
26.29 	from service provided in the state, excluding gross operating revenues from service provided 
26.30 	in the state to large electric customer facilities indirectly through a distribution cooperative 
26.31 	electric association.
27.1 	(b) Each municipality and cooperative electric association subject to this subdivision 
27.2 	must identify and implement energy conservation improvement spending and investments 
27.3 	that are appropriate for the municipality or association, except that a municipality or 
27.4 	association must not spend or invest for energy conservation improvements that directly 
27.5 	benefit a large energy facility or a large electric customer facility that the commissioner has 
27.6 	issued an exemption to under section 216B.241, subdivision 1a, paragraph (b).
27.7 		Subd. 4.Consumer-owned utility; energy conservation and optimization plans. (a) 
27.8 	By June 1, 2021, each consumer-owned utility must file with the commissioner an energy 
27.9 	conservation and optimization plan that describes the programs for energy conservation, 
27.10 	efficient fuel-switching improvements and load management programs, and other processes 
27.11 	and programs the utility plans to use to achieve its energy-savings goal. The plan may cover 
27.12 	a period not to exceed two years. The plan must provide an analysis of the cost-effectiveness 
27.13 	of the consumer-owned utility's programs offered under the plan, using a list of baseline 
27.14 	energy- and capacity-savings assumptions developed in consultation with the department. 
27.15 	An individual utility program may combine elements of energy conservation, load 
27.16 	management, or efficient fuel-switching. Plans received by June 1 must be evaluated by the 
27.17 	commissioner based on how well the plan meets the goals set under subdivision 2 by 
27.18 	December 1 of the same year, including the commissioner's assessment of whether the plan 
27.19 	is likely to achieve the goals. Beginning June 1, 2022, and every June 1 thereafter, each 
27.20 	consumer-owned utility must file: (1) an annual update identifying the status of its annual 
27.21 	plan filed under this subdivision, including (i) total expenditures and investments made to 
27.22 	date, and (ii) any intended changes to the plan; and (2) a summary of the annual 
27.23 	energy-savings achievements under a completed plan and a new plan that complies with 
27.24 	this section.
27.25 	(b) In the filings required under paragraph (a), the consumer-owned utility must describe 
27.26 	and evaluate the programs offered by the utility under the plan, including:
27.27 	(1) energy conservation improvements in the previous period and its progress toward 
27.28 	the minimum energy-savings goal from energy conservation improvements described in 
27.29 	subdivision 2, including accounting for lifetime savings and cumulative lifetime energy 
27.30 	savings under the plan. The evaluation must briefly describe each conservation program 
27.31 	the utility offers or plans to offer, and must specify the energy savings or increased efficiency 
27.32 	in the use of energy within the service territory of the utility that is the result of the program. 
27.33 	The commissioner must review each evaluation and make recommendations, where 
27.34 	appropriate, to the consumer-owned utility to increase the effectiveness of conservation 
27.35 	improvement activities. The commissioner must consider and may require a consumer-owned 
28.1 	utility to undertake a cost-effective program suggested by an outside source, including a 
28.2 	political subdivision, nonprofit corporation, or community organization;
28.3 	(2) load management activities, including an analysis of the reduction in peak load 
28.4 	resulting from the program and an assessment of the cost-effectiveness of each program; 
28.5 	and
28.6 	(3) efficient fuel-switching improvement activities, including an analysis regarding how 
28.7 	each program meets the criteria specified in subdivision 8 and an assessment of the 
28.8 	cost-effectiveness of each program. For improvements requiring the deployment of electric 
28.9 	technologies, the plan must also provide an analysis regarding how the fuel-switching 
28.10 	improvement is operated in order to facilitate the integration of variable renewable energy 
28.11 	into the electric system.
28.12 	(c) When evaluating the cost-effectiveness of utility programs, the consumer-owned 
28.13 	utility and the commissioner must consider the costs and benefits to ratepayers, the utility, 
28.14 	participants, and society. In addition, the commissioner must consider the rate at which the 
28.15 	consumer-owned utility is increasing its energy savings and expenditures on energy 
28.16 	conservation, as well as the lifetime energy savings and cumulative energy savings of the 
28.17 	consumer-owned utility.
28.18 	(d) Each consumer-owned utility subject to this subdivision may annually spend and 
28.19 	invest up to ten percent of the total amount spent and invested on energy conservation 
28.20 	improvements under this subdivision on research and development projects that meet the 
28.21 	definition of energy conservation improvement and that are funded directly by the 
28.22 	consumer-owned utility.
28.23 	(e) A generation and transmission cooperative electric association or municipal power 
28.24 	agency that provides energy services to consumer-owned utilities may invest in energy 
28.25 	conservation improvements on behalf of consumer-owned utilities it serves and may fulfill 
28.26 	the conservation, reporting, and energy-savings goals for any of those consumer-owned 
28.27 	utilities on an aggregate basis. For consumer-owned utilities electing to aggregate services 
28.28 	under this paragraph, multiyear plans up to three years may be filed with the department 
28.29 	under subdivision 3 activities with continued annual performance reporting.
28.30 	(f) A consumer-owned utility is prohibited from spending for or investing in energy 
28.31 	conservation improvements that directly benefit a large energy facility or a large electric 
28.32 	customer facility the commissioner has issued an exemption to under section 216B.241, 
28.33 	subdivision 1a.
29.1 	(g) The energy conservation and optimization plan of each consumer-owned utility 
29.2 	subject to this section must have a component focused on improving the energy efficiency 
29.3 	in the public schools served by the utility. At a minimum, the efficiency in schools component 
29.4 	must consist of programs to update lighting in the school, update the heating and cooling 
29.5 	systems of the school, provide for building recommissioning, provide building operator 
29.6 	training, and provide opportunities to educate students, teachers, and staff regarding energy 
29.7 	efficiency measures implemented at that school, including associated benefits for improved 
29.8 	learning resulting from the measures.
29.9 		Subd. 5.Low-income programs. (a) Each consumer-owned utility subject to this section 
29.10 	must provide energy conservation programs to low-income households. The commissioner 
29.11 	must evaluate a utility's plans under this section, considering the utility's historic spending 
29.12 	and participation levels, energy savings for low-income programs, and the number of 
29.13 	low-income persons residing in the utility's service territory. A municipal utility that furnishes 
29.14 	gas service must spend at least 0.4 percent of its most recent three-year average gross 
29.15 	operating revenue from residential customers in Minnesota on low-income programs. A 
29.16 	consumer-owned utility that furnishes electric service must spend at least 0.4 percent of its 
29.17 	gross operating revenue from residential customers in Minnesota on low-income programs. 
29.18 	This requirement applies to each generation and transmission cooperative association's 
29.19 	members' aggregate gross operating revenue from the sale of electricity to residential 
29.20 	customers in Minnesota.
29.21 	(b) To meet the requirements of paragraph (a), a consumer-owned utility may contribute 
29.22 	money to the energy and conservation account in section 216B.241, subdivision 2a. An 
29.23 	energy conservation improvement plan must state the amount, if any, of low-income energy 
29.24 	conservation improvement funds the utility plans to contribute to the energy and conservation 
29.25 	account. Contributions must be remitted to the commissioner by February 1 each year.
29.26 	(c) The commissioner must establish low-income programs to use money contributed 
29.27 	to the energy and conservation account under paragraph (b). When establishing low-income 
29.28 	programs, the commissioner must consult political subdivisions, utilities, and nonprofit and 
29.29 	community organizations, including organizations engaged in providing energy and 
29.30 	weatherization assistance to low-income households. Money contributed to the energy and 
29.31 	conservation account under paragraph (b) must provide programs for low-income households, 
29.32 	including low-income renters, located in the service territory of the utility or association 
29.33 	providing the money. The commissioner must record and report expenditures and energy 
29.34 	savings achieved as a result of low-income programs funded through the energy and 
29.35 	conservation account in the report required under section 216B.241, subdivision 1c, paragraph 
30.1 	(g). The commissioner may contract with a political subdivision, nonprofit or community 
30.2 	organization, public utility, municipality, or cooperative electric association to implement 
30.3 	low-income programs funded through the energy and conservation account.
30.4 	(d) A consumer-owned utility may petition the commissioner to modify its required 
30.5 	spending under this subdivision if the utility and the commissioner were unable to expend 
30.6 	the amount required for three consecutive years.
30.7 	(e) For purposes of this subdivision, "multifamily building" means a residential building 
30.8 	with five or more dwelling units. Notwithstanding the definition of low-income household 
30.9 	in section 216B.2402, for purposes of determining eligibility for multifamily buildings in 
30.10 	low-income programs, a utility or association may use one or more of the following:
30.11 	(1) information demonstrating a multifamily building's units are rented to households 
30.12 	meeting one of the following criteria:
30.13 	(i) household income at or below 200 percent of federal poverty level;
30.14 	(ii) household income at or below 60 percent of area median income;
30.15 	(iii) occupancy within a building that is certified on the Low Income Rental Classification 
30.16 	(LIRC) Assessor Report compiled annually by the Minnesota Housing Finance Agency; or
30.17 	(iv) occupancy within a building that has a declaration against the property requiring 
30.18 	that a portion of the units are rented to tenants with an annual household income less than 
30.19 	or equal to 60 percent of area median income;
30.20 	(2) a property's participation in an affordable housing program, including low-income 
30.21 	housing tax credits (LIHTC), United States Department of Housing and Urban Development 
30.22 	(HUD) assistance, United States Department of Agriculture (USDA) assistance, Minnesota 
30.23 	Housing Finance Agency assistance, or local tax abatement for low-income properties; or
30.24 	(3) documentation demonstrating that the property is on the waiting list for or currently 
30.25 	participating in the United States Department of Energy Weatherization Assistance Program.
30.26 		Subd. 6.Recovery of expenses. The commission must allow a cooperative electric 
30.27 	association subject to rate regulation under section 216B.026 to recover expenses resulting 
30.28 	from (1) a plan under this subdivision, and (2) assessments and contributions to the energy 
30.29 	and conservation account under section 216B.241, subdivision 2a.
30.30 		Subd. 7.Ownership of energy conservation improvement. An energy conservation 
30.31 	improvement to or installed in a building under this section, excluding a system owned by 
30.32 	the consumer-owned utility that is designed to turn off, limit, or vary the delivery of energy, 
31.1 	is the exclusive property of the building owner, except to the extent that the improvement 
31.2 	is subject to a security interest in favor of the utility in case of a loan to the building owner.
31.3 		Subd. 8.Criteria for efficient fuel-switching improvements. A fuel-switching 
31.4 	improvement is deemed efficient if the commissioner finds the improvement, relative to 
31.5 	the fuel being displaced:
31.6 	(1) results in a net reduction in the cost and amount of source energy consumed for a 
31.7 	particular use, measured on a fuel-neutral basis;
31.8 	(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section 
31.9 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching  
31.10 	improvement installed by an electric utility, the reduction in emissions must be measured 
31.11 	based on the hourly emissions profile of the utility or the utility's wholesale provider. Where 
31.12 	applicable, the hourly emissions profile used must be the most recent resource plan accepted 
31.13 	by the commission under section 216B.2422;
31.14 	(3) is cost-effective from a societal perspective, considering the costs associated with 
31.15 	both the fuel used in the past and the fuel used in the future; and
31.16 	(4) is installed and operated in a manner that does not unduly increase the utility's system 
31.17 	peak demand or require significant new investment in utility infrastructure.
31.18 		Subd. 9.Manner of filing and service. (a) A consumer-owned utility must submit the 
31.19 	filings required by this section to the department using the department's electronic filing 
31.20 	system.
31.21 	(b) The submission of a document to the department's electronic filing system constitutes 
31.22 	service on the department. If a department rule requires service of a notice, order, or other 
31.23 	document by the department, utility, or interested party upon persons on a service list 
31.24 	maintained by the department, service may be made by personal delivery, mail, or electronic 
31.25 	service. Electronic service may be made only to persons on the service list that have 
31.26 	previously agreed in writing to accept electronic service at an electronic address provided 
31.27 	to the department for electronic service purposes.
31.28 		Subd. 10.Assessment. The commission or department may assess utilities subject to 
31.29 	this section to carry out the purposes of section 216B.241, subdivisions 1d, 1e, and 1f. An 
31.30 	assessment under this paragraph must be proportionate to the utility's respective gross 
31.31 	operating revenue from sales of gas or electric service in Minnesota during the previous 
31.32 	calendar year. Assessments under this subdivision are not subject to the cap on assessments 
31.33 	under section 216B.62 or any other law.
32.1 		Subd. 11.Waste heat recovery; thermal energy distribution.  Subject to department 
32.2 	approval, demand-side natural gas or electric energy displaced by use of waste heat recovered 
32.3 	and used as thermal energy, including the recovered thermal energy from a cogeneration 
32.4 	or combined heat and power facility, is eligible to be counted toward a consumer-owned 
32.5 	utility's natural gas or electric savings goals.

32.6 	Sec. 19. Minnesota Statutes 2018, section 216B.241, subdivision 1a, is amended to read:
32.7 		Subd. 1a.Investment, expenditure, and contribution; public utility Large customer 
32.8 	facility. (a) For purposes of this subdivision and subdivision 2, "public utility" has the 
32.9 	meaning given it in section 216B.02, subdivision 4. Each public utility shall spend and 
32.10 	invest for energy conservation improvements under this subdivision and subdivision 2 the 
32.11 	following amounts:
32.12 	(1) for a utility that furnishes gas service, 0.5 percent of its gross operating revenues 
32.13 	from service provided in the state;
32.14 	(2) for a utility that furnishes electric service, 1.5 percent of its gross operating revenues 
32.15 	from service provided in the state; and
32.16 	(3) for a utility that furnishes electric service and that operates a nuclear-powered electric 
32.17 	generating plant within the state, two percent of its gross operating revenues from service 
32.18 	provided in the state.
32.19 	For purposes of this paragraph (a), "gross operating revenues" do not include revenues 
32.20 	from large customer facilities exempted under paragraph (b), or from commercial gas 
32.21 	customers that are exempted under paragraph (c) or (e).
32.22 	(b) (a) The owner of a large customer facility may petition the commissioner to exempt 
32.23 	both electric and gas utilities serving the large customer facility from the investment and 
32.24 	expenditure requirements of paragraph (a) a utility's plan under this section or section 
32.25 	216B.2403 with respect to retail revenues attributable to the large customer facility. The 
32.26 	filing must include a discussion of the competitive or economic pressures facing the owner 
32.27 	of the facility and the efforts taken by the owner to identify, evaluate, and implement energy 
32.28 	conservation and efficiency improvements. A filing submitted on or before October 1 of 
32.29 	any year must be approved within 90 days and become effective January 1 of the year 
32.30 	following the filing, unless the commissioner finds that the owner of the large customer 
32.31 	facility has failed to take reasonable measures to identify, evaluate, and implement energy 
32.32 	conservation and efficiency improvements. If a facility qualifies as a large customer facility 
32.33 	solely due to its peak electrical demand or annual natural gas usage, the exemption may be 
33.1 	limited to the qualifying utility if the commissioner finds that the owner of the large customer 
33.2 	facility has failed to take reasonable measures to identify, evaluate, and implement energy 
33.3 	conservation and efficiency improvements with respect to the nonqualifying utility. Once 
33.4 	an exemption is approved, the commissioner may request the owner of a large customer 
33.5 	facility to submit, not more often than once every five years, a report demonstrating the 
33.6 	large customer facility's ongoing commitment to energy conservation and efficiency 
33.7 	improvement after the exemption filing. The commissioner may request such reports for 
33.8 	up to ten years after the effective date of the exemption, unless the majority ownership of 
33.9 	the large customer facility changes, in which case the commissioner may request additional 
33.10 	reports for up to ten years after the change in ownership occurs. The commissioner may, 
33.11 	within 180 days of receiving a report submitted under this paragraph, rescind any exemption 
33.12 	granted under this paragraph upon a determination that the large customer facility is not 
33.13 	continuing to make reasonable efforts to identify, evaluate, and implement energy 
33.14 	conservation improvements. A large customer facility that is, under an order from the 
33.15 	commissioner, exempt from the investment and expenditure requirements of paragraph (a) 
33.16 	as of December 31, 2010, is not required to submit a report to retain its exempt status, except 
33.17 	as otherwise provided in this paragraph with respect to ownership changes. No exempt large 
33.18 	customer facility may participate in a utility conservation improvement program unless the 
33.19 	owner of the facility submits a filing with the commissioner to withdraw its exemption.
33.20 	(c) (b) A commercial gas customer that is not a large customer facility and that purchases 
33.21 	or acquires natural gas from a public utility having fewer than 600,000 natural gas customers 
33.22 	in Minnesota may petition the commissioner to exempt gas utilities serving the commercial 
33.23 	gas customer from the investment and expenditure requirements of paragraph (a)a utility's 
33.24 	plan under this section or section 216B.2403 with respect to retail revenues attributable to 
33.25 	the commercial gas customer. The petition must be supported by evidence demonstrating 
33.26 	that the commercial gas customer has acquired or can reasonably acquire the capability to 
33.27 	bypass use of the utility's gas distribution system by obtaining natural gas directly from a 
33.28 	supplier not regulated by the commission. The commissioner shall grant the exemption if 
33.29 	the commissioner finds that the petitioner has made the demonstration required by this 
33.30 	paragraph.
33.31 	(d) (c) The commissioner may require investments or spending greater than the amounts 
33.32 	required under this subdivision for a public utility whose most recent advance forecast 
33.33 	required under section 216B.2422 or 216C.17 projects a peak demand deficit of 100 
33.34 	megawatts or greater within five years under midrange forecast assumptions.
34.1 	(e) (d) A public utility or owner of a large customer facility may appeal a decision of 
34.2 	the commissioner under paragraph (a) or (b), (c), or (d) to the commission under subdivision 
34.3 	2. In reviewing a decision of the commissioner under paragraph (a) or (b), (c), or (d), the 
34.4 	commission shall rescind the decision if it finds that the required investments or spending 
34.5 	will:
34.6 	(1) not result in cost-effective energy conservation improvements; or
34.7 	(2) otherwise the decision is not be in the public interest.
34.8 	(e) A public utility is prohibited from spending for or investing in energy conservation 
34.9 	improvements that directly benefit a large energy facility or a large electric customer facility 
34.10 	the commissioner has issued an exemption to under this section.

34.11 	Sec. 20. Minnesota Statutes 2018, section 216B.241, subdivision 1c, is amended to read:
34.12 		Subd. 1c.Public utility; energy-saving goals. (a) The commissioner shall establish 
34.13 	energy-saving goals for energy conservation improvement expenditures and shall evaluate 
34.14 	an energy conservation improvement program on how well it meets the goals set.
34.15 	(b) Each individual public utility and association shall have providing electric service 
34.16 	has an annual energy-savings goal equivalent to 1.5 1.75 percent of gross annual retail 
34.17 	energy sales unless modified by the commissioner under paragraph (d) (c). A public utility 
34.18 	providing natural gas service has an annual energy-savings goal equivalent to one percent 
34.19 	of gross annual retail energy sales, which cannot be modified by the commissioner. The 
34.20 	savings goals must be calculated based on the most recent three-year weather-normalized 
34.21 	average. A public utility or association providing electric service may elect to carry forward 
34.22 	energy savings in excess of 1.5 1.75 percent for a year to the succeeding three calendar 
34.23 	years, except that savings from electric utility infrastructure projects allowed under paragraph 
34.24 	(d) may be carried forward for five years. A public utility providing natural gas service may 
34.25 	elect to carry forward energy savings in excess of one percent for a year to the succeeding 
34.26 	three calendar years. A particular energy savings can be used only for one year's goal.
34.27 	(c) The commissioner must adopt a filing schedule that is designed to have all utilities 
34.28 	and associations operating under an energy-savings plan by calendar year 2010.
34.29 	(d) (c) In its energy conservation improvement and optimization plan filing, a public 
34.30 	utility or association may request the commissioner to adjust its annual energy-savings 
34.31 	percentage goal based on its historical conservation investment experience, customer class 
34.32 	makeup, load growth, a conservation potential study, or other factors the commissioner 
34.33 	determines warrants an adjustment. The commissioner may not approve a plan of a public 
35.1 	utility that provides for an annual energy-savings goal of less than one percent of gross 
35.2 	annual retail energy sales from energy conservation improvements.
35.3 	(d) A public utility or association may include in its energy conservation and optimization
35.4 	plan energy savings from electric utility infrastructure projects approved by the commission 
35.5 	under section 216B.1636 or waste heat recovery converted into electricity projects that may 
35.6 	count as energy savings in addition to a minimum energy-savings goal of at least one percent 
35.7 	for energy conservation improvements. Energy savings from electric utility infrastructure 
35.8 	projects, as defined in section 216B.1636, may be included in the energy conservation plan 
35.9 	of a municipal utility or cooperative electric association. Electric utility infrastructure projects 
35.10 	must result in increased energy efficiency greater than that which would have occurred 
35.11 	through normal maintenance activity.
35.12 	(e) An energy-savings goal is not satisfied by attaining the revenue expenditure 
35.13 	requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the 
35.14 	energy-savings goal established in this subdivision.
35.15 	(f) An association or (e) A public utility is not required to make energy conservation 
35.16 	investments to attain the energy-savings goals of this subdivision that are not cost-effective 
35.17 	even if the investment is necessary to attain the energy-savings goals. For the purpose of 
35.18 	this paragraph, in determining cost-effectiveness, the commissioner shall consider the costs 
35.19 	and benefits to ratepayers, the utility, participants, and society. In addition, the commissioner 
35.20 	shall consider the rate at which an association ora municipal utility is increasing its energy 
35.21 	savings and its expenditures on energy conservation, as well as the public utility's lifetime 
35.22 	energy savings and cumulative energy savings.
35.23 	(g)(f) On an annual basis, the commissioner shall produce and make publicly available 
35.24 	a report on the annual energy and capacity savings and estimated carbon dioxide reductions 
35.25 	achieved by the energy conservation improvement programs under this section and section 
35.26 	216B.2403 for the two most recent years for which data is available. The report must also 
35.27 	include information regarding any annual energy sales or generation capacity increases 
35.28 	resulting from any efficient fuel-switching improvements. The commissioner shall report 
35.29 	on program performance both in the aggregate and for each entity filing an energy 
35.30 	conservation improvement plan for approval or review by the commissioner, and must 
35.31 	provide an estimate for progress toward the statewide energy-savings goal under section 
35.32 	216B.2401.
36.1 	(h) By January 15, 2010, the commissioner shall report to the legislature whether the 
36.2 	spending requirements under subdivisions 1a and 1b are necessary to achieve the 
36.3 	energy-savings goals established in this subdivision.
36.4 	(i) This subdivision does not apply to:
36.5 	(1) a cooperative electric association with fewer than 5,000 members;
36.6 	(2) a municipal utility with fewer than 1,000 retail electric customers; or
36.7 	(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales 
36.8 	to retail natural gas customers.

36.9 	Sec. 21. Minnesota Statutes 2018, section 216B.241, subdivision 1d, is amended to read:
36.10 		Subd. 1d.Technical assistance. (a) The commissioner shall evaluate energy conservation 
36.11 	improvement programs under this section and section 216B.2403 on the basis of 
36.12 	cost-effectiveness and the reliability of the technologies employed. The commissioner shall, 
36.13 	by order, establish, maintain, and update energy-savings assumptions that must be used 
36.14 	when filing energy conservation improvement programs. The department must track a public 
36.15 	utility's or consumer-owned utility's lifetime energy savings and cumulative lifetime energy 
36.16 	savings provided to the commissioner in plans submitted under this section. The 
36.17 	commissioner shall establish an inventory of the most effective energy conservation 
36.18 	programs, techniques, and technologies, and encourage all Minnesota utilities to implement 
36.19 	them, where appropriate, in their service territories. The commissioner shall describe these 
36.20 	programs in sufficient detail to provide a utility reasonable guidance concerning 
36.21 	implementation. The commissioner shall prioritize the opportunities in order of potential 
36.22 	energy savings and in order of cost-effectiveness. The commissioner may contract with a 
36.23 	third party to carry out any of the commissioner's duties under this subdivision, and to obtain 
36.24 	technical assistance to evaluate the effectiveness of any conservation improvement program. 
36.25 	The commissioner may assess up to $850,000 annually for the purposes of this subdivision. 
36.26 	The assessments must be deposited in the state treasury and credited to the energy and 
36.27 	conservation account created under subdivision 2a. An assessment made under this 
36.28 	subdivision is not subject to the cap on assessments provided by section 216B.62, or any 
36.29 	other law.
36.30 	(b) Of the assessment authorized under paragraph (a), the commissioner may expend 
36.31 	up to $400,000 annually for the purpose of developing, operating, maintaining, and providing 
36.32 	technical support for a uniform electronic data reporting and tracking system available to 
36.33 	all utilities subject to this section, in order to enable accurate measurement of the cost and 
37.1 	energy savings of the energy conservation improvements required by this section. This 
37.2 	paragraph expires June 30, 2018. By March 15 of the year following the enactment of this 
37.3 	section, the commissioner must, by order, develop and publish technical information 
37.4 	necessary to evaluate whether deployment of a fuel-switching improvement meets the 
37.5 	criteria established under subdivision 11, paragraph (c), and section 216B.2403, subdivision 
37.6 	8, including the formula to account for the energy saved by a fuel-switching improvement 
37.7 	on a fuel-neutral basis. The commissioner must update the technical information as necessary.

37.8 	Sec. 22. Minnesota Statutes 2018, section 216B.241, subdivision 1f, is amended to read:
37.9 		Subd. 1f.Facilities energy efficiency. (a) The commissioner of administration and the 
37.10 	commissioner of commerce shall maintain and, as needed, revise the sustainable building 
37.11 	design guidelines developed under section 16B.325.
37.12 	(b) The commissioner of administration and the commissioner of commerce shall maintain 
37.13 	and update the benchmarking tool developed under Laws 2001, chapter 212, article 1, section 
37.14 	3, so that all public buildings can use the benchmarking tool to maintain energy use 
37.15 	information for the purposes of establishing energy efficiency benchmarks, tracking building 
37.16 	performance, and measuring the results of energy efficiency and conservation improvements.
37.17 	(c) The commissioner shall require that utilities include in their conservation improvement 
37.18 	plans programs that facilitate professional engineering verification to qualify a building as 
37.19 	Energy Star-labeled, Leadership in Energy and Environmental Design (LEED) certified, or 
37.20 	Green Globes-certified. The state goal is to achieve certification of 1,000 commercial 
37.21 	buildings as Energy Star-labeled, and 100 commercial buildings as LEED-certified or Green 
37.22 	Globes-certified by December 31, 2010.
37.23 	(d) The commissioner may assess up to $500,000 annually for the purposes of this 
37.24 	subdivision. The assessments must be deposited in the state treasury and credited to the 
37.25 	energy and conservation account created under subdivision 2a. An assessment made under 
37.26 	this subdivision is not subject to the cap on assessments provided by section 216B.62, or 
37.27 	any other law.

37.28 	Sec. 23. Minnesota Statutes 2018, section 216B.241, subdivision 2, is amended to read:
37.29 		Subd. 2.Programs Public utility; energy conservation and optimization plans. (a) 
37.30 	The commissioner may require public utilities to make investments and expenditures in 
37.31 	energy conservation improvements, explicitly setting forth the interest rates, prices, and 
37.32 	terms under which the improvements must be offered to the customers. The required 
37.33 	programs must cover no more than a three-year period. Public utilities shall file energy
38.1 	conservation improvement and optimization plans by June 1, on a schedule determined by 
38.2 	order of the commissioner, but at least every three years. As provided in subdivision 11, 
38.3 	plans may include programs for efficient fuel-switching improvements and load management. 
38.4 	An individual utility program may combine elements of energy conservation, load 
38.5 	management, or efficient fuel-switching. Plans received by a public utility by June 1 must 
38.6 	be approved or approved as modified by the commissioner by December 1 of that same 
38.7 	year. The plan must account for the lifetime energy savings and cumulative lifetime savings 
38.8 	under the plan. The commissioner shall evaluate the program on the basis of 
38.9 	cost-effectiveness and the reliability of technologies employed. The commissioner's order 
38.10 	must provide to the extent practicable for a free choice, by consumers participating in the 
38.11 	program, of the device, method, material, or project constituting the energy conservation 
38.12 	improvement and for a free choice of the seller, installer, or contractor of the energy 
38.13 	conservation improvement, provided that the device, method, material, or project seller, 
38.14 	installer, or contractor is duly licensed, certified, approved, or qualified, including under 
38.15 	the residential conservation services program, where applicable.
38.16 	(b) The commissioner may require a utility subject to subdivision 1c to make an energy 
38.17 	conservation improvement investment or expenditure whenever the commissioner finds 
38.18 	that the improvement will result in energy savings at a total cost to the utility less than the 
38.19 	cost to the utility to produce or purchase an equivalent amount of new supply of energy. 
38.20 	The commissioner shall nevertheless ensure that every public utility operate one or more 
38.21 	programs under periodic review by the department.
38.22 	(c) Each public utility subject to this subdivision 1a may spend and invest annually up 
38.23 	to ten percent of the total amount required to be spent and invested on energy conservation 
38.24 	improvements under this section by the utility on research and development projects that 
38.25 	meet the definition of energy conservation improvement in subdivision 1 and that are funded 
38.26 	directly by the public utility.
38.27 	(d) A public utility may not spend for or invest in energy conservation improvements 
38.28 	that directly benefit a large energy facility or a large electric customer facility for which the 
38.29 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The 
38.30 	commissioner shall consider and may require a public utility to undertake a program 
38.31 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
38.32 	or community organization.
38.33 	(e) A utility, a political subdivision, or a nonprofit or community organization that has 
38.34 	suggested a program, the attorney general acting on behalf of consumers and small business 
38.35 	interests, or a utility customer that has suggested a program and is not represented by the 
39.1 	attorney general under section 8.33 may petition the commission to modify or revoke a 
39.2 	department decision under this section, and the commission may do so if it determines that 
39.3 	the program is not cost-effective, does not adequately address the residential conservation 
39.4 	improvement needs of low-income persons, has a long-range negative effect on one or more 
39.5 	classes of customers, or is otherwise not in the public interest. The commission shall reject 
39.6 	a petition that, on its face, fails to make a reasonable argument that a program is not in the 
39.7 	public interest.
39.8 	(f) The commissioner may order a public utility to include, with the filing of the utility's 
39.9 	annual status report, the results of an independent audit of the utility's conservation 
39.10 	improvement programs and expenditures performed by the department or an auditor with 
39.11 	experience in the provision of energy conservation and energy efficiency services approved 
39.12 	by the commissioner and chosen by the utility. The audit must specify the energy savings 
39.13 	or increased efficiency in the use of energy within the service territory of the utility that is 
39.14 	the result of the spending and investments. The audit must evaluate the cost-effectiveness 
39.15 	of the utility's conservation programs.
39.16 	(g) A gas utility may not spend for or invest in energy conservation improvements that 
39.17 	directly benefit a large customer facility or commercial gas customer facility for which the 
39.18 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or 
39.19 	(e). The commissioner shall consider and may require a utility to undertake a program 
39.20 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
39.21 	or a community organization.
39.22 	(g) The energy conservation and optimization plan for each public utility subject to this 
39.23 	section must include a component focused on improving energy efficiency in public schools 
39.24 	served by the utility. At a minimum, the efficiency in schools component must consist of 
39.25 	programs to update lighting in schools, update heating and cooling systems in schools, 
39.26 	provide for building recommissioning, provide building operator training, and provide 
39.27 	opportunities to educate students, teachers, and staff regarding energy efficiency measures 
39.28 	implemented at the school, including the associated benefits for improved learning resulting 
39.29 	from the measures.

39.30 	Sec. 24. Minnesota Statutes 2018, section 216B.241, subdivision 2b, is amended to read:
39.31 		Subd. 2b.Recovery of expenses. The commission shall allow a public utility to recover 
39.32 	expenses resulting from a an energy conservation improvement program required and 
39.33 	optimization plan approved by the department under this section and contributions and 
39.34 	assessments to the energy and conservation account, unless the recovery would be 
40.1 	inconsistent with a financial incentive proposal approved by the commission. The commission 
40.2 	shall allow a cooperative electric association subject to rate regulation under section 
40.3 	216B.026, to recover expenses resulting from energy conservation improvement programs, 
40.4 	load management programs, and assessments and contributions to the energy and 
40.5 	conservation account unless the recovery would be inconsistent with a financial incentive 
40.6 	proposal approved by the commission. In addition, a public utility may file annually, or the 
40.7 	Public Utilities Commission may require the utility to file, and the commission may approve, 
40.8 	rate schedules containing provisions for the automatic adjustment of charges for utility 
40.9 	service in direct relation to changes in the expenses of the utility for real and personal 
40.10 	property taxes, fees, and permits, the amounts of which the utility cannot control. A public 
40.11 	utility is eligible to file for adjustment for real and personal property taxes, fees, and permits 
40.12 	under this subdivision only if, in the year previous to the year in which it files for adjustment, 
40.13 	it has spent or invested at least 1.75 percent of its gross revenues from provision of electric 
40.14 	service, excluding gross operating revenues from electric service provided in the state to 
40.15 	large electric customer facilities for which the commissioner has issued an exemption under 
40.16 	subdivision 1a, paragraph (b), and 0.6 percent of its gross revenues from provision of gas 
40.17 	service, excluding gross operating revenues from gas services provided in the state to large 
40.18 	electric customer facilities for which the commissioner has issued an exemption under 
40.19 	subdivision 1a, paragraph (b), for that year for energy conservation improvements under 
40.20 	this section.

40.21 	Sec. 25. Minnesota Statutes 2018, section 216B.241, subdivision 3, is amended to read:
40.22 		Subd. 3.Ownership of energy conservation improvement. An A preweatherization 
40.23 	measure or energy conservation improvement made to or installed in a building in accordance 
40.24 	with this section, except systems owned by the utility and designed to turn off, limit, or vary 
40.25 	the delivery of energy, are the exclusive property of the owner of the building except to the 
40.26 	extent that the improvement is subjected to a security interest in favor of the utility in case 
40.27 	of a loan to the building owner. The utility has no liability for loss, damage or injury caused 
40.28 	directly or indirectly by an a preweatherization measure or energy conservation improvement 
40.29 	except for negligence by the utility in purchase, installation, or modification of the product.

40.30 	Sec. 26. Minnesota Statutes 2018, section 216B.241, subdivision 5, is amended to read:
40.31 		Subd. 5.Efficient lighting program. (a) Each public utility, cooperative electric 
40.32 	association, and municipal utility that provides electric service to retail customers and is 
40.33 	subject to subdivision 1c shall include as part of its conservation improvement activities a 
40.34 	program to strongly encourage the use of fluorescent and high-intensity discharge lamps
41.1 	light-emitting diode lighting products. The program must include at least a public information 
41.2 	campaign to encourage use of the lamps and proper management of spent lamps by all 
41.3 	customer classifications.
41.4 	(b) A public utility that provides electric service at retail to 200,000 or more customers 
41.5 	shall establish, either directly or through contracts with other persons, including lamp 
41.6 	manufacturers, distributors, wholesalers, and retailers and local government units, a system 
41.7 	to collect for delivery to a reclamation or recycling facility spent fluorescent and 
41.8 	high-intensity discharge lamps from households and from small businesses as defined in 
41.9 	section 645.445 that generate an average of fewer than ten spent lamps per year.
41.10 	(c) A collection system must include establishing reasonably convenient locations for 
41.11 	collecting spent lamps from households and financial incentives sufficient to encourage 
41.12 	spent lamp generators to take the lamps to the collection locations. Financial incentives may 
41.13 	include coupons for purchase of new fluorescent or high-intensity discharge lamps, a cash 
41.14 	back system, or any other financial incentive or group of incentives designed to collect the 
41.15 	maximum number of spent lamps from households and small businesses that is reasonably 
41.16 	feasible.
41.17 	(d) A public utility that provides electric service at retail to fewer than 200,000 customers, 
41.18 	a cooperative electric association, or a municipal utility that provides electric service at 
41.19 	retail to customers may establish a collection system under paragraphs (b) and (c) as part 
41.20 	of conservation improvement activities required under this section.
41.21 	(e) The commissioner of the Pollution Control Agency may not, unless clearly required 
41.22 	by federal law, require a public utility, cooperative electric association, or municipality that 
41.23 	establishes a household fluorescent and high-intensity discharge lamp collection system 
41.24 	under this section to manage the lamps as hazardous waste as long as the lamps are managed 
41.25 	to avoid breakage and are delivered to a recycling or reclamation facility that removes 
41.26 	mercury and other toxic materials contained in the lamps prior to placement of the lamps 
41.27 	in solid waste.
41.28 	(f) If a public utility, cooperative electric association, or municipal utility contracts with 
41.29 	a local government unit to provide a collection system under this subdivision, the contract 
41.30 	must provide for payment to the local government unit of all the unit's incremental costs of 
41.31 	collecting and managing spent lamps.
41.32 	(g) All the costs incurred by a public utility, cooperative electric association, or municipal 
41.33 	utility for promotion and collection of fluorescent and high-intensity discharge lamps under 
41.34 	this subdivision are conservation improvement spending under this section.

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

42.2 	Sec. 27. Minnesota Statutes 2018, section 216B.241, subdivision 7, is amended to read:
42.3 		Subd. 7.Low-income programs. (a) The commissioner shall ensure that each public 
42.4 	utility and association subject to subdivision 1c provides low-incomeenergy conservation
42.5 	programs to low-income households. When approving spending and energy-savings goals 
42.6 	for low-income programs, the commissioner shall consider historic spending and participation 
42.7 	levels, energy savings for low-income programs, and the number of low-income persons 
42.8 	residing in the utility's service territory. A municipal utility that furnishes gas service must 
42.9 	spend at least 0.2 percent, and a public utility furnishing gas service must spend at least 0.4
42.10 	0.8 percent, of its most recent three-year average gross operating revenue from residential 
42.11 	customers in the state on low-income programs. A utility or association that furnishes electric 
42.12 	service must spend at least 0.1percent of its gross operating revenue from residential 
42.13 	customers in the state on low-income programs. For a generation and transmission 
42.14 	cooperative association, this requirement shall apply to each association's members' aggregate 
42.15 	gross operating revenue from sale of electricity to residential customers in the state. 
42.16 	Beginning in 2010, A utility or association that furnishes electric service must spend 0.2 
42.17 	percent of its gross operating revenue from residential customers in the state on low-income 
42.18 	programs.
42.19 	(b) To meet the requirements of paragraph (a), a public utility or association may 
42.20 	contribute money to the energy and conservation account. An energy conservation 
42.21 	improvement plan must state the amount, if any, of low-income energy conservation 
42.22 	improvement funds the public utility or association will contribute to the energy and 
42.23 	conservation account. Contributions must be remitted to the commissioner by February 1 
42.24 	of each year.
42.25 	(c) The commissioner shall establish low-income programs to utilize money contributed 
42.26 	to the energy and conservation account under paragraph (b). In establishing low-income 
42.27 	programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and 
42.28 	community organizations, especially organizations engaged in providing energy and 
42.29 	weatherization assistance to low-income personshouseholds. Money contributed to the 
42.30 	energy and conservation account under paragraph (b) must provide programs for low-income 
42.31 	personshouseholds, including low-income renters, in the service territory of the public 
42.32 	utility or association providing the money. The commissioner shall record and report 
42.33 	expenditures and energy savings achieved as a result of low-income programs funded 
42.34 	through the energy and conservation account in the report required under subdivision 1c, 
43.1 	paragraph (g). The commissioner may contract with a political subdivision, nonprofit or 
43.2 	community organization, public utility, municipality, or cooperative electric association to 
43.3 	implement low-income programs funded through the energy and conservation account.
43.4 	(d) A public utility or association may petition the commissioner to modify its required 
43.5 	spending under paragraph (a) if the utility or association and the commissioner have been 
43.6 	unable to expend the amount required under paragraph (a) for three consecutive years.
43.7 	(e) For purposes of this subdivision, "multifamily building" is defined as a residential 
43.8 	building with five or more dwelling units. Notwithstanding the definition of low-income 
43.9 	household in section 216B.2402, for purposes of determining eligibility for multifamily 
43.10 	buildings in low-income programs, a utility or association may use one or more of the 
43.11 	following:
43.12 	(1) information demonstrating a multifamily building's units are rented to households 
43.13 	meeting one of the following criteria:
43.14 	(i) household income at or below 200 percent of federal poverty level;
43.15 	(ii) household income at or below 60 percent of area median income;
43.16 	(iii) occupancy within a building that is certified on the Low Income Renter Classification 
43.17 	(LIRC) Assessor Report compiled annually by Minnesota Housing Finance Agency; or
43.18 	(iv) occupancy within a building which has a declaration against the property requiring 
43.19 	that a portion of the units are rented to tenants with an annual household income less than 
43.20 	or equal to 60 percent of area median income;
43.21 	(2) a property's participation in an affordable housing program, including low-income 
43.22 	housing tax credits (LIHTC), United States Department of Housing and Urban Development 
43.23 	(HUD) assistance, United States Department of Agriculture (USDA) assistance, state housing 
43.24 	finance agency assistance, or local tax abatement for low-income properties; or
43.25 	(3) documentation demonstrating that the property is on the waiting list for or currently 
43.26 	participating in the United States Department of Energy Weatherization Assistance Program.
43.27 	(f) Up to 15 percent of a public utility's spending on low-income programs may be spent 
43.28 	on preweatherization measures. For purposes of this section and section 216B.241, 
43.29 	subdivision 3, "preweatherization measure" means an improvement that is necessary to 
43.30 	allow energy conservation improvements to be installed in a home.
44.1 	(1) The commissioner must, by order, establish a list of qualifying preweatherization 
44.2 	measures eligible for inclusion in low-income programs no later than March 15 of the year 
44.3 	following enactment of this section.
44.4 	(2) A public utility may elect to contribute money to the Healthy Asbestos Insulation 
44.5 	Removal (AIR) program administered by the department. Money contributed to the fund 
44.6 	counts toward the minimum low-income spending requirement in paragraph (a) and toward 
44.7 	the cap on preweatherization measures.
44.8 	(e) (g) The costs and benefits associated with any approved low-income gas or electric 
44.9 	conservation improvement program that is not cost-effective when considering the costs 
44.10 	and benefits to the utility may, at the discretion of the utility, be excluded from the calculation 
44.11 	of net economic benefits for purposes of calculating the financial incentive to the utility. 
44.12 	The energy and demand savings may, at the discretion of the utility, be applied toward the 
44.13 	calculation of overall portfolio energy and demand savings for purposes of determining 
44.14 	progress toward annual goals and in the financial incentive mechanism.

44.15 	Sec. 28. Minnesota Statutes 2018, section 216B.241, subdivision 9, is amended to read:
44.16 		Subd. 9.Building performance standards; Sustainable Building 2030. (a) The purpose 
44.17 	of this subdivision is to establish cost-effective energy-efficiency performance standards 
44.18 	for new and substantially reconstructed commercial, industrial, and institutional buildings 
44.19 	that can significantly reduce carbon dioxide emissions by lowering energy use in new and 
44.20 	substantially reconstructed buildings. For the purposes of this subdivision, the establishment 
44.21 	of these standards may be referred to as Sustainable Building 2030.
44.22 	(b) The commissioner shall contract with the Center for Sustainable Building Research 
44.23 	at the University of Minnesota to coordinate development and implementation of 
44.24 	energy-efficiency performance standards, strategic planning, research, data analysis, 
44.25 	technology transfer, training, and other activities related to the purpose of Sustainable 
44.26 	Building 2030. The commissioner and the Center for Sustainable Building Research shall, 
44.27 	in consultation with utilities, builders, developers, building operators, and experts in building 
44.28 	design and technology, develop a Sustainable Building 2030 implementation plan that must 
44.29 	address, at a minimum, the following issues:
44.30 	(1) training architects to incorporate the performance standards in building design;
44.31 	(2) incorporating the performance standards in utility conservation improvement 
44.32 	programs; and
45.1 	(3) developing procedures for ongoing monitoring of energy use in buildings that have 
45.2 	adopted the performance standards.
45.3 	The plan must be submitted to the chairs and ranking minority members of the senate and 
45.4 	house of representatives committees with primary jurisdiction over energy policy by July 
45.5 	1, 2009.
45.6 	(c) Sustainable Building 2030 energy-efficiency performance standards must be firm, 
45.7 	quantitative measures of total building energy use and associated carbon dioxide emissions 
45.8 	per square foot for different building types and uses, that allow for accurate determinations 
45.9 	of a building's conformance with a performance standard. Performance standards must 
45.10 	address energy use by electric vehicle charging infrastructure in or adjacent to buildings as 
45.11 	that infrastructure begins to be made widely available. The energy-efficiency performance 
45.12 	standards must be updated every three or five years to incorporate all cost-effective measures. 
45.13 	The performance standards must reflect the reductions in carbon dioxide emissions per 
45.14 	square foot resulting from actions taken by utilities to comply with the renewable energy 
45.15 	standards in section 216B.1691. The performance standards should be designed to achieve 
45.16 	reductions equivalent to the following reduction schedule, measured against energy 
45.17 	consumption by an average building in each applicable building sector in 2003: (1) 60 
45.18 	percent in 2010; (2) 70 percent in 2015; (3) 80 percent in 2020; and (4) 90 percent in 2025. 
45.19 	A performance standard must not be established or increased absent a conclusive engineering 
45.20 	analysis that it is cost-effective based upon established practices used in evaluating utility 
45.21 	conservation improvement programs.
45.22 	(d) The annual amount of the contract with the Center for Sustainable Building Research 
45.23 	is up to $500,000. The Center for Sustainable Building Research shall expend no more than 
45.24 	$150,000 of this amount each year on administration, coordination, and oversight activities 
45.25 	related to Sustainable Building 2030. Up to an additional $150,000 of this amount may be 
45.26 	used by the Center for Sustainable Building Research to provide technical assistance to 
45.27 	local jurisdictions that adopt a voluntary stretch code under section 326B.106, subdivision 
45.28 	16, that conforms to Sustainable Building 2030. The balance of contract funds must be spent 
45.29 	on substantive programmatic activities allowed under this subdivision that may be conducted 
45.30 	by the Center for Sustainable Building Research and others, and for subcontracts with 
45.31 	not-for-profit energy organizations, architecture and engineering firms, and other qualified 
45.32 	entities to undertake technical projects and activities in support of Sustainable Building 
45.33 	2030. The primary work to be accomplished each year by qualified technical experts under 
45.34 	subcontracts is the development and thorough justification of recommendations for specific 
45.35 	energy-efficiency performance standards. Additional work may include:
46.1 	(1) research, development, and demonstration of new energy-efficiency technologies 
46.2 	and techniques suitable for commercial, industrial, and institutional buildings;
46.3 	(2) analysis and evaluation of practices in building design, construction, commissioning 
46.4 	and operations, and analysis and evaluation of energy use in the commercial, industrial, and 
46.5 	institutional sectors;
46.6 	(3) analysis and evaluation of the effectiveness and cost-effectiveness of Sustainable 
46.7 	Building 2030 performance standards, conservation improvement programs, and building 
46.8 	energy codes;
46.9 	(4) development and delivery of training programs for architects, engineers, 
46.10 	commissioning agents, technicians, contractors, equipment suppliers, developers, and others 
46.11 	in the building industries; and
46.12 	(5) analysis and evaluation of the effect of building operations on energy use.
46.13 	(e) The commissioner shall require utilities to develop and implement conservation 
46.14 	improvement programs that are expressly designed to achieve energy efficiency goals 
46.15 	consistent with the Sustainable Building 2030 performance standards. These programs must 
46.16 	include offerings of design assistance and modeling, financial incentives, and the verification 
46.17 	of the proper installation of energy-efficient design components in new and substantially 
46.18 	reconstructed buildings. The programs must be available to customers in local jurisdictions 
46.19 	that adopt a voluntary stretch code under section 326B.106, subdivision 16. A utility's design 
46.20 	assistance program must consider the strategic planting of trees and shrubs around buildings 
46.21 	as an energy conservation strategy for the designed project. A utility making an expenditure 
46.22 	under its conservation improvement program that results in a building meeting the Sustainable 
46.23 	Building 2030 performance standards may claim the energy savings toward its energy-savings 
46.24 	goal established in subdivision 1c.
46.25 	(f) The commissioner shall report to the legislature every three years, beginning January 
46.26 	15, 2010, on the cost-effectiveness and progress of implementing the Sustainable Building 
46.27 	2030 performance standards and shall make recommendations on the need to continue the 
46.28 	program as described in this section.

46.29 	Sec. 29. Minnesota Statutes 2018, section 216B.241, is amended by adding a subdivision 
46.30 	to read:
46.31 		Subd. 11.Programs for efficient fuel-switching improvements and load 
46.32 	management. (a) A public utility subject to this section may include in its plan required 
46.33 	under subdivision 2 programs for (1) efficient fuel-switching improvements and load 
47.1 	management, or (2) combinations of energy conservation improvements, fuel-switching 
47.2 	improvements, and load management. For each program, the utility must provide proposed 
47.3 	budgets, cost-effectiveness analyses, and estimated net energy and demand savings.
47.4 	(b) The department may approve proposed programs for efficient fuel-switching 
47.5 	improvements if it finds the improvements meet the requirements of paragraph (e). For 
47.6 	improvements requiring the deployment of electric technologies, the department must also 
47.7 	consider whether the fuel-switching improvement can be operated in a manner that facilitates 
47.8 	the integration of variable renewable energy into the electric system. The net benefits from 
47.9 	an efficient fuel-switching improvement that is integrated with an energy efficiency program 
47.10 	approved under this section may be counted toward the net benefits of the energy efficiency 
47.11 	program, provided the department finds the primary purpose and effect of the program is 
47.12 	energy efficiency.
47.13 	(c) The department may approve a proposed program in load management if it finds the 
47.14 	program investment is cost-effective after considering the costs and benefits of the proposed 
47.15 	investment to ratepayers, the utility, participants, and society. The net benefits from a load 
47.16 	management activity that is integrated with an energy efficiency program approved under 
47.17 	this section may be counted toward the net benefits of the energy efficiency program, 
47.18 	provided the department finds the primary purpose and effect of the program is energy 
47.19 	efficiency.
47.20 	(d) The commission may permit a public utility to file rate schedules that provide for 
47.21 	annual cost recovery for efficient fuel-switching improvements and cost-effective load 
47.22 	management programs approved by the department, including reasonable and prudent costs 
47.23 	to implement and promote programs approved under this subdivision. The commission may 
47.24 	approve, modify, or reject a proposal made by the department or a utility for an incentive 
47.25 	plan to encourage investments in load management programs, applying the considerations 
47.26 	established under section 216B.16, subdivision 6c, paragraphs (b) and (c). The commission 
47.27 	must not approve a financial incentive to encourage efficient fuel-switching programs. An 
47.28 	incentive plan to encourage cost-effective load management programs may be structured 
47.29 	as a regulatory asset on which a public utility could earn a rate of return. A utility is not 
47.30 	eligible for a financial incentive under this subdivision in any year the utility or association 
47.31 	does not achieve its minimum energy-savings goal.
47.32 	(e) A fuel-switching improvement is deemed efficient if the commissioner finds the 
47.33 	improvement, relative to the fuel that is being displaced, meets the following criteria:
48.1 	(1) results in a net reduction in the cost and amount of source energy consumed for a 
48.2 	particular use, measured on a fuel-neutral basis;
48.3 	(2) results in a net reduction of statewide greenhouse gas emissions as defined in section 
48.4 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching 
48.5 	improvement installed by an electric utility, the change in emissions must be measured 
48.6 	based on the hourly emission profile of the electric utility, using the hourly emissions profile 
48.7 	in the most recent resource plan approved by the commission under section 216B.2422;
48.8 	(3) is cost-effective from a societal perspective, considering the costs associated with 
48.9 	both the fuel that was used and the fuel that will be used; and
48.10 	(4) is installed and operated in a manner that does not unduly increase the utility's system 
48.11 	peak demand or require significant new investment in utility infrastructure.

48.12 	Sec. 30. Minnesota Statutes 2018, section 216B.2422, subdivision 1, is amended to read:
48.13 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
48.14 	subdivision have the meanings given them.
48.15 	(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more 
48.16 	of electric power and serving, either directly or indirectly, the needs of 10,000 retail 
48.17 	customers in Minnesota. Utility does not include federal power agencies.
48.18 	(c) "Renewable energy" means electricity generated through use of any of the following 
48.19 	resources:
48.20 	(1) wind;
48.21 	(2) solar;
48.22 	(3) geothermal;
48.23 	(4) hydro;
48.24 	(5) trees or other vegetation;
48.25 	(6) landfill gas; or
48.26 	(7) predominantly organic components of wastewater effluent, sludge, or related 
48.27 	by-products from publicly owned treatment works, but not including incineration of 
48.28 	wastewater sludge.
48.29 	(d) "Resource plan" means a set of resource options that a utility could use to meet the 
48.30 	service needs of its customers over a forecast period, including an explanation of the supply 
48.31 	and demand circumstances under which, and the extent to which, each resource option 
49.1 	would be used to meet those service needs. These resource options include using, 
49.2 	refurbishing, and constructing utility plant and equipment, buying power generated by other 
49.3 	entities, controlling customer loads, and implementing customer energy conservation.
49.4 	(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating 
49.5 	resource of 30 megawatts or greater.
49.6 	(f) "Clean energy resource" means renewable energy, an energy storage system, energy 
49.7 	efficiency, as defined in section 216B.2402, paragraph (g), or load management, as defined 
49.8 	in section 216B.2402, paragraph (o).
49.9 	(g) "Carbon-free resource" means a generation technology that, when operating, does 
49.10 	not contribute to statewide greenhouse gas emissions, as defined in section 216H.01, 
49.11 	subdivision 2. Carbon-free resource does not include a nuclear-powered electric generation 
49.12 	facility operating in Minnesota on the effective date of this act.
49.13 	(h) "Energy storage system" means a commercially available technology that:
49.14 	(1) uses mechanical, chemical, or thermal processes to:
49.15 	(i) store energy and deliver the stored energy for use at a later time; or
49.16 	(ii) store thermal energy for direct use for heating or cooling at a later time in a manner 
49.17 	that reduces the demand for energy at the later time;
49.18 	(2) if being used for electric grid benefits, is:
49.19 	(i) operationally visible to the distribution or transmission entity managing it; and
49.20 	(ii) capable of being controlled by the distribution or transmission entity to enable and 
49.21 	optimize the safe and reliable operation of the electric system; and
49.22 	(3) achieves any of the following:
49.23 	(i) reduces peak electrical demand;
49.24 	(ii) defers the need or substitutes for an investment in electric generation, transmission, 
49.25 	or distribution assets;
49.26 	(iii) improves the reliable operation of the electrical transmission or distribution systems; 
49.27 	or
49.28 	(iv) lowers customer costs by storing energy when the cost of generating or purchasing 
49.29 	energy is low and delivering energy to customers when costs are high.
49.30 	(i) "Nonrenewable energy facility" means a generation facility, other than a nuclear 
49.31 	facility, that does not use a renewable energy or other clean energy resource.
50.1 	(j) "Local job impacts" means the impacts of an integrated resource plan, a certificate 
50.2 	of need, a power purchase agreement, or commission approval of a new or refurbished 
50.3 	electric generation facility on the availability of high-quality construction and mining 
50.4 	employment opportunities for local workers.
50.5 	(k) "Local workers" means workers employed to construct and maintain energy 
50.6 	infrastructure, or employed in a mining industry, that are Minnesota residents, residents of 
50.7 	the utility's service territory, or who permanently reside within 150 miles of a proposed new 
50.8 	or refurbished energy facility.

50.9 	Sec. 31. Minnesota Statutes 2018, section 216B.2422, subdivision 2, is amended to read:
50.10 		Subd. 2.Resource plan filing and approval. (a) A utility shall file a resource plan with 
50.11 	the commission periodically in accordance with rules adopted by the commission. The 
50.12 	commission shall approve, reject, or modify the plan of a public utility, as defined in section 
50.13 	216B.02, subdivision 4, consistent with the public interest.
50.14 	(b) In the resource plan proceedings of all other utilities, the commission's order shall 
50.15 	be advisory and the order's findings and conclusions shall constitute prima facie evidence 
50.16 	which may be rebutted by substantial evidence in all other proceedings. With respect to 
50.17 	utilities other than those defined in section 216B.02, subdivision 4, the commission shall 
50.18 	consider the filing requirements and decisions in any comparable proceedings in another 
50.19 	jurisdiction.
50.20 	(c) As a part of its resource plan filing, a utility shall include the least cost plan for 
50.21 	meeting 50 and, 75, and 100 percent of all energy needs from both new and refurbished 
50.22 	generating facilities through a combination of conservationclean energy and renewable 
50.23 	energycarbon-free resources.

50.24 	Sec. 32. Minnesota Statutes 2018, section 216B.2422, subdivision 3, is amended to read:
50.25 		Subd. 3.Environmental costs. (a) The commission shall, to the extent practicable, 
50.26 	quantify and establish a range of environmental costs associated with each method of 
50.27 	electricity generation. A utility shall use the values established by the commission in 
50.28 	conjunction with other external factors, including socioeconomic costs, when evaluating 
50.29 	and selecting resource options in all proceedings before the commission, including power 
50.30 	purchase agreement, resource plan, and certificate of need proceedings. When evaluating 
50.31 	resource options, the commission must include and consider the environmental cost values 
50.32 	adopted under this subdivision. When considering the costs of a nonrenewable energy 
50.33 	facility under this section, the commission must consider only nonzero values for the 
51.1 	environmental costs that must be analyzed under this subdivision, including both the low 
51.2 	and high values of any cost range adopted by the commission.
51.3 	(b) The commission shall establish interim environmental cost values associated with 
51.4 	each method of electricity generation by March 1, 1994. These values expire on the date 
51.5 	the commission establishes environmental cost values under paragraph (a).

51.6 	Sec. 33. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
51.7 	to read:
51.8 		Subd. 3a.Favored energy resources; state policy. It is the policy of the state that, in 
51.9 	order to hasten the achievement of the greenhouse gas reduction goals under section 216H.02, 
51.10 	the renewable energy standard under section 216B.1691, subdivision 2a, and the solar energy 
51.11 	standard under section 216B.1691, subdivision 2f, and given the significant and continuing 
51.12 	reductions in the cost of wind technologies, solar technologies, energy storage systems, and 
51.13 	demand-response technologies, the favored method to meet energy demand in Minnesota 
51.14 	is a combination of clean energy resources.

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

51.16 	Sec. 34. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
51.17 	to read:
51.18 		Subd. 3b.Nonrenewable energy facility; required analysis. (a) In its application 
51.19 	requesting commission approval of the construction, refurbishing, or purchase of energy or 
51.20 	capacity from a nonrenewable energy facility in an integrated resource plan, a power purchase 
51.21 	agreement, or any other proceeding, a utility must include, at a minimum, the information 
51.22 	required under this subdivision.
51.23 	(b) A utility must include plans to meet 50, 75, and 100 percent of the energy or capacity 
51.24 	provided by the proposed nonrenewable energy facility using the least costly combination 
51.25 	of clean energy resources.
51.26 	(c) When analyzing costs under this subdivision, a utility must include the environmental 
51.27 	costs most recently adopted by the commission for carbon dioxide emissions and criteria 
51.28 	air pollutants, and socioeconomic costs required under subdivision 3, using both the low 
51.29 	and high ends of any cost range adopted by the commission. When considering the costs 
51.30 	of a nonrenewable energy facility under this section, the commission must consider only 
51.31 	nonzero values for the environmental costs that must be analyzed under subdivision 3, 
51.32 	including both the low and high values of any cost range adopted by the commission.

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

52.2 	Sec. 35. Minnesota Statutes 2018, section 216B.2422, subdivision 4, is amended to read:
52.3 		Subd. 4.Preference for renewable energy facility clean energy resources. (a) In order 
52.4 	to achieve the greenhouse gas reduction goals under section 216H.02, and the carbon-free 
52.5 	standard under section 216B.1691, the commission shall not approve a new or refurbished 
52.6 	nonrenewable energy facility in an integrated resource plan or a certificate of need, pursuant 
52.7 	to under section 216B.243, or in any proceeding in which a utility seeks to construct an 
52.8 	electric generating facility or procure electricity or capacity, nor shall the commission
52.9 	approve a power purchase agreement for power with a nonrenewable energy facility, or
52.10 	allow rate recovery pursuant to under section 216B.16 for such a nonrenewable energy 
52.11 	facility, unless the utility has demonstrated by clear and convincing evidence that a renewable 
52.12 	energy facility, alone or in combination with other clean energy resources, is not in the 
52.13 	public interest. When making the public interest determination, the commission must 
52.14 	consider:
52.15 	(1) whether the resource plan helps the utility achieve the greenhouse gas reduction 
52.16 	goals under section 216H.02, the renewable energy standard under section 216B.1691, or 
52.17 	the solar energy standard under section 216B.1691, subdivision 2f;
52.18 	(2) impacts on local and regional grid reliability;
52.19 	(3) utility and ratepayer impacts resulting from the intermittent nature of renewable 
52.20 	energy facilities, including but not limited to the costs of purchasing wholesale electricity 
52.21 	in the market and the costs of providing ancillary services; and
52.22 	(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility, 
52.23 	changes in transmission costs, portfolio diversification, and environmental compliance 
52.24 	costs.
52.25 	(b) In order to find that a renewable energy facility, alone or in combination with other 
52.26 	clean energy resources, is not in the public interest, the commission must find by clear and 
52.27 	convincing evidence that utilizing renewable or clean energy resources to meet the need 
52.28 	for resources cannot be done affordably or reliably.
52.29 	(c) To determine affordability, the commission must consider utility and ratepayer effects 
52.30 	resulting from:
52.31 	(1) the intermittent nature of renewable energy facilities, including but not limited to 
52.32 	the costs to purchase wholesale electricity in the market and the costs to provide ancillary 
52.33 	services;
53.1 	(2) reduced exposure to fuel price volatility, changes in transmission and distribution 
53.2 	costs, portfolio diversification, and environmental compliance costs; and
53.3 	(3) other environmental costs of a nonrenewable energy facility, as determined by the 
53.4 	commission under subdivision 3.
53.5 	(d) To determine reliability, the commission must consider:
53.6 	(1) effects on regional grid reliability; and
53.7 	(2) the ability of the proposed energy resources or facilities to provide:
53.8 	(i) essential reliability services, including frequency response, balancing services, and 
53.9 	voltage control; and
53.10 	(ii) energy and capacity.
53.11 	(e) When considering the costs of a nonrenewable energy facility under this section, the 
53.12 	commission must consider only nonzero values for the environmental costs that must be 
53.13 	analyzed under subdivision 3, including both the low and high values of any cost range 
53.14 	adopted by the commission.
53.15 	(f) The commission must make a written determination of its findings and conclusions 
53.16 	regarding affordability and reliability under this subdivision. The commission must also 
53.17 	make a written determination as to whether the energy resources approved by the 
53.18 	commission: (1) help the state achieve the greenhouse gas reduction goals under section 
53.19 	216H.02; and (2) help the utility achieve the renewable energy standard under section 
53.20 	216B.1691, or the solar energy standard under section 216B.1691, subdivision 2f.
53.21 	(g) If the commission approves a resource plan that includes the retirement of a 
53.22 	nonrenewable energy facility owned by a public utility, the public utility owns at least an 
53.23 	amount of the accredited capacity of clean energy resources equal to the percentage of the 
53.24 	retiring nonrenewable energy facility that remains undepreciated multiplied by the accredited 
53.25 	capacity of the retiring facility, and owns the transmission and other facilities necessary to 
53.26 	replace the accredited capacity of the retiring facility, provided:
53.27 	(1) the utility demonstrates its ownership of replacement resources is in the public 
53.28 	interest, considering customer impacts and benefits; and
53.29 	(2) the resource plan results in the utility meeting the standards described below:
53.30 	(i) for an electric utility that owned a nuclear generating facility as of January 1, 2007, 
53.31 	at least 85 percent of its electric supply by the year 2030 and thereafter, and 100 percent of 
54.1 	its electric supply by the year 2045, from resources that do not contribute to statewide 
54.2 	greenhouse gas emissions, as defined in section 216H.01, subdivision 2; and
54.3 	(ii) for an electric utility that did not own a nuclear generating facility as of January 1, 
54.4 	2007, at least 80 percent of its electric supply by the year 2030 and thereafter, and 100 
54.5 	percent of its electric supply by the year 2050, from resources that do not contribute to 
54.6 	statewide greenhouse gas emissions, as defined in section 216H.01, subdivision 2.

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

54.8 	Sec. 36. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
54.9 	to read:
54.10 		Subd. 4a.Preference for local job creation. As a part of its resource plan filing, a utility 
54.11 	must report on associated local job impacts and the steps the utility and its energy suppliers 
54.12 	and contractors are taking to maximize the availability of construction employment 
54.13 	opportunities for local workers. The commission must consider local job impacts and give 
54.14 	preference to proposals that maximize the creation of construction employment opportunities 
54.15 	for local workers, consistent with the public interest, when evaluating any utility proposal 
54.16 	that involves the selection or construction of facilities used to generate or deliver energy to 
54.17 	serve the utility's customers, including but not limited to a certificate of need, a power 
54.18 	purchase agreement, or commission approval of a new or refurbished electric generation 
54.19 	facility.

54.20 	Sec. 37. Minnesota Statutes 2018, section 216B.2422, subdivision 5, is amended to read:
54.21 		Subd. 5.Bidding; exemption from certificate of need proceeding. (a) A utility may 
54.22 	select resources to meet its projected energy demand through a bidding process approved 
54.23 	or established by the commission. A utility shall use the environmental cost estimates 
54.24 	determined under subdivision 3 and consider local job impacts in evaluating bids submitted 
54.25 	in a process established under this subdivision.
54.26 	(b) Notwithstanding any other provision of this section, if an electric power generating 
54.27 	plant, as described in section 216B.2421, subdivision 2, clause (1), is selected in a bidding 
54.28 	process approved or established by the commission, a certificate of need proceeding under 
54.29 	section 216B.243 is not required.
54.30 	(c) A certificate of need proceeding is also not required for an electric power generating 
54.31 	plant that has been selected in a bidding process approved or established by the commission, 
55.1 	or such other selection process approved by the commission, to satisfy, in whole or in part, 
55.2 	the wind power mandate of section 216B.2423 or the biomass mandate of section 216B.2424.

55.3 	Sec. 38. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
55.4 	to read:
55.5 		Subd. 7.Energy storage systems assessment. (a) Each public utility required to file a 
55.6 	resource plan under subdivision 2 must include in the filing an assessment of energy storage 
55.7 	systems that analyzes how the deployment of energy storage systems contributes to:
55.8 	(1) meeting identified generation and capacity needs; and
55.9 	(2) evaluating ancillary services.
55.10 	(b) The assessment must employ appropriate modeling methods to enable the analysis 
55.11 	required in paragraph (a).

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

55.13 	Sec. 39. [216B.2427] ELECTRIC UTILITIES; ANCILLARY SERVICES COST 
55.14 	REPORT.
55.15 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
55.16 	the meanings given.
55.17 	(b) "Ancillary services" means services that help maintain the reliability of the electrical 
55.18 	grid by maintaining the proper flow and direction of electricity, addressing temporary 
55.19 	imbalances of supply and demand, and helping the electrical grid to recover after a power 
55.20 	failure. Ancillary services include but are not limited to spinning reserves, nonspinning 
55.21 	reserves, voltage regulation, load following, and black start capability.
55.22 	(c) "Black start capability" means the provision of the initial energy needed to start up 
55.23 	and begin operation of an electricity generator.
55.24 	(d) "Load following" means the matching, within five minutes or less, of electricity 
55.25 	supply to demand as demand fluctuates.
55.26 	(e) "Nonspinning reserves" means electric generation capacity that is not connected to 
55.27 	the electric grid, but is capable of:
55.28 	(1) being connected, ramped to capacity, and synchronized to the electric grid within 
55.29 	ten minutes; and
55.30 	(2) maintaining a specified output level for at least two hours.
56.1 	(f) "Spinning reserves" means reserve electric generation capacity that is connected and 
56.2 	synchronized to the electric grid and can meet electric demand within ten minutes.
56.3 	(g) "Voltage regulation" means the maintenance of voltage levels on the electric grid.
56.4 		Subd. 2.Report. By October 1, 2019, and each April 1 thereafter, each electric utility 
56.5 	must report to the commission on a form developed by the commission the total cost to 
56.6 	purchase or self-provide ancillary services throughout the previous calendar year. For each 
56.7 	type of ancillary service, the utility must report:
56.8 	(1) the entity providing the ancillary service;
56.9 	(2) the amount, duration, and frequency of the ancillary service provided; and
56.10 	(3) the cost to purchase or provide the ancillary service.

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

56.12 	Sec. 40. Minnesota Statutes 2018, section 216B.243, subdivision 3, is amended to read:
56.13 		Subd. 3.Showing required for construction. (a) No proposed large energy facility 
56.14 	shall be certified for construction unless the applicant can show that demand for electricity 
56.15 	cannot be met more cost effectively through energy conservation, energy storage, and 
56.16 	load-management measures and unless the applicant has otherwise justified its need. In 
56.17 	assessing need, the commission shall evaluate:
56.18 	(1) the accuracy of the long-range energy demand forecasts on which the necessity for 
56.19 	the facility is based;
56.20 	(2) the effect of existing or possible energy conservation programs under sections 216C.05
56.21 	to 216C.30 and this section or other federal or state legislation on long-term energy demand;
56.22 	(3) the relationship of the proposed facility to overall state energy needs, as described 
56.23 	in the most recent state energy policy and conservation report prepared under section 
56.24 	216C.18, or, in the case of a high-voltage transmission line, the relationship of the proposed 
56.25 	line to regional energy needs, as presented in the transmission plan submitted under section 
56.26 	216B.2425;
56.27 	(4) promotional activities that may have given rise to the demand for this facility;
56.28 	(5) benefits of this facility, including its uses to protect or enhance environmental quality, 
56.29 	and to increase reliability of energy supply in Minnesota and the region;
56.30 	(6) possible alternatives for satisfying the energy demand or transmission needs including 
56.31 	but not limited to potential for increased efficiency and upgrading of existing energy 
57.1 	generation and transmission facilities, energy storage systems, load-management programs, 
57.2 	and distributed generation;
57.3 	(7) the policies, rules, and regulations of other state and federal agencies and local 
57.4 	governments;
57.5 	(8) any feasible combination of energy conservation improvements, required under 
57.6 	section 216B.241, or energy storage systems that can (i) replace part or all of the energy to 
57.7 	be provided by the proposed facility, and (ii) compete with it economically;
57.8 	(9) with respect to a high-voltage transmission line, the benefits of enhanced regional 
57.9 	reliability, access, or deliverability to the extent these factors improve the robustness of the 
57.10 	transmission system or lower costs for electric consumers in Minnesota;
57.11 	(10) whether the applicant or applicants are in compliance with applicable provisions 
57.12 	of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file by a date 
57.13 	certain an application for certificate of need under this section or for certification as a priority 
57.14 	electric transmission project under section 216B.2425 for any transmission facilities or 
57.15 	upgrades identified under section 216B.2425, subdivision 7;
57.16 	(11) whether the applicant has made the demonstrations required under subdivision 3a; 
57.17 	and
57.18 	(12) if the applicant is proposing a nonrenewable generating plant, the applicant's 
57.19 	assessment of the risk of environmental costs and regulation on that proposed facility over 
57.20 	the expected useful life of the plant, including a proposed means of allocating costs associated 
57.21 	with that risk.
57.22 	(b) "Energy storage system" means a commercially available technology that uses 
57.23 	mechanical, chemical, or thermal processes to:
57.24 	(1) store energy and deliver the stored energy for use at a later time; or
57.25 	(2) store thermal energy for direct use for heating or cooling at a later time in a manner 
57.26 	that reduces the demand for electricity at the later time.

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

57.28 	Sec. 41. Minnesota Statutes 2018, section 216B.243, subdivision 3a, is amended to read:
57.29 		Subd. 3a.Use of renewable nonrenewable resource. The commission may must not 
57.30 	issue a certificate of need under this section for a large energy facility that generates electric 
57.31 	power by means of a nonrenewable energy source, or that transmits electric power generated 
57.32 	by means of a nonrenewable energy source, unless the applicant for the certificate has 
58.1 	demonstrated by clear and convincing evidence to the commission's satisfaction under 
58.2 	section 216B.2422, subdivision 4, that it the applicant has explored the possibility of
58.3 	conducted the analysis required under section 216B.2422, subdivision 3b, regarding
58.4 	generating power by means of renewable clean energy sources resources, as defined in 
58.5 	section 216B.2422, subdivision 1, and has demonstrated that the alternative selected is less 
58.6 	expensive (including environmental costs) than power generated by a renewable energy 
58.7 	source. For purposes of this subdivision, "renewable energy source" includes hydro, wind, 
58.8 	solar, and geothermal energy and the use of trees or other vegetation as fuel. nonrenewable 
58.9 	energy source is in the public interest.

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

58.11 	Sec. 42. [216B.247] BENEFICIAL ELECTRIFICATION.
58.12 	(a) It is the goal of the state to promote energy end uses powered by electricity that result 
58.13 	in a net reduction in greenhouse gas emissions and improvements to public health, consistent 
58.14 	with the goal established under section 216H.02, subdivision 1.
58.15 	(b) To the maximum reasonable extent, the implementation of beneficial electrification 
58.16 	should prioritize investment and activity in low-income and underresourced communities, 
58.17 	maintain or improve the quality of electricity service, maximize customer savings, improve 
58.18 	the integration of renewable and carbon-free resources, and prioritize job creation.

58.19 	Sec. 43. [216B.248] PUBLIC UTILITY BENEFICIAL ELECTRIFICATION.
58.20 	(a) A public utility may submit to the commission a plan to promote energy end uses 
58.21 	powered by electricity within its service area. To the maximum reasonable extent, the plans 
58.22 	must:
58.23 	(1) maximize consumer savings over the lifetime of the investment;
58.24 	(2) maintain or enhance the reliability of electricity service;
58.25 	(3) quantify the acres of land that will be needed for new generation, transmission, and 
58.26 	distribution facilities to provide the additional electricity required under the plan;
58.27 	(4) maintain or enhance public health and safety when temperatures fall below 25 degrees 
58.28 	below zero Fahrenheit;
58.29 	(5) support the integration of renewable and carbon-free resources;
58.30 	(6) encourage load shape management and energy storage that reduce overall system 
58.31 	costs;
59.1 	(7) prioritize electrification projects in economically disadvantaged communities; and
59.2 	(8) produce a net reduction in greenhouse gas emissions, based on the electricity 
59.3 	generation portfolio of the public utility proposing the plan either over the lifetime of the 
59.4 	conversion or by 2050, whichever is sooner.
59.5 	(b) The commission must approve, reject, or modify the public utility's plan, consistent 
59.6 	with the public interest. Plans approved by the commission under this subdivision are eligible 
59.7 	for cost recovery under section 216B.1645.

59.8 	Sec. 44. [216C.375] SOLAR FOR SCHOOLS PROGRAM.
59.9 		Subdivision 1.Definitions. (a) For the purposes of this section and section 216C.376, 
59.10 	the following terms have the meanings given them.
59.11 	(b) "Developer" means an entity that installs a solar energy system on a school building 
59.12 	awarded a grant under this section.
59.13 	(c) "Energy storage system" means a commercially available technology capable of:
59.14 	(1) absorbing and storing electrical energy; and
59.15 	(2) dispatching stored electrical energy at a later time.
59.16 	(d) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
59.17 	(e) "School" means a school that operates as part of an independent or special school 
59.18 	district.
59.19 	(f) "School district" means an independent or special school district.
59.20 	(g) "Solar energy system" means photovoltaic or solar thermal devices installed alone 
59.21 	or in combination with an energy storage system.
59.22 		Subd. 2.Establishment; purpose. A solar for schools program is established in the 
59.23 	Department of Commerce. The purpose of the program is to provide grants to (1) stimulate 
59.24 	the installation of solar energy systems on or adjacent to school buildings by reducing costs, 
59.25 	and (2) enable schools to use the solar energy system as a teaching tool that is integrated 
59.26 	into the school's curriculum.
59.27 		Subd. 3.Establishment of account. (a) A solar for schools program account is 
59.28 	established in the special revenue fund. Money received from the general fund must be 
59.29 	transferred to the commissioner of commerce and credited to the account. Money deposited 
59.30 	in the account remains in the account until expended and does not cancel to the general 
59.31 	fund.
60.1 	(b) When a grant is awarded under this section, the commissioner must reserve the grant 
60.2 	amount in the account.
60.3 		Subd. 4.Expenditures. (a) Money in the account may be used only:
60.4 	(1) for grant awards made under this section; and
60.5 	(2) to pay the reasonable costs incurred by the department to administer this section.
60.6 	(b) Grant awards made with funds in the account must be used only for grants for solar 
60.7 	energy systems installed on or adjacent to school buildings receiving retail electric service 
60.8 	from a utility that is not subject to section 116C.779, subdivision 1.
60.9 		Subd. 5.Eligible system. (a) A grant may be awarded to a school under this section 
60.10 	only if the solar energy system that is the subject of the grant:
60.11 	(1) is installed on or adjacent to the school building that consumes the electricity generated 
60.12 	by the solar energy system, on property within the service territory of the utility currently 
60.13 	providing electric service to the school building; and
60.14 	(2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the 
60.15 	estimated annual electricity consumption of the school building where the solar energy 
60.16 	system is installed.
60.17 	(b) A school district that receives a rebate or other financial incentive under section 
60.18 	216B.241 for a solar energy system and that demonstrates considerable need for financial 
60.19 	assistance, as determined by the commissioner, is eligible for a grant under this section for 
60.20 	the same solar energy system.
60.21 		Subd. 6.Application process. (a) The commissioner must issue a request for proposals 
60.22 	to utilities, schools, and developers who wish to apply for a grant under this section on 
60.23 	behalf of a school.
60.24 	(b) A utility or developer must submit an application to the commissioner on behalf of 
60.25 	a school on a form prescribed by the commissioner. The form must include, at a minimum, 
60.26 	the following information:
60.27 	(1) the capacity of the proposed solar energy system and the amount of electricity that 
60.28 	is expected to be generated;
60.29 	(2) the current energy demand of the school building on which the solar energy generating 
60.30 	system is to be installed and information regarding any distributed energy resource, including 
60.31 	subscription to a community solar garden, that currently provides electricity to the school 
60.32 	building;
61.1 	(3) the size of any energy storage system proposed to be installed as part of a solar energy 
61.2 	system;
61.3 	(4) a description of any solar thermal devices proposed as part of the solar energy system;
61.4 	(5) the total cost to purchase and install the solar energy system and the solar energy 
61.5 	system's life-cycle cost, including the cost to remove and dispose the system at the end of 
61.6 	its life;
61.7 	(6) a copy of the proposed contract agreement between the school and the public utility 
61.8 	or developer, including provisions addressing responsibility for maintaining the solar energy 
61.9 	system;
61.10 	(7) the school's plan to make the solar energy system serve as a visible learning tool for 
61.11 	students, teachers, and visitors to the school, including how the solar energy system may 
61.12 	be integrated into the school's curriculum;
61.13 	(8) information that demonstrates the school district's level of need for financial assistance 
61.14 	available under this section;
61.15 	(9) information that demonstrates the school's readiness to implement the project, 
61.16 	including but not limited to the availability of the site where the solar energy system is to 
61.17 	be installed, and the level of the school's engagement with the utility providing electric 
61.18 	service to the school building on which the solar energy system is to be installed on issues 
61.19 	relevant to the implementation of the project, including metering and other issues;
61.20 	(10) with respect to the installation and operation of the solar energy system, the 
61.21 	willingness and ability of the developer or the public utility to:
61.22 	(i) pay employees and contractors a prevailing wage rate, as defined in section 177.42, 
61.23 	subdivision 6; and
61.24 	(ii) adhere to the provisions of section 177.43;
61.25 	(11) how the developer or public utility plans to reduce the school's initial capital expense 
61.26 	to purchase and install the solar energy system, and to provide financial benefits to the 
61.27 	school from the utilization of federal and state tax credits, utility incentives, and other 
61.28 	financial incentives; and
61.29 	(12) any other information deemed relevant by the commissioner.
61.30 	(c) The commissioner must administer an open application process under this section 
61.31 	at least twice annually.
62.1 	(d) The commissioner must develop administrative procedures governing the application 
62.2 	and grant award process.
62.3 		Subd. 7.Energy conservation review. At the commissioner's request, a school awarded 
62.4 	a grant under this section must provide the commissioner information regarding energy 
62.5 	conservation measures implemented at the school building where the solar energy system 
62.6 	is to be installed. The commissioner may make recommendations to the school regarding 
62.7 	cost-effective conservation measures it can implement, and may provide technical assistance 
62.8 	and direct the school to available financial assistance programs.
62.9 		Subd. 8.Technical assistance. The commissioner must provide technical assistance to 
62.10 	schools to develop and execute projects under this section.
62.11 		Subd. 9.Grant payments. The commissioner must award a grant from the account 
62.12 	established under subdivision 3 to a school for the necessary costs associated with the 
62.13 	purchase and installation of a solar energy system. The amount of the grant must be based 
62.14 	on the commissioner's assessment of the school's need for financial assistance.
62.15 		Subd. 10.Limitations. (a) No more than 50 percent of the grant payments awarded to 
62.16 	schools under this section may be awarded to schools where the proportion of students 
62.17 	eligible for free and reduced-price lunch under the National School Lunch Program is less 
62.18 	than 50 percent.
62.19 	(b) No more than ten percent of the total amount of grants awarded under this section 
62.20 	may be awarded to schools that are part of the same school district.
62.21 		Subd. 11.Application deadline. No application may be submitted under this section 
62.22 	after December 31, 2023.

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

62.24 	Sec. 45. [216C.376] SOLAR FOR SCHOOLS PROGRAM FOR CERTAIN UTILITY 
62.25 	SERVICE TERRITORY.
62.26 		Subdivision 1.Establishment; purpose. The utility subject to section 116C.779 must 
62.27 	operate a program to develop, and to supplement with additional funding, financial 
62.28 	arrangements that allow schools to benefit from state and federal tax and other financial 
62.29 	incentives that schools are ineligible to receive directly, in order to enable schools to install 
62.30 	and operate solar energy systems that can be used as teaching tools and integrated into the 
62.31 	school curriculum.
63.1 		Subd. 2.Required plan. (a) By October 1, 2019, the public utility must file a plan for 
63.2 	the solar for schools program with the commissioner. The plan must contain but is not 
63.3 	limited to the following elements:
63.4 	(1) a description of how entities that are eligible to take advantage of state and federal 
63.5 	tax and other financial incentives that reduce the cost to purchase, install, and operate a 
63.6 	solar energy system that schools are ineligible to take advantage of directly can share a 
63.7 	portion of the financial benefits with schools where a solar energy system is proposed to 
63.8 	be installed;
63.9 	(2) a description of how the public utility intends to use funds appropriated to the program 
63.10 	under this section to provide additional financial assistance to schools where a solar energy 
63.11 	system is proposed to be installed;
63.12 	(3) certification that the financial assistance provided under this section to a school by 
63.13 	the public utility must include the full value of the renewable energy certificates associated 
63.14 	with the generation of electricity by the solar energy system receiving financial assistance 
63.15 	under this section over the lifetime of the solar energy system;
63.16 	(4) an estimate of the amount of financial assistance that the public utility provides to a 
63.17 	school under clauses (1) to (3) on a per kilowatt-hour produced basis, and the length of time 
63.18 	financial assistance is provided;
63.19 	(5) certification that the transaction between the public utility and the school for electricity 
63.20 	is the buy-all/sell-all method by which the public utility charges the school for all electricity 
63.21 	the school consumes at the applicable retail rate schedule for sales to the school based on 
63.22 	the school's customer class, and credits or pays the school at the rate established in 
63.23 	subdivision 5;
63.24 	(6) administrative procedures governing the application and financial benefit award 
63.25 	process, and the costs the public utility and the department are projected to incur to administer 
63.26 	the program;
63.27 	(7) the public utility's proposed process for periodic reevaluation and modification of 
63.28 	the program; and
63.29 	(8) any additional information required by the commissioner.
63.30 	(b) The public utility must not implement the program until the commissioner approves 
63.31 	the public utility's plan submitted under this subdivision. The commissioner must approve 
63.32 	a plan under this subdivision that the commissioner determines is in the public interest no 
64.1 	later than December 31, 2019. Any proposed modifications to the plan approved under this 
64.2 	subdivision must be approved by the commissioner.
64.3 		Subd. 3.System eligibility. A solar energy system is eligible to receive financial benefits 
64.4 	under this section if it meets all of the following conditions:
64.5 	(1) the solar energy system must be located on or adjacent to a school building receiving 
64.6 	retail electric service from the public utility and completely located within the public utility's 
64.7 	electric service territory, provided that any land situated between the school building and 
64.8 	the site where the solar energy system is installed is owned by the school district where the 
64.9 	school building operates;
64.10 	(2) any energy storage system that is part of a solar energy system may only store energy 
64.11 	generated by an existing solar energy system serving the school or the solar energy system 
64.12 	receiving financial assistance under this section; and
64.13 	(3) the total aggregate nameplate capacity of all distributed generation serving the school 
64.14 	building, including any subscriptions to a community solar garden under section 216B.1641, 
64.15 	does not exceed the lesser of one megawatt alternating current or 120 percent of the school 
64.16 	building's average annual electric energy consumption.
64.17 		Subd. 4.Application process. (a) A school seeking financial assistance under this section 
64.18 	must submit an application to the public utility, including a plan for how the school plans 
64.19 	to use the solar energy system as a visible learning tool for students, teachers, and visitors 
64.20 	to the school, and how the solar energy system may be integrated into the school's curriculum.
64.21 	(b) The public utility must award financial assistance under this section on a first-come, 
64.22 	first-served basis.
64.23 	(c) The public utility must discontinue accepting applications under this section after 
64.24 	all funds appropriated under subdivision 5 are allocated to program participants, including 
64.25 	funds from canceled projects.
64.26 		Subd. 5.Benefits information. Before signing an agreement with the public utility to 
64.27 	receive financial assistance under this section, a school must obtain from the developer and 
64.28 	provide to the public utility information the developer shared with potential investors in the 
64.29 	project regarding future financial benefits to be realized from installation of a solar energy 
64.30 	system at the school, and potential financial risks.
64.31 		Subd. 6.Purchase rate; cost recovery; renewable energy credits. (a) The public utility 
64.32 	must purchase all of the electricity generated by a solar energy system receiving financial 
64.33 	assistance under this section at a rate of $0.105 per kilowatt-hour generated.
65.1 	(b) Payments by the public utility of the rate established under this subdivision to a 
65.2 	school receiving financial assistance under this section are fully recoverable by the public 
65.3 	utility through the public utility's fuel clause adjustment.
65.4 	(c) The renewable energy credits associated with the electricity generated by a solar 
65.5 	energy system installed under this section are the property of the public utility that is subject 
65.6 	to this section.
65.7 		Subd. 7.Limitation. (a) No more than 50 percent of the financial assistance provided 
65.8 	by the public utility to schools under this section may be provided to schools where the 
65.9 	proportion of students eligible for free and reduced-price lunch under the National School 
65.10 	Lunch Program is less than 50 percent.
65.11 	(b) No more than ten percent of the total amount of financial assistance provided by the 
65.12 	public utility to schools under this section may be provided to schools that are part of the 
65.13 	same school district.
65.14 		Subd. 8.Technical assistance. The commissioner must provide technical assistance to 
65.15 	schools to develop and execute projects under this section.
65.16 		Subd. 9.Application deadline. No application may be submitted under this section 
65.17 	after December 31, 2023.

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

65.19 	Sec. 46. [216C.401] ELECTRIC VEHICLE REBATES.
65.20 		Subdivision 1.Definition. (a) For the purposes of this section, the following terms have 
65.21 	the meanings given.
65.22 	(b) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a, 
65.23 	paragraphs (a) and (b), clause (3).
65.24 	(c) "New eligible electric vehicle" means an eligible electric vehicle that has not been 
65.25 	registered in any state.
65.26 	(d) "Used eligible electric vehicle" means an eligible electric vehicle that has previously 
65.27 	been registered in a state.
65.28 		Subd. 2.Eligibility. The purchaser of an electric vehicle is eligible for a rebate, subject 
65.29 	to the amounts and limits in subdivisions 3 and 4, if:
65.30 	(1) the electric vehicle:
65.31 	(i) has not been modified from the original manufacturer's specifications; and
66.1 	(ii) is purchased after the effective date of this act for use by the purchaser and not for 
66.2 	resale;
66.3 	(2) the purchaser:
66.4 	(i) is a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a), 
66.5 	when the electric vehicle is purchased;
66.6 	(ii) is a business that has a valid address in Minnesota from which business is conducted;
66.7 	(iii) is a nonprofit corporation incorporated under chapter 317A; or
66.8 	(iv) is a political subdivision of the state; and
66.9 	(3) the purchaser:
66.10 	(i) has not received a rebate or tax credit for the purchase of an electric vehicle from 
66.11 	Minnesota; and
66.12 	(ii) registers the electric vehicle in Minnesota.
66.13 		Subd. 3.Rebate amounts. (a) A $2,500 rebate may be issued under this section to an 
66.14 	eligible purchaser for the purchase of a new eligible electric vehicle.
66.15 	(b) A $500 rebate may be issued under this section to an eligible purchaser for the 
66.16 	purchase of a used eligible electric vehicle, provided the electric vehicle has not previously 
66.17 	been registered in Minnesota.
66.18 		Subd. 4.Limits. (a) The number of rebates allowed under this section are limited to:
66.19 	(1) no more than one rebate per resident per household; and
66.20 	(2) no more than one rebate per business entity per year.
66.21 	(b) A rebate must not be issued under this section for an electric vehicle with a 
66.22 	manufacturer's suggested retail price that exceeds $60,000.
66.23 		Subd. 5.Program administration. (a) Rebate applications under this section must be 
66.24 	filed with the commissioner on a form developed by the commissioner.
66.25 	(b) The commissioner must develop administrative procedures governing the application 
66.26 	and rebate award process. Applications must be reviewed and rebates awarded by the 
66.27 	commissioner on a first-come, first-served basis.
66.28 	(c) The commissioner may reduce the rebate amounts provided under subdivision 3 or 
66.29 	restrict program eligibility based on fund availability or other factors.
66.30 		Subd. 6.Expiration. This section expires June 30, 2024.

67.1 	Sec. 47. [216C.402] ELECTRIC VEHICLE PUBLIC CHARGING GRANT 
67.2 	PROGRAM.
67.3 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
67.4 	the meanings given.
67.5 	(b) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
67.6 	(c) "Electric vehicle charging station" means infrastructure that recharges an electric 
67.7 	vehicle's batteries by connecting the electric vehicle to:
67.8 	(1) a level two charger that provides a 208- or 240-volt alternating current power source; 
67.9 	or
67.10 	(2) a DC fast charger that has an electric output of 20 kilowatts or greater.
67.11 	(d) "Park-and-ride facility" has the meaning given in section 174.256, subdivision 2, 
67.12 	paragraph (b).
67.13 	(e) "Public electric vehicle charging station" means an electric charging station located 
67.14 	at a publicly available parking space.
67.15 		Subd. 2.Program. (a) The commissioner must award grants to help fund the installation 
67.16 	of a network of public electric vehicle charging stations in Minnesota, including locations 
67.17 	in state and regional parks, trailheads, and park-and-ride facilities. The commissioner must 
67.18 	issue a request for proposals to entities that have experience installing, owning, operating, 
67.19 	and maintaining electric vehicle charging stations. The request for proposal must establish 
67.20 	technical specifications that electric vehicle charging stations are required to meet.
67.21 	(b) The commissioner must consult with the commissioner of natural resources to develop 
67.22 	optimal locations for electric vehicle charging stations in state and regional parks, and with 
67.23 	the commissioner of transportation to develop optimal locations for electric vehicle charging 
67.24 	stations at park-and-ride facilities.
67.25 		Subd. 3.Electricity supplier. Electricity dispensed from an electric vehicle charging 
67.26 	station funded under this act must be purchased from the public utility subject to section 
67.27 	116C.779, subdivision 1.

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

67.29 	Sec. 48. Minnesota Statutes 2018, section 216C.435, subdivision 3a, is amended to read:
67.30 		Subd. 3a.Cost-effective energy improvements. "Cost-effective energy improvements" 
67.31 	mean:
68.1 	(1) any new construction, renovation, or retrofitting of:
68.2 	(i) qualifying commercial real property to improve energy efficiency that is permanently 
68.3 	affixed to the property, results in a net reduction in energy consumption without altering 
68.4 	the principal source of energy, and has been identified in an energy audit as repaying the 
68.5 	purchase and installation costs in 20 years or less, based on the amount of future energy 
68.6 	saved and estimated future energy prices; or
68.7 	(ii) (2) any renovation or retrofitting of qualifying residential real property that is 
68.8 	permanently affixed to the property and is eligible to receive an incentive through a program 
68.9 	offered by the electric or natural gas utility that provides service under section 216B.241
68.10 	to the property or is otherwise determined to be a cost-effective energy improvement by 
68.11 	the commissioner under section 216B.241, subdivision 1d, paragraph (a);
68.12 	(2) (3) permanent installation of new or upgraded electrical circuits and related equipment 
68.13 	to enable electrical vehicle charging; or
68.14 	(3) (4) a solar voltaic or solar thermal energy system attached to, installed within, or 
68.15 	proximate to a building that generates electrical or thermal energy from a renewable energy 
68.16 	source that has been identified in an energy audit or renewable energy system feasibility 
68.17 	study as repaying their purchase and installation costs in 20 years or less, based on the 
68.18 	amount of future energy saved and estimated future energy prices.

68.19 	Sec. 49. Minnesota Statutes 2018, section 216C.435, subdivision 8, is amended to read:
68.20 		Subd. 8.Qualifying commercial real property. "Qualifying commercial real property" 
68.21 	means a multifamily residential dwelling, or a commercial or industrial building, that the 
68.22 	implementing entity has determined, after review of an energy audit or renewable energy 
68.23 	system feasibility study, can be benefited by installation of cost-effective energy 
68.24 	improvements. Qualifying commercial real property includes new construction.

68.25 	Sec. 50. Minnesota Statutes 2018, section 216C.436, subdivision 4, is amended to read:
68.26 		Subd. 4.Financing terms. Financing provided under this section must have:
68.27 	(1) a cost-weighted average maturity not exceeding the useful life of the energy 
68.28 	improvements installed, as determined by the implementing entity, but in no event may a 
68.29 	term exceed 20 years;
68.30 	(2) a principal amount not to exceed the lesser of:
69.1 	(i) the greater of 20 percent of the assessed value of the real property on which the 
69.2 	improvements are to be installed or 20 percent of the real property's appraised value, accepted 
69.3 	or approved by the mortgage lender; or
69.4 	(ii) the actual cost of installing the energy improvements, including the costs of necessary 
69.5 	equipment, materials, and labor, the costs of each related energy audit or renewable energy 
69.6 	system feasibility study, and the cost of verification of installation; and
69.7 	(3) an interest rate sufficient to pay the financing costs of the program, including the 
69.8 	issuance of bonds and any financing delinquencies.

69.9 	Sec. 51. Minnesota Statutes 2018, section 216C.436, is amended by adding a subdivision 
69.10 	to read:
69.11 		Subd. 10.Improvements; real property or fixture. A cost-effective energy improvement 
69.12 	financed under a PACE loan program, including all equipment purchased in whole or in 
69.13 	part with loan proceeds under a loan program, is deemed real property or a fixture attached 
69.14 	to the real property.

69.15 	Sec. 52. [216C.45] POWER PLANT HOST COMMUNITY TRANSITION 
69.16 	PLANNING.
69.17 	The commissioner of commerce must coordinate with the commissioner of labor and 
69.18 	industry and the commissioner of employment and economic development to develop plans, 
69.19 	programs, and recommendations to mitigate the impacts on host communities and workers 
69.20 	resulting from the retirement of large electric generation facilities. The commissioners must 
69.21 	confer with stakeholders in preparing these plans and programs, including representatives 
69.22 	of local government units that host large electric generation facilities, workers and contractors 
69.23 	at large generation facilities, and the utilities that own large electric generation facilities.

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

69.25 	Sec. 53. Minnesota Statutes 2018, section 216F.04, is amended to read:
69.26 	216F.04 SITE PERMIT.
69.27 	(a) No person may construct an LWECS without a site permit issued by the Public 
69.28 	Utilities Commission.
69.29 	(b) Any person seeking to construct an LWECS shall submit an application to the 
69.30 	commission for a site permit in accordance with this chapter and any rules adopted by the 
69.31 	commission. The permitted site need not be contiguous land.
70.1 	(c) The commission shall make a final decision on an application for a site permit for 
70.2 	an LWECS within 180 days after acceptance of a complete application by the commission. 
70.3 	The commission may extend this deadline for cause.
70.4 	(d) The commission may place conditions in a permit and may deny, modify, suspend, 
70.5 	or revoke a permit.
70.6 	(e) The commission may require, as a condition of permit issuance, that the recipient of 
70.7 	a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts and 
70.8 	all of the permit recipient's construction contractors and subcontractors on the project pay 
70.9 	the prevailing wage rate, as defined in section 177.42. The commission may also require, 
70.10 	as a condition of modifying a site permit for an LWECS repowering project as defined in 
70.11 	section 216B.243, subdivision 8, paragraph (b), that the recipient of the site permit and all 
70.12 	of the recipient's construction contractors and subcontractors on the repowering project pay 
70.13 	the prevailing wage rate as defined in section 177.42.

70.14 	Sec. 54. Minnesota Statutes 2018, section 216F.08, is amended to read:
70.15 	216F.08 PERMIT AUTHORITY; ASSUMPTION BY COUNTIES.
70.16 	(a) A county board may, by resolution and upon written notice to the Public Utilities 
70.17 	Commission, assume responsibility for processing applications for permits required under 
70.18 	this chapter for LWECS with a combined nameplate capacity of less than 25,000 kilowatts. 
70.19 	The responsibility for permit application processing, if assumed by a county, may be 
70.20 	delegated by the county board to an appropriate county officer or employee. Processing by 
70.21 	a county shall be done in accordance with procedures and processes established under 
70.22 	chapter 394.
70.23 	(b) A county board that exercises its option under paragraph (a) may issue, deny, modify, 
70.24 	impose conditions upon, or revoke permits pursuant to this section. The action of the county 
70.25 	board about a permit application is final, subject to appeal as provided in section 394.27.
70.26 	(c) The commission shall, by order, establish general permit standards, including 
70.27 	appropriate property line set-backs, governing site permits for LWECS under this section. 
70.28 	The order must consider existing and historic commission standards for wind permits issued 
70.29 	by the commission. The general permit standards shall apply to permits issued by counties 
70.30 	and to permits issued by the commission for LWECS with a combined nameplate capacity 
70.31 	of less than 25,000 kilowatts. The commission or a county may grant a variance from a 
70.32 	general permit standard if the variance is found to be in the public interest, provided all 
70.33 	LWECS site permits issued by the commission or a county and all modifications of site 
71.1 	permits issued by the commission or a county for repowering projects comply with the 
71.2 	prevailing wage rate requirements under section 216F.04, paragraph (e).
71.3 	(d) The commission and the commissioner of commerce shall provide technical assistance 
71.4 	to a county with respect to the processing of LWECS site permit applications.

71.5 	Sec. 55. Minnesota Statutes 2018, section 326B.106, is amended by adding a subdivision 
71.6 	to read:
71.7 		Subd. 16.Voluntary adoption of stretch code. The Construction Codes Advisory 
71.8 	Council must establish a voluntary code of standards for the construction, reconstruction, 
71.9 	and alteration of public and private commercial and multifamily residential buildings, as 
71.10 	an appendix to the State Building Code. This voluntary code of standards must conform to 
71.11 	Sustainable Building 2030 standards, as defined in section 216B.241, subdivision 9, which 
71.12 	applies additional performance requirements without altering any underlying codes or safety 
71.13 	standards. The code sections contained in this appendix may be adopted by a local jurisdiction 
71.14 	at its election and become an official addendum to the baseline energy code in the 
71.15 	jurisdictions adopting them. When adopting the code sections contained in the appendix, 
71.16 	the local jurisdiction must not amend the code sections, but may specify a minimum size 
71.17 	for the buildings the stretch code will apply to. The minimum size must be at least 10,000 
71.18 	square feet.

71.19 	Sec. 56. METROPOLITAN COUNCIL; ELECTRIC BUS PURCHASES.
 71.20 	After the effective date of this act and until the appropriation made in section 62, 
71.21 	subdivision 5, is exhausted, any bus purchased by the Metropolitan Council for Metro 
71.22 	Transit bus service must operate solely on electricity provided by rechargeable on-board 
71.23 	batteries. The appropriation in section 62, subdivision 5, must be used to pay the incremental 
71.24 	cost of buses that operate solely on electricity provided by rechargeable on-board batteries 
71.25 	over diesel-operated buses that are otherwise comparable in size, features, and performance.

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

71.27 	Sec. 57. ELECTRIC SCHOOL BUS DEMONSTRATION GRANT.
 71.28 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
71.29 	the meanings given.
71.30 	(b) "Electric school bus" means a school bus powered solely by an electric motor drawing 
71.31 	current from rechargeable storage batteries, fuel cells, or other portable sources of electric 
71.32 	current.
72.1 	(c) "Electric vehicle charging station" means infrastructure that recharges an electric 
72.2 	vehicle's batteries by connecting the electric vehicle to:
72.3 	(1) a level 2 charger that provides a 240-volt alternating current power source; or
72.4 	(2) a DC fast charger that has an electric output of 20 kilowatts or greater.
72.5 	(d) "Private school bus contractor" means a person who contracts with a school district 
72.6 	to transport school district students to and from school and school activities on school buses 
72.7 	owned and operated by the person.
72.8 	(e) "School bus" has the meaning given in Minnesota Statutes, section 169.011, 
72.9 	subdivision 71. School bus does not include a Type III vehicle, as defined in Minnesota 
72.10 	Statutes, section 169.011, paragraph (h).
72.11 	(f) "School district" means an independent or special school district.
72.12 		Subd. 2.Purpose. The commissioner of education must award a grant to a school district 
72.13 	to purchase an electric school bus as a demonstration project to enable the school district, 
72.14 	the electric utility serving the school district, and, if applicable, the private school bus 
72.15 	contractor providing transportation services to the school district to gain experience operating 
72.16 	an electric school bus and to assess its performance.
72.17 		Subd. 3.Eligibility. A school district located within the electric retail service area of 
72.18 	the public utility subject to Minnesota Statutes, section 116C.779, subdivision 1, that owns 
72.19 	and operates school buses or contracts with a private school bus contractor is eligible to 
72.20 	apply for a grant under this section.
72.21 		Subd. 4.Application process. An eligible applicant must submit an application to the 
72.22 	commissioner of education on a form designed by the commissioner of education. The 
72.23 	commissioner of education must develop administrative procedures governing the application 
72.24 	and grant award process.
72.25 		Subd. 5.Application content. An application for a grant under this section must include:
72.26 	(1) the name of the school district or districts where the electric school bus is proposed 
72.27 	to operate;
72.28 	(2) a description of the route, timing of operation, number of students to be transported, 
72.29 	and other factors affecting the performance characteristics that an electric school bus 
72.30 	performance must meet;
72.31 	(3) certification from the electric utility serving the school district, and, if applicable, 
72.32 	the private school bus contractor providing transportation services to the school district, 
73.1 	that the electric utility and private school bus contractor fully support and are full partners 
73.2 	in implementing the demonstration project, including a list of tasks the electric utility and 
73.3 	private school bus contractor commit to conduct and any voluntary financial contributions 
73.4 	to the project;
73.5 	(4) certification from the electric utility serving the school district that it commits to pay 
73.6 	the costs to purchase and install an electric vehicle charging station in a convenient location 
73.7 	to recharge the batteries of the electric school bus;
73.8 	(5) evidence that the proposed electric school bus has access to an electric vehicle 
73.9 	charging station at a convenient location;
73.10 	(6) if the school district contracts with a private school bus contractor:
73.11 	(i) a copy of a signed agreement between the school district and the private school bus 
73.12 	contractor that protects the state's interest in the electric school bus purchased with the grant 
73.13 	in the case of the termination of the private school bus contractor's contract with the school 
73.14 	district or other contingencies; and
73.15 	(ii) written certification that any revenues paid to the private school bus contractor by 
73.16 	the utility providing retail electric service to the private school bus contractor that result 
73.17 	from the purchase of or access to the electricity stored in the batteries of the electric school 
73.18 	bus purchased with a grant under this section must be forwarded to the school district; and
73.19 	(7) any additional information required by the commissioner of education.
73.20 		Subd. 6.Eligible expenditures. Grant funds awarded under this section may be expended 
73.21 	to:
73.22 	(1) purchase an electric school bus;
73.23 	(2) pay the cost of electricity to charge the batteries of the electric school bus; and
73.24 	(3) pay repair and maintenance costs for the electric school bus.
73.25 		Subd. 7.Reports. On or before the first anniversary of the initial operation of a school 
73.26 	bus funded by a grant under this section, and on or before the same date in each of the 
73.27 	following two years, the school district awarded the grant, in collaboration with the electric 
73.28 	utility serving the school district, and, if applicable, the private school bus contractor 
73.29 	providing transportation services to the school district, must submit a report describing the 
73.30 	performance of the electric school bus to the chairs and ranking minority members of the 
73.31 	senate and house of representatives committees with primary jurisdiction over energy policy, 
73.32 	transportation policy, and education policy, and to the commissioner of education. At a 
74.1 	minimum, the report must contain the following information regarding the performance of 
74.2 	the electric school bus:
74.3 	(1) the number of miles traveled per day and per year;
74.4 	(2) the cost of recharging, and any steps taken to minimize the costs by charging at 
74.5 	off-peak times;
74.6 	(3) operating costs per mile;
74.7 	(4) miles driven per kilowatt hour;
74.8 	(5) the number of days the electric school bus was out of service for repairs;
74.9 	(6) discussion of the qualitative aspects of performance, including the impact of extreme 
74.10 	cold on bus performance; and
74.11 	(7) any other information deemed relevant by the school district.

74.12 	Sec. 58. GREENHOUSE GAS EMISSIONS REDUCTION STRATEGY; REPORT.
 74.13 	(a) The commissioner of commerce must develop benchmarks and strategies designed 
74.14 	to significantly accelerate the reduction in greenhouse gas emissions in Minnesota by 2030, 
74.15 	including strategies to:
74.16 	(1) increase energy efficiency in all buildings, including residential;
74.17 	(2) provide consumers with tools to manage personal energy use automatically, remotely, 
74.18 	and electronically;
74.19 	(3) present consumers with financial incentives to shift energy use to periods when 
74.20 	systemwide demand and the cost of generation are low;
74.21 	(4) work toward electrifying all sectors of the economy currently powered by fossil 
74.22 	fuels;
74.23 	(5) increase carbon sequestration in Minnesota lands and wetlands;
74.24 	(6) incentivize the adoption of energy storage systems to accelerate the use of wind and 
74.25 	solar resources; and
74.26 	(7) modernize the electric grid and promote the use of distributed energy resources.
74.27 	(b) By November 30, 2019, the commissioner must submit a report containing the 
74.28 	benchmarks and strategies to the chairs and ranking minority members of the senate and 
74.29 	house of representatives committees with primary jurisdiction over energy policy.

75.1 	Sec. 59. PRAIRIE ISLAND RENEWABLE ENERGY.
75.2 		Subdivision 1.Program established. The Prairie Island Renewable Energy Project is 
75.3 	established to enable the Prairie Island Indian Community to develop renewable energy 
75.4 	systems.
75.5 		Subd. 2.Grant. The commissioner of employment and economic development must 
75.6 	enter into a grant contract with the Prairie Island Indian Community to provide funding to 
75.7 	stimulate implementation of renewable energy projects benefiting the Prairie Island Indian 
75.8 	Community or its members. Renewable energy projects under this section include but are 
75.9 	not limited to geothermal energy and on-site community solar gardens at Prairie Island, 
75.10 	Upper Island, Mount Frontenac, the assisted living center located near the intersection of 
75.11 	Highway 361 and signed U.S. Highway 61, and any residential development on land owned 
75.12 	by the Prairie Island Indian Community in West Lakeland Township. Any examination 
75.13 	conducted by the commissioner of employment and economic development to determine 
75.14 	the sufficiency of the financial stability and capacity of the Prairie Island Indian Community 
75.15 	to carry out the purposes of this grant is limited to the Community Services Department of 
75.16 	the Prairie Island Indian Community.
75.17 		Subd. 3.Report. The Prairie Island Indian Community must file a report on July 1, 
75.18 	2020, and each July 1 thereafter until the project is complete, describing the progress made 
75.19 	in implementing the project and the uses of expended funds. A final report must be completed 
75.20 	within 90 days of the date the project is complete.

75.21 	EFFECTIVE DATE. This section is effective June 1, 2019.

75.22 	Sec. 60. COORDINATED ELECTRIC TRANSMISSION STUDY.
 75.23 	(a) Each entity subject to Minnesota Statutes, section 216B.2425, must participate in a 
75.24 	coordinated engineering study to identify transmission network enhancements necessary to 
75.25 	maintain system reliability in the event large generation resources are retired. Specifically, 
75.26 	the study must evaluate what enhancements are necessary in the event large generation 
75.27 	resources that reach the end of the large generation resource's depreciation term or operating 
75.28 	license term within 20 years of the effective date of this section are retired. The study must 
75.29 	also evaluate the transmission enhancements that may be necessary to interconnect 
75.30 	replacement generation, including but not limited to:
75.31 	(1) 7,000 megawatts of generation from eligible energy technologies, as defined in 
75.32 	Minnesota Statutes, section 216B.1691, subdivision 1, by 2025; and
76.1 	(2) any replacement generation and renewable resource additions, including generation 
76.2 	tie lines, anticipated to occur by 2035 in any utility's integrated resource plan filed with or 
76.3 	approved by the Public Utilities Commission.
76.4 	(b) When setting the scope for the study and as needed while the study is being conducted, 
76.5 	utilities must consult with the commissioner of commerce, technical representatives of 
76.6 	renewable energy resource developers, and other interested entities to discuss and identify 
76.7 	needed generation tie lines to support the continued orderly development of renewable 
76.8 	resources in Minnesota. The study must include any analysis performed by the Midcontinent 
76.9 	Independent System Operator.
76.10 	(c) A report on the study must be completed and submitted to the Public Utilities 
76.11 	Commission by November 1, 2020, and include a preliminary plan to build the needed 
76.12 	transmission network enhancements. Reasonable and prudent costs for the study are 
76.13 	recoverable through the mechanism provided under Minnesota Statutes, section 216B.1645, 
76.14 	subdivision 2.

76.15 	Sec. 61. ENERGY UTILITY DIVERSITY STAKEHOLDER GROUP; REPORT.
 76.16 	(a) The Public Utilities Commission must convene a stakeholder group to examine the 
76.17 	challenges and opportunities for Minnesota's energy utilities to attract a diverse workforce 
76.18 	with the skills needed to advance a 21st century industry and to increase the supplier diversity 
76.19 	of energy utilities. The stakeholder group must include but is not limited to stakeholders 
76.20 	representative of public utilities as defined in Minnesota Statutes, section 216B.02, 
76.21 	subdivision 4, municipal, electric, or gas utilities, and electric or gas cooperative associations. 
76.22 	The executive director of the commission must convene the first meeting of the stakeholder 
76.23 	group.
76.24 	(b) The stakeholder group must:
76.25 	(1) examine current and projected employment in the energy utility sector;
76.26 	(2) provide information on possible approaches to assist workers and energy utilities to 
76.27 	develop a diverse workforce that has the skills to build, maintain, and operate the electricity 
76.28 	system of the future;
76.29 	(3) review key trends that have shaped employment in this sector and the demographics 
76.30 	of the sector, including the underrepresentation of women, veterans, and minorities in 
76.31 	employment and leadership;
76.32 	(4) identify the challenges to replacing retiring workers;
77.1 	(5) examine the imbalance of available worker skills to utility workforce needs; and
77.2 	(6) identify the challenges and possible approaches to increasing supplier diversity.
77.3 	(c) The stakeholder group must also consider whether information regarding workforce 
77.4 	and supplier diversity should be included and considered as part of any resource plan filed 
77.5 	by a utility with the commission.
77.6 	(d) By January 15, 2020, the stakeholder group must issue a report to the chairs and 
77.7 	ranking minority members of the house of representatives and senate committees with 
77.8 	jurisdiction over energy policy and finance identifying its findings and recommendations 
77.9 	for establishing a more diverse workforce and increasing supplier diversity within the electric 
77.10 	energy sector.

77.11 	Sec. 62. APPROPRIATION.
 77.12 		Subdivision 1.University of Minnesota renewable energy transition. (a) 
77.13 	Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
77.14 	$6,000,000 in fiscal year 2020 is appropriated from the renewable development account 
77.15 	established under Minnesota Statutes, section 116C.779, subdivision 1, to the Board of 
77.16 	Regents of the University of Minnesota to establish goals and benchmarks and implement 
77.17 	a rapid transition toward the use of renewable fuels for electricity and thermal energy in 
77.18 	campus buildings by 2030. This appropriation may only be expended on activities located 
77.19 	within the electric service area of the public utility subject to Minnesota Statutes, section 
77.20 	116C.779, subdivision 1. This appropriation is available until December 31, 2024.
77.21 	(b) As a condition of receiving the appropriation under paragraph (a), the Board of 
77.22 	Regents of the University of Minnesota must submit a report by January 15, 2020, and 
77.23 	biennially thereafter until January 15, 2030, on the progress made toward the goals and 
77.24 	benchmarks established under paragraph (a) to the chairs and ranking minority members 
77.25 	of the senate and house of representatives committees and divisions with jurisdiction over 
77.26 	energy, climate, the environment, and natural resources.
77.27 		Subd. 2.Minnesota State Colleges and Universities renewable energy transition. (a) 
77.28 	Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
77.29 	$6,000,000 in fiscal year 2020 is appropriated from the renewable development account 
77.30 	established in Minnesota Statutes, section 116C.779, subdivision 1, to the Board of Trustees 
77.31 	of the Minnesota State Colleges and Universities to establish goals and benchmarks and 
77.32 	implement a rapid transition toward the use of renewable fuels for electricity and thermal 
77.33 	energy in campus buildings by 2030. This appropriation may only be expended on activities 
78.1 	located within the electric service area of the public utility subject to Minnesota Statutes, 
78.2 	section 116C.779, subdivision 1. This appropriation is available until December 31, 2024.
78.3 	(b) As a condition of receiving the appropriation provided under paragraph (a), the Board 
78.4 	of Trustees of the Minnesota State Colleges and Universities must submit a report by January 
78.5 	15, 2020, and biennially thereafter until January 15, 2030, on the steps taken and progress 
78.6 	made toward achieving the goals and benchmarks established under paragraph (a) to the 
78.7 	chairs and ranking minority members of the senate and house of representatives committees 
78.8 	and divisions with jurisdiction over energy, climate, the environment, and natural resources.
78.9 		Subd. 3.Solar devices. Notwithstanding Minnesota Statutes, section 116C.779, 
78.10 	subdivision 1, paragraph (j), $2,000,000 in fiscal year 2020 is appropriated from the 
78.11 	renewable development account established in Minnesota Statutes, section 116C.779, 
78.12 	subdivision 1, to the commissioner of natural resources to install and expand solar 
78.13 	photovoltaic or solar thermal energy devices in state parks served with electricity by the 
78.14 	public utility subject to Minnesota Statutes, section 116C.779, subdivision 1. The department 
78.15 	owns any renewable energy credits associated with the electricity generated by a solar 
78.16 	photovoltaic device funded with this appropriation. This appropriation is available until 
78.17 	December 31, 2024.
78.18 		Subd. 4.Solar for schools. (a) Notwithstanding Minnesota Statutes, section 116C.779, 
78.19 	subdivision 1, paragraph (j), $16,000,000 in fiscal year 2020 is appropriated from the 
78.20 	renewable development account established under Minnesota Statutes, section 116C.779, 
78.21 	subdivision 1, to the commissioner of commerce for transfer to the public utility that is 
78.22 	subject to Minnesota Statutes, section 216C.376, to award grants and financial assistance 
78.23 	to schools under the solar for schools program under Minnesota Statutes, section 216C.376. 
78.24 	This appropriation is available until December 31, 2024.
78.25 	(b) This appropriation may be used by the commissioner to reimburse the reasonable 
78.26 	costs incurred by the department to administer the solar for schools program under Minnesota 
78.27 	Statutes, section 216C.375, and to review and approve the public utility's plan, and any 
78.28 	proposed modifications to that plan and to provide technical assistance, under Minnesota 
78.29 	Statutes, section 216C.376, subdivisions 2 and 8. This appropriation is available until 
78.30 	December 31, 2024.
78.31 		Subd. 5.Metropolitan Council; electric buses. Notwithstanding Minnesota Statutes, 
78.32 	section 116C.779, subdivision 1, paragraph (j), $5,000,000 in fiscal year 2019 is appropriated 
78.33 	from the renewable development account under Minnesota Statutes, section 116C.779, 
78.34 	subdivision 1, to the Metropolitan Council to defray the cost of purchasing electric buses, 
79.1 	as described in section 56. Any funds remaining from this appropriation that are insufficient 
79.2 	to fully fund the incremental cost of purchasing an electric bus rather than a diesel-operated 
79.3 	bus cancel back to the renewable development account. This appropriation is available until 
79.4 	December 31, 2020.
79.5 		Subd. 6.Electric school bus grant. Notwithstanding Minnesota Statutes, section 
79.6 	116C.779, subdivision 1, paragraph (j), $500,000 in fiscal year 2020 is appropriated from 
79.7 	the renewable development account under Minnesota Statutes, section 116C.779, subdivision 
79.8 	1, to the commissioner of education to award a grant to a school district located within the 
79.9 	retail electric service area of the public utility subject to Minnesota Statutes, section 
79.10 	116C.779, subdivision 1, to purchase an electric school bus. This appropriation is available 
79.11 	until December 31, 2024.
79.12 		Subd. 7.Community solar garden administration. (a) Notwithstanding Minnesota 
79.13 	Statutes, section 116C.779, subdivision 1, paragraph (j), $750,000 in fiscal year 2020 and 
79.14 	$750,000 in fiscal year 2021 are appropriated from the renewable development account 
79.15 	established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of 
79.16 	commerce for the purpose of funding the Department of Commerce's administrative and 
79.17 	enforcement activities under Minnesota Statutes, section 216B.1641, subdivision 4.
79.18 	(b) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph 
79.19 	(j), $1,000,000 in fiscal year 2020 and $1,000,000 in fiscal year 2021 are appropriated from 
79.20 	the renewable development account established in Minnesota Statutes, section 116C.779, 
79.21 	subdivision 1, to the commissioner of commerce for grants under Minnesota Statutes, section 
79.22 	216B.1643.
79.23 	(c) Up to three percent of the appropriation made in paragraph (b) is available to the 
79.24 	commissioner of commerce for the reasonable costs of administrating the grant program in 
79.25 	Minnesota Statutes, section 216B.1643.
79.26 		Subd. 8.Prairie Island Renewable Energy project. Notwithstanding Minnesota 
79.27 	Statutes, section 116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2020 and 
79.28 	$3,000,000 in fiscal year 2021 are appropriated from the renewable development account 
79.29 	under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of 
79.30 	employment and economic development for a grant to the Prairie Island Indian Community 
79.31 	to implement the Prairie Island Renewable Energy project under section 59. This 
79.32 	appropriation is available until December 31, 2024.
79.33 		Subd. 9.Electric vehicle rebates. Notwithstanding Minnesota Statutes, section 116C.779, 
79.34 	subdivision 1, paragraph (j), $6,900,000 in fiscal year 2020 is appropriated from the 
80.1 	renewable development account established in Minnesota Statutes, section 116C.779, 
80.2 	subdivision 1, to the commissioner of commerce to award rebates to eligible electric vehicle 
80.3 	purchasers under Minnesota Statutes, section 216C.401. Appropriations from this paragraph 
80.4 	must be used to award rebates to eligible purchasers who reside within the retail electric 
80.5 	service area of the public utility subject to Minnesota Statutes, section 116C.779, subdivision 
80.6 	1. This appropriation is available until December 31, 2024.
80.7 		Subd. 10.Electric vehicle charging stations. Notwithstanding Minnesota Statutes, 
80.8 	section 116C.779, subdivision 1, paragraph (j), $2,500,000 in fiscal year 2020 is appropriated 
80.9 	from the renewable development account established in Minnesota Statutes, section 
80.10 	116C.779, subdivision 1, to the commissioner of commerce to award grants to install electric 
80.11 	vehicle charging stations under Minnesota Statutes, section 216C.402. Appropriations from 
80.12 	this paragraph must be used to award grants to install electric vehicle charging stations 
80.13 	within the retail electric service area of the public utility subject to Minnesota Statutes, 
80.14 	section 116C.779, subdivision 1. Up to $600,000 of this appropriation may be used to fund 
80.15 	electric vehicle charging stations in state and regional parks and up to $100,000 may be 
80.16 	used to fund electric vehicle charging stations in park-and-ride facilities. Unexpended funds 
80.17 	from this $700,000 may be used to fund electric vehicle charging stations in either location. 
80.18 	This appropriation is available until December 31, 2024.
80.19 		Subd. 11.Stretch code. Notwithstanding Minnesota Statutes, section 116C.779, 
80.20 	subdivision 1, paragraph (j), $100,000 in fiscal year 2020 is appropriated from the renewable 
80.21 	development account established in Minnesota Statutes, section 116C.779, subdivision 1, 
80.22 	to the commissioner of commerce for transfer to the Center for Sustainable Building Research 
80.23 	at the University of Minnesota to provide technical assistance to local jurisdictions that 
80.24 	adopt a voluntary stretch code under Minnesota Statutes, section 326B.106, subdivision 16. 
80.25 	This is a onetime appropriation. This appropriation is available until December 31, 2024.
80.26 		Subd. 12.Coordinated electric transmission study. Notwithstanding section 116C.779, 
80.27 	subdivision 1, paragraph (j), $1,000,000 in fiscal year 2020 is appropriated from the 
80.28 	renewable development account established in Minnesota Statutes, section 116C.779, 
80.29 	subdivision 1, to the commissioner of commerce to conduct the transmission study required 
80.30 	under section 60.

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

80.32 	Sec. 63. REPEALER.
 80.33 	Minnesota Statutes 2018, section 216B.241, subdivisions 1, 2c, and 4, are repealed.

APPENDIX 

Repealed Minnesota Statutes: DIVH1833-1 

216B.241 ENERGY CONSERVATION IMPROVEMENT.Subdivision 1.Definitions. 
For purposes of this section and section 216B.16, subdivision 6b, the terms defined in this subdivision have the meanings given them. 

(a) "Commission" means the Public Utilities Commission. 

(b) "Commissioner" means the commissioner of commerce. 

(c) "Department" means the Department of Commerce. 

(d) "Energy conservation" means demand-side management of energy supplies resulting in a net reduction in energy use. Load management that reduces overall energy use is energy conservation. 

(e) "Energy conservation improvement" means a project that results in energy efficiency or energy conservation. Energy conservation improvement may include waste heat that is recovered and converted into electricity, but does not include electric utility infrastructure projects approved by the commission under section 216B.1636. Energy conservation improvement also includes waste heat recovered and used as thermal energy. 

(f) "Energy efficiency" means measures or programs, including energy conservation measures or programs, that target consumer behavior, equipment, processes, or devices designed to produce either an absolute decrease in consumption of electric energy or natural gas or a decrease in consumption of electric energy or natural gas on a per unit of production basis without a reduction in the quality or level of service provided to the energy consumer. 

(g) "Gross annual retail energy sales" means annual electric sales to all retail customers in a utility's or association's Minnesota service territory or natural gas throughput to all retail customers, including natural gas transportation customers, on a utility's distribution system in Minnesota. For purposes of this section, gross annual retail energy sales exclude: 

(1) gas sales to: 

(i) a large energy facility; 

(ii) a large customer facility whose natural gas utility has been exempted by the commissioner under subdivision 1a, paragraph (b), with respect to natural gas sales made to the large customer facility; and 

(iii) a commercial gas customer facility whose natural gas utility has been exempted by the commissioner under subdivision 1a, paragraph (c), with respect to natural gas sales made to the commercial gas customer facility; and 

(2) electric sales to a large customer facility whose electric utility has been exempted by the commissioner under subdivision 1a, paragraph (b), with respect to electric sales made to the large customer facility. 

(h) "Investments and expenses of a public utility" includes the investments and expenses incurred by a public utility in connection with an energy conservation improvement, including but not limited to: 

(1) the differential in interest cost between the market rate and the rate charged on a no-interest or below-market interest loan made by a public utility to a customer for the purchase or installation of an energy conservation improvement; 

(2) the difference between the utility's cost of purchase or installation of energy conservation improvements and any price charged by a public utility to a customer for such improvements. 

(i) "Large customer facility" means all buildings, structures, equipment, and installations at a single site that collectively (1) impose a peak electrical demand on an electric utility's system of not less than 20,000 kilowatts, measured in the same way as the utility that serves the customer facility measures electrical demand for billing purposes or (2) consume not less than 500 million cubic feet of natural gas annually. In calculating peak electrical demand, a large customer facility may include demand offset by on-site cogeneration facilities and, if engaged in mineral extraction, may aggregate peak energy demand from the large customer facility's mining and processing operations. 

(j) "Large energy facility" has the meaning given it in section 216B.2421, subdivision 2, clause (1). 

(k) "Load management" means an activity, service, or technology to change the timing or the efficiency of a customer's use of energy that allows a utility or a customer to respond to wholesale market fluctuations or to reduce peak demand for energy or capacity. 

(l) "Low-income programs" means energy conservation improvement programs that directly serve the needs of low-income persons, including low-income renters. 

(m) "Qualifying utility" means a utility that supplies the energy to a customer that enables the customer to qualify as a large customer facility. 

(n) "Waste heat recovered and used as thermal energy" means capturing heat energy that would otherwise be exhausted or dissipated to the environment from machinery, buildings, or industrial processes and productively using such recovered thermal energy where it was captured or distributing it as thermal energy to other locations where it is used to reduce demand-side consumption of natural gas, electric energy, or both. 

(o) "Waste heat recovery converted into electricity" means an energy recovery process that converts otherwise lost energy from the heat of exhaust stacks or pipes used for engines or manufacturing or industrial processes, or the reduction of high pressure in water or gas pipelines. 

Subd. 2c.Performance incentives. 
By December 31, 2008, the commission shall review any incentive plan for energy conservation improvement it has approved under section 216B.16, subdivision 6c, and adjust the utility performance incentives to recognize making progress toward and meeting the energy-savings goals established in subdivision 1c. 

Subd. 4.Federal law prohibitions. 
If investments by public utilities in energy conservation improvements are in any manner prohibited or restricted by federal law and there is a provision under which the prohibition or restriction may be waived, then the commission, the governor, or any other necessary state agency or officer shall take all necessary and appropriate steps to secure a waiver with respect to those public utility investments in energy conservation improvements included in this section.