1.1 	A bill for an act
1.2 	relating to jobs; appropriating money for the Department of Employment and 
1.3 	Economic Development, Department of Labor and Industry, Department of 
1.4 	Commerce, Public Utilities Commission, the Bureau of Mediation Services, and 
1.5 	Workers' Compensation Court of Appeals; modifying use of Minnesota investment 
1.6 	fund; establishing an airport infrastructure renewal (AIR) grant program; modifying 
1.7 	the youth skills training program; modifying retainage requirements for certain 
1.8 	public contracts and building and construction contracts; providing uniformity for 
1.9 	employment mandates on private employers; prohibiting wage theft; adopting 
1.10 	recommendations from the Workers' Compensation Advisory Council; modifying 
1.11 	the regulation of real estate appraisers; modifying the solar energy incentive 
1.12 	program; modifying the community solar garden program; eliminating the size 
1.13 	limitation on hydropower sources that may satisfy the renewable energy standard; 
1.14 	abolishing the nuclear power plant certificate of need prohibition; modifying the 
1.15 	commercial PACE program; prohibiting use of funds for certain legal proceedings; 
1.16 	modifying conservation improvement program requirements; amending the 
1.17 	renewable development account public utility annual contribution; establishing 
1.18 	criteria for utility cost recovery of energy storage system pilot projects; establishing 
1.19 	a grant program to assist public school districts to install solar energy systems; 
1.20 	establishing an electric vehicle charging station revolving loan program; 
1.21 	establishing a net zero emissions project; establishing a process to compensate 
1.22 	businesses for loss of business opportunity; establishing an advisory task force on 
1.23 	green roofs; requiring a cost-benefit analysis; requiring certain employment 
1.24 	information translated to an employee; prohibiting a nuclear plant from recovering 
1.25 	certain expenses; requiring an energy goals analysis; requiring solar site 
1.26 	management reporting; modifying crime of damage to property of public service 
1.27 	facilities, utilities, and pipelines; making policy and technical changes; appropriating 
1.28 	money; modifying fees; establishing criminal penalties; requiring reports; amending 
1.29 	Minnesota Statutes 2018, sections 15.72, subdivision 2; 46.131, subdivision 11, 
1.30 	by adding a subdivision; 82B.021, subdivisions 14, 15; 82B.073, by adding a 
1.31 	subdivision; 82B.09, subdivision 3; 82B.095, by adding a subdivision; 82B.11, 
1.32 	subdivision 6, by adding a subdivision; 82B.13, subdivision 1; 82B.195, subdivision 
1.33 	2; 82B.21; 116C.779, subdivision 1; 116C.7792; 116J.035, subdivision 7; 175.46, 
1.34 	subdivisions 3, 13; 176.1812, subdivision 2; 176.231, subdivision 1; 177.23, 
1.35 	subdivision 7; 177.27, subdivision 1; 177.32, subdivision 1; 179.86, subdivision 
1.36 	3; 181.03, subdivision 1, by adding subdivisions; 181.635, subdivision 2; 216B.16, 
1.37 	subdivision 6a, by adding a subdivision; 216B.1641; 216B.1642, subdivision 2; 
1.38 	216B.1691, subdivision 1; 216B.241, subdivisions 1c, 1d, 2, 2b, 3, 7; 216B.2422, 
2.1 	subdivision 1, by adding a subdivision; 216B.243, subdivision 3b; 216C.435, 
2.2 	subdivisions 3a, 8; 216C.436, subdivision 4, by adding a subdivision; 326B.821, 
2.3 	subdivision 21; 337.10, subdivision 4; 341.30, subdivision 1; 341.32, subdivision 
2.4 	1; 341.321; 469.055, by adding a subdivision; 609.594; 609.6055; Laws 2017, 
2.5 	chapter 94, article 1, section 2, subdivision 3; article 10, sections 28; 29; proposing 
2.6 	coding for new law in Minnesota Statutes, chapters 116J; 116L; 181; 216B; 216C; 
2.7 	repealing Minnesota Statutes 2018, sections 82B.021, subdivision 17; 82B.095, 
2.8 	subdivision 2; 82B.10, subdivisions 1, 2, 3, 4, 5, 6, 8, 9; 82B.11, subdivision 2; 
2.9 	82B.12; 82B.13, subdivisions 1a, 3, 4, 5, 6, 7, 8; 82B.14; 216B.241, subdivision 
2.10 	1b; 469.084, subdivision 1a.
2.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.12 	ARTICLE 1
2.13 	APPROPRIATIONS

2.14
2.15	Section 1. JOBS AND ECONOMIC DEVELOPMENT, ENERGY AND UTILITIES, 
AND COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS.
 	
2.16 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.17 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.18 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.19 	The figures "2020" and "2021" used in this article mean that the appropriations listed under 
2.20 	them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. 
2.21 	"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" 
2.22 	is fiscal years 2020 and 2021.

2.23				APPROPRIATIONS
	
2.24				Available for the Year
	
2.25				Ending June 30
	
2.26					2020
		2021

2.27
2.28	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.29	Subdivision 1.Total Appropriation
 	$
	119,123,000
	$
	114,647,000

2.30	Appropriations by Fund
	
2.31		2020
	2021
	
2.32	General
	87,286,000
	82,810,000
	
2.33	Remediation
	700,000
	700,000
	
2.34
2.35	Workforce 
Development
	31,137,000
	31,137,000
	
2.36 	The amounts that may be spent for each 
2.37 	purpose are specified in the following 
2.38 	subdivisions.

3.1	Subd. 2.Business and Community Development
 		40,762,000
		38,286,000

3.2	Appropriations by Fund
	
3.3	General
	38,587,000
	36,111,000
	
3.4	Remediation
	700,000
	700,000
	
3.5
3.6	Workforce 
Development
	1,475,000
	1,475,000
	
3.7 	(a)(1) $11,500,000 the first year and 
3.8 	$12,500,000 the second year are for the 
3.9 	Minnesota investment fund under Minnesota 
3.10 	Statutes, section 116J.8731. Of this amount, 
3.11 	up to $250,000 is for administration and 
3.12 	monitoring of the program. This appropriation 
3.13 	is available until June 30, 2023. 
3.14 	Notwithstanding Minnesota Statutes, section 
3.15 	116J.8731, funds appropriated to the 
3.16 	commissioner for the Minnesota investment 
3.17 	fund may be used for the redevelopment 
3.18 	program under Minnesota Statutes, sections 
3.19 	116J.575 and 116J.5761, at the discretion of 
3.20 	the commissioner. Grants under this paragraph 
3.21 	are not subject to the grant amount limitation 
3.22 	under Minnesota Statutes, section 116J.8731;
3.23 	(2) of the amount appropriated in fiscal year 
3.24 	2020, $2,000,000 is for a loan to a paper mill 
3.25 	in Duluth to support the operation and 
3.26 	manufacture of packaging paper grades. The 
3.27 	company that owns the paper mill must spend 
3.28 	$25,000,000 on expansion activities by 
3.29 	December 31, 2020, in order to be eligible to 
3.30 	receive funds in this appropriation. This 
3.31 	appropriation is onetime and may be used for 
3.32 	the mill's equipment, materials, supplies, and 
3.33 	other operating expenses. The commissioner 
3.34 	of employment and economic development 
3.35 	shall forgive a portion of the loan each year 
3.36 	after verification that the mill has retained 200 
4.1 	full-time jobs over a period of five years and 
4.2 	has satisfied other performance goals and 
4.3 	contractual obligations as required under 
4.4 	Minnesota Statutes, section 116J.8731;
4.5 	(3) of the amount appropriated in fiscal year 
4.6 	2020, $1,000,000 is for the airport 
4.7 	infrastructure renewal (AIR) grant program 
4.8 	under Minnesota Statutes, section 116J.439; 
4.9 	and
4.10 	(4) of the amount appropriated in fiscal year 
4.11 	2020, $100,000 is for a grant to FIRST in 
4.12 	Upper Midwest to support competitive 
4.13 	robotics teams. Funds must be used to make 
4.14 	up to five awards of no more than $20,000 
4.15 	each to Minnesota-based public entities or 
4.16 	private nonprofit organizations for the creation 
4.17 	of competitive robotics hubs. Awards may be 
4.18 	used for tools, equipment, and physical space 
4.19 	to be utilized by robotics teams. At least 50 
4.20 	percent of grant funds must be used outside 
4.21 	of the seven-county metropolitan area, as 
4.22 	defined under Minnesota Statutes, section 
4.23 	473.121, subdivision 2. The grant recipient 
4.24 	shall report to the chairs and ranking minority 
4.25 	members of the legislative committees with 
4.26 	jurisdiction over jobs and economic growth 
4.27 	by February 1, 2021, on the status of awards 
4.28 	and include information on the number and 
4.29 	amount of awards made, the number of 
4.30 	customers served, and any outcomes resulting 
4.31 	from the grant. The grant requires a 50 percent 
4.32 	match from nonstate sources.
4.33 	(b) $8,000,000 each year is for the Minnesota 
4.34 	job creation fund under Minnesota Statutes, 
4.35 	section 116J.8748. Of this amount, up to 
5.1 	$160,000 is for administration and monitoring 
5.2 	of the program. This appropriation is available 
5.3 	until June 30, 2023.
5.4 	(c) $1,000,000 each year is for the Minnesota 
5.5 	emerging entrepreneur loan program under 
5.6 	Minnesota Statutes, section 116M.18. Funds 
5.7 	available under this paragraph are for transfer 
5.8 	into the emerging entrepreneur program 
5.9 	special revenue fund account created under 
5.10 	Minnesota Statutes, chapter 116M, and are 
5.11 	available until June 30, 2023.
5.12 	(d) $1,350,000 each year from the workforce 
5.13 	development fund is for job training costs 
5.14 	under Minnesota Statutes, section 116L.42.
5.15 	(e) $1,787,000 each year is for the greater 
5.16 	Minnesota business development public 
5.17 	infrastructure grant program under Minnesota 
5.18 	Statutes, section 116J.431. This appropriation 
5.19 	is available until June 30, 2023.
5.20 	(f) $139,000 each year is for the Center for 
5.21 	Rural Policy and Development.
5.22 	(g) $1,772,000 each year is for contaminated 
5.23 	site cleanup and development grants under 
5.24 	Minnesota Statutes, sections 116J.551 to 
5.25 	116J.558. This appropriation is available until 
5.26 	June 30, 2023.
5.27 	(h) $700,000 each year is from the remediation 
5.28 	fund for contaminated site cleanup and 
5.29 	development grants under Minnesota Statutes, 
5.30 	sections 116J.551 to 116J.558. This 
5.31 	appropriation is available until June 30, 2023.
5.32 	(i) $1,425,000 each year is for the business 
5.33 	development competitive grant program. Of 
5.34 	this amount, up to $29,000 is for 
6.1 	administration and monitoring of the business 
6.2 	development competitive grant program. All 
6.3 	grant awards shall be for two consecutive 
6.4 	years. Grants shall be awarded in the first year.
6.5 	(j) $4,195,000 each year is for the Minnesota 
6.6 	job skills partnership program under 
6.7 	Minnesota Statutes, sections 116L.01 to 
6.8 	116L.17. If the appropriation for either year 
6.9 	is insufficient, the appropriation for the other 
6.10 	year is available. This appropriation is 
6.11 	available until June 30, 2023.
6.12 	(k) $875,000 each year is from the general 
6.13 	fund for the host community economic 
6.14 	development program established in 
6.15 	Minnesota Statutes, section 116J.548.
6.16 	(l) $25,000 each year is for the administration 
6.17 	of state aid for the Destination Medical Center 
6.18 	under Minnesota Statutes, sections 469.40 to 
6.19 	469.47.
6.20 	(m) $125,000 each year from the workforce 
6.21 	development fund is for a grant to the White 
6.22 	Earth Nation for the White Earth Nation 
6.23 	Integrated Business Development System to 
6.24 	provide business assistance with workforce 
6.25 	development, outreach, technical assistance, 
6.26 	infrastructure and operational support, 
6.27 	financing, and other business development 
6.28 	activities. This is a onetime appropriation.
6.29 	(n) $12,000 each year is from the general fund 
6.30 	for a grant to the Upper Minnesota Film 
6.31 	Office.
6.32 	(o) $163,000 each year is from the general 
6.33 	fund for the Minnesota Film and TV Board. 
6.34 	The appropriation in each year is available 
7.1 	only upon receipt by the board of $1 in 
7.2 	matching contributions of money or in-kind 
7.3 	contributions from nonstate sources for every 
7.4 	$3 provided by this appropriation, except that 
7.5 	each year up to $50,000 is available on July 
7.6 	1 even if the required matching contribution 
7.7 	has not been received by that date.
7.8 	(p) $500,000 each year is from the general 
7.9 	fund for a grant to the Minnesota Film and TV 
7.10 	Board for the film production jobs program 
7.11 	under Minnesota Statutes, section 116U.26. 
7.12 	This appropriation is available until June 30, 
7.13 	2023.
7.14 	(q) $649,000 in fiscal year 2020 is for grants 
7.15 	to local communities to increase the supply of 
7.16 	quality child care providers to support 
7.17 	economic development. At least 60 percent of 
7.18 	grant funds must go to communities located 
7.19 	outside of the seven-county metropolitan area 
7.20 	as defined under Minnesota Statutes, section 
7.21 	473.121, subdivision 2. Grant recipients must 
7.22 	obtain a 50 percent nonstate match to grant 
7.23 	funds in either cash or in-kind contributions. 
7.24 	Grant funds available under this section must 
7.25 	be used to implement projects to reduce the 
7.26 	child care shortage in the state, including but 
7.27 	not limited to funding for child care business 
7.28 	start-ups or expansion, training, facility 
7.29 	modifications or improvements required for 
7.30 	licensing, and assistance with licensing and 
7.31 	other regulatory requirements. In awarding 
7.32 	grants, the commissioner must give priority 
7.33 	to communities that have demonstrated a 
7.34 	shortage of child care providers in the area. 
7.35 	This is a onetime appropriation. Within one 
8.1 	year of receiving grant funds, grant recipients 
8.2 	must report to the commissioner on the 
8.3 	outcomes of the grant program, including but 
8.4 	not limited to the number of new providers, 
8.5 	the number of additional child care provider 
8.6 	jobs created, the number of additional child 
8.7 	care slots, and the amount of cash and in-kind 
8.8 	local funds invested.
8.9 	(r) $1,827,000 in fiscal year 2020 is for a grant 
8.10 	to the Minnesota Initiative Foundations. This 
8.11 	is a onetime appropriation and is available 
8.12 	until June 30, 2023. The Minnesota Initiative 
8.13 	Foundations must use grant funds under this 
8.14 	section to:
8.15 	(1) facilitate planning processes for rural 
8.16 	communities resulting in a community solution 
8.17 	action plan that guides decision making to 
8.18 	sustain and increase the supply of quality child 
8.19 	care in the region to support economic 
8.20 	development;
8.21 	(2) engage the private sector to invest local 
8.22 	resources to support the community solution 
8.23 	action plan and ensure quality child care is a 
8.24 	vital component of additional regional 
8.25 	economic development planning processes;
8.26 	(3) provide locally based training and technical 
8.27 	assistance to rural child care business owners 
8.28 	individually or through a learning cohort. 
8.29 	Access to financial and business development 
8.30 	assistance must prepare child care businesses 
8.31 	for quality engagement and improvement by 
8.32 	stabilizing operations, leveraging funding from 
8.33 	other sources, and fostering business acumen 
8.34 	that allows child care businesses to plan for 
9.1 	and afford the cost of providing quality child 
9.2 	care; or
9.3 	(4) recruit child care programs to participate 
9.4 	in Parent Aware, Minnesota's quality and 
9.5 	improvement rating system, and other high 
9.6 	quality measurement programs. The Minnesota 
9.7 	Initiative Foundations must work with local 
9.8 	partners to provide low-cost training, 
9.9 	professional development opportunities, and 
9.10 	continuing education curricula. The Minnesota 
9.11 	Initiative Foundations must fund, through local 
9.12 	partners, an enhanced level of coaching to 
9.13 	rural child care providers to obtain a quality 
9.14 	rating through Parent Aware or other high 
9.15 	quality measurement programs.
9.16 	(s) $1,000,000 in fiscal year 2020 is for a grant 
9.17 	to the city of Minnetonka for a high-risk, 
9.18 	high-return jobs retention and creation 
9.19 	initiative to be conducted by a local 
9.20 	organization that produces lactic acid/lactate 
9.21 	to help grow and expand the bioeconomy in 
9.22 	Minnesota. This is a onetime appropriation 
9.23 	and is available until June 30, 2022. The 
9.24 	commissioner of employment and economic 
9.25 	development and the local organization 
9.26 	receiving the grant shall enter into an 
9.27 	agreement which includes, but is not limited 
9.28 	to, the following provisions:
9.29 	(1) a minimum Minnesota job retention 
9.30 	requirement for the local organization for the 
9.31 	term of the grant agreement;
9.32 	(2) commitment to continue operations in 
9.33 	Minnesota for a minimum of five years after 
9.34 	receiving the grant; and
10.1 	(3) agreement to pay back the full amount of 
10.2 	the grant if the local organization relocates 
10.3 	Minnesota operations to another state.

10.4	Subd. 3.Minnesota Trade Office
 		2,292,000
		2,292,000
	
10.5 	(a) $300,000 each year is for the STEP grants 
10.6 	in Minnesota Statutes, section 116J.979.
10.7 	(b) $180,000 each year is for the Invest 
10.8 	Minnesota Marketing Initiative in Minnesota 
10.9 	Statutes, section 116J.9781.
10.10 	(c) $270,000 each year is for the Minnesota 
10.11 	Trade Offices under Minnesota Statutes, 
10.12 	section 116J.978.
10.13 	(d) $50,000 each year is for the trade policy 
10.14 	advisory group under Minnesota Statutes, 
10.15 	section 116J.9661.

10.16	Subd. 4.Workforce Development
 		26,227,000
		26,227,000

10.17	Appropriations by Fund
	
10.18	General
	4,450,000
	4,450,000
	
10.19
10.20	Workforce 
Development
	21,777,000
	21,777,000
	
10.21 	(a) $4,604,000 each year from the workforce 
10.22 	development fund is for the pathways to 
10.23 	prosperity competitive grant program. Of this 
10.24 	amount, up to $92,000 is for administration 
10.25 	and monitoring of the program.
10.26 	(b) $4,050,000 each year is from the 
10.27 	workforce development fund for the 
10.28 	Minnesota youth program under Minnesota 
10.29 	Statutes, sections 116L.56 and 116L.561.
10.30 	(c) $1,000,000 each year is from the workforce 
10.31 	development fund for the youthbuild program 
10.32 	under Minnesota Statutes, sections 116L.361 
10.33 	to 116L.366.
11.1 	(d) $750,000 each year is from the general 
11.2 	fund and $3,348,000 each year is from the 
11.3 	workforce development fund for the youth at 
11.4 	work competitive grant program under 
11.5 	Minnesota Statutes, section 116L.562. Of this 
11.6 	amount, up to $82,000 is for administration 
11.7 	and monitoring of the youth workforce 
11.8 	development competitive grant program. All 
11.9 	grant awards shall be for two consecutive 
11.10 	years. Grants shall be awarded in the first year.
11.11 	(e) $500,000 each year from the general fund 
11.12 	and $500,000 each year from the workforce 
11.13 	development fund are for rural career 
11.14 	counseling coordinators in the workforce 
11.15 	service areas and for the purposes specified 
11.16 	under Minnesota Statutes, section 116L.667.
11.17 	(f) $250,000 each year is for the higher 
11.18 	education career advising program.
11.19 	(g) $1,000,000 each year is for a competitive 
11.20 	grant program for grants to organizations 
11.21 	providing services to relieve economic 
11.22 	disparities in the Southeast Asian community 
11.23 	through workforce recruitment, development, 
11.24 	job creation, assistance of smaller 
11.25 	organizations to increase capacity, and 
11.26 	outreach. Of this amount, up to $20,000 is for 
11.27 	administration and monitoring of the program.
11.28 	(h) $1,000,000 each year is for a competitive 
11.29 	grant program to provide grants to 
11.30 	organizations that provide support services for 
11.31 	individuals, such as job training, employment 
11.32 	preparation, internships, job assistance to 
11.33 	fathers, financial literacy, academic and 
11.34 	behavioral interventions for low-performing 
11.35 	students, and youth intervention. Grants made 
12.1 	under this section must focus on low-income 
12.2 	communities, young adults from families with 
12.3 	a history of intergenerational poverty, and 
12.4 	communities of color. Of this amount, up to 
12.5 	$20,000 is for administration and monitoring 
12.6 	of the program.
12.7 	(i) $750,000 each year is for the high-wage, 
12.8 	high-demand, nontraditional jobs grant 
12.9 	program under Minnesota Statutes, section 
12.10 	116L.99. Of this amount, up to $15,000 is for 
12.11 	administration and monitoring of the program.
12.12 	(j) $500,000 each year is from the workforce 
12.13 	development fund for the Opportunities 
12.14 	Industrialization Center programs. This 
12.15 	appropriation shall be divided equally among 
12.16 	the eligible centers.
12.17 	(k) $250,000 each year is from the workforce 
12.18 	development fund for a grant to YWCA St. 
12.19 	Paul to provide job training services and 
12.20 	workforce development programs and 
12.21 	services, including job skills training and 
12.22 	counseling. This is a onetime appropriation.
12.23 	(l) $750,000 each year is from the workforce 
12.24 	development fund for a grant to the 
12.25 	Minneapolis Foundation for a strategic 
12.26 	intervention program designed to target and 
12.27 	connect program participants to meaningful, 
12.28 	sustainable living-wage employment. This is 
12.29 	a onetime appropriation.
12.30 	(m) $800,000 each year is from the workforce 
12.31 	development fund for performance grants 
12.32 	under Minnesota Statutes, section 116J.8747, 
12.33 	to Twin Cities R!SE to provide training to 
13.1 	hard-to-train individuals. This is a onetime 
13.2 	appropriation.
13.3 	(n) $600,000 each year from the workforce 
13.4 	development fund is for a grant to Ujamaa 
13.5 	Place for job training, employment 
13.6 	preparation, internships, education, training 
13.7 	in the construction trades, housing, and 
13.8 	organizational capacity-building. This is a 
13.9 	onetime appropriation.
13.10 	(o) $200,000 each year is for a grant to 
13.11 	AccessAbility Incorporated to provide job 
13.12 	skills training to individuals who have been 
13.13 	released from incarceration for a felony-level 
13.14 	offense and are no more than 12 months from 
13.15 	the date of release. AccessAbility Incorporated 
13.16 	shall annually report to the commissioner on 
13.17 	how the money was spent and what results 
13.18 	were achieved. The report must include, at a 
13.19 	minimum, information and data about the 
13.20 	number of participants; participant 
13.21 	homelessness, employment, recidivism, and 
13.22 	child support compliance; and training 
13.23 	provided to program participants. This is a 
13.24 	onetime appropriation.
13.25 	(p) $450,000 each year is from the workforce 
13.26 	development fund for grants to Minnesota 
13.27 	Diversified Industries, Inc. to provide 
13.28 	progressive development and employment 
13.29 	opportunities for people with disabilities. This 
13.30 	is a onetime appropriation.
13.31 	(q) $750,000 each year is from the workforce 
13.32 	development fund for a grant to the Minnesota 
13.33 	Alliance of Boys and Girls Clubs to administer 
13.34 	a statewide project of youth job skills and 
13.35 	career development. This project, which may 
14.1 	have career guidance components including 
14.2 	health and life skills, must be designed to 
14.3 	encourage, train, and assist youth in early 
14.4 	access to education and job-seeking skills, 
14.5 	work-based learning experience including 
14.6 	career pathways in STEM learning, career 
14.7 	exploration and matching, and first job 
14.8 	placement through local community 
14.9 	partnerships and on-site job opportunities. This 
14.10 	grant requires a 25 percent match from 
14.11 	nonstate resources. This is a onetime 
14.12 	appropriation.
14.13 	(r) $500,000 each year is from the workforce 
14.14 	development fund for a grant to Avivo to 
14.15 	provide low-income individuals with career 
14.16 	education and job skills training that is fully 
14.17 	integrated with chemical and mental health 
14.18 	services. This is a onetime appropriation.
14.19 	(s) $1,500,000 each year is from the workforce 
14.20 	development fund for a grant to the Minnesota 
14.21 	High Tech Association to support 
14.22 	SciTechsperience, a program that supports 
14.23 	science, technology, engineering, and math 
14.24 	(STEM) internship opportunities for two- and 
14.25 	four-year college students and graduate 
14.26 	students in their field of study. The internship 
14.27 	opportunities must match students with paid 
14.28 	internships within STEM disciplines at small, 
14.29 	for-profit companies located in Minnesota 
14.30 	having fewer than 250 employees worldwide. 
14.31 	At least 350 students must be matched in the 
14.32 	first year and at least 350 students must be 
14.33 	matched in the second year. No more than 15 
14.34 	percent of the hires may be graduate students. 
14.35 	Selected hiring companies shall receive from 
15.1 	the grant 50 percent of the wages paid to the 
15.2 	intern, capped at $3,000 per intern. The 
15.3 	program must work toward increasing the 
15.4 	participation among women or other 
15.5 	underserved populations. This is a onetime 
15.6 	appropriation.
15.7 	(t) $250,000 each year is from the workforce 
15.8 	development fund for a grant to Big Brothers 
15.9 	Big Sisters of the Greater Twin Cities for 
15.10 	workforce readiness, employment exploration, 
15.11 	and skills development for youth ages 12 to 
15.12 	21. The grant must serve youth in the Big 
15.13 	Brothers Big Sisters chapters in the Twin 
15.14 	Cities, central Minnesota, and southern 
15.15 	Minnesota. This is a onetime appropriation.
15.16 	(u) $200,000 each year is from the workforce 
15.17 	development fund for a grant to 180 Degrees 
15.18 	to expand their job readiness training program 
15.19 	to: young adults in group homes; sexually 
15.20 	exploited girls at Brittany's Place; and men 
15.21 	who have recently been released from prison 
15.22 	at the Clifton Residence. This is a onetime 
15.23 	appropriation.
15.24 	(v) $150,000 each year is from the workforce 
15.25 	development fund for displaced homemaker 
15.26 	programs under Minnesota Statutes, section 
15.27 	116L.96. The commissioner, through the adult 
15.28 	career pathways program, shall distribute the 
15.29 	funds to existing nonprofit and state displaced 
15.30 	homemaker programs. This is a onetime 
15.31 	appropriation.
15.32 	(w) $500,000 each year is from the workforce 
15.33 	development fund for a grant to Goodwill 
15.34 	Easter Seals Minnesota and its partners. The 
15.35 	grant shall be used to continue the FATHER 
16.1 	Project in Rochester, Park Rapids, St. Cloud, 
16.2 	Minneapolis, and the surrounding areas to 
16.3 	assist fathers in overcoming barriers that 
16.4 	prevent fathers from supporting their children 
16.5 	economically and emotionally. This is a 
16.6 	onetime appropriation.
16.7 	(x) $500,000 each year is from the workforce 
16.8 	development fund for a grant to Summit 
16.9 	Academy OIC to expand their contextualized 
16.10 	GED and employment placement program and 
16.11 	STEM program. This is a onetime 
16.12 	appropriation.
16.13 	(y) $250,000 each year is from the workforce 
16.14 	development fund for a grant to Bridges to 
16.15 	Healthcare to provide career education, 
16.16 	wraparound support services, and job skills 
16.17 	training in high-demand health care fields to 
16.18 	low-income parents, nonnative speakers of 
16.19 	English, and other hard-to-train individuals, 
16.20 	helping families build secure pathways out of 
16.21 	poverty while also addressing worker 
16.22 	shortages in one of Minnesota's most 
16.23 	innovative industries. Funds may be used for 
16.24 	program expenses, including but not limited 
16.25 	to hiring instructors and navigators; space 
16.26 	rental; and supportive services to help 
16.27 	participants attend classes, including assistance 
16.28 	with course fees, child care, transportation, 
16.29 	and safe and stable housing. In addition, up to 
16.30 	five percent of grant funds may be used for 
16.31 	Bridges to Healthcare's administrative costs. 
16.32 	This is a onetime appropriation.
16.33 	(z) $75,000 each year is from the workforce 
16.34 	development fund for grants to the Minnesota 
16.35 	Grocers Association Foundation for Carts to 
17.1 	Careers, a statewide initiative to promote 
17.2 	careers, conduct outreach, provide job skills 
17.3 	training, and grant scholarships for careers in 
17.4 	the retail food industry. This is a onetime 
17.5 	appropriation.
17.6 	(aa) $250,000 each year is from the workforce 
17.7 	development fund for grants to the American 
17.8 	Indian Opportunities and Industrialization 
17.9 	Center, in collaboration with the Northwest 
17.10 	Indian Community Development Center, to 
17.11 	reduce academic disparities for American 
17.12 	Indian students and adults. The grant funds 
17.13 	may be used to provide:
17.14 	(1) student tutoring and testing support 
17.15 	services;
17.16 	(2) training and employment placement in 
17.17 	information technology;
17.18 	(3) training and employment placement within 
17.19 	trades;
17.20 	(4) assistance in obtaining a GED;
17.21 	(5) remedial training leading to enrollment or 
17.22 	to sustain enrollment in a postsecondary higher 
17.23 	education institution;
17.24 	(6) real-time work experience in information 
17.25 	technology fields and in the trades;
17.26 	(7) contextualized adult basic education;
17.27 	(8) career and educational counseling for 
17.28 	clients with significant and multiple barriers; 
17.29 	and
17.30 	(9) reentry services and counseling for adults 
17.31 	and youth.
18.1 	After notification to the legislature, the 
18.2 	commissioner may transfer this appropriation 
18.3 	to the commissioner of education.

18.4	Subd. 5.Vocational Rehabilitation
 		38,691,000
		36,961,000

18.5	Appropriations by Fund
	
18.6	General
	30,861,000
	28,861,000
	
18.7
18.8	Workforce 
Development
	7,830,000
	7,830,000
	
18.9 	(a) $14,300,000 each year is for the state's 
18.10 	vocational rehabilitation program under 
18.11 	Minnesota Statutes, chapter 268A.
18.12 	(b) $3,011,000 each year is from the general 
18.13 	fund for grants to centers for independent 
18.14 	living under Minnesota Statutes, section 
18.15 	268A.11.
18.16 	(c) $8,995,000 each year from the general fund 
18.17 	and $6,830,000 each year from the workforce 
18.18 	development fund are for extended 
18.19 	employment services for persons with severe 
18.20 	disabilities under Minnesota Statutes, section 
18.21 	268A.15. Of the amounts appropriated from 
18.22 	the general fund, $2,000,000 each year is for 
18.23 	rate increases to providers of extended 
18.24 	employment services for persons with severe 
18.25 	disabilities under Minnesota Statutes, section 
18.26 	268A.15.
18.27 	(d) $1,000,000 each year is from the 
18.28 	workforce development fund for grants under 
18.29 	Minnesota Statutes, section 268A.16, for 
18.30 	employment services for persons, including 
18.31 	transition-aged youth, who are deaf, deafblind, 
18.32 	or hard-of-hearing. If the amount in the first 
18.33 	year is insufficient, the amount in the second 
18.34 	year is available in the first year. Of this 
19.1 	amount, up to $20,000 is for administration 
19.2 	and monitoring of the program.
19.3 	(e) $4,555,000 in the first year and $2,555,000 
19.4 	in the second year are for grants to programs 
19.5 	that provide employment support services to 
19.6 	persons with mental illness under Minnesota 
19.7 	Statutes, sections 268A.13 and 268A.14. Of 
19.8 	the amount appropriated in the first year, 
19.9 	$2,000,000 is available until June 30, 2023, 
19.10 	and must first be used to expand programs to 
19.11 	areas of the state without an existing 
19.12 	employment support program, and secondly 
19.13 	to expand existing programs.

19.14	Subd. 6.Services for the Blind
 		6,425,000
		6,425,000
	
19.15 	$500,000 each year is to provide services for 
19.16 	senior citizens who are becoming blind. At 
19.17 	least half of the funds appropriated must be 
19.18 	used to provide training services for seniors 
19.19 	who are becoming blind. Training services 
19.20 	must provide independent living skills to 
19.21 	seniors who are becoming blind to allow them 
19.22 	to continue to live independently in their 
19.23 	homes.

19.24	Subd. 7.General Support Services
 		4,726,000
		4,726,000
	
19.25 	(a) $250,000 each year is for the publication, 
19.26 	dissemination, and use of labor market 
19.27 	information under Minnesota Statutes, section 
19.28 	116J.4011.
19.29 	(b) $1,269,000 each year is for transfer to the 
19.30 	Minnesota Housing Finance Agency for 
19.31 	operating the Olmstead Implementation 
19.32 	Office.
19.33 	(c) $500,000 each year is for the 
19.34 	capacity-building grant program to assist 
20.1 	nonprofit organizations offering or seeking to 
20.2 	offer workforce development and economic 
20.3 	development programming.
20.4 	(d) $55,000 each year is from the workforce 
20.5 	development fund.

20.6	Subd. 8.Competitive Grant Limitations
 					
20.7 	An organization that receives a direct 
20.8 	appropriation under this section is not eligible 
20.9 	to participate in competitive grant programs 
20.10 	under this section for substantially the same 
20.11 	program or purpose as the direct appropriation 
20.12 	received during the fiscal years in which the 
20.13 	direct appropriations are received.

20.14
20.15	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY

20.16	Subdivision 1.Total Appropriation
 	$
	28,787,000
	$
	25,787,000

20.17	Appropriations by Fund
	
20.18		2020
	2021
	
20.19	General
	3,048,000
	3,048,000
	
20.20
20.21	Workers' 
Compensation
	23,005,000
	20,005,000
	
20.22
20.23	Workforce 
Development
	2,734,000
	2,734,000
	
20.24 	The amounts that may be spent for each 
20.25 	purpose are specified in the following 
20.26 	subdivisions.

20.27	Subd. 2.Workers' Compensation
 		14,882,000
		11,882,000
	
20.28 	This appropriation is from the workers' 
20.29 	compensation fund.
20.30 	$3,000,000 in fiscal year 2020 is for workers' 
20.31 	compensation system upgrades. This amount 
20.32 	is available until June 30, 2021. This is a 
20.33 	onetime appropriation.

20.34	Subd. 3.Labor Standards and Apprenticeship
 		4,732,000
		4,732,000

21.1	Appropriations by Fund
	
21.2	General
	3,048,000
	3,048,000
	
21.3
21.4	Workforce 
Development
	1,684,000
	1,684,000
	
21.5 	(a) $1,500,000 each year is for wage theft 
21.6 	prevention. Beginning in fiscal year 2022, the 
21.7 	base amount for this appropriation is 
21.8 	$1,000,000.
21.9 	(b) $250,000 each year is to develop an open 
21.10 	and competitive grant process in consultation 
21.11 	with the Office of Justice Programs in the 
21.12 	Department of Public Safety, law enforcement 
21.13 	organizations, and the Minnesota County 
21.14 	Attorneys Association to award a grant to a 
21.15 	nonprofit organization identifying and serving 
21.16 	victims of labor trafficking to: (1) develop a 
21.17 	statewide model protocol for law enforcement, 
21.18 	prosecutors, and other persons who in their 
21.19 	professional capacity encounter labor 
21.20 	trafficking to identify and intervene with 
21.21 	victims of labor trafficking; (2) conduct 
21.22 	statewide training for law enforcement and 
21.23 	prosecutors including, at a minimum, methods 
21.24 	under Minnesota Statutes, section 299A.79, 
21.25 	subdivision 2; and (3) develop and disseminate 
21.26 	investigative best practices to identify victims 
21.27 	of labor trafficking and traffickers to law 
21.28 	enforcement, prosecutors, and other persons 
21.29 	who in their professional capacity encounter 
21.30 	labor trafficking. The grant recipient may use 
21.31 	the money appropriated in this paragraph to 
21.32 	partner with other entities to implement 
21.33 	clauses (1) to (3).
21.34 	(c) By January 15, 2021, the grant recipient 
21.35 	shall report to the chairs and ranking minority 
21.36 	members of the senate and house of 
22.1 	representatives committees and divisions with 
22.2 	jurisdiction over criminal justice and labor and 
22.3 	industry policy and funding on the grant 
22.4 	process and how the grant money was spent 
22.5 	and details and results of the implementation 
22.6 	of paragraph (a), clauses (1) to (3). This 
22.7 	appropriation is onetime.
22.8 	(d) $1,133,000 each year is from the 
22.9 	workforce development fund for the 
22.10 	apprenticeship program under Minnesota 
22.11 	Statutes, chapter 178.
22.12 	(e) $151,000 each year is from the workforce 
22.13 	development fund for prevailing wage 
22.14 	enforcement.
22.15 	(f) $100,000 each year is from the workforce 
22.16 	development fund for labor education and 
22.17 	advancement program grants under Minnesota 
22.18 	Statutes, section 178.11, to expand and 
22.19 	promote registered apprenticeship training for 
22.20 	minorities and women.
22.21 	(g) $300,000 each year is from the workforce 
22.22 	development fund for grants to the 
22.23 	Construction Careers Foundation for the 
22.24 	Helmets to Hard Hats Minnesota initiative. 
22.25 	Grant funds must be used to recruit, retain, 
22.26 	assist, and support National Guard, reserve, 
22.27 	and active duty military members' and 
22.28 	veterans' participation into apprenticeship 
22.29 	programs registered with the Department of 
22.30 	Labor and Industry and connect them with 
22.31 	career training and employment in the building 
22.32 	and construction industry. The recruitment, 
22.33 	selection, employment, and training must be 
22.34 	without discrimination due to race, color, 
22.35 	creed, religion, national origin, sex, sexual 
23.1 	orientation, marital status, physical or mental 
23.2 	disability, receipt of public assistance, or age. 
23.3 	This is a onetime appropriation.

23.4	Subd. 4.Workplace Safety
 		4,167,000
		4,167,000
	
23.5 	This appropriation is from the workers' 
23.6 	compensation fund.

23.7	Subd. 5.General Support
 		7,089,000
		7,089,000

23.8	Appropriations by Fund
	
23.923.10
	Workers' 
Compensation
	6,039,000
	6,039,000
	
23.11
23.12	Workforce 
Development
	1,050,000
	1,050,000
	
23.13 	(a) $300,000 each year is from the workforce 
23.14 	development fund for the PIPELINE program.
23.15 	(b) $750,000 each year is from the workforce 
23.16 	development fund for youth skills training 
23.17 	grants under Minnesota Statutes, section 
23.18 	175.46. The commissioner shall award grants 
23.19 	not to exceed $100,000 per local partnership 
23.20 	grant. $100,000 each year is from the 
23.21 	workforce development fund for the 
23.22 	administration of the grant program.

23.23	Sec. 4. BUREAU OF MEDIATION SERVICES
 	$
	2,404,000
	$
	2,404,000
	
23.24 	(a) $68,000 each year is for grants to area 
23.25 	labor management committees. Grants may 
23.26 	be awarded for a 12-month period beginning 
23.27 	July 1 each year. Any unencumbered balance 
23.28 	remaining at the end of the first year does not 
23.29 	cancel but is available for the second year.
23.30 	(b) $394,000 each year is for the Office of 
23.31 	Collaboration and Dispute Resolution under 
23.32 	Minnesota Statutes, section 179.90. Of this 
23.33 	amount, $160,000 each year is for grants under 
23.34 	Minnesota Statutes, section 179.91.

24.1
24.2	Sec. 5. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,952,000
	$
	1,952,000
	
24.3 	This appropriation is from the workers' 
24.4 	compensation fund.

24.5	Sec. 6. DEPARTMENT OF COMMERCE

24.6	Subdivision 1.Total Appropriation
 	$
	26,607,000
	$
	26,610,000

24.7	Appropriations by Fund
	
24.8		2020
	2021
	
24.9	General
	22,733,000
	22,735,000
	
24.10	Special Revenue
	2,060,000
	2,060,000
	
24.11	Petroleum Tank
	1,056,000
	1,056,000
	
24.12
24.13	Workers' 
Compensation Fund
	758,000
	758,000
	
24.14 	The amounts that may be spent for each 
24.15 	purpose are specified in the following 
24.16 	subdivisions.

24.17
24.18	Subd. 2.Petroleum Tank Release Compensation 
Board
 		1,056,000
		1,056,000
	
24.19 	This appropriation is from the petroleum tank 
24.20 	fund to account for base adjustments provided 
24.21 	in Minnesota Statutes, section 115C.13, the 
24.22 	base for the petroleum tank release cleanup 
24.23 	fund in fiscal year 2023 is $0.

24.24	Subd. 3.Telecommunications
 		3,069,000
		3,069,000

24.25	Appropriations by Fund
	
24.26	General
	1,009,000
	1,009,000
	
24.27	Special Revenue
	2,060,000
	2,060,000
	
24.28 	$2,060,000 each year is from the 
24.29 	telecommunications access Minnesota fund 
24.30 	account in the special revenue fund for the 
24.31 	following transfers. This appropriation is 
24.32 	added to the department's base.
24.33 	(1) $1,620,000 each year is to the 
24.34 	commissioner of human services to 
25.1 	supplement the ongoing operational expenses 
25.2 	of the Commission of Deaf, DeafBlind, and 
25.3 	Hard-of-Hearing Minnesotans. This 
25.4 	appropriation is available until June 30, 2021, 
25.5 	and any unexpended amount on that date must 
25.6 	be returned to the telecommunications access 
25.7 	Minnesota fund;
25.8 	(2) $290,000 each year is to the chief 
25.9 	information officer for the purpose of 
25.10 	coordinating technology accessibility and 
25.11 	usability;
25.12 	(3) $100,000 each year is to the Legislative 
25.13 	Coordinating Commission for captioning of 
25.14 	legislative coverage. This transfer is subject 
25.15 	to Minnesota Statutes, section 16A.281; and
25.16 	(4) $50,000 each year is to the Office of 
25.17 	MN.IT Services for a consolidated access fund 
25.18 	to provide grants or services to other state 
25.19 	agencies related to accessibility of their 
25.20 	web-based services.

25.21	Subd. 4.Energy Resources
 		4,276,000
		4,276,000
	
25.22 	(a) $150,000 each year is to remediate 
25.23 	vermiculate insulation from households that 
25.24 	are eligible for weatherization assistance under 
25.25 	Minnesota's weatherization assistance program 
25.26 	state plan under Minnesota Statutes, section 
25.27 	216C.264. Remediation must be done in 
25.28 	conjunction with federal weatherization 
25.29 	assistance program services.
25.30 	(b) $832,000 each year is for energy regulation 
25.31 	and planning unit staff.

26.1	Subd. 5.Administrative Services
 		7,397,000
		7,399,000
	
26.2 	(a) $100,000 each year is for the support of 
26.3 	broadband development.
26.4 	(b) $384,000 each year is for additional 
26.5 	compliance efforts with unclaimed property. 
26.6 	The commissioner may issue contracts for 
26.7 	these services.
26.8 	(c) $5,000 each year is for Real Estate 
26.9 	Appraisal Advisory Board compensation 
26.10 	pursuant to Minnesota Statutes, section 
26.11 	82B.073, subdivision 2a.

26.12	Subd. 6.Enforcement
 		5,777,000
		5,807,000

26.13	Appropriations by Fund
	
26.14	General
	5,577,000
	5,607,000
	
26.15
26.16	Workers' 
Compensation
	200,000
	200,000
	
26.17 	(a) $547,000 in the first year and $577,000 in 
26.18 	the second year are for health care 
26.19 	enforcement.
26.20 	(b) $200,000 in each year is from the workers' 
26.21 	compensation fund. Beginning in fiscal year 
26.22 	2022, this amount is $201,000.

26.23	Subd. 7.Insurance
 		5,032,000
		5,003,000

26.24	Appropriations by Fund
	
26.25	General
	4,474,000
	4,444,000
	
26.26
26.27	Workers' 
Compensation
	558,000
	559,000
	
26.28 	(a) $642,000 each year is for health insurance 
26.29 	rate review staffing.
26.30 	(b) $412,000 each year is for actuarial work 
26.31 	to prepare for implementation of 
26.32 	principle-based reserves.
27.1 	(c) $30,000 in fiscal year 2020 is for payment 
27.2 	of two years of membership dues for 
27.3 	Minnesota to the National Conference of 
27.4 	Insurance Legislators. This is a onetime 
27.5 	appropriation.
27.6 	(d) $558,000 in the first year and $559,000 in 
27.7 	the second year are from the workers' 
27.8 	compensation fund. Beginning in fiscal year 
27.9 	2022, this amount is $560,000.

27.10	Sec. 7. PUBLIC UTILITIES COMMISSION
 	$
	7,793,000
	$
	7,793,000

27.11 	Sec. 8. REDUCTION IN APPROPRIATIONS FOR UNFILLED POSITIONS.
 27.12 		Subdivision 1.Reduction required. The commissioner of management and budget must 
27.13 	reduce general fund and nongeneral fund appropriations to the Department of Employment 
27.14 	and Economic Development and the Department of Labor and Industry for agency operations 
27.15 	for the biennium ending June 30, 2021, for salary and benefits savings that results from any 
27.16 	positions that have not been filled within 180 days of the posting of the position. This section 
27.17 	applies only to positions that are posted in fiscal years 2019, 2020, and 2021. Reductions 
27.18 	made under this paragraph must be reflected as reductions in agency base budgets for fiscal 
27.19 	years 2022 and 2023.
27.20 		Subd. 2.Reporting. The commissioner of management and budget must report to the 
27.21 	chairs and ranking minority members of the senate and the house of representatives jobs 
27.22 	and economic development finance committees regarding the amount of reductions in 
27.23 	spending by each agency under this section.

27.24 	ARTICLE 2
27.25 	JOBS POLICY

27.26 	Section 1. Minnesota Statutes 2018, section 116J.035, subdivision 7, is amended to read:
27.27 		Subd. 7.Monitoring pass-through grant recipients. The commissioner shall monitor 
27.28 	the activities and outcomes of programs and services funded by legislative appropriations 
27.29 	and administered by the department on a pass-through basis. Unless amounts are otherwise 
27.30 	appropriated for administrative costs, the commissioner may retain up to fivetwo percent 
27.31 	of the amount appropriated to the department for grants to pass-through entities. Amounts 
28.1 	retained are deposited to a special revenue account and are appropriated to the commissioner 
28.2 	for costs incurred in administering and monitoring the pass-through grants.

28.3 	Sec. 2. [116J.439] AIRPORT INFRASTRUCTURE RENEWAL (AIR) GRANT 
28.4 	PROGRAM.
28.5 		Subdivision 1.Grant program established; purpose. (a) The commissioner shall make 
28.6 	grants to counties, airport authorities, or cities to provide up to 50 percent of the capital 
28.7 	costs of redevelopment of an existing facility or construction of a new facility; and for public 
28.8 	or private infrastructure costs, including broadband infrastructure costs, necessary for an 
28.9 	eligible airport infrastructure renewal economic development project.
28.10 	(b) The purpose of the grants made under this section is to keep or enhance jobs in the 
28.11 	area, increase the tax base, or expand or create new economic development.
28.12 	(c) In awarding grants under this section, the commissioner must adhere to the criteria 
28.13 	under subdivision 5.
28.14 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
28.15 	meanings given.
28.16 	(b) "City" means a statutory or home rule charter city located outside the metropolitan 
28.17 	area as defined in section 473.121, subdivision 2.
28.18 	(c) "County" means a county located outside the metropolitan area as defined in section 
28.19 	473.121, subdivision 2.
28.20 	(d) "Airport authority" means an authority created pursuant to section 360.0426.
28.21 		Subd. 3.Eligible projects. An economic development project for which a county, airport 
28.22 	authority, or city may be eligible to receive a grant under this section includes: (1) 
28.23 	manufacturing; (2) technology; (3) warehousing and distribution; or (4) research and 
28.24 	development.
28.25 		Subd. 4.Ineligible projects. The following projects are not eligible for a grant under 
28.26 	this section: (1) retail development; or (2) office space development, except as incidental 
28.27 	to an eligible purpose.
28.28 		Subd. 5.Application. (a) The commissioner must develop forms and procedures for 
28.29 	soliciting and reviewing applications for grants under this section. At a minimum, a county, 
28.30 	airport authority, or city must include in its application a resolution of the governing body 
28.31 	of the county, airport authority, or city certifying that half of the cost of the project is 
29.1 	committed from nonstate sources. The commissioner must evaluate complete applications 
29.2 	for eligible projects using the following criteria:
29.3 	(1) the project is an eligible project as defined under subdivision 3;
29.4 	(2) the project is expected to result in or will attract substantial public and private capital  
29.5 	investment and provide substantial economic benefit to the county, airport authority, or city 
29.6 	in which the project would be located; and
29.7 	(3) the project is expected to or will create or retain full-time jobs.
29.8 	(b) The determination of whether to make a grant for a site is within the discretion of 
29.9 	the commissioner, subject to this section. The commissioner's decisions and application of 
29.10 	the criteria are not subject to judicial review except for abuse of discretion.
29.11 		Subd. 6.Maximum grant amount. A county, airport authority, or city may receive no 
29.12 	more than $250,000 in two years for one or more projects.
29.13 		Subd. 7.Cancellation of grant; return of grant money. If after five years the 
29.14 	commissioner determines that a project has not proceeded in a timely manner and is unlikely 
29.15 	to be completed, the commissioner must cancel the grant and require the grantee to return 
29.16 	all grant money awarded for that project.
29.17 		Subd. 8.Appropriation. Grant money returned to the commissioner is appropriated to 
29.18 	the commissioner to make additional grants under this section.

29.19 	Sec. 3. [116L.35] INVENTORY OF ECONOMIC DEVELOPMENT PROGRAMS.
29.20 	(a) By January 15, 2020, and by January 15 of each even-numbered year thereafter, the 
29.21 	commissioner of employment and economic development must submit a report to the chairs 
29.22 	of the legislative committees with jurisdiction over economic development that provides 
29.23 	an inventory of all economic development programs, including any workforce development 
29.24 	programs, either provided by or overseen by any agency of the state of Minnesota.
29.25 	(b) Programs related to economic development that must be included in the report include 
29.26 	those that:
29.27 	(1) receive federal funds or state funds;
29.28 	(2) provide assistance to either businesses or individuals; or
29.29 	(3) support internships, apprenticeships, career and technical education, or any form of 
29.30 	employment training.
30.1 	(c) For each economic development program, the report must include, at a minimum, 
30.2 	the following information:
30.3 	(1) details of program costs;
30.4 	(2) the number of staff, both within the department and any outside organization;
30.5 	(3) the number of program participants;
30.6 	(4) the demographic information including, but not limited to, race, age, gender, and 
30.7 	income of program participants;
30.8 	(5) a list of any and all subgrantees receiving funds from the program, as well as the 
30.9 	amount of funding received;
30.10 	(6) information about other sources of funding including other public or private funding 
30.11 	or in-kind donations;
30.12 	(7) evidence that: (i) the organization administering a program; (ii) a business receiving 
30.13 	a loan for a new or expanded business from a program; or (iii) a subgrantee of a program 
30.14 	is in good standing with the Minnesota Secretary of State and the Minnesota Department 
30.15 	of Revenue;
30.16 	(8) a short description of what each program does; and
30.17 	(9) to the extent practical, quantifiable measures of program success.
30.18 	(d) In addition to the information required under paragraph (c), a program related to 
30.19 	economic development under paragraph (b) that requests an increase in state funding over 
30.20 	the previous biennium must provide the following:
30.21 	(1) detailed information regarding the need for increased funds; and
30.22 	(2) the planned uses of the increased funds.
30.23 	(e) A program related to economic development under paragraph (b) is ineligible for 
30.24 	state funding in the following biennium if it does not submit the information required under 
30.25 	paragraph (c).

30.26 	Sec. 4. Minnesota Statutes 2018, section 469.055, is amended by adding a subdivision to 
30.27 	read:
30.28 		Subd. 2a.Meetings by telephone or other electronic means. A port authority may 
30.29 	conduct meetings as provided by section 13D.015.

31.1 	Sec. 5. Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:

31.2	Subd. 3.Workforce Development
 	$
	31,498,000
	$
	30,231,000

31.3	Appropriations by Fund
	
31.4	General
	$6,239,000
	$5,889,000
	
31.5
31.6	Workforce 
Development
	$25,259,000
	$24,342,000
	
31.7 	(a) $500,000 each year is for the 
31.8 	youth-at-work competitive grant program 
31.9 	under Minnesota Statutes, section 116L.562. 
31.10 	Of this amount, up to five percent is for 
31.11 	administration and monitoring of the youth 
31.12 	workforce development competitive grant 
31.13 	program. All grant awards shall be for two 
31.14 	consecutive years. Grants shall be awarded in 
31.15 	the first year. In fiscal year 2020 and beyond, 
31.16 	the base amount is $750,000.
31.17 	(b) $250,000 each year is for pilot programs 
31.18 	in the workforce service areas to combine 
31.19 	career and higher education advising.
31.20 	(c) $500,000 each year is for rural career 
31.21 	counseling coordinator positions in the 
31.22 	workforce service areas and for the purposes 
31.23 	specified in Minnesota Statutes, section 
31.24 	116L.667. The commissioner of employment 
31.25 	and economic development, in consultation 
31.26 	with local workforce investment boards and 
31.27 	local elected officials in each of the service 
31.28 	areas receiving funds, shall develop a method 
31.29 	of distributing funds to provide equitable 
31.30 	services across workforce service areas.
31.31 	(d) $1,000,000 each year is for a grant to the 
31.32 	Construction Careers Foundation for the 
31.33 	construction career pathway initiative to 
31.34 	provide year-round educational and 
31.35 	experiential learning opportunities for teens 
32.1 	and young adults under the age of 21 that lead 
32.2 	to careers in the construction industry. This is 
32.3 	a onetime appropriation. Grant funds must be 
32.4 	used to:
32.5 	(1) increase construction industry exposure 
32.6 	activities for middle school and high school 
32.7 	youth, parents, and counselors to reach a more 
32.8 	diverse demographic and broader statewide 
32.9 	audience. This requirement includes, but is 
32.10 	not limited to, an expansion of programs to 
32.11 	provide experience in different crafts to youth 
32.12 	and young adults throughout the state;
32.13 	(2) increase the number of high schools in 
32.14 	Minnesota offering construction classes during 
32.15 	the academic year that utilize a multicraft 
32.16 	curriculum;
32.17 	(3) increase the number of summer internship 
32.18 	opportunities;
32.19 	(4) enhance activities to support graduating 
32.20 	seniors in their efforts to obtain employment 
32.21 	in the construction industry;
32.22 	(5) increase the number of young adults 
32.23 	employed in the construction industry and 
32.24 	ensure that they reflect Minnesota's diverse 
32.25 	workforce; and
32.26 	(6) enhance an industrywide marketing 
32.27 	campaign targeted to youth and young adults 
32.28 	about the depth and breadth of careers within 
32.29 	the construction industry.
32.30 	Programs and services supported by grant 
32.31 	funds must give priority to individuals and 
32.32 	groups that are economically disadvantaged 
32.33 	or historically underrepresented in the 
32.34 	construction industry, including but not limited 
33.1 	to women, veterans, and members of minority 
33.2 	and immigrant groups.
33.3 	(e) $1,539,000 each year from the general fund 
33.4 	and $4,604,000 each year from the workforce 
33.5 	development fund are for the Pathways to 
33.6 	Prosperity adult workforce development 
33.7 	competitive grant program. Of this amount, 
33.8 	up to four percent is for administration and 
33.9 	monitoring of the program. When awarding 
33.10 	grants under this paragraph, the commissioner 
33.11 	of employment and economic development 
33.12 	may give preference to any previous grantee 
33.13 	with demonstrated success in job training and 
33.14 	placement for hard-to-train individuals. In 
33.15 	fiscal year 2020 and beyond, the general fund 
33.16 	base amount for this program is $4,039,000.
33.17 	(f) $750,000 each year is for a competitive 
33.18 	grant program to provide grants to 
33.19 	organizations that provide support services for 
33.20 	individuals, such as job training, employment 
33.21 	preparation, internships, job assistance to 
33.22 	fathers, financial literacy, academic and 
33.23 	behavioral interventions for low-performing 
33.24 	students, and youth intervention. Grants made 
33.25 	under this section must focus on low-income 
33.26 	communities, young adults from families with 
33.27 	a history of intergenerational poverty, and 
33.28 	communities of color. Of this amount, up to 
33.29 	four percent is for administration and 
33.30 	monitoring of the program. In fiscal year 2020 
33.31 	and beyond, the base amount is $1,000,000.
33.32 	(g) $500,000 each year is for the women and 
33.33 	high-wage, high-demand, nontraditional jobs 
33.34 	grant program under Minnesota Statutes, 
33.35 	section 116L.99. Of this amount, up to five 
34.1 	percent is for administration and monitoring 
34.2 	of the program. In fiscal year 2020 and 
34.3 	beyond, the base amount is $750,000.
34.4 	(h) $500,000 each year is for a competitive 
34.5 	grant program for grants to organizations 
34.6 	providing services to relieve economic 
34.7 	disparities in the Southeast Asian community 
34.8 	through workforce recruitment, development, 
34.9 	job creation, assistance of smaller 
34.10 	organizations to increase capacity, and 
34.11 	outreach. Of this amount, up to five percent 
34.12 	is for administration and monitoring of the 
34.13 	program. In fiscal year 2020 and beyond, the 
34.14 	base amount is $1,000,000.
34.15 	(i) $250,000 each year is for a grant to the 
34.16 	American Indian Opportunities and 
34.17 	Industrialization Center, in collaboration with 
34.18 	the Northwest Indian Community 
34.19 	Development Center, to reduce academic 
34.20 	disparities for American Indian students and 
34.21 	adults. This is a onetime appropriation. The 
34.22 	grant funds may be used to provide:
34.23 	(1) student tutoring and testing support 
34.24 	services;
34.25 	(2) training in information technology;
34.26 	(3) assistance in obtaining a GED;
34.27 	(4) remedial training leading to enrollment in 
34.28 	a postsecondary higher education institution;
34.29 	(5) real-time work experience in information 
34.30 	technology fields; and
34.31 	(6) contextualized adult basic education.
35.1 	After notification to the legislature, the 
35.2 	commissioner may transfer this appropriation 
35.3 	to the commissioner of education.
35.4 	(j) $100,000 each year is for the getting to 
35.5 	work grant program. This is a onetime 
35.6 	appropriation and is available until June 30, 
35.7 	2021.
35.8 	(k) $525,000 each year is from the workforce 
35.9 	development fund for a grant to the YWCA 
35.10 	of Minneapolis to provide economically 
35.11 	challenged individuals the job skills training, 
35.12 	career counseling, and job placement 
35.13 	assistance necessary to secure a child 
35.14 	development associate credential and to have 
35.15 	a career path in early childhood education. 
35.16 	This is a onetime appropriation.
35.17 	(l) $1,350,000 each year is from the workforce 
35.18 	development fund for a grant to the Minnesota 
35.19 	High Tech Association to support 
35.20 	SciTechsperience, a program that supports 
35.21 	science, technology, engineering, and math 
35.22 	(STEM) internship opportunities for two- and 
35.23 	four-year college students and graduate 
35.24 	students in their field of study. The internship 
35.25 	opportunities must match students with paid 
35.26 	internships within STEM disciplines at small, 
35.27 	for-profit companies located in Minnesota, 
35.28 	having fewer than 250 employees worldwide. 
35.29 	At least 300 students must be matched in the 
35.30 	first year and at least 350 students must be 
35.31 	matched in the second year. No more than 15 
35.32 	percent of the hires may be graduate students. 
35.33 	Selected hiring companies shall receive from 
35.34 	the grant 50 percent of the wages paid to the 
35.35 	intern, capped at $2,500 per intern. The 
36.1 	program must work toward increasing the 
36.2 	participation of women or other underserved 
36.3 	populations. This is a onetime appropriation.
36.4 	(m) $450,000 each year is from the workforce 
36.5 	development fund for grants to Minnesota 
36.6 	Diversified Industries, Inc. to provide 
36.7 	progressive development and employment 
36.8 	opportunities for people with disabilities. This 
36.9 	is a onetime appropriation.
36.10 	(n) $500,000 each year is from the workforce 
36.11 	development fund for a grant to Resource, Inc. 
36.12 	to provide low-income individuals career 
36.13 	education and job skills training that are fully 
36.14 	integrated with chemical and mental health 
36.15 	services. This is a onetime appropriation.
36.16 	(o) $750,000 each year is from the workforce 
36.17 	development fund for a grant to the Minnesota 
36.18 	Alliance of Boys and Girls Clubs to administer 
36.19 	a statewide project of youth job skills and 
36.20 	career development. This project, which may 
36.21 	have career guidance components including 
36.22 	health and life skills, is designed to encourage, 
36.23 	train, and assist youth in early access to 
36.24 	education and job-seeking skills, work-based 
36.25 	learning experience including career pathways 
36.26 	in STEM learning, career exploration and 
36.27 	matching, and first job placement through 
36.28 	local community partnerships and on-site job 
36.29 	opportunities. This grant requires a 25 percent 
36.30 	match from nonstate resources. This is a 
36.31 	onetime appropriation.
36.32 	(p) $215,000 each year is from the workforce 
36.33 	development fund for grants to Big Brothers, 
36.34 	Big Sisters of the Greater Twin Cities for 
36.35 	workforce readiness, employment exploration, 
37.1 	and skills development for youth ages 12 to 
37.2 	21. The grant must serve youth in the Twin 
37.3 	Cities, Central Minnesota, and Southern 
37.4 	Minnesota Big Brothers, Big Sisters chapters. 
37.5 	This is a onetime appropriation.
37.6 	(q) $250,000 each year is from the workforce 
37.7 	development fund for a grant to YWCA St. 
37.8 	Paul to provide job training services and 
37.9 	workforce development programs and 
37.10 	services, including job skills training and 
37.11 	counseling. This is a onetime appropriation.
37.12 	(r) $1,000,000 each year is from the workforce 
37.13 	development fund for a grant to EMERGE 
37.14 	Community Development, in collaboration 
37.15 	with community partners, for services 
37.16 	targeting Minnesota communities with the 
37.17 	highest concentrations of African and 
37.18 	African-American joblessness, based on the 
37.19 	most recent census tract data, to provide 
37.20 	employment readiness training, credentialed 
37.21 	training placement, job placement and 
37.22 	retention services, supportive services for 
37.23 	hard-to-employ individuals, and a general 
37.24 	education development fast track and adult 
37.25 	diploma program. This is a onetime 
37.26 	appropriation.
37.27 	(s) $1,000,000 each year is from the workforce 
37.28 	development fund for a grant to the 
37.29 	Minneapolis Foundation for a strategic 
37.30 	intervention program designed to target and 
37.31 	connect program participants to meaningful, 
37.32 	sustainable living-wage employment. This is 
37.33 	a onetime appropriation.
37.34 	(t) $750,000 each year is from the workforce 
37.35 	development fund for a grant to Latino 
38.1 	Communities United in Service (CLUES) to 
38.2 	expand culturally tailored programs that 
38.3 	address employment and education skill gaps 
38.4 	for working parents and underserved youth by 
38.5 	providing new job skills training to stimulate 
38.6 	higher wages for low-income people, family 
38.7 	support systems designed to reduce 
38.8 	intergenerational poverty, and youth 
38.9 	programming to promote educational 
38.10 	advancement and career pathways. At least 
38.11 	50 percent of this amount must be used for 
38.12 	programming targeted at greater Minnesota. 
38.13 	This is a onetime appropriation.
38.14 	(u) $600,000 each year is from the workforce 
38.15 	development fund for a grant to Ujamaa Place 
38.16 	for job training, employment preparation, 
38.17 	internships, education, training in the 
38.18 	construction trades, housing, and 
38.19 	organizational capacity building. This is a 
38.20 	onetime appropriation.
38.21 	(v) $1,297,000 in the first year and $800,000 
38.22 	in the second year are from the workforce 
38.23 	development fund for performance grants 
38.24 	under Minnesota Statutes, section 116J.8747, 
38.25 	to Twin Cities R!SE to provide training to 
38.26 	hard-to-train individuals. Of the amounts 
38.27 	appropriated, $497,000 in fiscal year 2018 is 
38.28 	for a grant to Twin Cities R!SE, in 
38.29 	collaboration with Metro Transit and Hennepin 
38.30 	Technical College for the Metro Transit 
38.31 	technician training program. This is a onetime 
38.32 	appropriation and funds are available until 
38.33 	June 30, 2020.
38.34 	(w) $230,000 in fiscal year 2018 is from the 
38.35 	workforce development fund for a grant to the 
39.1 	Bois Forte Tribal Employment Rights Office 
39.2 	(TERO) for an American Indian workforce 
39.3 	development training pilot project. This is a 
39.4 	onetime appropriation and is available until 
39.5 	June 30, 2019. Funds appropriated the first 
39.6 	year are available for use in the second year 
39.7 	of the biennium.
39.8 	(x) $40,000 in fiscal year 2018 is from the 
39.9 	workforce development fund for a grant to the 
39.10 	Cook County Higher Education Board to 
39.11 	provide educational programming and 
39.12 	academic support services to remote regions 
39.13 	in northeastern Minnesota. This appropriation 
39.14 	is in addition to other funds previously 
39.15 	appropriated to the board.
39.16 	(y) $250,000 each year is from the workforce 
39.17 	development fund for a grant to Bridges to 
39.18 	Healthcare to provide career education, 
39.19 	wraparound support services, and job skills 
39.20 	training in high-demand health care fields to 
39.21 	low-income parents, nonnative speakers of 
39.22 	English, and other hard-to-train individuals, 
39.23 	helping families build secure pathways out of 
39.24 	poverty while also addressing worker 
39.25 	shortages in one of Minnesota's most 
39.26 	innovative industries. Funds may be used for 
39.27 	program expenses, including, but not limited 
39.28 	to, hiring instructors and navigators; space 
39.29 	rental; and supportive services to help 
39.30 	participants attend classes, including assistance 
39.31 	with course fees, child care, transportation, 
39.32 	and safe and stable housing. In addition, up to 
39.33 	five percent of grant funds may be used for 
39.34 	Bridges to Healthcare's administrative costs. 
40.1 	This is a onetime appropriation and is 
40.2 	available until June 30, 2020.
40.3 	(z) $500,000 each year is from the workforce 
40.4 	development fund for a grant to the Nonprofits 
40.5 	Assistance Fund to provide capacity-building 
40.6 	grants to small, culturally specific 
40.7 	organizations that primarily serve historically 
40.8 	underserved cultural communities. Grants may 
40.9 	only be awarded to nonprofit organizations 
40.10 	that have an annual organizational budget of 
40.11 	less than $500,000 and are culturally specific 
40.12 	organizations that primarily serve historically 
40.13 	underserved cultural communities. Grant funds 
40.14 	awarded must be used for:
40.15 	(1) organizational infrastructure improvement, 
40.16 	including developing database management 
40.17 	systems and financial systems, or other 
40.18 	administrative needs that increase the 
40.19 	organization's ability to access new funding 
40.20 	sources;
40.21 	(2) organizational workforce development, 
40.22 	including hiring culturally competent staff, 
40.23 	training and skills development, and other 
40.24 	methods of increasing staff capacity; or
40.25 	(3) creation or expansion of partnerships with 
40.26 	existing organizations that have specialized 
40.27 	expertise in order to increase the capacity of 
40.28 	the grantee organization to improve services 
40.29 	for the community. Of this amount, up to five 
40.30 	percent may be used by the Nonprofits 
40.31 	Assistance Fund for administration costs and 
40.32 	providing technical assistance to potential 
40.33 	grantees. This is a onetime appropriation.
41.1 	(aa) $4,050,000 each year is from the 
41.2 	workforce development fund for the 
41.3 	Minnesota youth program under Minnesota 
41.4 	Statutes, sections 116L.56 and 116L.561.
41.5 	(bb) $1,000,000 each year is from the 
41.6 	workforce development fund for the 
41.7 	youthbuild program under Minnesota Statutes, 
41.8 	sections 116L.361 to 116L.366.
41.9 	(cc) $3,348,000 each year is from the 
41.10 	workforce development fund for the "Youth 
41.11 	at Work" youth workforce development 
41.12 	competitive grant program. Of this amount, 
41.13 	up to five percent is for administration and 
41.14 	monitoring of the youth workforce 
41.15 	development competitive grant program. All 
41.16 	grant awards shall be for two consecutive 
41.17 	years. Grants shall be awarded in the first year.
41.18 	(dd) $500,000 each year is from the workforce 
41.19 	development fund for the Opportunities 
41.20 	Industrialization Center programs.
41.21 	(ee) $750,000 each year is from the workforce 
41.22 	development fund for a grant to Summit 
41.23 	Academy OIC to expand its contextualized 
41.24 	GED and employment placement program. 
41.25 	This is a onetime appropriation.
41.26 	(ff) $500,000 each year is from the workforce 
41.27 	development fund for a grant to 
41.28 	Goodwill-Easter Seals Minnesota and its 
41.29 	partners. The grant shall be used to continue 
41.30 	the FATHER Project in Rochester, Park 
41.31 	Rapids, St. Cloud, Minneapolis, and the 
41.32 	surrounding areas to assist fathers in 
41.33 	overcoming barriers that prevent fathers from 
42.1 	supporting their children economically and 
42.2 	emotionally. This is a onetime appropriation.
42.3 	(gg) $150,000 each year is from the workforce 
42.4 	development fund for displaced homemaker 
42.5 	programs under Minnesota Statutes, section 
42.6 	116L.96. The commissioner shall distribute 
42.7 	the funds to existing nonprofit and state 
42.8 	displaced homemaker programs. This is a 
42.9 	onetime appropriation.
42.10 	(hh)(1) $150,000 in fiscal year 2018 is from 
42.11 	the workforce development fund for a grant 
42.12 	to Anoka County to develop and implement 
42.13 	a pilot program to increase competitive 
42.14 	employment opportunities for transition-age 
42.15 	youth ages 18 to 21.
42.16 	(2) The competitive employment for 
42.17 	transition-age youth pilot program shall 
42.18 	include career guidance components, including 
42.19 	health and life skills, to encourage, train, and 
42.20 	assist transition-age youth in job-seeking 
42.21 	skills, workplace orientation, and job site 
42.22 	knowledge.
42.23 	(3) In operating the pilot program, Anoka 
42.24 	County shall collaborate with schools, 
42.25 	disability providers, jobs and training 
42.26 	organizations, vocational rehabilitation 
42.27 	providers, and employers to build upon 
42.28 	opportunities and services, to prepare 
42.29 	transition-age youth for competitive 
42.30 	employment, and to enhance employer 
42.31 	connections that lead to employment for the 
42.32 	individuals served.
42.33 	(4) Grant funds may be used to create an 
42.34 	on-the-job training incentive to encourage 
43.1 	employers to hire and train qualifying 
43.2 	individuals. A participating employer may 
43.3 	receive up to 50 percent of the wages paid to 
43.4 	the employee as a cost reimbursement for 
43.5 	on-the-job training provided.
43.6 	(ii) $500,000 each year is from the workforce 
43.7 	development fund for rural career counseling 
43.8 	coordinator positions in the workforce service 
43.9 	areas and for the purposes specified in 
43.10 	Minnesota Statutes, section 116L.667. The 
43.11 	commissioner of employment and economic 
43.12 	development, in consultation with local 
43.13 	workforce investment boards and local elected 
43.14 	officials in each of the service areas receiving 
43.15 	funds, shall develop a method of distributing 
43.16 	funds to provide equitable services across 
43.17 	workforce service areas.
43.18 	(jj) In calendar year 2017, the public utility 
43.19 	subject to Minnesota Statutes, section 
43.20 	116C.779, must withhold $1,000,000 from the 
43.21 	funds required to fulfill its financial 
43.22 	commitments under Minnesota Statutes, 
43.23 	section 116C.779, subdivision 1, and pay such 
43.24 	amounts to the commissioner of employment 
43.25 	and economic development for deposit in the 
43.26 	Minnesota 21st century fund under Minnesota 
43.27 	Statutes, section 116J.423.
43.28 	(kk) $350,000 in fiscal year 2018 is for a grant 
43.29 	to AccessAbility Incorporated to provide job 
43.30 	skills training to individuals who have been 
43.31 	released from incarceration for a felony-level 
43.32 	offense and are no more than 12 months from 
43.33 	the date of release. AccessAbility Incorporated 
43.34 	shall annually report to the commissioner on 
43.35 	how the money was spent and the results 
44.1 	achieved. The report must include, at a 
44.2 	minimum, information and data about the 
44.3 	number of participants; participant 
44.4 	homelessness, employment, recidivism, and 
44.5 	child support compliance; and training 
44.6 	provided to program participants.

44.7 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2017.

44.8 	Sec. 6. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA 
44.9 	INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
 44.10 	(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or 
44.11 	statutory city, county, or town that has uncommitted money received from repayment of 
44.12 	funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20 
44.13 	percent of the balance of that money to the state general fund before June 30, 2020. Any 
44.14 	local entity that does so may then use the remaining 80 percent of the uncommitted money 
44.15 	as a general purpose aid for any lawful expenditure.
44.16 	(b) By February 15, 2021, a home rule charter or statutory city, county, or town that 
44.17 	exercises the option under paragraph (a) shall submit to the chairs of the legislative 
44.18 	committees with jurisdiction over economic development policy and finance an accounting 
44.19 	and explanation of the use and distribution of the funds.

44.20 	Sec. 7. REPEALER.
 44.21 	Minnesota Statutes 2018, section 469.084, subdivision 1a, is repealed.

44.22 	ARTICLE 3
44.23 	LABOR AND INDUSTRY POLICY

44.24 	Section 1. Minnesota Statutes 2018, section 15.72, subdivision 2, is amended to read:
44.25 		Subd. 2.Retainage. (a) A public contracting agency may reserve as retainage from any 
44.26 	progress payment on a public contract for a public improvement an amount not to exceed 
44.27 	five percent of the payment. A public contracting agency may reduce the amount of the 
44.28 	retainage and may eliminate retainage on any monthly contract payment if, in the agency's 
44.29 	opinion, the work is progressing satisfactorily.
44.30 	(b) The public contracting agency must release all retainage no later than 60 days after 
44.31 	substantial completion, subject to the terms of this subdivision.
45.1 	(c) A contractor on a public contract for a public improvement must pay out any 
45.2 	remaining retainage to its subcontractors no later than ten days after receiving payment of 
45.3 	retainage from the public contracting agency, unless there is a dispute about the work under 
45.4 	a subcontract. If there is a dispute about the work under a subcontract, the contractor must 
45.5 	pay out retainage to any subcontractor whose work is not involved in the dispute, and must 
45.6 	provide a written statement detailing the amount and reason for the withholding to the 
45.7 	affected subcontractor.
45.8 	(d) Upon written request of a subcontractor who has not been paid for work in accordance 
45.9 	with this section, section 16A.1245, or section 471.425, subdivision 4a, the public contracting 
45.10 	agency shall notify the subcontractor of a progress payment, retainage payment, or final 
45.11 	payment made to the contractor.
45.12 	(e) After substantial completion, a public contracting agency may withhold no more 
45.13 	than:
45.14 	(1) 250 percent of the value of incomplete or defective work known at the time of 
45.15 	substantial completion; and
45.16 	(2) one percent of the value of the contract or $500, whichever is greater, pending 
45.17 	completion and submission of all final paperwork by the contractor or subcontractor. For 
45.18 	purposes of this subdivision, "final paperwork" means documents required to fulfill 
45.19 	contractual obligations, including, but not limited to, as-built plans, operation manuals, 
45.20 	payroll documents for projects subject to prevailing wage requirements, and the withholding 
45.21 	exemption certificate required by section 270C.66.
45.22 	If the public contracting agency withholds payment under this paragraph, the public 
45.23 	contracting agency must promptly provide a written statement detailing the amount and 
45.24 	basis of withholding to the contractor. The public contracting agency and contractor must 
45.25 	provide a copy of this statement to any subcontractor that requests it. Any amounts withheld 
45.26 	under clause (1) must be paid within 60 days after completion of the work. Any amounts 
45.27 	withheld under clause (2) must be paid within 60 days after submission of all final paperwork.
45.28 	(f) As used in this subdivision, "substantial completion" shall be determined as provided 
45.29 	in section 541.051, subdivision 1, paragraph (a). For construction, reconstruction, or 
45.30 	improvement of streets and highways, including bridges, substantial completion means the 
45.31 	date when construction-related traffic devices and ongoing inspections are no longer required.
45.32 	(g) Withholding retainage for warranty work not known at substantial completion is 
45.33 	prohibited.

46.1 	EFFECTIVE DATE. This section applies to agreements entered into on or after August 
46.2 	1, 2019.

46.3 	Sec. 2. Minnesota Statutes 2018, section 175.46, subdivision 3, is amended to read:
46.4 		Subd. 3.Duties. (a) The commissioner shall:
46.5 	(1) approve youth skills training programs that train student learners for careers in 
46.6 	high-growth, high-demand occupations that provide:
46.7 	(i) that the work of the student learner in the occupations declared particularly hazardous 
46.8 	shall be incidental to the training;
46.9 	(ii) that the work shall be intermittent and for short periods of time, and under the direct 
46.10 	and close supervision of a qualified and experienced person;
46.11 	(iii) that safety instruction shall be provided to the student learner and may be given by 
46.12 	the school and correlated by the employer with on-the-job training;
46.13 	(iv) a schedule of organized and progressive work processes to be performed on the job;
46.14 	(v) a schedule of wage rates in compliance with section 177.24; and
46.15 	(vi) whether the student learner will obtain secondary school academic credit, 
46.16 	postsecondary credit, or both, for the training program;
46.17 	(2) approve occupations and maintain a list of approved occupations for programs under 
46.18 	this section;
46.19 	(3) issue requests for proposals for grants;
46.20 	(4) work with individuals representing industry and labor to develop new youth skills 
46.21 	training programs;
46.22 	(5) develop model program guides;
46.23 	(6) monitor youth skills training programs;
46.24 	(7) provide technical assistance to local partnership grantees;
46.25 	(8) work with providers to identify paths for receiving postsecondary credit for 
46.26 	participation in the youth skills training program; and
46.27 	(9) approve other activities as necessary to implement the program.
46.28 	(b) The commissioner shall collaborate with stakeholders, including, but not limited to, 
46.29 	representatives of secondary school institutions, career and technical education instructors, 
46.30 	postsecondary institutions, businesses, and labor, in developing youth skills training 
47.1 	programs, and identifying and approving occupations and competencies for youth skills 
47.2 	training programs.

47.3 	Sec. 3. Minnesota Statutes 2018, section 175.46, subdivision 13, is amended to read:
47.4 		Subd. 13.Grant awards. (a) The commissioner shall award grants to local partnerships 
47.5 	for youth skills training programs that train student learners for careers in high-growth, 
47.6 	high-demand occupations. Grant awards may not exceed $100,000 per local partnership 
47.7 	grant.
47.8 	(b) A local partnership awarded a grant under this section must use the grant award for 
47.9 	any of the following implementation and coordination activities:
47.10 	(1) recruiting additional employers to provide on-the-job training and supervision for 
47.11 	student learners and providing technical assistance to those employers;
47.12 	(2) recruiting students to participate in the local youth skills training program, monitoring 
47.13 	the progress of student learners participating in the program, and monitoring program 
47.14 	outcomes;
47.15 	(3) coordinating youth skills training activities within participating school districts and 
47.16 	among participating school districts, postsecondary institutions, and employers;
47.17 	(4) coordinating academic, vocational and occupational learning, school-based and 
47.18 	work-based learning, and secondary and postsecondary education for participants in the 
47.19 	local youth skills training program;
47.20 	(5) coordinating transportation for student learners participating in the local youth skills 
47.21 	training program; and
47.22 	(6) any other implementation or coordination activity that the commissioner may direct 
47.23 	or permit the local partnership to perform.
47.24 	(b) (c) Grant awards may not be used to directly or indirectly pay the wages of a student 
47.25 	learner.

47.26 	Sec. 4. Minnesota Statutes 2018, section 326B.821, subdivision 21, is amended to read:
47.27 		Subd. 21.Residential building contractor, remodeler, and roofer education. (a) Each 
47.28 	licensee must, during each continuing education reporting period, complete and report one 
47.29 	hour of continuing education relating to energy codes or energy conservation measures 
47.30 	applicable to residential buildings and one hour of business management strategies applicable 
47.31 	to residential construction businesses.
48.1 	(b) Immediately following the adoption date of a new residential code, the commissioner 
48.2 	may prescribe that up to seven of the required 14 hours of continuing education credit per 
48.3 	licensure period include education hours specifically designated to instruct licensees on 
48.4 	new or existing State Building Code provisions.

48.5 	Sec. 5. Minnesota Statutes 2018, section 337.10, subdivision 4, is amended to read:
48.6 		Subd. 4.Progress payments and retainages. (a) Unless the building and construction 
48.7 	contract provides otherwise, the owner or other persons making payments under the contract 
48.8 	must make progress payments monthly as the work progresses. Payments shall be based 
48.9 	upon estimates of work completed as approved by the owner or the owner's agent. A progress 
48.10 	payment shall not be considered acceptance or approval of any work or waiver of any defects 
48.11 	therein.
48.12 	(b) Retainage on a building and construction contract may not exceed five percent. An 
48.13 	owner or owner's agent may reduce the amount of retainage and may eliminate retainage 
48.14 	on any monthly contract payment if, in the owner's opinion, the work is progressing 
48.15 	satisfactorily. Nothing in this subdivision is intended to require that retainage be withheld 
48.16 	in any building or construction contract.
48.17 	(c) The owner or the owner's agent must release all retainage no later than 60 days after 
48.18 	substantial completion subject to the terms of this subdivision. For purposes of this 
48.19 	subdivision, "substantial completion" shall be determined as provided in section 541.051, 
48.20 	subdivision 1, paragraph (a).
48.21 	(c)(d) A contractor must pay out any remaining retainage no later than ten days after 
48.22 	receiving payment of retainage, unless there is a dispute about the work under a subcontract, 
48.23 	in which case the contractor must pay out retainage to any party whose work is not involved 
48.24 	in the dispute.
48.25 	(e) After substantial completion, an owner or owner's agent may withhold no more than:
48.26 	(1) 250 percent of the value of incomplete or defective work known at the time of 
48.27 	substantial completion; and
48.28 	(2) one percent of the value of the contract or $500, whichever is greater, pending 
48.29 	completion and submission of all final paperwork by the contractor or subcontractor. For 
48.30 	purposes of this subdivision, "final paperwork" means documents required to fulfill 
48.31 	contractual obligations, including, but not limited to, as-built plans, operation manuals, 
48.32 	payroll documents for projects subject to prevailing wage requirements, and the withholding 
48.33 	exemption certificate required by section 270C.66.
49.1 	If the owner or the owner's agent withholds payment under this paragraph, the owner or the 
49.2 	owner's agent must promptly provide a written statement detailing the amount and basis of 
49.3 	withholding to the contractor. The owner or the owner's agent and the contractor must 
49.4 	provide a copy of this statement to any subcontractor that requests it. Any amounts withheld 
49.5 	under clause (1) must be paid within 60 days after completion of the work. Any amounts 
49.6 	withheld under clause (2) must be paid within 60 days after submission of all final paperwork.
49.7 	(f) Withholding retainage for warranty work not known at substantial completion is 
49.8 	prohibited. This provision does not waive any rights for warranty claims arising after 
49.9 	substantial completion.
49.10 	(g) This subdivision does not apply to a public agency as defined in section 15.71, 
49.11 	subdivision 3.
49.12 	(h) This subdivision does not apply to contracts for professional services as defined in 
49.13 	sections 326.02 to 326.15.

49.14 	EFFECTIVE DATE. This section applies to agreements entered into on or after August 
49.15 	1, 2019.

49.16 	Sec. 6. Minnesota Statutes 2018, section 341.30, subdivision 1, is amended to read:
49.17 		Subdivision 1.Licensure; individuals. All referees, judges, promoters, trainers, ring 
49.18 	announcers, timekeepers, ringside physicians, combatants, managers, and seconds are 
49.19 	required to be licensed by the commissioner. The commissioner shall not permit any of 
49.20 	these persons to participate in any matter with any combative sport contest unless the 
49.21 	commissioner has first issued the person a license.

49.22 	Sec. 7. Minnesota Statutes 2018, section 341.32, subdivision 1, is amended to read:
49.23 		Subdivision 1.Annual licensure. The commissioner may establish and issue annual 
49.24 	licenses subject to the collection of advance fees by the commissioner for promoters, 
49.25 	managers, judges, referees, ring announcers, ringside physicians, timekeepers, combatants, 
49.26 	trainers, and seconds.

49.27 	Sec. 8. Minnesota Statutes 2018, section 341.321, is amended to read:
49.28 	341.321 FEE SCHEDULE.
49.29 	(a) The fee schedule for professional and amateur licenses issued by the commissioner 
49.30 	is as follows:
49.31 	(1) referees, $80 $25;
50.1 	(2) promoters, $700;
50.2 	(3) judges and knockdown judges, $80 $25;
50.3 	(4) trainers and seconds, $80;
50.4 	(5) ring announcers, $80;
50.5 	(6) (5) timekeepers, $80 $25;
50.6 	(7) (6) professional combatants, $70;
50.7 	(8) (7) amateur combatants, $50;
50.8 	(9) managers, $80; and
50.9 	(10) (8) ringside physicians, $80 $25.
50.10 	License fees for promoters are due at least six weeks prior to the combative sport contest. 
50.11 	All other license fees shall be paid no later than the weigh-in prior to the contest. No license 
50.12 	may be issued until all prelicensure requirements are satisfied and fees are paid.
50.13 	(b) The commissioner shall establish a contest fee for each combative sport contest and 
50.14 	shall consider the size and type of venue when establishing a contest fee. The combative 
50.15 	sport contest fee is $1,500 per event or not more than four percent of the gross ticket sales, 
50.16 	whichever is greater, as determined by the commissioner when the combative sport contest 
50.17 	is scheduled.
50.18 	(c) A professional or amateur combative sport contest fee is nonrefundable and shall be 
50.19 	paid as follows:
50.20 	(1) $500 at the time the combative sport contest is scheduled; and
50.21 	(2) $1,000 at the weigh-in prior to the contest.
50.22 	If four percent of the gross ticket sales is greater than $1,500, the balance is due to the 
50.23 	commissioner within seven days of the completed contest.
50.24 	(d) The commissioner may establish the maximum number of complimentary tickets 
50.25 	allowed for each event by rule.
50.26 	(e) All fees and penalties collected by the commissioner must be deposited in the 
50.27 	commissioner account in the special revenue fund.

51.1 	Sec. 9. CONTRACTOR RECOVERY FUND; CONSUMER AWARENESS 
51.2 	CAMPAIGN.
 51.3 	In fiscal years 2020 and 2021 the commissioner of labor and industry must conduct a 
51.4 	statewide consumer awareness campaign highlighting the importance of hiring licensed 
51.5 	contractors as well as the consequences of hiring unlicensed contractors, and may spend up 
51.6 	to $500,000 each year from the contractor recovery fund to conduct the campaign.

51.7 	ARTICLE 4
51.8 	EMPLOYMENT POLICY

51.9 	Section 1. Minnesota Statutes 2018, section 177.23, subdivision 7, is amended to read:
51.10 		Subd. 7.Employee. "Employee" means any individual employed by an employer but 
51.11 	does not include:
51.12 	(1) two or fewer specified individuals employed at any given time in agriculture on a 
51.13 	farming unit or operation who are paid a salary;
51.14 	(2) any individual employed in agriculture on a farming unit or operation who is paid a 
51.15 	salary greater than the individual would be paid if the individual worked 48 hours at the 
51.16 	state minimum wage plus 17 hours at 1-1/2 times the state minimum wage per week;
51.17 	(3) an individual under 18 who is employed in agriculture on a farm to perform services 
51.18 	other than corn detasseling or hand field work when one or both of that minor hand field 
51.19 	worker's parents or physical custodians are also hand field workers;
51.20 	(4) for purposes of section 177.24, an individual under 18 who is employed as a corn 
51.21 	detasseler;
51.22 	(5) any staff member employed on a seasonal basis by an organization for work in an 
51.23 	organized resident or day camp operating under a permit issued under section 144.72;
51.24 	(6) any individual employed in a bona fide executive, administrative, or professional 
51.25 	capacity, or a salesperson who conducts no more than 20 percent of sales on the premises 
51.26 	of the employer;
51.27 	(7) any individual who renders service gratuitously for a nonprofit organization;
51.28 	(8) any individual who serves as an elected official for a political subdivision or who 
51.29 	serves on any governmental board, commission, committee or other similar body, or who 
51.30 	renders service gratuitously for a political subdivision;
52.1 	(9) any individual employed by a political subdivision to provide police or fire protection 
52.2 	services or employed by an entity whose principal purpose is to provide police or fire 
52.3 	protection services to a political subdivision;
52.4 	(10) any individual employed by a political subdivision who is ineligible for membership 
52.5 	in the Public Employees Retirement Association under section 353.01, subdivision 2b, 
52.6 	clause (1), (2), (4), or (9), item (i);
52.7 	(11) any driver employed by an employer engaged in the business of operating taxicabs;
52.8 	(12) any individual engaged in babysitting as a sole practitioner;
52.9 	(13) for the purpose of section 177.25, any individual employed on a seasonal basis in 
52.10 	a carnival, circus, fair, or ski facility;
52.11 	(14) any individual under 18 working less than 20 hours per workweek for a municipality 
52.12 	as part of a recreational program;
52.13 	(15) any individual employed by the state as a natural resource manager 1, 2, or 3 
52.14 	(conservation officer);
52.15 	(16) any individual in a position for which the United States Department of Transportation 
52.16 	has power to establish qualifications and maximum hours of service under United States 
52.17 	Code, title 49, section 31502;
52.18 	(17) any individual employed as a seafarer. The term "seafarer" means a master of a 
52.19 	vessel or any person subject to the authority, direction, and control of the master who is 
52.20 	exempt from federal overtime standards under United States Code, title 29, section 213(b)(6), 
52.21 	including but not limited to pilots, sailors, engineers, radio operators, firefighters, security 
52.22 	guards, pursers, surgeons, cooks, and stewards;
52.23 	(18) any individual employed by a county in a single-family residence owned by a county 
52.24 	home school as authorized under section 260B.060 if the residence is an extension facility 
52.25 	of that county home school, and if the individual as part of the employment duties resides 
52.26 	at the residence for the purpose of supervising children as defined by section 260C.007, 
52.27 	subdivision 4; or
52.28 	(19) nuns, monks, priests, lay brothers, lay sisters, ministers, deacons, and other members 
52.29 	of religious orders who serve pursuant to their religious obligations in schools, hospitals, 
52.30 	and other nonprofit institutions operated by the church or religious order; or
52.31 	(20) any individual employed on a seasonal basis who has entered into a contract to play 
52.32 	baseball at the minor league level.

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

53.2 	Sec. 2. Minnesota Statutes 2018, section 177.27, subdivision 1, is amended to read:
53.3 		Subdivision 1.Examination of records. The commissioner may enter during reasonable 
53.4 	office hours or upon request and inspect the place of business or employment of any employer 
53.5 	of employees working in the state, to examine and inspect books, registers, payrolls, and 
53.6 	other records of any employer that in any way relate to wages, hours, and other conditions 
53.7 	of employment of any employees. The commissioner may transcribe any or all of the books, 
53.8 	registers, payrolls, and other records as the commissioner deems necessary or appropriate 
53.9 	and may question the employees to ascertain compliance with sections 177.21 to 177.435. 
53.10 	The commissioner may investigate wage claims or complaints by an employee against an 
53.11 	employer if: (1) the failure to pay a wage may violate Minnesota law or an order or rule of 
53.12 	the department; and (2) the employee making the wage claim or complaint has provided a 
53.13 	written demand for payment to the employer at least five days prior to the commissioner 
53.14 	initiating an investigation.

53.15 	Sec. 3. Minnesota Statutes 2018, section 177.32, subdivision 1, is amended to read:
53.16 		Subdivision 1.Misdemeanors. (a) An employer who does any of the following is guilty 
53.17 	of a misdemeanor:
53.18 	(1) hinders or delays the commissioner in the performance of duties required under 
53.19 	sections 177.21 to 177.435, or sections 181.01 to 181.72;
53.20 	(2) refuses to admit the commissioner to the place of business or employment of the 
53.21 	employer, as required by section 177.27, subdivision 1;
53.22 	(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;
53.23 	(4) falsifies any record;
53.24 	(5) refuses to make any record available, or to furnish a sworn statement of the record 
53.25 	or any other information as required by section 177.27;
53.26 	(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary 
53.27 	of the applicable rules as required by section 177.31;
53.28 	(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21
53.29 	to 177.44;
53.30 	(8) refuses to allow adequate time from work as required by section 177.253; or
53.31 	(9) otherwise violates any provision of sections 177.21 to 177.44; or
54.1 	(10) commits wage theft as described in section 181.03, subdivision 1.
54.2 	(b) An employer who violates paragraph (a), clause (10), after having been previously 
54.3 	convicted of violating that clause is guilty of a gross misdemeanor.
54.4 	(c) Nothing in paragraph (a), clause (10), or paragraph (b), or section 609.035 or 609.04 
54.5 	shall limit the power of the state to prosecute or punish a person for conduct that constitutes 
54.6 	any other crime under any other law of this state.

54.7 	EFFECTIVE DATE. This section is effective August 1, 2019, and applies to crimes 
54.8 	committed on or after that date.

54.9 	Sec. 4. Minnesota Statutes 2018, section 179.86, subdivision 3, is amended to read:
54.10 		Subd. 3.Information provided to employee by employer. (a) An employer must 
54.11 	provide an explanation in an employee's native language of the employee's rights and duties 
54.12 	as an employee either person to person or through written materials that, at a minimum, 
54.13 	include:
54.14 	(1) a complete description of the salary and benefits plans as they relate to the employee;
54.15 	(2) a job description for the employee's position;
54.16 	(3) a description of leave policies;
54.17 	(4) a description of the work hours and work hours policy; and
54.18 	(5) a description of the occupational hazards known to exist for the position.
54.19 	(b) The explanation must also include information on the following employee rights as 
54.20 	protected by state or federal law and a description of where additional information about 
54.21 	those rights may be obtained:
54.22 	(1) the right to organize and bargain collectively and refrain from organizing and 
54.23 	bargaining collectively;
54.24 	(2) the right to a safe workplace; and
54.25 	(3) the right to be free from discrimination.
54.26 	(c) The explanation must be provided in a language the employee speaks fluently, if 
54.27 	requested by the employee.
54.28 	(d) Translation or interpretation of the information required by this subdivision may be 
54.29 	provided through telephone or Internet services.
55.1 	(e) An employer may require an employee to disclose the languages the employee speaks, 
55.2 	understands, and reads fluently. If an employer requires such disclosure, and an employee 
55.3 	has not provided it, an employer is not required to provide the information required under 
55.4 	this section in a language other than English to the employee.

55.5 	Sec. 5. Minnesota Statutes 2018, section 181.03, subdivision 1, is amended to read:
55.6 		Subdivision 1.Prohibited practices. An employer may not, directly or indirectly and 
55.7 	with intent to defraud:
55.8 	(a) No employer shall commit wage theft.
55.9 	(b) For purposes of this section, wage theft is committed if an employer, with intent to 
55.10 	defraud:
55.11 	(1) fails to pay an employee all wages to which that employee is entitled;
55.12 	(1) cause (2) directly or indirectly causes any employee to give a receipt for wages for 
55.13 	a greater amount than that actually paid to the employee for services rendered;
55.14 	(2) (3) directly or indirectly demand demands or receive receives from any employee 
55.15 	any rebate or refund from the wages owed the employee under contract of employment with 
55.16 	the employer; or
55.17 	(3) in any manner make (4) makes or attempt attempts to make it appear in any manner 
55.18 	that the wages paid to any employee were greater than the amount actually paid to the 
55.19 	employee.; or
55.20 	(5) retaliates against an employee for asserting rights or remedies under this section, 
55.21 	including but not limited to filing a complaint with the Department of Labor and Industry, 
55.22 	telling the employer of intention to file a complaint, or making a written demand for payment 
55.23 	to the employer as provided under section 177.27, subdivision 1.

55.24 	Sec. 6. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to 
55.25 	read:
55.26 		Subd. 4.Enforcement. The commissioner may enforce this section. The use of an 
55.27 	enforcement provision in this section shall not preclude the use of any other enforcement 
55.28 	provision provided by law.

56.1 	Sec. 7. Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to 
56.2 	read:
56.3 		Subd. 5.Effect on other laws. Nothing in this section shall be construed to limit the 
56.4 	application of other state or federal laws.

56.5 	Sec. 8. Minnesota Statutes 2018, section 181.635, subdivision 2, is amended to read:
56.6 		Subd. 2.Recruiting; required disclosure. (a) An employer shall provide written 
56.7 	disclosure of the terms and conditions of employment to a person at the time it recruits the 
56.8 	person to relocate to work in the food processing industry. The disclosure requirement does 
56.9 	not apply to an exempt employee as defined in United States Code, title 29, section 213(a)(1). 
56.10 	The disclosure must be written in English and Spanish, dated, and signed by the employer 
56.11 	and the person recruited, and maintained by the employer for two years. If the employer 
56.12 	has any reason to doubt the employee's ability to read, the employer must read the disclosure 
56.13 	out loud to the employee upon request by the employee in a language the employee speaks 
56.14 	fluently before the disclosure is signed. A copy of the signed and completed disclosure must 
56.15 	be delivered immediately to the recruited person. The disclosure may not be construed as 
56.16 	an employment contract.
56.17 	(b) An employer may require an employee to disclose the languages the employee speaks, 
56.18 	understands, and reads fluently. If an employer requires such disclosure, and an employee 
56.19 	has not provided it, an employer is not required to make the disclosure in the form required 
56.20 	under paragraph (a) with respect to the employee.
56.21 	(c) Translation or interpretation of the information required by this subdivision may be 
56.22 	provided through telephone or Internet services.

56.23 	Sec. 9. [181.741] EXPRESS PREEMPTION; UNIFORMITY OF PRIVATE 
56.24 	EMPLOYER MANDATES.
56.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
56.26 	subdivision have the meanings given them.
56.27 	(b) "Employer" means a private person employing one or more employees in the state.
56.28 	(c) "Local government" means a home rule charter city, statutory city, town, county, the 
56.29 	Metropolitan Council, a metropolitan agency as defined in section 473.121, subdivision 5a, 
56.30 	or a special district.
56.31 		Subd. 2.Express preemption. (a) A local government must not adopt, enforce, or 
56.32 	administer an ordinance, local resolution, or local policy requiring an employer to pay an 
57.1 	employee a wage higher than the applicable state minimum wage rate provided in section 
57.2 	177.24.
57.3 	(b) A local government must not adopt, enforce, or administer an ordinance, local 
57.4 	resolution, or local policy requiring an employer to provide either paid or unpaid leave time.
57.5 	(c) A local government must not adopt, enforce, or administer an ordinance, local 
57.6 	resolution, or local policy regulating the hours or scheduling of work time that an employer 
57.7 	provides to an employee. This paragraph does not preempt an ordinance, local resolution, 
57.8 	or local policy limiting the hours a business may operate.
57.9 	(d) A local government must not adopt, enforce, or administer an ordinance, local 
57.10 	resolution, or local policy requiring an employer to provide an employee a particular benefit 
57.11 	or terms of employment.
57.12 		Subd. 3.Local governments as employers and contractors. This section does not 
57.13 	regulate wages, hours, benefits, paid or unpaid leave, attendance policies, or other terms of 
57.14 	employment that a local government:
57.15 	(1) provides to its own employee;
57.16 	(2) requires an employer to provide to its employee to the extent that employer is 
57.17 	providing goods or services to the local government, and the requirement applies specifically 
57.18 	to work performed in providing goods or services to the local government; or
57.19 	(3) requires an employer to provide to its employee, to the extent that employer is 
57.20 	receiving funding from the local government or is providing goods or services funded in 
57.21 	whole or in part by the local government, when the requirement is an express condition of 
57.22 	the funding.

57.23 	EFFECTIVE DATE. This section is effective upon final enactment and applies to 
57.24 	ordinances, local policies, and local resolutions enacted on or after January 1, 2017.

57.25 	ARTICLE 5
57.26 	WORKERS' COMPENSATION ADVISORY COUNCIL RECOMMENDATIONS

57.27 	Section 1. Minnesota Statutes 2018, section 176.1812, subdivision 2, is amended to read:
57.28 		Subd. 2.Filing and review. (a) A copy of the agreement and the approximate number 
57.29 	of employees who will be covered under it must be filed with the commissioner. Within 21 
57.30 	days of receipt of an agreement, the commissioner shall review the agreement for compliance 
57.31 	with this section and the benefit provisions of this chapter and notify the parties of any 
57.32 	additional information required or any recommended modification that would bring the 
58.1 	agreement into compliance. Upon receipt of any requested information or modification, the 
58.2 	commissioner must notify the parties within 21 days whether the agreement is in compliance 
58.3 	with this section and the benefit provisions of this chapter.
58.4 	(b) After an agreement is approved by the commissioner under paragraph (a), a qualified 
58.5 	employer may join or withdraw from a qualified group of employers without commissioner 
58.6 	review or approval. The commissioner must be notified within 30 days when a qualified 
58.7 	employer joins or withdraws from a qualified group of employers.
58.8 	(c) In order for any agreement to remain in effect, it must provide for a timely and 
58.9 	accurate method of reporting to the commissioner necessary information regarding service 
58.10 	cost and utilization the individual claims covered by the agreement and claim-specific 
58.11 	dispute resolution data, in the form and manner prescribed by the commissioner. Dispute 
58.12 	resolution data includes information about facilitation, mediation, and arbitration and shall 
58.13 	be provided annually to the commissioner to enable the commissioner to annually report 
58.14 	aggregate dispute data to the legislature. The information provided to the commissioner 
58.15 	must include aggregate data on the:
58.16 	(i) person hours and payroll covered by agreements filed;
58.17 	(ii) number of claims filed;
58.18 	(iii) average cost per claim;
58.19 	(iv) number of litigated claims, including the number of claims submitted to arbitration, 
58.20 	the Workers' Compensation Court of Appeals, the Office of Administrative Hearings, the 
58.21 	district court, the Minnesota Court of Appeals or the supreme court;
58.22 	(v) number of contested claims resolved prior to arbitration;
58.23 	(vi) projected incurred costs and actual costs of claims;
58.24 	(vii) employer's safety history;
58.25 	(viii) number of workers participating in vocational rehabilitation; and
58.26 	(ix) number of workers participating in light-duty programs.

58.27 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective June 1, 2019. Paragraph (c) 
58.28 	is effective August 1, 2020.

58.29 	Sec. 2. Minnesota Statutes 2018, section 176.231, subdivision 1, is amended to read:
58.30 		Subdivision 1.Time limitation. (a) Where death or serious injury occurs to an employee 
58.31 	during the course of employment, the employer shall report the injury or death to the 
59.1 	commissioner and insurer within 48 hours after its occurrence. Where any other injury 
59.2 	occurs which wholly or partly incapacitates the employee from performing labor or service 
59.3 	for more than three calendar days, the employer shall report the injury to the insurer on a 
59.4 	form prescribed by the commissioner within ten days from its occurrence. An insurer and 
59.5 	self-insured employer shall report the injury to the commissioner no later than 14 days from 
59.6 	its occurrence. Where an injury has once been reported but subsequently death ensues, the 
59.7 	employer shall report the death to the commissioner and insurer within 48 hours after the 
59.8 	employer receives notice of this fact. An employer who provides notice to the Occupational 
59.9 	Safety and Health Division of the Department of Labor and Industry of a fatality within the 
59.10 	eight-hour time frame required by law, or of an inpatient hospitalization within the 24-hour 
59.11 	time frame required by law, has satisfied the employer's obligation under this section.
59.12 	(b) At the time an injury is required to be reported to the commissioner, the insurer or 
59.13 	self-insured employer must also specify whether the injury is covered by a collective 
59.14 	bargaining agreement approved by the commissioner under section 176.1812. Notice must 
59.15 	be provided in the format and manner prescribed by the commissioner.

59.16 	EFFECTIVE DATE. This section is effective August 1, 2020.

59.17 	ARTICLE 6
59.18 	COMMERCE

59.19 	Section 1. Minnesota Statutes 2018, section 46.131, subdivision 11, is amended to read:
59.20 		Subd. 11.Financial institutions account; appropriation. (a) The financial institutions 
59.21 	account is created as a separate account in the special revenue fund. The account consists 
59.22 	of funds received from assessments under subdivision 7, examination fees under subdivision 
59.23 	8, and license and renewal fees under section 216C.437, subdivision 12. Earnings, including 
59.24 	interest, dividends, and any other earnings arising from account assets, must be credited to 
59.25 	the account.
59.26 	(b) The account consists of funds received from assessments under subdivision 7, 
59.27 	examination fees under subdivision 8, and funds received pursuant to subdivision 10 and 
59.28 	the following provisions: sections 53B.09; 53B.11, subdivision 1; and 58A.045, subdivision 
59.29 	2.
59.30 	(b) (c) Funds in the account are annually appropriated to the commissioner of commerce 
59.31 	for activities under this section.

59.32 	EFFECTIVE DATE. This section is effective July 1, 2019.

60.1 	Sec. 2. Minnesota Statutes 2018, section 46.131, is amended by adding a subdivision to 
60.2 	read:
60.3 		Subd. 12.Limitations on assessments. The sum of the assessments levied under 
60.4 	subdivision 7 for a fiscal period beginning on July 1 and ending June 30 thereafter shall not 
60.5 	exceed 100 percent of the sum of the assessments levied for the fiscal period beginning one 
60.6 	year prior.

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

60.8 	ARTICLE 7
60.9 	REAL ESTATE APPRAISER REGULATION

60.10 	Section 1. Minnesota Statutes 2018, section 82B.021, subdivision 14, is amended to read:
60.11 		Subd. 14.Federal Appraisal Subcommittee. "Federal Appraisal Subcommittee" means 
60.12 	the appraisal subcommittee of the Federal Financial Institutions Examinations Council under 
60.13 	United States Code, title 12, section 3301 et seq.

60.14 	Sec. 2. Minnesota Statutes 2018, section 82B.021, subdivision 15, is amended to read:
60.15 		Subd. 15.Federal financial institutions regulatory agency. "Federal financial 
60.16 	institutions regulatory agency" means the Board of Governors of the Federal Reserve System,
60.17 	Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the 
60.18 	Office of the Comptroller of the Currency, the Office of Thrift Supervision, or the National 
60.19 	Credit Union Administration.

60.20 	Sec. 3. Minnesota Statutes 2018, section 82B.073, is amended by adding a subdivision to 
60.21 	read:
60.22 		Subd. 2a.Compensation. Members of the board must be compensated in accordance 
60.23 	with section 15.059.

60.24 	Sec. 4. Minnesota Statutes 2018, section 82B.09, subdivision 3, is amended to read:
60.25 		Subd. 3.Fees to Federal Appraisal Subcommittee. In addition to the fees required for 
60.26 	licensure under this section, the commissioner must collect and remit such other fees as are 
60.27 	required by the Federal Appraisal Subcommittee.

61.1 	Sec. 5. Minnesota Statutes 2018, section 82B.095, is amended by adding a subdivision to 
61.2 	read:
61.3 		Subd. 3.Conformance to Appraisal Qualifications Board criteria. (a) The 
61.4 	requirements to obtain a trainee real property appraiser, licensed real property appraiser, 
61.5 	certified residential real property appraiser, or certified general real property appraiser 
61.6 	license are the education, examination, and experience requirements established by the 
61.7 	Appraiser Qualifications Board of the Appraisal Foundation and published in the most 
61.8 	recent version of the Real Property Appraiser Qualification Criteria.
61.9 	(b) An applicant must complete the applicable education and experience requirements 
61.10 	before taking the required examination.

61.11 	Sec. 6. Minnesota Statutes 2018, section 82B.11, is amended by adding a subdivision to 
61.12 	read:
61.13 		Subd. 2a.Trainee real property appraiser. The scope of practice for a trainee real 
61.14 	property appraiser is the appraisal of properties which a certified residential real property 
61.15 	appraiser or certified general real property appraiser acting as the supervisory appraiser is 
61.16 	permitted and competent to appraise.

61.17 	Sec. 7. Minnesota Statutes 2018, section 82B.11, subdivision 6, is amended to read:
61.18 		Subd. 6.Temporary practice. (a) The commissioner shall issue a license for temporary 
61.19 	practice as a real estate appraiser under subdivision 3, 4, or 5 to a person certified or licensed 
61.20 	by another state if:
61.21 	(1) the property to be appraised is part of a federally related transaction and the person 
61.22 	is licensed to appraise property limited to the same transaction value or complexity provided 
61.23 	in subdivision 3, 4, or 5;
61.24 	(2) (1) the appraiser's business is of a temporary nature; and
61.25 	(3) (2) the appraiser registers with the commissioner to obtain a temporary license before 
61.26 	conducting appraisals within the state.
61.27 	(b) The term of a temporary practice license is the lesser of:
61.28 	(1) the time required to complete the assignment; or
61.29 	(2) 12 months.
61.30 	If more than 12 months are necessary to complete the assignment, a new temporary 
61.31 	application and fee is required.

62.1 	Sec. 8. Minnesota Statutes 2018, section 82B.13, subdivision 1, is amended to read:
62.2 		Subdivision 1.Trainee real property appraiser. (a) As a prerequisite for licensing as 
62.3 	a trainee real property appraiser, an applicant must present evidence satisfactory to the 
62.4 	commissioner that the person has successfully completed:
62.5 	(1) at least 75 hours of prelicense courses approved by the commissioner. Fifteen of the 
62.6 	75 hours must include successful completion of the 15-hour national USPAP course; and
62.7 	(2) in addition to the required hours under clause (1), a six-hour course that is specifically 
62.8 	oriented to the requirements and responsibilities of supervisory appraisers and trainee 
62.9 	appraisers. A course approved by the commissioner for the purposes of this subdivision 
62.10 	must be given the course title "Minnesota Supervisor/Trainee Appraiser Course." This 
62.11 	course must not be counted toward qualifying education to upgrade to a higher level appraiser 
62.12 	license.
62.13 	(b) All qualifying education must be completed within the five-year period prior to the 
62.14 	date of submission of a trainee real property appraiser license application.

62.15 	Sec. 9. Minnesota Statutes 2018, section 82B.195, subdivision 2, is amended to read:
62.16 		Subd. 2.Disclosure requirements. In addition to the requirements of the standards of 
62.17 	professional appraisal practice as defined by section 82B.021, subdivision 31, an appraiser 
62.18 	must, prior to performing any appraisal service which requires licensing pursuant to this 
62.19 	chapter, disclose in writing to the person contracting for the appraisal service the information 
62.20 	identified in clause (4). In addition, an appraiser must prepare a written disclosure providing 
62.21 	the information identified in clauses (1) to (13). The written disclosure must be included as 
62.22 	part of the final written appraisal report. As specified in this subdivision, an appraiser must:
62.23 	(1) disclose who has employed the appraiser;
62.24 	(2) disclose who the appraisal is rendered for, if not the person who employed the 
62.25 	appraiser;
62.26 	(3) disclose the purpose of the appraisal, including an explanation of the difference 
62.27 	between the appraisal being given and an appraisal of fee simple market valuation;
62.28 	(4) disclose any conflict of interest or situation which might reasonably be perceived to 
62.29 	be a conflict of interest which must include, but not be limited to, the following situations:
62.30 	(i) whether the appraiser has any ownership interest in the subject property or contiguous 
62.31 	properties;
63.1 	(ii) whether there is an ownership interest by a spouse, parent, or child of the appraiser 
63.2 	in the property or contiguous properties; and
63.3 	(iii) whether the appraiser has a continuing business relationship with one of the parties, 
63.4 	for example, any part-time or full-time employment of the appraiser, spouse, children living 
63.5 	at home, or dependent children.
63.6 	Failure to promptly give notification of a conflict must be considered a violation of the 
63.7 	standards of professional appraisal practice;
63.8 	(5) disclose that the appraisal is a reevaluation and identify the areas of difference 
63.9 	between the two appraisals and the justification for the changes;
63.10 	(6) disclose any facts concerning the valuation needed for loan purposes or similar 
63.11 	information that was provided to the appraiser before or during the appraisal;
63.12 	(7) disclose that the appraiser has not performed appraisals of the type requested or for 
63.13 	the type of property to be appraised as a regular part of the appraiser's business in the 
63.14 	preceding five-year period, provided that if the appraiser asserts qualification by training 
63.15 	or related experience to perform the appraisal, the appraiser must set forth the training or 
63.16 	experience and how it is applicable to the appraisal;
63.17 	(8) disclose the license classification of the appraiser and the types of appraisals that the 
63.18 	appraiser is authorized to conduct under the licensure;
63.19 	(9) disclose any lack of experience or training that would affect the ability of the appraiser 
63.20 	to perform the appraisal or could cause rejection of the appraisal by the party requiring the 
63.21 	appraisal;
63.22 	(10) disclose any appraisal on the same property made by the appraiser in the last three 
63.23 	years;
63.24 	(11) disclose all pertinent assumptions upon which a valuation based upon income from 
63.25 	the property is derived such as expected occupancy rates, rental rates, construction of future 
63.26 	improvements, roads, or highways; and
63.27 	(12) prior to performing the appraisal, disclose whether the appraiser has previously 
63.28 	been to the property; and
63.29 	(13) disclose any other fact or circumstance that could bring the reliability of the appraisal 
63.30 	or the impartiality of the appraiser into question.

64.1 	Sec. 10. Minnesota Statutes 2018, section 82B.21, is amended to read:
64.2 	82B.21 CLASSIFICATION OF SERVICES.
64.3 	A client or employer may retain or employ a licensed real estate appraiser to act as a 
64.4 	disinterested third party in giving an unbiased estimate of value or analysis; to provide a 
64.5 	market analysis to facilitate the client's or employer's objectives; or to perform a limited 
64.6 	appraisal. The appraisal and the appraisal report must comply with the provisions of this 
64.7 	chapter and the uniform standards of professional appraisal practice.

64.8 	Sec. 11. REPEALER.
 64.9 	Minnesota Statutes 2018, sections 82B.021, subdivision 17; 82B.095, subdivision 2; 
64.10 	82B.10, subdivisions 1, 2, 3, 4, 5, 6, 8, and 9; 82B.11, subdivision 2; 82B.12; 82B.13, 
64.11 	subdivisions 1a, 3, 4, 5, 6, 7, and 8; and 82B.14, are repealed.

64.12 	Sec. 12. EFFECTIVE DATE.
 64.13 	Sections 1 to 11 are effective January 1, 2020.

64.14 	ARTICLE 8
64.15 	ENERGY POLICY

64.16 	Section 1. Minnesota Statutes 2018, section 116C.7792, is amended to read:
64.17 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
64.18 	The utility subject to section 116C.779 shall operate a program to provide solar energy 
64.19 	production incentives for solar energy systems of no more than a total aggregate nameplate 
64.20 	capacity of 40 kilowatts directalternating current per premise. The owner of a solar energy 
64.21 	system installed before June 1, 2018, is eligible to receive a production incentive under this 
64.22 	section for any additional solar energy systems constructed at the same customer location, 
64.23 	provided that the aggregate capacity of all systems at the customer location does not exceed 
64.24 	40 kilowatts. The program shall be operated for eight consecutive calendar years commencing 
64.25 	in 2014. $5,000,000 shall be allocated in each of the first four years, $15,000,000 in the 
64.26 	fifth year, $10,000,000 in each of the sixth and seventh years, and $5,000,000 in the eighth 
64.27 	year from funds withheld from transfer to the renewable development account under section 
64.28 	116C.779, subdivision 1, paragraphs (b) and (e), and placed in a separate account for the 
64.29 	purpose of the solar production incentive program operated by the utility and not for any 
64.30 	other program or purpose. Any unspent amount allocated in the fifth year is available until 
64.31 	December 31 of the sixth year. Any unspent amount remaining at the end of any other 
65.1 	allocation year must be transferred to the renewable development account. The solar system 
65.2 	must be sized to less than 120 percent of the customer's on-site annual energy consumption 
65.3 	when combined with other distributed generation resources and subscriptions provided 
65.4 	under section 216B.1641 associated with the premise. The production incentive must be 
65.5 	paid for ten years commencing with the commissioning of the system. The utility must file 
65.6 	a plan to operate the program with the commissioner of commerce. The utility may not 
65.7 	operate the program until it is approved by the commissioner. A change to the program to 
65.8 	include projects up to a nameplate capacity of 40 kilowatts or less does not require the utility 
65.9 	to file a plan with the commissioner. Any plan approved by the commissioner of commerce 
65.10 	must not provide an increased incentive scale over prior years unless the commissioner 
65.11 	demonstrates that changes in the market for solar energy facilities require an increase.

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

65.13 	Sec. 2. Minnesota Statutes 2018, section 216B.16, subdivision 6a, is amended to read:
65.14 		Subd. 6a.Construction work in progress. To the extent that construction work in 
65.15 	progress is included in the rate base, the commission shall determine in its discretion whether 
65.16 	and to what extent the income used in determining the actual return on the public utility 
65.17 	property shall include an allowance for funds used during construction, considering the 
65.18 	following factors:
65.19 	(1) the magnitude of the construction work in progress as a percentage of the net 
65.20 	investment rate base;
65.21 	(2) the impact on cash flow and the utility's capital costs;
65.22 	(3) the effect on consumer rates;
65.23 	(4) whether it confers a present benefit upon an identifiable class or classes of customers; 
65.24 	and
65.25 	(5) whether it is of a short-term nature or will be imminently useful in the provision of 
65.26 	utility service; and
65.27 	(6) for a new nuclear powered generating plant with construction commencing after 
65.28 	June 1, 2019, no cost associated with owning, operating, maintaining, or financing the plant 
65.29 	may be approved or recovered from customers, either in rate base or through any other 
65.30 	means, before it is fully operational and used for service.

66.1 	Sec. 3. Minnesota Statutes 2018, section 216B.1641, is amended to read:
66.2 	216B.1641 COMMUNITY SOLAR GARDEN.
66.3 	(a) The public utility subject to section 116C.779 shall file by September 30, 2013 2019, 
66.4 	a plan with the commission to operate a community solar garden program which shall begin 
66.5 	operations within 90 days after commission approval of the plan. Upon approval of the 
66.6 	program required under this section, a program approved under this section before September 
66.7 	30, 2019, must cease operations, except that a community solar garden for which an 
66.8 	application is deemed complete under a prior program may continue to operate under that 
66.9 	program. Other public utilities may file an application at their election. The community 
66.10 	solar garden program must be designed to offset the energy use of not less than five 
66.11 	subscribers in each community solar garden facility of which no single subscriber has more 
66.12 	than a 40 percent interest. The owner of the community solar garden may be a public utility 
66.13 	or any other entity or organization that contracts to sell the output from the community solar 
66.14 	garden to the utility under section 216B.164. There shall be no limitation on the number or 
66.15 	cumulative generating capacity of community solar garden facilities other than the limitations 
66.16 	imposed under section 216B.164, subdivision 4c, or other limitations provided in law or 
66.17 	regulations.  The public utility must accept qualified proposals for community solar gardens 
66.18 	each year in a form and on a schedule specified in the program approved by the commission. 
66.19 	The public utility subject to this section may submit qualified proposals to the program.
66.20 	(b) The public utility must submit evaluations of all qualified proposals to the 
66.21 	commission, along with recommendations regarding which qualified proposals should be 
66.22 	accepted. The commission must select the qualified proposals the public utility must accept. 
66.23 	The qualified proposals with the lowest cost to the public utility's customers must be selected. 
66.24 	The total nameplate capacity of qualified proposals selected by the commission must not 
66.25 	exceed 25 megawatts per year.
66.26 	(c) A solar garden is a facility that generates electricity by means of a ground-mounted 
66.27 	or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the 
66.28 	electricity generated in proportion to the size of their subscription. The solar garden must 
66.29 	have a nameplate capacity of no more than one megawatt. When determining the size of a 
66.30 	community solar garden under this paragraph, the nameplate capacity of the community 
66.31 	solar garden must be combined with the nameplate capacity of any other community solar 
66.32 	garden that:
66.33 	(1) is constructed within the same 12-month period as the community solar garden; and
67.1 	(2) exhibits characteristics indicating a single development with the community solar 
67.2 	garden, including but not limited to ownership structure, shared interconnection, revenue 
67.3 	sharing arrangements, and common debt or equity financing.
67.4 	Each subscription shall be sized to represent at least 200 watts of the community solar 
67.5 	garden's generating capacity and to supply, when combined with other distributed generation 
67.6 	resources serving the premises, no more than 120 percent of the average annual consumption 
67.7 	of electricity by each subscriber at the premises to which the subscription is attributed.
67.8 	(c)(d) The solar generation facility must be located in the service territory of the public 
67.9 	utility filing the plan. Subscribers must be retail customers of the public utility located in 
67.10 	the same county or a county contiguous to where the facility is located.
67.11 	(d)(e) The public utility must purchase from the community solar garden all energy 
67.12 	generated by the community solar garden. The purchase shall be at the rate calculated under 
67.13 	section 216B.164, subdivision 10, or, until that rate for the public utility has been approved 
67.14 	by the commission, the applicable retail rate. A solar garden is eligible for any incentive 
67.15 	programs offered under either section 116C.7792 or section 216C.415  proposed in the 
67.16 	qualified proposal submitted under paragraph (a). A subscriber's portion of the purchase 
67.17 	shall be provided by a credit on the subscriber's bill.  Notwithstanding any other provision 
67.18 	of law, the commission must not increase the rate paid for energy from the community solar 
67.19 	garden from the amount contained in the proposal.
67.20 	(e)(f) The commission may approve, disapprove, or modify a community solar garden 
67.21 	program. Any plan approved by the commission must:
67.22 	(1) reasonably allow for the creation, financing, and accessibility of community solar 
67.23 	gardens;
67.24 	(2) establish uniform standards, fees, and processes for the interconnection of community 
67.25 	solar garden facilities that allow the public utility to recover reasonable interconnection 
67.26 	costs for each community solar garden;
67.27 	(3) not apply different requirements to utility and nonutility community solar garden 
67.28 	facilities;
67.29 	(4) be consistent with the public interest;
67.30 	(5) identify the information that must be provided to potential subscribers to ensure fair 
67.31 	disclosure of future costs and benefits of subscriptions;
67.32 	(6) include a program implementation schedule;
68.1 	(7) identify all proposed rules, fees, and charges; and
68.2 	(8) identify the means by which the program will be promoted.;
68.3 	(9) certify that the following information is contained in any promotional materials 
68.4 	developed by the solar garden owner or the utility purchasing the solar garden's generation 
68.5 	and is provided separately in writing to prospective subscribers at least 15 days prior to the 
68.6 	date a contract is entered into by the subscriber and the community solar garden owner:
68.7 	(i) an estimate of the annual generation of electricity by the community solar garden, 
68.8 	calculated using the formula developed by the commission under paragraph (l);
68.9 	(ii) an estimate of the length of time required to fully recover a subscriber's initial 
68.10 	lump-sum payments made to the owner of the solar garden prior to the delivery of electricity 
68.11 	to the subscriber by the solar garden, calculated using the formula developed by the 
68.12 	commission under paragraph (l); and
68.13 	(iii) a commission-approved, standardized method for calculating the effect of future 
68.14 	electricity prices on community solar garden subscriptions based on the average residential 
68.15 	customer electric bill;
68.16 	(10) require a solar garden owner to provide to prospective subscribers a completed 
68.17 	community solar garden subscriber disclosure checklist standard form at least 15 days prior 
68.18 	to the date a contract is entered into by the subscriber and the community solar garden 
68.19 	owner. The disclosure checklist shall include the following statement, in at least 12 point 
68.20 	type "utility rates and other federal, state, or local tax subsidies are subject to change. These 
68.21 	changes cannot be accurately predicted. Projected savings from your solar power subscription 
68.22 	are, therefore, subject to change;
68.23 	(11) certify that the utility and the solar garden owner must submit copies of all marketing 
68.24 	and promotional material and sample contracts to the commission, and that the materials 
68.25 	are updated periodically;
68.26 	(12) certify that the solar garden owner has placed sufficient financial resources into an 
68.27 	escrow account in order to reimburse subscribers for any financial losses incurred if the 
68.28 	project fails to meet the contract provisions;
68.29 	(13) provide a mechanism for subscribers to transfer subscriptions to other new or current 
68.30 	subscribers, or to cancel subscriptions for a full refund;
68.31 	(14) require a solar garden owner and the utility purchasing electricity generated by the 
68.32 	solar garden to forward customer complaints regarding the operation and administration of 
68.33 	the solar garden to the commission;
69.1 	(15) require that the contract between a subscriber and the solar garden owner contains 
69.2 	a warranty for a minimum level of electricity to be delivered to the subscriber from the 
69.3 	community garden; and
69.4 	(16) reflect the commission's determination that:
69.5 	(i) the plan is financially viable; and
69.6 	(ii) the contract between a subscriber and the solar garden owner is fair, reasonable, and 
69.7 	not discriminatory.
69.8 	(f)(g) Notwithstanding any other law, neither the manager of nor the subscribers to a 
69.9 	community solar garden facility shall be considered a utility solely as a result of their 
69.10 	participation in the community solar garden facility.
69.11 	(g)(h) Within 180 days of commission approval of a plan under this section, a public 
69.12 	utility shall begin crediting subscriber accounts for each community solar garden facility 
69.13 	in its service territory, and shall file with the commissioner of commerce a description of 
69.14 	its crediting system.
69.15 	(i) The nonprofit partnership established under section 216C.385, must develop a 
69.16 	community solar garden subscriber disclosure checklist standard form for use under paragraph 
69.17 	(f), clause (10).
69.18 	(j) The commission shall require a community solar garden developer to submit a 
69.19 	registration form. A registration form shall include:
69.20 	(1) the name, street address, mailing address, electronic mail address, and telephone 
69.21 	number of the registrant;
69.22 	(2) the name and contact information of any registered agency or any person designated 
69.23 	by the registrant to receive notices and other communications from the commission;
69.24 	(3) the name, address, and title of each officer or director;
69.25 	(4) if the company is publicly traded, the company's most recent annual report filed with 
69.26 	the United States Securities and Exchange Commission;
69.27 	(5) if the company is not publicly traded, the company's current balance sheet;
69.28 	(6) a statement describing each jurisdiction where the registrant or its affiliate operates; 
69.29 	and
69.30 	(7) any other information required by the commission.
70.1 	The commission may reject an application that does not contain all of the information 
70.2 	required by this paragraph. The commission must approve or deny any application for 
70.3 	registration within 30 days of receiving the application. The commission may suspend or 
70.4 	revoke a registration and impose fees or penalties upon complaint by any interested party 
70.5 	or upon the commission's own motion after notice and opportunity for hearing. A community 
70.6 	solar garden developer registered under this paragraph must cooperate with commission 
70.7 	hearings and proceedings regarding customer complaints. A registered community solar 
70.8 	garden developer shall keep confidential customer-specific or private information relating 
70.9 	to the customer's electricity usage, financial situation, credit history, and other 
70.10 	residence-specific information obtained to implement the subscription contract.
70.11 	(h) (k) For the purposes of this section, the following terms have the meanings given:
70.12 	(1) "subscriber" means a retail customer of a public utility who owns one or more 
70.13 	subscriptions of a community solar garden facility interconnected with that public utility; 
70.14 	and
70.15 	(2) "subscription" means a contract between a subscriber and the owner of a solar garden.; 
70.16 	and
70.17 	(3) "qualified proposal" means a proposal that meets the requirements of the community 
70.18 	solar garden program approved by the commission and that:
70.19 	(i) provides evidence the proposer is able to construct, own, and operate the community 
70.20 	solar garden for its proposed life;
70.21 	(ii) delivers at least 60 percent of the energy generated by the community solar garden 
70.22 	facility to residential customers;
70.23 	(iii) includes a plan to seek low-income residential customers in the community solar 
70.24 	garden;
70.25 	(iv) provides a firm rate that customers of the public utility must pay for energy from 
70.26 	the community solar garden for the life of the community solar garden; and
70.27 	(v) describes any benefits the community solar garden provides to the public utility, the 
70.28 	public utility's customers, the electric utility grid, the environment, and Minnesota.
70.29 	(l) By July 30, 2019, the commission must develop a formula to be used by all solar 
70.30 	garden owners to estimate the annual amount of electricity generated by the solar garden.
70.31 	(m) By July 30, 2019, the commission must develop a formula used by all solar garden 
70.32 	owners to estimate the length of time required to fully recover a subscriber's lump-sum 
71.1 	payments made to the solar garden owner prior to the delivery of electricity to the subscriber 
71.2 	by the solar garden.

71.3 	EFFECTIVE DATE. This section is effective the day following final enactment and 
71.4 	applies to any plan submitted to the commission for approval on or after that date.

71.5 	Sec. 4. Minnesota Statutes 2018, section 216B.1642, subdivision 2, is amended to read:
71.6 		Subd. 2.Recognition of beneficial habitat. An owner of a solar site implementing solar 
71.7 	site management practices under this section may claim that the site provides benefits to 
71.8 	gamebirds, songbirds, and pollinators only if the site adheres to guidance set forth by the 
71.9 	pollinator plan provided by the Board of Water and Soil Resources or any other gamebird, 
71.10 	songbird, or pollinator foraging-friendly vegetation standard established by the Board of 
71.11 	Water and Soil Resources. An owner making a beneficial habitat claim must:
71.12 	(1) make the site's vegetation management plan available to the public and;
71.13 	(2) provide a copy of the plan to a Minnesota nonprofit solar industry trade association; 
71.14 	and
71.15 	(3) report on its site management practices to the Board of Water and Soil Resources, 
71.16 	on a standard reporting form developed by the board for solar site management practices, 
71.17 	by June 1, 2020, and every third year thereafter. An owner that enters into operation after 
71.18 	June 1, 2020, shall report to the board on its site management practices on or before June 
71.19 	1 of the year following commencement of operations and every third year thereafter.

71.20 	Sec. 5. Minnesota Statutes 2018, section 216B.1691, subdivision 1, is amended to read:
71.21 		Subdivision 1.Definitions. (a) Unless otherwise specified in law, "eligible energy 
71.22 	technology" means an energy technology that generates electricity from the following 
71.23 	renewable energy sources:
71.24 	(1) solar;
71.25 	(2) wind;
71.26 	(3) hydroelectric with a capacity of less than 100 megawatts;
71.27 	(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from 
71.28 	the resources listed in this paragraph; or
71.29 	(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester 
71.30 	system; the predominantly organic components of wastewater effluent, sludge, or related 
71.31 	by-products from publicly owned treatment works, but not including incineration of 
72.1 	wastewater sludge to produce electricity; and an energy recovery facility used to capture 
72.2 	the heat value of mixed municipal solid waste or refuse-derived fuel from mixed municipal 
72.3 	solid waste as a primary fuel.
72.4 	(b) "Electric utility" means a public utility providing electric service, a generation and 
72.5 	transmission cooperative electric association, a municipal power agency, or a power district.
72.6 	(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by 
72.7 	an electric utility to retail customers of the electric utility or to a distribution utility for 
72.8 	distribution to the retail customers of the distribution utility. "Total retail electric sales" 
72.9 	does not include the sale of hydroelectricity supplied by a federal power marketing 
72.10 	administration or other federal agency, regardless of whether the sales are directly to a 
72.11 	distribution utility or are made to a generation and transmission utility and pooled for further 
72.12 	allocation to a distribution utility.

72.13 	Sec. 6. Minnesota Statutes 2018, section 216B.243, subdivision 3b, is amended to read:
72.14 		Subd. 3b.Nuclear power plant; new construction prohibited; relicensing Additional 
72.15 	storage of spent nuclear fuel. (a) The commission may not issue a certificate of need for 
72.16 	the construction of a new nuclear-powered electric generating plant.
72.17 	(b) Any certificate of need for additional storage of spent nuclear fuel for a facility 
72.18 	seeking a license extension shall address the impacts of continued operations over the period 
72.19 	for which approval is sought.

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

72.21 	Sec. 7. Minnesota Statutes 2018, section 216C.435, subdivision 3a, is amended to read:
72.22 		Subd. 3a.Cost-effective energy improvements. "Cost-effective energy improvements" 
72.23 	mean:
72.24 	(1) any new construction, renovation, or retrofitting of:(i) qualifying commercial real 
72.25 	property to improve energy efficiency that is permanently affixed to the property, results 
72.26 	in a net reduction in energy consumption without altering the principal source of energy, 
72.27 	and has been identified in an energy audit as repaying the purchase and installation costs 
72.28 	in 20 years or less, based on the amount of future energy saved and estimated future energy 
72.29 	prices; or
72.30 	(ii)(2) any renovation or retrofitting of qualifying residential real property that is 
72.31 	permanently affixed to the property and is eligible to receive an incentive through a program 
72.32 	offered by the electric or natural gas utility that provides service under section 216B.241
73.1 	to the property or is otherwise determined to be a cost-effective energy improvement by 
73.2 	the commissioner under section 216B.241, subdivision 1d, paragraph (a);
73.3 	(2)(3) permanent installation of new or upgraded electrical circuits and related equipment 
73.4 	to enable electrical vehicle charging; or
73.5 	(3)(4) a solar voltaic or solar thermal energy system attached to, installed within, or 
73.6 	proximate to a building that generates electrical or thermal energy from a renewable energy 
73.7 	source that has been identified in an energy audit or renewable energy system feasibility 
73.8 	study as repaying their purchase and installation costs in 20 years or less, based on the 
73.9 	amount of future energy saved and estimated future energy prices.

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

73.16 	Sec. 9. Minnesota Statutes 2018, section 216C.436, subdivision 4, is amended to read:
73.17 		Subd. 4.Financing terms. Financing provided under this section must have:
73.18 	(1) a cost-weighted average maturity not exceeding the useful life of the energy 
73.19 	improvements installed, as determined by the implementing entity, but in no event may a 
73.20 	term exceed 20 years;
73.21 	(2) a principal amount not to exceed the lesser of:
73.22 	(i) the greater of 20 percent of the assessed value of the real property on which the 
73.23 	improvements are to be installed or 20 percent of the real property's appraised value, accepted 
73.24 	or approved by the mortgage lender; or
73.25 	(ii) the actual cost of installing the energy improvements, including the costs of necessary 
73.26 	equipment, materials, and labor, the costs of each related energy audit or renewable energy 
73.27 	system feasibility study, and the cost of verification of installation; and
73.28 	(3) an interest rate sufficient to pay the financing costs of the program, including the 
73.29 	issuance of bonds and any financing delinquencies.

74.1 	Sec. 10. Minnesota Statutes 2018, section 216C.436, is amended by adding a subdivision 
74.2 	to read:
74.3 		Subd. 10.Improvements; real property or fixture. A cost-effective energy improvement 
74.4 	financed under a PACE loan program, including all equipment purchased in whole or in 
74.5 	part with loan proceeds under a loan program, is deemed real property or a fixture attached 
74.6 	to the real property.

74.7 	Sec. 11. Minnesota Statutes 2018, section 609.594, is amended to read:
74.8 	609.594 DAMAGE TO PROPERTY OF CRITICAL PUBLIC SERVICE 
74.9 	FACILITIES, UTILITIES, AND PIPELINES.
74.10 		Subdivision 1.Definitions. As used in this section:
74.11 	(1) "critical public service facility" includes railroad yards and stations, bus stations, 
74.12 	airports, and other mass transit facilities; oil refineries; storage areas or facilities for hazardous 
74.13 	materials, hazardous substances, or hazardous wastes; and bridges;
74.14 	(2) "pipeline" has the meaning given in section 609.6055, subdivision 1; and
74.15 	(3) "utility" includes: (i) any organization defined as a utility in section 216C.06, 
74.16 	subdivision 18; (ii) any telecommunications carrier or telephone company regulated under 
74.17 	chapter 237; and (iii) any local utility or enterprise formed for the purpose of providing 
74.18 	electrical or gas heating and power, telephone, water, sewage, wastewater, or other related 
74.19 	utility service, which is owned, controlled, or regulated by a town, a statutory or home rule 
74.20 	charter city, a county, a port development authority, the Metropolitan Council, a district 
74.21 	heating authority, a regional commission or other regional government unit, or a combination 
74.22 	of these governmental units.
74.23 		Subd. 2.Prohibited conduct; penalty. Whoever (a) A person who causes damage to 
74.24 	the physical property of a critical public service facility, utility, or pipeline with the intent 
74.25 	to significantly disrupt the operation of or the provision of services by the facility, utility, 
74.26 	or pipeline and without the consent of one authorized to give consent, is guilty of a felony 
74.27 	and may be sentenced to imprisonment for not more than ten years or to payment of a fine 
74.28 	of not more than $20,000, or both.
74.29 	(b) A person who alters the equipment or physical operations of a pipeline with the intent 
74.30 	to disrupt the operation of or the provision of services by the pipeline and without the consent 
74.31 	of one authorized to give consent is guilty of a felony and may be sentenced to imprisonment 
74.32 	for not more than seven years or to payment of a fine of not more than $20,000, or both.
75.1 	(c) Nothing in this section shall be interpreted to prohibit any of the following: (1) action 
75.2 	by a member of a labor organization in the course of a labor dispute, including picketing, 
75.3 	handbilling, bannering, work stoppages, or strikes, as long as the member does not cause 
75.4 	damage to the physical property or alter the equipment or physical operations of a critical 
75.5 	public service facility, utility, or pipeline with the intent to disrupt its operations or provision 
75.6 	of services; (2) access to property by a representative of a labor organization under a worksite 
75.7 	visitation clause of a collective bargaining agreement; (3) access to property by a 
75.8 	representative of a building trades labor or management organization; or (4) conduct protected 
75.9 	by United States Code, title 29, section 157, including labor-organizing activity.
75.10 		Subd. 3.Detention authority; immunity. An employee or other person designated by 
75.11 	a critical public service facility, utility, or pipeline to ensure the provision of services by 
75.12 	the critical public service facility or the safe operation of the equipment or facility of the 
75.13 	utility or pipeline who has reasonable cause to believe that a person is violating this section 
75.14 	may detain the person as provided in this subdivision. The person detained must be promptly 
75.15 	informed of the purpose of the detention and may not be subjected to unnecessary or 
75.16 	unreasonable force or interrogation. The employee or other designated person must notify 
75.17 	a peace officer promptly of the detention and may only detain the person for a reasonable 
75.18 	period of time. No employee or other, designated person, or employer of the employee or 
75.19 	designated person is criminally or civilly liable for any detention that the employee or person 
75.20 	reasonably believed was authorized by and conducted in conformity with this subdivision.
75.21 		Subd. 4.Restitution. The court may order a person convicted of violating this section 
75.22 	to pay restitution for the costs and expenses resulting from the crime.

75.23 	EFFECTIVE DATE. This section is effective June 15, 2019, and applies to crimes 
75.24 	committed on or after that date.

75.25 	Sec. 12. Minnesota Statutes 2018, section 609.6055, is amended to read:
75.26 	609.6055 TRESPASS ON CRITICAL PUBLIC SERVICE FACILITY; UTILITY; 
75.27 	OR PIPELINE.
75.28 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
75.29 	meanings given.
75.30 	(b) "Critical public service facility" includes buildings and other physical structures, and 
75.31 	fenced in or otherwise enclosed property, of railroad yards and stations, bus stations, airports, 
75.32 	and other mass transit facilities; oil refineries; and storage areas or facilities for hazardous 
75.33 	materials, hazardous substances, or hazardous wastes. The term also includes nonpublic 
76.1 	portions of bridges. The term does not include railroad tracks extending beyond a critical 
76.2 	public service facility.
76.3 	(c) "Pipeline" includes an aboveground pipeline, a belowground pipeline housed in an 
76.4 	underground structure, and any equipment, facility, or building located in this state that is 
76.5 	used to transport natural or synthetic gas, crude petroleum or petroleum fuels or oil or their 
76.6 	derivatives, or hazardous liquids, to or within a distribution, refining, manufacturing, or 
76.7 	storage facility that is located inside or outside of this state. Pipeline does not include service 
76.8 	lines.
76.9 	(d) "Utility" includes:
76.10 	(1) any organization defined as a utility in section 216C.06, subdivision 18;
76.11 	(2) any telecommunications carrier or telephone company regulated under chapter 237; 
76.12 	and
76.13 	(3) any local utility or enterprise formed for the purpose of providing electrical or gas 
76.14 	heating and power, telephone, water, sewage, wastewater, or other related utility service, 
76.15 	which is owned, controlled, or regulated by a town, a statutory or home rule charter city, a 
76.16 	county, a port development authority, the Metropolitan Council, a district heating authority, 
76.17 	a regional commission or other regional government unit, or a combination of these 
76.18 	governmental units.
76.19 	The term does not include property located above buried power or telecommunications 
76.20 	lines or property located below suspended power or telecommunications lines, unless the 
76.21 	property is fenced in or otherwise enclosed.
76.22 	(e) "Utility line" includes power, telecommunications, and transmissions lines as well 
76.23 	as related equipment owned or controlled by a utility.
76.24 		Subd. 2.Prohibited conduct; penalty. (a) Whoever A person who enters or is found 
76.25 	upon property containing or upon which is being constructed a critical public service facility, 
76.26 	utility, or pipeline, without claim of right or consent of one who has the right to give consent 
76.27 	to be on the property, is guilty of a gross misdemeanor, if:
76.28 	(1) the person refuses to depart from the property on the demand of one who has the 
76.29 	right to give consent;
76.30 	(2) within the past six months, the person had been told by one who had the right to give 
76.31 	consent to leave the property and not to return, unless a person with the right to give consent 
76.32 	has given the person permission to return; or
77.1 	(3) the property is posted.
77.2 	(b) A person who enters or is found upon property containing or upon which is being 
77.3 	constructed: (1) a petroleum refinery, as defined in section 115C.02, subdivision 10a, 
77.4 	including buildings and other physical structures, or fenced in or otherwise enclosed property 
77.5 	of that petroleum refinery; or (2) a pipeline, with the intent to disrupt the operation of, 
77.6 	provision of services by, or construction of the petroleum refinery or pipeline, is guilty of 
77.7 	a felony and may be sentenced to imprisonment for not more than five years or to payment 
77.8 	of a fine of not more than $10,000, or both.
77.9 	(b) Whoever (c) A person who enters an underground structure that (1) contains a utility 
77.10 	line or pipeline and (2) is not open to the public for pedestrian use, without claim of right 
77.11 	or consent of one who has the right to give consent to be in the underground structure, is 
77.12 	guilty of a gross misdemeanor. The underground structure does not need to be posted for 
77.13 	this paragraph to apply.
77.14 	(d) Nothing in this section shall be interpreted to prohibit any of the following: (1) action 
77.15 	by a member of a labor organization in the course of a labor dispute, including picketing, 
77.16 	handbilling, bannering, work stoppages, or strikes, as long as the member does not cause 
77.17 	damage to the physical property or alter the equipment or physical operations of a critical 
77.18 	public service facility, utility, or pipeline with the intent to disrupt its operations or provision 
77.19 	of services; (2) access to property by a representative of a labor organization under a worksite 
77.20 	visitation clause of a collective bargaining agreement; (3) access to property by a 
77.21 	representative of a building trades labor or management organization; and (4) conduct 
77.22 	protected by United States Code, title 29, section 157, including labor-organizing activity.
77.23 		Subd. 3.Posting. For purposes of this section, a critical public service facility, utility, 
77.24 	or pipeline is posted if there are signs that:
77.25 	(1) state "no trespassing" or similar terms;
77.26 	(2) display letters at least two inches high;
77.27 	(3) state that Minnesota law prohibits trespassing on the property; and
77.28 	(4) are posted in a conspicuous place and at intervals of 500 feet or less.
77.29 		Subd. 4.Detention authority; immunity. An employee or other person designated by 
77.30 	a critical public service facility, utility, or pipeline to ensure the provision of services by 
77.31 	the critical public service facility or the safe operation of the equipment or facility of the 
77.32 	utility or pipeline who has reasonable cause to believe that a person is violating this section 
77.33 	may detain the person as provided in this subdivision. The person detained must be promptly 
78.1 	informed of the purpose of the detention and may not be subjected to unnecessary or 
78.2 	unreasonable force or interrogation. The employee or other designated person must notify 
78.3 	a peace officer promptly of the detention and may only detain the person for a reasonable 
78.4 	period of time. No employee or other, designated person, or employer of the employee or 
78.5 	designated person is criminally or civilly liable for any detention that the employee or person 
78.6 	reasonably believed was authorized by and conducted in conformity with this subdivision.
78.7 		Subd. 5.Arrest authority. A peace officer may arrest a person without a warrant if the 
78.8 	officer has probable cause to believe the person violated this section within the preceding 
78.9 	four hours. The arrest may be made even though the violation did not occur in the presence 
78.10 	of the peace officer.
78.11 		Subd. 6.Restitution. The court may order a person convicted of violating this section 
78.12 	to pay restitution for the costs and expenses resulting from the crime.

78.13 	EFFECTIVE DATE. This section is effective June 15, 2019, and applies to crimes 
78.14 	committed on or after that date.

78.15 	Sec. 13. Laws 2017, chapter 94, article 10, section 28, is amended to read:
78.16 	Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR 
78.17 	THERMAL REBATES.
 78.18 	(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner 
78.19 	of a solar thermal system whose application was approved by the commissioner of commerce 
78.20 	after the effective date of this act.
78.21 	(b) Unspent money remaining in the account established under Minnesota Statutes 2014, 
78.22 	section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF renewable 
78.23 	development account established under Minnesota Statutes 2016, section 116C.779, 
78.24 	subdivision 1.

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

78.26 	Sec. 14. Laws 2017, chapter 94, article 10, section 29, is amended to read:
78.27 	Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF 
78.28 	UNEXPENDED GRANT FUNDS.
 78.29 	(a) No later than 30 days after the effective date of this section, the utility subject to 
78.30 	Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person 
79.1 	who received a grant funded from the renewable development account previously established 
79.2 	under that subdivision:
79.3 	(1) after January 1, 2012; and
79.4 	(2) before January 1, 2012, if the funded project remains incomplete as of the effective 
79.5 	date of this section.
79.6 	The notice must contain the provisions of this section and instructions directing grant 
79.7 	recipients how unexpended funds can be transferred to the clean energy advancement fund
79.8 	renewable development account.
79.9 	(b) A recipient of a grant from the renewable development account previously established 
79.10 	under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after 
79.11 	receiving the notice required under paragraph (a), transfer any grant funds that remain 
79.12 	unexpended as of the effective date of this section to the clean energy advancement fund
79.13 	renewable development account if, by that effective date, all of the following conditions 
79.14 	are met:
79.15 	(1) the grant was awarded more than five years before the effective date of this section;
79.16 	(2) the grant recipient has failed to obtain control of the site on which the project is to 
79.17 	be constructed;
79.18 	(3) the grant recipient has failed to secure all necessary permits or approvals from any 
79.19 	unit of government with respect to the project; and
79.20 	(4) construction of the project has not begun.
79.21 	(c) A recipient of a grant from the renewable development account previously established 
79.22 	under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds 
79.23 	that remain unexpended five years after the grant funds are received by the grant recipient 
79.24 	if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant 
79.25 	recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary 
79.26 	of the receipt of the grant funds.
79.27 	(d) A person who transfers funds to the clean energy advancement fund renewable 
79.28 	development account under this section is eligible to apply for funding from the clean energy 
79.29 	advancement fund renewable development account.

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

80.1 	Sec. 15. DEPARTMENT OF COMMERCE; USE OF APPROPRIATIONS; 
80.2 	PROHIBITION.
 80.3 	The commissioner of commerce is prohibited from using appropriations to the Department 
80.4 	of Commerce to fund any activities related to, or supporting the preparation or filing of, an 
80.5 	appeal of a Public Utilities Commission order issuing a certificate of need in Docket No. 
80.6 	PL-9/CN-14-916 to the court of appeals or supreme court.

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

80.8 	Sec. 16. LEGISLATIVE ENERGY COMMISSION; MINNESOTA ENERGY GOALS 
80.9 	ANALYSIS.
 80.10 	(a) The Legislative Energy Commission is requested to examine the opportunities and 
80.11 	challenges of increasing either: (1) the renewable energy standard established in Minnesota 
80.12 	Statutes, section 216B.1691, subdivision 2a; or (2) the state's greenhouse gas 
80.13 	emissions-reductions goals established in Minnesota Statutes, section 216H.02, subdivision 
80.14 	1. In conducting their analysis, the commission shall consult with stakeholders, 
80.15 	representatives from the public, and technical and scientific experts.
80.16 	(b) The commission is requested to complete its examination so that any recommendations 
80.17 	for legislation are completed by January 15, 2020.

80.18 	ARTICLE 9
80.19 	CONSERVATION IMPROVEMENT PROGRAMS

80.20 	Section 1. [216B.2402] CONSERVATION IMPROVEMENT PROGRAMS FOR 
80.21 	CONSUMER-OWNED UTILITIES.
80.22 		Subdivision 1.Definitions. For the purpose of this section, the terms defined in this 
80.23 	subdivision have the meanings given to them:
80.24 	(a) "Consumer-owned utility" means a municipal gas utility, a municipal electric utility, 
80.25 	or a cooperative electric association.
80.26 	(b) "Cumulative lifetime savings" means the total electric energy or natural gas savings 
80.27 	in a given year from energy conservation improvements installed that year or in previous 
80.28 	years that are still operational and providing savings in that year because the measures have 
80.29 	not reached the end of their useful lives.
80.30 	(c) "Efficient electrification or conversion improvement" means a project that (1) results 
80.31 	in converting a customer from use of a fuel to the use of electric energy or natural gas sold 
81.1 	at retail by a utility subject to this section, resulting in a net increase of the use of electric 
81.2 	energy or natural gas and a net decrease in energy consumption overall on a fuel-neutral 
81.3 	basis, and (2) otherwise meets the criteria established in subdivision 8. An efficient 
81.4 	electrification improvement requires the installation of equipment that utilizes electric energy 
81.5 	or natural gas, resulting in a reduction or elimination of use of the previous fuel.
81.6 	(d) "Electric utility infrastructure projects" means projects owned by a consumer-owned 
81.7 	utility that replace or modify existing electric utility infrastructure, including utility-owned 
81.8 	buildings, if the replacement or modification conserves energy or uses energy more 
81.9 	efficiently.
81.10 	(e) "Energy conservation" means an action that results in a net reduction in electric 
81.11 	energy or natural gas consumption.
81.12 	(f) "Energy conservation improvement" means a project that results in energy efficiency 
81.13 	or energy conservation. Energy conservation improvement may include waste heat that is 
81.14 	recovered and converted into electricity, but does not include electric utility infrastructure 
81.15 	projects approved by the commission under section 216B.1636. Energy conservation 
81.16 	improvement includes waste heat recovered and used as thermal energy.
81.17 	(g) "Energy efficiency" means measures or programs, including energy conservation 
81.18 	measures or programs, that target consumer behavior, equipment, processes, or devices 
81.19 	designed to produce either an absolute decrease in consumption of electric energy or natural 
81.20 	gas or a decrease in consumption of electric energy or natural gas on a per unit of production 
81.21 	basis, without a reduction in the quality level of service provided to the energy consumer.
81.22 	(h) "Fuel" means energy consumed by a retail utility customer. Fuel includes electricity, 
81.23 	propane, natural gas, heating oil, gasoline, or diesel fuel.
81.24 	(i) "Fuel neutral" means an approach that compares the use of various fuels for a given 
81.25 	end use, using a common metric.
81.26 	(j) "Gross annual retail energy sales" means the total annual sale of electric to all retail 
81.27 	customers in a utility's or association's Minnesota service territory or, natural gas throughput 
81.28 	to all retail customers, including natural gas transportation customers, on a utility's 
81.29 	distribution system in Minnesota. Gross annual retail energy sales does not include:
81.30 	(1) gas sales to:
81.31 	(i) a large energy facility;
82.1 	(ii) a large customer facility whose natural gas utility has been exempted by the 
82.2 	commissioner under subdivision 13, with respect to natural gas sales made to the large 
82.3 	customer facility; and
82.4 	(iii) a commercial gas customer facility whose natural gas utility has been exempted by 
82.5 	the commissioner under subdivision 13, with respect to natural gas sales made to the 
82.6 	commercial gas customer facility;
82.7 	(2) electric sales to a large customer facility whose electric utility has been exempted 
82.8 	by the commissioner under subdivision 13, with respect to electric sales made to the large 
82.9 	facility; and
82.10 	(3) increased electric or natural gas sales from efficient electrification or conversion 
82.11 	caused by a utility program.
82.12 	(k) "Large customer facility" means all buildings, structures, equipment, and installations 
82.13 	at a single site that collectively (1) impose a peak electrical demand on an electric utility's 
82.14 	system of at least 20,000 kilowatts, measured in the same way as the utility that serves the 
82.15 	customer facility measures electric demand for billing purposes, or (2) consume at least 
82.16 	500,000,000 cubic feet of natural gas annually. When calculating peak electrical demand, 
82.17 	a large customer facility may include demand offset by on-site cogeneration facilities and, 
82.18 	if engaged in mineral extraction, may aggregate peak energy demand from the large customer 
82.19 	facility's mining processing operations.
82.20 	(l) "Large energy facility" has the meaning given it in section 216B.2421, subdivision 
82.21 	2, clause (1).
82.22 	(m) "Load management" means an activity, service, or technology to change the timing 
82.23 	or the efficiency of a customer's use of energy that allows a utility or a customer to respond 
82.24 	to local and regional energy system conditions, or to reduce peak demand for electric energy 
82.25 	or natural gas. Load management that reduces overall energy use is also energy conservation.
82.26 	(n) "Low-income programs" means energy conservation improvement programs that 
82.27 	directly serve the needs of low-income persons, including low-income renters and entities 
82.28 	that serve low-income customers."Low-income" is defined as 60 percent of state median 
82.29 	income, notwithstanding the criteria established in subdivision 5, paragraph (e). Multifamily 
82.30 	buildings of five units or more that are rented by low-income persons are eligible to be 
82.31 	served through low-income programs, which may include the upgrading of appliances, 
82.32 	heating and air conditioning equipment, and building envelope improvements.
82.33 	(o) "Member" has the meaning given to it in section 308B.005, subdivision 15.
83.1 	(p) "Qualifying utility" means a utility that supplies energy to a customer that enables 
83.2 	the customer to qualify as a large customer facility.
83.3 	(q) "Source energy" means the total amount of fuel required for a given purpose, 
83.4 	considering energy losses in the production, transmission, and delivery of that energy.
83.5 	(r) "Waste heat recovered and used as thermal energy" means capturing heat energy that 
83.6 	would be exhausted or dissipated to the environment from machinery, buildings, or industrial 
83.7 	processes, and productively using the recovered thermal energy where it is used to reduce 
83.8 	demand-side consumption of natural gas, electric energy, or both.
83.9 	(s) "Waste heat recovery converted into electricity" means an energy recovery process 
83.10 	that converts otherwise lost energy from the heat of exhaust stacks or pipes used for engines 
83.11 	or manufacturing or industrial processes, or the reduction of high pressure in water or gas 
83.12 	pipelines.
83.13 		Subd. 2.Applicability. This section applies to:
83.14 	(1) a cooperative electric association that provides retail service to more than 5,000 
83.15 	members;
83.16 	(2) a municipality that provides electric service to more than 1,000 retail customers; and
83.17 	(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales 
83.18 	to natural gas retail customers.
83.19 		Subd. 3.Savings goal. (a) Each individual consumer-owned utility subject to this section 
83.20 	has an annual energy savings goal equivalent to 1.5 percent of gross annual retail energy 
83.21 	sales.
83.22 	(b) A consumer-owned utility's savings goal is satisfied when the consumer-owned 
83.23 	utility achieves a savings equivalent of at least three-quarters of one percent of the 
83.24 	consumer-owned utility's gross annual retail energy sales from energy conservation 
83.25 	improvements, and up to three-quarters of one percent from the following utility activities:
83.26 	(1) energy savings from additional energy conservation improvements;
83.27 	(2) electric utility infrastructure projects;
83.28 	(3) net energy savings from efficient electrification and conversion improvements that 
83.29 	meet the criteria under subdivision 8; or
83.30 	(4) CIP solar rebates that meet the criteria provided under subdivision 9.
84.1 	(c) The energy savings goals specified must be calculated based on the most recent 
84.2 	three-year, weather-normalized average. When determining compliance with this subdivision, 
84.3 	a consumer-owned utility may elect to average annual energy savings over a period not to 
84.4 	exceed five years, as specified in the plan filed under subdivision 4. A consumer-owned 
84.5 	utility that uses annual plans may carry forward for up to five years any energy savings 
84.6 	exceeding 1.5 percent in a single year.
84.7 	(d) Nothing in this subdivision limits a utility's ability to report and recognize savings 
84.8 	in excess of three-quarters of one percent of the utility's gross annual retail energy sales 
84.9 	generated under paragraph (b), clauses (1), (2), and (3), provided the utility has satisfied 
84.10 	the three-quarters of one percent savings required under paragraph (b).
84.11 	(e) A consumer-owned utility subject to this section is not required to make energy 
84.12 	conservation improvements that are not cost-effective, even if the improvement is necessary 
84.13 	to attain the energy savings goal.
84.14 	(f) A consumer-owned utility may request that the commissioner adjust its annual energy 
84.15 	savings goal based on its historical conservation investment experience, customer class 
84.16 	makeup, load growth, a conservation potential study, impact on utility revenue that threatens 
84.17 	necessary system investment, or other factors the commissioner and consumer-owned utility 
84.18 	determines warrants an adjustment. The commissioner must adjust the savings goal to a 
84.19 	level the commissioner determines is supported by the record.
84.20 		Subd. 4.Consumer-owned utility; energy conservation and optimization plans. (a) 
84.21 	By June 1, 2021, each consumer-owned utility must file an energy conservation and 
84.22 	optimization plan with the commissioner. The plan must identify and outline the utility's 
84.23 	intended conservation improvement program, efficient electrification or conversion 
84.24 	improvement plans, load management plans, and other processes and programs to achieve 
84.25 	the energy savings goal. The plan may cover a period of time not to exceed five years. For 
84.26 	plans with a duration greater than one year, the consumer-owned utility's plan may include 
84.27 	years where the consumer-owned utility may not achieve the annual savings goal, provided 
84.28 	the total savings at the end of the plan meets, at a minimum, the otherwise applicable annual 
84.29 	savings goal for the utility. Beginning June 1, 2022, and each June 1 thereafter, each 
84.30 	consumer-owned utility must file an annual update identifying the status of, including total 
84.31 	expenditures and investments made to date, and any intended changes to its multiyear plan 
84.32 	filed under this subdivision. For consumer-owned utilities whose plans were completed the 
84.33 	prior June 1, a summary of the plan's result must be filed. A summary for a completed plan's 
84.34 	result must also be filed. The summary for a completed plan must include: (1) the total 
84.35 	savings achieved under the plan; (2) a breakdown of total expenditures and investments 
85.1 	made; and (3) a brief discussion regarding where the utility achieved the greatest savings 
85.2 	and, if areas exist where savings were less than anticipated under the plan, where the shortage 
85.3 	occurred and what the suspected reason for the shortage is. For consumer-owned utilities 
85.4 	that fall short of the total applicable savings goal, the final report or update on that plan 
85.5 	must indicate where the actual savings differed from anticipated savings, any known reasons 
85.6 	for the shortfall, and any identified changes that utility will make in future plans filed under 
85.7 	this subdivision to reach the identified savings goal. A consumer-owned utility must file a 
85.8 	new plan under this paragraph by June 1 of the year following the completion of the 
85.9 	consumer-owned utility's most recently completed plan.
85.10 	(b) Energy savings from electric utility infrastructure projects or waste heat recovery 
85.11 	converted into electricity projects that may count as energy savings may be included in a 
85.12 	plan submitted under paragraph (a). A consumer-owned electric facility's infrastructure 
85.13 	project must result in increased energy efficiency greater than would have occurred during 
85.14 	normal maintenance activities.
85.15 	(c) Energy savings from thermal-to-electric efficient electrification or conversion 
85.16 	improvement programs must be stated in kilowatt-hours, using a conversion rate of 3,412 
85.17 	British thermal units to one kilowatt-hour.
85.18 	(d) A consumer-owned utility must not spend or invest in energy conservation 
85.19 	improvements that directly benefit large energy facility or a large electric customer facility 
85.20 	the commissioner has issued an exemption to under subdivision 13.
85.21 	(e) A generation and transmission cooperative electric association, a municipal power 
85.22 	agency, or a comparable organization that provides energy services to consumer-owned 
85.23 	utilities may invest in energy conservation improvements on behalf of the consumer-owned 
85.24 	utilities it serves and may fulfill all aspects of the conservation, reporting, and energy-saving 
85.25 	goals for any of the consumer-owned utilities on an aggregate basis.
85.26 		Subd. 5.Low-income programs. (a) Each consumer-owned utility subject to this section 
85.27 	must provide low-income energy conservation programs. When approving spending and 
85.28 	energy-savings goals for low-income energy conservation programs, the consumer-owned 
85.29 	utility must consider historic spending and participation levels, energy savings for low-income 
85.30 	programs, and the number of low-income persons residing in the utility's service territory. 
85.31 	A municipal utility that furnishes gas service must spend at least 0.2 percent off its most 
85.32 	recent three-year average gross operating revenue from residential customers in Minnesota 
85.33 	on low-income programs. A consumer-owned utility that furnishes electric service must 
85.34 	spend at least 0.2 percent of its gross operating revenue from residential customers in 
86.1 	Minnesota on low-income programs. This requirement applies to each generation and 
86.2 	transmission cooperative association's members' aggregate gross operating revenue from 
86.3 	the sale of electricity to residential customers in Minnesota.
86.4 	(b) To meet the requirements of paragraph (a), a consumer-owned utility may contribute 
86.5 	money to the energy and conservation account in section 216B.241, subdivision 2a. An 
86.6 	energy conservation improvement plan must state the amount, if any, of low-income energy 
86.7 	conservation improvement funds the utility plans to contribute to the energy and conservation 
86.8 	account. Contributions must be remitted to the commissioner by February 1 each year.
86.9 	(c) The commissioner must establish low-income programs to use money contributed 
86.10 	to the energy and conservation account under paragraph (b). When establishing low-income 
86.11 	programs, the commissioner must consult political subdivisions, utilities, and nonprofit and 
86.12 	community organizations, including organizations engaged in providing energy and 
86.13 	weatherization assistance to low-income persons. Money contributed to the energy and 
86.14 	conservation account under paragraph (b) must provide programs for low-income persons, 
86.15 	including low-income renters, located in the service territory of the utility or association 
86.16 	providing the money. The commissioner must record and report expenditures and energy 
86.17 	savings achieved as a result of low-income programs funded through the energy and 
86.18 	conservation account in the report required under section 216B.241, subdivision 1c, paragraph 
86.19 	(g). The commissioner may contract with a political subdivision, nonprofit or community 
86.20 	organization, public utility, municipality, or cooperative electric association to implement 
86.21 	low-income programs funded through the energy and conservation account.
86.22 	(d) A consumer-owned utility may petition the commissioner to modify its required 
86.23 	spending under this subdivision if the utility and the commissioner were unable to expend 
86.24 	the amount required for three consecutive years.
86.25 	(e) For purposes of this subdivision, "multifamily building" is defined as a residential 
86.26 	building with five or more dwelling units. For purposes of determining eligibility for 
86.27 	multifamily buildings in low-income programs, a utility or association may use one or more 
86.28 	of the following:
86.29 	(1) information showing that a multifamily building's units are rented to households 
86.30 	meeting one or more of the following criteria:
86.31 	(i) at or below 200 percent of federal poverty level;
86.32 	(ii) at or below 60 percent of area median income;
87.1 	(iii) occupancy within a building that is certified on the low-income renter classification 
87.2 	(LIRC) assessor report compiled annually by the Minnesota Housing Finance Agency; or
87.3 	(iv) occupancy within a building which has a declaration against the property requiring 
87.4 	that a portion of the units will be rented to tenants with an annual income of less than or 
87.5 	equal to 60 percent of area median income;
87.6 	(2) a property's participation in an affordable housing program, including Low-Income 
87.7 	Housing Tax Credits (LIHTC), United States Department of Housing and Urban Development 
87.8 	(HUD) assistance, United States Department of Agriculture (USDA) assistance, state housing 
87.9 	finance agency assistance, or local tax abatement for low-income properties; or
87.10 	(3) documentation demonstrating that the property is on the waiting list for or currently 
87.11 	participating in the United States Department of Energy Weatherization Assistance Program.
87.12 		Subd. 6.Recovery of expenses. The commission must allow a cooperative electric 
87.13 	association subject to rate regulation under section 216B.026 to recover expenses resulting 
87.14 	from (1) a plan under this subdivision, and (2) assessments and contributions to the energy 
87.15 	and conservation account under section 216B.241, subdivision 2a.
87.16 		Subd. 7.Ownership of energy conservation improvement. An energy conservation 
87.17 	improvement to or installed in a building under this section, except systems owned by the 
87.18 	consumer-owned utility and designed to turn off, limit, or vary the delivery of energy, is 
87.19 	the exclusive property of the building owner, except to the extent that the improvement is 
87.20 	subject to a security interest in favor of the utility in case of a loan to the building owner. 
87.21 	The utility has no liability for loss, damage, or injury caused directly or indirectly by an 
87.22 	energy conservation improvement, except for negligence by the utility in purchase, 
87.23 	installation, or modification of the product.
87.24 		Subd. 8.Criteria for efficient electrification or conversion improvements and load 
87.25 	management. (a) Each consumer-owned utility subject to this section may form a technical 
87.26 	consumer-owned utility working group to define and establish proposed programs for 
87.27 	efficient electrification or conversion improvements and load management. A proposed 
87.28 	program may be included in an energy conservation and optimization plan filed by the 
87.29 	consumer-owned utility under subdivision 4. The technical consumer-owned utility working 
87.30 	group may approve a proposed program for efficient electrification or conversion 
87.31 	improvements if it finds the investment is cost-effective after considering the costs and 
87.32 	benefits of the proposed investment to rate payers, the utility, participants, and society.
87.33 	(b) The commission may permit a consumer-owned utility subject to rate regulation to 
87.34 	file rate schedules providing for annual recovery of the costs of (1) efficient electrification 
88.1 	or conversion improvement programs, and (2) cost-effective load management approved 
88.2 	by the technical consumer-owned utility working group under subdivision 6, including 
88.3 	reasonable and prudent costs associated with promoting and implementing a program 
88.4 	approved under this subdivision.
88.5 	(c) An efficient electrification or conversion improvement is deemed efficient if the 
88.6 	technical consumer-owned utility working group finds the improvement, relative to the fuel 
88.7 	that is being displaced:
88.8 	(1) results in a net reduction in the cost and amount of source energy consumed for a 
88.9 	particular use, measured on a fuel-neutral basis;
88.10 	(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section 
88.11 	216H.01, subdivision 2, over the lifetime of the improvement. For an efficient electrification 
88.12 	or conversion improvement installed by an electric utility, the reduction in emissions must 
88.13 	be measured based on the emissions profile of the utility or the utility's wholesale provider 
88.14 	over the life of the improvement. Where applicable, the emissions profile used must be the 
88.15 	most recent resource plan accepted by the commission under section 216B.2422;
88.16 	(3) is cost-effective from a societal perspective, considering the costs associated with 
88.17 	both the fuel used in the past and the fuel used in the future; and
88.18 	(4) is planned to be installed and operated in a manner that does not unduly increase the 
88.19 	utility's system peak demand or require significant new investment in utility infrastructure.
88.20 		Subd. 9.Criteria for CIP solar rebates. (a) Each consumer-owned utility subject to 
88.21 	this section may claim energy savings credit equal to the amount of energy produced by 
88.22 	solar photovoltaic facilities for which the utility has issued a CIP solar rebate. For purposes 
88.23 	of this section, a "CIP solar rebate" is a payment from a utility subject to this section to a 
88.24 	customer for the purchase or installation of solar photovoltaic equipment used on the 
88.25 	customer's premise.
88.26 	(b) The total solar photovoltaic generation system annual energy production kilowatt 
88.27 	hours alternating current is limited to 100 percent of the customer's on-site annual electric 
88.28 	energy consumption based on standard 15-minute intervals, measured during the previous 
88.29 	12 calendar months, or on a reasonable estimate of the average monthly maximum demand 
88.30 	or average annual consumption if the customer has either: (1) less than 12 calendar months 
88.31 	of actual electric usage; or (2) no demand metering available.
88.32 		Subd. 10.Manner of filing and service. (a) A consumer-owned utility must submit the 
88.33 	filings required by this section to the department using the department's electronic filing 
89.1 	system. The commissioner may exempt a consumer-owned utility from this requirement if 
89.2 	the utility is unable to submit filings using the department's electronic filing system. All 
89.3 	other interested parties must submit filings to the department using the department's electronic 
89.4 	filing system whenever practicable, but may also file by personal delivery or by mail.
89.5 	(b) The submission of a document to the department's electronic filing system constitutes 
89.6 	service on the department. If a department rule requires service of a notice, order, or other 
89.7 	document by the department, utility, or interested party upon persons on a service list 
89.8 	maintained by the department, service may be made by personal delivery, mail, or electronic 
89.9 	service, except that electronic service may only be made to persons on the service list that 
89.10 	have previously agreed in writing to accept electronic service at an electronic address 
89.11 	provided to the department for electronic service purposes.
89.12 		Subd. 11.Assessment. (a) The commission or department may assess utilities subject 
89.13 	to this section to carry out the purposes of section 216B.241, subdivision 1d. An assessment 
89.14 	under this paragraph must be proportionate to the utility's respective gross operating revenue 
89.15 	from sales of gas or electric service in Minnesota during the previous calendar year.
89.16 	(b) The commission or department may annually assess a utility subject to this section 
89.17 	to carry out the purposes of section 216B.241, subdivisions 1e and 1f, upon notice from the 
89.18 	utility of its desire to continue the assessment. An assessment under this paragraph must be 
89.19 	proportionate to the utility's respective gross revenue from sales of gas or electric service 
89.20 	in Minnesota during the previous calendar year. Assessments under this paragraph are not 
89.21 	subject to the cap on assessments provided by section 216B.62, or any other law.
89.22 		Subd. 12.Waste heat recovery; thermal energy distribution.  Subject to department 
89.23 	approval, demand-side natural gas or electric energy displaced by use of waste heat recovered 
89.24 	and used as thermal energy, including the recovered thermal energy from a cogeneration 
89.25 	or combined heat and power facility, is eligible to be counted toward a consumer-owned 
89.26 	utility's natural gas or electric savings goals.
89.27 		Subd. 13.Large customer facilities. (a) The owner of a large customer facility may 
89.28 	petition the commissioner to exempt municipal electric utilities, municipal gas utilities, and 
89.29 	cooperative electric associations serving the large customer facility from the investment 
89.30 	and expenditure requirements of the municipal electric utility, municipal gas utility, or 
89.31 	cooperative electric association's plan under this section with respect to retail revenues 
89.32 	attributable to the large customer facility. The filing must include a discussion of the 
89.33 	competitive or economic pressures facing the owner of the facility and the efforts taken to 
89.34 	identify, evaluate, and implement energy conservation and efficiency improvements. A 
90.1 	filing submitted on or before October 1 of any year must be approved within 90 days and 
90.2 	becomes effective January 1 of the year following the filing, unless the commissioner finds 
90.3 	the owner of the large customer facility has failed to take reasonable measures to identify, 
90.4 	evaluate, and implement energy conservation and efficiency improvements. If a facility 
90.5 	qualifies as a large customer facility solely due to its peak electrical demand or annual 
90.6 	natural gas usage, the exemption may be limited to the qualifying utility if the commissioner 
90.7 	finds that the owner of the large customer facility has failed to take reasonable measures to 
90.8 	identify, evaluate, and implement energy conservation and efficiency improvements with 
90.9 	respect to the nonqualifying utility. Once an exemption is approved, the commissioner may 
90.10 	request the owner of a large customer facility to submit a report demonstrating the large 
90.11 	customer facility's ongoing commitment to energy conservation and efficiency improvement 
90.12 	after the exemption filing. The commissioner may request a report under this paragraph not 
90.13 	more than once every five years for up to ten years after the effective date of the exemption. 
90.14 	If the majority ownership of the large customer facility changes, the commissioner may 
90.15 	request additional reports for up to ten years after the change in ownership occurs. The 
90.16 	commissioner may, within 180 days of receiving a report submitted under this paragraph, 
90.17 	rescind any exemption granted under this paragraph upon a determination that the large 
90.18 	customer facility is not continuing to make reasonable efforts to identify, evaluate, and 
90.19 	implement energy conservation improvements. A large customer facility that is exempt 
90.20 	from the investment and expenditure requirements of this section under an order from the 
90.21 	commissioner as of December 31, 2010, is not required to submit a report to retain its exempt 
90.22 	status, except as otherwise provided in this paragraph with respect to ownership changes. 
90.23 	An exempt large customer facility is prohibited from participating in a municipal electric, 
90.24 	municipal gas, or cooperative electric association utility's conservation improvement program 
90.25 	unless the owner of the facility files with the commissioner to withdraw its exemption.
90.26 	(b) A commercial gas customer that is not a large customer facility and that purchases 
90.27 	or acquires natural gas from a municipal gas utility may petition the commissioner to exempt 
90.28 	the commercial gas customer from the municipal gas customer from the municipal gas 
90.29 	utility's plan under this section with respect to gas sales attributable to the commercial gas 
90.30 	customer. The petition must be supported by evidence demonstrating that the commercial 
90.31 	gas customer has acquired or can reasonably acquire the capability to bypass use of the 
90.32 	municipal utility's gas distribution system by obtaining natural gas directly from a supplier 
90.33 	other than the municipal gas utility. The commissioner must grant the exemption if the 
90.34 	commissioner finds the petitioner has made the demonstration required by this paragraph.
91.1 	(c) A municipal electric utility, municipal gas utility, cooperative electric association, 
91.2 	or the owner of a large customer facility may appeal the commissioner's decision under 
91.3 	paragraph (a) or (b) to the commissioner under subdivision 2. When reviewing a decision 
91.4 	of the commissioner under paragraph (a) or (b), the commission must rescind the decision 
91.5 	if it finds the decision is not in the public's interest.
91.6 	(d) A municipal electric utility, municipal gas utility, or cooperative electric association 
91.7 	is prohibited from spending for or investing in energy conservation improvements that 
91.8 	directly benefit a large facility or a large electric customer facility that the commissioner 
91.9 	has issued an exemption for under this section.

91.10 	Sec. 2. Minnesota Statutes 2018, section 216B.241, subdivision 1c, is amended to read:
91.11 		Subd. 1c.Public utility; energy-saving goals. (a) The commissioner shall establish 
91.12 	energy-saving goals for energy conservation improvement expenditures and shall evaluate 
91.13 	an energy conservation improvement program on how well it meets the goals set.
91.14 	(b) Each individual public utility and association shall have an annual energy-savings 
91.15 	goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the 
91.16 	commissioner under paragraph (d). The savings goals must be calculated based on the most 
91.17 	recent three-year weather-normalized average. A public utility or association may elect to 
91.18 	carry forward energy savings in excess of 1.5 percent for a year to the succeeding three 
91.19 	calendar years, except that savings from electric utility infrastructure projects allowed under 
91.20 	paragraph (d) (c) may be carried forward for five years. A particular energy savings can be 
91.21 	used only for one year's goal.
91.22 	(c) The commissioner must adopt a filing schedule that is designed to have all utilities 
91.23 	and associations operating under an energy-savings plan by calendar year 2010.
91.24 	(d) (c) In its energy conservation improvement plan filing, a public utility or association
91.25 	may request the commissioner to adjust its annual energy-savings percentage goal based 
91.26 	on its historical conservation investment experience, customer class makeup, load growth, 
91.27 	a conservation potential study, or other factors the commissioner determines warrants an 
91.28 	adjustment. The commissioner may not approve a plan of a public utility that provides for 
91.29 	an annual energy-savings goal of less than one percent of gross annual retail energy sales 
91.30 	from energy conservation improvements.
91.31 	A public utility or association may include in its energy conservation plan energy savings 
91.32 	from electric utility infrastructure projects approved by the commission under section 
91.33 	216B.1636 or waste heat recovery converted into electricity projects that may count as 
92.1 	energy savings in addition to a minimum energy-savings goal of at least one percent for 
92.2 	energy conservation improvements. Energy savings from electric utility infrastructure 
92.3 	projects, as defined in section 216B.1636, may be included in the energy conservation plan 
92.4 	of a municipal utility or cooperative electric association. Electric utility infrastructure projects 
92.5 	must result in increased energy efficiency greater than that which would have occurred 
92.6 	through normal maintenance activity.
92.7 	(e) An (d) A public utility's energy-savings goal is not satisfied by attaining the revenue 
92.8 	expenditure requirements of subdivisions 1a and 1b, but can only be satisfied by meeting 
92.9 	the energy-savings goal established in this subdivision.
92.10 	(f) An association or (e) A public utility is not required to make energy conservation 
92.11 	investments to attain the energy-savings goals of this subdivision that are not cost-effective 
92.12 	even if the investment is necessary to attain the energy-savings goals. For the purpose of 
92.13 	this paragraph, in determining cost-effectiveness, the commissioner shall consider the costs 
92.14 	and benefits to ratepayers, the utility, participants, and society. In addition, the commissioner 
92.15 	shall consider the rate at which an association or municipal utility is increasing its energy 
92.16 	savings and its expenditures on energy conservation.
92.17 	(g)(f) On an annual basis, the commissioner shall produce and make publicly available 
92.18 	a report on the annual energy savings and estimated carbon dioxide reductions achieved by 
92.19 	the energy conservation improvement programs for the two most recent years for which 
92.20 	data is available. The commissioner shall report on program performance both in the 
92.21 	aggregate and for each entity filing an energy conservation improvement plan for approval 
92.22 	or review by the commissioner.
92.23 	(h) By January 15, 2010, the commissioner shall report to the legislature whether the 
92.24 	spending requirements under subdivisions 1a and 1b are necessary to achieve the 
92.25 	energy-savings goals established in this subdivision.
92.26 	(i) This subdivision does not apply to:
92.27 	(1) a cooperative electric association with fewer than 5,000 members;
92.28 	(2) a municipal utility with fewer than 1,000 retail electric customers; or
92.29 	(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales 
92.30 	to retail natural gas customers.

93.1 	Sec. 3. Minnesota Statutes 2018, section 216B.241, subdivision 1d, is amended to read:
93.2 		Subd. 1d.Technical assistance. (a) The commissioner shall evaluate energy conservation 
93.3 	improvement programs under this section and section 216B.2402 on the basis of 
93.4 	cost-effectiveness and the reliability of the technologies employed. The commissioner shall, 
93.5 	by order, establish, maintain, and update energy-savings assumptions that must be used 
93.6 	when filing energy conservation improvement programs. The commissioner shall establish 
93.7 	an inventory of the most effective energy conservation programs, techniques, and 
93.8 	technologies, and encourage all Minnesota utilities to implement them, where appropriate, 
93.9 	in their service territories. The commissioner shall describe these programs in sufficient 
93.10 	detail to provide a utility reasonable guidance concerning implementation. The commissioner 
93.11 	shall prioritize the opportunities in order of potential energy savings and in order of 
93.12 	cost-effectiveness. The commissioner may contract with a third party to carry out any of 
93.13 	the commissioner's duties under this subdivision, and to obtain technical assistance to 
93.14 	evaluate the effectiveness of any conservation improvement program. The commissioner 
93.15 	may assess up to $850,000 $450,000 annually for the purposes of this subdivision. The 
93.16 	assessments must be deposited in the state treasury and credited to the energy and 
93.17 	conservation account created under subdivision 2a. An assessment made under this 
93.18 	subdivision is not subject to the cap on assessments provided by section 216B.62, or any 
93.19 	other law.
93.20 	(b) Of the assessment authorized under paragraph (a), the commissioner may expend 
93.21 	up to $400,000 annually for the purpose of developing, operating, maintaining, and providing 
93.22 	technical support for a uniform electronic data reporting and tracking system available to 
93.23 	all utilities subject to this section, in order to enable accurate measurement of the cost and 
93.24 	energy savings of the energy conservation improvements required by this section. This 
93.25 	paragraph expires June 30, 2018.

93.26 	Sec. 4. Minnesota Statutes 2018, section 216B.241, subdivision 2, is amended to read:
93.27 		Subd. 2.Programs. (a) The commissioner may require public utilities to make 
93.28 	investments and expenditures in energy conservation improvements, explicitly setting forth 
93.29 	the interest rates, prices, and terms under which the improvements must be offered to the 
93.30 	customers. The required programs must cover no more than a three-year period. Public 
93.31 	utilities shall file conservation improvement plans by June 1, on a schedule determined by 
93.32 	order of the commissioner, but at least every three years. Plans received by a public utility 
93.33 	by June 1 must be approved or approved as modified by the commissioner by December 1 
93.34 	of that same year. The commissioner shall evaluate the program on the basis of 
94.1 	cost-effectiveness and the reliability of technologies employed. The commissioner's order 
94.2 	must provide to the extent practicable for a free choice, by consumers participating in the 
94.3 	program, of the device, method, material, or project constituting the energy conservation 
94.4 	improvement and for a free choice of the seller, installer, or contractor of the energy 
94.5 	conservation improvement, provided that the device, method, material, or project seller, 
94.6 	installer, or contractor is duly licensed, certified, approved, or qualified, including under 
94.7 	the residential conservation services program, where applicable.
94.8 	(b) The commissioner may require a utility subject to subdivision 1c to make an energy 
94.9 	conservation improvement investment or expenditure whenever the commissioner finds 
94.10 	that the improvement will result in energy savings at a total cost to the utility less than the 
94.11 	cost to the utility to produce or purchase an equivalent amount of new supply of energy. 
94.12 	The commissioner shall nevertheless ensure that every public utility operate one or more 
94.13 	programs under periodic review by the department.
94.14 	(c) Each public utility subject to subdivision 1a may spend and invest annually up to ten 
94.15 	percent of the total amount required to be spent and invested on energy conservation 
94.16 	improvements under this section by the utility on research and development projects that 
94.17 	meet the definition of energy conservation improvement in subdivision 1 and that are funded 
94.18 	directly by the public utility.
94.19 	(d) A public utility may not spend for or invest in energy conservation improvements 
94.20 	that directly benefit a large energy facility or a large electric customer facility for which the 
94.21 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The 
94.22 	commissioner shall consider and may require a public utility to undertake a program 
94.23 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
94.24 	or community organization.
94.25 	(e) A utility, a political subdivision, or a nonprofit or community organization that has 
94.26 	suggested a program, the attorney general acting on behalf of consumers and small business 
94.27 	interests, or a utility customer that has suggested a program and is not represented by the 
94.28 	attorney general under section 8.33 may petition the commission to modify or revoke a 
94.29 	department decision under this section, and the commission may do so if it determines that 
94.30 	the program is not cost-effective, does not adequately address the residential conservation 
94.31 	improvement needs of low-income persons, has a long-range negative effect on one or more 
94.32 	classes of customers, or is otherwise not in the public interest. The commission shall reject 
94.33 	a petition that, on its face, fails to make a reasonable argument that a program is not in the 
94.34 	public interest.
95.1 	(f) The commissioner may order a public utility to include, with the filing of the utility's 
95.2 	annual status report, the results of an independent audit of the utility's conservation 
95.3 	improvement programs and expenditures performed by the department or an auditor with 
95.4 	experience in the provision of energy conservation and energy efficiency services approved 
95.5 	by the commissioner and chosen by the utility. The audit must specify the energy savings 
95.6 	or increased efficiency in the use of energy within the service territory of the utility that is 
95.7 	the result of the spending and investments. The audit must evaluate the cost-effectiveness 
95.8 	of the utility's conservation programs.
95.9 	(g) A gas utility may not spend for or invest in energy conservation improvements that 
95.10 	directly benefit a large customer facility or commercial gas customer facility for which the 
95.11 	commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or 
95.12 	(e). The commissioner shall consider and may require a utility to undertake a program 
95.13 	suggested by an outside source, including a political subdivision, a nonprofit corporation, 
95.14 	or a community organization.

95.15 	Sec. 5. Minnesota Statutes 2018, section 216B.241, subdivision 2b, is amended to read:
95.16 		Subd. 2b.Recovery of expenses. The commission shall allow a public utility to recover 
95.17 	expenses resulting from a conservation improvement program required by the department 
95.18 	and contributions and assessments to the energy and conservation account, unless the 
95.19 	recovery would be inconsistent with a financial incentive proposal approved by the 
95.20 	commission. The commission shall allow a cooperative electric association subject to rate 
95.21 	regulation under section 216B.026, to recover expenses resulting from energy conservation 
95.22 	improvement programs, load management programs, and assessments and contributions to 
95.23 	the energy and conservation account unless the recovery would be inconsistent with a 
95.24 	financial incentive proposal approved by the commission. In addition, a public utility may 
95.25 	file annually, or the Public Utilities Commission may require the utility to file, and the 
95.26 	commission may approve, rate schedules containing provisions for the automatic adjustment 
95.27 	of charges for utility service in direct relation to changes in the expenses of the utility for 
95.28 	real and personal property taxes, fees, and permits, the amounts of which the utility cannot 
95.29 	control. A public utility is eligible to file for adjustment for real and personal property taxes, 
95.30 	fees, and permits under this subdivision only if, in the year previous to the year in which it 
95.31 	files for adjustment, it has spent or invested at least 1.75 percent of its gross revenues from 
95.32 	provision of electric service, excluding gross operating revenues from electric service 
95.33 	provided in the state to large electric customer facilities for which the commissioner has 
95.34 	issued an exemption under subdivision 1a, paragraph (b), and 0.6 percent of its gross revenues 
95.35 	from provision of gas service, excluding gross operating revenues from gas services provided 
96.1 	in the state to large electric customer facilities for which the commissioner has issued an 
96.2 	exemption under subdivision 1a, paragraph (b), for that year for energy conservation 
96.3 	improvements under this section.

96.4 	Sec. 6. Minnesota Statutes 2018, section 216B.241, subdivision 3, is amended to read:
96.5 		Subd. 3.Ownership of energy conservation improvement. AnA preweatherization 
96.6 	measure or energy conservation improvement made to or installed in a building in accordance 
96.7 	with this section, except systems owned by the utility and designed to turn off, limit, or vary 
96.8 	the delivery of energy, are the exclusive property of the owner of the building except to the 
96.9 	extent that the improvement is subjected to a security interest in favor of the utility in case 
96.10 	of a loan to the building owner. The utility has no liability for loss, damage or injury caused 
96.11 	directly or indirectly by ana preweatherization measure or energy conservation improvement 
96.12 	except for negligence by the utility in purchase, installation, or modification of the product.

96.13 	Sec. 7. Minnesota Statutes 2018, section 216B.241, subdivision 7, is amended to read:
96.14 		Subd. 7.Low-income programs. (a) The commissioner shall ensure that each public 
96.15 	utility and association subject to subdivision 1c provides low-income programs. When 
96.16 	approving spending and energy-savings goals for low-income programs, the commissioner 
96.17 	shall consider historic spending and participation levels, energy savings for low-income 
96.18 	programs, and the number of low-income persons residing in the utility's service territory. 
96.19 	A municipal utility that furnishes gas service must spend at least 0.2 percent, and a public 
96.20 	utility furnishing gas service must spend at least 0.40.8 percent, of its most recent three-year 
96.21 	average gross operating revenue from residential customers in the state on low-income 
96.22 	programs. A public utility or association that furnishes electric service must spend at least 
96.23 	0.10.4 percent of its gross operating revenue from residential customers in the state on 
96.24 	low-income programs. For a generation and transmission cooperative association, this 
96.25 	requirement shall apply to each association's members' aggregate gross operating revenue 
96.26 	from sale of electricity to residential customers in the state. Beginning in 2010, A utility or 
96.27 	association that furnishes electric service must spend 0.2 percent of its gross operating 
96.28 	revenue from residential customers in the state on low-income programs.
96.29 	(b) To meet the requirements of paragraph (a), a public utility or association may 
96.30 	contribute money to the energy and conservation account. An energy conservation 
96.31 	improvement plan must state the amount, if any, of low-income energy conservation 
96.32 	improvement funds the public utility or association will contribute to the energy and 
97.1 	conservation account. Contributions must be remitted to the commissioner by February 1 
97.2 	of each year.
97.3 	(c) The commissioner shall establish low-income programs to utilize money contributed 
97.4 	to the energy and conservation account under paragraph (b). In establishing low-income 
97.5 	programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and 
97.6 	community organizations, especially organizations engaged in providing energy and 
97.7 	weatherization assistance to low-income persons. Money contributed to the energy and 
97.8 	conservation account under paragraph (b) must provide programs for low-income persons, 
97.9 	including low-income renters, in the service territory of the public utility or association
97.10 	providing the money. The commissioner shall record and report expenditures and energy 
97.11 	savings achieved as a result of low-income programs funded through the energy and 
97.12 	conservation account in the report required under subdivision 1c, paragraph (g). The 
97.13 	commissioner may contract with a political subdivision, nonprofit or community organization, 
97.14 	public utility, municipality, or cooperative electric association to implement low-income 
97.15 	programs funded through the energy and conservation account.
97.16 	(d) A public utility or association may petition the commissioner to modify its required 
97.17 	spending under paragraph (a) if the utility or association and the commissioner have been 
97.18 	unable to expend the amount required under paragraph (a) for three consecutive years.
97.19 	(e) For purposes of this subdivision, "multifamily building" is defined as a residential 
97.20 	building with five or more dwelling units. For purposes of determining eligibility for 
97.21 	multifamily buildings in low-income programs, a utility or association may use one or more 
97.22 	of the following:
97.23 	(1) information showing that a multifamily building's units are rented to households 
97.24 	meeting one of the following criteria:
97.25 	(i) are at or below 200 percent of federal poverty level;
97.26 	(ii) are at or below 60 percent of area median income;
97.27 	(iii) have occupancy within a building that is certified on the low-income renter 
97.28 	classification (LIRC) assessor report compiled annually by Minnesota Housing Finance 
97.29 	Agency; or
97.30 	(iv) have occupancy within a building which has a declaration against the property 
97.31 	requiring that a portion of the units will be rented to tenants with an annual income of less 
97.32 	than or equal to 60 percent of area median income;
98.1 	(2) a property's participation in an affordable housing program, including Low-Income 
98.2 	Housing Tax Credits (LIHTC), United States Department of Housing and Urban Development 
98.3 	(HUD) assistance, United States Department of Agriculture (USDA) assistance, state housing 
98.4 	finance agency assistance, or local tax abatement for low-income properties; or
98.5 	(3) documentation demonstrating that the property is on the waiting list for or currently 
98.6 	participating in the United States Department of Energy Weatherization Assistance Program.
98.7 	(f) Up to 15 percent of a public utility's spending on low-income programs may be used 
98.8 	for preweatherization measures. For purposes of this section, "preweatherization measures" 
98.9 	are improvements necessary to allow energy conservation improvements to be installed in 
98.10 	a home:
98.11 	(1) the commissioner shall, by order, establish a list of qualifying preweatherization 
98.12 	measures eligible for inclusion in low-income programs no later than March 15, 2020; and
98.13 	(2) a public utility may elect to contribute money to the Healthy AIR program. Money 
98.14 	contributed to the fund will count toward the minimum low-income spending requirement 
98.15 	in paragraph (a) and toward the cap on preweatherization measures.
98.16 	(e) (g) The costs and benefits associated with any approved low-income gas or electric 
98.17 	conservation improvement program that is not cost-effective when considering the costs 
98.18 	and benefits to the utility may, at the discretion of the utility, be excluded from the calculation 
98.19 	of net economic benefits for purposes of calculating the financial incentive to the utility. 
98.20 	The energy and demand savings may, at the discretion of the utility, be applied toward the 
98.21 	calculation of overall portfolio energy and demand savings for purposes of determining 
98.22 	progress toward annual goals and in the financial incentive mechanism.

98.23 	Sec. 8. REPEALER.
 98.24 	Minnesota Statutes 2018, section 216B.241, subdivision 1b, is repealed.

98.25 	ARTICLE 10
98.26 	RENEWABLE DEVELOPMENT

98.27 	Section 1. Minnesota Statutes 2018, section 116C.779, subdivision 1, is amended to read:
98.28 		Subdivision 1.Renewable development account. (a) The renewable development 
98.29 	account is established as a separate account in the special revenue fund in the state treasury. 
98.30 	Appropriations and transfers to the account shall be credited to the account. Earnings, such 
98.31 	as interest, dividends, and any other earnings arising from assets of the account, shall be 
98.32 	credited to the account. Funds remaining in the account at the end of a fiscal year are not 
99.1 	canceled to the general fund but remain in the account until expended. The account shall 
99.2 	be administered by the commissioner of management and budget as provided under this 
99.3 	section.
99.4 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
99.5 	plant must transfer all funds in the renewable development account previously established 
99.6 	under this subdivision and managed by the public utility to the renewable development 
99.7 	account established in paragraph (a). Funds awarded to grantees in previous grant cycles 
99.8 	that have not yet been expended and unencumbered funds required to be paid in calendar 
99.9 	year 2017 under paragraphs (e) and (f) and (g), and sections 116C.7792 and 216C.41, are 
99.10 	not subject to transfer under this paragraph.
99.11 	(c) Except as provided in subdivision 1a, Beginning January 15, 2018 2020, and 
99.12 	continuing each January 15 thereafter, the public utility that owns the Prairie Island and 
99.13 	Monticello nuclear generating plant plants must transfer to the renewable development 
99.14 	account $500,000 each year for each dry cask containing spent fuel that is located at the 
99.15 	Prairie Island power plant for the following amounts each year the either plant is in operation, 
99.16 	and $7,500,000 each year the plant is not in operation: (1) $33,000,000 in 2020; (2) 
99.17 	$31,000,000 in 2021; and (3) $20,000,000 in 2022 and each year thereafter. If ordered by 
99.18 	the commission pursuant to paragraph (i).(h), the public utility must transfer $7,500,000 
99.19 	each year the Prairie Island plant is not in operation and $5,250,000 each year the Monticello 
99.20 	plant is not in operation. The fund transfer must be made if nuclear waste is stored in a dry 
99.21 	cask at the independent spent-fuel storage facility at Prairie Island or Monticello for any 
99.22 	part of a year.
99.23 	(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
99.24 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
99.25 	plant must transfer to the renewable development account $350,000 each year for each dry 
99.26 	cask containing spent fuel that is located at the Monticello nuclear power plant for each 
99.27 	year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered 
99.28 	by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear 
99.29 	waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
99.30 	any part of a year.
99.31 	(e) (d) Each year, the public utility shall withhold from the funds transferred to the 
99.32 	renewable development account under paragraphs paragraph (c) and (d) the amount necessary 
99.33 	to pay its obligations for that calendar year under paragraphs (e), (f) and (g), (j), and (n),
99.34 	and sections 116C.7792 and 216C.41, for that calendar year.
100.1 	(f) (e) If the commission approves a new or amended power purchase agreement, the 
100.2 	termination of a power purchase agreement, or the purchase and closure of a facility under 
100.3 	section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, 
100.4 	the public utility subject to this section shall enter into a contract with the city in which the 
100.5 	poultry litter plant is located to provide grants to the city for the purposes of economic 
100.6 	development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each 
100.7 	fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid 
100.8 	by the public utility from funds withheld from the transfer to the renewable development 
100.9 	account, as provided in paragraphs (b) and (e) (d).
100.10 	(g)(f) If the commission approves a new or amended power purchase agreement, or the 
100.11 	termination of a power purchase agreement under section 216B.2424, subdivision 9, with 
100.12 	an entity owned or controlled, directly or indirectly, by two municipal utilities located north 
100.13 	of Constitutional Route No. 8, that was previously used to meet the biomass mandate in 
100.14 	section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a 
100.15 	grant contract with such entity to provide $6,800,000 per year for five years, commencing 
100.16 	30 days after the commission approves the new or amended power purchase agreement, or 
100.17 	the termination of the power purchase agreement, and on each June 1 thereafter through 
100.18 	2021, to assist the transition required by the new, amended, or terminated power purchase 
100.19 	agreement. The grant shall be paid by the public utility from funds withheld from the transfer 
100.20 	to the renewable development account as provided in paragraphs (b) and (e) (d).
100.21 	(h)(g) The collective amount paid under the grant contracts awarded under paragraphs 
100.22 	(e) and (f) and (g) is limited to the amount deposited into the renewable development account, 
100.23 	and its predecessor, the renewable development account, established under this section, that 
100.24 	was not required to be deposited into the account under Laws 1994, chapter 641, article 1, 
100.25 	section 10.
100.26 	(i) (h) After discontinuation of operation of the Prairie Island nuclear plant or the 
100.27 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
100.28 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
100.29 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
100.30 	facility for any year in which the commission finds, by the preponderance of the evidence, 
100.31 	that the public utility did not make a good faith effort to remove the spent nuclear fuel stored 
100.32 	at the facility to a permanent or interim storage site out of the state. This determination shall 
100.33 	be made at least every two years.
100.34 	(i) The public utility must annually file with the commission a petition to recover through 
100.35 	a rider mechanism all funds it is required to transfer or withhold under paragraphs (c) to (f) 
101.1 	for the next year. The commission must approve a reasonable cost recovery schedule for 
101.2 	all funds under this paragraph.
101.3 	(j) On or before January 15 of each year, the public utility must file a petition with the 
101.4 	commission identifying the amounts withheld by the public utility the prior year under 
101.5 	paragraph (d) and the amount actually paid the prior year for obligations identified in 
101.6 	paragraph (d). If the amount actually paid is less than the amount withheld, the public utility 
101.7 	must deduct the surplus from the amount withheld for the current year under paragraph (d). 
101.8 	If the amount actually paid is more than the amount withheld, the public utility must add 
101.9 	the deficiency amount to the amount withheld for the current year under paragraph (d). Any 
101.10 	surplus remaining in the account after all programs identified in paragraph (d) are terminated 
101.11 	must be returned to the public utility's customers.
101.12 	(j) (k) Funds in the account may be expended only for any of the following purposes:
101.13 	(1) to stimulate research and development of renewable electric energy technologies;
101.14 	(2) to encourage grid modernization, including, but not limited to, projects that implement 
101.15 	electricity storage, load control, and smart meter technology; and
101.16 	(3) to stimulate other innovative energy projects that reduce demand and increase system 
101.17 	efficiency and flexibility.
101.18 	Expenditures from the fund must benefit Minnesota ratepayers receiving electric service 
101.19 	from the utility that owns a nuclear-powered electric generating plant in this state or the 
101.20 	Prairie Island Indian community or its members.
101.21 	The utility that owns a nuclear generating plant is eligible to apply for grants under this 
101.22 	subdivision.
101.23 	(k) (l) For the purposes of paragraph (j) (k), the following terms have the meanings 
101.24 	given:
101.25 	(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph 
101.26 	(c), clauses (1), (2), (4), and (5); and
101.27 	(2) "grid modernization" means:
101.28 	(i) enhancing the reliability of the electrical grid;
101.29 	(ii) improving the security of the electrical grid against cyberthreats and physical threats; 
101.30 	and
101.31 	(iii) increasing energy conservation opportunities by facilitating communication between 
101.32 	the utility and its customers through the use of two-way meters, control technologies, energy 
102.1 	storage and microgrids, technologies to enable demand response, and other innovative 
102.2 	technologies.
102.3 	(l) (m) A renewable development account advisory group that includes, among others, 
102.4 	representatives of the public utility and its ratepayers, and includes at least one representative 
102.5 	of the Prairie Island Indian community appointed by that community's tribal council, shall 
102.6 	develop recommendations on account expenditures. Members of the advisory group, other 
102.7 	than members appointed by the tribal council, must be chosen by the public utility. The 
102.8 	advisory group must design a request for proposal and evaluate projects submitted in response 
102.9 	to a request for proposals. The advisory group must utilize an independent third-party expert 
102.10 	to evaluate proposals submitted in response to a request for proposal, including all proposals 
102.11 	made by the public utility. A request for proposal for research and development under 
102.12 	paragraph (j) (k), clause (1), may be limited to or include a request to higher education 
102.13 	institutions located in Minnesota for multiple projects authorized under paragraph (j) (k), 
102.14 	clause (1). The request for multiple projects may include a provision that exempts the 
102.15 	projects from the third-party expert review and instead provides for project evaluation and 
102.16 	selection by a merit peer review grant system. In the process of determining request for 
102.17 	proposal scope and subject and in evaluating responses to request for proposals, the advisory 
102.18 	group must strongly consider, where reasonable, potential benefit to Minnesota citizens and 
102.19 	businesses and the utility's ratepayers.
102.20 	(n) The cost to acquire the services of the independent third-party expert described in 
102.21 	paragraph (m), and any other reasonable costs incurred to administer the advisory group 
102.22 	and its actions required by this section, must be paid from funds withheld by the public 
102.23 	utility under paragraph (d). The total amount withheld under this paragraph must not exceed 
102.24 	$125,000 each year.
102.25 	(m)(o) The advisory group shall submit funding recommendations to the public utility, 
102.26 	which has full and sole authority to determine which expenditures shall be submitted by 
102.27 	the advisory group to the legislature commission. The commission may approve proposed 
102.28 	expenditures, may disapprove proposed expenditures that it finds not to be in compliance 
102.29 	with this subdivision or otherwise not in the public interest, and may, if agreed to by the 
102.30 	public utility, modify proposed expenditures. The commission shall, by order, submit its 
102.31 	funding recommendations to the legislature as provided under paragraph (n) (p).
102.32 	(n) (p) The commission shall present its recommended appropriations from the account 
102.33 	to the senate and house of representatives committees with jurisdiction over energy policy 
102.34 	and finance annually by February 15. Expenditures from the account must be appropriated 
102.35 	by law. In enacting appropriations from the account, the legislature:
103.1 	(1) may approve or disapprove, but may not modify, the amount of an appropriation for 
103.2 	a project recommended by the commission; and
103.3 	(2) may not appropriate money for a project the commission has not recommended 
103.4 	funding.
103.5 	(o) (q) A request for proposal for renewable energy generation projects must, when 
103.6 	feasible and reasonable, give preference to projects that are most cost-effective for a particular 
103.7 	energy source.
103.8 	(p) (r) The advisory group must annually, by February 15, report to the chairs and ranking 
103.9 	minority members of the legislative committees with jurisdiction over energy policy on 
103.10 	projects funded by the account under paragraph (k) for the prior year and all previous years. 
103.11 	The report must, to the extent possible and reasonable, itemize the actual and projected 
103.12 	financial benefit to the public utility's ratepayers of each project.
103.13 	(s) By June 1, 2019, and each June 1 thereafter, the public utility that owns the Prairie 
103.14 	Island nuclear electric generating plant must submit to the commissioner of management 
103.15 	and budget an estimate of the amount the public utility will deposit into the account January 
103.16 	15 the next year, based on the provisions of paragraphs (c) to (h) and any appropriations 
103.17 	made from the fund during the most recent legislative session.
103.18 	(q) (t) By February 1 , 2018 June 30, 2019, and each February 1June 30 thereafter, the 
103.19 	commissioner of management and budget shall must estimate the balance in the account as 
103.20 	of the following January 31, taking into account the balance in the account as of June 30 
103.21 	and the information provided under paragraph (r). By July 15, 2019, and each July 15 
103.22 	thereafter, the commissioner of management and budget must submit a written report 
103.23 	regarding the availability of funds in and obligations of the account to the chairs and ranking 
103.24 	minority members of the senate and house committees with jurisdiction over energy policy 
103.25 	and finance, the public utility, and the advisory group. If more than $15,000,000 is estimated 
103.26 	to be available in the account as of January 31, the advisory group must, by January 31 the 
103.27 	next year, issue a request for proposals to initiate a grant cycle for the purposes of paragraph 
103.28 	(k).
103.29 	(r) (u) A project receiving funds from the account must produce a written final report 
103.30 	that includes sufficient detail for technical readers and a clearly written summary for 
103.31 	nontechnical readers. The report must include an evaluation of the project's financial, 
103.32 	environmental, and other benefits to the state and the public utility's ratepayers.
104.1 	(s) (v) Final reports, any mid-project status reports, and renewable development account 
104.2 	financial reports must be posted online on a public website designated by the commissioner 
104.3 	of commerce.
104.4 	(t) (w) All final reports must acknowledge that the project was made possible in whole 
104.5 	or part by the Minnesota renewable development account, noting that the account is financed 
104.6 	by the public utility's ratepayers.
104.7 	(u) (x) Of the amount in the renewable development account, priority must be given to 
104.8 	making the payments required under section 216C.417.

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

104.10 	Sec. 2. [116J.55] COMMUNITY ENERGY TRANSITION GRANTS.
104.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
104.12 	subdivision have the meanings given.
104.13 	(b) "Advisory council" means the Community Energy Transition Grant Advisory Council 
104.14 	created in this section.
104.15 	(c) "Commissioner" means the commissioner of employment and economic development.
104.16 	(d) "Eligible community" means a county, municipality, or tribal government located 
104.17 	within a county that hosts an investor-owned electric generating plant powered by coal, 
104.18 	nuclear energy, or natural gas.
104.19 		Subd. 2.Establishment. The commissioner shall establish a community energy transition 
104.20 	grant program to award grants to promote economic development in eligible communities.
104.21 		Subd. 3.Funding. (a) A community energy transition account is created in the special 
104.22 	revenue fund in the state treasury. Money in the account is appropriated to the commissioner 
104.23 	for grants as provided in this section and must be expended only as provided in this section.
104.24 	(b) On July 1, 2020, $500,000 and then on July 1, 2021, and on each July 1 thereafter, 
104.25 	$1,000,000 is transferred from the renewable development account under section 116C.779 
104.26 	to the commissioner for deposit in the community energy transition account. This transfer 
104.27 	must be made before any other payments or transfers required under section 116C.779.
104.28 	(c) Grants to eligible communities in which an investor-owned electric generating plant 
104.29 	is located but has not been scheduled for retirement or decommissioning may not exceed 
104.30 	$1,000,000. Grants to eligible communities in which an investor-owned electric generating 
104.31 	plant is located and is scheduled for retirement or decommissioning may not exceed 
104.32 	$5,000,000.
105.1 	(d) Unless amounts are otherwise appropriated for administrative costs, the commissioner 
105.2 	of employment and economic development may retain up to five percent of the amount 
105.3 	appropriated for grants under this section for administrative and personnel costs.
105.4 		Subd. 4.Cancellation of grant; return of grant money. If after five years, the 
105.5 	commissioner determines that a project has not proceeded in a timely manner and is unlikely 
105.6 	to be completed, the commissioner must cancel the grant and require the grantee to return 
105.7 	all grant money awarded for that project. Grant money returned to the commissioner is 
105.8 	appropriated to the commissioner to make additional grants under this section.
105.9 		Subd. 5.Grants to eligible communities. (a) The commissioner must award grants to 
105.10 	eligible communities through a competitive grant process. Eligible communities must be 
105.11 	located in the service territory of the public utility subject to section 116C.779.
105.12 	(b) To receive grant funds, an eligible community must submit a written application to 
105.13 	the commissioner, using a form developed by the commissioner.
105.14 	(c) The commissioner must consider the recommendations of the Community Energy 
105.15 	Transition Grant Advisory Council before selecting grant recipients.
105.16 	(d) Grants must be used to plan for or address the economic and social impact on the 
105.17 	community of plant retirement or transition. Specific uses may include but are not limited 
105.18 	to:
105.19 	(1) research;
105.20 	(2) planning;
105.21 	(3) studies;
105.22 	(4) capital improvements; and
105.23 	(5) incentives for businesses to open, relocate, or expand.
105.24 		Subd. 6.Priorities. (a) In evaluating projects, the advisory council shall give priority 
105.25 	to eligible projects with one or more of the following characteristics:
105.26 	(1) the potential of the eligible community to attract a viable business;
105.27 	(2) the potential increase in the property tax base of the eligible community, considered 
105.28 	relative to the fiscal impact of the retirement of the electric generating plant located in the 
105.29 	eligible community;
105.30 	(3) the extent to which the grant will assist the eligible community in addressing the 
105.31 	fiscal and social impacts of plant retirement; and
106.1 	(4) the extent to which the grant will help the state transition away from fossil fuels.
106.2 	(b) The factors listed in paragraph (a) are not ranked in order of priority. The 
106.3 	commissioner may weigh each factor, depending upon the facts and circumstances, as 
106.4 	appropriate. The commissioner may consider other factors that support the goals of this 
106.5 	program.
106.6 		Subd. 7.Advisory council. (a) By September 1, 2019, the commissioner shall appoint 
106.7 	representatives to a Community Energy Transition Grant Advisory Council composed of 
106.8 	the following members:
106.9 	(1) the commissioner of employment and economic development, or a designee;
106.10 	(2) the commissioner of transportation, or a designee;
106.11 	(3) the commissioner of the Minnesota Pollution Control Agency, or a designee;
106.12 	(4) the commissioner of natural resources, or a designee;
106.13 	(5) the commissioner of commerce, or a designee;
106.14 	(6) one representative of the Prairie Island Indian community;
106.15 	(7) two representatives of workers at investor-owned electric generating plants powered 
106.16 	by coal, nuclear energy, or natural gas; and
106.17 	(8) four representatives of eligible communities, of which, two must be counties, two 
106.18 	must be municipalities, at least one must host a coal plant, at least one must host a nuclear 
106.19 	plant, and at least one must host a natural gas plant.
106.20 	After the initial appointments, members of the advisory council shall be appointed no later 
106.21 	than January 15 of every odd-numbered year and shall serve until January 15 of the next 
106.22 	odd-numbered year. Members may be removed and vacancies filled as provided in section 
106.23 	15.059, subdivision 4. Appointed members are eligible for reappointment.
106.24 	(b) The advisory council shall elect a chair and other officers at its first meeting.
106.25 	(c) The advisory council shall review applications for community energy transition 
106.26 	grants and make recommendations to the commissioner of employment and economic 
106.27 	development.
106.28 	(d) The commissioner of employment and economic development shall select projects 
106.29 	from the recommendations made by the advisory council under this subdivision with 
106.30 	consideration given to the priorities listed in subdivision 6.
107.1 	(e) A member of the advisory council must not participate in the consideration of an 
107.2 	application from the community that member represents.
107.3 	(f) Members of the advisory council serve without compensation or payment of expenses.
107.4 	(g) The commissioner of employment and economic development or the commissioner's 
107.5 	designee shall provide meeting space and administrative services for the advisory council. 
107.6 	All costs necessary to support the advisory council's operations must be absorbed using 
107.7 	existing appropriations available to the commissioner.
107.8 	(h) The advisory council is subject to chapter 13D, but may close a meeting to discuss 
107.9 	sensitive private business information included in grant applications. Data related to an 
107.10 	application for a grant submitted to the advisory council is governed by section 13.599.
107.11 	(i) The commissioner shall convene the first meeting of the advisory council no later 
107.12 	than September 1, 2019.
107.13 		Subd. 8.Reports to the legislature. By January 15, 2021, and each January 15 thereafter, 
107.14 	the commissioner must submit a report to the chairs and ranking minority members of the 
107.15 	committees of the house of representatives and the senate having jurisdiction over economic 
107.16 	development that details the use of grant funds. When possible, this report must include 
107.17 	data on the economic impact achieved by each grant.

107.18 	Sec. 3. Minnesota Statutes 2018, section 216B.16, is amended by adding a subdivision to 
107.19 	read:
107.20 		Subd. 7e.Energy storage system pilot projects. (a) A public utility may petition the 
107.21 	commission under this section to recover costs associated with the implementation of an 
107.22 	energy storage system pilot project. As part of the petition, the public utility must submit a 
107.23 	report to the commission containing, at a minimum, the following information regarding 
107.24 	the proposed energy storage system pilot project:
107.25 	(1) the storage technology utilized;
107.26 	(2) the energy storage capacity and the duration of output at that capacity;
107.27 	(3) the proposed location;
107.28 	(4) the purchase and installation costs;
107.29 	(5) how the project will interact with existing distributed generation resources on the 
107.30 	utility's grid; and
108.1 	(6) the goals the project proposes to achieve, which may include controlling frequency 
108.2 	or voltage, mitigating transmission congestion, providing emergency power supplies during 
108.3 	outages, reducing curtailment of existing renewable energy generators, and reducing peak 
108.4 	power costs.
108.5 	(b) A utility may petition the commission to approve a rate schedule that provides for 
108.6 	the automatic adjustment of charges to recover prudently incurred investments, expenses, 
108.7 	or costs associated with energy storage system pilot projects approved by the commission 
108.8 	under this subdivision. A petition filed under this subdivision must include the elements 
108.9 	listed in section 216B.1645, subdivision 2a, paragraph (b), clauses (1) to (4), and must 
108.10 	describe the benefits of the pilot project.
108.11 	(c) The commission may approve, or approve as modified, a rate schedule filed under 
108.12 	this subdivision. The rate schedule filed by the public utility may include the elements listed 
108.13 	in section 216B.1645, subdivision 2a, paragraph (a), clauses (1) to (5).
108.14 	(d) For each pilot project that the commission has found to be in the public interest, the 
108.15 	commission must make its determination on the specific amounts that are eligible for 
108.16 	recovery under the approved rate schedule within 90 days of final approval of the specific 
108.17 	pilot program or within 90 days of the public utility filing for approval of cost recovery for 
108.18 	the specific pilot program, whichever is later.
108.19 	(e) Nothing in this subdivision prohibits or deters the deployment of energy storage 
108.20 	systems.
108.21 	(f) For the purposes of this subdivision:
108.22 	(1) "energy storage system" has the meaning given in section 216B.2422, subdivision 
108.23 	1; and
108.24 	(2) "pilot project" means a project that is owned, operated, and controlled by a public 
108.25 	utility to optimize safe and reliable system operations and is deployed at a limited number 
108.26 	of locations in order to assess the technical and economic effectiveness of its operations.

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

108.28 	Sec. 4. Minnesota Statutes 2018, section 216B.2422, subdivision 1, is amended to read:
108.29 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
108.30 	subdivision have the meanings given them.
109.1 	(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more 
109.2 	of electric power and serving, either directly or indirectly, the needs of 10,000 retail 
109.3 	customers in Minnesota. Utility does not include federal power agencies.
109.4 	(c) "Renewable energy" means electricity generated through use of any of the following 
109.5 	resources:
109.6 	(1) wind;
109.7 	(2) solar;
109.8 	(3) geothermal;
109.9 	(4) hydro;
109.10 	(5) trees or other vegetation;
109.11 	(6) landfill gas; or
109.12 	(7) predominantly organic components of wastewater effluent, sludge, or related 
109.13 	by-products from publicly owned treatment works, but not including incineration of 
109.14 	wastewater sludge.
109.15 	(d) "Resource plan" means a set of resource options that a utility could use to meet the 
109.16 	service needs of its customers over a forecast period, including an explanation of the supply 
109.17 	and demand circumstances under which, and the extent to which, each resource option 
109.18 	would be used to meet those service needs. These resource options include using, 
109.19 	refurbishing, and constructing utility plant and equipment, buying power generated by other 
109.20 	entities, controlling customer loads, and implementing customer energy conservation.
109.21 	(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating 
109.22 	resource of 30 megawatts or greater.
109.23 	(f) "Energy storage system" means a commercially available technology that:
109.24 	(1) uses mechanical, chemical, or thermal processes to:
109.25 	(i) store energy, including energy generated from renewable resources and energy that 
109.26 	would otherwise be wasted, and deliver the stored energy for use at a later time; or
109.27 	(ii) store thermal energy for direct use for heating or cooling at a later time in a manner 
109.28 	that reduces the demand for electricity at the later time;
109.29 	(2) is composed of stationary equipment;
110.1 	(3) if being used for electric grid benefits, is operationally visible and capable of being 
110.2 	controlled by the distribution or transmission entity managing it, to enable and optimize the 
110.3 	safe and reliable operation of the electric system; and
110.4 	(4) achieves any of the following:
110.5 	(i) reduces peak or electrical demand;
110.6 	(ii) defers the need or substitutes for an investment in electric generation, transmission, 
110.7 	or distribution assets;
110.8 	(iii) improves the reliable operation of the electrical transmission or distribution systems, 
110.9 	while ensuring transmission or distribution needs are not created; or
110.10 	(iv) lowers customer costs by storing energy when the cost of generating or purchasing 
110.11 	it is low and delivering it to customers when those costs are high.

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

110.13 	Sec. 5. Minnesota Statutes 2018, section 216B.2422, is amended by adding a subdivision 
110.14 	to read:
110.15 		Subd. 7.Energy storage systems assessment. (a) Each public utility required to file a 
110.16 	resource plan under subdivision 2 must include in the filing an assessment of energy storage 
110.17 	systems that analyzes how the deployment of energy storage systems contributes to:
110.18 	(1) meeting identified generation and capacity needs; and
110.19 	(2) evaluating ancillary services.
110.20 	(b) The assessment must employ appropriate modeling methods to enable the analysis 
110.21 	required in paragraph (a).

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

110.23 	Sec. 6. [216C.375] SOLAR FOR SCHOOLS PROGRAM.
110.24 		Subdivision 1.Definitions. (a) For the purposes of this section and section 216C.376, 
110.25 	the following terms have the meanings given them.
110.26 	(b) "Developer" means an entity that installs a solar energy system on a school building 
110.27 	that has been awarded a grant under this section.
110.28 	(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
111.1 	(d) "School" means a school that operates as part of an independent or special school 
111.2 	district.
111.3 	(e) "School district" means an independent or special school district.
111.4 	(f) "Solar energy system" means photovoltaic or solar thermal devices.
111.5 		Subd. 2.Establishment; purpose. A solar for schools program is established in the 
111.6 	Department of Commerce. The purpose of the program is to provide grants to stimulate the 
111.7 	installation of solar energy systems on or adjacent to school buildings by reducing their 
111.8 	cost, and to enable schools to use the solar energy system as a teaching tool that can be 
111.9 	integrated into the school's curriculum.
111.10 		Subd. 3.Establishment of account. (a) A solar for schools program account is 
111.11 	established in the special revenue fund. Money received from the general fund must be 
111.12 	transferred to the commissioner of commerce and credited to the account. Money deposited 
111.13 	in the account remains in the account until expended, and does not cancel to the general 
111.14 	fund.
111.15 	(b) When a grant is awarded under this section, the commissioner shall reserve the grant 
111.16 	amount in the account.
111.17 		Subd. 4.Expenditures. (a) Money in the account may be used only:
111.18 	(1) for grant awards made under this section; and
111.19 	(2) to pay the reasonable costs incurred by the department to administer this section.
111.20 	(b) Grant awards made with funds in the account are to be used only for grants for solar 
111.21 	energy systems installed on or adjacent to school buildings receiving retail electric service 
111.22 	from a utility that is not subject to section 116C.779, subdivision 1.
111.23 		Subd. 5.Eligible system. (a) A grant may be awarded to a school under this section 
111.24 	only if the solar energy system that is the subject of the grant:
111.25 	(1) is installed on or adjacent to the school building that will consume the electricity 
111.26 	generated by the solar energy system, on property within the service territory of the utility 
111.27 	currently providing electric service to the school building; and
111.28 	(2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the 
111.29 	estimated annual electricity consumption of the school building at which the solar energy 
111.30 	system is proposed to be installed.
111.31 	(b) A school district that receives a rebate or other financial incentive under section 
111.32 	216B.241 for a solar energy system and that demonstrates considerable need for financial 
112.1 	assistance, as determined by the commissioner, is eligible for a grant under this section for 
112.2 	the same solar energy system.
112.3 		Subd. 6.Application process. (a) The commissioner shall issue a request for proposals 
112.4 	to utilities, schools, and developers who may wish to apply for a grant under this section 
112.5 	on behalf of a school.
112.6 	(b) A utility or developer must submit an application to the commissioner on behalf of 
112.7 	a school on a form prescribed by the commissioner. The form must include, at a minimum, 
112.8 	the following information:
112.9 	(1) the capacity of the proposed solar energy system and the amount of electricity that 
112.10 	is expected to be generated;
112.11 	(2) the current energy demand of the school building on which the solar energy generating 
112.12 	system is to be installed, and information regarding any distributed energy resource, including 
112.13 	subscription to a community solar garden, that currently provides electricity to the school 
112.14 	building;
112.15 	(3) a description of any solar thermal devices proposed as part of the solar energy system;
112.16 	(4) the total cost of purchasing and installing the solar energy system, and its life-cycle 
112.17 	cost, including removal and disposal of system at the end of its life;
112.18 	(5) a copy of the proposed contract agreement between the school and the public utility 
112.19 	or developer that includes provisions addressing responsibility for maintenance of the solar 
112.20 	energy system;
112.21 	(6) the school's plan to make the solar energy system serve as a visible learning tool for 
112.22 	students, teachers, and visitors to the school, including how the solar energy system may 
112.23 	be integrated into the school's curriculum;
112.24 	(7) information that demonstrates the level of need of the school district for financial 
112.25 	assistance available under this section;
112.26 	(8) information that demonstrates the readiness of the school to implement the project, 
112.27 	including, but not limited to, the availability of the site on which the solar energy system 
112.28 	is to be installed, and the level of the school's engagement with the utility providing electric 
112.29 	service to the school building on which the solar energy system is to be installed on issues 
112.30 	relevant to the implementation of the project, including metering and other issues;
112.31 	(9) with respect to the installation and operation of the solar energy system, the 
112.32 	willingness and ability of the developer or the public utility to:
113.1 	(i) pay employees and contractors a prevailing wage rate, as defined in section 177.42, 
113.2 	subdivision 6; and
113.3 	(ii) adhere to the provisions of section 177.43;
113.4 	(10) how the developer or public utility plans to reduce the school's initial capital expense 
113.5 	for the purchase and installation of the solar energy system, and to provide financial benefits 
113.6 	to the school from the utilization of federal and state tax credits, utility incentives, and other 
113.7 	financial incentives; and
113.8 	(11) any other information deemed relevant by the commissioner.
113.9 	(c) The commissioner shall administer an open application process under this section at 
113.10 	least twice annually.
113.11 	(d) The commissioner shall develop administrative procedures governing the application 
113.12 	and grant award process.
113.13 		Subd. 7.Energy conservation review. At the commissioner's request, a school awarded 
113.14 	a grant under this section shall provide the commissioner information regarding energy 
113.15 	conservation measures implemented at the school building at which the solar energy system 
113.16 	is to be installed. The commissioner may make recommendations to the school regarding 
113.17 	cost-effective conservation measures it can implement and may provide technical assistance 
113.18 	and direct the school to available financial assistance programs.
113.19 		Subd. 8.Technical assistance. The commissioner shall provide technical assistance to 
113.20 	schools to develop and execute projects under this section.
113.21 		Subd. 9.Grant payments. The commissioner shall award a grant from the account 
113.22 	established under subdivision 3 to a school for the necessary costs associated with the 
113.23 	purchase and installation of a solar energy system. The amount of the grant shall be based 
113.24 	on the commissioner's assessment of the school's need for financial assistance.
113.25 		Subd. 10.Limitations. (a) No more than 50 percent of the grant payments awarded to 
113.26 	schools under this section may be awarded to schools where the proportion of students 
113.27 	eligible for free and reduced-price lunch under the National School Lunch Program is less 
113.28 	than 50 percent.
113.29 	(b) No more than ten percent of the total amount of grants awarded under this section 
113.30 	may be awarded to schools that are part of the same school district.
113.31 		Subd. 11.Application deadline. No application may be submitted under this section 
113.32 	after December 31, 2023.

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

114.2 	Sec. 7. [216C.376] SOLAR FOR SCHOOLS PROGRAM FOR CERTAIN UTILITY 
114.3 	SERVICE TERRITORY.
114.4 		Subdivision 1.Establishment; purpose. The utility subject to section 116C.779 shall 
114.5 	operate a program to develop, and to supplement with additional funding, financial 
114.6 	arrangements that allow schools to benefit from state and federal tax and other financial 
114.7 	incentives that schools are ineligible to receive directly in order to enable schools to install 
114.8 	and operate solar energy systems that can be used as teaching tools and integrated into the 
114.9 	school curriculum.
114.10 		Subd. 2.Required plan. (a) By October 1, 2019, the public utility must file a plan for 
114.11 	the solar for schools program with the commissioner. The plan must contain but is not 
114.12 	limited to the following elements:
114.13 	(1) a description of how entities that are eligible to take advantage of state and federal 
114.14 	tax and other financial incentives that reduce the cost of purchasing, installing, and operating 
114.15 	a solar energy system that schools are ineligible to take advantage of directly, can share a 
114.16 	portion of those financial benefits with schools at which a solar energy system will be 
114.17 	installed;
114.18 	(2) a description of how the public utility will utilize funds appropriated to the program 
114.19 	under this section to provide additional financial assistance to schools at which a solar 
114.20 	energy system will be installed;
114.21 	(3) certification that the financial assistance provided under this section to a school by 
114.22 	the public utility must include the full value of the renewable energy certificates associated 
114.23 	with the generation of electricity by the solar energy system receiving financial assistance 
114.24 	under this section over the lifetime of the solar energy system;
114.25 	(4) an estimate of the amount of financial assistance that the public utility will provide 
114.26 	to a school under clauses (1) to (3) on a per kilowatt-hour produced basis, and the length 
114.27 	of time financial assistance will be provided;
114.28 	(5) certification that the transaction between the public utility and the school for electricity 
114.29 	is the buy-all/sell-all method by which the public utility will charge the school for all 
114.30 	electricity the school consumes at the applicable retail rate schedule for sales to the school 
114.31 	based on the school's customer class, and shall credit or pay the school at the rate established 
114.32 	in subdivision 5;
115.1 	(6) administrative procedures governing the application and financial benefit award 
115.2 	process, and the costs the public utility and the department are projected to incur to administer 
115.3 	the program;
115.4 	(7) the public utility's proposed process for periodic reevaluation and modification of 
115.5 	the program; and
115.6 	(8) any additional information required by the commissioner.
115.7 	(b) The public utility may not implement the program until the commissioner approves 
115.8 	the public utility's plan submitted under this subdivision. The commissioner shall approve 
115.9 	a plan under this subdivision that the commissioner determines to be in the public interest 
115.10 	no later than December 31, 2019. Any proposed modifications to the plan approved under 
115.11 	this subdivision must be approved by the commissioner.
115.12 		Subd. 3.System eligibility. A solar energy system is eligible to receive financial benefits 
115.13 	under this section if it meets all of the following conditions:
115.14 	(1) the solar energy system must be located on or adjacent to a school building receiving 
115.15 	retail electric service from the public utility and completely located within the public utility's 
115.16 	electric service territory, provided that any land situated between the school building and 
115.17 	the site where the solar energy system is installed is owned by the school district in which 
115.18 	the school building operates; and
115.19 	(2) the total aggregate nameplate capacity of all distributed generation serving the school 
115.20 	building, including any subscriptions to a community solar garden under section 216B.1641, 
115.21 	may not exceed the lesser of one megawatt (alternating current) or 120 percent of the average 
115.22 	annual electric energy consumption of the school building.
115.23 		Subd. 4.Application process. (a) A school seeking financial assistance under this section 
115.24 	must submit an application to the public utility, including a plan for how the school will 
115.25 	use the solar energy system as a visible learning tool for students, teachers, and visitors to 
115.26 	the school, and how the solar energy system may be integrated into the school's curriculum.
115.27 	(b) The public utility shall award financial assistance under this section on a first-come, 
115.28 	first-served basis.
115.29 	(c) The public utility shall discontinue accepting applications under this section after all 
115.30 	funds appropriated under subdivision 5 are allocated to program participants, including 
115.31 	funds from canceled projects.
115.32 		Subd. 5.Benefits information. Before signing an agreement with the public utility to 
115.33 	receive financial assistance under this section, a school must obtain from the developer and 
116.1 	provide to the public utility information the developer shared with potential investors in the 
116.2 	project regarding future financial benefits to be realized from installation of a solar energy 
116.3 	system at the school, and potential financial risks.
116.4 		Subd. 6.Purchase rate; cost recovery; renewable energy credits. (a) The public utility 
116.5 	shall purchase all of the electricity generated by a solar energy system receiving financial 
116.6 	assistance under this section at a rate of $.105 per kilowatt-hour generated.
116.7 	(b) Payments by the public utility of the rate established under this subdivision to a 
116.8 	school receiving financial assistance under this section are fully recoverable by the public 
116.9 	utility through the public utility's fuel clause adjustment.
116.10 	(c) The renewable energy credits associated with the electricity generated by a solar 
116.11 	energy system installed under this section are the property of the public utility that is subject 
116.12 	to this section.
116.13 		Subd. 7.Limitation. (a) No more than 50 percent of the financial assistance provided 
116.14 	by the public utility to schools under this section may be provided to schools where the 
116.15 	proportion of students eligible for free and reduced-price lunch under the National School 
116.16 	Lunch Program is less than 50 percent.
116.17 	(b) No more than ten percent of the total amount of financial assistance provided by the 
116.18 	public utility to schools under this section may be provided to schools that are part of the 
116.19 	same school district.
116.20 		Subd. 8.Technical assistance. The commissioner shall provide technical assistance to 
116.21 	schools to develop and execute projects under this section.
116.22 		Subd. 9.Application deadline. No application may be submitted under this section 
116.23 	after December 31, 2023.

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

116.25 	Sec. 8. [216C.45] ELECTRIC VEHICLE CHARGING STATION REVOLVING 
116.26 	LOAN PROGRAM.
116.27 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
116.28 	subdivision have the meanings given them.
116.29 	(b) "Borrower" means the state, counties, cities, other governmental entities, nonprofit 
116.30 	organizations, and private businesses eligible under this section to apply for and receive 
116.31 	loans from the electric vehicle charging station revolving loan fund.
116.32 	(c) "Commissioner" means the commissioner of commerce.
117.1 	(d) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
117.2 	(e) "Electric vehicle charging station" means an electric component assembly or cluster 
117.3 	of component assemblies designed specifically to charge an electric vehicle battery by 
117.4 	transferring electric energy to a battery or a storage device in the electric vehicle.
117.5 	(f) "Loan" means financial assistance provided for all or part of the cost of an electric 
117.6 	vehicle charging station project, including money for design, development, purchase, or 
117.7 	installation.
117.8 	(g) "Facility load or submetering upgrades" means internal electric load infrastructure, 
117.9 	load side distribution infrastructure, or submetering installations necessary to provide stable 
117.10 	additional load needs of a property arising from the installation of electric vehicle charging 
117.11 	stations.
117.12 		Subd. 2.Revolving loan fund. The commissioner must establish an electric vehicle 
117.13 	charging station revolving loan fund to make loans for all or part of the cost of an electric 
117.14 	vehicle charging station project installed in Minnesota.
117.15 		Subd. 3.Administration. (a) The commissioner must establish a minimum interest rate 
117.16 	for loans to ensure that necessary loan administration costs are covered. The minimum 
117.17 	interest rate must not exceed:
117.18 	(1) one percent interest for a loan to a borrower that is the state, other governmental 
117.19 	entity, or a nonprofit organization; or
117.20 	(2) three percent interest for a loan to a borrower that is a private business.
117.21 	(b) Loan repayment of principal and loan interest payments must be paid to the department 
117.22 	for deposit in the revolving loan fund for subsequent distribution or use consistent with the 
117.23 	requirements under this section.
117.24 	(c) When a loan is repaid, 60 percent of the loan repayment must be retained in the 
117.25 	electric vehicle charging station revolving loan fund. The remaining 40 percent must be 
117.26 	transferred to the renewable development account under section 116C.779, until the total 
117.27 	amount transferred to the renewable development account equals $1,500,000.
117.28 		Subd. 4.Applications. (a) A loan applicant must submit an application to the 
117.29 	commissioner on forms prescribed by the commissioner.
117.30 	(b) The applicant must provide the following information:
117.31 	(1) the estimated cost of the project and the amount of the loan sought;
118.1 	(2) other possible sources of funding in addition to loans sought from the electric vehicle 
118.2 	charging station revolving loan fund;
118.3 	(3) the proposed methods and sources of funds to repay loans received; and
118.4 	(4) information demonstrating the financial status and ability of the borrower to repay 
118.5 	loans.
118.6 		Subd. 5.Use of loan funds. (a) Loans made with funds from the electric vehicle charging 
118.7 	station revolving loan fund may be used to design, develop, purchase, and install electric 
118.8 	vehicle charging stations and for facility load or submetering upgrades at locations in 
118.9 	Minnesota.
118.10 	(b) An electric vehicle charging station project receiving loan funds under this section 
118.11 	must be available for public use.
118.12 		Subd. 6.Evaluation of projects. (a) The commissioner must consider the following 
118.13 	information when evaluating a project:
118.14 	(1) a description of the nature and purpose of the proposed project, including an 
118.15 	explanation of the need for the project and the reasons why the project is in the public 
118.16 	interest;
118.17 	(2) the relationship of the project to the local area's needs;
118.18 	(3) the estimated project cost and the loan amount sought;
118.19 	(4) proposed sources of funding in addition to the loan sought from the electric vehicle 
118.20 	charging station revolving loan fund;
118.21 	(5) the need for the project as part of the overall transportation system;
118.22 	(6) the overall economic impact of the project; and
118.23 	(7) whether a project can demonstrate consistent and high usage rates of the proposed 
118.24 	electric vehicle charging stations, including the potential for consistent use by the same 
118.25 	electric vehicle.
118.26 	(b) When evaluating projects, the commissioner may consult with the commissioner of 
118.27 	transportation regarding the electric vehicle charging needs throughout the state.
118.28 	(c) When evaluating projects, the commissioner may not provide preference points or 
118.29 	other application benefits on the basis of a loan applicant being a local or state 
118.30 	government-owned entity or local unit of government.
119.1 		Subd. 7.Maximum loan amount. The maximum loan amount under this section is 
119.2 	$30,000 per electric vehicle charging station project.
119.3 		Subd. 8.User fees. As a condition of accepting a loan under this section, a borrower 
119.4 	must agree to charge a per hour user fee for use of an electric vehicle charging station funded 
119.5 	by the loan. A borrower must use at least 25 percent of the fees collected to repay the loan 
119.6 	and pay for expenses associated with operating and maintaining the electric vehicle charging 
119.7 	station funded by the loan.
119.8 		Subd. 9.Report to legislature. On or before March 15, 2020, and each March 15 
119.9 	thereafter, the commissioner must report to the chairs and ranking minority members of the 
119.10 	house of representatives and senate committees with jurisdiction over energy and 
119.11 	transportation policy and finance regarding the revolving loan program. The report must 
119.12 	include (1) a description of the projects and an account of loans made from the revolving 
119.13 	loan fund during the preceding calendar year, (2) the revolving loan fund balance, and (3) 
119.14 	an explanation of administrative expenses.

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

119.16 	Sec. 9. PRAIRIE ISLAND NET ZERO PROJECT.
119.17 		Subdivision 1.Program established. The Prairie Island net zero project is established 
119.18 	with the goal of the Prairie Island Indian community developing an energy system that 
119.19 	results in net zero emissions.
119.20 		Subd. 2.Grant. The commissioner of employment and economic development must 
119.21 	enter into a grant contract with the Prairie Island Indian community to provide the amount 
119.22 	appropriated under section 12 to stimulate research, development, and implementation of 
119.23 	renewable energy projects benefiting the Prairie Island Indian community or its members. 
119.24 	Any examination conducted by the commissioner of employment and economic development 
119.25 	to determine the sufficiency of the financial stability and capacity of the Prairie Island Indian 
119.26 	community to carry out the purposes of this grant is limited to the Community Services 
119.27 	Department of the Prairie Island Indian community.
119.28 		Subd. 3.Plan; report. The Prairie Island Indian community must file a plan with the 
119.29 	commissioner of employment and economic development no later than July 1, 2019, 
119.30 	describing the Prairie Island net zero project elements and implementation strategy. The 
119.31 	Prairie Island Indian community must file a report on July 1, 2020, and each July 1 thereafter 
119.32 	until the project is complete, describing the progress made in implementing the project and 
120.1 	the uses of expended funds. A final report must be completed within 90 days of the date 
120.2 	the project is complete.

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

120.4 	Sec. 10. BIOMASS BUSINESS COMPENSATION.
120.5 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
120.6 	the meanings given.
120.7 	(b) "Biomass plant" means the biomass plant identified under Minnesota Statutes, section 
120.8 	116C.779, subdivision 1, paragraph (f).
120.9 	(c) "Early termination" means the early termination of the power purchase agreement 
120.10 	authorized under Minnesota Statutes, section 216B.2424, subdivision 9, with the biomass 
120.11 	plant.
120.12 	(d) "Operating income" means a business's revenue minus its operating expenses.
120.13 		Subd. 2.Office of Administrative Hearings; claims process. (a) The chief 
120.14 	administrative law judge of the Office of Administrative Hearings must assign an 
120.15 	administrative law judge to administer a claims award process to compensate businesses 
120.16 	negatively affected by the early termination. The chief administrative law judge may develop 
120.17 	a process, prescribe forms, identify documentation affected businesses must submit with 
120.18 	claims, and issue awards to eligible businesses consistent with this section. The process 
120.19 	must allow, but not require, an authorized representative from each business that applies 
120.20 	for compensation to appear in person before the assigned administrative law judge to provide 
120.21 	evidence in support of the business's claim.
120.22 	(b) The chief administrative law judge may contract with and use the services of financial 
120.23 	or other consultants to examine financial documentation presented by claimants or otherwise 
120.24 	assist in the evaluation and award of claims.
120.25 	(c) Records submitted to the Office of Administrative Hearings as part of the claims 
120.26 	process constitute business data under Minnesota Statutes, section 13.591.
120.27 	(d) An award made under this section is final and is not subject to judicial review.
120.28 	(e) An award made under this section does not constitute an admission of liability by 
120.29 	the state for any damages or other losses suffered by a business affected by the early 
120.30 	termination.
120.31 		Subd. 3.Eligibility. To be eligible for an award of compensation, an affected business 
120.32 	must meet the following criteria:
121.1 	(1) as of May 1, 2017, the affected business was operating under the terms of a valid 
121.2 	written contract, or an oral contract that is sufficiently supported by business records, with 
121.3 	the company operating the biomass plant or the fertilizer plant integrated with the biomass 
121.4 	plant to supply or manage material for, or receive material from, the biomass plant or the 
121.5 	fertilizer plant integrated with the biomass plant;
121.6 	(2) the affected business is located in the state; and
121.7 	(3) as the result of the early termination, the affected business suffered:
121.8 	(i) decreased operating income; or
121.9 	(ii) the loss of value of investments in real or personal property essential to its business 
121.10 	operations with the biomass plant.
121.11 		Subd. 4.Types of claims. (a) An eligible business may make claims for a compensation 
121.12 	award based on either or both:
121.13 	(1) decreased operating income; or
121.14 	(2) the loss of value of investments in real or personal property essential to its business 
121.15 	operations with the biomass plant.
121.16 	(b) To establish and quantify a claim for decreased operating income, an eligible business 
121.17 	must:
121.18 	(1) demonstrate its operating income over the past five years derived from supplying or 
121.19 	managing material for, or receiving material from, the biomass plant;
121.20 	(2) present evidence of any alternative business opportunities it has pursued or could 
121.21 	pursue to mitigate the loss of revenue from the termination of its contract with the biomass 
121.22 	plant; and
121.23 	(3) demonstrate the amount that the business's annual operating income, including 
121.24 	operating income from any alternative business opportunities, after the termination of the 
121.25 	business's contract with the biomass plant is less than the five-year average of the business's 
121.26 	annual operating income before the early termination.
121.27 	(c) To establish and quantify a loss of value of investments in real or personal property 
121.28 	claim, an eligible business must provide sufficient evidence of:
121.29 	(1) the essential nature of the investment made in the property to fulfill the contract with 
121.30 	the biomass plant;
122.1 	(2) the extent to which the eligible business is able to repurpose the property for another 
122.2 	productive use after the early termination, including but not limited to the use, sales, salvage, 
122.3 	or scrap value of the property for which the loss is claimed; and
122.4 	(3) the value of the eligible business's nondepreciated investment in the property.
122.5 		Subd. 5.Limitations on awards. (a) A compensation award for a decreased operating 
122.6 	income claim must not exceed the amount calculated under subdivision 4, paragraph (b), 
122.7 	clause (3), multiplied by two.
122.8 	(b) The use, sales, salvage, or scrap value of the property for which a loss is claimed 
122.9 	must be deducted from a compensation award for a loss of value of investments in real or 
122.10 	personal property claim.
122.11 	(c) A payment received from business interruption insurance policies, settlements, or 
122.12 	other forms of compensation related to the termination of the business's contract with the 
122.13 	biomass plant must be deducted from any compensation award provided under this section.
122.14 		Subd. 6.Priority. The chief administrative law judge may give priority to claims by 
122.15 	eligible businesses that demonstrate a significant effort to pursue alternative business 
122.16 	opportunities or to conduct other loss mitigation efforts to reduce its claimed losses related 
122.17 	to the termination of its contract with the company operating the biomass plant.
122.18 		Subd. 7.Awarding claims. If the amount provided for compensation in the biomass 
122.19 	business compensation account established under section 4 is insufficient to fully award all 
122.20 	claims eligible for an award, all awards must be adjusted proportionally based on the value 
122.21 	of the claim.
122.22 		Subd. 8.Deadlines. The chief administrative law judge must make the application 
122.23 	process for eligible claims available by August 1, 2019. A business seeking an award under 
122.24 	this section must file all claims with the chief administrative law judge within 60 days of 
122.25 	the date the chief administrative law judge makes the application process for eligible claims 
122.26 	available. All preliminary awards on eligible claims must be made within 120 days of the 
122.27 	deadline date to file claims. Any requests to reconsider an award denial must be filed with 
122.28 	the chief administrative law judge within 60 days of the notice date for preliminary awards. 
122.29 	All final awards for eligible claims must be made within 60 days of the deadline date to file 
122.30 	reconsideration requests. The commissioner of management and budget must pay all awarded 
122.31 	claims within 45 days of the date the commissioner of management and budget receives 
122.32 	notice of the final awards from the chief administrative law judge.
122.33 		Subd. 9.Expiration. This section expires June 30, 2022.

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

123.2 	Sec. 11. BIOMASS BUSINESS COMPENSATION ACCOUNT.
123.3 		Subdivision 1.Account established. A biomass business compensation account is 
123.4 	established as a separate account in the special revenue fund in the state treasury. 
123.5 	Appropriations and transfers to the account must be credited to the account. Earnings, such 
123.6 	as interest, and any other earnings arising from the assets of the account are credited to the 
123.7 	account. Funds remaining in the account as of December 31, 2021, must be transferred to 
123.8 	the renewable development account established under Minnesota Statutes, section 116C.779.
123.9 		Subd. 2.Funding for the special account. Notwithstanding Minnesota Statutes, section 
123.10 	116C.779, subdivision 1, paragraph (j), on July 1, 2019, $40,000,000 must be transferred 
123.11 	from the renewable development account under Minnesota Statutes, section 116C.779, to 
123.12 	the biomass business compensation account established under subdivision 3. The transferred 
123.13 	funds are appropriated to pay eligible obligations under the biomass business compensation 
123.14 	program established under section 8.
123.15 		Subd. 3.Payment of expenses. The chief administrative law judge must certify to the 
123.16 	commissioner of management and budget the total costs incurred to administer the biomass 
123.17 	business compensation claims process. The commissioner of management and budget must 
123.18 	transfer an amount equal to the certified costs incurred for biomass business compensation 
123.19 	claim activities from the renewable development account under Minnesota Statutes, section 
123.20 	116C.779, and deposit it in the administrative hearings account under Minnesota Statutes, 
123.21 	section 14.54. Transfers may occur quarterly throughout the fiscal year and must be based 
123.22 	on quarterly cost and revenue reports, with final certification and reconciliation after each 
123.23 	fiscal year. The total amount transferred under this subdivision must not exceed $200,000.
123.24 		Subd. 4.Expiration. This section expires June 30, 2022.

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

123.26 	Sec. 12. GREEN ROOF ADVISORY TASK FORCE; REPORT.
 123.27 		Subdivision 1.Definition. For the purposes of this section, "green roof" means the roof 
123.28 	of a building on which:
123.29 	(1) photovoltaic devices, as defined in Minnesota Statutes, section 216C.06, are sited; 
123.30 	or
123.31 	(2) a vegetative landscape and associated elements are installed, which may include:
124.1 	(i) a growing medium;
124.2 	(ii) a waterproof membrane to protect the roof;
124.3 	(iii) a barrier to prevent plant roots from damaging the roof;
124.4 	(iv) a filter layer to prevent the growing medium from washing away;
124.5 	(v) thermal insulation to protect the vegetation and the building;
124.6 	(vi) a drainage system; and
124.7 	(vii) structural support.
124.8 		Subd. 2.Membership. (a) The Green Roof Advisory Task Force consists of the following 
124.9 	members:
124.10 	(1) the state building official, appointed under Minnesota Statutes, section 326B.127, 
124.11 	or the state building official's designee;
124.12 	(2) a representative of the Building Owners and Managers Association Greater 
124.13 	Minneapolis, appointed by the president of the association;
124.14 	(3) up to three representatives from Minnesota companies with extensive experience 
124.15 	installing green roofs, appointed by the commissioner of the Pollution Control Agency;
124.16 	(4) a cochair of the Committee on the Environment of the American Institute of Architects 
124.17 	Minnesota, or the cochair's designee;
124.18 	(5) a horticultural expert from the University of Minnesota Extension, appointed by the 
124.19 	dean of extension;
124.20 	(6) a representative of the University of Minnesota Center for Sustainable Building 
124.21 	Research, appointed by the director of the center;
124.22 	(7) a representative of the Minnesota Solar Energy Industries Association, appointed by 
124.23 	the president of the association;
124.24 	(8) a representative from the Minnesota Nursery and Landscape Association;
124.25 	(9) a representative of the Minnesota State Building Trades Council appointed by the 
124.26 	council;
124.27 	(10) the commissioner of commerce, or the commissioner's designee; and
124.28 	(11) other members appointed by the advisory task force that it deems to be helpful in 
124.29 	carrying out its duties under subdivision 3.
125.1 	(b) Members of the advisory task force are not to be compensated for activities associated 
125.2 	with the advisory task force.
125.3 	(c) The Department of Commerce must serve as staff to the advisory task force.
125.4 		Subd. 3.Duties. The advisory task force's duties are to review and evaluate:
125.5 	(1) laws relating to green roofs enacted in American cities and states and in foreign 
125.6 	countries;
125.7 	(2) estimates of the impacts of operating green roofs on:
125.8 	(i) energy use in the buildings on which the green roofs are installed and any associated 
125.9 	reductions in the emission of greenhouse gases and other air pollutants;
125.10 	(ii) roof replacement costs; and
125.11 	(iii) management costs for storm water; and
125.12 	(3) any other information the task force deems relevant.
125.13 		Subd. 4.Report. By March 1, 2020, the advisory task force must submit a report to the 
125.14 	chairs and ranking minority members of the senate and house of representatives committees 
125.15 	with primary jurisdiction over energy policy and environmental policy. The report must 
125.16 	contain the task force's findings and recommendations, including discussion of the benefits 
125.17 	and problems associated with requiring buildings of a certain type and size to install green 
125.18 	roofs.
125.19 		Subd. 5.Sunset. The task force shall sunset April 1, 2020.

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

125.21 	Sec. 13. REPORT; COST-BENEFIT ANALYSIS OF ENERGY STORAGE 
125.22 	SYSTEMS.
 125.23 	(a) The commissioner of commerce must contract with an independent consultant selected 
125.24 	through a request for proposal process to produce a report analyzing the potential costs and 
125.25 	benefits of energy storage systems, as defined in Minnesota Statutes, section 216B.2422, 
125.26 	subdivision 1, in Minnesota. The study may also include scenarios examining energy storage 
125.27 	systems that are not capable of being controlled by a utility. The commissioner must engage 
125.28 	a broad group of Minnesota stakeholders, including electric utilities and others, to develop 
125.29 	and provide information for the report. The study must:
125.30 	(1) identify and measure the different potential costs and savings produced by energy 
125.31 	storage system deployment, including but not limited to:
126.1 	(i) generation, transmission, and distribution facilities asset deferral or substitution;
126.2 	(ii) impacts on ancillary services costs;
126.3 	(iii) impacts on transmission and distribution congestion;
126.4 	(iv) impacts on peak power costs;
126.5 	(v) impacts on emergency power supplies during outages;
126.6 	(vi) impacts on curtailment of renewable energy generators; and
126.7 	(vii) reduced greenhouse gas emissions;
126.8 	(2) analyze and estimate the:
126.9 	(i) costs and savings to customers that deploy energy storage systems;
126.10 	(ii) impact on the utility's ability to integrate renewable resources;
126.11 	(iii) impact on grid reliability and power quality; and
126.12 	(iv) effect on retail electric rates over the useful life of a given energy storage system 
126.13 	compared to providing the same services using other facilities or resources;
126.14 	(3) consider the findings of analysis conducted by the Midcontinent Independent System 
126.15 	Operator on energy storage capacity accreditation and participation in regional energy 
126.16 	markets, including updates of the analysis; and
126.17 	(4) include case studies of existing energy storage applications currently providing the 
126.18 	benefits described in clauses (1) and (2).
126.19 	(b) By December 31, 2019, the commissioner of commerce must submit the study to 
126.20 	the chairs and ranking minority members of the senate and house of representatives 
126.21 	committees with jurisdiction over energy policy and finance.

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

126.23 	Sec. 14. APPROPRIATION; PRAIRIE ISLAND NET ZERO PROJECT.
 126.24 	Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
126.25 	$20,000,000 in fiscal year 2020; $7,500,000 in fiscal years 2021, 2022, and 2023; and 
126.26 	$3,700,000 in fiscal year 2024 are appropriated from the renewable development account 
126.27 	under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of 
126.28 	employment and economic development for a grant to the Prairie Island Indian community 
126.29 	to establish the net zero project under section 9.

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

127.1 	Sec. 15. APPROPRIATION; ENERGY STORAGE COST-BENEFIT ANALYSIS.
 127.2 	$150,000 in fiscal year 2019 is appropriated from the renewable development account 
127.3 	in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision 
127.4 	1, to the commissioner of commerce, to conduct an energy storage systems cost-benefit 
127.5 	analysis. This is a onetime appropriation and is available until June 30, 2020.

127.6 	Sec. 16. APPROPRIATION; GREEN ROOF TASK FORCE.
 127.7 	$55,000 in fiscal year 2020 is appropriated from the renewable development account 
127.8 	under Minnesota Statutes, section 116C.779, subdivision 1, paragraph (a), to the 
127.9 	commissioner of commerce to complete the green roof report required under section 12.

127.10 	Sec. 17. APPROPRIATION; SOLAR FOR SCHOOLS.
 127.11 	(a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
127.12 	$1,000,000 in fiscal year 2020 and $1,000,000 in fiscal year 2021 are appropriated from 
127.13 	the renewable development account established under Minnesota Statutes, section 116C.779, 
127.14 	subdivision 1, to the commissioner of commerce for transfer to the public utility that is 
127.15 	subject to Minnesota Statutes, section 216C.376, for the purposes of awarding grants and 
127.16 	financial assistance to schools under the solar for schools program under Minnesota Statutes, 
127.17 	section 216C.376.
127.18 	(b) This appropriation may be used by the commissioner to reimburse the reasonable 
127.19 	costs incurred by the public utility to administer the solar for schools program under 
127.20 	Minnesota Statutes, section 216C.375, and the reasonable costs of the department to review 
127.21 	and approve the public utility's plan, and any proposed modifications to that plan and to 
127.22 	provide technical assistance, under Minnesota Statutes, section 216C.376, subdivisions 2 
127.23 	and 8.

127.24 	Sec. 18. APPROPRIATION; ELECTRIC VEHICLE CHARGING STATION 
127.25 	REVOLVING LOAN PROGRAM.
 127.26 	Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), 
127.27 	$1,500,000 in fiscal year 2020 is appropriated from the renewable development account 
127.28 	under Minnesota Statutes, section 116C.779, to the commissioner of commerce for the 
127.29 	electric vehicle charging station revolving loan program under Minnesota Statutes, section 
127.30 	216C.45. This appropriation must be used only for loans made for electric vehicle charging 
127.31 	station projects in the service area of a public utility that owns a nuclear electric generating 
128.1 	plant in Minnesota. The commissioner may use up to three percent of this amount to 
128.2 	administer the program. This is a onetime appropriation and is available until expended.

APPENDIX 

Repealed Minnesota Statutes: UEH2208-1 

82B.021 DEFINITIONS.Subd. 17.Foundation appraisal organization. 
"Foundation appraisal organization" means a member private appraisal trade organization of the Appraisal Foundation including, but not limited to, the following: American Institute of Real Estate Appraisers, American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, International Association of Assessing Officers, International Right of Way Association, National Association of Independent Fee Appraisers, National Society of Real Estate Appraisers, or Society of Real Estate Appraisers. 

82B.095 APPRAISER QUALIFICATION COMPONENTS.Subd. 2.Conformance to Appraiser Qualifications Board criteria. 
 Qualifications for all levels of licensing must conform to the Real Property Qualification Criteria established by the Appraisal Qualifications Board for implementation effective January 1, 2015. 

82B.10 EXAMINATIONS.Subdivision 1.Generally. 
(a) An applicant for a license must pass an examination conducted by the commissioner. The examinations must be of sufficient scope to establish the competency of the applicant to act as a real estate appraiser and must conform with the current National Uniform Exam Content Outlines published by the Appraiser Qualifications Board. 

(b) A passing grade for a real estate appraiser licensing examination must be the cut score defined by the Appraiser Qualifications Board criteria. 

(c) To qualify for a license as a trainee real property appraiser, an applicant must pass a current trainee real property appraiser examination. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(d) To qualify for a license as a licensed real property appraiser, an applicant must pass a current uniform licensed real property appraiser examination approved by the Appraiser Qualifications Board. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(e) To qualify for a license as a certified residential real property appraiser, an applicant must pass a current uniform certified residential real property appraiser examination approved by the Appraiser Qualifications Board. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(f) To qualify for a license as a certified general real property appraiser, an applicant must pass a current uniform certified general real property appraiser examination approved by the Appraiser Qualifications Board. The examination must test the applicant's knowledge of appraisal terms, principles, theories, and ethics as provided in this chapter. 

(g) An applicant must complete the applicable education prerequisites in section 82B.13 and the experience requirements in section 82B.14 before the applicant takes the examination required under this section. 

Subd. 2.Reexaminations. 
An examination must be required before renewal of a license that has been suspended, or before the issuance of a license to a person whose license has been ineffective for a period of two years. No reexamination is required of an individual who has failed to renew an existing license because of absence from the state while on active duty with the armed services of the United States of America. 

Subd. 3.Examination frequency. 
The commissioner must hold examinations at times and places the commissioner determines. 

Subd. 4.Period for application. 
An applicant who obtains an acceptable score on an examination must file an application and obtain the license within two years of the date of successful completion of the examination or a second examination must be taken to qualify for the license. 

Subd. 5.Renewal; examination. 
Except as provided in subdivision 2, no examination is required for the renewal of a license. However, a licensee who has been licensed in the state of Minnesota and who fails to renew the license for a period of two years must be required by the commissioner to again take an examination. 

Subd. 6.Examination eligibility; revocation. 
No applicant may take an examination if a license as a real estate appraiser has been revoked in this or another state within two years of the date of the application. 

Subd. 8.Fees. 
The commissioner may assess an examination fee sufficient to recover the actual direct costs of holding the examination. 

Subd. 9.Cheating. 
The commissioner must not accept the scores of a person who has cheated on an examination. Cheating on a real estate appraiser examination must be grounds for denying an application for an appraiser's license. 

82B.11 CLASSES OF LICENSE.Subd. 2. Trainee real property appraiser. 
When a net income capitalization analysis is not required by the uniform standards of professional appraisal practice, a trainee real property appraiser may appraise residential real property or agricultural property. 

82B.12 EXAMINATION REQUIREMENT.
An original license as a licensed real estate appraiser must be issued to a person who has demonstrated through a written examination process that the appraiser has the following qualifications: 

(1) appropriate knowledge of technical terms commonly used in or related to real estate appraising, appraisal report writing, and economic concepts applicable to real estate; 

(2) understanding the principles of land economics, real estate appraisal processes, and problems likely to be encountered in gathering, interpreting, and processing of data in carrying out appraisal disciplines; 

(3) understanding the standards for the development and communication of real estate appraisals as provided in this chapter; 

(4) knowledge of theories of depreciation, cost estimating, methods of capitalization, and the mathematics of real estate appraisal that are appropriate for the classification of license for which the person is applying; 

(5) knowledge of other principles and procedures appropriate for the classification of license for which the person is applying; 

(6) basic understanding of real estate law; and 

(7) understanding the types of misconduct and ethical considerations for which disciplinary proceedings may be started against a licensed real estate appraiser. 

82B.13 EDUCATION PREREQUISITES.Subd. 1a.Licensed real property appraiser. 
As a prerequisite for licensing as a licensed real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has successfully completed: 

(1) at least 150 hours of prelicense courses approved by the commissioner. The courses must consist of 75 hours of general real estate appraisal principles and the 15-hour national USPAP course; and 

(2) an associate degree or higher from an accredited college or university. In lieu of the required degree, the applicant may present satisfactory documentation of successful completion of 30 semester credit hours of instruction from an accredited college or university. 

Subd. 3.Commissioner's approval; rules. 
The courses and instruction and procedures of courses must be approved by the commissioner. The commissioner may adopt rules to administer this section. These rules must, to the extent practicable, conform to the rules adopted for real estate and insurance education. The credit hours required under this section may be credited to a person for distance education courses that meet Appraiser Qualifications Board criteria. 

Subd. 4.Certified residential real property appraiser. 
As a prerequisite for licensing as a certified residential real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has successfully completed: 

(1) at least 200 hours of prelicense courses approved by the commissioner, with particular emphasis on the appraisal of one to four unit residential properties. Fifteen of the 200 hours must include successful completion of the 15-hour national USPAP course; and 

(2) a bachelor's degree or higher from an accredited college or university. 

Subd. 5.Certified general real property appraiser. 
As a prerequisite for licensing as a certified general real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has successfully completed: 

(1) at least 300 hours of prelicense courses approved by the commissioner, with particular emphasis on the appraisal of nonresidential properties. Fifteen of the 300 hours must include successful completion of the 15-hour national USPAP course; and 

(2) a bachelor's degree or higher from an accredited college or university. 

Subd. 6.All appraiser license levels. 
To receive approval from the commissioner, an appraiser prelicense education course must be at least 15 hours long. The required course hours for all appraiser license levels include completion of the 15-hour national USPAP course and specific core curriculum courses and hours in accordance with the real property appraiser qualification criteria as defined by the Appraisal Qualifications Board: 

	Trainee		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	Trainee level total education requirements	75 hours	
	Licensed		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	Residential market analysis and highest and best use	15 hours	
	Residential appraiser site valuation and cost approach	15 hours	
	Residential sales comparison and income approaches	30 hours	
	Residential report writing and case studies	15 hours	
	Licensed level total education requirements	150 hours	
	Certified residential		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	Residential market analysis and highest and best use	15 hours	
	Residential appraiser site valuation and cost approach	15 hours	
	Residential sales comparison and income approaches	30 hours	
	Residential report writing and case studies	15 hours	
	Statistics, modeling, and finance	15 hours	
	Advanced residential applications and case studies	15 hours	
	Appraisal subject matter electives	20 hours	
	(May include hours over minimum shown above in other modules)		
	Certified residential level total education requirements	200 hours	
	Certified general		
	Basic appraisal principles	30 hours	
	Basic appraisal procedures	30 hours	
	The 15-hour national USPAP course or its equivalent	15 hours	
	General appraiser market analysis and highest and best use	30 hours	
	Statistics, modeling, and finance	15 hours	
	General appraiser sales comparison approach	30 hours	
	General appraiser site valuation and cost approach	30 hours	
	General appraiser income approach	60 hours	
	General appraiser report writing and case studies	30 hours	
	Appraisal subject matter electives	30 hours	
	(May include hours over minimum shown above in other modules)		
	Certified general level total education requirements	300 hours	
Subd. 7.Student tracking manual. 
It is the responsibility of students to record the qualifying education they have completed in a student tracking manual broken down by required core curriculum modules and subtopics, and to maintain an orderly record of education, experience, and other requirements. 

Subd. 8.Appraiser prelicense education. 
(a) Credit toward the qualifying education requirements of this section may also be obtained via the completion of a degree in real estate from an accredited degree-granting college or university approved by the Association to Advance Collegiate Schools of Business, or a regional or national accreditation agency recognized by the United States Secretary of Education, provided that the college or university has had its curriculum reviewed and approved by the Appraiser Qualifications Board. 

(b) Notwithstanding section 45.22, a college or university real estate course may be approved retroactively by the commissioner for appraiser prelicense education credit if: 

(1) the course was offered by a college or university physically located in Minnesota; 

(2) the college or university was an approved education provider at the time the course was offered; and 

(3) the commissioner's approval is made to the same extent in terms of courses and hours and with the same time limits as those specified by the Appraiser Qualifications Board. 

82B.14 EXPERIENCE REQUIREMENT.
(a) As a prerequisite for licensing as a licensed real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has obtained 2,000 hours of experience in real property appraisal obtained in no fewer than 12 months. 

As a prerequisite for licensing as a certified residential real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has obtained 2,500 hours of experience in real property appraisal obtained in no fewer than 24 months. 

As a prerequisite for licensing as a certified general real property appraiser, an applicant must present evidence satisfactory to the commissioner that the person has obtained 3,000 hours of experience in real property appraisal obtained in no fewer than 30 months. At least 50 percent, or 1,500 hours, must be in nonresidential appraisal work. 

(b) Each applicant for license under section 82B.11, subdivision 3, 4, or 5, shall give under oath a detailed listing of the real estate appraisal reports or file memoranda for which experience is claimed by the applicant. Upon request, the applicant shall make available to the commissioner for examination, a sample of appraisal reports that the applicant has prepared in the course of appraisal practice. 

(c) Applicants may not receive credit for experience accumulated while unlicensed, if the experience is based on activities which required a license under this section. 

(d) Experience for all classifications must be obtained after January 30, 1989, and must be USPAP compliant. 

216B.241 ENERGY CONSERVATION IMPROVEMENT.Subd. 1b.Conservation improvement by cooperative association or municipality. 
(a) This subdivision applies to: 

(1) a cooperative electric association that provides retail service to more than 5,000 members; 

(2) a municipality that provides electric service to more than 1,000 retail customers; and 

(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales to natural gas retail customers. 

(b) Each cooperative electric association and municipality subject to this subdivision shall spend and invest for energy conservation improvements under this subdivision the following amounts: 

(1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross operating revenues from electric and gas service provided in the state to large electric customer facilities; and 

(2) for a cooperative electric association, 1.5 percent of its gross operating revenues from service provided in the state, excluding gross operating revenues from service provided in the state to large electric customer facilities indirectly through a distribution cooperative electric association. 

(c) Each municipality and cooperative electric association subject to this subdivision shall identify and implement energy conservation improvement spending and investments that are appropriate for the municipality or association, except that a municipality or association may not spend or invest for energy conservation improvements that directly benefit a large energy facility or a large electric customer facility for which the commissioner has issued an exemption under subdivision 1a, paragraph (b). 

(d) Each municipality and cooperative electric association subject to this subdivision may spend and invest annually up to ten percent of the total amount required to be spent and invested on energy conservation improvements under this subdivision on research and development projects that meet the definition of energy conservation improvement in subdivision 1 and that are funded directly by the municipality or cooperative electric association. 

(e) Load-management activities may be used to meet 50 percent of the conservation investment and spending requirements of this subdivision. 

(f) A generation and transmission cooperative electric association that provides energy services to cooperative electric associations that provide electric service at retail to consumers may invest in energy conservation improvements on behalf of the associations it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate basis. A municipal power agency or other not-for-profit entity that provides energy service to municipal utilities that provide electric service at retail may invest in energy conservation improvements on behalf of the municipal utilities it serves and may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate basis, under an agreement between the municipal power agency or not-for-profit entity and each municipal utility for funding the investments. 

(g) Each municipality or cooperative shall file energy conservation improvement plans by June 1 on a schedule determined by order of the commissioner, but at least every three years. Plans received by June 1 must be approved or approved as modified by the commissioner by December 1 of the same year. The municipality or cooperative shall provide an evaluation to the commissioner detailing its energy conservation improvement spending and investments for the previous period. The evaluation must briefly describe each conservation program and must specify the energy savings or increased efficiency in the use of energy within the service territory of the utility or association that is the result of the spending and investments. The evaluation must analyze the cost-effectiveness of the utility's or association's conservation programs, using a list of baseline energy and capacity savings assumptions developed in consultation with the department. The commissioner shall review each evaluation and make recommendations, where appropriate, to the municipality or association to increase the effectiveness of conservation improvement activities. 

(h) The commissioner shall consider and may require a utility, association, or other entity providing energy efficiency and conservation services under this section to undertake a program suggested by an outside source, including a political subdivision, nonprofit corporation, or community organization. 

469.084 ST. PAUL.Subd. 1a.Meetings by telephone or other electronic means. 
The port authority may conduct meetings as provided by section 13D.015.