1.1 	A bill for an act
1.2 	relating to energy; modifying the property assessed clean energy program; amending 
1.3 	Minnesota Statutes 2019 Supplement, section 216C.435, subdivisions 3a, 8.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2019 Supplement, section 216C.435, subdivision 3a, is 
1.6 	amended to read:
1.7 		Subd. 3a.Cost-effective energy improvements. "Cost-effective energy improvements" 
1.8 	mean:
1.9 	(1) any new construction, renovation, or retrofitting of qualifying commercial real 
1.10 	property to improve energy efficiency that is permanently affixed to the property, results 
1.11 	in a net reduction in energy consumption without altering the principal source of energy, 
1.12 	and has been identified in an energy audit as repaying the purchase and installation costs 
1.13 	in 20 years or less, based on the amount of future energy saved and estimated future energy 
1.14 	prices;
1.15 	(2) any renovation or retrofitting of qualifying residential real property that is permanently 
1.16 	affixed to the property and is eligible to receive an incentive through a program offered by 
1.17 	the electric or natural gas utility that provides service under section 216B.241 to the property 
1.18 	or is otherwise determined to be a cost-effective energy improvement by the commissioner 
1.19 	under section 216B.241, subdivision 1d, paragraph (a);
1.20 	(3) permanent installation of new or upgraded electrical circuits and related equipment 
1.21 	to enable electrical vehicle charging; or
2.1 	(4) a solar voltaic or solar thermal energy system attached to, installed within, or 
2.2 	proximate to a building that generates electrical or thermal energy from a renewable energy 
2.3 	source that has been identified in an energy audit or renewable energy system feasibility 
2.4 	study as repaying their purchase and installation costs in 20 years or less, based on the 
2.5 	amount of future energy saved and estimated future energy prices.; or
2.6 	(5) any improvement to qualifying farmland that is permanent in nature, results in 
2.7 	improved agricultural productivity or resiliency, and reduces environmental impact.

2.8 	Sec. 2. Minnesota Statutes 2019 Supplement, section 216C.435, subdivision 8, is amended 
2.9 	to read:
2.10 		Subd. 8.Qualifying commercial real property. "Qualifying commercial real property" 
2.11 	means a multifamily residential dwelling, or a commercial or industrial building, or farmland
2.12 	that the implementing entity has determined, after review of an energy audit or, renewable 
2.13 	energy system feasibility study, or agronomic assessment can be benefited by installation 
2.14 	of cost-effective energy improvements. Qualifying commercial real property includes new 
2.15 	construction.