1.1 	A bill for an act
1.2 	relating to energy; allowing expenditures on fuel-switching improvements made 
1.3 	to low-income households to apply to the low-income conservation spending 
1.4 	requirement for municipal utilities and cooperative electric associations;amending 
1.5 	Minnesota Statutes 2024, section 216B.2403, subdivision 5.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2024, section 216B.2403, subdivision 5, is amended to read:
1.8 		Subd. 5.Energy conservation programs for low-income households. (a) A 
1.9 	consumer-owned utility subject to this section must provide energy conservation programs 
1.10 	to low-income households. The commissioner must evaluate a consumer-owned utility's 
1.11 	plans under this section by considering the consumer-owned utility's historic spending on 
1.12 	energy conservation programs directed to low-income households, the rate of customer 
1.13 	participation in and the energy savings resulting from those programs, and the number of 
1.14 	low-income persons residing in the consumer-owned utility's service territory. A municipal 
1.15 	utility that furnishes natural gas service must spend at least 0.2 percent of the municipal 
1.16 	utility's most recent three-year average gross operating revenue from residential customers 
1.17 	in Minnesota on energy conservation programs for low-income households programs. A 
1.18 	consumer-owned utility that furnishes electric service must spend at least 0.2 percent of the 
1.19 	consumer-owned utility's gross operating revenue from residential customers in Minnesota 
1.20 	on energy conservation programs for low-income households programs. The requirement 
1.21 	under this paragraph applies to each generation and transmission cooperative association's 
1.22 	aggregate gross operating revenue from the sale of electricity to residential customers in 
1.23 	Minnesota by all of the association's member distribution cooperatives.
2.1 	(b) To meet all or part of the spending requirements of paragraph (a), a consumer-owned 
2.2 	utility may contribute money to the energy and conservation account established in section 
2.3 	216B.241, subdivision 2a. An energy conservation optimization plan must state the amount 
2.4 	of contributions the consumer-owned utility plans to make to the energy and conservation 
2.5 	account. Contributions to the account must be used for energy conservation programs serving 
2.6 	low-income households, including renters, located in the service area of the consumer-owned 
2.7 	utility making the contribution. Contributions must be remitted to the commissioner by 
2.8 	February 1 each year.
2.9 	(c) The commissioner must establish energy conservation programs for low-income 
2.10 	households funded through contributions to the energy and conservation account under 
2.11 	paragraph (b). When establishing energy conservation programs for low-income households, 
2.12 	the commissioner must consult political subdivisions, utilities, and nonprofit and community 
2.13 	organizations, including organizations providing energy and weatherization assistance to 
2.14 	low-income households. The commissioner must record and report expenditures and energy 
2.15 	savings achieved as a result of energy conservation programs for low-income households 
2.16 	funded through the energy and conservation account in the report required under section 
2.17 	216B.241, subdivision 1c, paragraph (f). The commissioner may contract with a political 
2.18 	subdivision, nonprofit or community organization, public utility, municipality, or 
2.19 	consumer-owned utility to implement low-income programs funded through the energy and 
2.20 	conservation account.
2.21 	(d) A consumer-owned utility may petition the commissioner to modify the required 
2.22 	spending under this subdivision if the consumer-owned utility and the commissioner were 
2.23 	unable to expend the amount required for three consecutive years.
2.24 	(e) The commissioner must develop and establish guidelines for determining the eligibility 
2.25 	of multifamily buildings to participate in energy conservation programs provided to 
2.26 	low-income households. Notwithstanding the definition of low-income household in section 
2.27 	216B.2402, a consumer-owned utility or association may apply the most recent guidelines 
2.28 	published by the department for purposes of determining the eligibility of multifamily 
2.29 	buildings to participate in low-income programs. The commissioner must convene a 
2.30 	stakeholder group to review and update these guidelines by August 1, 2021, and at least 
2.31 	once every five years thereafter. The stakeholder group must include but is not limited to 
2.32 	representatives of public utilities; municipal electric or gas utilities; electric cooperative 
2.33 	associations; multifamily housing owners and developers; and low-income advocates.
2.34 	(f) Up to 15 percent of a consumer-owned utility's spending on low-income energy 
2.35 	conservation programs may be spent on preweatherization measures. A consumer-owned 
3.1 	utility is prohibited from claiming energy savings from preweatherization measures toward 
3.2 	the consumer-owned utility's energy savings goal.
3.3 	(g) The commissioner must, by order, establish a list of preweatherization measures 
3.4 	eligible for inclusion in low-income energy conservation programs no later than March 15, 
3.5 	2022.
3.6 	(h) A Healthy AIR (Asbestos Insulation Removal) account is established as a separate 
3.7 	account in the special revenue fund in the state treasury. A consumer-owned utility may 
3.8 	elect to contribute money to the Healthy AIR account to provide preweatherization measures 
3.9 	for households eligible for weatherization assistance from the state weatherization assistance 
3.10 	program in section 216C.264. Remediation activities must be executed in conjunction with 
3.11 	federal weatherization assistance program services. Money contributed to the account by a 
3.12 	consumer-owned utility counts toward: (1) the minimum low-income spending requirement 
3.13 	under paragraph (a); and (2) the cap on preweatherization measures under paragraph (f). 
3.14 	Money in the account is annually appropriated to the commissioner of commerce to pay for 
3.15 	Healthy AIR-related activities.
3.16 	(i) This paragraph applies to a consumer-owned utility that supplies electricity to a 
3.17 	low-income household whose primary heating fuel is supplied by an entity other than a 
3.18 	public utility. Any spending on space and water heating energy conservation improvements 
3.19 	and efficient fuel-switching by the consumer-owned utility on behalf of the low-income 
3.20 	household may be applied to the consumer owned utility's spending requirement under 
3.21 	paragraph (a). To the maximum extent possible, a consumer-owned utility providing services 
3.22 	under this paragraph must offer the services in conjunction with weatherization services 
3.23 	provided under section 216C.264.

3.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
3.25 	applies to efficient fuel-switching improvements installed on or after that date.