1.1 	A bill for an act
1.2 	relating to energy conservation; directing the Public Utilities Commission to 
1.3 	develop and approve a financial incentive for energy conservation for public 
1.4 	utilities.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. RESIDENTIAL ENERGY CONSERVATION FINANCIAL INCENTIVE.
 1.7 	(a) In addition to any financial incentive approved under Minnesota Statutes, section 
1.8 	216B.16, subdivision 6c, the Public Utilities Commission must approve a financial incentive 
1.9 	designed to encourage a public utility to continue investing in cost-effective conservation 
1.10 	measures that result in energy savings to residential customers after the public utility has 
1.11 	achieved annual energy savings for all customers equivalent to 1.9 percent of gross retail 
1.12 	electric energy sales or 1.2 percent of gross annual retail natural gas sales. When reviewing 
1.13 	and approving the incentive, the Public Utilities Commission must ensure the effective 
1.14 	involvement of interested parties and must apply the criteria established in Minnesota 
1.15 	Statutes, section 216B.16, subdivision 6c, paragraph (b).
1.16 	(b) By November 1, 2019, the commissioner of commerce must develop and submit to 
1.17 	the Public Utilities Commission for approval a financial incentive that meets the requirements 
1.18 	under paragraph (a). The Public Utilities Commission may modify the financial incentive 
1.19 	submitted under this paragraph.

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