Minnesota Legislature
HF 1193
as introduced - 87th Legislature (2011 - 2012) Posted on 03/17/2011 09:54am
Bill Text Versions
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| Introduction | Posted on 03/17/2011 |
Current Version - as introduced
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A bill for an act
relating to energy; amending regulations for municipalities and electric
cooperative associations with respect to energy conservation programs; amending
Minnesota Statutes 2010, section 216B.241, subdivisions 1b, 1c.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 216B.241, subdivision 1b, is amended to
read:
Subd. 1b.
Conservation improvement by cooperative association or
municipality.
(a) This subdivision applies to:
(1) a cooperative electric association that provides retail service to its members;
(2) a municipality that provides electric service to retail customers; and
(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput
sales to natural gas to 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) new text begin Each municipality and cooperative electric association subject to this subdivision:
new text end
new text begin
(1) shall make a good-faith effort to meet an annual energy-savings goal equivalent
to 1.5 percent gross annual retail energy sales, although no municipality or cooperative
association is required to spend more than the proportion of gross operating revenues cited
in paragraph (b) to achieve the energy-savings goal;
new text end
new text begin
(2) may, if it experiences zero or negative growth in gross retail energy sales, be
deemed to satisfy the energy-savings goal if it achieves savings equal to 0.75 percent of
gross retail energy sales;
new text end
new text begin
(3) shall calculate the energy-savings goal based on weather-normalized average
gross retail energy sales during the three most recent calendar years;
new text end
new text begin
(4) may elect to carry forward energy-savings in excess of 1.5 percent to apply to the
energy-savings goal in subsequent years;
new text end
new text begin
(5) may use a particular energy savings only for one year's goal;
new text end
new text begin
(6) may apply towards its energy-savings goal energy saved from electric utility
infrastructure projects as defined in section 216B.1636, provided that the projects result
in increased efficiency greater than that which would have occurred through normal
maintenance activity; and
new text end
new text begin
(7) may apply toward its energy-savings goal five kilowatt-hours per dollar spent,
including labor and administrative costs, to educate customers about energy conservation
and to educate and train utility employees, contractors, and others to perform energy
audits, install conservation measures, and conduct other activities directly related to
conservation investments.
new text end
new text begin (d) new text end 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).new text begin A
municipality or cooperative electric association whose annual gross retail energy sales
increase by ten percent or more over the previous year as the result of the addition of a
single new customer or increased demand from a singe existing customer may petition
the commissioner to exclude those incremental sales from its energy-savings goal. If the
commissioner approves the exclusion, the municipality or cooperative electric association
may petition the commissioner annually to extend the exclusion, even if the incremental
sales added by the customer no longer increase gross retail energy sales by ten percent
or more over the previous year. The commissioner must approve the extension if the
commissioner determines that the petition contains sufficient evidence to demonstrate
that the customer whose sales are sought to be excluded continues to make reasonable
efforts to identify, evaluate, and implement energy conservation improvements at the
customer's facility.
new text end
new text begin
(e) A municipality and cooperative electric association subject to this subdivision
is not required to make energy conservation investments to attain the energy-savings
goal of this subdivision that are not cost-effective even if the investment is necessary
to attain the energy-savings goal. For the purpose of this paragraph, in determining
cost-effectiveness, the commissioner shall consider the costs and benefits to ratepayers,
the cooperative electric association or municipality, participants, and society. In addition,
the commissioner shall consider the rate at which a cooperative electric association or
municipality is increasing its energy savings and its expenditures on energy conservation.
new text end
deleted text begin (d)deleted text end new text begin (f)new text end 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.
deleted text begin (e)deleted text end new text begin (g)new text end Load-management activities may be used to meet 50 percent of the
conservation investment and spending requirements of this subdivision.new text begin The amount
of energy a utility shifts from peak daily demand by implementing load-management
activities may count for up to 50 percent of the energy-savings goal of a municipality or
cooperative electric association.
new text end
deleted text begin (f)deleted text end new text begin (h)new text end 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.
deleted text begin (g)deleted text end new text begin (i)new text end Each municipality or cooperative new text begin electric association new text end shall file energy
conservation improvement plans new text begin or a summary of the plans new text end by June 1 on a schedule
determined by order of the commissioner, but at least every three years. Plans new text begin or
summaries new text end received by June 1 must be deleted text begin approved or approved as modifieddeleted text end new text begin reviewednew text end by the
commissioner new text begin and the commissioner's comments must be submitted to the municipality
or cooperative electric association new text end by December 1 of the same year. The municipality or
cooperative new text begin electric association new text end shall provide an evaluation to the commissioner deleted text begin detailingdeleted text end new text begin
summarizingnew text end 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 deleted text begin utilitydeleted text end new text begin municipalitynew text end or new text begin cooperative electric new text end association that is the result of
the spending and investments. The evaluation must analyze the cost-effectiveness of the
deleted text begin utility'sdeleted text end new text begin municipality'snew text end or new text begin cooperative electric new text end 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 new text begin cooperative electric new text end association to increase the
effectiveness of conservation improvement activities.new text begin In making recommendations, the
commissioner may consider the municipality's or cooperative electric association's rate of
conservation spending and energy savings, historical conservation investment experience,
impact on rates of conservation spending and energy savings, customer class profile, load
growth trends, conservation potential, customers' ability to pay, as well as local economic
conditions, advancing technology, and other relevant factors.
new text end
deleted text begin (h)deleted text end new text begin (j)new text end A municipality may spend up to 50 percent of its required spending under this
section to refurbish an existing district heating or cooling system until July 1, 2007. From
July 1, 2007, through June 30, 2011, expenditures made to refurbish a district heating or
cooling system are considered to be load-management activities under paragraph deleted text begin (e)deleted text end new text begin (g)new text end .
This paragraph expires July 1, 2011.
deleted text begin (i)deleted text end new text begin (k)new text end 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.
Sec. 2.
Minnesota Statutes 2010, section 216B.241, subdivision 1c, is amended to read:
Subd. 1c.
Energy-saving goals.
(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.
(b) Each individual new text begin public new text end utility deleted text begin and associationdeleted text end shall have an annual energy-savings
goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
commissioner under paragraph (d). The savings goals must be calculated based on the
most recent three-year weathernew text begin -new text end normalized average. A new text begin public new text end utility deleted text begin or associationdeleted text end may
elect to carry forward energy savings in excess of 1.5 percent for a year to the succeeding
three calendar years, except that savings from electric utility infrastructure projects
allowed under paragraph (d) may be carried forward for five years. A particular energy
savings can be used only for one year's goal.
(c) The commissioner must adopt a filing schedule that is designed to have all
utilities and associations operating under an energy-savings plan by calendar year 2010.
(d) In its energy conservation improvement plan filing, a new text begin public new text end utility deleted text begin or associationdeleted text end
may request the commissioner to adjust its annual energy-savings percentage goal based
on its historical conservation investment experience, customer class makeup, load growth,
a conservation potential study, or other factors the commissioner determines warrants
an adjustment. The commissioner may not approve a plan that provides for an annual
energy-savings goal of less than one percent of gross annual retail energy sales from
energy conservation improvements.
A new text begin public new text end utility deleted text begin or associationdeleted text end may include in its energy conservation plan energy
savings from electric utility infrastructure projects approved by the commission under
section 216B.1636 or waste heat recovery converted into electricity projects that may
count as energy savings in addition to the minimum energy-savings goal of at least one
percent for energy conservation improvements. Electric utility infrastructure projects
must result in increased energy efficiency greater than that which would have occurred
through normal maintenance activity.
(e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.
(f) deleted text begin An association ordeleted text end new text begin A publicnew text end utility is not required to make energy conservation
investments to attain the energy-savings goals of this subdivision that are not cost-effective
even if the investment is necessary to attain the energy-savings goals. For the purpose
of this paragraph, in determining cost-effectiveness, the commissioner shall consider
the costs and benefits to ratepayers, the utility, participants, and society. deleted text begin In addition,
the commissioner shall consider the rate at which an association or municipal utility is
increasing its energy savings and its expenditures on energy conservation.
deleted text end
(g) On an annual basis, the commissioner shall produce and make publicly available
a report on the annual energy savings and estimated carbon dioxide reductions achieved
by the energy conservation improvement programs for the two most recent years for
which data is available. The commissioner shall report on program performance both in
the aggregate and for each entity filing an energy conservation improvement plan for
approval or review by the commissioner.
(h) By January 15, 2010, the commissioner shall report to the legislature whether
the spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.
Sec. 3. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 and 2 are effective the day following final enactment.
new text end