HF 1344

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to utilities; modifying and adding provisions
relating to alternative, clean, or renewable energy
resource development; regulating public utilities,
power transmission companies and facilities, and
energy facilities; authorizing local power quality
zones; authorizing community-based energy development
tariff; transferring various siting authorities from
Environmental Quality Board to Public Utilities
Commission; providing for commission oversight of
reliability administrator; modifying provisions
relating to energy conservation; requiring commission
to establish e-filing system; requiring creation of
stakeholder and working groups; regulating gas
infrastructure cost recovery; requiring studies and
reports; making clarifying and technical changes;
appropriating money; amending Minnesota Statutes 2004,
sections 116C.52, subdivisions 2, 4; 116C.53,
subdivision 2; 116C.57, subdivisions 1, 2c, by adding
a subdivision; 116C.575, subdivision 5; 116C.577;
116C.58; 116C.61, subdivision 3; 116C.69, subdivisions
2, 2a; 216B.02, by adding a subdivision; 216B.16,
subdivision 6d, by adding subdivisions; 216B.1645,
subdivision 1; 216B.241, subdivisions 1b, 2;
216B.2421, subdivision 2; 216B.2425, subdivision 2, by
adding a subdivision; 216B.243, subdivisions 3, 4, 5,
6, 7, 8; 216B.50, subdivision 1; 216B.62, subdivision
5, by adding a subdivision; 216B.79; 216C.052;
216C.41, subdivision 1; proposing coding for new law
in Minnesota Statutes, chapters 216B; 216C; repealing
Laws 1999, chapter 125, section 4, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

TRANSMISSION COMPANIES

Section 1.

Minnesota Statutes 2004, section 216B.02, is
amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Transmission company. new text end

new text begin "Transmission company"
means persons, corporations, or other legal entities and their
lessees, trustees, and receivers, now or hereafter engaged in
the business of owning, operating, maintaining, or controlling
in this state equipment or facilities for furnishing electric
transmission service in Minnesota, but does not include public
utilities, municipal electric utilities, municipal power
agencies, cooperative electric associations, or generation and
transmission cooperative power associations.
new text end

Sec. 2.

Minnesota Statutes 2004, section 216B.16, is
amended by adding a subdivision to read:

new text begin Subd. 7b. new text end

new text begin Transmission cost adjustment. new text end

new text begin (a)
Notwithstanding any other provision of this chapter, the
commission may approve a tariff mechanism for the automatic
annual adjustment of charges for the Minnesota jurisdictional
costs of new transmission facilities that have been separately
filed and reviewed and approved by the commission under sections
216B.2425 and 216B.243 or are deemed to be a priority
transmission project under section 216B.2425.
new text end

new text begin (b) Upon filing by a public utility or utilities providing
transmission service, the commission may approve, reject, or
modify, after notice and comment, a tariff that:
new text end

new text begin (1) allows the utility to recover on a timely basis the
costs net of revenues of facilities approved under sections
216B.2425 and 216B.243;
new text end

new text begin (2) allows a return on investment at the level approved in
the utility's last general rate case, unless a different return
is found to be consistent with the public interest;
new text end

new text begin (3) provides a current return on construction work in
progress, provided that recovery from Minnesota retail customers
for the allowance for funds used during construction is not
sought through any other mechanism;
new text end

new text begin (4) allows for recovery of other expenses if shown to
promote a least-cost project option or is otherwise in the
public interest;
new text end

new text begin (5) allocates project costs appropriately between wholesale
and retail customers;
new text end

new text begin (6) provides a mechanism for recovery above cost, if
necessary to improve the overall economics of the project or
projects or is otherwise in the public interest; and
new text end

new text begin (7) terminates recovery once costs have been fully
recovered or have otherwise been reflected in the utility's
general rates.
new text end

new text begin (c) A public utility may file annual rate adjustments to be
applied to customer bills paid under the tariff approved in
paragraph (b). In its filing, the public utility shall provide:
new text end

new text begin (1) a description of and context for the facilities
included for recovery;
new text end

new text begin (2) a schedule for implementation of applicable projects;
new text end

new text begin (3) the utility's costs for these projects;
new text end

new text begin (4) a description of the utility's efforts to ensure the
lowest costs to ratepayers for the project; and
new text end

new text begin (5) calculations to establish that the rate adjustment is
consistent with the terms of the tariff established in paragraph
(b).
new text end

new text begin (d) Upon receiving a filing for a rate adjustment pursuant
to the tariff established in paragraph (b), the commission shall
approve the annual rate adjustments provided that, after notice
and comment, the costs included for recovery through the tariff
were or are expected to be prudently incurred and achieve
transmission system improvements at the lowest feasible and
prudent cost to ratepayers.
new text end

Sec. 3.

Minnesota Statutes 2004, section 216B.16, is
amended by adding a subdivision to read:

new text begin Subd. 7c. new text end

new text begin Transmission assets transfer. new text end

new text begin (a) Subject to
prior approval of the commission under this subdivision, a
public utility that owns transmission facilities may transfer
operational control or ownership of those assets to a
transmission company subject to Federal Energy Regulatory
Commission jurisdiction. For asset transfers by a public
utility, the Public Utilities Commission may review the request
to transfer in the context of a general rate case under this
section or may initiate other proceedings it determines provide
adequate review of the effect on retail rates of an asset
transfer approved under this section sufficient to protect
ratepayers. The commission may only approve a transfer sought
after the effective date of this section if it finds that the
transfer:
new text end

new text begin (1) is consistent with the public interest;
new text end

new text begin (2) facilitates the development of transmission
infrastructure necessary to ensure reliability, encourages the
development of renewable resources, and accommodates energy
transfers within and between states;
new text end

new text begin (3) protects Minnesota ratepayers against the subsidization
of wholesale transactions through retail rates; and
new text end

new text begin (4) ensures, in the case of operational control of
transmission assets, that the state retains jurisdiction over
the transferring utility for all aspects of service under this
chapter.
new text end

new text begin (b) A transfer of operational control or ownership of
assets by a public utility under this subdivision is subject to
section 216B.50. The relationship between a public utility
transferring operational control of assets to another entity
under this subdivision is subject to the provisions of section
216B.48. If a public utility transfers ownership of its
transmission assets to a transmission provider subject to the
jurisdiction of the Federal Energy Regulatory Commission, the
Public Utilities Commission may permit the utility to file a
rate schedule providing for the automatic adjustment of charges
to recover the cost of transmission services purchased under
tariff rates approved by the Federal Energy Regulatory
Commission.
new text end

Sec. 4.

Minnesota Statutes 2004, section 216B.2421,
subdivision 2, is amended to read:

Subd. 2.

Large energy facility.

"Large energy facility"
means:

(1) any electric power generating plant or combination of
plants at a single site with a combined capacity of 50,000
kilowatts or more and transmission lines directly associated
with the plant that are necessary to interconnect the plant to
the transmission system;

(2) any high-voltage transmission line with a capacity of
200 kilovolts or more new text begin and greater than 1,500 feet in length new text end ;

(3) any high-voltage transmission line with a capacity of
100 kilovolts or more with more than ten miles of its length in
Minnesota or that crosses a state line;

(4) any pipeline greater than six inches in diameter and
having more than 50 miles of its length in Minnesota used for
the transportation of coal, crude petroleum or petroleum fuels
or oil, or their derivatives;

(5) any pipeline for transporting natural or synthetic gas
at pressures in excess of 200 pounds per square inch with more
than 50 miles of its length in Minnesota;

(6) any facility designed for or capable of storing on a
single site more than 100,000 gallons of liquefied natural gas
or synthetic gas;

(7) any underground gas storage facility requiring a permit
pursuant to section 103I.681;

(8) any nuclear fuel processing or nuclear waste storage or
disposal facility; and

(9) any facility intended to convert any material into any
other combustible fuel and having the capacity to process in
excess of 75 tons of the material per hour.

Sec. 5.

Minnesota Statutes 2004, section 216B.2425,
subdivision 2, is amended to read:

Subd. 2.

List development new text begin ; transmission projects report new text end .

(a) By November 1 of each odd-numbered year, deleted text begin each deleted text end new text begin a transmission
projects report must be submitted to the commission by each
utility, organization, or company that:
new text end

new text begin (1) is a new text end public utility, new text begin a new text end municipal utility, deleted text begin and deleted text end new text begin a
new text end cooperative electric association, deleted text begin or deleted text end the generation and
transmission organization that serves each utility or
association, deleted text begin that deleted text end new text begin or a transmission company; and
new text end

new text begin (2) new text end owns or operates electric transmission lines in
Minnesota deleted text begin shall deleted text end new text begin .
new text end

new text begin (b) The report may be submitted new text end jointly or individually
deleted text begin submit a transmission projects report deleted text end to the commission.

new text begin (c) new text end The report must:

(1) list specific present and reasonably foreseeable future
inadequacies in the transmission system in Minnesota;

(2) identify alternative means of addressing each
inadequacy listed;

(3) identify general economic, environmental, and social
issues associated with each alternative; and

(4) provide a summary of public input deleted text begin the utilities and
associations have gathered deleted text end related to the list of inadequacies
and the role of local government officials and other interested
persons in assisting to develop the list and analyze
alternatives.

deleted text begin (b) deleted text end new text begin (d) new text end To meet the requirements of this subdivision,
deleted text begin entities deleted text end new text begin reporting parties new text end may rely on available information and
analysis developed by a regional transmission organization or
any subgroup of a regional transmission organization and may
develop and include additional information as necessary.

Sec. 6.

new text begin [216B.2426] OPPORTUNITIES FOR DISTRIBUTED
GENERATION.
new text end

new text begin The commission shall ensure that opportunities for the
installation of distributed generation, as that term is defined
in section 216B.169, subdivision 1, paragraph (c), are
considered in any proceeding under section 216B.2422, 216B.2425,
or 216B.243.
new text end

Sec. 7.

Minnesota Statutes 2004, section 216B.243,
subdivision 3, is amended to read:

Subd. 3.

Showing required for construction.

No proposed
large energy facility shall be certified for construction unless
the applicant can show that demand for electricity cannot be met
more cost effectively through energy conservation and
load-management measures and unless the applicant has otherwise
justified its need. In assessing need, the commission shall
evaluate:

(1) the accuracy of the long-range energy demand forecasts
on which the necessity for the facility is based;

(2) the effect of existing or possible energy conservation
programs under sections 216C.05 to 216C.30 and this section or
other federal or state legislation on long-term energy demand;

(3) the relationship of the proposed facility to overall
state energy needs, as described in the most recent state energy
policy and conservation report prepared under section 216C.18 new text begin ,
or, in the case of a high-voltage transmission line, the
relationship of the proposed line to regional energy needs, as
presented in the transmission plan submitted under section
216B.2425 new text end ;

(4) promotional activities that may have given rise to the
demand for this facility;

(5) benefits of this facility, including its uses to
protect or enhance environmental quality, and to increase
reliability of energy supply in Minnesota and the region;

(6) possible alternatives for satisfying the energy demand
or transmission needs including but not limited to potential for
increased efficiency and upgrading of existing energy generation
and transmission facilities, load-management programs, and
distributed generation;

(7) the policies, rules, and regulations of other state and
federal agencies and local governments; deleted text begin and
deleted text end

(8) any feasible combination of energy conservation
improvements, required under section 216B.241, that can (i)
replace part or all of the energy to be provided by the proposed
facility, and (ii) compete with it economically deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) with respect to a high-voltage transmission line, the
benefits of enhanced regional reliability, access, or
deliverability to improve the robustness of the transmission
system or to lower costs to electric consumers;
new text end

new text begin (10) whether the applicant or applicants are in compliance
with applicable provisions of sections 216B.1691 and 216B.2425,
subdivision 8, and have filed or will file by a date certain an
application for certificate of need under this section or for
certification as a priority electric transmission project under
section 216B.2425 for any transmission facilities or upgrades
identified under section 216B.2425, subdivision 8;
new text end

new text begin (11) whether the applicant has made the demonstrations
required under subdivision 3a; and
new text end

new text begin (12) if the applicant is proposing a nonrenewable
generating plan, the applicant's assessment of the risk of
environmental costs and regulation on that proposed facility
over the expected useful life of the plant, including a proposed
means of allocating costs associated with that risk.
new text end

Sec. 8.

Minnesota Statutes 2004, section 216B.50,
subdivision 1, is amended to read:

Subdivision 1.

Commission approval required.

No public
utility shall sell, acquire, lease, or rent any plant as an
operating unit or system in this state for a total consideration
in excess of $100,000, or merge or consolidate with another
public utility new text begin or transmission company new text end operating in this state,
without first being authorized so to do by the commission. Upon
the filing of an application for the approval and consent of the
commission deleted text begin thereto deleted text end new text begin , new text end the commission shall investigate deleted text begin , deleted text end with or
without public hearing deleted text begin , and in case of deleted text end new text begin . The commission shall
hold new text end a public hearing, upon such notice as the commission may
require deleted text begin , and if it shall find deleted text end new text begin . If the commission finds new text end that the
proposed action is consistent with the public interest new text begin , new text end it shall
give its consent and approval by order in writing. In reaching
its determination new text begin , new text end the commission shall take into consideration
the reasonable value of the property, plant, or securities to be
acquired or disposed of, or merged and consolidated. deleted text begin The
provisions of
deleted text end

This section deleted text begin shall deleted text end new text begin does new text end not deleted text begin be construed as
applicable deleted text end new text begin apply new text end to the purchase of deleted text begin units of deleted text end property deleted text begin for
replacement or to the addition deleted text end to new text begin replace or add to new text end the plant of
the public utility by construction.

Sec. 9.

Minnesota Statutes 2004, section 216B.62, is
amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Assessing transmission companies. new text end

new text begin The
commission and department may charge transmission companies
their proportionate share of the expenses incurred in the review
and disposition of proceedings under sections 216B.2425,
216B.243, 216B.48, 216B.50, and 216B.79. A transmission company
is not liable for costs and expenses in a calendar year in
excess of the limitation on costs that may be assessed against
public utilities under subdivision 2. A transmission company
may object to and appeal bills of the commission and department
as provided in subdivision 4.
new text end

Sec. 10.

Minnesota Statutes 2004, section 216B.79, is
amended to read:

216B.79 PREVENTATIVE MAINTENANCE.

The commission may order public utilities to make adequate
infrastructure investments and undertake sufficient preventative
maintenance with regard to generation, transmission, and
distribution facilities. new text begin The commission's authority under this
section also applies to any transmission company that owns or
operates electric transmission lines in Minnesota.
new text end

Sec. 11.

new text begin [216B.82] LOCAL POWER QUALITY ZONES.
new text end

new text begin (a) Upon joint petition of a public utility as defined in
section 216B.02, subdivision 4, and any customer located within
the utility's service territory, the commission may establish a
zone within that utility's service territory where the utility
will install additional, redundant, or upgraded components of
the electric distribution infrastructure that are designed to
decrease the risk of power outages; provided, the utility and
all of its customers located within the proposed zone have
approved the installation of the components and the financial
recovery plan prior to the creation of the zone.
new text end

new text begin (b) The commission shall authorize the utility to collect
all costs of the installation of any components under this
section, including initial investment, operation, and
maintenance costs and taxes from all customers within the zone,
through tariffs and surcharges for service in a zone that
appropriately reflect the cost of service to those customers,
provided the customers agree to pay all costs for a
predetermined period, including costs of component removal, if
appropriate.
new text end

new text begin (c) Nothing in this section limits the ability of the
utility and any customer to enter into customer-specific
agreements pursuant to applicable statutory, rule, or tariff
provisions.
new text end

Sec. 12. new text begin STAKEHOLDER PROCESS AND REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin By June 15, 2005, the
Legislative Electric Energy Task Force shall convene a
stakeholder group consisting of one representative from each of
the following groups: transmission-owning investor-owned
utilities, electric cooperatives, municipal power agencies,
energy consumer advocates, business energy consumer advocates,
residential energy consumer advocates, environmental
organizations, the Minnesota Department of Commerce, the
Minnesota Environmental Quality Board, and the Minnesota Public
Utilities Commission.
new text end

new text begin Subd. 2. new text end

new text begin Charge. new text end

new text begin (a) The stakeholder group shall explore
whether increased efficiencies and effectiveness can be obtained
through modifying current state statutes and administrative
processes to certify and route high-voltage transmission lines,
including modifications to Minnesota Statutes, section 216B.243.
new text end

new text begin (b) In developing its recommendations, the stakeholder
group shall consider:
new text end

new text begin (1) whether the certification process established under
Minnesota Statutes, section 216B.2425, subdivision 3, can be
modified to encourage utilities to apply for certification under
that section;
new text end

new text begin (2) whether alternative certification processes are
feasible for different types of transmission facilities; and
new text end

new text begin (3) whether additional cooperation between state agencies
is needed to enhance the efficiency of the certification and
routing processes, and whether modifications to those processes
are appropriate.
new text end

new text begin (c) The stakeholder group shall also consider and make
recommendations regarding whether and how to provide
compensation above traditional eminent domain payments to
landowners over whose property a new transmission facility is
constructed.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By January 15, 2006, the task force
shall submit a report to the legislature summarizing the
stakeholder group findings and any recommended changes to the
certification and routing processes for high-voltage
transmission lines.
new text end

ARTICLE 2

COMMUNITY-BASED ENERGY TARIFF

Section 1.

new text begin [216B.1612] COMMUNITY-BASED ENERGY
DEVELOPMENT; TARIFF.
new text end

new text begin Subdivision 1. new text end

new text begin Tariff establishment. new text end

new text begin A tariff shall be
established to optimize local, regional, and state benefits from
wind energy development, and to facilitate development of
community-based wind energy projects throughout Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The terms used in this section
have the meanings given them in this subdivision.
new text end

new text begin (b) "C-BED tariff" or "tariff" means a community-based
energy development tariff.
new text end

new text begin (c) "Qualifying owner" means:
new text end

new text begin (1) a Minnesota resident;
new text end

new text begin (2) a limited liability corporation that is organized under
the laws of this state and that is made up of members who are
Minnesota residents;
new text end

new text begin (3) a Minnesota nonprofit organization organized under
chapter 317A;
new text end

new text begin (4) a Minnesota cooperative association organized under
chapter 308A or 308B, other than a rural electric cooperative
association or a generation and transmission cooperative;
new text end

new text begin (5) a Minnesota political subdivision or local government
other than a municipal electric utility or municipal power
agency, including, but not limited to, a county, statutory or
home rule charter city, town, school district, or public or
private higher education institution or any other local or
regional governmental organization such as a board, commission,
or association; or
new text end

new text begin (6) a tribal council.
new text end

new text begin (d) "Net present value rate" means a rate equal to the net
present value of the nominal payments to a project divided by
the total expected energy production of the project over the
life of its power purchase agreement.
new text end

new text begin (e) "Standard reliability criteria" means:
new text end

new text begin (1) can be safely integrated into and operated within the
utility's grid without causing any adverse or unsafe
consequences; and
new text end

new text begin (2) is consistent with the utility's resource needs as
identified in its most recent resource plan submitted under
section 216B.2422.
new text end

new text begin (f) "Community-based energy project" or "C-BED project"
means a new wind energy project that:
new text end

new text begin (1) has no single qualifying owner owning more than 15
percent of a C-BED project that consists of more than two
turbines; or
new text end

new text begin (2) for C-BED projects of one or two turbines, is owned
entirely by one or more qualifying owners, with at least 51
percent of the total financial benefits over the life of the
project flowing to qualifying owners; and
new text end

new text begin (3) has a resolution of support adopted by the county board
of each county in which the project is to be located, or in the
case of a project located within the boundaries of a
reservation, the tribal council for that reservation.
new text end

new text begin Subd. 3. new text end

new text begin Tariff rate. new text end

new text begin (a) The tariff described in
subdivision 4 must have a rate schedule that allows for a rate
up to a 2.7 cents per kilowatt hour net present value rate over
the 20-year life of the power purchase agreement. The tariff
must provide for a rate that is higher in the first ten years of
the power purchase agreement than in the last ten years. The
discount rate required to calculate the net present value must
be the utility's normal discount rate used for its other
business purposes.
new text end

new text begin (b) The commission shall consider mechanisms to encourage
the aggregation of C-BED projects.
new text end

new text begin (c) The commission shall require that qualifying owners
provide sufficient security to secure performance under the
power purchase agreement, and shall prohibit the transfer of the
C-BED project to a nonqualifying owner during the initial 20
years of the contract.
new text end

new text begin Subd. 4. new text end

new text begin Utilities to offer tariff. new text end

new text begin By December 1, 2005,
each public utility providing electric service at retail shall
file for commission approval a community-based energy
development tariff consistent with subdivision 3. Within 90
days of the first commission approval order under this
subdivision, each municipal power agency and generation and
transmission cooperative electric association shall adopt a
community-based energy development tariff as consistent as
possible under subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Priority for c-bed projects. new text end

new text begin (a) A utility
subject to section 216B.1691 that needs to construct new
generation, or purchase the output from new generation, as part
of its plan to satisfy its good faith objective under that
section shall take reasonable steps to determine if one or more
C-BED projects are available that meet the utility's cost and
reliability requirements, applying standard reliability
criteria, to fulfill some or all of the identified need at
minimal impact to customer rates.
new text end

new text begin Nothing in this section shall be construed to obligate a
utility to enter into a power purchase agreement under a C-BED
tariff developed under this section.
new text end

new text begin (b) Each utility shall include in its resource plan
submitted under section 216B.2422 a description of its efforts
to purchase energy from C-BED projects, including a list of the
projects under contract and the amount of C-BED energy purchased.
new text end

new text begin (c) The commission shall consider the efforts and
activities of a utility to purchase energy from C-BED projects
when evaluating its good faith effort towards meeting the
renewable energy objective under section 216B.1691.
new text end

new text begin Subd. 6. new text end

new text begin Property owner participation. new text end

new text begin To the extent
feasible, a developer of a C-BED project must provide, in
writing, an opportunity to invest in the C-BED project to each
property owner on whose property construction of a high voltage
transmission line transmitting the energy generated by the C-BED
project to market begins after June 30, 2005, and who resides in
the county where the C-BED project is located.
new text end

new text begin Subd. 7. new text end

new text begin Other c-bed tariff issues. new text end

new text begin (a) A
community-based project developer and a utility shall negotiate
the rate and power purchase agreement terms consistent with the
tariff established under subdivision 4.
new text end

new text begin (b) At the discretion of the developer, a community-based
project developer and a utility may negotiate a power purchase
agreement with terms different from the tariff established under
subdivision 4.
new text end

new text begin (c) A qualifying owner, or any combination of qualifying
owners, may develop a joint venture project with a nonqualifying
wind energy project developer. However, the terms of the C-BED
tariff may only apply to the portion of the energy production of
the total project that is directly proportional to the equity
share of the project owned by the qualifying owners.
new text end

new text begin (d) A project that is operating under a power purchase
agreement under a C-BED tariff is not eligible for net energy
billing under section 216B.164, subdivision 3, or for production
incentives under section 216C.41.
new text end

new text begin (e) A public utility must receive commission approval of a
power purchase agreement for a C-BED project that is operating
under a rate that is higher in the first ten years of the
agreement than in the last ten years. The commission shall
provide the utility's ratepayers an opportunity to address the
reasonableness of the proposed power purchase agreement.
new text end

new text begin Unless a party objects to the contract within 30 days, the
contract will be deemed approved.
new text end

Sec. 2.

Minnesota Statutes 2004, section 216B.1645,
subdivision 1, is amended to read:

Subdivision 1.

Commission authority.

Upon the petition
of a public utility, the Public Utilities Commission shall
approve or disapprove power purchase contracts, investments, or
expenditures entered into or made by the utility to satisfy the
wind and biomass mandates contained in sections 216B.169,
216B.2423, and 216B.2424, new text begin and to satisfy the renewable energy
objectives set forth in section 216B.1691, new text end including reasonable
investments and expenditures made to new text begin :
new text end

new text begin (1) new text end transmit the electricity generated from sources
developed under those sections that is ultimately used to
provide service to the utility's retail customers, deleted text begin or to
deleted text end new text begin including studies necessary to identify new transmission
facilities needed to transmit electricity to Minnesota retail
customers from generating facilities constructed to satisfy the
renewable energy objectives, provided that the costs of the
studies have not been recovered previously under existing
tariffs and the utility has filed an application for a
certificate of need for the new transmission facilities
identified in the studies; or
new text end

new text begin (2) new text end develop renewable energy sources from the account
required in section 116C.779.

Sec. 3.

Minnesota Statutes 2004, section 216B.2425, is
amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Priority transmission projects. new text end

new text begin (a) Until
January 1, 2010, transmission projects determined by the
commission to be necessary to support a utility's plan under
section 216B.1691 to meet its obligations under that section
must be certified as a priority electric transmission project,
satisfying the requirements of section 216B.243. In determining
that a proposed transmission project is necessary to support a
utility's plan under section 216B.1691, the commission must find
that the applicant has met the following factors:
new text end

new text begin (1) that the transmission facility is necessary to allow
the delivery of power from renewable sources of energy to retail
customers in Minnesota;
new text end

new text begin (2) that the applicant has signed or will sign power
purchase agreements, subject to commission approval, for
resources to meet the renewable energy objective that are
dependent upon or will use the capacity of the transmission
facility to serve retail customers in Minnesota;
new text end

new text begin (3) that the installation and commercial operation date of
the renewable resources to satisfy the renewable energy
objective will match the planned in-service date of the
transmission facility; and
new text end

new text begin (4) that the proposed transmission facility is consistent
with a least-cost solution to the utility's need for additional
electricity.
new text end

new text begin (b) This subdivision expires January 1, 2010.
new text end

Sec. 4.

Minnesota Statutes 2004, section 216B.243,
subdivision 8, is amended to read:

Subd. 8.

Exemptions.

This section does not apply to:

(1) cogeneration or small power production facilities as
defined in the Federal Power Act, United States Code, title 16,
section 796, paragraph (17), subparagraph (A), and paragraph
(18), subparagraph (A), and having a combined capacity at a
single site of less than 80,000 kilowatts deleted text begin or to deleted text end new text begin ; new text end plants or
facilities for the production of ethanol or fuel alcohol deleted text begin nor in deleted text end new text begin ;
or new text end any case where the commission deleted text begin shall determine deleted text end new text begin has determined
new text end after being advised by the attorney general that its application
has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to
distribute electricity to serve the demand of a single customer
at a single location, unless the applicant opts to request that
the commission determine need under this section or section
216B.2425;

(3) the upgrade to a higher voltage of an existing
transmission line that serves the demand of a single customer
that primarily uses existing rights-of-way, unless the applicant
opts to request that the commission determine need under this
section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less
required to connect a new or upgraded substation to an existing,
new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric
generating plant to using natural gas; deleted text begin or
deleted text end

(6) new text begin the new text end modification of an existing electric generating
plant to increase efficiency, as long as the capacity of the
plant is not increased more than ten percent or more than 100
megawatts, whichever is greater deleted text begin . deleted text end new text begin ; or
new text end

new text begin (7) a large energy facility that (i) generates electricity
from wind energy conversion systems, (ii) will serve retail
customers in Minnesota, (iii) is specifically intended to be
used to meet the renewable energy objective under section
216B.1691 or addresses a resource need identified in a current
commission-approved or commission-reviewed resource plan under
section 216B.2422, and (iv) derives at least ten percent of the
total nameplate capacity of the proposed project from one or
more C-BED projects, as defined under section 216B.1612,
subdivision 2, paragraph (f).
new text end

Sec. 5.

new text begin [216C.053] RENEWABLE ENERGY DEVELOPMENT.
new text end

new text begin The Department of Commerce shall assist utilities,
renewable energy developers, regulators, regional transmission
grid managers, and the public on issues related to renewable
energy development. The department shall work to ensure
cost-effective renewable energy development throughout the state.
new text end

Sec. 6. new text begin WIND INTEGRATION STUDY.
new text end

new text begin The Public Utilities Commission shall order all electric
utilities, as defined in Minnesota Statutes, section 216B.1691,
subdivision 1, paragraph (b), to participate in a statewide wind
integration study. Utilities subject to Minnesota Statutes,
section 216B.1691, shall jointly contract with an independent
firm selected by the reliability administrator to conduct an
engineering study of the impacts on reliability and costs
associated with increasing wind capacity to 20 percent of
Minnesota retail electric energy sales by the year 2020, and to
identify and develop options for utilities to use to manage the
intermittent nature of wind resources. The contracting
utilities shall cooperate with the firm conducting the study by
providing data requested. The reliability administrator shall
manage the study process and shall appoint a group of
stakeholders with experience in engineering and expertise in
power systems or wind energy to review the study's proposed
methods and assumptions and preliminary data. The study must be
completed by November 30, 2006. Using the study results, the
contracting utilities shall provide the commissioner of commerce
with estimates of the impact on their electric rates of
increasing wind capacity to 20 percent, assuming no reduction in
reliability. Electric utilities shall incorporate the study's
findings into their utility integrated resource plans prepared
under Minnesota Statutes, section 216B.2422. The costs of the
study are recoverable under Minnesota Statutes, section
216C.052, subdivision 2, paragraph (c), clause (2).
new text end

Sec. 7. new text begin LANDOWNER PAYMENTS WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin By June 15, 2005, the
Legislative Electric Energy Task Force shall convene a Landowner
Payments Working Group consisting of up to 12 members, including
representatives from each of the following groups:
transmission-owning investor-owned utilities, electric
cooperatives, municipal power agencies, Farm Bureau, Farmers
Union, county commissioners, real estate appraisers, and others
with an interest and expertise in landowner rights and the
market value of rural property.
new text end

new text begin Subd. 2. new text end

new text begin Appointment. new text end

new text begin The chairs of the Legislative
Electric Energy Task Force and the chairs of the senate and
house committees with primary jurisdiction over energy policy
shall jointly appoint the working group members.
new text end

new text begin Subd. 3. new text end

new text begin Charge. new text end

new text begin (a) The Landowner Payments Working
Group shall research alternative methods of remunerating
landowners on whose land high-voltage transmission lines have
been constructed.
new text end

new text begin (b) In developing its recommendations, the working group
shall:
new text end

new text begin (1) examine different methods of landowner payments that
operate in other states and countries;
new text end

new text begin (2) consider innovative alternatives to lump-sum payments
that extend payments over the life of the transmission line and
that run with the land if the land is conveyed to another owner;
and
new text end

new text begin (3) consider alternative ways of structuring payments that
are equitable to landowners and utilities.
new text end

new text begin Subd. 4. new text end

new text begin Expenses. new text end

new text begin Members of the working group must be
reimbursed for expenses as provided in Minnesota Statutes,
section 15.059, subdivision 6. Expenses of the Landowner
Payments Working Group must not exceed $10,000 without the
approval of the chairs of the Legislative Electric Energy Task
Force.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The Landowner Payments Working Group
shall present its findings and recommendations, including
legislative recommendations and model legislation, if any, in a
report to the Legislative Electric Energy Task Force by January
15, 2006.
new text end

ARTICLE 3

TRANSFER OF SITING AND ROUTING AUTHORITY
FOR LARGE ENERGY FACILITIES

Section 1.

Minnesota Statutes 2004, section 116C.52,
subdivision 2, is amended to read:

Subd. 2.

deleted text begin board deleted text end new text begin commission new text end .

deleted text begin "Board" shall mean the
Minnesota Environmental Quality Board deleted text end new text begin "Commission" means the
Public Utilities Commission new text end .

Sec. 2.

Minnesota Statutes 2004, section 116C.52,
subdivision 4, is amended to read:

Subd. 4.

High voltage transmission line.

"High voltage
transmission line" means a conductor of electric energy and
associated facilities designed for and capable of operation at a
nominal voltage of 100 kilovolts or more new text begin and is greater than
1,500 feet in length new text end .

Sec. 3.

Minnesota Statutes 2004, section 116C.53,
subdivision 2, is amended to read:

Subd. 2.

Jurisdiction.

The deleted text begin board deleted text end new text begin commission new text end is deleted text begin hereby
deleted text end given the authority to provide for site and route selection for
large electric power facilities. The deleted text begin board deleted text end new text begin commission new text end shall
issue permits for large electric power facilities in a timely
fashion deleted text begin . When the Public Utilities Commission has determined
the deleted text end new text begin and in a manner consistent with the overall determination of
new text end need for the project under section 216B.243 or 216B.2425 deleted text begin , deleted text end new text begin .
new text end Questions of need, including size, type, and timing; alternative
system configurations; and voltage deleted text begin are not within the board's
siting and routing authority and deleted text end must not be included in the
scope of environmental review conducted under sections 116C.51
to 116C.69.

Sec. 4.

Minnesota Statutes 2004, section 116C.57,
subdivision 1, is amended to read:

Subdivision 1.

Site permit.

No person may construct a
large electric generating plant without a site permit from the
deleted text begin board deleted text end new text begin commission new text end . A large electric generating plant may be
constructed only on a site approved by the deleted text begin board deleted text end new text begin commission new text end .
The deleted text begin board deleted text end new text begin commission new text end must incorporate into one proceeding the
route selection for a high voltage transmission line that is
directly associated with and necessary to interconnect the large
electric generating plant to the transmission system and whose
need is certified deleted text begin as part of the generating plant project by the
Public Utilities Commission deleted text end new text begin under section 216B.243 new text end .

Sec. 5.

Minnesota Statutes 2004, section 116C.57,
subdivision 2c, is amended to read:

Subd. 2c.

Environmental review.

The deleted text begin board deleted text end new text begin commissioner
of the Department of Commerce new text end shall prepare new text begin for the commission
new text end an environmental impact statement on each proposed large
electric generating plant or high voltage transmission line for
which a complete application has been submitted. deleted text begin For any
project that has obtained a certificate of need from the Public
Utilities Commission, the board deleted text end new text begin The commissioner new text end shall not
consider whether or not the project is needed. No other state
environmental review documents deleted text begin shall be deleted text end new text begin are new text end required. The deleted text begin board
deleted text end new text begin commissioner new text end shall study and evaluate any site or route proposed
by an applicant and any other site or route the deleted text begin board deleted text end new text begin commission
new text end deems necessary that was proposed in a manner consistent with
rules deleted text begin adopted by the board deleted text end concerning the form, content, and
timeliness of proposals for alternate sites or routes.

Sec. 6.

Minnesota Statutes 2004, section 116C.57, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Department of commerce to provide technical
expertise and other assistance. new text end

new text begin The commissioner of the
Department of Commerce shall provide technical expertise and
other assistance to the commission for activities and
proceedings under this section, sections 116C.51 to 116C.697,
and chapter 116I. This assistance shall include the sharing of
staff resources as necessary. The commissioner shall
periodically report to the commission concerning the Department
of Commerce's costs of providing assistance. The report must
conform to the schedule and include the required contents
specified by the commission. The commission shall include the
costs of the assistance in assessments for activities and
proceedings under those sections and reimburse the special
revenue fund for those costs. If either the commissioner or the
commission deems it necessary, the Department of Commerce and
the commission shall enter into an interagency agreement
establishing terms and conditions for the provision of
assistance and resources under this subdivision.
new text end

Sec. 7.

Minnesota Statutes 2004, section 116C.575,
subdivision 5, is amended to read:

Subd. 5.

Environmental review.

For the projects
identified in subdivision 2 and following these procedures, the
deleted text begin board deleted text end new text begin commissioner of the Department of Commerce new text end shall prepare
new text begin for the commission new text end an environmental assessment. The
environmental assessment shall contain information on the human
and environmental impacts of the proposed project and other
sites or routes identified by the deleted text begin board deleted text end new text begin commission new text end and shall
address mitigating measures for all of the sites or routes
considered. The environmental assessment shall be the only
state environmental review document required to be prepared on
the project.

Sec. 8.

Minnesota Statutes 2004, section 116C.577, is
amended to read:

116C.577 EMERGENCY PERMIT.

(a) Any utility whose electric power system requires the
immediate construction of a large electric power generating
plant or high voltage transmission line due to a major
unforeseen event may apply to the deleted text begin board deleted text end new text begin commission new text end for an
emergency permit deleted text begin after providing deleted text end new text begin . The application must provide
new text end notice in writing deleted text begin to the Public Utilities Commission deleted text end of the
major unforeseen event and the need for immediate construction.
The permit must be issued in a timely manner, no later than 195
days after the deleted text begin board's deleted text end new text begin commission's new text end acceptance of the
application and upon a finding by the deleted text begin board deleted text end new text begin commission new text end that (1)
a demonstrable emergency exists, (2) the emergency requires
immediate construction, and (3) adherence to the procedures and
time schedules specified in section 116C.57 would jeopardize the
utility's electric power system or would jeopardize the
utility's ability to meet the electric needs of its customers in
an orderly and timely manner.

(b) A public hearing to determine if an emergency exists
must be held within 90 days of the application. The
deleted text begin board deleted text end new text begin commission new text end , after notice and hearing, shall adopt rules
specifying the criteria for emergency certification.

Sec. 9.

Minnesota Statutes 2004, section 116C.58, is
amended to read:

116C.58 ANNUAL HEARING.

The deleted text begin board deleted text end new text begin commission new text end shall hold an annual public hearing at
a time and place prescribed by rule in order to afford
interested persons an opportunity to be heard regarding any
matters relating to the siting of large electric generating
power plants and routing of high voltage transmission lines. At
the meeting, the deleted text begin board deleted text end new text begin commission new text end shall advise the public of the
permits issued by the deleted text begin board deleted text end new text begin commission new text end in the past year.
The deleted text begin board deleted text end new text begin commission new text end shall provide at least ten days but no more
than 45 days' notice of the annual meeting by mailing notice to
those persons who have requested notice and by publication in
the EQB Monitor new text begin and the commission's weekly calendar new text end .

Sec. 10.

Minnesota Statutes 2004, section 116C.61,
subdivision 3, is amended to read:

Subd. 3.

State agency participation.

new text begin (a) new text end State agencies
authorized to issue permits required for construction or
operation of large electric power generating plants or high
voltage transmission lines shall participate during routing and
siting at public hearings and all other activities of the board
on specific site or route designations and design considerations
of the board, and shall clearly state whether the site or route
being considered for designation or permit and other design
matters under consideration for approval will be in compliance
with state agency standards, rules, or policies.

new text begin (b) An applicant for a permit under this section or under
chapter 116I shall notify the commissioner of agriculture if the
proposed project will impact cultivated agricultural land, as
defined in section 1116I.01, subdivision 4. The commissioner
may participate in any proceeding on the application, may advise
the commission as to whether to grant a permit for the project,
and may make recommendations regarding mitigating adverse
impacts to agricultural lands if the permit is granted. The
Department of Agriculture shall be the lead agency in developing
an agricultural mitigation plan required for the project.
new text end

Sec. 11.

Minnesota Statutes 2004, section 116C.69,
subdivision 2, is amended to read:

Subd. 2.

Site application fee.

Every applicant for a
site permit shall pay to the deleted text begin board deleted text end new text begin commission new text end a fee deleted text begin in an amount
equal to $500 for each $1,000,000 of production plant investment
in the proposed installation as defined in the Federal Power
Commission Uniform System of Accounts. The board shall specify
the time and manner of payment of the fee. If any single
payment requested by the board is in excess of 25 percent of the
total estimated fee, the board shall show that the excess is
reasonably necessary. The applicant shall pay within 30 days of
notification any additional fees reasonably necessary for
completion of the site evaluation and designation process by the
board. In no event shall the total fees required of the
applicant under this subdivision exceed an amount equal to 0.001
of said production plant investment ($1,000 for each $1,000,000)
deleted text end new text begin to cover the necessary and reasonable costs incurred by the
commission in acting on the permit application and carrying out
the requirements of sections 116C.51 to 116C.69. The commission
may adopt rules providing for the payment of the fee. Section
16A.1283 does not apply to establishment of this fee new text end . All money
received pursuant to this subdivision shall be deposited in a
special account. Money in the account is appropriated to
the deleted text begin board deleted text end new text begin commission new text end to pay expenses incurred in processing
applications for site permits in accordance with sections
116C.51 to 116C.69 and in the event the expenses are less than
the fee paid, to refund the excess to the applicant.

Sec. 12.

Minnesota Statutes 2004, section 116C.69,
subdivision 2a, is amended to read:

Subd. 2a.

Route application fee.

Every applicant for a
transmission line route permit shall pay to the deleted text begin board deleted text end new text begin commission
new text end a deleted text begin base fee of $35,000 plus a fee in an amount equal to $1,000
per mile length of the longest proposed route. The board shall
specify the time and manner of payment of the fee. If any
single payment requested by the board is in excess of 25 percent
of the total estimated fee, the board shall show that the excess
is reasonably necessary. In the event the actual cost of
processing an application up to the board's final decision to
designate a route exceeds the above fee schedule, the board may
assess the applicant any additional fees necessary to cover the
actual costs, not to exceed an amount equal to $500 per mile
length of the longest proposed route deleted text end new text begin fee to cover the necessary
and reasonable costs incurred by the commission in acting on the
permit application and carrying out the requirements of sections
116C.51 to 116C.69. The commission may adopt rules providing
for the payment of the fee. Section 16A.1283 does not apply to
the establishment of this fee new text end . All money received pursuant to
this subdivision shall be deposited in a special account. Money
in the account is appropriated to the deleted text begin board deleted text end new text begin commission new text end to pay
expenses incurred in processing applications for route permits
in accordance with sections 116C.51 to 116C.69 and in the event
the expenses are less than the fee paid, to refund the excess to
the applicant.

Sec. 13.

Minnesota Statutes 2004, section 216B.243,
subdivision 4, is amended to read:

Subd. 4.

Application for certificate; hearing.

Any
person proposing to construct a large energy facility shall
apply for a certificate of need deleted text begin prior to applying deleted text end new text begin and new text end for a site
or route permit under sections 116C.51 to 116C.69 or
construction of the facility. The application shall be on forms
and in a manner established by the commission. In reviewing
each application the commission shall hold at least one public
hearing pursuant to chapter 14. The public hearing shall be
held at a location and hour reasonably calculated to be
convenient for the public. An objective of the public hearing
shall be to obtain public opinion on the necessity of granting a
certificate of need new text begin and, if a joint hearing is held, a site or
route permit new text end . The commission shall designate a commission
employee whose duty shall be to facilitate citizen participation
in the hearing process. deleted text begin If deleted text end new text begin Unless new text end the commission deleted text begin and the
Environmental Quality Board determine deleted text end new text begin determines new text end that a joint
hearing on siting and need under this subdivision and section
116C.57, subdivision 2d, is new text begin not new text end feasible deleted text begin , deleted text end new text begin or new text end more efficient, deleted text begin and
may further deleted text end new text begin or otherwise not in new text end the public interest, a joint
hearing under those subdivisions deleted text begin may deleted text end new text begin shall new text end be held.

Sec. 14.

Minnesota Statutes 2004, section 216B.243,
subdivision 5, is amended to read:

Subd. 5.

Approval, denial, or modification.

Within
deleted text begin six deleted text end new text begin 12 new text end months of the submission of an application, the
commission shall approve or deny a certificate of need for the
facility. Approval or denial of the certificate shall be
accompanied by a statement of the reasons for the decision.
Issuance of the certificate may be made contingent upon
modifications required by the commission. new text begin If the commissioner
has not issued an order on the application within the 12 months
provided, the commission may extent the time period upon
receiving the consent of the parties or on its own motion, for
good cause, by issuing an order explaining the good cause
justification for extension.
new text end

Sec. 15.

Minnesota Statutes 2004, section 216B.243,
subdivision 7, is amended to read:

Subd. 7.

Participation by other agency or political
subdivision.

new text begin (a) new text end Other state agencies authorized to issue
permits for siting, construction or operation of large energy
facilities, and those state agencies authorized to participate
in matters before the commission involving utility rates and
adequacy of utility services, shall present their position
regarding need and participate in the public hearing process
prior to the issuance or denial of a certificate of need.
Issuance or denial of certificates of need shall be the sole and
exclusive prerogative of the commission and these determinations
and certificates shall be binding upon other state departments
and agencies, regional, county, and local governments and
special purpose government districts except as provided in
sections 116C.01 to 116C.08 and 116D.04, subdivision 9.

new text begin (b) An applicant for a permit under this section or under
chapter 116I shall notify the commissioner of agriculture if the
proposed project will impact cultivated agricultural land, as
defined in section 1116I.01, subdivision 4. The commissioner
may participate in any proceeding on the application, may advise
the commission as to whether to grant a permit for the project,
and may make recommendations regarding mitigating adverse
impacts to agricultural lands if the permit is granted. The
Department of Agriculture shall be the lead agency in developing
an agricultural mitigation plan required for the project.
new text end

Sec. 16.

Minnesota Statutes 2004, section 216C.052, is
amended to read:

216C.052 RELIABILITY ADMINISTRATOR.

Subdivision 1.

Responsibilities.

(a) There is
established the position of reliability administrator in the
deleted text begin Department of Commerce deleted text end new text begin Public Utilities Commission new text end . The
administrator shall act as a source of independent expertise and
a technical advisor to deleted text begin the commissioner, deleted text end the commission deleted text begin , deleted text end new text begin and new text end the
public deleted text begin , and the Legislative Electric Energy Task Force deleted text end on issues
related to the reliability of the electric system. In
conducting its work, the administrator shall new text begin provide assistance
to the commission in administering and implementing the
commission's duties under sections 116C.51 to 116C.69; sections
116C.691 to 116C.697; chapter 116I; and rules associated with
those sections. Subject to resource constraints, the
reliability administrator may also new text end :

(1) model and monitor the use and operation of the energy
infrastructure in the state, including generation facilities,
transmission lines, natural gas pipelines, and other energy
infrastructure;

(2) develop and present to the commission and parties
technical analyses of proposed infrastructure projects, and
provide technical advice to the commission;

(3) present independent, factual, expert, and technical
information on infrastructure proposals and reliability issues
at public meetings hosted by the task force, the Environmental
Quality Board, the department, or the commission.

(b) Upon request and subject to resource constraints, the
administrator shall provide technical assistance regarding
matters unrelated to applications for infrastructure
improvements to the task force, the department, or the
commission.

(c) The administrator may not advocate for any particular
outcome in a commission proceeding, but may give technical
advice to the commission as to the impact on the reliability of
the energy system of a particular project or projects. deleted text begin The
administrator must not be considered a party or a participant in
any proceeding before the commission.
deleted text end

Subd. 2.

Administrative issues.

(a) The deleted text begin commissioner
deleted text end new text begin commission new text end may select the administrator who shall serve for a
four-year term. The administrator may not have been a party or
a participant in a commission energy proceeding for at least one
year prior to selection by the deleted text begin commissioner deleted text end new text begin commission new text end .
The deleted text begin commissioner deleted text end new text begin commission new text end shall oversee and direct the work of
the administrator, annually review the expenses of the
administrator, and annually approve the budget of the
administrator. The administrator may hire staff and may
contract for technical expertise in performing duties when
existing state resources are required for other state
responsibilities or when special expertise is required. The
salary of the administrator is governed by section 15A.0815,
subdivision 2.

(b) Costs relating to a specific proceeding, analysis, or
project are not general administrative costs. For purposes of
this section, "energy utility" means public utilities,
generation and transmission cooperative electric associations,
and municipal power agencies providing natural gas or electric
service in the state.

(c) The deleted text begin Department of Commerce deleted text end new text begin commission new text end shall pay:

(1) the general administrative costs of the administrator,
not to exceed $1,000,000 in a fiscal year, and shall assess
energy utilities for those administrative costs. These costs
must be consistent with the budget approved by the deleted text begin commissioner
deleted text end new text begin commission new text end under paragraph (a). The department shall apportion
the costs among all energy utilities in proportion to their
respective gross operating revenues from sales of gas or
electric service within the state during the last calendar year,
and shall then render a bill to each utility on a regular basis;
and

(2) costs relating to a specific proceeding analysis or
project and shall render a bill to the specific energy utility
or utilities participating in the proceeding, analysis, or
project directly, either at the conclusion of a particular
proceeding, analysis, or project, or from time to time during
the course of the proceeding, analysis, or project.

(d) For purposes of administrative efficiency, the
department shall assess energy utilities and issue bills in
accordance with the billing and assessment procedures provided
in section 216B.62, to the extent that these procedures do not
conflict with this subdivision. The amount of the bills
rendered by the department under paragraph (c) must be paid by
the energy utility into an account in the special revenue fund
in the state treasury within 30 days from the date of billing
and is appropriated to the deleted text begin commissioner deleted text end new text begin commission new text end for the
purposes provided in this section. The commission shall approve
or approve as modified a rate schedule providing for the
automatic adjustment of charges to recover amounts paid by
utilities under this section. All amounts assessed under this
section are in addition to amounts appropriated to the
commission deleted text begin and the department deleted text end by other law.

Subd. 3.

Assessment and appropriation.

In addition to
the amount noted in subdivision 2, the deleted text begin commissioner deleted text end new text begin commission
new text end may assess utilities, using the mechanism specified in that
subdivision, up to an additional $500,000 annually through June
30, 2006. The amounts assessed under this subdivision are
appropriated to the deleted text begin commissioner deleted text end new text begin commission new text end , and some or all of
the amounts assessed may be transferred to the commissioner of
administration, for the purposes specified in section 16B.325
and Laws 2001, chapter 212, article 1, section 3, as needed to
implement those sections.

Subd. 4.

Expiration.

This section expires June 30,
deleted text begin 2006 deleted text end new text begin 2007 new text end .

Sec. 17. new text begin TRANSFERRING POWER PLANT SITING
RESPONSIBILITIES.
new text end

new text begin To ensure greater public participation in energy
infrastructure approval proceedings and to better integrate and
align state energy and environmental policy goals with economic
decisions involving large energy infrastructure, all
responsibilities, as defined in Minnesota Statutes, section
15.039, subdivision 1, held by the Environmental Quality Board
relating to power plant siting and routing under Minnesota
Statutes, sections 116C.51 to 116C.69; wind energy conversion
systems under Minnesota Statutes, sections 116C.691 to 116C.697;
pipelines under Minnesota Statutes, chapter 116I; and rules
associated with those sections are transferred to the Public
Utilities Commission under Minnesota Statutes, section 15.039,
except that the responsibilities of the Environmental Quality
Board under Minnesota Statutes, section 116C.83, subdivision 6,
and Minnesota Rules, parts 4400.1700, 4400.2750, and 4410.7010
to 4410.7070, are transferred to the commissioner of the
Department of Commerce. The power plan siting staff of the
Environmental Quality Board are transferred to the Department of
Commerce. The department's budget shall be adjusted to reflect
the transfer. The Department of Commerce and the Public
Utilities Commission shall perform these duties in accord with
the provisions set forth in section 116D.03.
new text end

Sec. 18. new text begin TRANSFERRING RELIABILITY ADMINISTRATOR
RESPONSIBILITIES.
new text end

new text begin All responsibilities, as defined in Minnesota Statutes
2004, section 15.039, subdivision 1, held by the Minnesota
Department of Commerce relating to the reliability administrator
under Minnesota Statutes, section 216C.052, and the staff
currently performing those duties, are transferred to the
Minnesota Public Utilities Commission under Minnesota Statutes,
section 15.039.
new text end

Sec. 19. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall change the words
"Environmental Quality Board," "board," "chair of the board,"
"chair," "board's," and similar terms, when they refer to the
Environmental Quality Board or chair of the Environmental
Quality Board, to the term "Public Utilities Commission,"
"commission," or "commission's," as appropriate, where they
appear in Minnesota Statutes, sections 13.741, subdivision 3,
116C.51 to 116C.697, and chapter 116I. The revisor shall also
make those changes in Minnesota Rules, chapters 4400, 4401, and
4415, except as specified in paragraph (b).
new text end

new text begin (b) The revisor of statutes shall change the words
"Environmental Quality Board," "board," "chair of the board,"
"chair," "board's," and similar terms, when they refer to the
Environmental Quality Board or chair of the Environmental
Quality Board, to the term "commissioner of the Department of
Commerce," "commissioner," or "commissioner's," as appropriate,
where they appear in Minnesota Statutes, section 116C.83,
subdivision 6; and Minnesota Rules, parts 4400.1700, subparts 1
to 9, 11, and 12; 4400.2750; and 4410.7010 to 4410.7070.
new text end

Sec. 20. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 18 are effective July 1, 2005.
new text end

ARTICLE 4

GAS INFRASTRUCTURE COST RECOVERY

Section 1.

new text begin [216B.1635] RECOVERY OF ELIGIBLE
INFRASTRUCTURE REPLACEMENT COSTS BY GAS UTILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Gas utility" means a
public utility as defined in section 216B.02, subdivision 4,
that furnishes natural gas service to retail customers.
new text end

new text begin (b) "Gas utility infrastructure costs" or "GUIC" means gas
utility projects that:
new text end

new text begin (1) do not serve to increase revenues by directly
connecting the infrastructure replacement to new customers;
new text end

new text begin (2) are in service but were not included in the gas
utility's rate base in its most recent general rate case; and
new text end

new text begin (3) replace or modify existing infrastructure if the
replacement or modification does not constitute a betterment,
unless the betterment is required by a political subdivision, as
evidenced by specific documentation from the government entity
requiring the replacement or modification of infrastructure.
new text end

new text begin (c) "Gas utility projects" means relocation and replacement
of natural gas facilities located in the public right-of-way
required by the construction or improvement of a highway, road,
street, public building, or other public work by or on behalf of
the United States, the state of Minnesota, or a political
subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Filing. new text end

new text begin (a) The commission may approve a gas
utility's petition for a rate schedule to recover GUIC under
this section. A gas utility may petition the commission to
recover a rate of return, income taxes on the rate of return,
incremental property taxes, plus incremental depreciation
expense associated with GUIC.
new text end

new text begin (b) The filing is subject to the following:
new text end

new text begin (1) a gas utility may submit a filing under this section no
more than once per year;
new text end

new text begin (2) a gas utility must file sufficient information to
satisfy the commission regarding the proposed GUIC or be subject
to denial by the commission. The information includes, but is
not limited to:
new text end

new text begin (i) the government entity ordering the gas utility project
and the purpose for which the project is undertaken;
new text end

new text begin (ii) the location, description, and costs associated with
the project;
new text end

new text begin (iii) a description of the costs and salvage value, if any,
associated with the existing infrastructure replaced or modified
as a result of the project;
new text end

new text begin (iv) the proposed rate design and an explanation of why the
proposed rate design is in the public interest;
new text end

new text begin (v) the magnitude and timing of any known future gas
utility projects that the utility may seek to recover under this
section;
new text end

new text begin (vi) the magnitude of GUIC in relation to the gas utility's
base revenue as approved by the commission in the gas utility's
most recent general rate case, exclusive of gas purchase costs
and transportation charges;
new text end

new text begin (vii) the magnitude of GUIC in relation to the gas
utility's capital expenditures since its most recent general
rate case;
new text end

new text begin (viii) the amount of time since the utility last filed a
general rate case and the utility's reasons for seeking recovery
outside of a general rate case; and
new text end

new text begin (ix) documentation supporting the calculation of the GUIC.
new text end

new text begin Subd. 3. new text end

new text begin Commission authority. new text end

new text begin The commission may issue
orders and adopt rules necessary to implement and administer
this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2. new text begin REPORT TO LEGISLATURE.
new text end

new text begin The Department of Commerce shall review the operation and
impact of the GUIC recovery mechanism established under
Minnesota Statutes, section 216B.1635, on ratepayers and the
utility and submit a report of its findings and recommendations
to the legislature four years after the effective date of this
section.
new text end

Sec. 3. new text begin SUNSET.
new text end

new text begin Sections 1 and 2 expire on June 30, 2015.
new text end

ARTICLE 5

MISCELLANEOUS

Section 1.

Minnesota Statutes 2004, section 216B.16,
subdivision 6d, is amended to read:

Subd. 6d.

Wind energy; property tax.

An owner of a wind
energy conversion facility which is required to pay property
taxes under section 272.02, subdivision 22, new text begin or production taxes
under section 272.029, and any related or successor provisions,
new text end or a public utility regulated by the Public Utilities Commission
which purchases the wind new text begin - new text end generated electricity may petition the
commission to include in any power purchase agreement between
the owner of the facility and the public utility the amount of
property taxes new text begin and production taxes new text end paid by the owner of the
facility. The Public Utilities Commission shall require the
public utility to amend the power purchase agreement to include
the property taxes new text begin and production taxes new text end paid by the owner of the
facility in the price paid by the utility for wind new text begin - new text end generated
electricity if the commission finds:

(1) the owner of the facility has paid the property taxes
new text begin or production taxes new text end required by this subdivision;

(2) the power purchase agreement between the public utility
and the owner does not already require the utility to pay the
amount of property taxes new text begin or production taxes new text end the owner has paid
under this subdivision new text begin , or, in the case of a power purchase
agreement entered into prior to 1997, the amount of property or
production taxes paid by the owner in any year of the power
purchase agreement exceeds the amount of such property or
production taxes included in the price paid by the utility to
the owner, as reflected in the owner's bid documents new text end ; and

(3) the commission has approved a rate schedule containing
provisions for the automatic adjustment of charges for utility
service in direct relation to the charges ordered by the
commission under section 272.02, subdivision 22 new text begin , or 272.029 new text end .

Sec. 2.

Minnesota Statutes 2004, 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 gross operating revenues in excess
of $5,000,000 from sales of 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) 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 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 that do not reduce energy
use but that increase the efficiency of the electric system may
be used to meet deleted text begin the following percentage deleted text end new text begin 50 percent new text end of the
conservation investment and spending requirements of this
subdivision deleted text begin :
deleted text end

deleted text begin (1) 2002 - 90 percent;
deleted text end

deleted text begin (2) 2003 - 80 percent;
deleted text end

deleted text begin (3) 2004 - 65 percent; and
deleted text end

deleted text begin (4) 2005 and thereafter - 50 percent deleted text end .

(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) new text begin At least new text end every deleted text begin two deleted text end new text begin four new text end years, on a schedule determined
by the commissioner, each municipality or cooperative shall file
an overview of its conservation improvement plan with the
commissioner. With this overview, the municipality or
cooperative shall also 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. Up to three percent of a
utility's conservation spending obligation under this section
may be used for program pre-evaluation, testing, and monitoring
and program evaluation. The overview and evaluation filed by a
municipality with less than 60,000,000 kilowatt hours in annual
retail sales of electric service may consist of a letter from
the governing board of the municipal utility to the department
providing the amount of annual conservation spending required of
that municipality and certifying that the required amount has
been spent on conservation programs pursuant to this subdivision.

(h) The commissioner shall also review each evaluation for
whether a portion of the money spent on residential conservation
improvement programs is devoted to programs that directly
address the needs of renters and low-income persons unless an
insufficient number of appropriate programs are available. For
the purposes of this subdivision and subdivision 2, "low-income"
means an income at or below 50 percent of the state median
income.

(i) As part of its spending for conservation improvement, a
municipality or association may contribute to the energy and
conservation account. A municipality or association may propose
to the commissioner to designate that all or a portion of funds
contributed to the account be used for research and development
projects that can best be implemented on a statewide basis. Any
amount contributed must be remitted to the commissioner by
February 1 of each year.

(j) A municipality may spend up to 50 percent of its
required spending under this section to refurbish an existing
district heating or cooling system. This paragraph expires July
1, 2007.

Sec. 3.

Minnesota Statutes 2004, section 216B.241,
subdivision 2, is amended to read:

Subd. 2.

Programs.

(a) The commissioner may require
public utilities to make investments and expenditures in energy
conservation improvements, explicitly setting forth the interest
rates, prices, and terms under which the improvements must be
offered to the customers. The required programs must cover new text begin no
more than new text end a deleted text begin two-year deleted text end new text begin four-year new text end period. Public utilities shall
file conservation improvement plans by June 1, on a schedule
determined by order of the commissioner new text begin , but at least every four
years new text end . Plans received by a public utility by June 1 must be
approved or approved as modified by the commissioner by December
1 of that same year. The commissioner shall give special
consideration and encouragement to programs that bring about
significant net savings through the use of energy-efficient
lighting. The commissioner shall evaluate the program on the
basis of cost-effectiveness and the reliability of technologies
employed. The commissioner's order must provide to the extent
practicable for a free choice, by consumers participating in the
program, of the device, method, material, or project
constituting the energy conservation improvement and for a free
choice of the seller, installer, or contractor of the energy
conservation improvement, provided that the device, method,
material, or project seller, installer, or contractor is duly
licensed, certified, approved, or qualified, including under the
residential conservation services program, where applicable.

(b) The commissioner may require a utility to make an
energy conservation improvement investment or expenditure
whenever the commissioner finds that the improvement will result
in energy savings at a total cost to the utility less than the
cost to the utility to produce or purchase an equivalent amount
of new supply of energy. The commissioner shall nevertheless
ensure that every public utility operate one or more programs
under periodic review by the department.

(c) Each public utility subject to subdivision 1a 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 section by the utility on research and
development projects that meet the definition of energy
conservation improvement in subdivision 1 and that are funded
directly by the public utility.

(d) A public utility may not spend for or invest in energy
conservation improvements that directly benefit a large electric
customer facility for which the commissioner has issued an
exemption pursuant to subdivision 1a, paragraph (b). The
commissioner shall consider and may require a utility to
undertake a program suggested by an outside source, including a
political subdivision or a nonprofit or community organization.

(e) The commissioner may, by order, establish a list of
programs that may be offered as energy conservation improvements
by a public utility, municipal utility, cooperative electric
association, or other entity providing conservation services
pursuant to this section. The list of programs may include
rebates for high-efficiency appliances, rebates or subsidies for
high-efficiency lamps, small business energy audits, and
building recommissioning. The commissioner may, by order,
change this list to add or subtract programs as the commissioner
determines is necessary to promote efficient and effective
conservation programs.

(f) The commissioner shall ensure that a portion of the
money spent on residential conservation improvement programs is
devoted to programs that directly address the needs of renters
and low-income persons, in proportion to the amount the utility
has historically spent on such programs based on the most recent
three-year average relative to the utility's total conservation
spending under this section, unless an insufficient number of
appropriate programs are available.

(g) A utility, a political subdivision, or a nonprofit or
community organization that has suggested a program, the
attorney general acting on behalf of consumers and small
business interests, or a utility customer that has suggested a
program and is not represented by the attorney general under
section 8.33 may petition the commission to modify or revoke a
department decision under this section, and the commission may
do so if it determines that the program is not cost-effective,
does not adequately address the residential conservation
improvement needs of low-income persons, has a long-range
negative effect on one or more classes of customers, or is
otherwise not in the public interest. The commission shall
reject a petition that, on its face, fails to make a reasonable
argument that a program is not in the public interest.

(h) The commissioner may order a public utility to include,
with the filing of the utility's proposed conservation
improvement plan under paragraph (a), the results of an
independent audit of the utility's conservation improvement
programs and expenditures performed by the department or an
auditor with experience in the provision of energy conservation
and energy efficiency services approved by the commissioner and
chosen by the utility. The audit must specify the energy
savings or increased efficiency in the use of energy within the
service territory of the utility that is the result of the
spending and investments. The audit must evaluate the
cost-effectiveness of the utility's conservation programs.

(i) Up to three percent of a utility's conservation
spending obligation under this section may be used for program
pre-evaluation, testing, and monitoring and program audit and
evaluation.

Sec. 4.

Minnesota Statutes 2004, section 216B.243,
subdivision 6, is amended to read:

Subd. 6.

Application fees; rules.

Any application for a
certificate of need shall be accompanied by the new text begin application new text end fee
required pursuant to this subdivision. new text begin The application fee is
to be applied toward the total costs reasonably necessary to
complete the evaluation of need for the proposed facility. new text end The
maximum new text begin application new text end fee shall be $50,000, except for an
application for an electric power generating plant as defined in
section 216B.2421, subdivision 2, clause (1), or a high-voltage
transmission line as defined in section 216B.2421, subdivision
2, clause (2), for which the maximum new text begin application new text end fee shall be
$100,000. deleted text begin The commission may require an additional fee to
recover the costs of any rehearing. The fee for a rehearing
shall not be greater than the actual cost of the rehearing or
the maximum fee specified above, whichever is less. deleted text end new text begin Costs
exceeding the application fee and reasonably necessary to
complete the evaluation of need for the proposed facility shall
be recovered from the applicant. If the applicant is a public
utility, a cooperative electric association, a generation and
transmission cooperative electric association, a municipal power
agency, a municipal electric utility, or a transmission company,
the recovery shall be made as provided under section 216B.62.
new text end The commission shall establish by rule pursuant to chapter 14
and sections 216C.05 to 216C.30 and this section, a schedule of
fees based on the output or capacity of the facility and the
difficulty of assessment of need. Money collected in this
manner shall be credited to the general fund of the state
treasury.

Sec. 5.

Minnesota Statutes 2004, section 216B.62,
subdivision 5, is amended to read:

Subd. 5.

Assessing cooperatives and municipals.

The
commission and department may charge cooperative electric
associations new text begin , generation and transmission cooperative electric
associations, municipal power agencies, new text end and municipal electric
utilities their proportionate share of the expenses incurred in
the review and disposition of resource plans, adjudication of
service area disputes, proceedings under section new text begin 216B.1691,
new text end 216B.2425, new text begin or 216B.243, new text end and the costs incurred in the
adjudication of complaints over service standards, practices,
and rates. Cooperative electric associations electing to become
subject to rate regulation by the commission pursuant to section
216B.026, subdivision 4, are also subject to this section.
Neither a cooperative electric association nor a municipal
electric utility is liable for costs and expenses in a calendar
year in excess of the limitation on costs that may be assessed
against public utilities under subdivision 2. A cooperative
electric association new text begin , generation and transmission cooperative
electric association, municipal power agency, new text end or municipal
electric utility may object to and appeal bills of the
commission and department as provided in subdivision 4.

The department shall assess cooperatives and municipalities
for the costs of alternative energy engineering activities under
section 216C.261. Each cooperative and municipality shall be
assessed in proportion that its gross operating revenues for the
sale of gas and electric service within the state for the last
calendar year bears to the total of those revenues for all
public utilities, cooperatives, and municipalities.

Sec. 6.

Minnesota Statutes 2004, section 216C.41,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this
subdivision apply to this section.

(b) "Qualified hydroelectric facility" means a
hydroelectric generating facility in this state that:

(1) is located at the site of a dam, if the dam was in
existence as of March 31, 1994; and

(2) begins generating electricity after July 1, 1994, or
generates electricity after substantial refurbishing of a
facility that begins after July 1, 2001.

(c) "Qualified wind energy conversion facility" means a
wind energy conversion system in this state that:

(1) produces two megawatts or less of electricity as
measured by nameplate rating and begins generating electricity
after December 31, 1996, and before July 1, 1999;

(2) begins generating electricity after June 30, 1999,
produces two megawatts or less of electricity as measured by
nameplate rating, and is:

(i) owned by a resident of Minnesota or an entity that is
organized under the laws of this state, is not prohibited from
owning agricultural land under section 500.24, and owns the land
where the facility is sited;

(ii) owned by a Minnesota small business as defined in
section 645.445;

(iii) owned by a Minnesota nonprofit organization;

(iv) owned by a tribal council if the facility is located
within the boundaries of the reservation;

(v) owned by a Minnesota municipal utility or a Minnesota
cooperative electric association; or

(vi) owned by a Minnesota political subdivision or local
government, including, but not limited to, a county, statutory
or home rule charter city, town, school district, or any other
local or regional governmental organization such as a board,
commission, or association; or

(3) begins generating electricity after June 30, 1999,
produces seven megawatts or less of electricity as measured by
nameplate rating, and:

(i) is owned by a cooperative organized under chapter 308A
other than a Minnesota cooperative electric association; and

(ii) all shares and membership in the cooperative are held
by an entity that is not prohibited from owning agricultural
land under section 500.24.

(d) "Qualified on-farm biogas recovery facility" means an
anaerobic digester system that:

(1) is located at the site of an agricultural
operation; new text begin and
new text end

(2) is owned by an entity that is not prohibited from
owning agricultural land under section 500.24 and that owns or
rents the land where the facility is located deleted text begin ; and
deleted text end

deleted text begin (3) begins generating electricity after July 1, 2001 deleted text end .

(e) "Anaerobic digester system" means a system of
components that processes animal waste based on the absence of
oxygen and produces gas used to generate electricity.

Sec. 7. new text begin LEGISLATIVE FINDINGS.
new text end

new text begin The legislature finds that broad participation by the
public and other interested and affected parties in proceedings
of the Minnesota Public Utilities Commission serves the public
interest. The utilization of the Internet by the commission and
the Minnesota Department of Commerce, which maintains the
commission's records, to allow electronic access to commission
documents has expanded access to the commission's proceedings.
E-filing, which will enable individuals to electronically file
documents in ongoing proceedings via the Internet and permit the
electronic retrieval of all documents filed, is an effective way
to lower the costs and increase the ease and efficiency of
participation.
new text end

Sec. 8. new text begin ESTABLISHMENT OF E-FILING SYSTEM; ACCOUNT;
APPROPRIATION.
new text end

new text begin (a) The Public Utilities Commission's e-filing account is
established. The commission shall make a onetime assessment to
regulated utilities of $315,000, which must be deposited in the
account. Each public utility, municipal utility, electric
cooperative association, and telecommunications carrier must be
assessed in proportion to its respective gross operating
revenues for retail sales of gas, electric, or
telecommunications service in the state in the last calendar
year.
new text end

new text begin (b) Revenue in the account is appropriated to the
commission for the costs associated with establishing an
e-filing system that allows documents to be filed and retrieved
via the Internet. Revenue in the account remains available
until expended.
new text end

new text begin (c) The e-filing system must be operational by September
30, 2005.
new text end

Sec. 9. new text begin STUDY; BIODIESEL FUEL FOR HOME HEATING.
new text end

new text begin (a) From the money available to the commissioner of
commerce for purposes of studies and technical assistance by the
reliability administrator under Minnesota Statutes, section
216C.052, and in conformity with the goals and directives of
Minnesota Statutes, section 16B.325, the reliability
administrator shall perform a comprehensive technical and
economic analysis of the benefits to be derived from using
biodiesel fuel as defined in Minnesota Statutes, section 239.77,
subdivision 1, or biodiesel fuel blends, as a home heating
fuel. The analysis must consider blends ranging from B2 to
B100. No more than $25,000 may be expended for the analysis.
new text end

new text begin (b) Not later than March 15, 2007, the reliability
administrator shall report the results of the study and analysis
to the appropriate standing committees of the Minnesota senate
and house of representatives.
new text end

Sec. 10. new text begin JOINT VENTURE AUTHORITY.
new text end

new text begin (a) The city of Alexandria may enter into a joint venture
or joint ventures with one, two, or three of the entities known
as Runestone Telephone Association, Runestone Electric
Association, and Gardonville Telephone Cooperative for the
purpose of providing local niche service, including Internet
services, and point-to-point transmission of digital information.
new text end

new text begin (b) For purposes of this section, with respect to the
services described in paragraph (a), the city of Alexandria and
a joint venture to which it is a party shall have the rights and
authority granted by, and be subject to, Minnesota Statutes 2001
Supplement, section 452.25, except for the provisions of that
section which relate specifically and only to electric utilities.
new text end

new text begin (c) For the purposes of this section, "local niche service"
refers to point-to-point connections between end-user locations
within a service area and any telecommunications services under
the Public Utilities Commission's jurisdiction under Minnesota
Statutes, chapter 237, that do not fall within the definition of
local service or the definition of interexchange service.
new text end

new text begin (d) If the city of Alexandria obtains authority to provide
local service or interexchange service under Minnesota Statutes,
chapter 237, it may enter into a joint venture with the entities
identified in paragraph (a) for those purposes.
new text end

[EFFECTIVE DATE; LOCAL APPROVAL.] new text begin This section is effective
as to the city of Alexandria the day after the city of
Alexandria's governing body and its chief clerical officer
timely complete compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Laws 1999, chapter 125, section 4, as amended by Laws 2002,
chapter 398, section 7, is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end