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HF 1556

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2021 04:42pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to energy; allowing municipal utilities and cooperative electric associations
to reduce their annual energy-savings goal; disallowing waste heat recovery
converted to electricity as counting toward a municipal utility's or cooperative
electric association's annual energy-savings goal; amending Minnesota Statutes
2020, section 216B.241, subdivision 1c.

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

Section 1.

Minnesota Statutes 2020, section 216B.241, subdivision 1c, is amended to read:


Subd. 1c.

Energy-saving goals.

(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.

(b) Each individual utility and association shall have an annual energy-savings goal
equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
commissioner under paragraph (d). The savings goals must be calculated based on the most
recent three-year weather-normalized average. A utility or association may elect to carry
forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar
years, except that savings from electric utility infrastructure projects allowed under paragraph
(d) may be carried forward for five years. A particular energy savings can be used only for
one year's goal.

(c) The commissioner must adopt a filing schedule that is designed to have all utilities
and associations operating under an energy-savings plan by calendar year 2010.

(d) In its energy conservation improvement plan filing, a utility or association may
request the commissioner to adjust its annual energy-savings percentage goal based on its
historical conservation investment experience, customer class makeup, load growth, a
conservation potential study, or other factors the deleted text begincommissioner determines warrantsdeleted text endnew text begin utility
or association asserts warrant
new text end an adjustment. The commissioner deleted text beginmay not approvedeleted text endnew text begin:
new text end

new text begin (1) must approve a request by a municipal utility or cooperative electric association to
adjust the utility's or association's annual energy-savings goal, unless it can be demonstrated
that the request is made in bad faith and that the requester has made no credible attempt to
meet the existing goal;
new text end

new text begin (2) may approve a request from a public utility to adjust its annual energy-savings goal;
and
new text end

new text begin (3) is prohibited from approvingnew text end a plan of a public utility that provides for an annual
energy-savings goal of less than one percent of gross annual retail energy sales from energy
conservation improvements.

A new text beginpublic new text endutility deleted text beginor associationdeleted text end may include in its energy conservation plan energy savings
from electric utility infrastructure projects approved by the commission under section
216B.1636 or waste heat recovery converted into electricity projects deleted text beginthatdeleted text endnew text begin, each of whichnew text end
may count as energy savings new text beginonly new text endin addition to a minimum energy-savings goal of at least
one percent for energy conservation improvements. Energy savings from electric utility
infrastructure projects, as defined in section 216B.1636, may be included in the energy
conservation plan of a municipal utility or cooperative electric association. Electric utility
infrastructure projects must result in increased energy efficiency greater than that which
would have occurred through normal maintenance activity.

(e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.

(f) An association or utility is not required to make energy conservation investments to
attain the energy-savings goals of this subdivision that are not cost-effective even if the
investment is necessary to attain the energy-savings goals. For the purpose of this paragraph,
in determining cost-effectiveness, the commissioner shall consider the costs and benefits
to ratepayers, the utility, participants, and society. In addition, the commissioner shall
consider the rate at which an association or municipal utility is increasing its energy savings
and its expenditures on energy conservation.

(g) On an annual basis, the commissioner shall produce and make publicly available a
report on the annual energy savings and estimated carbon dioxide reductions achieved by
the energy conservation improvement programs for the two most recent years for which
data is available. The commissioner shall report on program performance both in the
aggregate and for each entity filing an energy conservation improvement plan for approval
or review by the commissioner.

(h) By January 15, 2010, the commissioner shall report to the legislature whether the
spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.

(i) This subdivision does not apply to:

(1) a cooperative electric association with fewer than 5,000 members;

(2) a municipal utility with fewer than 1,000 retail electric customers; or

(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales
to retail natural gas customers.

new text begin EFFECTIVE DATE. new text end

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