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HF 1986

1st Division Engrossment - 91st Legislature (2019 - 2020) Posted on 04/05/2019 08:33am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to energy; establishing a budget to finance energy-related activities; creating
renewable energy grant programs; requiring reports; appropriating money;
amending Minnesota Statutes 2018, section 216B.62, subdivision 3b; proposing
coding for new law in Minnesota Statutes, chapter 216C.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginENERGY APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginDEPARTMENT OF COMMERCE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 7,258,000
new text end
new text begin $
new text end
new text begin 5,465,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 6,202,000
new text end
new text begin 4,409,000
new text end
new text begin Petroleum Tank
new text end
new text begin 1,056,000
new text end
new text begin 1,056,000
new text end

new text begin Subd. 2. new text end

new text begin Energy Resources
new text end

new text begin 6,202,000
new text end
new text begin 4,409,000
new text end

new text begin (a) $150,000 each year is to remediate
vermiculate insulation from households that
are eligible for weatherization assistance under
Minnesota Statutes, section 216C.264.
Remediation must be done in conjunction with
federal weatherization assistance program
services.
new text end

new text begin (b) $832,000 each year is for energy regulation
and planning unit staff.
new text end

new text begin (c) $525,000 the first year is for
reimbursement of litigation costs resulting
from the lawsuit filed by North Dakota over
provisions in chapter 216H.
new text end

new text begin (d) $8,000 the first year is for transfer to the
commissioner of natural resources to develop
a plan for converting brome and other
grasslands on state-owned lands to restored
prairie to provide additional carbon
sequestration. The plan must:
new text end

new text begin (1) identify lands available for conversion,
excluding tax-forfeited lands;
new text end

new text begin (2) require that the prairie restorations meet
applicable Board of Water and Soil Resources'
native vegetation establishment and
enhancement guidelines; and
new text end

new text begin (3) identify the funding and activities
necessary to achieve all initial plantings by
2030.
new text end

new text begin (e) $300,000 the first year and $300,000 the
second year are for grants to schools to install
solar energy systems on or adjacent to schools
located outside the electric retail service
territory of the public utility subject to
Minnesota Statutes, section 116C.779,
subdivision 1. In fiscal year 2022 and beyond,
the base amount is $391,000.
new text end

new text begin (f) $30,000 the first year and $29,000 the
second year are for the development of a
financial incentive to encourage utilities to
invest in energy conservation measures in
residences after achieving their 1.75 percent
energy-savings goal.
new text end

new text begin (g) $547,000 the first year is for transfer to the
Board of Regents of the University of
Minnesota to conduct a study producing
climate model projections through the rest of
this century for three-square-mile blocks
covering the entire state of Minnesota. This is
a onetime appropriation.
new text end

new text begin (h) $100,000 the first year is for a study by an
independent consultant selected through a
request for proposal process to produce a
report analyzing the potential costs and
benefits of energy storage systems, as defined
in Minnesota Statutes, section 216B.2422,
subdivision 1, in Minnesota. The study may
also include scenarios examining energy
storage systems that are not capable of being
controlled by a utility. The commissioner must
engage a broad group of Minnesota
stakeholders, including electric utilities and
others, to develop and provide information for
the report. The study must:
new text end

new text begin (1) identify and measure the different potential
costs and savings produced by energy storage
system deployment, including but not limited
to:
new text end

new text begin (i) generation, transmission, and distribution
facilities asset deferral or substitution;
new text end

new text begin (ii) impacts on ancillary services costs;
new text end

new text begin (iii) impacts on transmission and distribution
congestion;
new text end

new text begin (iv) impacts on peak power costs;
new text end

new text begin (v) impacts on emergency power supplies
during outages;
new text end

new text begin (vi) impacts on curtailment of renewable
energy generators; and
new text end

new text begin (vii) reduced greenhouse gas emissions;
new text end

new text begin (2) analyze and estimate the:
new text end

new text begin (i) costs and savings to customers that deploy
energy storage systems;
new text end

new text begin (ii) impact on the utility's ability to integrate
renewable resources;
new text end

new text begin (iii) impact on grid reliability and power
quality; and
new text end

new text begin (iv) effect on retail electric rates over the
useful life of a given energy storage system
compared to providing the same services using
other facilities or resources;
new text end

new text begin (3) consider the findings of the analysis
conducted by the Midcontinent Independent
System Operator on energy storage capacity
accreditation and participation in regional
energy markets, including updates of the
analysis; and
new text end

new text begin (4) include case studies of existing energy
storage applications currently providing the
benefits described in clauses (1) and (2).
new text end

new text begin The commissioner of commerce must submit
the study to the chairs and ranking minority
members of the senate and house of
representatives committees with jurisdiction
over energy policy and finance by December
31, 2019.
new text end

new text begin (i) $31,000 the first year and $31,000 the
second year are for grants for electric vehicle
charging stations under Minnesota Statutes,
section 216C.403. In fiscal year 2022 and
beyond, the base amount is $30,000.
new text end

new text begin Subd. 3. new text end

new text begin Petroleum Tank Release Compensation
Board
new text end

new text begin 1,056,000
new text end
new text begin 1,056,000
new text end

new text begin This appropriation is from the petroleum tank
fund.
new text end

Sec. 3. new text beginPUBLIC UTILITIES COMMISSION
new text end

new text begin $
new text end
new text begin 7,793,000
new text end
new text begin $
new text end
new text begin 7,793,000
new text end

new text begin (a) $21,000 each year is to process utility
applications to install equipment crossing a
railroad right-of-way.
new text end

new text begin (b) $300,000 each year is to enhance the
commission's decision-making capability.
new text end

ARTICLE 2

ENERGY PROGRAMS

Section 1.

Minnesota Statutes 2018, section 216B.62, subdivision 3b, is amended to read:


Subd. 3b.

Assessment for department regional and national duties.

In addition to
other assessments in subdivision 3, the department may assess up to $500,000 per fiscal
year for performing its duties under section 216A.07, subdivision 3a. The amount in this
subdivision shall be assessed to energy utilities in proportion to their respective gross
operating revenues from retail sales of gas or electric service within the state during the last
calendar year and shall be deposited into an account in the special revenue fund and is
appropriated to the commissioner of commerce for the purposes of section 216A.07,
subdivision 3a
. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative electric
associations, and municipal power agencies providing natural gas or electric service in the
state. deleted text beginThis subdivision expires June 30, 2018.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is revived and reenacted retroactively from June 29,
2018, except that the department is prohibited from making an assessment under this
subdivision to finance the performance of any duties that occurred between June 30, 2018,
and the date this section is enacted.
new text end

Sec. 2.

new text begin [216C.375] SOLAR FOR SCHOOLS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Developer" means an entity that installs a solar energy system on a school building
awarded a grant under this section.
new text end

new text begin (c) "Energy storage system" means a commercially available technology capable of:
new text end

new text begin (1) absorbing and storing electrical energy; and
new text end

new text begin (2) dispatching stored electrical energy at a later time.
new text end

new text begin (d) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
new text end

new text begin (e) "School" means a school that operates as part of an independent or special school
district.
new text end

new text begin (f) "School district" means an independent or special school district.
new text end

new text begin (g) "Solar energy system" means photovoltaic or solar thermal devices installed alone
or in combination with an energy storage system.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar for schools program is established in the
Department of Commerce. The purpose of the program is to provide grants to (1) stimulate
the installation of solar energy systems on or adjacent to school buildings by reducing the
cost of solar energy systems, and (2) enable schools to use the solar energy system as a
teaching tool that is integrated into the school's curriculum.
new text end

new text begin Subd. 3. new text end

new text begin Establishment of account. new text end

new text begin (a) A solar for schools program account is
established in the special revenue fund. Money received from the general fund must be
transferred to the commissioner of commerce and credited to the account. Money deposited
in the account remains in the account until expended and does not cancel to the general
fund.
new text end

new text begin (b) When a grant is awarded under this section, the commissioner must reserve the grant
amount in the account.
new text end

new text begin Subd. 4. new text end

new text begin Expenditures. new text end

new text begin (a) Money in the account may be used only:
new text end

new text begin (1) for grant awards made under this section; and
new text end

new text begin (2) to pay the reasonable costs incurred by the department to administer this section.
new text end

new text begin (b) Grant awards made with funds in the account must be used only for grants for solar
energy systems installed on or adjacent to school buildings receiving retail electric service
from a utility that is not subject to section 116C.779, subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Eligible system. new text end

new text begin (a) A grant may be awarded to a school under this section
only if the solar energy system that is the subject of the grant:
new text end

new text begin (1) is installed on or adjacent to the school building that consumes the electricity generated
by the solar energy system, on property within the service territory of the utility currently
providing electric service to the school building; and
new text end

new text begin (2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the
estimated annual electricity consumption of the school building where the solar energy
system is installed.
new text end

new text begin (b) A school district that receives a rebate or other financial incentive under section
216B.241 for a solar energy system and that demonstrates considerable need for financial
assistance, as determined by the commissioner, is eligible for a grant under this section for
the same solar energy system.
new text end

new text begin Subd. 6. new text end

new text begin Application process. new text end

new text begin (a) The commissioner must issue a request for proposals
to utilities, schools, and developers who wish to apply for a grant under this section on
behalf of a school.
new text end

new text begin (b) A utility or developer must submit an application to the commissioner on behalf of
a school on a form prescribed by the commissioner. The form must include, at a minimum,
the following information:
new text end

new text begin (1) the capacity of the proposed solar energy system and the amount of electricity that
is expected to be generated;
new text end

new text begin (2) the current energy demand of the school building where the solar energy generating
system is to be installed and information regarding any distributed energy resource, including
subscription to a community solar garden, that currently provides electricity to the school
building;
new text end

new text begin (3) the size of any energy storage system that is proposed to be installed as part of a
solar energy system;
new text end

new text begin (4) a description of any solar thermal devices proposed as part of the solar energy system;
new text end

new text begin (5) the total cost to purchase and install the solar energy system and its life-cycle cost,
including the cost to remove and dispose the system at the end of its life;
new text end

new text begin (6) a copy of the proposed contract agreement between the school and the public utility
or developer, including provisions addressing responsibility for maintenance of the solar
energy system;
new text end

new text begin (7) the school's plan to make the solar energy system serve as a visible learning tool for
students, teachers, and visitors to the school, including how the solar energy system may
be integrated into the school's curriculum;
new text end

new text begin (8) information that demonstrates the school district's level of need for financial assistance
available under this section;
new text end

new text begin (9) information that demonstrates the readiness of the school to implement the project,
including but not limited to the availability of the site where the solar energy system is to
be installed, and the level of the school's engagement with the utility providing electric
service to the school building where the solar energy system is to be installed on issues
relevant to the implementation of the project, including metering and other issues;
new text end

new text begin (10) with respect to the installation and operation of the solar energy system, the
willingness and ability of the developer or the public utility to:
new text end

new text begin (i) pay employees and contractors a prevailing wage rate, as defined in section 177.42,
subdivision 6; and
new text end

new text begin (ii) adhere to the provisions of section 177.43;
new text end

new text begin (11) how the developer or public utility plans to reduce the school's initial capital expense
to purchase and install the solar energy system, and to provide financial benefits to the
school from the utilization of federal and state tax credits, utility incentives, and other
financial incentives; and
new text end

new text begin (12) any other information deemed relevant by the commissioner.
new text end

new text begin (c) The commissioner must administer an open application process under this section
at least twice annually.
new text end

new text begin (d) The commissioner must develop administrative procedures governing the application
and grant award process.
new text end

new text begin Subd. 7. new text end

new text begin Energy conservation review. new text end

new text begin At the commissioner's request, a school awarded
a grant under this section must provide the commissioner information regarding energy
conservation measures implemented at the school building where the solar energy system
is to be installed. The commissioner may make recommendations to the school regarding
cost-effective conservation measures it can implement, and may provide technical assistance
and direct the school to available financial assistance programs.
new text end

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

new text begin The commissioner must provide technical assistance to
schools to develop and execute projects under this section.
new text end

new text begin Subd. 9. new text end

new text begin Grant payments. new text end

new text begin The commissioner must award a grant from the account
established under subdivision 3 to a school for the necessary costs associated with the
purchase and installation of a solar energy system. The amount of the grant must be based
on the commissioner's assessment of the school's need for financial assistance.
new text end

new text begin Subd. 10. new text end

new text begin Limitations. new text end

new text begin (a) No more than 50 percent of the grant payments awarded to
schools under this section may be awarded to schools where the proportion of students
eligible for free and reduced-price lunch under the National School Lunch Program is less
than 50 percent.
new text end

new text begin (b) No more than ten percent of the total amount of grants awarded under this section
may be awarded to schools that are part of the same school district.
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. 3.

new text begin [216C.403] ELECTRIC VEHICLE PUBLIC CHARGING STATION GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
new text end

new text begin (c) "Electric vehicle charging station" means infrastructure that recharges an electric
vehicle's batteries by connecting the electric vehicle to:
new text end

new text begin (1) a level two charger that provides a 208- or 240-volt alternating current power source;
or
new text end

new text begin (2) a DC fast charger that has an electric output of 20 kilowatts or greater.
new text end

new text begin (d) "Park-and-ride facility" has the meaning given in section 174.256, subdivision 2,
paragraph (b).
new text end

new text begin (e) "Public electric vehicle charging station" means an electric vehicle charging station
located at a publicly available parking space.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin (a) The commissioner must award grants to help fund the installation
of a network of public electric vehicle charging stations in areas located outside the retail
electric service area of the public utility subject to section 116C.779, subdivision 1, including
locations in state and regional parks, trailheads, and park-and-ride facilities. The
commissioner must issue a request for proposals to entities that have experience installing,
owning, operating, and maintaining electric vehicle charging stations. The request for
proposal must establish technical specifications that electric vehicle charging stations are
required to meet.
new text end

new text begin (b) The commissioner must consult with (1) the commissioner of natural resources to
develop optimal locations for electric vehicle charging stations in state and regional parks,
and (2) the commissioner of transportation to develop optimal locations for electric vehicle
charging stations at park-and-ride facilities.
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. 4. new text beginRESIDENTIAL ENERGY CONSERVATION FINANCIAL INCENTIVE.
new text end

new text begin (a) In addition to any financial incentive approved under Minnesota Statutes, section
216B.16, subdivision 6c, the Public Utilities Commission must approve a financial incentive
designed to encourage a public utility to continue investing in cost-effective conservation
measures that result in energy savings to residential customers after the public utility has
achieved annual energy savings for all customers equivalent to 1.75 percent of gross retail
electric energy sales or 1.2 percent of gross annual retail natural gas sales. A public utility
is eligible to receive the new incentive developed under this section if the amount of energy
savings by residential customers contributing to the 1.75 or 1.2 percent level, as applicable,
equals or exceeds the average amount residential customers saved over the most recent
three-year period, not counting any savings resulting from the new incentive developed
under this section. When reviewing and approving the incentive, the Public Utilities
Commission must ensure the effective involvement of interested parties and must apply the
criteria established in Minnesota Statutes, section 216B.16, subdivision 6c, paragraph (b).
new text end

new text begin (b) By November 1, 2019, the commissioner of commerce must develop and submit to
the Public Utilities Commission for approval a financial incentive that meets the requirements
under paragraph (a). The Public Utilities Commission may modify the financial incentive
submitted under this paragraph.
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. 5. new text beginSMALL-AREA CLIMATE MODEL PROJECTIONS FOR MINNESOTA
new text end

new text begin (a) The Board of Regents of the University of Minnesota must conduct a study that
produces climate model projections for the entire state of Minnesota, in blocks as small as
three square miles in area.
new text end

new text begin (b) At a minimum, the study must:
new text end

new text begin (1) use resources at the Minnesota Supercomputing Institute to analyze high-performing
climate models under moderate and high greenhouse gas emissions scenarios and develop
a series of projections of temperature, precipitation, snow cover, and a variety of other
climate parameters over the rest of this century;
new text end

new text begin (2) downscale the climate impact results under clause (1) to areas as small as three square
miles;
new text end

new text begin (3) develop a publicly accessible data portal website to (i) allow other universities,
nonprofit organizations, businesses, and government agencies to use the model projections,
and (ii) educate and train users how to make best use of the data;
new text end

new text begin (4) incorporate information on how to use the model results in the University of
Minnesota Extension existing online climate adaptation training; and
new text end

new text begin (5) hold at least two "train the trainer" workshops for state agencies, municipalities, and
others to educate colleagues how to use and interpret the data for climate adaptation efforts.
new text end

new text begin (c) Beginning July 1, 2020, and continuing each July 1 through 2022, the University of
Minnesota must provide a written report to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over agriculture,
energy, and environment. The report must document the progress made on the study and
study results, and must note any obstacles encountered that could prevent successful
completion of the study.
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