HF 2754

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/04/2023 11:05am

A bill for an act
relating to energy; establishing a biennial budget for Department of Commerce,
Public Utilities Commission, and energy, climate, and clean energy activities;
establishing and modifying provisions governing energy, clean and renewable
energy, energy storage, energy use and conservation, and utility regulation;
providing for enhanced transportation electrification; adding and modifying
provisions governing Public Utilities Commission proceedings; establishing various
clean and renewable energy grant programs; making technical changes; requiring
reports; appropriating money; amending Minnesota Statutes 2022, sections 16B.325;
16B.58, by adding a subdivision; 16C.135, subdivision 3; 16C.137, subdivision
1; 116C.779, subdivision 1; 116C.7792; 168.27, by adding a subdivision; 216B.096,
subdivision 11; 216B.1611, by adding a subdivision; 216B.164, by adding a
subdivision; 216B.1641; 216B.17, subdivision 1; 216B.2402, subdivision 16;
216B.2422, subdivision 7; 216B.2425, subdivision 3; 216B.243, subdivision 8, as
amended; 216B.50, subdivision 1; 216B.62, subdivision 3b; 216C.05, subdivision
2; 216C.08; 216C.09; 216C.264, subdivision 5, by adding subdivisions; 216C.375;
216E.01, subdivision 6, by adding a subdivision; 216E.03, subdivisions 1, 3, 5, as
amended, 6, 7, as amended; 216E.04, subdivision 2, as amended; 216E.05,
subdivision 2; 216E.06; 216E.07; 216E.10; 216H.02, subdivision 1; 237.55;
326B.106, subdivision 1; 515B.2-103; 515B.3-102; Laws 2005, chapter 97, article
10, section 3, as amended; proposing coding for new law in Minnesota Statutes,
chapters 16B; 116C; 123B; 216B; 216C; 500; repealing Minnesota Statutes 2022,
sections 16B.24, subdivision 13; 216B.16, subdivision 10; 216C.376.

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

ARTICLE 1

CLIMATE AND ENERGY FINANCE

Section 1. new text begin 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 "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025. If an appropriation in this act is enacted more than once in
the 2023 legislative session, the appropriation must be given effect only once.
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 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT 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 117,565,000 new text end

new text begin $ new text end

new text begin 32,790,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 116,489,000 new text end	new text begin 31,963,000 new text end
new text begin Petroleum Tank new text end	new text begin 1,076,000 new text end	new text begin 1,097,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Energy Resources new text end

new text begin 116,489,000 new text end

new text begin 31,693,000 new text end

new text begin (a) $150,000 the first year and $150,000 the
second year are to remediate vermiculite
insulation from households that are eligible
for weatherization assistance under
Minnesota's weatherization assistance program
state plan 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) $20,000,000 the first year is to provide
financial assistance to schools to purchase and
install solar energy generating systems under
Minnesota Statutes, section 216C.375. The
appropriations under this section must be
expended on schools located outside the
electric service territory of the public utility
that is subject to Minnesota Statutes, section
116C.779. This is a onetime appropriation and
is available until June 30, 2028.
new text end

new text begin (c) $1,138,000 the first year is to provide
financial assistance to schools that are state
colleges and universities to purchase and
install solar energy generating systems under
Minnesota Statutes, section 216C.375. This
appropriation must be expended on schools
located outside the electric service territory of
the public utility that is subject to Minnesota
Statutes, section 116C.779. This is a onetime
appropriation and is available until June 30,
2034.
new text end

new text begin (d) $189,000 the first year and $189,000 the
second year are for activities associated with
a utility's implementation of a natural gas
innovation plan under Minnesota Statutes,
section 216B.2427.
new text end

new text begin (e) $22,671,000 the first year and $22,672,000
the second year are to provide grants to
community action agencies and other agencies
that weatherize residences to install
preweatherization measures in residential
buildings occupied by eligible low-income
households, as provided under Minnesota
Statutes, sections 216B.2403, subdivision 5;
216B.241, subdivision 7; and 216C.264. These
appropriations are available until December
31, 2034.
new text end

new text begin Of the amount appropriated under this
paragraph:
new text end

new text begin (1) up to ten percent may be used to
supplement utility spending on
preweatherization measures as part of a
low-income conservation program; and
new text end

new text begin (2) up to ten percent may be used to:
new text end

new text begin (i) recruit and train energy auditors and
installers of weatherization services; and
new text end

new text begin (ii) provide financial incentives to contractors
and workers who install weatherization
services.
new text end

new text begin The base in fiscal year 2026 is $720,000 and
the base in fiscal year 2027 is $3,000,000.
new text end

new text begin (f) $6,239,000 the first year and $1,239,000
the second year are for the strengthen
Minnesota homes program under Minnesota
Statutes, section 65A.299, subdivision 4.
Money under this paragraph is transferred
from the general fund to the strengthen
Minnesota homes account in the special
revenue fund. The base in fiscal year 2026 is
$1,239,000 and the base in fiscal year 2027 is
$1,239,000.
new text end

new text begin (g) $10,000,000 the first year is to implement
the heat pump rebate program under
Minnesota Statutes, section 216C.46, and to
reimburse the reasonable costs incurred by the
department to administer the program. Of this
amount:
new text end

new text begin (1) $7,200,000 the first year is to award
rebates under Minnesota Statutes, section
216C.46, subdivision 4;
new text end

new text begin (2) $1,400,000 the first year is to contract with
an energy coordinator under Minnesota
Statutes, section 216C.46, subdivision 5; and
new text end

new text begin (3) $1,400,000 the first year is to conduct
contractor training and support under
Minnesota Statutes, section 216C.46,
subdivision 6.
new text end

new text begin (h) $5,000,000 the first year is to award
rebates to purchase or lease eligible electric
vehicles under Minnesota Statutes, section
216C.401. Rebates must be awarded under
this paragraph only to eligible purchasers
located outside the retail electric service area
of the public utility that is subject to
Minnesota Statutes, section 116C.779. This is
a onetime appropriation and is available until
June 30, 2026.
new text end

new text begin (i) $500,000 the first year is to award grants
under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification to
sell electric vehicles. Rebates must only be
awarded under this paragraph to eligible
dealers located outside the retail electric
service area of the public utility that is subject
to Minnesota Statutes, section 116C.779. This
is a onetime appropriation.
new text end

new text begin (j) $5,000,000 the first year is for deposit in
the solar on public buildings grant program
account under Minnesota Statutes, section
216C.377. The appropriation in this paragraph
must be used only to provide grants to public
buildings located outside the electric service
area of the electric utility subject to Minnesota
Statutes, section 116C.779. This is a onetime
appropriation and remains available until June
30, 2027.
new text end

new text begin (k) $3,000,000 the first year is for grants to
the clean energy resource teams partnerships
under Minnesota Statutes, section 216C.385,
subdivision 2, to provide additional capacity
to perform the duties specified under
Minnesota Statutes, section 216C.385,
subdivision 3. This appropriation is available
until June 30, 2030.
new text end

new text begin (l) $2,500,000 the first year and $1,000,000
the second year are to implement energy
benchmarking under Minnesota Statutes,
section 216C.331. These appropriations are
available until expended. The base in fiscal
year 2026 is $226,000 and the base in fiscal
year 2027 is $742,000.
new text end

new text begin Of the amount appropriated under this
paragraph, $750,000 the first year is to award
grants to qualifying utilities that are not
investor-owned utilities to support the
development of technology for implementing
energy benchmarking under Minnesota
Statutes, section 216C.331. This is a onetime
appropriation and is available until June 30,
2028.
new text end

new text begin (m) $3,000,000 the first year is for grants to
install on-site energy storage systems, as
defined in Minnesota Statutes, section
216B.2422, subdivision 1, paragraph (f), with
a capacity of 50 kilowatt hours or less and that
are located outside the electric service area of
the electric utility subject to Minnesota
Statutes, section 116C.779. To receive a grant
under this subdivision, an owner of the energy
storage system must be operating a solar
energy generating system at the same site as
the energy storage system or have filed an
application with a utility to interconnect a solar
energy generating system at the same site as
the energy storage system. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin (n) $164,000 each year is for activities
required under Minnesota Statutes, sections
216B.1616 and 216B.1697, to review energy
storage proposals made by utilities and to
establish a docket to develop an energy storage
peak shaving tariff.
new text end

new text begin (o) $1,000,000 the first year is to award air
ventilation pilot program grants for
assessments, testing, and equipment upgrades
in schools and for the commissioner's costs to
administer the program. This is a onetime
appropriation.
new text end

new text begin (p) $164,000 the second year is for activities
associated with a public utility's filing a
transportation electrification plan under
Minnesota Statutes, section 216B.1615. The
base in fiscal year 2026 and beyond is
$164,000.
new text end

new text begin (q) $77,000 each year is for activities
associated with appeals of consumer
complaints to the commission under
Minnesota Statutes, section 216B.172.
new text end

new text begin (r) $1,444,000 the first year and $1,621,000
the second year are to maintain the current
level of service delivery in the division of
energy resources. The base in fiscal year 2026
and beyond is $1,621,000.
new text end

new text begin (s) $7,000,000 the first year is for grants to
school districts, and transportation service
providers and electric utilities on behalf of
school districts, to purchase electric school
buses and related infrastructure. This is a
onetime appropriation and is available until
June 30, 2033. Any unencumbered money
remaining after June 30, 2033, cancels to the
general fund.
new text end

new text begin (t) $2,500,000 the first year is to award electric
panel upgrade grants under Minnesota
Statutes, section 216C.45, and to reimburse
the reasonable costs incurred by the
department to administer the program. Grants
awarded with money appropriated under this
paragraph must be awarded only to owners of
single-family homes or multifamily buildings
located outside the electric service area of the
public utility subject to Minnesota Statutes,
section 116C.779. This is a onetime
appropriation and is available until June 30,
2032. Any unexpended money remaining after
June 30, 2032, cancels to the general fund.
new text end

new text begin (u) $500,000 the first year is for a grant to the
city of Anoka for feasibility studies and
design, engineering, and environmental
analysis related to the repair and
reconstruction of the Rum River Dam.
Findings from the feasibility studies must be
incorporated into the design and engineering
funded by the appropriation under this
paragraph. This appropriation is onetime and
is available until the project is completed or
abandoned, subject to Minnesota Statutes,
section 16A.642.
new text end

new text begin The appropriation under this paragraph
includes money for the following feasibility
studies:
new text end

new text begin (1) a study to assess the feasibility of adding
a lock or other means for boats to traverse the
dam to navigate between the lower Rum River
and upper Rum River;
new text end

new text begin (2) a study to assess the feasibility of
constructing the dam in a manner that would
facilitate recreational river surfing at the dam
site; and
new text end

new text begin (3) a study to assess the feasibility of
constructing the dam in a manner to generate
hydroelectric power.
new text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin 10,331,000 new text end

new text begin $ new text end

new text begin 10,689,000 new text end

new text begin (a) $96,000 the second year is for activities
associated with a public utility's filing a
transportation electrification plan under
Minnesota Statutes, section 216B.1615. The
base in fiscal year 2026 and beyond is
$96,000.
new text end

new text begin (b) $32,000 each year is for activities
associated with determining compensation for
participants in commission proceedings under
Minnesota Statutes, section 216B.631.
new text end

new text begin (c) $236,000 the first year and $229,000 the
second year are for activities associated with
appeals of consumer complaints to the
commission under Minnesota Statutes, section
216B.172.
new text end

new text begin (d) $1,522,000 the first year and $1,791,000
the second year are to maintain the current
level of service delivery in the Public Utilities
Commission. The base in fiscal year 2026 and
beyond is $1,791,000.
new text end

new text begin (e) $227,000 each year is for activities
required under Minnesota Statutes, sections
216B.1616 and 216B.1697, to review energy
storage proposals made by utilities and to
establish a docket to develop an energy storage
peak shaving tariff.
new text end

Sec. 4. new text begin POLLUTION CONTROL AGENCY new text end

new text begin $ new text end

new text begin 2,000,000 new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $2,000,000 the first year is to award city
climate action grants to pay a contractor for
providing greenhouse gas emissions data to
grant applicants; provide technical assistance
to applicants; and administer the program. Of
this amount, 65 percent is available until
December 31, 2024. Of the 65 percent, half is
reserved for grant applicants located outside
the counties of Hennepin, Ramsey, Anoka,
Dakota, Scott, Carver, and Washington. Any
unencumbered money remaining after
December 31, 2024, are available to all
eligible applicants until December 31, 2025.
This is a onetime appropriation.
new text end

Sec. 5. new text begin HIGHER EDUCATION new text end

new text begin $ new text end

new text begin 750,000 new text end

new text begin $ new text end

new text begin -0- new text end

new text begin Of the amount appropriated in the first year
under section 2, subdivision 2, paragraph (l),
$750,000 the first year is for a grant to
Building Owners and Managers Association
Greater Minneapolis to establish partnerships
with three technical colleges and high school
career counselors with a goal of increasing the
number of building engineers across
Minnesota. This is a onetime appropriation
and is available until June 30, 2028. The grant
recipient must provide a detailed report
describing how the grant funds were used to
the chairs and ranking minority members of
the legislative committees having jurisdiction
over higher education by January 15 of each
year until 2028. The report must describe the
progress made toward the goal of increasing
the number of building engineers and
strategies used.
new text end

Sec. 6. new text begin CLIMATE INNOVATION FINANCE AUTHORITY new text end

new text begin $ new text end

new text begin 20,000,000 new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $20,000,000 the first year is for purposes of
Minnesota Statutes, section 216C.441.
new text end

Sec. 7. new text begin UNIVERSITY OF MINNESOTA new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin $1,000,000 the first year and $1,000,000 the
second year are for a program in the
University of Minnesota Extension Service
that enhances the capacity of the state's
agricultural sector, land and resource
managers, and communities to plan for and
adapt to weather extremes, including but not
limited to droughts and floods. This is a
onetime appropriation and is available until
June 30, 2030. The base in fiscal year 2026
and beyond is $1,000,000.
new text end

new text begin The appropriation under this section must be
used to support existing extension service staff
members and to hire additional staff members
for a program with broad geographic reach
throughout the state. The program must:
new text end

new text begin (1) identify, develop, implement, and evaluate
educational programs that increase the
capacity of Minnesota's agricultural sector,
land and resource managers, and communities
to be prepared for and adapt to projected
physical changes in temperature, precipitation,
and other weather parameters that affect crops,
lands, horticulture, pests, and wildlife in ways
that present challenges to the state's
agricultural sector and the communities that
depend on the agricultural sector; and
new text end

new text begin (2) communicate and interpret the latest
research on critical weather trends and the
scientific basis for critical weather trends to
further prepare extension service staff
throughout the state to educate and provide
technical assistance to the agricultural sector,
land and resource managers, and community
members at the local level regarding technical
information on water resource management,
agriculture and forestry, engineering and
infrastructure design, and emergency
management that is necessary to develop
strategies to mitigate the effects of extreme
weather change.
new text end

Sec. 8. new text begin DEPARTMENT OF ADMINISTRATION new text end

new text begin $ new text end

new text begin 1,712,000 new text end

new text begin $ new text end

new text begin 367,000 new text end

new text begin (a) $1,022,000 the first year and $367,000 the
second year are for activities regarding
environmental analysis of construction
materials under Minnesota Statutes, section
16B.312. Of the amount, $200,000 the first
year is to provide grants to assist
manufacturers to obtain environmental product
declarations for certain materials used in
public buildings. This appropriation is
available until June 30, 2030.
new text end

new text begin (b) $690,000 the first year is to develop,
oversee, and administer the sustainable
building guidelines under Minnesota Statutes,
section 16B.325, in consultation with the
commissioner of commerce and the Center
for Sustainable Building Research at the
University of Minnesota. The appropriation
under this paragraph includes money for the
commissioner of administration to contract
with the Center for Sustainable Building
Research at the University of Minnesota to
administer the guidelines. This is a onetime
appropriation.
new text end

Sec. 9. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end

new text begin 100,000 new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $100,000 the first year is for activities
associated with adopting a new energy code
for commercial buildings. The base in fiscal
year 2026 is $0 and the base in fiscal year
2027 is $100,000.
new text end

ARTICLE 2

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

Section 1. new text begin RENEWABLE DEVELOPMENT FINANCE. new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2023 regular or
special legislative session, the appropriation must be given effect only once.
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 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin $ new text end

new text begin 67,614,000 new text end

new text begin $ new text end

new text begin 18,829,000 new text end

new text begin (a) The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin (b) $100,000 the first year and $100,000 the
second year are to administer the "Made in
Minnesota" solar energy production incentive
program under Minnesota Statutes, section
216C.417. Any unspent amount remaining on
June 30, 2025, cancels to the renewable
development account.
new text end

new text begin (c) $1,000,000 the first year and $400,000 the
second year are for a grant to the University
of St. Thomas Center for Microgrid Research.
The base in fiscal year 2026 is $400,000.
new text end

new text begin The appropriations in this paragraph must be
used by the University of St. Thomas Center
for Microgrid Research to:
new text end

new text begin (1) increase the center's capacity to provide
industry partners opportunities to test
near-commercial microgrid products on a real
world scale and to multiply opportunities for
innovative research;
new text end

new text begin (2) procure advanced equipment and controls
to enable the extension of the university's
microgrid to additional buildings; and
new text end

new text begin (3) expand (i) hands-on educational
opportunities for undergraduate and graduate
electrical engineering students to increase
understanding of microgrid operations, and
(ii) partnerships with community colleges.
new text end

new text begin (d) $9,126,000 the first year and $3,329,000
the second year are to award rebates to
purchase or lease eligible electric vehicles
under Minnesota Statutes, section 216C.401.
Rebates must be awarded under this paragraph
only to eligible purchasers located within the
retail electric service area of the public utility
that is subject to Minnesota Statutes, section
116C.779. The base in fiscal year 2026 is $0.
These appropriations are available until June
30, 2026.
new text end

new text begin (e) $500,000 the first year is to award grants
under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification
from an electric vehicle manufacturer to sell
electric vehicles. Rebates must only be
awarded under this paragraph to eligible
dealers located within the retail electric service
area of the public utility that is subject to
Minnesota Statutes, section 116C.779. This is
a onetime appropriation.
new text end

new text begin (f) $7,000,000 the first year is for transfer to
the electric school bus program account to
provide grants to (1) accelerate the deployment
of electric school buses and related electric
vehicle infrastructure, and (2) to pay the
commissioner's costs to administer Minnesota
Statutes, section 216C.374. This is a onetime
appropriation and is available until June 30,
2033.
new text end

new text begin (g) $5,000,000 the first year is for deposit in
the solar on public buildings grant program
account for the grant program described in
Minnesota Statutes, section 216C.377. The
appropriation in this paragraph must be used
only to provide grants to public buildings
located within the electric service area of the
electric utility subject to Minnesota Statutes,
section 116C.779. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin (h) $2,500,000 the first year is to award grants
for upgrades to residential electric panels
under Minnesota Statutes, section 216C.45,
and pay the reasonable costs incurred by the
department to administer Minnesota Statutes,
section 216C.45. Appropriations made under
this paragraph must be used only for grants to
owners of residences that are located within
the electric service area of the public utility
that is subject to Minnesota Statutes, section
116C.779. This is a onetime appropriation and
is available until December 31, 2025.
new text end

new text begin (i) $3,000,000 the first year is to award grants
to install energy storage systems under
Minnesota Statutes, section 216C.378, and to
pay the reasonable costs incurred by the
department to administer Minnesota Statutes,
section 216C.378. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin (j) $3,000,000 in fiscal year 2024 is for deposit
in a contingency fund for disbursement to the
owner of a solar energy generating system
installed on land on the former Ford Motor
Company site in St. Paul known as Area C in
Minnesota Statutes, section 116C.7793. This
appropriation is available until five years after
the Pollution Control Agency issues a
corrective action determination regarding the
remediation of Area C. Any unexpended
money remaining in the account as of that date
cancels to the renewable development account.
new text end

new text begin (k) $5,000,000 the first year and $5,000,000
the second year are to provide grants to the
public utility that is subject to Minnesota
Statutes, section 116C.7792, to upgrade the
public utility's distribution system to allow for
the interconnection of distributed energy
resources. The base in fiscal year 2026 is $0.
new text end

new text begin (l) $250,000 in fiscal year 2024 is for grants
to the utility subject to Minnesota Statutes,
section 116C.779, to implement the small
interconnection cost-sharing program ordered
by the Public Utilities Commission on
December 19, 2022, in docket No.
E-002/M-18-714, to pay the costs of certain
distribution upgrades for customers of the
utility subject to Minnesota Statutes, section
116C.779, seeking interconnection of
distributed generation of up to a certain size.
This is a onetime appropriation.
new text end

new text begin (m) $20,000,000 the first year is to provide
financial assistance to schools to purchase and
install solar energy generating systems under
Minnesota Statutes, section 216C.375. The
appropriations under this paragraph must be
expended on schools located within the
electric service territory of the public utility
that is subject to Minnesota Statutes, section
116C.779. This is a onetime appropriation and
is available until June 30, 2028.
new text end

new text begin (n) $5,000,000 the first year and $5,000,000
the second year are to provide grants to
community action agencies and other agencies
that weatherize residences to install
preweatherization measures in residential
buildings occupied by eligible low-income
households, as provided under Minnesota
Statutes, sections 216B.2403, subdivision 5;
216B.241, subdivision 7; and 216C.264. The
appropriations under this paragraph are
available until December 31, 2034.
new text end

Sec. 3. new text begin MINNESOTA AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 4,200,000 new text end

new text begin $4,200,000 the second year is to install solar
arrays. This appropriation may be used to
replace the roof and install solar arrays on an
ice rink and a maintenance facility at the
National Sports Center in Blaine. This is a
onetime appropriation.
new text end

Sec. 4. new text begin DEPARTMENT OF ADMINISTRATION new text end

new text begin $ new text end

new text begin 780,000 new text end

new text begin $ new text end

new text begin 92,000 new text end

new text begin $690,000 the first year is to contract with the
Board of Regents of the University of
Minnesota for a grant to the Institute on the
Environment to conduct research examining
how projections of future weather trends may
exacerbate conditions, including but not
limited to drought, elevated temperatures, and
flooding, that:
new text end

new text begin (1) can be integrated into the design and
evaluation of buildings constructed by the state
of Minnesota and local units of government,
in order to:
new text end

new text begin (i) reduce energy costs by deploying
cost-effective energy efficiency measures,
innovative construction materials and
techniques, and renewable energy sources;
and
new text end

new text begin (ii) prevent and minimize damage to buildings
caused by extreme weather conditions,
including but not limited to increased
frequency of intense precipitation events and
tornadoes, flooding, and elevated
temperatures; and
new text end

new text begin (2) may weaken the ability of natural systems
to mitigate the conditions to the point where
human intervention in the form of building or
redesigning the scale and operation of
infrastructure is required to address those
conditions in order to:
new text end

new text begin (i) maintain and increase the amount and
quality of food and wood production;
new text end

new text begin (ii) reduce fire risk on forested land;
new text end

new text begin (iii) maintain and enhance water quality; and
new text end

new text begin (iv) maintain and enhance natural habitats.
new text end

new text begin The contract must provide that no later than
February 1, 2025, the director of the Institute
on the Environment or the director's designee
must submit a written report to the chairs and
ranking minority members of the legislative
committees with primary jurisdiction over
environment policy and capital investment
summarizing the findings and
recommendations of the research, including
any recommendations for policy changes or
other legislation. This is a onetime
appropriation.
new text end

Sec. 5. new text begin POLLUTION CONTROL AGENCY new text end

new text begin $ new text end

new text begin 2,000,000 new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $2,000,000 the first year is to award city
climate action grants to pay a contractor for
providing greenhouse gas emissions data to
grant applicants; provide technical assistance
to applicants; and administer the program. Of
this amount, 65 percent is available until
December 31, 2024. Of the 65 percent, half is
reserved for grant applicants located outside
the counties of Hennepin, Ramsey, Anoka,
Dakota, Scott, Carver, and Washington. Any
unencumbered money remaining after
December 31, 2024, is available to all eligible
applicants until December 31, 2025. This is a
onetime appropriation.
new text end

ARTICLE 3

ELECTRIFICATION

Section 1.

Minnesota Statutes 2022, section 16B.58, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Electric vehicle charging. new text end

new text begin A person that charges a privately owned electric
vehicle at a charging station located within the Capitol Area, as defined in section 15B.02,
must pay an electric service fee established by the commissioner.
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.

Minnesota Statutes 2022, section 16C.135, subdivision 3, is amended to read:

Subd. 3.

Vehicle purchases.

new text begin (a) new text end Consistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the enterprise fleet or for use by an agency, the commissioner
or the agency shall purchase deleted text begin a motor vehicle that is capable of being powered by cleaner
fuels, or a motor vehicle powered by electricity or by a combination of electricity and liquid
fuel, if the total life-cycle cost of ownership is less than or comparable to that of other
vehicles and if the vehicle is capable deleted text end new text begin the motor vehicle according to the following vehicle
preference order:
new text end

new text begin (1) an electric vehicle;
new text end

new text begin (2) a hybrid electric vehicle;
new text end

new text begin (3) a vehicle capable of being powered by cleaner fuels; and
new text end

new text begin (4) a vehicle powered by gasoline or diesel fuel.
new text end

new text begin (b) The commissioner may only reject a vehicle that is higher on the vehicle preference
order if:
new text end

new text begin (1) the vehicle type is incapable new text end of carrying out the purpose for which it is purchased deleted text begin . deleted text end new text begin ;
or
new text end

new text begin (2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten
percent higher than the next vehicle type on the vehicle preference order.
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.

Minnesota Statutes 2022, section 16C.137, subdivision 1, is amended to read:

Subdivision 1.

Goals and actions.

Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:

(1) ensure that all new on-road vehicles deleted text begin purchased deleted text end , excluding emergency and law
enforcement vehicles deleted text begin : deleted text end new text begin , are purchased in conformity with the vehicle preference order
established in section 16C.135, subdivision 3;
new text end

deleted text begin (i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
deleted text end

deleted text begin (ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
deleted text end

deleted text begin (iii) are powered solely by electricity;
deleted text end

(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and

(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.

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.

Minnesota Statutes 2022, section 168.27, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Dealer training; electric vehicles. new text end

new text begin (a) A new motor vehicle dealer licensed
under this chapter that operates under an agreement or franchise from a manufacturer and
sells electric vehicles must maintain at least one employee who is certified as having
completed a training course offered by a Minnesota motor vehicle dealership association
that addresses at least the following elements:
new text end

new text begin (1) fundamentals of electric vehicles;
new text end

new text begin (2) electric vehicle charging options and costs;
new text end

new text begin (3) publicly available electric vehicle incentives;
new text end

new text begin (4) projected maintenance and fueling costs for electric vehicles;
new text end

new text begin (5) reduced tailpipe emissions, including greenhouse gas emissions, produced by electric
vehicles;
new text end

new text begin (6) the impacts of Minnesota's cold climate on electric vehicle operation; and
new text end

new text begin (7) best practices to sell electric vehicles.
new text end

new text begin (b) For the purposes of this section, "electric vehicle" has the meaning given in section
169.011, subdivision 26a, paragraphs (a) and (b), clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 5.

new text begin [216B.1615] ELECTRIC VEHICLE DEPLOYMENT 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) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
new text end

new text begin (c) "Electric drive mine truck" means a truck that carries mined rock from a mine pit
for crushing operations and whose wheels are powered by electric drive motors.
new text end

new text begin (d) "Electric drive mine truck trolley system" means an electric trolley system that helps
propel an electric drive mine truck out of a mine pit.
new text end

new text begin (e) "Electric vehicle" means any device or contrivance that transports persons or property
and is capable of being powered by an electric motor drawing current from rechargeable
storage batteries, fuel cells, or other portable sources of electricity. Electric vehicle includes
but is not limited to:
new text end

new text begin (1) an electric vehicle, as defined in section 169.011, subdivision 26a;
new text end

new text begin (2) an electric-assisted bicycle, as defined in section 169.011, subdivision 27;
new text end

new text begin (3) an off-road vehicle, as defined in section 84.797, subdivision 7;
new text end

new text begin (4) a motorboat, as defined in section 86B.005, subdivision 9;
new text end

new text begin (5) an aircraft, as defined in section 360.013, subdivision 37; or
new text end

new text begin (6) an electric drive mine truck.
new text end

new text begin (f) "Electric vehicle charging station" means a physical location deploying equipment
that:
new text end

new text begin (1) transfers electricity to an electric vehicle battery;
new text end

new text begin (2) dispenses hydrogen into an electric vehicle powered by a fuel cell;
new text end

new text begin (3) exchanges electric vehicle batteries; or
new text end

new text begin (4) provides other equipment used to charge or fuel electric vehicles.
new text end

new text begin (g) "Electric vehicle infrastructure" means electric vehicle charging stations and any
associated machinery, equipment, and infrastructure necessary for a public utility to supply
electricity or hydrogen to an electric vehicle charging station and to support electric vehicle
operation. Electric vehicle infrastructure includes an electric drive mine truck trolley system.
new text end

new text begin (h) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (i) "Government entity" means the state, a state agency, or a political subdivision, as
defined in section 13.02, subdivision 11.
new text end

new text begin (j) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Transportation electrification plan; contents. new text end

new text begin (a) By June 1, 2024, and at
least every three years thereafter, a public utility must file a transportation electrification
plan with the commission that is designed to:
new text end

new text begin (1) maximize the overall benefits of electric vehicles and other electrified transportation
while minimizing overall costs; and
new text end

new text begin (2) promote the:
new text end

new text begin (i) purchase of electric vehicles by the public utility's customers; and
new text end

new text begin (ii) deployment of electric vehicle infrastructure in the public utility's service territory.
new text end

new text begin (b) A transportation electrification plan may include but is not limited to the following
elements:
new text end

new text begin (1) programs to educate and increase the awareness and benefits of electric vehicles and
electric vehicle charging equipment among individuals, electric vehicle dealers, single-family
and multifamily housing developers and property management companies, building owners
and tenants, vehicle service stations, vehicle fleet owners and managers, and other potential
users of electric vehicles;
new text end

new text begin (2) utility investments and customer incentives the utility provides and offers to support
transportation electrification across all customer classes, including but not limited to
investments and customer incentives to facilitate:
new text end

new text begin (i) the deployment of: electric vehicles for personal and commercial use; customer- and
utility-owned electric vehicle charging stations; electric vehicle infrastructure to support
light-duty, medium-duty, and heavy-duty vehicle electrification; and other electric utility
infrastructure;
new text end

new text begin (ii) widespread access to publicly available electric vehicle charging stations; and
new text end

new text begin (iii) the electrification of public transit and vehicle fleets owned or operated by a
government entity;
new text end

new text begin (3) research and demonstration projects to increase access to electricity as a transportation
fuel, minimize the system costs of electric transportation, and inform future transportation
electrification plans;
new text end

new text begin (4) rate structures or programs that encourage electric vehicle charging that optimizes
electric grid operation, including time-varying rates and charging optimization programs;
new text end

new text begin (5) programs to increase access to the benefits of electricity as a transportation fuel (i)
for low- or moderate-income customers and communities, and (ii) in neighborhoods most
affected by transportation-related air emissions; and
new text end

new text begin (6) proposals to expedite commission consideration of program adjustments requested
during the term of an approved transportation electrification plan.
new text end

new text begin (c) A transportation electrification plan must include planned upgrades to and investments
in a utility's distribution system that are necessary to accommodate future growth in
transportation electrification and support the plan's proposed programs and activities.
new text end

new text begin Subd. 3. new text end

new text begin Transportation electrification plan; review and implementation. new text end

new text begin The
commission may approve, modify, or reject a transportation electrification plan. When
reviewing a transportation electrification plan, the commission must consider whether the
programs, investments, and expenditures as a whole are reasonably expected to:
new text end

new text begin (1) improve the operation of the electric grid;
new text end

new text begin (2) increase access to the use of electricity as a transportation fuel for all customers,
including customers in low- or moderate-income communities, rural communities, and
communities most affected by emissions from the transportation sector;
new text end

new text begin (3) increase access to publicly available electric vehicle charging for all types of electric
vehicles;
new text end

new text begin (4) support the electrification of medium-duty and heavy-duty vehicles and associated
charging infrastructure;
new text end

new text begin (5) reduce statewide greenhouse gas emissions, as defined in section 216H.01, and
emissions of other air pollutants that impair the environment and public health;
new text end

new text begin (6) stimulate private capital investment and the creation of skilled jobs;
new text end

new text begin (7) educate the public about the benefits of electric vehicles and related infrastructure;
and
new text end

new text begin (8) be transparent and incorporate reasonable public reporting of program activities,
consistent with existing technology and data capabilities, to inform program design and
commission policy with respect to electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) Notwithstanding any other provision of this chapter, the
commission may approve, with respect to any prudent and reasonable investments made or
expenses incurred by a public utility to administer and implement an approved transportation
electrification plan, including expenditures on information technology systems necessary
to track activities and spending and to administer and implement transportation electrification
plan programs, and investments made in a public utility's distribution system to support
transportation electrification:
new text end

new text begin (1) a rider or other tariff mechanism to automatically adjust charges annually;
new text end

new text begin (2) performance-based incentives; or
new text end

new text begin (3) placing the investment, including (i) rebates for electric vehicle infrastructure and
electric buses, and (ii) other costs reasonably incurred to support transportation electrification,
in the public utility's rate base and allowing the public utility to earn a rate of return on the
investment at the level approved by the commission in the public utility's most recent general
rate case, unless the commission finds a different rate of return is in the public interest.
new text end

new text begin (b) Notwithstanding section 216B.16, subdivision 8, paragraph (a), clause (3), the
commission must approve recovery costs for expenses reasonably incurred by a public
utility to provide public advertisement as part of a transportation electrification plan approved
by the commission under subdivision 3.
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. 6.

new text begin [216C.374] ELECTRIC SCHOOL BUS DEPLOYMENT 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) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fully charged
electric vehicle battery.
new text end

new text begin (c) "Electric school bus" means an electric vehicle: (1) designed to carry a driver and
more than ten passengers; and (2) primarily used to transport preprimary, primary, and
secondary students.
new text end

new text begin (d) "Electric utility" means any utility that provides wholesale or retail electric service
to customers in Minnesota.
new text end

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

new text begin (f) "Electric vehicle charging station" means a physical location deploying equipment
that provides electricity to charge a battery in an electric vehicle.
new text end

new text begin (g) "Electric vehicle infrastructure" means electric vehicle charging stations and any
associated electric panels, machinery, equipment, and infrastructure necessary for an electric
utility to supply electricity to an electric vehicle charging station and to support electric
vehicle operation.
new text end

new text begin (h) "Electric vehicle service provider" means an organization that installs, maintains, or
otherwise services a battery exchange station, electric vehicle infrastructure, or electric
vehicle charging stations.
new text end

new text begin (i) "Eligible applicant" means a school district or an electric utility, electric vehicle
service provider, or transportation service provider applying for a grant under this section
on behalf of a school district.
new text end

new text begin (j) "Federal vehicle electrification grants" means grants that fund electric school buses
or electric vehicle infrastructure under the federal Infrastructure Investment and Jobs Act,
Public Law 117-58, or the Inflation Reduction Act of 2022, Public Law 117-169.
new text end

new text begin (k) "Poor air quality" means:
new text end

new text begin (1) ambient air levels that air monitoring data reveals approach or exceed state or federal
air quality standards or chronic health inhalation risk benchmarks for total suspended
particulates, particulate matter less than ten microns wide (PM-10), particulate matter less
than 2.5 microns wide (PM-2.5), sulfur dioxide, or nitrogen dioxide; or
new text end

new text begin (2) areas in which levels of asthma among children significantly exceed the statewide
average.
new text end

new text begin (l) "Prioritized school district" means:
new text end

new text begin (1) a school district listed in the Small Area Income and Poverty Estimates School
District Estimates as having 7.5 percent or more students living in poverty based on the
most recent decennial U.S. census;
new text end

new text begin (2) a school district identified with locale codes "43-Rural: Remote" and "42-Rural:
Distant" by the National Center for Education Statistics;
new text end

new text begin (3) a school district funded by the Bureau of Indian Affairs; or
new text end

new text begin (4) a school district that receives basic support payments under United States Code, title
20, section 7703(b)(1), for children who reside on Indian land.
new text end

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

new text begin (n) "School bus" has the meaning given in section 169.011, subdivision 71.
new text end

new text begin (o) "School district" means:
new text end

new text begin (1) an independent school district, as defined in section 120A.05, subdivision 10; or
new text end

new text begin (2) a special school district, as defined in section 120A.05, subdivision 14.
new text end

new text begin (p) "Transportation service provider" means a person that has a contract with a school
district to transport students to and from school.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin An electric school bus deployment program is
established in the department. The purpose of the program is to provide grants to accelerate
the deployment of electric school buses by school districts and to encourage schools to use
vehicle electrification as a teaching tool that can be 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 An electric school bus program account is established
as a separate account in the special revenue fund in the state treasury. The commissioner
shall credit to the account appropriations and transfers to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money in the account at the end of a fiscal year does not cancel to
the general fund but remains available in the account until expended. The commissioner
shall manage the account.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation; expenditures. new text end

new text begin Money in the account is appropriated to the
commissioner and must 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,
including the cost of providing technical assistance to eligible applicants, including but not
limited to grant writing assistance for applications for federal vehicle electrification grants
under subdivision 6, paragraph (c).
new text end

new text begin Subd. 5. new text end

new text begin Eligible grant expenditures. new text end

new text begin A grant awarded under this section may be used
only to pay:
new text end

new text begin (1) a school district or transportation service provider to purchase one or more electric
school buses, or convert or repower fossil-fuel-powered school buses to be powered by
electricity;
new text end

new text begin (2) up to 75 percent of the cost a school district or transportation service provider incurs
to purchase one or more electric school buses, or to convert or repower fossil-fuel-powered
school buses to be powered by electricity;
new text end

new text begin (3) for prioritized school districts, up to 95 percent of the cost a school district or
transportation service provider incurs to purchase one or more electric school buses, or to
convert or repower fossil-fuel-powered school buses to be powered by electricity;
new text end

new text begin (4) up to 75 percent of the cost of deploying, on the school district or transportation
service provider's real property, infrastructure required to operate electric school buses,
including but not limited to battery exchange stations, electric vehicle infrastructure, or
electric vehicle charging stations;
new text end

new text begin (5) for prioritized school districts, up to 95 percent of the cost of deploying, on the school
district or transportation service provider's real property, infrastructure required to operate
electric school buses, including but not limited to battery exchange stations, electric vehicle
infrastructure, or electric vehicle charging stations; and
new text end

new text begin (6) the reasonable costs of technical assistance related to electric school bus deployment
program planning and to prepare grant applications for federal vehicle electrification grants.
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 develop administrative
procedures governing the application and grant award process.
new text end

new text begin (b) The commissioner must issue a request for proposals to eligible applicants who may
wish to apply for a grant under this section on behalf of a school.
new text end

new text begin (c) An eligible applicant must submit an application for an electric school bus deployment
grant to the commissioner on a form prescribed by the commissioner. The form must require
an applicant to supply, at a minimum, the following information:
new text end

new text begin (1) the number of and a description of the electric school buses the school district or
transportation service provider intends to purchase;
new text end

new text begin (2) the total cost to purchase the electric school buses and the incremental cost, if any,
of the electric school buses when compared with fossil-fuel-powered school buses;
new text end

new text begin (3) a copy of the proposed contract agreement between the school district, the electric
utility, the electric vehicle service provider, or the transportation service provider that
includes provisions addressing responsibility for maintenance of the electric school buses
and related electric vehicle infrastructure and battery exchange stations;
new text end

new text begin (4) whether the school district is a prioritized school district;
new text end

new text begin (5) areas of the school district that serve significant numbers of students eligible for free
and reduced-price school meals, and areas that disproportionately experience poor air quality,
as measured by indicators such as the Minnesota Pollution Control Agency's air quality
monitoring network, the Minnesota Department of Health's air quality and health monitoring,
or other relevant indicators;
new text end

new text begin (6) the school district's plan to prioritize the deployment of electric school buses in areas
of the school district that:
new text end

new text begin (i) serve students eligible for free and reduced-price school meals;
new text end

new text begin (ii) experience disproportionately poor air quality; or
new text end

new text begin (iii) are located within environmental justice areas, as defined in section 216B.1691,
subdivision 1, paragraph (e);
new text end

new text begin (7) areas of the school district that are located within environmental justice areas, as
defined in section 216B.1691, subdivision 1, paragraph (e);
new text end

new text begin (8) the school district's plan, if any, to make the electric school buses serve as a visible
learning tool for students, teachers, and visitors to the school, including how vehicle
electrification may be integrated into the school district's curriculum;
new text end

new text begin (9) information that demonstrates the school district's level of need for financial assistance
available under this section;
new text end

new text begin (10) any federal vehicle electrification grants awarded to or applied for by the eligible
applicant for the same electric school buses or electric vehicle infrastructure proposed by
the eligible applicant in a grant application made under this section;
new text end

new text begin (11) information that demonstrates the school district's readiness to implement the project
and to operate the electric school buses for no less than five years;
new text end

new text begin (12) with respect to the installation and operation of the infrastructure required to operate
electric school buses, the willingness and ability of the electric vehicle service provider or
the electric 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) comply with section 177.43; and
new text end

new text begin (13) any other information deemed relevant by the commissioner.
new text end

new text begin (d) An eligible applicant may seek a technical assistance grant under this section to assist
the eligible applicant apply for federal vehicle electrification grants. An eligible applicant
seeking a technical assistance grant under this section must submit an application to the
commissioner on behalf of a school district 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 names of the federal programs to which the applicant intends to apply;
new text end

new text begin (2) a description of the technical assistance the applicants need in order to complete the
federal application; and
new text end

new text begin (3) any other information deemed relevant by the commissioner.
new text end

new text begin (e) In awarding grants under this section, the commissioner must give priority to
applications from or on behalf of prioritized school districts, and must endeavor to award
no less than 40 percent of the total amount of grants awarded under this section to prioritized
school districts.
new text end

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

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin The department must provide technical assistance to
school districts to develop and execute projects applied for or funded by grants awarded
under this section.
new text end

new text begin Subd. 8. new text end

new text begin Grant amounts. new text end

new text begin (a) In making grant awards under this section, the amount of
the grant must be based on the commissioner's assessment of the school district's need for
financial assistance.
new text end

new text begin (b) A grant awarded under this section, when combined with any federal vehicle
electrification grants obtained by an eligible applicant for the same electric school buses or
electric vehicle infrastructure as proposed by the eligible applicant in a grant application
made under this section, must not exceed the total cost of the electric school buses or electric
vehicle infrastructure funded by the grant.
new text end

new text begin Subd. 9. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2032.
new text end

new text begin Subd. 10. new text end

new text begin Reporting. new text end

new text begin Beginning January 15, 2024, and each year thereafter until January
15, 2034, the commissioner must report to the chairs and ranking minority members of the
legislative committees with jurisdiction over energy regarding:
new text end

new text begin (1) grants and amounts awarded to school districts under this section during the previous
year; and
new text end

new text begin (2) any remaining balance available in the electric school bus program account.
new text end

new text begin Subd. 11. new text end

new text begin Cost recovery. new text end

new text begin (a) A prudent and reasonable investment on electric vehicle
infrastructure installed on a school district's real property that is made by a public utility
may be placed in the public utility's rate base and earn a rate of return determined by the
commission.
new text end

new text begin (b) Notwithstanding any other provision of this chapter, the commission may approve
a tariff mechanism to automatically adjust annual charges for prudent and reasonable
investments made by a public utility on electric vehicle infrastructure installed on a school
district's real property.
new text end

Sec. 7.

new text begin [216C.401] ELECTRIC VEHICLE REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 216C.402, the
terms in this subdivision have the meanings given.
new text end

new text begin (b) "Dealer" means a person, firm, or corporation that:
new text end

new text begin (1) possesses a new motor vehicle license under chapter 168;
new text end

new text begin (2) regularly engages in the business of manufacturing or selling, purchasing, and
generally dealing in new and unused motor vehicles;
new text end

new text begin (3) has an established place of business to sell, trade, and display new and unused motor
vehicles; and
new text end

new text begin (4) possesses new and unused motor vehicles to sell or trade the motor vehicles.
new text end

new text begin (c) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a,
paragraphs (a) and (b), clause (3).
new text end

new text begin (d) "Eligible new electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (a).
new text end

new text begin (e) "Eligible used electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (b).
new text end

new text begin (f) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership transferred other than the right to use the vehicle for a term of at least 24
months.
new text end

new text begin (g) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
new text end

new text begin (h) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
new text end

new text begin Subd. 2. new text end

new text begin Eligible vehicle. new text end

new text begin (a) A new electric vehicle is eligible for a rebate under this
section if the electric vehicle:
new text end

new text begin (1) has not been previously owned;
new text end

new text begin (2) is used by a dealer as a floor model or test drive vehicle and has not been previously
registered in Minnesota or any other state;
new text end

new text begin (3) is returned to a dealer by a purchaser or lessee:
new text end

new text begin (i) within two weeks of purchase or leasing or when a purchaser's or lessee's financing
for the electric vehicle has been disapproved; or
new text end

new text begin (ii) before the purchaser or lessee takes delivery, even if the electric vehicle is registered
in Minnesota;
new text end

new text begin (4) has not been modified from the original manufacturer's specifications;
new text end

new text begin (5) has a base manufacturer's suggested retail price that does not exceed $55,000;
new text end

new text begin (6) is purchased or leased from a dealer or directly from an original equipment
manufacturer that does not have licensed franchised dealers in Minnesota; and
new text end

new text begin (7) is purchased or leased after the effective date of this act for use by the purchaser and
not for resale.
new text end

new text begin (b) A used electric vehicle is eligible for an electric vehicle rebate under this section if
the electric vehicle has previously been owned in Minnesota or another state and has not
been modified from the original manufacturer's specifications.
new text end

new text begin Subd. 3. new text end

new text begin Eligible purchaser or lessee. new text end

new text begin A person who purchases or leases an eligible
new or used electric vehicle is eligible for a rebate under this section if the purchaser or
lessee:
new text end

new text begin (1) is one of the following:
new text end

new text begin (i) a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a),
when the electric vehicle is purchased or leased;
new text end

new text begin (ii) a business that has a valid address in Minnesota from which business is conducted;
new text end

new text begin (iii) a nonprofit corporation incorporated under chapter 317A; or
new text end

new text begin (iv) a political subdivision of the state;
new text end

new text begin (2) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from the state of Minnesota; and
new text end

new text begin (3) registers the electric vehicle in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin (a) A $2,500 rebate may be issued under this section to an
eligible purchaser to purchase or lease an eligible new electric vehicle.
new text end

new text begin (b) A $500 rebate may be issued under this section to an eligible purchaser or lessee of
an eligible used electric vehicle.
new text end

new text begin (c) A purchaser or lessee whose household income at the time the eligible electric vehicle
is purchased or leased is less than 150 percent of the current federal poverty guidelines
established by the United States Department of Health and Human Services is eligible for
a rebate of $500 to purchase or lease an eligible new electric vehicle and $100 to purchase
or lease an eligible used electric vehicle. The rebate under this paragraph is in addition to
the rebate under paragraph (a) or (b), as applicable.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin The number of rebates allowed under this section is limited to:
new text end

new text begin (1) no more than one rebate per resident per household; and
new text end

new text begin (2) no more than one rebate per business entity per year.
new text end

new text begin Subd. 6. new text end

new text begin Program administration. new text end

new text begin (a) A rebate application under this section must be
filed with the commissioner on a form developed by the commissioner.
new text end

new text begin (b) The commissioner must develop administrative procedures governing the application
and rebate award process. Applications must be reviewed and rebates awarded by the
commissioner on a first-come, first-served basis.
new text end

new text begin (c) The commissioner must, in coordination with dealers and other state agencies as
applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or
lessee at the point of sale so that the rebate amount may be subtracted from the selling price
of the eligible electric vehicle.
new text end

new text begin (d) The commissioner may reduce the rebate amounts provided under subdivision 4 or
restrict program eligibility based on the availability of money to award rebates or other
factors.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2027.
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. 8.

new text begin [216C.402] GRANT PROGRAM; MANUFACTURERS' CERTIFICATION
OF AUTO DEALERS TO SELL ELECTRIC VEHICLES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established in the department to
award grants to dealers to offset the costs of obtaining the necessary training and equipment
that is required by electric vehicle manufacturers in order to certify a dealer to sell electric
vehicles produced by the manufacturer.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to reimburse:
new text end

new text begin (1) a dealer for the reasonable costs to obtain training and certification for the dealer's
employees from the electric vehicle manufacturer that awarded the franchise to the dealer;
new text end

new text begin (2) a dealer for the reasonable costs to purchase and install equipment to service and
repair electric vehicles, as required by the electric vehicle manufacturer that awarded the
franchise to the dealer; and
new text end

new text begin (3) the department for the reasonable costs to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A grant awarded under this section to a single dealer must not
exceed $40,000.
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. 9.

new text begin [216C.45] RESIDENTIAL ELECTRIC PANEL UPGRADE 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) "Area median income" means the median income of the geographic area in which a
single-family or multifamily building whose owner is applying for a grant under this section
is located, as reported by the United States Department of Housing and Urban Development.
new text end

new text begin (c) "Automatic overcurrent protection device" means a device that protects against excess
current by interrupting the flow of current.
new text end

new text begin (d) "Bus" means a metallic strip or bar that carries current.
new text end

new text begin (e) "Electric panel" means an enclosed box or cabinet containing a building's electric
panels, including subpanels, that consists of buses, automatic overcurrent protection devices,
and equipment, with or without switches to control light, heat, and power circuits. Electric
panel includes a smart panel.
new text end

new text begin (f) "Electrical work" has the meaning given in section 326B.31, subdivision 17.
new text end

new text begin (g) "Eligible applicant" means:
new text end

new text begin (1) an owner of a single-family building whose occupants have an annual household
income no greater than 150 percent of the area median income; or
new text end

new text begin (2) an owner of a multifamily building in which at least 50 percent of the units are
occupied by households whose annual income is no greater than 150 percent of the area
median income.
new text end

new text begin (h) "Multifamily building" means a building containing two or more units.
new text end

new text begin (i) "Smart panel" means an electrical panel that may be electronically programmed to
manage electricity use in a building automatically.
new text end

new text begin (j) "Unit" means a residential living space in a multifamily building occupied by an
individual or a household.
new text end

new text begin (k) "Upgrade" means:
new text end

new text begin (1) for a single-family residence:
new text end

new text begin (i) the installation of equipment, devices, and wiring necessary to increase an electrical
panel's capacity to a total rating:
new text end

new text begin (A) of not less than 200 amperes; or
new text end

new text begin (B) that allows all the building's energy needs to be provided solely by electricity, as
calculated using the National Electrical Code adopted in Minnesota; or
new text end

new text begin (ii) the installation of a smart panel with or without additional equipment, devices, or
wiring; and
new text end

new text begin (2) for a multifamily building, the installation of equipment, devices, and wiring necessary
to increase the capacity of an electric panel, including feeder panels, to a total rating that
allows all the building's energy needs to be provided solely by electricity, as calculated
using the National Electrical Code adopted in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Program establishment. new text end

new text begin A residential electric panel upgrade grant program
is established in the department to provide financial assistance to owners of single-family
residences and multifamily buildings to upgrade residential electric panels.
new text end

new text begin Subd. 3. new text end

new text begin Application process. new text end

new text begin An applicant seeking a grant under this section must
submit an application to the commissioner on a form developed by the commissioner. The
commissioner must develop administrative procedures to govern the application and grant
award process. The commissioner may contract with a third party to conduct some or all of
the program's operations.
new text end

new text begin Subd. 4. new text end

new text begin Grant awards. new text end

new text begin A grant may be awarded under this section to:
new text end

new text begin (1) an eligible applicant; or
new text end

new text begin (2) with the written permission of an eligible applicant submitted to the commissioner,
a contractor performing an upgrade or a third party on behalf of the eligible applicant.
new text end

new text begin Subd. 5. new text end

new text begin Grant amount. new text end

new text begin (a) Subject to the limits of paragraphs (b) to (e), a grant awarded
under this section may be used to pay 100 percent of the equipment and installation costs
of an upgrade.
new text end

new text begin (b) The commissioner may not award a grant to an eligible applicant under this section
which, in combination with a federal grant awarded to the eligible applicant under the federal
Inflation Reduction Act of 2022, Public Law 117-189, for the same electric panel upgrade,
exceeds 100 percent of the equipment and installation costs of the upgrade.
new text end

new text begin (c) The maximum grant amount under this section that may be awarded to an eligible
applicant who owns a single-family residence is:
new text end

new text begin (1) $3,000 for an owner whose annual household income is less than 80 percent of area
median income; and
new text end

new text begin (2) $2,000 for an owner whose annual household income exceeds 80 percent but is not
greater than 150 percent of area median income.
new text end

new text begin (d) The maximum grant amount that may be awarded under this section to an eligible
applicant who owns a multifamily building is the sum of $5,000, plus $500 multiplied by
the number of units containing a separate electric panel receiving an upgrade in the
multifamily building, not to exceed $50,000 per multifamily building.
new text end

new text begin (e) The commissioner may approve a grant amount that exceeds the maximum grant
amount in paragraph (c) or (d), up to 100 percent of the equipment and installation costs of
the upgrade, if the commissioner determines that a larger grant amount is necessary in order
to complete the upgrade.
new text end

new text begin Subd. 6. new text end

new text begin Limitation. new text end

new text begin No more than one grant may be awarded to an owner under this
section for work conducted at the same single-family residence or multifamily building.
new text end

new text begin Subd. 7. new text end

new text begin Outreach. new text end

new text begin The department must publicize the availability of grants under this
section to, at a minimum:
new text end

new text begin (1) income-eligible households;
new text end

new text begin (2) community action agencies and other public and private nonprofit organizations that
provide weatherization and other energy services to income-eligible households; and
new text end

new text begin (3) multifamily property owners and property managers.
new text end

new text begin Subd. 8. new text end

new text begin Contractor or subcontractor requirements. new text end

new text begin Contractors and subcontractors
performing electrical work under a grant awarded under this section:
new text end

new text begin (1) must comply with the provisions of sections 326B.31 to 326B.399;
new text end

new text begin (2) must certify that the electrical work is performed by a licensed journeyworker
electrician or a registered unlicensed individual under the direct supervision of a licensed
journeyworker electrician or master electrician employed by the same licensed electrical
contractor; and
new text end

new text begin (3) must pay workers the prevailing wage rate, as defined in section 177.42, and are
subject to the requirements and enforcement provisions in sections 177.27, 177.30, 177.32,
177.41 to 177.435, and 177.45.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin Beginning January 1, 2025, and each January 1 through 2033, the
department must submit a report to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over climate and energy policy describing the activities
and expenditures under the program established in this section. The report must include, at
a minimum:
new text end

new text begin (1) the number of units in multifamily buildings and the number of single-family
residences whose owners received grants;
new text end

new text begin (2) the geographic distribution of grant recipients; and
new text end

new text begin (3) the average amount of grants awarded per building in multifamily buildings and in
single-family residences.
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. 10. new text begin TRANSPORTATION ELECTRIFICATION FACILITY UPGRADES;
TARIFF FILING.
new text end

new text begin No later than November 1, 2023, each public utility must file with the Public Utilities
Commission revised tariffs for charges related to the extension, enlargement, or other
modifications to the public utility's distribution system that are necessary to support
transportation electrification.
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. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 16B.24, subdivision 13, new text end new text begin is repealed.
new text end

ARTICLE 4

ENERGY CONSERVATION AND STORAGE

Section 1.

Minnesota Statutes 2022, section 16B.325, is amended to read:

16B.325 SUSTAINABLE BUILDING GUIDELINES.

Subdivision 1.

Development of sustainable building guidelines.

The Department of
Administration and the Department of Commerce, with the assistance of other agencies,
shall develop sustainable building design guidelines for all new state buildings by January
15, 2003, and for all major renovations of state buildings by February 1, 2009. deleted text begin The primary
objectives of these guidelines are to ensure that all new state buildings, and major renovations
of state buildings, initially exceed the state energy code, as established in Minnesota Rules,
chapter 7676, by at least 30 percent.
deleted text end

new text begin Subd. 1a. 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) "Capital project" or "project" means the acquisition or betterment of buildings or
other fixed assets and other improvements of a capital nature.
new text end

new text begin (c) "CSBR" means the Center for Sustainable Building Research at the University of
Minnesota.
new text end

new text begin (d) "Guidelines" means the sustainable building design guidelines developed under this
section.
new text end

new text begin (e) "Major renovation" means a project that:
new text end

new text begin (1) has a renovated area that is at least 10,000 square feet; or
new text end

new text begin (2) includes, at a minimum, the replacement of the mechanical, ventilation, or cooling
system of a building or a section of a building.
new text end

new text begin (f) "New building" means a newly constructed structure and additions to existing buildings
that meet both of the following criteria:
new text end

new text begin (1) the addition is heated, whether or not the addition's source of energy is from an
adjacent building or district heating system; and
new text end

new text begin (2) the addition is cooled, whether or not the addition's source of energy is from an
adjacent building or district cooling system.
new text end

new text begin (g) "State agency" means a state agency that is appropriated money from the bond
proceeds fund or general fund for a project that is subject to the guidelines under this section.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Lowest possible cost; energy conservation. deleted text end

deleted text begin The guidelines must focus on
achieving the lowest possible lifetime cost for new buildings and major renovations, and
allow for changes in the guidelines that encourage continual energy conservation
improvements in new buildings and major renovations. The guidelines shall define "major
renovations" for purposes of this section. The definition may not allow "major renovations"
to encompass less than 10,000 square feet or to encompass less than the replacement of the
mechanical, ventilation, or cooling system of the building or a section of the building. The
design guidelines must establish sustainability guidelines that include air quality and lighting
standards and that create and maintain a healthy environment and facilitate productivity
improvements; specify ways to reduce material costs; and must consider the long-term
operating costs of the building, including the use of renewable energy sources and distributed
electric energy generation that uses a renewable source or natural gas or a fuel that is as
clean or cleaner than natural gas.
deleted text end

new text begin Subd. 2a. new text end

new text begin Guidelines; purpose. new text end

new text begin (a) The primary objectives of the guidelines are to:
new text end

new text begin (1) reduce energy consumption and statewide greenhouse gas emissions, as defined in
section 216H.01, subdivision 2;
new text end

new text begin (2) improve the quality of the environment;
new text end

new text begin (3) achieve the lowest possible lifetime cost for new buildings and major renovations;
and
new text end

new text begin (4) encourage design of resilient buildings to adapt to and accommodate projected
climate-related changes that are reflected in both acute events and chronic trends, including
but not limited to changes in temperature and precipitation levels.
new text end

new text begin (b) The guidelines must consider the following to meet the objectives in paragraph (a):
new text end

new text begin (1) the health, well-being, and productivity of building occupants;
new text end

new text begin (2) material costs and sustainability;
new text end

new text begin (3) construction and operating costs;
new text end

new text begin (4) the use of renewable energy sources;
new text end

new text begin (5) water usage;
new text end

new text begin (6) diversion of waste from landfills;
new text end

new text begin (7) air quality and lighting standards;
new text end

new text begin (8) site design; and
new text end

new text begin (9) any other factors the commissioner deems relevant.
new text end

new text begin (c) The guidelines may be revised to encourage continual energy conservation
improvements in new buildings and major renovations.
new text end

Subd. 3.

Development of guidelines; applicability.

new text begin (a) new text end In developing the guidelines,
the departments shall use an open process, including providing the opportunity for public
comment. The guidelines established under this section are mandatory for all new buildings
receiving funding from the bond proceeds fund after January 1, 2004, and for all major
renovations receiving funding from the bond proceeds fund after January 1, 2009. new text begin The
guidelines are also mandatory for all new buildings and major renovations receiving funding
from the general fund after January 1, 2023.
new text end

new text begin (b) The guidelines do not apply to projects that have:
new text end

new text begin (1) already completed design at the time money is received from the bond proceeds fund
or general fund; and
new text end

new text begin (2) not received an appropriation from the bond proceeds fund before January 1, 2023.
new text end

deleted text begin Subd. 4. deleted text end

deleted text begin Guideline revisions. deleted text end

deleted text begin The commissioners of administration and commerce shall
review the guidelines periodically and as soon as practicable revise the guidelines to
incorporate performance standards developed under section 216B.241, subdivision 9.
deleted text end

new text begin Subd. 4a. new text end

new text begin Guidelines; annual review. new text end

new text begin On or before February 1, 2024, and each year
thereafter, the commissioner of administration must review and amend the guidelines to
better meet the goals under subdivision 6. The review must be conducted with the
commissioner of commerce and in consultation with other stakeholders.
new text end

new text begin Subd. 5. new text end

new text begin Guideline administration and oversight. new text end

new text begin (a) The commissioner of
administration, in consultation with the commissioner of commerce, shall contract with
CSBR to administer the guidelines. At a minimum, CSBR must:
new text end

new text begin (1) offer training on an annual basis to state agencies, project team members, and other
entities involved in designing projects subject to the guidelines on how projects may meet
the guideline requirements;
new text end

new text begin (2) develop procedures for compliance with the guidelines, in accordance with the criteria
under subdivision 7;
new text end

new text begin (3) periodically conduct postconstruction performance evaluations on projects to evaluate
the effectiveness of the guidelines in meeting the goals under subdivision 6;
new text end

new text begin (4) determine whether project designs comply with the guidelines;
new text end

new text begin (5) administer a tracking system for all projects subject to the guidelines;
new text end

new text begin (6) develop measurable goals for the guidelines based in accordance with subdivision
6;
new text end

new text begin (7) offer technical assistance to state agencies, project team members, and other entities
with responsibility for managing and designing projects subject to the guidelines;
new text end

new text begin (8) provide a report on or before December 1 annually to the commissioner of
administration on the following:
new text end

new text begin (i) the current status of all projects subject to the guidelines and the projects' compliance
with the guidelines; and
new text end

new text begin (ii) an analysis of the effects of the guidelines on the goals under subdivision 6; and
new text end

new text begin (9) perform any other duties required by the commissioner of administration to administer
the guidelines.
new text end

new text begin (b) State agencies, project team members, and other entities that are responsible for
managing or designing projects subject to the guidelines must provide any compliance data
requested by CSBR that CSBR deems necessary to fulfill the duties described under this
subdivision.
new text end

new text begin (c) The commissioner of administration is responsible for ensuring that the oversight
duties under this subdivision are fulfilled.
new text end

new text begin Subd. 6. new text end

new text begin Measurable goals. new text end

new text begin CSBR, in collaboration with the commissioner of
administration and the commissioner of commerce, must develop measurable goals for the
guidelines based on the objectives and considerations described in subdivision 2a. The
commissioner of administration must provide final approval of the goals under this
subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Procedures. new text end

new text begin (a) The commissioner of administration must develop procedures
to administer the guidelines. The commissioner of administration may delegate guideline
administration responsibilities to state agencies. The procedures under this subdivision must
specify the administrative activities for which state agencies are responsible.
new text end

new text begin (b) The procedures must include:
new text end

new text begin (1) criteria to identify whether a project is subject to the guidelines;
new text end

new text begin (2) information on project team member roles and guideline administration requirements
for each role;
new text end

new text begin (3) a process to notify projects subject to the guidelines of the guideline requirements;
new text end

new text begin (4) a guideline-related data submission process coordinated by the commissioner of
administration;
new text end

new text begin (5) activities and a timeline to monitor project compliance with the guidelines; and
new text end

new text begin (6) record-keeping requirements and related retention schedules for materials related to
guideline compliance.
new text end

new text begin Subd. 8. new text end

new text begin Guidelines waivers. new text end

new text begin (a) The commissioner of administration, in consultation
with the commissioner of commerce and other stakeholders, must develop a process to
review and approve waivers to the guidelines.
new text end

new text begin (b) A waiver under this subdivision is only permitted due to technological limitations
or when the project's intended use conflicts with the guidelines.
new text end

new text begin (c) A waiver request for a project owned by a state agency must be reviewed and approved
by the commissioner of administration. If the waiver request is for a project owned by the
Department of Administration, the waiver request must be approved by the commissioner
of management and budget.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin The commissioner of administration must report to the legislature by
February 1 of each year. The report must include:
new text end

new text begin (1) information on the current status of all projects subject to the guidelines and the
projects' compliance with the guidelines;
new text end

new text begin (2) an analysis of the effects of the guidelines on the measurable goals under subdivision
6; and
new text end

new text begin (3) any other information the commissioner of administration deems relevant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 216B.1611, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Distributed generation capacity; treatment. new text end

new text begin (a) No later than November 1,
2023, the commission must issue an order clarifying that for the purpose of interconnecting
an on-site customer-owned distributed generation facility, the capacity of the facility must
be measured and expressed as:
new text end

new text begin (1) export capacity rather than nameplate capacity; and
new text end

new text begin (2) alternating current capacity.
new text end

new text begin (b) For the purposes of this subdivision, "export capacity" means a distributed generation
facility's nameplate capacity net of any limitations on the amount of power the distributed
generating facility is capable of exporting to a utility's distribution system resulting from
physical equipment that is part of or connected to the generating facility, including but not
limited to an inverter, relay, or energy storage system, as defined in section 216B.2422,
subdivision 1, paragraph (f), as reported to the utility by the owner of the distributed
generation facility.
new text end

new text begin (c) The owner of a distributed generation facility interconnected to a utility's distribution
system may not increase the export capacity of the distributed generation facility beyond
the level that was first interconnected to the utility's distribution system without the utility's
written approval. The utility must respond in writing to an owner's notice of intent to increase
export capacity within 90 days of the date the notice of interest is received, and may reject
the request only upon determining that approving the request would reduce safety or the
reliability of electric service.
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 [216B.1616] ENERGY STORAGE; PEAK SHAVING TARIFF.
new text end

new text begin (a) No later than September 15, 2023, the commission must initiate a docket designed
to result in a commission order requiring public utilities providing electric service to file a
tariff with the commission, based on guidelines established in the order, to compensate
customer-owners of on-site energy storage systems, as defined in section 216B.2422,
subdivision 1, paragraph (f), for the discharge of stored energy that is net input to the utility
during periods of peak electricity demand by utility customers.
new text end

new text begin (b) Within 90 days of the date the commission issues an order under this subdivision,
each public utility must file with the commission for commission approval, disapproval, or
modification a tariff that is consistent with the order.
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 begin [216B.1697] ENERGY STORAGE SYSTEMS; DEPLOYMENT TARGETS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "energy storage system" has
the meaning given in section 216B.2422, subdivision 1.
new text end

new text begin Subd. 2. new text end

new text begin Deployment targets. new text end

new text begin (a) Each utility required to file a resource plan under
section 216B.2422 must deploy energy storage systems of a capacity determined by the
commission under paragraph (b). No later than December 31, 2033, the aggregate statewide
capacity of energy storage systems deployed by all utilities subject to this section must be
at least 3,000 megawatts.
new text end

new text begin (b) No later than October 1, 2023, the commission must issue an order specifying the
amount of energy storage capacity required of each utility subject to this section in order
to meet the statewide capacity target and schedule in paragraph (a). The amount of energy
storage capacity required of an individual utility must be calculated by dividing each utility's
total electric retail sales to Minnesota customers in 2022 by total electric retail sales to
Minnesota customers in 2022 of all utilities subject to this section, and multiplying that
quotient by 3,000 megawatts. The commission may establish interim energy storage capacity
targets that utilities are required to meet before the 2033 target date.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) A utility must file an application with the commission prior
to installing each proposed energy storage system. Each application must contain:
new text end

new text begin (1) the energy storage system's technical specifications, including but not limited to:
new text end

new text begin (i) the maximum amount of electric output that the energy storage system can provide;
new text end

new text begin (ii) the length of time the energy storage system can sustain maximum output;
new text end

new text begin (iii) the location of the project within the utility's distribution system and a description
of the analysis conducted to determine the location;
new text end

new text begin (iv) a description of the utility's electric system needs that the proposed energy storage
system addresses;
new text end

new text begin (v) a description of the types of services the energy storage system is expected to provide;
and
new text end

new text begin (vi) a description of the technology required to construct, operate, and maintain the
energy storage system, including any data or communication system necessary to operate
the energy storage system;
new text end

new text begin (2) the estimated cost of the project, including:
new text end

new text begin (i) capital costs;
new text end

new text begin (ii) the estimated cost per unit of energy delivered by the energy storage system; and
new text end

new text begin (iii) an evaluation of the cost-effectiveness of the energy storage system;
new text end

new text begin (3) the estimated benefits of the energy storage system to the utility's electric system,
including but not limited to:
new text end

new text begin (i) deferred investments in generation, transmission, or distribution capacity;
new text end

new text begin (ii) reduced need for electricity during times of peak demand;
new text end

new text begin (iii) improved reliability of the utility's transmission or distribution system; and
new text end

new text begin (iv) improved integration of the utility's renewable energy resources;
new text end

new text begin (4) a description indicating how the addition of an energy storage system complements
the utility's proposed actions described in the most recent integrated resource plan submitted
under section 216B.2422 to meet expected demand with the least expensive combination
of resources; and
new text end

new text begin (5) any additional information required by the commission.
new text end

new text begin (b) A utility must include in the application an evaluation of the potential to store energy
throughout the utility's electric system and must identify geographic areas in the utility's
service area where the deployment of energy storage systems has the greatest potential to
achieve the economic benefits identified in paragraph (a), clause (3).
new text end

new text begin Subd. 4. new text end

new text begin Commission review. new text end

new text begin The commission must review each proposal submitted
under this section and may approve, reject, or modify the proposal. The commission must
approve a proposal the commission determines: (1) is in the public interest; and (2) reasonably
balances the value derived from the deployment of an energy storage system for ratepayers
and the utility's operations with the cost to procure, construct, operate, and maintain the
energy storage system.
new text end

new text begin Subd. 5. new text end

new text begin Cost recovery. new text end

new text begin A public utility may recover from ratepayers all costs prudently
incurred by the public utility to deploy an energy storage system approved by the commission
under this section, net of any revenues generated by the operation of the energy storage
system.
new text end

new text begin Subd. 6. new text end

new text begin Reporting; compliance. new text end

new text begin The commission must establish reporting procedures
for utilities that are sufficient in content and frequency to keep the commission informed
regarding compliance with this section.
new text end

new text begin Subd. 7. new text end

new text begin Commission authority; orders. new text end

new text begin The commission may issue orders and conduct
proceedings 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. 5.

Minnesota Statutes 2022, section 216B.2402, subdivision 16, is amended to read:

Subd. 16.

Low-income household.

"Low-income household" means a household whose
household income new text begin :
new text end

new text begin (1) new text end is deleted text begin 60 deleted text end new text begin 80 new text end percent or less of the deleted text begin state deleted text end new text begin area new text end median household income deleted text begin . deleted text end new text begin for the geographic
area in which the low-income household is located, as calculated by the United States
Department of Housing and Urban Development; or
new text end

new text begin (2) meets the income eligibility standards, as determined by the commissioner, required
for a household to receive financial assistance from a federal, state, municipal, or utility
program administered or approved by the department.
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. 6.

Minnesota Statutes 2022, section 216B.2422, subdivision 7, is amended to read:

Subd. 7.

Energy storage systems assessment.

(a) Each deleted text begin public deleted text end utility required to file a
resource plan under subdivision 2 must new text begin incorporate in the utility's resource planning the
energy storage targets the utility is required to meet under section 216B.1697 and must
new text end include in the filing an assessment of energy storage systems that analyzes how the
deployment of energy storage systems contributes to:

(1) meeting identified generation and capacity needs; deleted text begin and
deleted text end

new text begin (2) the factors identified in section 216B.1697, subdivision 3, paragraph (a), clause (3);
and
new text end

deleted text begin (2) deleted text end new text begin (3) new text end evaluating ancillary services.

(b) The assessment must employ appropriate modeling methods to enable the analysis
required in paragraph (a).

Sec. 7.

Minnesota Statutes 2022, section 216C.05, subdivision 2, is amended to read:

Subd. 2.

Energy policy goals.

It is the energy policy of the state of Minnesota that:

(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of
electricity and natural gas deleted text begin be deleted text end new text begin is new text end achieved through cost-effective energy efficiency;

(2) the per capita use of fossil fuel as an energy input deleted text begin be deleted text end new text begin is new text end reduced by 15 percent by the
year 2015, through increased reliance on energy efficiency and renewable energy alternatives;

(3) 25 percent of the total energy used in deleted text begin the state be deleted text end new text begin Minnesota is new text end derived from renewable
energy resources by the year 2025; deleted text begin and
deleted text end

new text begin (4) energy use in existing commercial and residential buildings is reduced by 50 percent
by 2035, and is achieved by: (i) using the most effective current energy-saving incentive
programs, evaluated by participation and efficacy; and (ii) developing and implementing
new programs, prioritizing solutions that achieve the highest overall carbon reduction; and
new text end

deleted text begin (4) deleted text end new text begin (5) new text end retail electricity rates for each customer class deleted text begin be deleted text end new text begin are new text end at least five percent below
the national average.

Sec. 8.

Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

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

new text begin (b) "Low-income conservation program" means a utility program that offers energy
conservation services to low-income households under sections 216B.2403, subdivision 5,
and 216B.241, subdivision 7.
new text end

new text begin (c) "Preweatherization measure" has the meaning given in section 216B.2402, subdivision
20.
new text end

new text begin (d) "Weatherization assistance program" means the federal program described in Code
of Federal Regulations, title 10, part 440 et seq., designed to assist low-income households
reduce energy use in a cost-effective manner.
new text end

new text begin (e) "Weatherization services" means the energy conservation preweatherization measures
installed in households under the weatherization assistance program and low-income
conservation program.
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. 9.

Minnesota Statutes 2022, section 216C.264, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin State supplementary weatherization grants account. new text end

new text begin (a) A state
supplementary weatherization grants account is established as a separate account in the
special revenue fund in the state treasury. The commissioner must credit appropriations and
transfers to the account. Earnings, including interest, dividends, and any other earnings
arising from assets of the account, must be credited to the account. Money remaining in the
account at the end of a fiscal year does not cancel to the general fund but remains in the
account until expended. The commissioner must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the purposes of
subdivision 5.
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. 10.

Minnesota Statutes 2022, section 216C.264, subdivision 5, is amended to read:

Subd. 5.

Grant allocation.

new text begin (a) new text end The commissioner must distribute supplementary state
grants in a manner consistent with the goal of producing the maximum number of weatherized
units. Supplementary state grants deleted text begin are provided primarily for the payment of deleted text end new text begin may be used:
new text end

new text begin (1) to address physical deficiencies in a residence that increase heat loss, including
deficiencies that prohibit the residence from being eligible to receive federal weatherization
assistance;
new text end

new text begin (2) to install preweatherization measures established by the commissioner under section
216B.241, subdivision 7, paragraph (g);
new text end

new text begin (3) to increase the number of weatherized residences;
new text end

new text begin (4) to conduct outreach activities to make income-eligible households aware of the
weatherization services available to income-eligible households, to assist applicants to fill
out applications for weatherization assistance, and to provide translation services where
necessary;
new text end

new text begin (5) to enable a project in a multifamily building to proceed even if the project cannot
comply with the federal requirement that the project must be completed within the same
federal fiscal year in which a project begins;
new text end

new text begin (6) to address shortages of workers trained to provide weatherization services, including
expanding training opportunities in existing and new training programs;
new text end

new text begin (7) to support the operation of the weatherization training program under section
216C.2641;
new text end

new text begin (8) to pay new text end additional labor costs for the federal weatherization program deleted text begin , deleted text end new text begin ; new text end and

new text begin (9) new text end as an incentive for the increased production of weatherized units.

new text begin (b) new text end Criteria for the allocation of state grants to local agencies include existing local
agency production levels, emergency needs, and the potential for maintaining or increasing
acceptable levels of production in the area.

new text begin (c) new text end An eligible local agency may receive advance funding for 90 days' production, but
thereafter must receive grants solely on the basis of program criteria.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

new text begin [216C.2641] WEATHERIZATION TRAINING GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce must establish a
weatherization training grant program to award grants to train workers for careers in the
weatherization industry.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) The commissioner must award grants through a competitive grant
process.
new text end

new text begin (b) An eligible entity under paragraph (c) seeking a grant under this section must submit
a written application to the commissioner using a form developed by the commissioner.
new text end

new text begin (c) The commissioner may award grants under this section only to:
new text end

new text begin (1) a nonprofit organization exempt from taxation under section 501(c)(3) of the United
States Internal Revenue Code;
new text end

new text begin (2) a labor organization, as defined in section 179.01, subdivision 6; or
new text end

new text begin (3) a job training center or educational institution that the commissioner of commerce
determines has the ability to train workers for weatherization careers.
new text end

new text begin (d) Grant funds must be used to pay costs associated with training workers for careers
in the weatherization industry, including related supplies, materials, instruction, and
infrastructure.
new text end

new text begin (e) When awarding grants under this section, the commissioner must give priority to
applications that provide the highest quality training to prepare trainees for weatherization
employment opportunities that meet technical standards and certifications developed by the
Building Performance Institute, Inc., or the Standard Work Specifications developed by the
United States Department of Energy for the federal Weatherization Assistance Program.
new text end

new text begin Subd. 3. new text end

new text begin Reports. new text end

new text begin By January 15, 2025, and each January 15 thereafter, the commissioner
must submit a report to the chairs and ranking minority members of the senate and house
of representatives committees with jurisdiction over energy policy. The report must detail
the use of grant funds under this section, including data on the number of trainees trained
and the career progress of trainees supported by prior grants.
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. 12.

new text begin [216C.331] ENERGY BENCHMARKING.
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) "Aggregated customer energy use data" means customer energy use data, which is
combined into one collective data point per time interval. Aggregated customer energy use
data is data with any unique identifiers or other personal information removed that a
qualifying utility collects and aggregates in at least monthly intervals for an entire building
on a covered property.
new text end

new text begin (c) "Benchmark" means to electronically input into a benchmarking tool the total energy
use data and other descriptive information about a building that is required by a benchmarking
tool.
new text end

new text begin (d) "Benchmarking information" means data related to a building's energy use generated
by a benchmarking tool, and other information about the building's physical and operational
characteristics. Benchmarking information includes but is not limited to the building's:
new text end

new text begin (1) address;
new text end

new text begin (2) owner and, if applicable, the building manager responsible for operating the building's
physical systems;
new text end

new text begin (3) total floor area, expressed in square feet;
new text end

new text begin (4) energy use intensity;
new text end

new text begin (5) greenhouse gas emissions; and
new text end

new text begin (6) energy performance score comparing the building's energy use with that of similar
buildings.
new text end

new text begin (e) "Benchmarking tool" means the United States Environmental Protection Agency's
Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.
new text end

new text begin (f) "Customer energy use data" refers to data collected from the utility customer meters
that reflect the quantity, quality, or timing of customers' usage.
new text end

new text begin (g) "Covered property" means any property that is served by an investor-owned utility
in the metropolitan area as defined in section 473.121, subdivision 2, or by a municipal
energy utility or investor-owned utility in any city outside the metropolitan area with a
population of over 50,000 residents, and that has one or more buildings containing in sum
50,000 gross square feet or greater. Covered property does not include:
new text end

new text begin (1) a residential property containing fewer than five dwelling units;
new text end

new text begin (2) a property that is: (i) classified as manufacturing under the North American Industrial
Classification System (NAICS); (ii) an energy-intensive trade-exposed customer, as defined
in section 216B.1696; (iii) an electric power generation facility; or (iv) otherwise an industrial
building incompatible with benchmarking in the benchmarking tool;
new text end

new text begin (3) an agricultural building; or
new text end

new text begin (4) a multitenant building that is served by a utility that cannot supply aggregated
customer usage data, and other property types that do not meet the purposes of this section,
as determined by the commissioner.
new text end

new text begin (h) "Energy" means electricity, natural gas, steam, or another product used to: (1) provide
heating, cooling, lighting, or water heating; or (2) power other end uses in a building.
new text end

new text begin (i) "Energy use intensity" means the total annual energy consumed in a building divided
by the building's total floor area.
new text end

new text begin (j) "Energy performance score" means a numerical value from one to 100 that the Energy
Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of
comparable buildings nationwide.
new text end

new text begin (k) "Energy Star Portfolio Manager" means an interactive resource management tool
developed by the United States Environmental Protection Agency that (1) enables the
periodic entry of a building's energy use data and other descriptive information about a
building, and (2) rates a building's energy efficiency against that of comparable buildings
nationwide.
new text end

new text begin (l) "Financial distress" means a covered property that, at the time benchmarking is
conducted:
new text end

new text begin (1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;
new text end

new text begin (2) is controlled by a court-appointed receiver based on financial distress;
new text end

new text begin (3) is owned by a financial institution through default by the borrower;
new text end

new text begin (4) has been acquired by deed in lieu of foreclosure; or
new text end

new text begin (5) has a senior mortgage that is subject to a notice of default.
new text end

new text begin (m) "Local government" means a statutory or home rule municipality or county.
new text end

new text begin (n) "Owner" means:
new text end

new text begin (1) an individual or entity that possesses title to a covered property; or
new text end

new text begin (2) an agent authorized to act on behalf of the covered property owner.
new text end

new text begin (o) "Qualifying utility" means a utility serving the covered property, including:
new text end

new text begin (1) an electric or gas utility, including:
new text end

new text begin (i) an investor-owned electric or gas utility; or
new text end

new text begin (ii) a municipally owned electric or gas utility;
new text end

new text begin (2) a natural gas supplier with five or more active commercial connections, accounts,
or customers in the state; or
new text end

new text begin (3) a district stream, hot water, or chilled water provider.
new text end

new text begin (p) "Tenant" means a person that occupies or holds possession of a building or part of
a building or premises pursuant to a rental or lease agreement.
new text end

new text begin (q) "Total floor area" means the sum of gross square footage inside a building's envelope,
measured between the outside exterior walls of the building. Total floor area includes covered
parking structures.
new text end

new text begin (r) "Utility customer" means the building owner or tenant listed on the utility's records
as the customer liable for payment of the utility service or additional charges assessed on
the utility account.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish and maintain a building
energy benchmarking program. The purpose of the program is to:
new text end

new text begin (1) make a building's owners, tenants, and potential tenants aware of (i) the building's
energy consumption levels and patterns, and (ii) how the building's energy use compares
with that of similar buildings nationwide; and
new text end

new text begin (2) enhance the likelihood that an owner adopts energy conservation measures in the
owner's building as a way to reduce energy use, operating costs, and greenhouse gas
emissions.
new text end

new text begin Subd. 3. new text end

new text begin Classification of covered properties. new text end

new text begin For the purposes of this section, a covered
property is classified as follows:
new text end

new text begin Class new text end	new text begin Total Floor Area (square feet) new text end
new text begin 1 new text end	new text begin 100,000 or more new text end
new text begin 2 new text end	new text begin 50,000 to 99,999 new text end

new text begin Subd. 4. new text end

new text begin Benchmarking requirement. new text end

new text begin (a) An owner must annually benchmark all
covered property owned as of December 31 in conformity with the schedule in subdivision
7. Energy use data must be compiled by:
new text end

new text begin (1) obtaining the data from the utility providing the energy; or
new text end

new text begin (2) reading a master meter.
new text end

new text begin (b) Before entering information in a benchmarking tool, an owner must run all automated
data quality assurance functions available within the benchmarking tool and must correct
all data identified as missing or incorrect.
new text end

new text begin (c) An owner who becomes aware that any information entered into a benchmarking
tool is inaccurate or incomplete must amend the information in the benchmarking tool within
30 days of the date the owner learned of the inaccuracy.
new text end

new text begin (d) Nothing in this subdivision prohibits an owner of property that is not a covered
property from voluntarily benchmarking a property under this section.
new text end

new text begin Subd. 5. new text end

new text begin Exemption by individual building. new text end

new text begin (a) The commissioner may exempt an
owner of a covered property from the requirements of subdivision 4 if the owner provides
evidence satisfactory to the commissioner that the covered property:
new text end

new text begin (1) is presently experiencing financial distress;
new text end

new text begin (2) has been less than 50 percent occupied during the previous calendar year;
new text end

new text begin (3) does not have a certificate of occupancy or temporary certificate of occupancy for
the full previous calendar year;
new text end

new text begin (4) was issued a demolition permit during the previous calendar year that remains current;
or
new text end

new text begin (5) received no energy services for at least 30 days during the previous calendar year.
new text end

new text begin (b) An exemption granted under this subdivision applies only to a single calendar year.
An owner must reapply to the commissioner each year an extension is sought.
new text end

new text begin (c) Within 30 days of the date an owner makes a request under this paragraph, a tenant
of a covered property subject to this section must provide the owner with any information
regarding energy use of the tenant's rental unit that the property owner cannot otherwise
obtain and that is needed by the owner to comply with this section. The tenant must provide
the information required under this paragraph in a format approved by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Exemption by other government benchmarking program. new text end

new text begin An owner is
exempt from the requirements of subdivision 4 for a covered property if the property is
subject to a benchmarking requirement by the state, a city, or other political subdivision
with a benchmarking requirement that the commissioner determines is equivalent or more
stringent, as determined under subdivision 11, paragraph (b), than the benchmarking
requirement established in this section. The exemption under this subdivision applies in
perpetuity unless or until the benchmarking requirement is changed or revoked and the
commissioner determines the benchmarking requirement is no longer equivalent nor more
stringent.
new text end

new text begin Subd. 7. new text end

new text begin Benchmarking schedule. new text end

new text begin (a) An owner must annually benchmark each covered
property for the previous calendar year according to the following schedule:
new text end

new text begin (1) all Class 1 properties by June 1, 2025, and by every June 1 thereafter; and
new text end

new text begin (2) all Class 2 properties by June 1, 2026, and by every June 1 thereafter.
new text end

new text begin (b) Beginning June 1, 2025, for Class 1 properties, and June 1, 2026, for Class 2
properties, an owner who is selling a covered property must provide the following to the
new owner at the time of sale:
new text end

new text begin (1) benchmarking information for the most recent 12-month period, including monthly
energy use by source; or
new text end

new text begin (2) ownership of the digital property record in the benchmarking tool through an online
transfer.
new text end

new text begin Subd. 8. new text end

new text begin Utility data requirements. new text end

new text begin (a) In implementing this section, a qualifying utility
shall implement the data aggregation standards established by the commission in docket
number 19-505, including changes to the standards adopted in an order issued after the
effective date of this section. A municipal energy utility serving a covered property under
this section shall adopt data aggregation standards that are substantially similar to the
standards included in the commission's order in that docket and subsequent relevant orders.
new text end

new text begin (b) Customer energy use data that a qualifying utility provides an owner pursuant to this
subdivision must be:
new text end

new text begin (1) available on, or able to be requested through, an easily navigable web portal or online
request form using up-to-date standards for digital authentication;
new text end

new text begin (2) provided to the owner within 30 days after receiving the owner's valid written or
electronic request;
new text end

new text begin (3) provided for at least 24 consecutive months of energy consumption or as many
months of consumption data that are available if the owner has owned the building for less
than 24 months;
new text end

new text begin (4) directly uploaded to the owner's benchmarking tool account, delivered in the
spreadsheet template specified by the benchmarking tool, or delivered in another format
approved by the commissioner;
new text end

new text begin (5) provided to the owner on at least an annual basis until the owner revokes the request
for energy use data or sells the covered property; and
new text end

new text begin (6) provided in monthly intervals, or the shortest available intervals based in billing.
new text end

new text begin (c) Data necessary to establish, utilize, or maintain information in the benchmarking
tool under this section may be collected or shared as provided by this section and are
considered public data whether or not the data have been aggregated.
new text end

new text begin Subd. 9. new text end

new text begin Data collection and management. new text end

new text begin (a) The commissioner must:
new text end

new text begin (1) collect benchmarking information generated by a benchmarking tool and other related
information for each covered property;
new text end

new text begin (2) provide technical assistance to owners entering data into a benchmarking tool;
new text end

new text begin (3) collaborate with the Department of Revenue to collect the data necessary for
establishing the covered property list annually; and
new text end

new text begin (4) provide technical guidance to utilities in the establishment of data aggregation and
access tools.
new text end

new text begin (b) Upon request of the commissioner, a county assessor shall provide readily available
property data necessary for the development of the covered property list, including but not
limited to gross floor area, property type, and owner information by January 15 annually.
new text end

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

new text begin (1) rank benchmarked covered properties in each property class from highest to lowest
performance score or, if a performance score is unavailable for a covered property, from
lowest to highest energy use intensity;
new text end

new text begin (2) divide covered properties in each property class into four quartiles based on the
applicable measure in clause (1);
new text end

new text begin (3) assign four stars to each covered property in the quartile of each property class with
the highest performance scores or lowest energy use intensities, as applicable;
new text end

new text begin (4) assign three stars to each covered property in the quartile of each property class with
the second highest performance scores or second lowest energy use intensities, as applicable;
new text end

new text begin (5) assign two stars to each covered property in the quartile of each property class with
the third highest performance scores or third lowest energy use intensities, as applicable;
new text end

new text begin (6) assign one star to each covered property in the quartile of each property class with
the lowest performance scores or highest energy use intensities, as applicable; and
new text end

new text begin (7) serve notice in writing to each owner identifying the number of stars assigned by the
commissioner to each of the owner's covered properties.
new text end

new text begin Subd. 10. new text end

new text begin Data disclosure to public. new text end

new text begin (a) The commissioner must post on the department's
website and update by December 1 annually the following information for the previous
calendar year:
new text end

new text begin (1) annual summary statistics on energy use for all covered properties;
new text end

new text begin (2) annual summary statistics on energy use for all covered properties, aggregated by
covered property class, as defined in subdivision 3, city, and county;
new text end

new text begin (3) the percentage of covered properties in each building class listed in subdivision 3
that are in compliance with the benchmarking requirements under subdivisions 4 to 7; and
new text end

new text begin (4) for each covered property, at a minimum, the address, total energy use, energy use
intensity, annual greenhouse gas emissions, and energy performance score, if available.
new text end

new text begin (b) The commissioner must post the information required under this subdivision for:
new text end

new text begin (1) all Class 1 properties by November 1, 2025, and by every November 1 thereafter;
and
new text end

new text begin (2) all Class 2 properties by November 1, 2026, and by every November 1 thereafter.
new text end

new text begin Subd. 11. new text end

new text begin Coordination with other benchmarking programs. new text end

new text begin (a) The commissioner
shall coordinate with any state agency or local government that implements an energy
benchmarking program, including the coordination of reporting requirements.
new text end

new text begin (b) This section does not restrict a local government from adopting or implementing an
ordinance or resolution that imposes more stringent benchmarking requirements. For purposes
of this section, a local government benchmarking program is more stringent if the program
requires:
new text end

new text begin (1) buildings to be benchmarked that are not required to be benchmarked under this
section; or
new text end

new text begin (2) benchmarking of information that is not required to be benchmarked under this
section.
new text end

new text begin (c) Benchmarking program requirements of local governments must:
new text end

new text begin (1) be at least as comprehensive in scope and application as the program operated under
this section; and
new text end

new text begin (2) include annual enforcement of a penalty on covered properties that do not comply
with the local government's benchmarking ordinance.
new text end

new text begin (d) Local governments must notify the commissioner of the local government's existing
benchmarking ordinance requirements. Local governments must notify the commissioner
of new, changed, or revoked ordinance requirements, which when made by December 31
would apply to the benchmarking schedule for the following year.
new text end

new text begin (e) The commissioner shall make available for local governments upon request all
benchmarking data for covered properties within the local government's jurisdiction by
December 1, annually.
new text end

new text begin Subd. 12. new text end

new text begin Building performance disclosure to occupants. new text end

new text begin The commissioner must
provide disclosure materials for public display within a building to building owners, so that
building owners can prominently display the performance of the building. The materials
must include the number of stars assigned to the building by the commissioner under
subdivision 9, paragraph (c), and a relevant explanation of the rating.
new text end

new text begin Subd. 13. new text end

new text begin Notifications. new text end

new text begin By March 1 each year, the commissioner must notify the owner
of each covered property required to benchmark for the previous calendar year of the
requirement to benchmark by June 1 of the current year.
new text end

new text begin Subd. 14. new text end

new text begin Program implementation. new text end

new text begin The commissioner may contract with an
independent third party to implement any or all of the commissioner's duties required under
this section. To implement the benchmarking program, the commissioner shall assist building
owners to increase energy efficiency and reduce greenhouse gas emissions from the owners'
buildings, including by providing outreach, training, and technical assistance to building
owners to help the owners' buildings come into compliance with the benchmarking program.
new text end

new text begin Subd. 15. new text end

new text begin Enforcement. new text end

new text begin By June 15 each year, the commissioner must notify the owner
of each covered property required to comply with this section that has failed to comply that
the owner has until July 15 to come into compliance, unless the owner requests an extension,
in which case the owner has until August 15 to come into compliance. If an owner fails to
comply with the requirements of this section by July 15 and fails to request an extension
by that date, or is given an extension and fails to comply by August 15, the commissioner
may impose a civil fine of $1,000 on the owner. The commissioner may by rule increase
the civil fine to adjust for inflation.
new text end

new text begin Subd. 16. new text end

new text begin Recovery of expenses. new text end

new text begin The commission shall allow a public utility to recover
reasonable and prudent expenses of implementing this section under section 216B.16,
subdivision 6b. The costs and benefits associated with implementing this section may, at
the discretion of the utility, be excluded from the calculation of net economic benefits for
purposes of calculating the financial incentive to the public utility under section 216B.16,
subdivision 6c. The energy and demand savings may, at the discretion of the public utility,
be applied toward the calculation of overall portfolio energy and demand savings for purposes
of determining progress toward annual goals under section 216B.241, subdivision 1c, and
in the financial incentive mechanism under section 216B.16, subdivision 6c.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that subdivision 15 is effective June 15, 2026.
new text end

Sec. 13.

new text begin [216C.378] ENERGY STORAGE INCENTIVE PROGRAM.
new text end

new text begin (a) The public utility subject to section 116C.779 must develop and operate a program
to provide a grant to customers to reduce the cost to purchase and install an on-site energy
storage system, as defined in section 216B.2422, subdivision 1, paragraph (f). The public
utility subject to this section must file a plan with the commissioner to operate the program
no later than November 1, 2023. The public utility must not operate the program until the
program is approved by the commissioner. Any change to an operating program must be
approved by the commissioner.
new text end

new text begin (b) In order to be eligible to receive a grant under this section, an energy storage system
must:
new text end

new text begin (1) have a capacity no greater than 50 kilowatt hours; and
new text end

new text begin (2) be located within the electric service area of the public utility subject to this section.
new text end

new text begin (c) An owner of an energy storage system is eligible to receive a grant under this section
if:
new text end

new text begin (1) a solar energy generating system is operating at the same site as the proposed energy
storage system; or
new text end

new text begin (2) the owner has filed an application with the public utility subject to this section to
interconnect a solar energy generating system at the same site as the proposed energy storage
system.
new text end

new text begin (d) The amount of a grant awarded under this section must be based on the number of
watt-hours that reflects the duration of the energy storage system at the system's rated
capacity, up to a maximum of $5,000.
new text end

new text begin (e) The commissioner must annually review and may adjust the amount of grants awarded
under this section, but must not increase the amount over that awarded in previous years
unless the commissioner demonstrates in writing that an upward adjustment is warranted
by market conditions.
new text end

new text begin (f) A customer who receives a grant under this section is eligible to receive financial
assistance under programs operated by the state or the utility for the solar energy generating
system operating in conjunction with the energy storage system.
new text end

new text begin (g) For the purposes of this section, "solar energy generating system" has the meaning
given in section 216E.01, subdivision 9a.
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. 14.

new text begin [216C.46] RESIDENTIAL HEAT PUMP REBATE 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) "Eligible applicant" means a person who provides evidence to the commissioner's
satisfaction demonstrating that the person has received or has applied for a heat pump rebate
available from the federal Department of Energy under the Inflation Reduction Act of 2022,
Public Law 117-189.
new text end

new text begin (c) "Heat pump" means a cold climate rated air-source heat pump composed of (1) a
mechanism that heats and cools indoor air by transferring heat from outdoor or indoor air
using a fan, (2) a refrigerant-filled heat exchanger, and (3) an inverter-driven compressor
that varies the pressure of the refrigerant to warm or cool the refrigerant vapor.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A residential heat pump rebate program is established in the
department to provide financial assistance to eligible applicants that purchase and install a
heat pump in the applicant's Minnesota residence.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) An application for a rebate under this section must be made
to the commissioner on a form developed by the commissioner. The application must be
accompanied by documentation, as required by the commissioner, demonstrating that:
new text end

new text begin (1) the applicant is an eligible applicant;
new text end

new text begin (2) the applicant owns the Minnesota residence in which the heat pump is to be installed;
new text end

new text begin (3) the applicant has had an energy audit conducted of the residence in which the heat
pump is to be installed within the last 18 months by a person with a Building Analyst
Technician certification issued by the Building Performance Institute, Inc., or an equivalent
certification, as determined by the commissioner;
new text end

new text begin (4) either:
new text end

new text begin (i) the applicant has installed in the applicant's residence, by a contractor with an Air
Leakage Control Installer certification issued by the Building Performance Institute, Inc.,
or an equivalent certification, as determined by the commissioner, the amount of insulation
and the air sealing measures recommended by the auditor; or
new text end

new text begin (ii) the auditor has otherwise determined that the amount of insulation and air sealing
measures in the residence are sufficient to enable effective heat pump performance;
new text end

new text begin (5) the applicant has purchased a heat pump of the capacity recommended by the auditor
or contractor, and has had the heat pump installed by a contractor with sufficient training
and experience in installing heat pumps, as determined by the commissioner; and
new text end

new text begin (6) the total cost to purchase and install the heat pump in the applicant's residence.
new text end

new text begin (b) The commissioner must develop administrative procedures governing the application
and rebate award processes.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amount. new text end

new text begin A rebate awarded under this section must not exceed the lesser
of:
new text end

new text begin (1) $4,000; or
new text end

new text begin (2) the total cost to purchase and install the heat pump in an eligible applicant's residence
net of the rebate amount received for the heat pump from the federal Department of Energy
under the Inflation Reduction Act of 2022, Public Law 117-189.
new text end

new text begin Subd. 5. new text end

new text begin Assisting applicants. new text end

new text begin The commissioner must issue a request for proposal
seeking an entity to serve as an energy coordinator to interact directly with applicants and
potential applicants to:
new text end

new text begin (1) explain the technical aspects of heat pumps, energy audits, and energy conservation
measures, and the energy and financial savings that can result from implementing each;
new text end

new text begin (2) identify federal, state, and utility programs available to homeowners to reduce the
costs of energy audits, energy conservation, and heat pumps;
new text end

new text begin (3) explain the requirements and scheduling of the application process;
new text end

new text begin (4) provide access to certified contractors who can perform energy audits, install
insulation and air sealing measures, and install heat pumps; and
new text end

new text begin (5) conduct outreach to make potential applicants aware of the program.
new text end

new text begin Subd. 6. new text end

new text begin Contractor training and support. new text end

new text begin The commissioner must issue a request for
proposals seeking an entity to develop and organize programs to train contractors with
respect to the technical aspects and installation of heat pumps in residences. The training
curriculum must be at a level sufficient to provide contractors who complete training with
the knowledge and skills necessary to install heat pumps to industry best practice standards,
as determined by the commissioner. Training programs must: (1) be accessible in all regions
of the state; and (2) provide mentoring and ongoing support, including continuing education
and financial assistance, to trainees.
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. 15.

Minnesota Statutes 2022, section 216E.01, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Energy storage system. new text end

new text begin "Energy storage system" means equipment and
associated facilities designed with a nameplate capacity of 5,000 kilowatts or more that is
capable of storing generated electricity for a period of time and delivering the electricity
for use after storage.
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. 16.

Minnesota Statutes 2022, section 216E.01, subdivision 6, is amended to read:

Subd. 6.

Large electric power facilities.

"Large electric power facilities" means high
voltage transmission lines deleted text begin and deleted text end new text begin , new text end large electric power generating plants new text begin , and energy storage
systems new text end .

Sec. 17.

Minnesota Statutes 2022, section 216E.03, subdivision 1, is amended to read:

Subdivision 1.

Site permit.

No person may construct a large electric generating plant
new text begin or an energy storage system new text end without a site permit from the commission. A large electric
generating plant new text begin or an energy storage system new text end may be constructed only on a site approved
by the commission. The commission 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 under section 216B.243.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2022, section 216E.03, subdivision 3, is amended to read:

Subd. 3.

Application.

Any person seeking to construct a large electric power deleted text begin generating
plant or a high-voltage transmission line deleted text end new text begin facility new text end must apply to the commission for a site or
route permit new text begin , as applicable new text end . The application shall contain such information as the commission
may require. The applicant shall propose at least two sites for a large electric power
deleted text begin generating plant deleted text end new text begin facility new text end and two routes for a high-voltage transmission line. Neither of the
two proposed routes may be designated as a preferred route and all proposed routes must
be numbered and designated as alternatives. The commission shall determine whether an
application is complete and advise the applicant of any deficiencies within ten days of
receipt. An application is not incomplete if information not in the application can be obtained
from the applicant during the first phase of the process and that information is not essential
for notice and initial public meetings.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2022, section 216E.03, subdivision 5, as amended by Laws
2023, chapter 7, section 25, is amended to read:

Subd. 5.

Environmental review.

(a) The commissioner of the Department of Commerce
shall prepare for the commission an environmental impact statement on each proposed large
electric power deleted text begin generating plant or high-voltage transmission line deleted text end new text begin facility new text end for which a complete
application has been submitted. The commissioner shall not consider whether or not the
project is needed. No other state environmental review documents shall be required. The
commissioner shall study and evaluate any site or route proposed by an applicant and any
other site or route the commission deems necessary that was proposed in a manner consistent
with rules concerning the form, content, and timeliness of proposals for alternate sites or
routes, excluding any alternate site for a solar energy generating system that was not proposed
by an applicant.

(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a
large electric power generating plant and is not proposed by a utility, the commissioner
must make a finding in the environmental impact statement whether the project is likely to
result in a net reduction of carbon dioxide emissions, considering both the utility providing
electric service to the proposed cogeneration facility and any reduction in carbon dioxide
emissions as a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2022, section 216E.03, subdivision 6, is amended to read:

Subd. 6.

Public hearing.

The commission shall hold a public hearing on an application
for a site new text begin or route new text end permit for a large electric power deleted text begin generating plant or a route permit for a
high-voltage transmission line deleted text end new text begin facility new text end . All hearings held for designating a site or route shall
be conducted by an administrative law judge from the Office of Administrative Hearings
pursuant to the contested case procedures of chapter 14. Notice of the hearing shall be given
by the commission at least ten days in advance but no earlier than 45 days prior to the
commencement of the hearing. Notice shall be by publication in a legal newspaper of general
circulation in the county in which the public hearing is to be held and by certified mail to
chief executives of the regional development commissions, counties, organized towns,
townships, and the incorporated municipalities in which a site or route is proposed. Any
person may appear at the hearings and offer testimony and exhibits without the necessity
of intervening as a formal party to the proceedings. The administrative law judge may allow
any person to ask questions of other witnesses. The administrative law judge shall hold a
portion of the hearing in the area where the power plant or transmission line is proposed to
be located.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2022, section 216E.03, subdivision 7, as amended by Laws
2023, chapter 7, section 26, is amended to read:

Subd. 7.

Considerations in designating sites and routes.

(a) The commission's site
and route permit determinations must be guided by the state's goals to conserve resources,
minimize environmental impacts, minimize human settlement and other land use conflicts,
and ensure the state's electric energy security through efficient, cost-effective power supply
and electric transmission infrastructure.

(b) To facilitate the study, research, evaluation, and designation of sites and routes, the
commission shall be guided by, but not limited to, the following considerations:

(1) evaluation of research and investigations relating to the effects on land, water and
air resources of large electric power deleted text begin generating plants and high-voltage transmission lines deleted text end new text begin
facilities new text end and the effects of water and air discharges and electric and magnetic fields resulting
from such facilities on public health and welfare, vegetation, animals, materials and aesthetic
values, including baseline studies, predictive modeling, and evaluation of new or improved
methods for minimizing adverse impacts of water and air discharges and other matters
pertaining to the effects of power plants on the water and air environment;

(2) environmental evaluation of sites and routes proposed for future development and
expansion and their relationship to the land, water, air and human resources of the state;

(3) evaluation of the effects of new electric power generation and transmission
technologies and systems related to power plants designed to minimize adverse environmental
effects;

(4) evaluation of the potential for beneficial uses of waste energy from proposed large
electric power generating plants;

(5) analysis of the direct and indirect economic impact of proposed sites and routes
including, but not limited to, productive agricultural land lost or impaired;

(6) evaluation of adverse direct and indirect environmental effects that cannot be avoided
should the proposed site and route be accepted;

(7) evaluation of alternatives to the applicant's proposed site or route proposed pursuant
to subdivisions 1 and 2;

(8) evaluation of potential routes that would use or parallel existing railroad and highway
rights-of-way;

(9) evaluation of governmental survey lines and other natural division lines of agricultural
land so as to minimize interference with agricultural operations;

(10) evaluation of the future needs for additional high-voltage transmission lines in the
same general area as any proposed route, and the advisability of ordering the construction
of structures capable of expansion in transmission capacity through multiple circuiting or
design modifications;

(11) evaluation of irreversible and irretrievable commitments of resources should the
proposed site or route be approved;

(12) when appropriate, consideration of problems raised by other state and federal
agencies and local entities;

(13) evaluation of the benefits of the proposed facility with respect to (i) the protection
and enhancement of environmental quality, and (ii) the reliability of state and regional
energy supplies;

(14) evaluation of the proposed facility's impact on socioeconomic factors; and

(15) evaluation of the proposed facility's employment and economic impacts in the
vicinity of the facility site and throughout Minnesota, including the quantity and quality of
construction and permanent jobs and their compensation levels. The commission must
consider a facility's local employment and economic impacts, and may reject or place
conditions on a site or route permit based on the local employment and economic impacts.

(c) If the commission's rules are substantially similar to existing regulations of a federal
agency to which the utility in the state is subject, the federal regulations must be applied by
the commission.

(d) No site or route shall be designated which violates state agency rules.

(e) The commission must make specific findings that it has considered locating a route
for a high-voltage transmission line on an existing high-voltage transmission route and the
use of parallel existing highway right-of-way and, to the extent those are not used for the
route, the commission must state the reasons.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2022, section 216E.04, subdivision 2, as amended by Laws
2023, chapter 7, section 29, is amended to read:

Subd. 2.

Applicable projects.

The requirements and procedures in this section apply to
the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants that are fueled by natural gas;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) high-voltage transmission lines in excess of 200 kilovolts and less than 30 miles in
length in Minnesota;

(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of
the distance of the line in Minnesota will be located along existing high-voltage transmission
line right-of-way;

(6) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length;

(7) a high-voltage transmission line rerouting to serve the demand of a single customer
when the rerouted line will be located at least 80 percent on property owned or controlled
by the customer or the owner of the transmission line; deleted text begin and
deleted text end

(8) large electric power generating plants that are powered by solar energy deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) energy storage systems.
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. 23.

Minnesota Statutes 2022, section 216E.05, subdivision 2, is amended to read:

Subd. 2.

Applicable projects.

Applicants may seek approval from local units of
government to construct the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants of any size that burn natural gas and are intended
to be a peaking plant;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) substations with a voltage designed for and capable of operation at a nominal voltage
of 100 kilovolts or more;

(5) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length; deleted text begin and
deleted text end

(6) a high-voltage transmission line rerouting to serve the demand of a single customer
when the rerouted line will be located at least 80 percent on property owned or controlled
by the customer or the owner of the transmission line new text begin ; and
new text end

new text begin (7) energy storage systems 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. 24.

Minnesota Statutes 2022, section 216E.06, is amended to read:

216E.06 EMERGENCY PERMIT.

(a) Any utility whose electric power system requires the immediate construction of a
large electric power deleted text begin generating plant or high-voltage transmission line deleted text end new text begin facility new text end due to a major
unforeseen event may apply to the commission for an emergency permit. The application
shall provide notice in writing 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 commission's acceptance of the application and upon a finding by the commission that
(1) a demonstrable emergency exists, (2) the emergency requires immediate construction,
and (3) adherence to the procedures and time schedules specified in section 216E.03 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 commission, after notice and hearing, shall adopt rules specifying
the criteria for emergency certification.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2022, section 216E.07, is amended to read:

216E.07 ANNUAL HEARING.

The commission 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 new text begin and routing new text end of large electric deleted text begin generating deleted text end power deleted text begin plants and routing of
high-voltage transmission lines deleted text end new text begin facilities new text end . At the meeting, the commission shall advise the
public of the permits issued by the commission in the past year. The commission shall
provide at least ten days but no more than 45 days' notice of the annual meeting by mailing
or serving electronically, as provided in section 216.17, a notice to those persons who have
requested notice and by publication in the EQB Monitor and the commission's weekly
calendar.

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2022, section 216E.10, is amended to read:

216E.10 APPLICATION TO LOCAL REGULATION AND OTHER STATE
PERMITS.

Subdivision 1.

Site or route permit prevails over local provisions.

To assure the
paramount and controlling effect of the provisions herein over other state agencies, regional,
county, and local governments, and special purpose government districts, the issuance of a
site permit or route permit and subsequent purchase and use of such site or route locations
for large electric power deleted text begin generating plant and high-voltage transmission line deleted text end new text begin facility new text end purposes
shall be the sole site or route approval required to be obtained by the utility. Such permit
shall supersede and preempt all zoning, building, or land use rules, regulations, or ordinances
promulgated by regional, county, local and special purpose government.

Subd. 2.

Other state permits.

Notwithstanding anything herein to the contrary, utilities
shall obtain state permits that may be required to construct and operate large electric power
deleted text begin generating plants and high-voltage transmission lines deleted text end new text begin facilities new text end . A state agency in processing
a utility's facility permit application shall be bound to the decisions of the commission, with
respect to the site or route designation, and with respect to other matters for which authority
has been granted to the commission by this chapter.

Subd. 3.

State agency participation.

(a) 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 commission on specific site or route designations and design considerations
of the commission, 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.

(b) An applicant for a permit under this section or under chapter 216G shall notify the
commissioner of agriculture if the proposed project will impact cultivated agricultural land,
as that term is defined in section 216G.01, subdivision 4. The commissioner may participate
and advise the commission as to whether to grant a permit for the project and the best options
for mitigating adverse impacts to agricultural lands if the permit is granted. The Department
of Agriculture shall be the lead agency on the development of any agricultural mitigation
plan required for the project.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2022, section 326B.106, subdivision 1, is amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections
326B.101 to 326B.194, the commissioner shall by rule and in consultation with the
Construction Codes Advisory Council establish a code of standards for the construction,
reconstruction, alteration, and repair of buildings, governing matters of structural materials,
design and construction, fire protection, health, sanitation, and safety, including design and
construction standards regarding heat loss control, illumination, and climate control. The
code must also include duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension and revocation of certification.
The code must conform insofar as practicable to model building codes generally accepted
and in use throughout the United States, including a code for building conservation. In the
preparation of the code, consideration must be given to the existing statewide specialty
codes presently in use in the state. Model codes with necessary modifications and statewide
specialty codes may be adopted by reference. The code must be based on the application
of scientific principles, approved tests, and professional judgment. To the extent possible,
the code must be adopted in terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of specifications of particular methods
or materials. To that end the code must encourage the use of new methods and new materials.
Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall
administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to
similar buildings without significant modifications including provisions for use of building
systems as specified in the industrial/modular program specified in section 326B.194.
Additional plan review fees associated with similar plans must be based on costs
commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years
thereafter, the commissioner shall review the new model building codes and adopt the model
codes as amended for use in Minnesota, within two years of the published edition date. The
commissioner may adopt amendments to the building codes prior to the adoption of the
new building codes to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. The
commissioner may adopt amendments prior to adoption of the new energy codes, as amended
for use in Minnesota, to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to deleted text begin improve the efficiency
or use of a building deleted text end new text begin mitigate the impact of climate change by increasing energy efficiency,
improving resiliency, and reducing greenhouse gas emissions of new buildings and of
existing buildings undergoing additions, alterations, and changes of use new text end .

new text begin (e) Beginning in 2024, the commissioner shall act on the new model commercial energy
code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard.
The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent
reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a
baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that
incrementally move toward achieving the 80 percent reduction in annual net energy
consumption. By January 15 of the year following each new code adoption, the commissioner
shall report on the progress made under this section to the legislative committees with
jurisdiction over the energy code.
new text end

Sec. 28. new text begin RULEMAKING AUTHORIZED.
new text end

new text begin (a) The commission is authorized to develop and adopt rules for siting energy storage
systems and to reflect the provisions of this act.
new text end

new text begin (b) Until the commission adopts rules under this section, the commission shall utilize
applicable provisions of Minnesota Rules, chapter 7850, to site energy storage systems,
except that Minnesota Rules, part 7850.4400, subpart 4, does not apply to energy storage
systems.
new text end

new text begin (c) For the purposes of this section, "energy storage system" has the meaning given in
Minnesota Statutes, section 216E.01, subdivision 3a.
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. 29. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall make any necessary changes in Minnesota Rules resulting
from the changes made to Minnesota Statutes, chapter 216E, in this act.
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

ARTICLE 5

PUBLIC UTILITIES COMMISSION PROCEDURES

Section 1.

Minnesota Statutes 2022, section 216B.17, subdivision 1, is amended to read:

Subdivision 1.

Investigation.

On deleted text begin its deleted text end new text begin the commission's new text end own motion or upon a complaint
made against any public utility deleted text begin , deleted text end by the governing body of any political subdivision, by
another public utility, by the department, deleted text begin or deleted text end by any 50 consumers of deleted text begin the deleted text end new text begin a new text end particular utility new text begin ,
or by a complainant under section 216B.172 new text end that any of the rates, tolls, tariffs, charges, or
schedules or any joint rate or any regulation, measurement, practice, act, or omission affecting
or relating to the production, transmission, delivery, or furnishing of natural gas or electricity
or any service in connection therewith is in any respect unreasonable, insufficient, or unjustly
discriminatory, or that any service is inadequate or cannot be obtained, the commission
shall proceed, with notice, to make such investigation as it may deem necessary. The
commission may dismiss any complaint without a hearing if in its opinion a hearing is not
in the public interest.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any complaint filed with the commission on or after that date.
new text end

Sec. 2.

new text begin [216B.172] CONSUMER DISPUTES.
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) "Appeal" means a request a complainant files with the commission to review and
make a final decision regarding the resolution of the complainant's complaint by the consumer
affairs office.
new text end

new text begin (c) "Complainant" means an individual residential customer who files with the consumer
affairs office a complaint against a public utility.
new text end

new text begin (d) "Complaint" means an allegation submitted to the consumer affairs office by a
complainant that a public utility's action or practice regarding billing or terms and conditions
of service:
new text end

new text begin (1) violates a statute, rule, tariff, service contract, or other provision of law;
new text end

new text begin (2) is unreasonable; or
new text end

new text begin (3) has harmed or, if not addressed, harms a complainant.
new text end

new text begin Complaint does not include an objection to or a request to modify any natural gas or
electricity rate contained in a tariff that has been approved by the commission. A complaint
under this section is an informal complaint under Minnesota Rules, chapter 7829.
new text end

new text begin (e) "Consumer affairs office" means the staff unit of the commission that is organized
to receive and respond to complaints.
new text end

new text begin (f) "Informal proceeding" has the meaning given in Minnesota Rules, part 7829.0100,
subpart 8.
new text end

new text begin (g) "Public assistance" has the meaning given in section 550.37, subdivision 14.
new text end

new text begin (h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Complaint resolution procedure. new text end

new text begin A complainant must first attempt to resolve
a dispute with a public utility by filing a complaint with the consumer affairs office. The
consumer affairs office must: (1) notify the complainant of the resolution of the complaint;
and (2) provide written notice of (i) the complainant's right to appeal the resolution to the
commission, and (ii) the steps the complainant may take to appeal the resolution. Upon
request, the consumer affairs office must provide to the complainant a written notice
containing the substance of and basis for the resolution. Nothing in this section affects any
other rights existing under this chapter or other law.
new text end

new text begin Subd. 3. new text end

new text begin Appeal; final commission decision. new text end

new text begin (a) If a complainant is not satisfied with
the resolution of a complaint by the consumer affairs office, the complainant may file an
appeal with the commission requesting that the commission make a final decision on the
complaint. The commission's response to an appeal filed under this subdivision must comply
with the notice requirements under section 216B.17, subdivisions 2 to 5.
new text end

new text begin (b) Upon the commission's receipt of an appeal filed under paragraph (a), the chair of
the commission or a subcommittee delegated under section 216A.03, subdivision 8, to
review the resolution of the complaint must decide whether the complaint be:
new text end

new text begin (1) dismissed because there is no reasonable basis on which to proceed;
new text end

new text begin (2) resolved through an informal commission proceeding; or
new text end

new text begin (3) referred to the Office of Administrative Hearings for a contested case proceeding
under chapter 14.
new text end

new text begin A decision made under this paragraph must be provided in writing to the complainant and
the public utility.
new text end

new text begin (c) If the commission decides that the complaint be resolved through an informal
proceeding before the commission or referred to the Office of Administrative Hearings for
a contested case proceeding, the executive secretary must issue any procedural schedules,
notices, or orders required to initiate an informal proceeding or a contested case.
new text end

new text begin (d) The commission's dismissal of an appeal request or a decision rendered after
conducting an informal proceeding is a final decision constituting an order or determination
of the commission.
new text end

new text begin Subd. 4. new text end

new text begin Judicial review. new text end

new text begin Notwithstanding section 216B.27, a complainant may seek
judicial review in district court of an adverse final decision under subdivision 3, paragraph
(b), clause (1) or (2). Judicial review of the commission's decision in a contested case referred
under subdivision 3, paragraph (b), clause (3), is governed by chapter 14.
new text end

new text begin Subd. 5. new text end

new text begin Right to service during pendency of dispute. new text end

new text begin A public utility must continue
or promptly restore service to a complainant during the pendency of an administrative or
judicial procedure pursued by a complainant under this section, provided that the
complainant:
new text end

new text begin (1) agrees to enter into a payment agreement under section 216B.098, subdivision 3;
new text end

new text begin (2) posts the full disputed payment in escrow;
new text end

new text begin (3) demonstrates receipt of public assistance or eligibility for legal aid services; or
new text end

new text begin (4) demonstrates the complainant's household income is at or below 50 percent of the
median income in Minnesota.
new text end

new text begin Subd. 6. new text end

new text begin Rulemaking authority. new text end

new text begin The commission may adopt rules to carry out the
purposes of 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 and
applies to any complaint filed with the commission on or after that date.
new text end

Sec. 3.

new text begin [216B.631] COMPENSATION FOR PARTICIPANTS IN PROCEEDINGS.
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) "Participant" means a person who files comments or appears in a commission
proceeding concerning one or more public utilities, excluding public hearings held in
contested cases and commission proceedings conducted to receive general public comments.
new text end

new text begin (c) "Party" means a person by or against whom a proceeding before the commission is
commenced or a person permitted to intervene in a proceeding, other than public hearings,
concerning one or more public utilities.
new text end

new text begin (d) "Proceeding" means a process or procedural means the commission engages in under
this chapter to attempt to resolve an issue affecting one or more public utilities and that
results in a commission order.
new text end

new text begin (e) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Participants; eligibility. new text end

new text begin Any of the following participants is eligible to receive
compensation under this section:
new text end

new text begin (1) a nonprofit organization that:
new text end

new text begin (i) is exempt from taxation under section 501(c)(3) of the Internal Revenue Code;
new text end

new text begin (ii) is incorporated or organized in Minnesota;
new text end

new text begin (iii) is governed under chapter 317A or section 322C.1101; and
new text end

new text begin (iv) the commission determines under subdivision 3, paragraph (c), would suffer financial
hardship if not compensated for the nonprofit organization's participation in the applicable
proceeding;
new text end

new text begin (2) a Tribal government of a federally recognized Indian Tribe that is located in
Minnesota; or
new text end

new text begin (3) a Minnesota resident, except that an individual who owns a for-profit business that
has earned revenue from a Minnesota utility in the past two years is not eligible for
compensation.
new text end

new text begin Subd. 3. new text end

new text begin Compensation; conditions. new text end

new text begin (a) The commission may order a public utility to
compensate all or part of a participant's reasonable costs incurred to participate in a
proceeding before the commission if the participant is eligible under subdivision 2 and the
commission finds:
new text end

new text begin (1) that the participant has materially assisted the commission's deliberation; and
new text end

new text begin (2) if the participant is a nonprofit organization, that the participant would suffer financial
hardship if the nonprofit organization's participation in the proceeding was not compensated.
new text end

new text begin (b) In determining whether a participant has materially assisted the commission's
deliberation, the commission must find that:
new text end

new text begin (1) the participant made a unique contribution to the record and represented an interest
that would not otherwise have been adequately represented;
new text end

new text begin (2) the evidence or arguments presented or the positions taken by the participant were
an important factor in producing a fair decision;
new text end

new text begin (3) the participant's position promoted a public purpose or policy;
new text end

new text begin (4) the evidence presented, arguments made, issues raised, or positions taken by the
participant would not otherwise have been part of the record;
new text end

new text begin (5) the participant was active in any stakeholder process included in the proceeding; and
new text end

new text begin (6) the proceeding resulted in a commission order that adopted, in whole or in part, a
position advocated by the participant.
new text end

new text begin (c) In determining whether a nonprofit participant has demonstrated that a lack of
compensation would present financial hardship, the commission must find that the nonprofit
participant:
new text end

new text begin (1) incorporated or organized within three years of the beginning of the applicable
proceeding;
new text end

new text begin (2) has payroll expenses less than $750,000; or
new text end

new text begin (3) has secured less than $100,000 in current year funding dedicated to participation in
commission proceedings, not including any participant compensation awarded under this
section.
new text end

new text begin (d) In reviewing a compensation request, the commission must consider whether the
costs presented in the participant's claim are reasonable. If the commission determines that
an eligible participant materially assisted the commission's deliberation, the commission
shall award all or part of the requested compensation, up to the maximum amounts provided
under subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Compensation; amount. new text end

new text begin (a) Compensation must not exceed $50,000 for a
single participant in any proceeding, except that:
new text end

new text begin (1) if a proceeding extends longer than 12 months, a participant may request and be
awarded compensation of up to $50,000 for costs incurred in each calendar year; and
new text end

new text begin (2) in an integrated resource plan proceeding under section 216B.2422 or a proceeding
that has been referred to the Office of Administrative Hearings for a contested case
proceeding, a participant may request and be awarded up to $75,000.
new text end

new text begin (b) No single participant may be awarded more than $200,000 under this section in a
single calendar year.
new text end

new text begin (c) Compensation requests from joint participants must be presented as a single request.
new text end

new text begin (d) Notwithstanding paragraphs (a) and (b), the commission must not, in any calendar
year, require a single public utility to pay aggregate compensation under this section that
exceeds the following amounts:
new text end

new text begin (1) $100,000, for a public utility with up to $300,000,000 annual gross operating revenue
in Minnesota;
new text end

new text begin (2) $275,000, for a public utility with at least $300,000,000 but less than $900,000,000
annual gross operating revenue in Minnesota;
new text end

new text begin (3) $375,000, for a public utility with at least $900,000,000 but less than $2,000,000,000
annual gross operating revenue in Minnesota; and
new text end

new text begin (4) $1,250,000, for a public utility with $2,000,000,000 or more annual gross operating
revenue in Minnesota.
new text end

new text begin (e) When requests for compensation from any public utility approach the limits established
in paragraph (d), the commission may give priority to requests from participants that received
less than $150,000 in total compensation during the previous two years and from participants
who represent residential ratepayers, particularly those residential ratepayers who the
participant can demonstrate have been underrepresented in past commission proceedings.
new text end

new text begin Subd. 5. new text end

new text begin Compensation; process. new text end

new text begin (a) A participant seeking compensation must file a
request and an affidavit of service with the commission, and serve a copy of the request on
each party to the proceeding. The request must be filed no more than 30 days after the later
of:
new text end

new text begin (1) the expiration of the period within which a petition for rehearing, amendment,
vacation, reconsideration, or reargument must be filed; or
new text end

new text begin (2) the date the commission issues an order following rehearing, amendment, vacation,
reconsideration, or reargument.
new text end

new text begin (b) A compensation request must include:
new text end

new text begin (1) the name and address of the participant or nonprofit organization the participant is
representing;
new text end

new text begin (2) evidence of the organization's nonprofit, tax-exempt status, if applicable;
new text end

new text begin (3) the name and docket number of the proceeding for which compensation is requested;
new text end

new text begin (4) for a nonprofit participant, evidence supporting the nonprofit organization's eligibility
for compensation under the financial hardship test under subdivision 3, paragraph (c);
new text end

new text begin (5) amounts of compensation awarded to the participant under this section during the
current year and any pending requests for compensation, itemized by docket;
new text end

new text begin (6) an itemization of the participant's costs, not including overhead costs;
new text end

new text begin (7) participant revenues dedicated for the proceeding;
new text end

new text begin (8) the total compensation request; and
new text end

new text begin (9) a narrative describing the unique contribution made to the proceeding by the
participant.
new text end

new text begin (c) A participant must comply with reasonable requests for information by the commission
and other parties or participants. A participant must reply to information requests within
ten calendar days of the date the request is received, unless doing so would place an extreme
hardship upon the replying participant. The replying participant must provide a copy of the
information to any other participant or interested person upon request. Disputes regarding
information requests may be resolved by the commission.
new text end

new text begin (d) A party or participant objecting to a request for compensation must, within 30 days
after service of the request for compensation, file a response and an affidavit of service with
the commission. A copy of the response must be served on the requesting participant and
all other parties to the proceeding.
new text end

new text begin (e) The requesting participant may file a reply with the commission within 15 days after
a response is filed under paragraph (d). A copy of the reply and an affidavit of service must
be served on all other parties to the proceeding.
new text end

new text begin (f) If additional costs are incurred by a participant as a result of additional proceedings
following the commission's initial order, the participant may file an amended request within
30 days after the commission issues an amended order. Paragraphs (b) to (e) apply to an
amended request.
new text end

new text begin (g) The commission must issue a decision on participant compensation within 120 days
of the date a request for compensation is filed by a participant.
new text end

new text begin (h) The commission may extend the deadlines in paragraphs (d), (e), and (g) for up to
30 days upon the request of a participant or on the commission's own initiative.
new text end

new text begin (i) A participant may request reconsideration of the commission's compensation decision
within 30 days of the decision date.
new text end

new text begin Subd. 6. new text end

new text begin Compensation; orders. new text end

new text begin (a) If the commission issues an order requiring payment
of participant compensation, the public utility that was the subject of the proceeding must
pay the full compensation to the participant and file proof of payment with the commission
within 30 days after the later of:
new text end

new text begin (1) the expiration of the period within which a petition for reconsideration of the
commission's compensation decision must be filed; or
new text end

new text begin (2) the date the commission issues an order following reconsideration of the commission's
order on participant compensation.
new text end

new text begin (b) If the commission issues an order requiring payment of participant compensation in
a proceeding involving multiple public utilities, the commission must apportion costs among
the public utilities in proportion to each public utility's annual revenue.
new text end

new text begin (c) The commission may issue orders necessary to allow a public utility to recover the
costs of participant compensation on a timely basis.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin By July 1, 2026, the commission must report to the chairs and ranking
minority members of the senate and house of representatives committees with primary
jurisdiction over energy policy on the operation of this section. The report must include but
is not limited to:
new text end

new text begin (1) the amount of compensation paid each year by each utility;
new text end

new text begin (2) each recipient of compensation, the commission dockets in which compensation was
awarded, and the compensation amounts; and
new text end

new text begin (3) the impact of the participation of compensated participants.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any proceeding in which the commission has not issued a final order as of that
date.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 216B.16, subdivision 10, new text end new text begin is repealed.
new text end

ARTICLE 6

CLIMATE

Section 1.

new text begin [16B.312] CONSTRUCTION MATERIALS; ENVIRONMENTAL
ANALYSIS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Carbon steel" means steel in which the main alloying element is carbon and whose
properties are chiefly dependent on the percentage of carbon present.
new text end

new text begin (c) "Commissioner" means the commissioner of administration.
new text end

new text begin (d) "Electric arc furnace" means a furnace that produces molten alloy metal and heats
the charge materials with electric arcs from carbon electrodes.
new text end

new text begin (e) "Eligible material" means:
new text end

new text begin (1) carbon steel rebar;
new text end

new text begin (2) structural steel;
new text end

new text begin (3) concrete; or
new text end

new text begin (4) asphalt paving mixtures.
new text end

new text begin (f) "Eligible project" means:
new text end

new text begin (1) new construction of a state building larger than 50,000 gross square feet of occupied
or conditioned space;
new text end

new text begin (2) renovation of more than 50,000 gross square feet of occupied or conditioned space
in a state building whose renovation cost exceeds 50 percent of the building's assessed value;
or
new text end

new text begin (3) new construction or reconstruction of two or more lane-miles of a trunk highway.
new text end

new text begin (g) "Environmental product declaration" means a supply chain specific type III
environmental product declaration that:
new text end

new text begin (1) contains a material production life cycle assessment of the environmental impacts
of manufacturing a specific product by a specific firm, including the impacts of extracting
and producing the raw materials and components that compose the product;
new text end

new text begin (2) is verified by a third party; and
new text end

new text begin (3) meets the ISO 14025 standard developed and maintained by the International
Organization for Standardization (ISO).
new text end

new text begin (h) "Global warming potential" has the meaning given in section 216H.10, subdivision
6.
new text end

new text begin (i) "Greenhouse gas" has the meaning given to "statewide greenhouse gas emissions"
in section 216H.01, subdivision 2.
new text end

new text begin (j) "Integrated steel production" means the production of iron and subsequently steel
primarily from iron ore or iron ore pellets.
new text end

new text begin (k) "Material production life cycle" means an analysis that includes the environmental
impacts of all stages of a specific product's production, from mining and processing the
product's raw materials to the process of manufacturing the product.
new text end

new text begin (l) "Rebar" means a steel reinforcing bar or rod encased in concrete.
new text end

new text begin (m) "Secondary steel production" means the production of steel from primarily ferrous
scrap and other metallic inputs that are melted and refined in an electric arc furnace.
new text end

new text begin (n) "State building" means a building owned by the state of Minnesota or a Minnesota
state agency.
new text end

new text begin (o) "Structural steel" means steel that is classified by the shape of the steel's
cross-sections, such as I, T, and C shapes.
new text end

new text begin (p) "Supply chain specific" means an environmental product declaration that includes
specific data for the production processes of the materials and components composing a
product that contribute at least 80 percent of the product's material production life cycle
global warming potential, as defined in ISO standard 21930.
new text end

new text begin Subd. 2. new text end

new text begin Standard; maximum global warming potential. new text end

new text begin (a) The commissioner shall,
after reviewing the recommendations from the Environmental Standards Procurement Task
Force made under subdivision 5, paragraph (c), establish and publish a maximum acceptable
global warming potential for each eligible material used in an eligible project, in accordance
with the following schedule:
new text end

new text begin (1) for concrete used in buildings, no later than January 15, 2026; and
new text end

new text begin (2) for carbon steel rebar and structural steel and, after conferring with the commissioner
of transportation, for asphalt paving mixtures and concrete pavement, no later than January
15, 2028.
new text end

new text begin (b) The commissioner shall, after considering nationally or internationally recognized
databases of environmental product declarations for an eligible material, establish the
maximum acceptable global warming potential for the eligible material.
new text end

new text begin (c) The commissioner may set different maximum global warming potentials for different
specific products and subproduct categories that are examples of the same eligible material
based on distinctions between eligible material production and manufacturing processes,
such as integrated versus secondary steel production.
new text end

new text begin (d) The commissioner must establish maximum global warming potentials that are
consistent with criteria in an environmental product declaration.
new text end

new text begin (e) Not later than three years after establishing the maximum global warming potential
for an eligible material under paragraph (a) and not longer than every three years thereafter
the commissioner, after conferring with the commissioner of transportation with respect to
asphalt paving mixtures and concrete pavement, shall review the maximum acceptable
global warming potential for each eligible material and for specific eligible material products.
The commissioner may adjust any of the values downward to reflect industry improvements
if, based on the process described in paragraph (b), the commissioner determines the industry
average has declined.
new text end

new text begin Subd. 3. new text end

new text begin Procurement process. new text end

new text begin The Department of Administration and the Department
of Transportation shall, after reviewing the recommendations of the Environmental Standards
Procurement Task Force made under subdivision 5, paragraph (c), establish processes for
incorporating the maximum allowable global warming potential of eligible materials into
bidding processes by the effective dates listed in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Pilot program. new text end

new text begin (a) No later than July 1, 2024, the Department of Administration
must establish a pilot program that seeks to obtain from vendors an estimate of the material
production life cycle greenhouse gas emissions of products selected by the departments
from among those procured. The pilot program must encourage, but may not require, a
vendor to submit the following data for each selected product that represents at least 90
percent of the total cost of the materials or components composing the selected product:
new text end

new text begin (1) the quantity of the product purchased by the department;
new text end

new text begin (2) a current environmental product declaration for the product;
new text end

new text begin (3) the name and location of the product's manufacturer;
new text end

new text begin (4) a copy of the vendor's Supplier Code of Conduct, if any;
new text end

new text begin (5) the names and locations of the product's actual production facilities; and
new text end

new text begin (6) an assessment of employee working conditions at the product's production facilities.
new text end

new text begin (b) The Department of Administration must construct or provide access to a publicly
accessible database, which shall be posted on the department's website and contain the data
reported to the department under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Environmental Standards Procurement Task Force. new text end

new text begin (a) No later than October
1, 2023, the commissioners of administration and transportation must establish an
Environmental Standards Procurement Task Force to examine issues surrounding the
implementation of a program requiring vendors of certain construction materials purchased
by the state to:
new text end

new text begin (1) submit environmental product declarations that assess the material production life
cycle environmental impacts of the materials to state officials as part of the procurement
process; and
new text end

new text begin (2) meet standards established by the commissioner of administration that limit
greenhouse gas emissions impacts of the materials.
new text end

new text begin (b) The task force must examine, at a minimum, the following:
new text end

new text begin (1) which construction materials should be subject to the program requirements and
which construction materials should be considered to be added, including lumber, aluminum,
glass, and insulation;
new text end

new text begin (2) what factors should be considered in establishing greenhouse gas emissions standards,
including distinctions between eligible material production and manufacturing processes,
such as integrated versus secondary steel production;
new text end

new text begin (3) a schedule for the development of standards for specific materials and for
incorporating the standards into the purchasing process, including distinctions between
eligible material production and manufacturing processes;
new text end

new text begin (4) the development and use of financial incentives to reward vendors for developing
products whose greenhouse gas emissions are below the standards;
new text end

new text begin (5) the provision of grants to defer a vendor's cost to obtain environmental product
declarations;
new text end

new text begin (6) how to ensure that lowering environmental product declaration values does not
negatively impact the durability or longevity of construction materials or built structures;
new text end

new text begin (7) how to create and manage a database for environmental product declaration data that
is consistent with data governance procedures of the state and is compatible for data sharing
with other states and federal agencies;
new text end

new text begin (8) how to account for differences among geographical regions with respect to the
availability of covered materials, fuel, and other necessary resources, and the quantity of
covered materials that the department uses or plans to use;
new text end

new text begin (9) how the issues in clauses (1) to (5) are addressed by existing programs in other states
and countries;
new text end

new text begin (10) coordinating with the federal Buy Clean Task Force established under Executive
Order 14057 and representatives of the United States Departments of Commerce, Energy,
Housing and Urban Development, and Transportation; Environmental Protection Agency;
General Services Administration; White House Office of Management and Budget; and the
White House Domestic Climate Policy Council; and
new text end

new text begin (11) any other issues the task force deems relevant.
new text end

new text begin (c) The task force shall make recommendations to the commissioners of administration
and transportation regarding:
new text end

new text begin (1) how to implement requirements that maximum global warming impacts for eligible
materials be integrated into the bidding process for eligible projects;
new text end

new text begin (2) incentive structures that can be included in bidding processes to encourage the use
of materials whose global warming potential is below the maximum established under
subdivision 2;
new text end

new text begin (3) how a successful bidder for a contract notifies the commissioner of the specific
environmental product declaration for a material used on a project;
new text end

new text begin (4) a process for waiving the requirements to procure materials below the maximum
global warming potential resulting from product supply problems, geographic
impracticability, or financial hardship;
new text end

new text begin (5) a system for awarding grants to manufacturers of eligible materials located in
Minnesota to offset the cost of obtaining environmental product declarations or otherwise
collect environmental product declaration data from manufacturers based in Minnesota;
new text end

new text begin (6) whether to use an industry average or a different method to set the maximum allowable
global warming potential, or whether that average could be used for some materials but not
others; and
new text end

new text begin (7) any other items the task force deems necessary in order to implement this section.
new text end

new text begin (d) Members of the task force must include but are not limited to representatives of:
new text end

new text begin (1) the Departments of Administration and Transportation;
new text end

new text begin (2) the Center for Sustainable Building Research at the University of Minnesota;
new text end

new text begin (3) the Aggregate and Ready Mix Association of Minnesota;
new text end

new text begin (4) the Concrete Paving Association of Minnesota;
new text end

new text begin (5) the Minnesota Asphalt Pavement Association;
new text end

new text begin (6) the Minnesota Board of Engineering;
new text end

new text begin (7) the Minnesota iron mining industry;
new text end

new text begin (8) building and transportation construction firms;
new text end

new text begin (9) suppliers of eligible materials;
new text end

new text begin (10) organized labor in the construction trades;
new text end

new text begin (11) organized labor in the manufacturing or industrial sectors;
new text end

new text begin (12) environmental advocacy organizations; and
new text end

new text begin (13) environmental justice organizations.
new text end

new text begin (e) The Department of Administration must provide meeting space and serve as staff to
the task force.
new text end

new text begin (f) The commissioner of administration or the commissioner's designee shall serve as
chair of the task force. The task force must meet at least four times annually and may convene
additional meetings at the call of the chair.
new text end

new text begin (g) The commissioner of administration shall summarize the findings and
recommendations of the task force in a report submitted to the chairs and ranking minority
members of the senate and house of representatives committees with primary jurisdiction
over state government, transportation, and energy no later than December 1, 2025, and
annually thereafter for as long as the task force continues its operations.
new text end

new text begin (h) The task force is subject to section 15.059, subdivision 6.
new text end

new text begin (i) The task force expires on January 1, 2029.
new text end

new text begin Subd. 6. new text end

new text begin Environmental product declarations; grant program. new text end

new text begin A grant program is
established in the Department of Administration to award grants to assist manufacturers to
obtain environmental product declarations. The commissioner of administration shall develop
procedures for processing grant applications and making grant awards. Grant applicants
must submit an application to the commissioner on a form prescribed by the commissioner.
The commissioner shall act as fiscal agent for the grant program and is responsible for
receiving and reviewing grant applications and awarding grants under this subdivision.
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 [216C.441] MINNESOTA CLIMATE INNOVATION FINANCE
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin (a) There is created a public body corporate
and politic to be known as the "Minnesota Climate Innovation Finance Authority," whose
purpose is to accelerate the deployment of clean energy projects, greenhouse gas emissions
reduction projects, and other qualified projects through the strategic deployment of public
funds in the form of grants, loans, credit enhancements, and other financing mechanisms
in order to leverage existing public and private sources of capital to reduce the upfront and
total cost of qualified projects and to overcome financial barriers to project adoption,
especially in low-income communities.
new text end

new text begin (b) The goals of the authority include but are not limited to:
new text end

new text begin (1) reducing Minnesota's contributions to climate change by accelerating the deployment
of clean energy projects;
new text end

new text begin (2) ensuring that all Minnesotans share the benefits of clean and renewable energy and
the opportunity to fully participate in the clean energy economy by promoting:
new text end

new text begin (i) the creation of clean energy jobs for Minnesota workers, particularly in environmental
justice communities and communities in which fossil fuel electric generating plants are
retiring; and
new text end

new text begin (ii) the principles of environmental justice in the authority's operations and funding
decisions; and
new text end

new text begin (3) maintaining energy reliability while reducing the economic burden of energy costs,
especially on low-income households.
new text end

new text begin Subd. 2. 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) "Authority" means the Minnesota Climate Innovation Finance Authority.
new text end

new text begin (c) "Board" means the Minnesota Climate Innovation Finance Authority's board of
directors established in subdivision 10.
new text end

new text begin (d) "Clean energy project" has the meaning given to "qualified project" in paragraph
(n), clauses (1) to (7).
new text end

new text begin (e) "Community navigator" means an organization that works to facilitate access to clean
energy project financing by community groups.
new text end

new text begin (f) "Credit enhancement" means a pool of capital set aside to cover potential losses on
loans and other investments made by financing entities. Credit enhancement includes but
is not limited to loan loss reserves and loan guarantees.
new text end

new text begin (g) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f).
new text end

new text begin (h) "Environmental justice" means that:
new text end

new text begin (1) communities of color, Indigenous communities, and low-income communities have
a healthy environment and are treated fairly when environmental statutes, rules, and policies
are developed, adopted, implemented, and enforced; and
new text end

new text begin (2) in all decisions that have the potential to affect the environment of an environmental
justice community or the public health of an environmental justice community's residents,
due consideration is given to the history of the area's and the area's residents' cumulative
exposure to pollutants and to any current socioeconomic conditions that increase the physical
sensitivity of the area's residents to additional exposure to pollutants.
new text end

new text begin (i) "Environmental justice community" means a community in Minnesota that, based
on the most recent data published by the United States Census Bureau, meets one or more
of the following criteria:
new text end

new text begin (1) 40 percent or more of the community's total population is nonwhite;
new text end

new text begin (2) 35 percent or more of households in the community have an income that is at or
below 200 percent of the federal poverty level;
new text end

new text begin (3) 40 percent or more of the community's residents over the age of five have limited
English proficiency; or
new text end

new text begin (4) the community is located within Indian country, as defined in United States Code,
title 18, section 1151.
new text end

new text begin (j) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by
anthropogenic sources.
new text end

new text begin (k) "Loan loss reserve" means a pool of capital set aside to reimburse a private lender
if a customer defaults on a loan, up to an agreed-upon percentage of loans originated by the
private lender.
new text end

new text begin (l) "Microgrid system" means an electrical grid that:
new text end

new text begin (1) serves a discrete geographical area from distributed energy resources; and
new text end

new text begin (2) can operate independently from the central electric grid on a temporary basis.
new text end

new text begin (m) "Project labor agreement" means a prehire collective bargaining agreement with a
council of building and construction trades labor organizations (1) prohibiting strikes,
lockouts, and similar disruptions, and (2) providing for a binding procedure to resolve labor
disputes on the project.
new text end

new text begin (n) "Qualified project" means a project, technology, product, service, or measure
promoting energy efficiency, clean energy, electrification, or water conservation and quality
that:
new text end

new text begin (1) substantially reduces greenhouse gas emissions;
new text end

new text begin (2) reduces energy use without diminishing the level of service;
new text end

new text begin (3) increases the deployment of renewable energy projects, energy storage systems,
district heating, smart grid technologies, or microgrid systems;
new text end

new text begin (4) replaces existing fossil-fuel-based technology with an end-use electric technology;
new text end

new text begin (5) supports the development and deployment of electric vehicle charging stations and
associated infrastructure, electric buses, and electric fleet vehicles;
new text end

new text begin (6) reduces water use or protects, restores, or preserves the quality of surface waters; or
new text end

new text begin (7) incentivizes customers to shift demand in response to changes in the price of electricity
or when system reliability is not jeopardized.
new text end

new text begin (o) "Renewable energy" has the meaning given in section 216B.1691, subdivision 1,
paragraph (c), clauses (1), (2), and (4), and includes fuel cells generated from renewable
energy.
new text end

new text begin (p) "Securitization" means the conversion of an asset composed of individual loans into
marketable securities.
new text end

new text begin (q) "Smart grid" means a digital technology that:
new text end

new text begin (1) allows for two-way communication between a utility and the utility's customers; and
new text end

new text begin (2) enables the utility to control power flow and load in real time.
new text end

new text begin Subd. 3. new text end

new text begin General powers. new text end

new text begin (a) For the purpose of exercising the specific powers granted
in this section, the authority has the general powers granted in this subdivision.
new text end

new text begin (b) The authority may:
new text end

new text begin (1) hire an executive director and staff to conduct the authority's operations;
new text end

new text begin (2) sue and be sued;
new text end

new text begin (3) have a seal and alter the seal;
new text end

new text begin (4) acquire, hold, lease, manage, and dispose of real or personal property for the
authority's corporate purposes;
new text end

new text begin (5) enter into agreements, including cooperative financing agreements, contracts, or
other transactions, with any federal or state agency, county, local unit of government,
regional development commission, person, domestic or foreign partnership, corporation,
association, or organization;
new text end

new text begin (6) acquire by purchase real property, or an interest therein, in the authority's own name
where acquisition is necessary or appropriate;
new text end

new text begin (7) provide general technical and consultative services related to the authority's purpose;
new text end

new text begin (8) promote research and development in matters related to the authority's purpose;
new text end

new text begin (9) analyze greenhouse gas emissions reduction project financing needs in the state and
recommend measures to alleviate any shortage of financing capacity;
new text end

new text begin (10) contract with any governmental or private agency or organization, legal counsel,
financial advisor, investment banker, or others to assist in the exercise of the authority's
powers;
new text end

new text begin (11) enter into agreements with qualified lenders or others insuring or guaranteeing to
the state the payment of qualified loans or other financing instruments; and
new text end

new text begin (12) accept on behalf of the state any gift, grant, or interest in money or personal property
tendered to the state for any purpose pertaining to the authority's activities.
new text end

new text begin Subd. 4. new text end

new text begin Authority duties. new text end

new text begin (a) The authority must:
new text end

new text begin (1) serve as a financial resource to reduce the upfront and total costs of implementing
qualified projects;
new text end

new text begin (2) ensure that all financed projects reduce greenhouse gas emissions;
new text end

new text begin (3) ensure that financing terms and conditions offered are well-suited to qualified projects;
new text end

new text begin (4) strategically prioritize the use of the authority's funds to leverage private investment
in qualified projects, with the aim of achieving a high ratio of private to public money
invested through funding mechanisms that support, enhance, and complement private lending
and investment;
new text end

new text begin (5) coordinate with existing federal, state, local, utility, and other programs to ensure
that the authority's resources are being used most effectively to add to and complement
those programs;
new text end

new text begin (6) stimulate demand for qualified projects by:
new text end

new text begin (i) contracting with the department's Energy Information Center and community
navigators to provide information to project participants about federal, state, local, utility,
and other authority financial assistance for qualifying projects, and technical information
on energy conservation and renewable energy measures;
new text end

new text begin (ii) forming partnerships with contractors and informing contractors about the authority's
financing programs;
new text end

new text begin (iii) developing innovative marketing strategies to stimulate project owner interest,
especially in underserved communities; and
new text end

new text begin (iv) incentivizing financing entities to increase activity in underserved markets;
new text end

new text begin (7) finance projects in all regions of the state;
new text end

new text begin (8) develop participant eligibility standards and other terms and conditions for financial
support provided by the authority;
new text end

new text begin (9) develop and administer:
new text end

new text begin (i) policies to collect reasonable fees for authority services; and
new text end

new text begin (ii) risk management activities to support ongoing authority activities;
new text end

new text begin (10) develop consumer protection standards governing the authority's investments to
ensure that financial support is provided responsibly and transparently, and is in the financial
interest of participating project owners;
new text end

new text begin (11) develop methods to accurately measure the impact of the authority's activities,
particularly on low-income communities and on greenhouse gas emissions reductions;
new text end

new text begin (12) hire an executive director and sufficient staff with the appropriate skills and
qualifications to carry out the authority's programs, making an affirmative effort to recruit
and hire a director and staff who are from, or share the interests of, the communities the
authority must serve;
new text end

new text begin (13) apply for, either as a direct or subgrantee applicant, and accept Greenhouse Gas
Reduction Fund grants authorized by the federal Clean Air Act, United States Code, title
42, section 7434, paragraph (a), clauses (2) and (3). If the application deadlines for these
grants are earlier than is practical for the authority to meet, the commissioner shall apply
on behalf of the authority. In all cases, applications for these funds by or on behalf of the
authority must be coordinated with all known Minnesota applicants; and
new text end

new text begin (14) ensure that authority contracts with all third-party administrators, contractors, and
subcontractors contain required covenants, representations, and warranties specifying that
contracted third parties are agents of the authority, and that all acts of contracted third parties
are considered acts of the authority, provided that the act is within the contracted scope of
work.
new text end

new text begin (b) The authority may:
new text end

new text begin (1) employ credit enhancement mechanisms that reduce financial risk for financing
entities by providing assurance that a limited portion of a loan or other financial instrument
is assumed by the authority via a loan loss reserve, loan guarantee, or other mechanism;
new text end

new text begin (2) co-invest in a qualified project by providing senior or subordinated debt, equity, or
other mechanisms in conjunction with other investment, co-lending, or financing;
new text end

new text begin (3) aggregate small and geographically dispersed qualified projects in order to diversify
risk or secure additional private investment through securitization or similar resale of the
authority's interest in a completed qualified project;
new text end

new text begin (4) expend up to 25 percent of money appropriated to the authority for start-up purposes,
which may be used for financing programs and project investments authorized under this
section prior to adoption of the strategic plan required under subdivision 7 and the investment
strategy under subdivision 8; and
new text end

new text begin (5) require a specific project to agree to implement a project labor agreement as a
condition of receiving financing from the authority.
new text end

new text begin Subd. 5. new text end

new text begin Underserved market analysis. new text end

new text begin (a) Before developing a financing program,
the authority must conduct an analysis of the financial market the authority is considering
entering in order to determine the extent to which the market is underserved and to ensure
that the authority's activities supplement, and do not duplicate or supplant, the efforts of
financing entities currently serving the market. The analysis must address the nature and
extent of any barriers or gaps that may be preventing financing entities from adequately
serving the market, and must examine present and projected future efforts of existing
financing entities, federal, state, and local governments, and of utilities and others to serve
the market.
new text end

new text begin (b) In determining whether the authority should enter a market, the authority must
consider:
new text end

new text begin (1) whether serving the market advances the authority's policy goals;
new text end

new text begin (2) the extent to which the market is currently underserved;
new text end

new text begin (3) the unique tools the authority would deploy to overcome existing market barriers or
gaps;
new text end

new text begin (4) how the authority would market the program to potential participants; and
new text end

new text begin (5) potential financing partners and the role financing partners would play in
complementing the authority's activities.
new text end

new text begin (c) Before providing any direct loans to residential borrowers, the authority must issue
a request for information to existing known financing entities, specifying the market need
and the authority's goals in meeting the underserved market segment, and soliciting each
financing entity's:
new text end

new text begin (1) current financing offerings for that specific market;
new text end

new text begin (2) prior efforts to meet that specific market; and
new text end

new text begin (3) plans and capabilities to serve that specific market.
new text end

new text begin (d) The authority may only provide direct loans to residential borrowers if the authority
certifies that no financing entity is currently able to meet the specific underserved market
need and the authority's goals, and that the authority's entry into the market does not supplant
or duplicate any existing financing activities in that specific market.
new text end

new text begin Subd. 6. new text end

new text begin Authority lending practices; labor and consumer protection standards. new text end

new text begin (a)
In determining the projects in which the authority will participate, the authority must give
preference to projects that:
new text end

new text begin (1) maximize the creation of high-quality employment and apprenticeship opportunities
for local workers, consistent with the public interest, especially workers from environmental
justice communities, labor organizations, and Minnesota communities hosting retired or
retiring electric generation facilities, including workers previously employed at retiring
facilities;
new text end

new text begin (2) utilize energy technologies produced domestically that received an advanced
manufacturing tax credit under section 45X of the Internal Revenue Code, as allowed under
the federal Inflation Reduction Act of 2022, Public Law 117-169;
new text end

new text begin (3) certify, for all contractors and subcontractors, that the rights of workers to organize
and unionize are recognized; and
new text end

new text begin (4) agree to implement a project labor agreement.
new text end

new text begin (b) The authority must require, for all projects for which the authority provides financing,
that:
new text end

new text begin (1) if the budget is $100,000 or more, all contractors and subcontractors:
new text end

new text begin (i) must pay no less than the prevailing wage rate, as defined in section 177.42,
subdivision 6; and
new text end

new text begin (ii) are subject to the requirements and enforcement provisions under sections 177.27,
177.30, 177.32, 177.41 to 177.43, and 177.45, including the posting of prevailing wage
rates, prevailing hours of labor, and hourly basic rates of pay for all trades on the project in
at least one conspicuous location at the project site;
new text end

new text begin (2) financing is not offered without first ensuring that the participants meet the authority's
underwriting criteria; and
new text end

new text begin (3) any loan made to a homeowner for a project on the homeowner's residence complies
with section 47.59 and the following federal laws:
new text end

new text begin (i) the Truth in Lending Act, United States Code, title 15, section 1601 et seq.;
new text end

new text begin (ii) the Fair Credit Reporting Act, United States Code, title 15, section 1681;
new text end

new text begin (iii) the Equal Credit Opportunity Act, United States Code, title 15, section 1691 et seq.;
and
new text end

new text begin (iv) the Fair Debt Collection Practices Act, United States Code, title 15, section 1692.
new text end

new text begin (c) The authority and any third-party administrator, contractor, subcontractor, or agent
that conducts lending, financing, investment, marketing, administration, servicing, or
installation of measures in connection with a qualified project financed in whole or in part
with authority funds is subject to sections 325D.43 to 325D.48; 325F.67 to 325F.71; 325G.06
to 325G.14; 325G.29 to 325G.37; and 332.37.
new text end

new text begin (d) For the purposes of this section, "local workers" means Minnesota residents who
permanently reside within 150 miles of the location of a proposed project in which the
authority is considering to participate.
new text end

new text begin Subd. 7. new text end

new text begin Strategic plan. new text end

new text begin (a) By December 15, 2024, and each December 15 in
even-numbered years thereafter, the authority must develop and adopt a strategic plan that
prioritizes the authority's activities over the next two years. A strategic plan must:
new text end

new text begin (1) identify targeted underserved markets for qualified projects in Minnesota;
new text end

new text begin (2) develop specific programs to overcome market impediments through access to
authority financing and technical assistance; and
new text end

new text begin (3) develop outreach and marketing strategies designed to make potential project
developers, participants, and communities aware of financing and technical assistance
available from the authority, including the deployment of community navigators.
new text end

new text begin (b) Elements of the strategic plan must be informed by the authority's analysis of the
market for qualified projects and by the authority's experience under the previous strategic
plan, including the degree to which performance targets were or were not achieved by each
financing program. In addition, the authority must actively seek input regarding activities
that should be included in the strategic plan from stakeholders, environmental justice
communities, the general public, and participants, including via meetings required under
subdivision 9.
new text end

new text begin (c) The authority must establish annual targets in a strategic plan for each financing
program regarding the number of projects, level of authority investments, greenhouse gas
emissions reductions, and installed generating capacity or energy savings the authority
hopes to achieve, including separate targets for authority activities undertaken in
environmental justice communities.
new text end

new text begin (d) The authority's targets and strategies must be designed to ensure that no less than 40
percent of the direct benefits of authority activities flow to environmental justice communities
as defined under subdivision 2, by the United States Department of Energy, or as modified
by the department.
new text end

new text begin Subd. 8. new text end

new text begin Investment strategy; content; process. new text end

new text begin (a) No later than December 15, 2024,
and every four years thereafter, the authority must adopt a long-term investment strategy
to ensure the authority's paramount goal to reduce greenhouse gas emissions is reflected in
all of the authority's operations. The investment strategy must address:
new text end

new text begin (1) the types of qualified projects the authority should focus on;
new text end

new text begin (2) gaps in current qualified project financing that present the greatest opportunities for
successful action by the authority;
new text end

new text begin (3) how the authority can best position itself to maximize the authority's impact without
displacing, subsidizing, or assuming risk that should be shared with financing entities;
new text end

new text begin (4) financing tools that will be most effective in achieving the authority's goals;
new text end

new text begin (5) partnerships the authority should establish with other organizations to increase the
likelihood of success; and
new text end

new text begin (6) how values of equity, environmental justice, and geographic balance can be integrated
into all investment operations of the authority.
new text end

new text begin (b) In developing an investment strategy, the authority must consult, at a minimum, with
similar organizations in other states, lending authorities, state agencies, utilities,
environmental and energy policy nonprofits, labor organizations, and other organizations
that can provide valuable advice on the authority's activities.
new text end

new text begin (c) The long-term investment strategy must contain provisions ensuring that:
new text end

new text begin (1) authority investments are not made solely to reduce private risk; and
new text end

new text begin (2) private financing entities do not unilaterally control the terms of investments to which
the authority is a party.
new text end

new text begin (d) The board must submit a draft long-term investment strategy for comment to each
of the groups and individuals the board consults under paragraph (b) and to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over energy finance and policy, and must post the draft strategy on the
authority's website. The authority must accept written comments on the draft strategy for
at least 30 days and must consider the comments in preparing the final long-term investment
strategy.
new text end

new text begin Subd. 9. new text end

new text begin Public communications and outreach. new text end

new text begin The authority must:
new text end

new text begin (1) maintain a public website that provides information about the authority's operations,
current financing programs, and practices, including rates, terms, and conditions; the number
and amount of investments by project type; the number of jobs created; the financing
application process; and other information;
new text end

new text begin (2) periodically issue an electronic newsletter to stakeholders and the public containing
information on the authority's products, programs, and services and key authority events
and decisions; and
new text end

new text begin (3) hold quarterly meetings accessible online to update the general public on the
authority's activities, report progress being made in regard to the authority's strategic plan
and long-term investment strategy, and invite audience questions regarding authority
programs.
new text end

new text begin Subd. 10. new text end

new text begin Board of directors. new text end

new text begin (a) The Minnesota Climate Innovation Finance Authority
board of directors shall consist of the following 13 members:
new text end

new text begin (1) the commissioner of commerce, or the commissioner's designee;
new text end

new text begin (2) the commissioner of labor and industry, or the commissioner's designee;
new text end

new text begin (3) the commissioner of the Minnesota Pollution Control Agency, or the commissioner's
designee;
new text end

new text begin (4) the commissioner of employment and economic development, or the commissioner's
designee;
new text end

new text begin (5) the commissioner of the Minnesota Housing Finance Agency, or the commissioner's
designee;
new text end

new text begin (6) the chair of the Minnesota Indian Affairs Council, or the chair's designee; and
new text end

new text begin (7) seven additional members appointed by the governor, as follows:
new text end

new text begin (i) one member representing either a municipal electric utility or a cooperative electric
association;
new text end

new text begin (ii) one member, appointed after the governor consults with labor organizations in the
state, must be a representative of a labor union with experience working on clean energy
projects;
new text end

new text begin (iii) one member with expertise in the impact of climate change on Minnesota
communities, particularly low-income communities;
new text end

new text begin (iv) one member with expertise in financing projects at a community bank, credit union,
community development institution, or local government;
new text end

new text begin (v) one member with expertise in sustainable development and energy conservation;
new text end

new text begin (vi) one member with expertise in environmental justice; and
new text end

new text begin (vii) one member with expertise in investment fund management or financing and
deploying clean energy technologies.
new text end

new text begin (b) At least two members appointed to the board must permanently reside outside the
metropolitan area, as defined in section 473.121, subdivision 2. The board must collectively
reflect the geographic and ethnic diversity of the state.
new text end

new text begin (c) Board members appointed under paragraph (a), clause (6), shall serve a term of four
years, except that the initial appointments made under clause (6), items (i) to (iii), shall be
for two-year terms, and the initial appointments made under clause (6), items (iv) to (vi),
shall be for three-year terms.
new text end

new text begin (d) Members appointed to the board must:
new text end

new text begin (1) provide evidence of a commitment to the authority's purposes and goals; and
new text end

new text begin (2) not hold any personal or professional conflicts of interest related to the authority's
activities, including with respect to the member's financial investments and employment or
the financial investments and employment of the member's immediate family members.
new text end

new text begin (e) The governor must make the appointments required under this section no later than
October 1, 2023.
new text end

new text begin (f) The initial meeting of the board of directors must be held no later than November
17, 2023. At the initial meeting, the board shall elect a chair and vice-chair by majority vote
of the members present.
new text end

new text begin (g) The authority shall contract with the department to provide administrative and
technical services to the board and to prospective borrowers, especially those serving or
located in environmental justice communities.
new text end

new text begin (h) Compensation of board members, removal of members, and filling of vacancies are
governed by section 15.0575.
new text end

new text begin (i) Board members may be reappointed for up to two full terms.
new text end

new text begin (j) A majority of board members, excluding vacancies, constitutes a quorum for the
purpose of conducting business and exercising powers, and for all other purposes. Action
may be taken by the authority upon a vote of a majority of the quorum present.
new text end

new text begin (k) Board members and officers are not personally liable, either jointly or severally, for
any debt or obligation created or incurred by the authority.
new text end

new text begin Subd. 11. new text end

new text begin Report; audit. new text end

new text begin Beginning February 1, 2024, the authority must annually
submit a comprehensive report on the authority's activities during the previous year to the
governor and the chairs and ranking minority members of the legislative committees with
primary jurisdiction over energy policy. The report must contain, at a minimum, information
on:
new text end

new text begin (1) the amount of authority capital invested, by project type;
new text end

new text begin (2) the amount of private and public capital leveraged by authority investments, by
project type;
new text end

new text begin (3) the number of qualified projects supported, by project type and location within
Minnesota, including in environmental justice communities;
new text end

new text begin (4) the estimated number of jobs created for local workers and nonlocal workers, the
ratio of projects subject to and exempt from prevailing wage requirements under subdivision
6, paragraph (b), and tax revenue generated as a result of the authority's activities;
new text end

new text begin (5) estimated reductions in greenhouse gas emissions resulting from the authority's
activities;
new text end

new text begin (6) the number of clean energy projects financed in low- and moderate-income
households;
new text end

new text begin (7) a narrative describing the progress made toward the authority's equity, social, and
labor standards goals; and
new text end

new text begin (8) a financial audit conducted by an independent party.
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.

Minnesota Statutes 2022, section 216H.02, subdivision 1, is amended to read:

Subdivision 1.

Greenhouse gas emissions-reduction goal.

new text begin (a) new text end It is the goal of the state
to reduce statewide greenhouse gas emissions across all sectors producing deleted text begin those deleted text end new text begin greenhouse
gas new text end emissions deleted text begin to a level at least 15 percent below 2005 levels by 2015, to a level at least 30
percent below 2005 levels by 2025, and to a level at least 80 percent below 2005 levels by
2050. deleted text end new text begin by at least the following amounts, compared with the level of emissions in 2005:
new text end

new text begin (1) 15 percent by 2015;
new text end

new text begin (2) 30 percent by 2025;
new text end

new text begin (3) 50 percent by 2030; and
new text end

new text begin (4) to net zero by 2050.
new text end

new text begin (b) To the maximum extent practicable, actions taken to achieve these goals must avoid
causing disproportionate adverse impacts to residents of communities that are or have been
incommensurately exposed to pollution affecting human health and environmental quality.
new text end

new text begin (c) new text end The deleted text begin levels shall deleted text end new text begin targets must new text end be reviewed deleted text begin based on the climate change action plan
study deleted text end new text begin annually by the commissioner of the Pollution Control Agency, taking into account
the latest scientific research on the impacts of climate change and strategies to reduce
greenhouse gas emissions published by the Intergovernmental Panel on Climate Change new text end . new text begin
The commissioner must forward any recommended changes to the targets to the chairs and
ranking minority members of legislative committees with primary jurisdiction over climate
change and environmental policy.
new text end

new text begin (d) For the purposes of the subdivision, "net zero" means:
new text end

new text begin (1) statewide greenhouse gas emissions equal to zero; or
new text end

new text begin (2) the balance of annual statewide greenhouse gas emissions, minus any terrestrial
sequestration of statewide greenhouse gas emissions, equals zero or less.
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 begin LOCAL CLIMATE ACTION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section, the following terms have
the meanings given:
new text end

new text begin (1) "climate change" means a change in global or regional climate patterns associated
with increased levels of greenhouse gas emissions entering the atmosphere largely as a
result of human activity;
new text end

new text begin (2) "commissioner" means the commissioner of the Pollution Control Agency;
new text end

new text begin (3) "eligible applicant" means a political subdivision, an organization exempt from
taxation under section 501(c)(3) of the Internal Revenue Code, or an educational institution;
new text end

new text begin (4) "greenhouse gas emission" means an emission of carbon dioxide, methane, nitrous
oxide, chlorofluorocarbons, hydrofluorocarbons, sulfur hexafluoride, and other gases that
trap heat in the atmosphere;
new text end

new text begin (5) "local jurisdiction" means the geographic area in which grant activities take place;
and
new text end

new text begin (6) "political subdivision" means:
new text end

new text begin (i) a county; home rule charter or statutory city or town; regional development
commission established under Minnesota Statutes, section 462.387; or any other local
political subdivision; or
new text end

new text begin (ii) a Tribal government, as defined in Minnesota Statutes, section 116J.64, subdivision
4.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a local climate action grant
program in the Pollution Control Agency. The purpose of the program is to provide grants
to support local jurisdictions to address climate change by developing and implementing
plans of action or creating new organizations and institutions to devise policies and programs
that:
new text end

new text begin (1) enable local jurisdictions to adapt to extreme weather events and a changing climate;
or
new text end

new text begin (2) reduce the local jurisdiction's contributions to the causes of climate change.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) Application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
procedures for soliciting and reviewing applications and for awarding grants under this
section.
new text end

new text begin (b) Eligible applicants for a grant under this section must be located in or conduct the
preponderance of the applicant's work in the local jurisdiction where the proposed grant
activities take place.
new text end

new text begin Subd. 4. new text end

new text begin Awarding grants. new text end

new text begin (a) In awarding grants under this section, the commissioner
must give preference to proposals that seek to involve a broad array of community residents,
organizations, and institutions in the local jurisdiction's efforts to address climate change.
new text end

new text begin (b) The commissioner shall endeavor to award grants under this section to applicants in
all regions of the state.
new text end

new text begin Subd. 5. new text end

new text begin Grant amounts. new text end

new text begin (a) A grant awarded under this section must not exceed
$50,000.
new text end

new text begin (b) A grant awarded under this section for activities taking place in a local jurisdiction
whose population equals or exceeds 20,000 must be matched 50 percent with local funds.
new text end

new text begin (c) A grant awarded under this section for activities taking place in a local jurisdiction
whose population is under 20,000 must be matched a minimum of five percent with local
funds or equivalent in-kind services.
new text end

new text begin Subd. 6. new text end

new text begin Contract; greenhouse gas emissions data. new text end

new text begin The commissioner shall contract
with an independent consultant to estimate the annual amount of greenhouse gas emissions
generated within political subdivisions awarded a grant under this section that the
commissioner determines need the data in order to carry out the proposed grant activities.
The information must contain emissions data for the most recent three years available, and
must conform with the ICLEI United States Community Protocol for Accounting and
Reporting of Greenhouse Gas Emissions, including, at a minimum, the Basic Emissions
Generating Activities described in the protocol.
new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin The Pollution Control Agency shall provide directly or
contract with an entity outside the agency to provide technical assistance to applicants
proposing to develop an action plan under this section, including greenhouse gas emissions
estimates developed under subdivision 6, and examples of actions taken and plans developed
by other local communities in Minnesota and elsewhere.
new text end

new text begin Subd. 8. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section may be used only to:
new text end

new text begin (1) provide grants as specified in this section;
new text end

new text begin (2) pay a consultant for contracted services provided under subdivisions 6 and 7; and
new text end

new text begin (3) reimburse the reasonable expenses incurred by the Pollution Control Agency to
provide technical assistance to applicants and to administer the grant program.
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

ARTICLE 7

SOLAR

Section 1.

Minnesota Statutes 2022, section 116C.7792, is amended to read:

116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.

(a) The utility subject to section 116C.779 shall operate a program to provide solar
energy production incentives for solar energy systems of no more than a total aggregate
nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided that the aggregate capacity of all systems at the customer location does
not exceed 40 kilowatts.

(b) The program is funded by money withheld from transfer to the renewable development
account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must
be placed in a separate account for the purpose of the solar energy production incentive
program operated by the utility and not for any other program or purpose.

(c) Funds allocated to the solar energy production incentive program in 2019 and 2020
remain available to the solar energy production incentive program.

(d) The following amounts are allocated to the solar energy production incentive program:

(1) $10,000,000 in 2021;

(2) $10,000,000 in 2022;

(3) $5,000,000 in 2023; deleted text begin and
deleted text end

(4) deleted text begin $5,000,000 deleted text end new text begin $10,000,000 new text end in 2024 deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) $15,000,000 in 2025;
new text end

new text begin (6) $15,000,000 in 2026; and
new text end

new text begin (7) $15,000,000 in 2027.
new text end

new text begin (e) Notwithstanding the Department of Commerce's November 14, 2018, decision in
Docket No. E002/M-13-1015 regarding operation of the utility's solar energy production
incentive program, of the amounts allocated under paragraph (d), clauses (3), (4), and (5),
$5,000,000 in each year must be reserved for solar energy systems whose installation meets
the eligibility standards for the low-income program established in the November 14, 2018,
decision or successor decisions of the department. All other program operations of the solar
energy production incentive program are governed by the provisions of the November 14,
2018, decision or successor decisions of the department.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end Funds allocated to the solar energy production incentive program that have not
been committed to a specific project at the end of a program year remain available to the
solar energy production incentive program.

deleted text begin (f) deleted text end new text begin (g) new text end Any unspent amount remaining on January 1, deleted text begin 2025 deleted text end new text begin 2028 new text end , must be transferred to
the renewable development account.

deleted text begin (g) deleted text end new text begin (h) new text end A solar energy system receiving a production incentive under this section must
be sized to less than 120 percent of the customer's on-site annual energy consumption when
combined with other distributed generation resources and subscriptions provided under
section 216B.1641 associated with the premise. The production incentive must be paid for
ten years commencing with the commissioning of the system.

deleted text begin (h) deleted text end new text begin (i) new text end The utility must file a plan to operate the program with the commissioner of
commerce. The utility may not operate the program until it is approved by the commissioner.
A change to the program to include projects up to a nameplate capacity of 40 kilowatts or
less does not require the utility to file a plan with the commissioner. Any plan approved by
the commissioner of commerce must not provide an increased incentive scale over prior
years unless the commissioner demonstrates that changes in the market for solar energy
facilities require an increase.

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 [116C.7793] SOLAR ENERGY; CONTINGENCY ACCOUNT.
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) "Agency" means the Minnesota Pollution Control Agency.
new text end

new text begin (c) "Area C" means the site located west of Mississippi River Boulevard in St. Paul that
served as an industrial waste dump for the former Ford Twin Cities Assembly Plant.
new text end

new text begin (d) "Corrective action determination" means a decision by the agency regarding actions
to be taken to remediate contaminated soil and groundwater at Area C.
new text end

new text begin (e) "Owner" means the owner of a solar energy generating system planned to be deployed
at Area C.
new text end

new text begin (f) "Solar energy generating system" has the meaning given in section 216E.01,
subdivision 9a.
new text end

new text begin Subd. 2. new text end

new text begin Account established. new text end

new text begin The Area C contingency account is established as a
separate account in the special revenue fund in the state treasury. Transfers and appropriations
to the account, and any earnings or dividends accruing to assets in the account, must be
credited to the account. The commissioner shall serve as fiscal agent and shall manage the
account.
new text end

new text begin Subd. 3. new text end

new text begin Distribution of funds; conditions. new text end

new text begin Money from the account is appropriated
to the commissioner and may be distributed to the owner of a solar energy generating system
planned to be deployed at Area C under the following conditions:
new text end

new text begin (1) the agency issues a corrective action determination after the owner has begun to
design or construct the project, and implementation of the corrective action results in a need
for (i) the project to be redesigned, or (ii) construction to be interrupted or altered; or
new text end

new text begin (2) the agency issues a corrective action determination whose work plan results in
temporary cessation or partial or complete removal of the solar energy generating system
after it has become operational.
new text end

new text begin Subd. 4. new text end

new text begin Distribution of funds; process. new text end

new text begin (a) The owner may file a request for distribution
of funds from the commissioner if either of the conditions in subdivision 3 occur. The filing
must (1) describe the nature of the impact of the work plan that results in economic losses
to the owner, and (2) include a reasonable estimate of the amount of those losses.
new text end

new text begin (b) The owner must provide the commissioner with information the commissioner
determines to be necessary to assist in the review of the filing required under this subdivision.
new text end

new text begin (c) The commissioner shall review the owner's filing within 60 days of submission and
shall approve a request the commissioner determines is reasonable.
new text end

new text begin Subd. 5. new text end

new text begin Expenditures. new text end

new text begin Money distributed by the commissioner to the owner under this
section may be used by the owner only to pay for:
new text end

new text begin (1) removal, storage, and transportation costs incurred for removal of the solar energy
generating system or any associated infrastructure, and any costs to reinstall equipment;
new text end

new text begin (2) costs of redesign or new equipment or infrastructure made necessary by the activities
of the agency's work plan;
new text end

new text begin (3) lost revenues resulting from the inability of the solar energy generating system to
generate sufficient electricity to fulfill the terms of the power purchase agreement between
the owner and the purchaser of electricity generated by the solar energy generating system;
new text end

new text begin (4) other damages incurred under the power purchase agreement resulting from the
cessation of operations made necessary by the activities of the agency's work plan; and
new text end

new text begin (5) the cost of energy required to replace the energy that was to be generated by the solar
energy generating system and purchased under the power purchase agreement.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin Beginning July 1, 2026, and every three years thereafter, the agency
must submit a written report to the chairs and ranking minority members of the senate and
house of representatives committees with jurisdiction over environment and energy assessing
the likelihood of the agency approving a corrective action determination to remediate Area
C.
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.

Minnesota Statutes 2022, section 216B.164, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Customer's access to electricity usage data. new text end

new text begin A utility must provide a
customer's electricity usage data to the customer within ten days of the date the utility
receives a request from the customer that is accompanied by evidence that the energy usage
data is relevant to the interconnection of a qualifying facility on behalf of the customer. For
the purposes of this subdivision, "electricity usage data" includes but is not limited to: (1)
the total amount of electricity used by a customer monthly; (2) usage by time period if the
customer operates under a tariff where costs vary by time of use; and (3) usage data that is
used to calculate a customer's demand charge.
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.

Minnesota Statutes 2022, section 216B.1641, is amended to read:

216B.1641 COMMUNITY SOLAR GARDEN.

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) "Subscribed energy" means electricity generated by the community solar garden that
is attributable to a subscriber's subscription.
new text end

new text begin (c) "Subscriber" means a retail customer who owns one or more subscriptions of a
community solar garden interconnected with the retail customer's utility.
new text end

new text begin (d) "Subscription" means a contract between a subscriber and the owner of a solar garden.
new text end

new text begin Subd. 2. new text end

new text begin Solar garden; project requirements. new text end

(a) deleted text begin The deleted text end new text begin Each new text end public utility deleted text begin subject to
section 116C.779 deleted text end new text begin providing electric service at retail to customers in Minnesota new text end shall file by
deleted text begin September 30, 2013 deleted text end new text begin January 15, 2024 new text end , a plan with the commission to operate a community
solar garden program which shall begin operations within 90 days after commission approval
of the plan. deleted text begin Other public utilities may file an application at their election. deleted text end The community
solar garden program must be designed to offset the energy use of not less than five
subscribers in each community solar garden facility of which no single subscriber has more
than a 40 percent interest. The owner of the community solar garden may be a public utility
or any other entity or organization that contracts to sell the output from the community solar
garden to the utility under section 216B.164. There shall be no limitation on the number or
cumulative generating capacity of community solar garden facilities other than the limitations
imposed under section 216B.164, subdivision 4c, or other limitations provided in law or
regulations.

(b) A solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must
have a nameplate capacity of no more than deleted text begin one megawatt deleted text end new text begin five megawatts new text end . Each subscription
shall be sized to represent at least 200 watts of the community solar garden's generating
capacity and to supply, when combined with other distributed generation resources serving
the premises, no more than 120 percent of the average annual consumption of electricity
by each subscriber at the premises to which the subscription is attributed.

(c) The solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility deleted text begin located in
the same county or a county contiguous to where the facility is located deleted text end .

(d) The public utility must purchase from the community solar garden all energy generated
by the solar garden. The purchase shall be at the rate calculated under section 216B.164,
subdivision 10, or, until that rate for the public utility has been approved by the commission,
the applicable retail rate. A solar garden is eligible for any incentive programs offered under
section 116C.7792. A subscriber's portion of the purchase shall be provided by a credit on
the subscriber's bill.

new text begin Subd. 3. new text end

new text begin Solar garden plan; requirements; nonutility status. new text end

deleted text begin (e) deleted text end new text begin (a) new text end The commission
may approve, disapprove, or modify a community solar garden program. Any plan approved
by the commission must:

(1) reasonably allow for the creation, financing, and accessibility of community solar
gardens;

(2) establish uniform standards, fees, and processes for the interconnection of community
solar garden facilities that allow the utility to recover reasonable interconnection costs for
each community solar garden;

(3) not apply different requirements to utility and nonutility community solar garden
facilities;

(4) be consistent with the public interest;

(5) identify the information that must be provided to potential subscribers to ensure fair
disclosure of future costs and benefits of subscriptions;

(6) include a program implementation schedule;

(7) identify all proposed rules, fees, and charges; deleted text begin and
deleted text end

(8) identify the means by which the program will be promoted deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) require an owner of a solar garden to submit a report that meets the requirements of
section 216C.51, subdivisions 2 and 3, each year the solar garden is in operation.
new text end

deleted text begin (f) deleted text end new text begin (b) new text end Notwithstanding any other law, neither the manager of nor the subscribers to a
community solar garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.

deleted text begin (g) deleted text end new text begin (c) new text end Within 180 days of commission approval of a plan under this section, a utility
shall begin crediting subscriber accounts for each community solar garden facility in its
service territory, and shall file with the commissioner of commerce a description of its
crediting system.

deleted text begin (h) For the purposes of this section, the following terms have the meanings given:
deleted text end

deleted text begin (1) "subscriber" means a retail customer of a utility who owns one or more subscriptions
of a community solar garden facility interconnected with that utility; and
deleted text end

deleted text begin (2) "subscription" means a contract between a subscriber and the owner of a solar garden.
deleted text end

new text begin Subd. 4. new text end

new text begin Community access project; eligibility. new text end

new text begin (a) An owner of a community solar
garden may apply to the utility to be designated as a community access project at any time:
new text end

new text begin (1) before the owner makes an initial payment under an interconnection agreement
entered into with a public utility; or
new text end

new text begin (2) if the owner made an initial payment under an interconnection agreement between
January 1, 2023, and the effective date of this section, before commercial operation begins.
new text end

new text begin (b) The utility must designate a solar garden as a community access project if the owner
of a solar garden commits in writing to meet the following conditions:
new text end

new text begin (1) at least 50 percent of the solar garden's generating capacity is subscribed by residential
customers;
new text end

new text begin (2) the contract between the owner of the solar garden and the public utility that purchases
the garden's electricity, and any agreement between the utility or owner of the solar garden
and subscribers, states that the owner of the solar garden does not discriminate against or
screen subscribers based on income or credit score and that any customer of a utility with
a community solar garden plan approved by the commission under subdivision 3 is eligible
to become a subscriber;
new text end

new text begin (3) the solar garden is operated by an entity that maintains a physical address in Minnesota
and has designated a contact person in Minnesota who responds to subscriber inquiries; and
new text end

new text begin (4) the agreement between the owner of the solar garden and subscribers states that the
owner must adequately publicize and convene at least one meeting annually to provide an
opportunity for subscribers to pose questions to the manager or owner.
new text end

new text begin Subd. 5. new text end

new text begin Community access project; financial arrangements. new text end

new text begin (a) If a utility approves
a solar garden as a community access project:
new text end

new text begin (1) the public utility purchasing the electricity generated by the community access project
may charge the owner of the community access project no more than one cent per watt
alternating current based on the solar garden's generating capacity for any refundable deposit
the utility requires of a solar garden during the application process;
new text end

new text begin (2) notwithstanding subdivision 2, paragraph (d), the public utility must purchase all
energy generated by the community access project at the retail rate; and
new text end

new text begin (3) all renewable energy credits generated by the community access project belong to
subscribers unless the owner of the solar garden:
new text end

new text begin (i) contracts to:
new text end

new text begin (A) sell the credits to a third party; or
new text end

new text begin (B) sell or transfer the credits to the utility; and
new text end

new text begin (ii) discloses a sale or transfer to subscribers at the time the subscribers enter into a
subscription.
new text end

new text begin (b) If at any time after commercial operation begins a solar garden that the utility
approved as a community access project fails to meet the conditions under subdivision 4,
the solar garden:
new text end

new text begin (1) is no longer subject to this subdivision and subdivision 6; and
new text end

new text begin (2) must operate under the program rules established by the commission for a solar
garden that does not qualify as a community access project.
new text end

new text begin (c) An owner of a solar garden whose designation as a community access project is
revoked under this subdivision may reapply to the commission at any time to have the
community access project designation reinstated under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Community access project; reporting. new text end

new text begin The owner of a community access
project must include the following information in an annual report to the community access
project subscribers and the utility:
new text end

new text begin (1) a description of the process by which subscribers may provide input to solar garden
policy and decision making;
new text end

new text begin (2) the amount of revenues received by the solar garden in the previous year that were
allocated to categories that include but are not limited to operating costs, debt service, profits
distributed to subscribers, and profits distributed to others; and
new text end

new text begin (3) an estimate of the proportion of low- and moderate-income subscribers, and a
description of one or more of the following methods used to make the estimate:
new text end

new text begin (i) evidence provided by a subscriber that the subscriber or a member of the subscriber's
household receives assistance from any of the following sources:
new text end

new text begin (A) the federal Low-Income Home Energy Assistance Program;
new text end

new text begin (B) federal Section 8 housing assistance;
new text end

new text begin (C) medical assistance;
new text end

new text begin (D) the federal Supplemental Nutrition Assistance Program; or
new text end

new text begin (E) the federal National School Lunch Program;
new text end

new text begin (ii) characterization of the census tract where the subscriber resides as low- or
moderate-income by the Federal Financial Institutions Examination Council; or
new text end

new text begin (iii) other methods approved by the commission.
new text end

new text begin Subd. 7. new text end

new text begin Commission order. new text end

new text begin Within 180 days of the effective date of this section, the
commission must issue an order addressing the requirements of 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. 5.

Minnesota Statutes 2022, section 216C.08, is amended to read:

216C.08 JURISDICTION.

The commissioner has sole authority and responsibility for the administration of sections
216C.05 to 216C.30 new text begin and 216C.375 new text end . Other laws notwithstanding, the authority granted the
commissioner shall supersede the authority given any other agency whenever overlapping,
duplication, or additional administrative or legal procedures might occur in the administration
of sections 216C.05 to 216C.30 new text begin and 216C.375 new text end . The commissioner shall consult with other
state departments or agencies in matters related to energy and shall contract with them to
provide appropriate services to effectuate the purposes of sections 216C.05 to 216C.30 new text begin and
216C.375 new text end . Any other department, agency, or official of this state or political subdivision
thereof which would in any way affect the administration or enforcement of sections 216C.05
to 216C.30 new text begin and 216C.375 new text end shall cooperate and coordinate all activities with the commissioner
to assure orderly and efficient administration and enforcement of sections 216C.05 to
216C.30 new text begin and 216C.375 new text end .

The commissioner shall designate a liaison officer whose duty shall be to insure the
maximum possible consistency in procedures and to eliminate duplication between the
commissioner and the other agencies that may be involved in energy.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2022, section 216C.09, is amended to read:

216C.09 COMMISSIONER DUTIES.

(a) The commissioner shall:

(1) manage the department as the central repository within the state government for the
collection of data on energy;

(2) prepare and adopt an emergency allocation plan specifying actions to be taken in the
event of an impending serious shortage of energy, or a threat to public health, safety, or
welfare;

(3) undertake a continuing assessment of trends in the consumption of all forms of energy
and analyze the social, economic, and environmental consequences of these trends;

(4) carry out energy conservation measures as specified by the legislature and recommend
to the governor and the legislature additional energy policies and conservation measures as
required to meet the objectives of sections 216C.05 to 216C.30 new text begin and 216C.375 new text end ;

(5) collect and analyze data relating to present and future demands and resources for all
sources of energy;

(6) evaluate policies governing the establishment of rates and prices for energy as related
to energy conservation, and other goals and policies of sections 216C.05 to 216C.30 new text begin and
216C.375 new text end , and make recommendations for changes in energy pricing policies and rate
schedules;

(7) study the impact and relationship of the state energy policies to international, national,
and regional energy policies;

(8) design and implement a state program for the conservation of energy; this program
shall include but not be limited to, general commercial, industrial, and residential, and
transportation areas; such program shall also provide for the evaluation of energy systems
as they relate to lighting, heating, refrigeration, air conditioning, building design and
operation, and appliance manufacturing and operation;

(9) inform and educate the public about the sources and uses of energy and the ways in
which persons can conserve energy;

(10) dispense funds made available for the purpose of research studies and projects of
professional and civic orientation, which are related to either energy conservation, resource
recovery, or the development of alternative energy technologies which conserve
nonrenewable energy resources while creating minimum environmental impact;

(11) charge other governmental departments and agencies involved in energy-related
activities with specific information gathering goals and require that those goals be met;

(12) design a comprehensive program for the development of indigenous energy
resources. The program shall include, but not be limited to, providing technical,
informational, educational, and financial services and materials to persons, businesses,
municipalities, and organizations involved in the development of solar, wind, hydropower,
peat, fiber fuels, biomass, and other alternative energy resources. The program shall be
evaluated by the alternative energy technical activity; and

(13) dispense loans, grants, or other financial aid from money received from litigation
or settlement of alleged violations of federal petroleum-pricing regulations made available
to the department for that purpose.

(b) Further, the commissioner may participate fully in hearings before the Public Utilities
Commission on matters pertaining to rate design, cost allocation, efficient resource utilization,
utility conservation investments, small power production, cogeneration, and other rate issues.
The commissioner shall support the policies stated in section 216C.05 and shall prepare
and defend testimony proposed to encourage energy conservation improvements as defined
in section 216B.241.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2022, section 216C.375, is amended to read:

216C.375 SOLAR FOR SCHOOLS PROGRAM.

Subdivision 1.

Definitions.

(a) For the purposes of this section deleted text begin and section 216C.376 deleted text end ,
the following terms have the meanings given them.

(b) "Developer" means an entity that installs a solar energy system on a school building
that has been awarded a grant under this section.

new text begin (c) "Electricity expenses" means expenses associated with:
new text end

new text begin (1) purchasing electricity from a utility; or
new text end

new text begin (2) purchasing and installing a solar energy system, including financing and power
purchase agreement payments, operation and maintenance contract payments, and interest
charges.
new text end

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

deleted text begin (d) deleted text end new text begin (e) new text end "School" means:

(1) a school that operates as part of deleted text begin an independent or special deleted text end new text begin a new text end school district;

new text begin (2) a Tribal contract school; new text end or

deleted text begin (2) deleted text end new text begin (3) new text end a state college or university that is under the jurisdiction of the Board of Trustees
of the Minnesota State Colleges and Universities.

deleted text begin (e) deleted text end new text begin (f) new text end "School district" means new text begin :
new text end

new text begin (1) new text end an independent deleted text begin or deleted text end new text begin school district, as defined in section 120A.05, subdivision 10;
new text end

new text begin (2) a new text end special school district new text begin , as defined in section 120A.05, subdivision 14; or
new text end

new text begin (3) a cooperative unit, as defined in section 123A.24, subdivision 2 new text end .

deleted text begin (f) deleted text end new text begin (g) new text end "Solar energy system" means photovoltaic or solar thermal devices.

deleted text begin (g) deleted text end new text begin (h) new text end "Solar thermal" has the meaning given to "qualifying solar thermal project" in
section 216B.2411, subdivision 2, paragraph (d).

deleted text begin (h) deleted text end new text begin (i) new text end "State colleges and universities" has the meaning given in section 136F.01,
subdivision 4.

Subd. 2.

Establishment; purpose.

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

Subd. 3.

Establishment of account.

A solar for schools program account is established
in the special revenue fund. Money received from the general fund new text begin and from the renewable
development account established under section 116C.779, subdivision 1, new text end must be transferred
to the commissioner of commerce and credited to the account. new text begin The account consists of
money received from the general fund and the renewable development account, provided
by law, donated, allocated, transferred, or otherwise provided to the account. Earnings,
including interest, dividends, and any other earnings arising from the assets of the account,
must be credited to the account. new text end Except as otherwise provided in this paragraph, money
deposited in the account remains in the account until expended. Any money that remains
in the account on June 30, deleted text begin 2027 deleted text end new text begin 2034 new text end , cancels to the general fund.

Subd. 4.

new text begin Appropriation; new text end expenditures.

(a) Money in the account new text begin is appropriated to the
commissioner and new text end may be used only:

(1) for grant awards made under this section; and

(2) to pay the reasonable costs incurred by the department to administer this section.

(b) Grant awards made with funds deleted text begin in the account deleted text end new text begin from the general fund new text end 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 begin (c) Grant awards made with funds from the renewable development 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 subject to section 116C.779, subdivision
1.
new text end

Subd. 5.

Eligible system.

(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:

(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;

(2) new text begin if installed on or adjacent to a school building receiving retail electric service from
a utility that is not subject to section 116C.779, subdivision 1, new text end has a capacity that does not
exceed the lesser of new text begin : (i) new text end 40 kilowatts new text begin alternating current or, with the consent of the
interconnecting electric utility, up to 1,000 kilowatts alternating current; new text end or new text begin (ii) new text end 120 percent
of the estimated annual electricity consumption of the school building at which the solar
energy system is installed; and

(3) new text begin if installed on or adjacent to a school building receiving retail electric service from
a utility that is subject to section 116C.779, subdivision 1, has a capacity that does not
exceed the lesser of 1,000 kilowatts alternating current or 120 percent of the estimated
annual electricity consumption of the school building at which the solar energy system is
installed;
new text end

new text begin (4) new text end has real-time and cumulative display devices, located in a prominent location
accessible to students and the public, that indicate the system's electrical performance.

(b) A school 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.

Subd. 6.

Application process.

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

(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:

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

(2) the current energy demand of the school building on which 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;

(3) a description of any solar thermal devices proposed as part of the solar energy system;

(4) the total cost to purchase and install the solar energy system and the solar energy
system's lifecycle cost, including removal and disposal at the end of the system's life;

(5) a copy of the proposed contract agreement between the school and the deleted text begin public deleted text end utility
new text begin to which the solar energy system is interconnected new text end or new text begin the new text end developer that includes provisions
addressing responsibility for maintenance of the solar energy system;

(6) 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 and provisions for real-time monitoring of the
solar energy system performance for display in a prominent location within the school or
on-demand in the classroom;

(7) information that demonstrates the school's level of need for financial assistance
available under this section;

(8) information that demonstrates the school's readiness to implement the project,
including but not limited to the availability of the site on which 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 on which the solar energy system is to be installed on issues
relevant to the implementation of the project, including metering and other issues;

(9) with respect to the installation and operation of the solar energy system, the
willingness and ability of the developer or the public utility to:

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

(ii) adhere to the provisions of section 177.43;

(10) deleted text begin how the developer or public utility plans to reduce deleted text end the school's deleted text begin initial capital expense
to purchase and install deleted text end new text begin projected reductions in electricity expenses resulting from purchasing
and installing new text end the solar energy system deleted text begin by providing financial assistance to the school deleted text end ; and

(11) any other information deemed relevant by the commissioner.

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

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

new text begin (e) The school, the developer, or the utility to which the solar energy generating system
is interconnected must annually submit to the commissioner on a form prescribed by the
commissioner a report containing the following information for each of the 12 previous
months:
new text end

new text begin (1) the total number of kilowatt-hours of electricity consumed by the school;
new text end

new text begin (2) the total number of kilowatt-hours generated by the solar energy generating system;
new text end

new text begin (3) the amount paid by the school to its utility for electricity; and
new text end

new text begin (4) any other information requested by the commissioner.
new text end

Subd. 7.

Energy conservation review.

At the commissioner's request, a school awarded
a grant under this section deleted text begin shall deleted text end new text begin must new text end provide the commissioner information regarding energy
conservation measures implemented at the school building at which the solar energy system
is 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.

Subd. 8.

Technical assistance.

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

Subd. 9.

Grant payments.

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.

Subd. 10.

Application deadline.

No application may be submitted under this section
after December 31, deleted text begin 2025 deleted text end new text begin 2032 new text end .

Subd. 11.

Reporting.

Beginning January 15, 2022, and each year thereafter until January
15, deleted text begin 2028 deleted text end new text begin 2035 new text end , the commissioner must report to the chairs and ranking minority members
of the legislative committees with jurisdiction over energy regarding: (1) grants and amounts
awarded to schools under this section during the previous year; deleted text begin (2) financial assistance,
including amounts per award, provided to schools under section 216C.376 during the
previous year; and (3) any remaining balances available under this section and section
216C.376. deleted text end new text begin (2) the amount of electricity generated by solar energy generating systems awarded
a grant under this section; and (3) the impact on school electricity expenses.
new text end

new text begin Subd. 12. new text end

new text begin Renewable energy credits. new text end

new text begin Renewable energy credits associated with the
electricity generated by a solar energy generating system installed under this section in the
electric service area of a public utility subject to section 116C.779 are the property of the
public utility for the life of the solar energy generating system.
new text end

Sec. 8.

new text begin [216C.377] SOLAR GRANT PROGRAM; PUBLIC BUILDINGS.
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) "Developer" means an entity that applies for a grant on behalf of a public building
under this section to install a solar energy generating system on the public building.
new text end

new text begin (c) "Local unit of government" means:
new text end

new text begin (1) a county, statutory or home rule charter city, town, or other local government
jurisdiction, excluding a school district eligible to receive financial assistance under section
216C.375 or 216C.376; or
new text end

new text begin (2) a federally recognized Indian Tribe in Minnesota.
new text end

new text begin (d) "Municipal electric utility" means a utility that (1) provides electric service to retail
customers in Minnesota, and (2) is governed by a city council or a local utilities commission.
new text end

new text begin (e) "Public building" means:
new text end

new text begin (1) a building owned and operated by a local unit of government; or
new text end

new text begin (2) a building owned by a federally recognized Indian Tribe in Minnesota whose primary
purpose is Tribal government operations.
new text end

new text begin (f) "Solar energy generating system" has the meaning given in section 216E.01,
subdivision 9a.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar on public buildings grant program is
established in the department. The purpose of the program is to provide grants to stimulate
the installation of solar energy generating systems on public buildings.
new text end

new text begin Subd. 3. new text end

new text begin Establishment of account. new text end

new text begin A solar on public buildings grant program account
is established in the special revenue fund. Money received from the general fund and the
renewable development account established in section 116C.779, subdivision 1, must be
transferred to the commissioner of commerce and credited to the account. Earnings, including
interest, dividends, and any other earnings arising from the assets of the account, must be
credited to the account. Earnings remaining in the account at the end of a fiscal year do not
cancel to the general fund or renewable development account but remain in the account
until expended. The commissioner must manage the account.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation; expenditures. new text end

new text begin Money in the account established under
subdivision 3 is appropriated to the commissioner for the purposes of this section and must
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 of the department to administer this section.
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 local unit of government
under this section only if the solar energy generating system that is the subject of the grant:
new text end

new text begin (1) is installed (i) on or adjacent to a public building that consumes the electricity
generated by the solar energy generating system, and (ii) on property within the service
territory of the utility currently providing electric service to the public 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
average annual electricity consumption, measured over the most recent three calendar years,
of the public building at which the solar energy generating system is installed.
new text end

new text begin (b) A public building that receives a rebate or other financial incentive under section
216B.241 for a solar energy generating system is eligible for a grant under this section for
the same solar energy generating system.
new text end

new text begin (c) Before filing an application for a grant under this section, a local unit of government
or public building that is served by a municipal electric utility must inform the municipal
electric utility of the local unit of government's or public building's intention to do so. A
municipal electric utility may, under an agreement with a local unit of government, own
and operate a solar energy generating system awarded a grant under this section on behalf
of and for the benefit of the local unit of government.
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, local units of government, and developers who may wish to apply for a grant
under this section on behalf of a public building.
new text end

new text begin (b) A utility or developer must submit an application to the commissioner on behalf of
a public building 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 generating 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 public building on which the solar energy generating
system is to be installed, information regarding any distributed energy resource that currently
provides electricity to the public building, and the size of the public building's subscription
to a community solar garden, if applicable;
new text end

new text begin (3) information sufficient to estimate the energy and monetary savings that are projected
to result from installation of the solar energy generating system over the system's useful
life;
new text end

new text begin (4) the total cost to purchase and install the solar energy system and the solar energy
system's life cycle cost, including removal and disposal at the end of the system's life;
new text end

new text begin (5) a copy of the proposed contract agreement between the local unit of government and
the utility or developer that includes provisions addressing responsibility for maintenance,
removal, and disposal of the solar energy generating system; and
new text end

new text begin (6) if the applicant is other than the utility providing electric service to the public building
at which the solar energy generating system is to be installed, a written statement from that
utility that no issues that would prevent interconnection of the solar energy generating
system as proposed are foreseen.
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 under this section.
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 local unit of
government awarded a grant under this section must provide the commissioner with
information regarding energy conservation measures implemented at the public building
where the solar energy generating system is to be installed. The commissioner may make
recommendations to the local unit of government regarding cost-effective conservation
measures the local unit of government can implement and may provide technical assistance
and direct the local unit of government 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
local units of government 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 local unit of government for the necessary and reasonable
costs associated with the purchase and installation of a solar energy generating system. In
determining the amount of a grant award, the commissioner shall take into consideration
the financial capacity of the local unit of government awarded the grant.
new text end

new text begin Subd. 10. new text end

new text begin Application deadline. new text end

new text begin An application must not be submitted under this section
after June 30, 2026.
new text end

new text begin Subd. 11. new text end

new text begin Contractor conditions. new text end

new text begin A contractor or subcontractor performing construction
work on a project supported by a grant awarded under this section:
new text end

new text begin (1) must pay employees working on the project no less than the prevailing wage rate,
as defined in section 177.42; and
new text end

new text begin (2) is subject to the requirements and enforcement provisions of sections 177.27, 177.30,
177.32, 177.41 to 177.435, and 177.45.
new text end

new text begin Subd. 12. new text end

new text begin Reporting. new text end

new text begin Beginning January 15, 2024, and each year thereafter until January
15, 2027, the commissioner must report to the chairs and ranking minority members of the
legislative committees with jurisdiction over energy finance and policy regarding grants
and amounts awarded to local units of government under this section during the previous
year and any remaining balances available in the account established under 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. 9.

new text begin [216C.379] DISTRIBUTED ENERGY RESOURCES SYSTEM UPGRADE
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Capacity constrained location" means a location on an electric utility's distribution
system that the utility has reasonably determined requires significant distribution or network
upgrades before additional distributed energy resources can interconnect.
new text end

new text begin (c) "Distribution upgrades" means the additions, modifications, and upgrades made to
an electric utility's distribution system to facilitate interconnection of distributed energy
resources.
new text end

new text begin (d) "Interconnection" means the process governed by the Minnesota Distributed Energy
Resources Interconnection Process and Agreement, as approved in the Minnesota Public
Utilities Commission's order issued April 19, 2019.
new text end

new text begin (e) "Net metered facility" has the meaning given in section 216B.164.
new text end

new text begin (f) "Network upgrades" means additions, modifications, and upgrades to the transmission
system required at or beyond the point at which the distributed energy resource interconnects
with an electric utility's distribution system to accommodate the interconnection of the
distributed energy resource with the electric utility's distribution system. Network upgrades
do not include distribution upgrades.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A distributed energy resources system upgrade
program is established in the department. The purpose of the program is to provide funding
to the utility subject to section 116C.779 to complete infrastructure upgrades necessary to
enable electricity customers to interconnect distributed energy resources. The program must
be designed to achieve the following goals to the maximum extent feasible:
new text end

new text begin (1) make upgrades at capacity constrained locations on the utility's distribution system
so that the number and capacity of distributed energy resources projects with a capacity of
up to 40 kilowatts alternating current that can be interconnected is sufficient to serve projected
demand;
new text end

new text begin (2) enable all distributed energy resources projects with a nameplate capacity of up to
40 kilowatts alternating current to be reviewed and approved by the utility within 43 business
days;
new text end

new text begin (3) minimize interconnection barriers for electricity customers seeking to construct net
metered facilities for on-site electricity use; and
new text end

new text begin (4) advance innovative solutions that can minimize the cost of distribution and network
upgrades required for interconnection, including but not limited to energy storage, control
technologies, smart inverters, distributed energy resources management systems, and other
innovative technologies and programs.
new text end

new text begin Subd. 3. new text end

new text begin Required plan. new text end

new text begin (a) By November 1, 2023, the utility subject to section 116C.779
must file with the commissioner a plan for the distributed energy resources system upgrade
program. The plan must contain:
new text end

new text begin (1) a description of how the utility proposes to use money in the distributed energy
resources system upgrade program account to upgrade the utility's distribution system so
that the number and capacity of distributed energy resources that can be interconnected is
sufficient to serve projected demand;
new text end

new text begin (2) the locations where the utility proposes to make investments under the program;
new text end

new text begin (3) the number and capacity of distributed energy resources projects the utility expects
to interconnect as a result of the program;
new text end

new text begin (4) a plan for reporting on the program's outcomes; and
new text end

new text begin (5) any additional information required by the commissioner.
new text end

new text begin (b) The utility subject to section 116C.779 is prohibited from implementing the program
until the commissioner approves the plan submitted under this subdivision. No later than
March 31, 2024, the commissioner must approve a plan under this subdivision that the
commissioner determines is in the public interest. Any proposed modification to the plan
approved under this subdivision must be approved by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Project priorities. new text end

new text begin In developing the plan required by subdivision 3, the utility
must prioritize making investments under this program:
new text end

new text begin (1) at capacity constrained locations on the distribution grid;
new text end

new text begin (2) in communities with demonstrated customer interest in distributed energy resources
as measured by completed, pending, and anticipated interconnection applications; and
new text end

new text begin (3) in communities with a climate action plan, clean energy goal, or policies that:
new text end

new text begin (i) seek to mitigate the impacts of climate change on the city; or
new text end

new text begin (ii) reduce the city's contributions to the causes of climate change.
new text end

new text begin Subd. 5. new text end

new text begin Eligible costs. new text end

new text begin The commissioner may pay the following reasonable costs of
the utility subject to section 116C.779 under a plan approved in accordance with subdivision
3 from money available in the distributed energy resources system upgrade program account:
new text end

new text begin (1) distribution upgrades and network upgrades;
new text end

new text begin (2) energy storage; control technologies, including but not limited to a distributed energy
resources management system; or other innovative technology used to achieve the purposes
of this section;
new text end

new text begin (3) pilot programs operated by the utility to implement innovative technology solutions;
and
new text end

new text begin (4) costs incurred by the department to administer this section.
new text end

new text begin Subd. 6. new text end

new text begin Capacity reserved. new text end

new text begin The utility subject to section 116C.779 must reserve any
increase in capacity made available by upgrades paid for under this section for net metered
facilities and distributed energy resources with a nameplate capacity of up to 40 kilowatts
alternating current. The commissioner may modify the requirements of this subdivision
when the commissioner finds doing so is in the public interest.
new text end

new text begin Subd. 7. new text end

new text begin Establishment of account. new text end

new text begin (a) A distributed energy resources system upgrade
program account is established in the special revenue fund. Earnings, including interest,
dividends, and any other earnings arising from the assets of the account, must be credited
to the account. Earnings remaining in the account at the end of a fiscal year do not cancel
to the general fund or renewable development account but remain in the account until
expended. The commissioner must manage the account.
new text end

new text begin (b) Money from the account is appropriated to the commissioner for the purposes of this
section.
new text end

new text begin Subd. 8. new text end

new text begin Reporting of certain incidents. new text end

new text begin The utility subject to section 116C.779 must
report to the commissioner within 60 days if any distributed energy resources project with
a capacity up to 40 kilowatts alternating current is unable to interconnect at a location for
which upgrade funding was provided under this program due to safety or reliability issues,
or the additional cost of distribution or network upgrades required. The utility must make
available to the commissioner all engineering analyses, studies, and information related to
any such instances. The commissioner may modify or waive this requirement after December
31, 2025.
new text end

Sec. 10.

new text begin [500.216] LIMITS ON CERTAIN RESIDENTIAL SOLAR ENERGY
SYSTEMS PROHIBITED.
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 terms defined in this
subdivision have the meanings given.
new text end

new text begin (b) "Private entity" means a homeowners association, community association, or other
association that is subject to a homeowners association document.
new text end

new text begin (c) "Homeowners association document" means a document containing the declaration,
articles of incorporation, bylaws, or rules and regulations of:
new text end

new text begin (1) a common interest community, as defined in section 515B.1-103, regardless of
whether the common interest community is subject to chapter 515B; and
new text end

new text begin (2) a residential community that is not a common interest community.
new text end

new text begin (d) "Solar energy system" has the meaning given in section 216C.06, subdivision 17.
new text end

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin This section applies to:
new text end

new text begin (1) single-family detached dwellings whose owner is the sole owner of the entire building
in which the dwelling is located and who is solely responsible for the maintenance, repair,
replacement, and insurance of the entire building; and
new text end

new text begin (2) multifamily attached dwellings whose owner is the sole owner of the entire building
in which the dwelling is located and who is solely responsible for the maintenance, repair,
replacement, and insurance of the entire building.
new text end

new text begin Subd. 3. new text end

new text begin General rule. new text end

new text begin Except as otherwise provided in this section and notwithstanding
any covenant, restriction, or condition contained in a deed, security instrument, homeowners
association document, or any other instrument affecting the transfer, sale of, or an interest
in real property, a private entity must not prohibit or refuse to permit the owner of a
single-family dwelling to install, maintain, or use a roof-mounted solar energy system.
new text end

new text begin Subd. 4. new text end

new text begin Allowable conditions. new text end

new text begin (a) A private entity may require that:
new text end

new text begin (1) a licensed contractor install a solar energy system;
new text end

new text begin (2) a roof-mounted solar energy system not extend above the peak of a pitched roof or
beyond the edge of the roof;
new text end

new text begin (3) the owner or installer of a solar energy system indemnify or reimburse the private
entity or the private entity's members for loss or damage caused by the installation,
maintenance, use, repair, or removal of a solar energy system;
new text end

new text begin (4) the owner and each successive owner of a solar energy system list the private entity
as a certificate holder on the homeowner's insurance policy; or
new text end

new text begin (5) the owner and each successive owner of a solar energy system be responsible for
removing the system if reasonably necessary to repair, perform maintenance, or replace
common elements or limited common elements, as defined in section 515B.1-103.
new text end

new text begin (b) A private entity may impose other reasonable restrictions on installing, maintaining,
or using solar energy systems, provided that the restrictions do not: (1) decrease the solar
energy system's projected energy generation by more than ten percent; or (2) increase the
solar energy system's cost by more than (i) 20 percent for a solar water heater, or (ii) $1,000
for a solar photovoltaic system, when compared with the solar energy system's energy
generation and the cost of labor and materials originally proposed without the restrictions,
as certified by the solar energy system's designer or installer. A private entity may obtain
an alternative bid and design from a solar energy system designer or installer for the purposes
of this paragraph.
new text end

new text begin (c) A solar energy system must meet applicable standards and requirements imposed by
the state and by governmental units, as defined in section 462.384.
new text end

new text begin (d) A solar energy system for heating water must be certified by the Solar Rating
Certification Corporation or an equivalent certification agency. A solar energy system for
producing electricity must meet: (1) all applicable safety and performance standards
established by the National Electrical Code, the Institute of Electrical and Electronics
Engineers, and accredited testing laboratories, including but not limited to Underwriters
Laboratories; and (2) where applicable, rules of the Public Utilities Commission regarding
safety and reliability.
new text end

new text begin (e) If approval by a private entity is required prior to installing or using a solar energy
system, the application for approval (1) must be processed and approved in the same manner
as an application for approval of an architectural modification to the property, and (2) must
not be willfully avoided or delayed. In no event does a private entity have less than 60 days
to approve or disapprove an application for a solar energy system.
new text end

new text begin (f) An application for approval must be made in writing and must contain certification
that the applicant must meet any conditions required by a private entity under subdivision
4. An application must include a copy of the interconnection application submitted to the
applicable electric utility.
new text end

new text begin (g) A private entity must approve or deny an application in writing. If an application is
not denied in writing within 60 days of the date the application was received, the application
is deemed approved unless the delay is the result of a reasonable request for additional
information. If a private entity determines that additional information is needed from the
applicant in order to approve or disapprove the application, the private entity must request
the additional information in writing within 60 days from the date of receipt of the
application. If the private entity makes a request for additional information within 15 days
from the date the private entity initially received the application, the private entity shall
have 60 days from the date of receipt of the additional information in which to approve or
disapprove the application. If the private entity makes a written request to the applicant for
additional information more than 15 days after the private entity initially received the
application, the private entity has 15 days after the private entity receives the additional
information requested from the applicant in which to approve or disapprove the application,
but in no event does the private entity have less than 60 days from the date the private entity
initially received the application in which to approve or disapprove the application.
new text end

Sec. 11.

Minnesota Statutes 2022, section 515B.2-103, is amended to read:

515B.2-103 CONSTRUCTION AND VALIDITY OF DECLARATION AND
BYLAWS.

(a) All provisions of the declaration and bylaws are severable.

(b) The rule against perpetuities may not be applied to defeat any provision of the
declaration or this chapter, or any instrument executed pursuant to the declaration or this
chapter.

(c) In the event of a conflict between the provisions of the declaration and the bylaws,
the declaration prevails except to the extent that the declaration is inconsistent with this
chapter.

(d) The declaration and bylaws must comply with deleted text begin section deleted text end new text begin sections new text end 500.215 new text begin and 500.216 new text end .

Sec. 12.

Minnesota Statutes 2022, section 515B.3-102, is amended to read:

515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.

(a) Except as provided in subsections (b), (c), (d), and (e), and subject to the provisions
of the declaration or bylaws, the association shall have the power to:

(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
incorporation, bylaws and declaration, as follows: (i) regulating the use of the common
elements; (ii) regulating the use of the units, and conduct of unit occupants, which may
jeopardize the health, safety or welfare of other occupants, which involves noise or other
disturbing activity, or which may damage the common elements or other units; (iii) regulating
or prohibiting animals; (iv) regulating changes in the appearance of the common elements
and conduct which may damage the common interest community; (v) regulating the exterior
appearance of the common interest community, including, for example, balconies and patios,
window treatments, and signs and other displays, regardless of whether inside a unit; (vi)
implementing the articles of incorporation, declaration and bylaws, and exercising the
powers granted by this section; and (vii) otherwise facilitating the operation of the common
interest community;

(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
collect assessments for common expenses from unit owners;

(3) hire and discharge managing agents and other employees, agents, and independent
contractors;

(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
own name on behalf of itself or two or more unit owners on matters affecting the common
elements or other matters affecting the common interest community or, (ii) with the consent
of the owners of the affected units on matters affecting only those units;

(5) make contracts and incur liabilities;

(6) regulate the use, maintenance, repair, replacement, and modification of the common
elements and the units;

(7) cause improvements to be made as a part of the common elements, and, in the case
of a cooperative, the units;

(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
real estate or personal property, but (i) common elements in a condominium or planned
community may be conveyed or subjected to a security interest only pursuant to section
515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
may be subjected to a security interest, only pursuant to section 515B.3-112;

(9) grant or amend easements for public utilities, public rights-of-way or other public
purposes, and cable television or other communications, through, over or under the common
elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
by the declaration; and, subject to approval by a vote of unit owners other than declarant
or its affiliates, grant or amend other easements, leases, and licenses through, over or under
the common elements;

(10) impose and receive any payments, fees, or charges for the use, rental, or operation
of the common elements, other than limited common elements, and for services provided
to unit owners;

(11) impose interest and late charges for late payment of assessments and, after notice
and an opportunity to be heard before the board or a committee appointed by it, levy
reasonable fines for violations of the declaration, bylaws, and rules and regulations of the
association;

(12) impose reasonable charges for the review, preparation and recordation of
amendments to the declaration, resale certificates required by section 515B.4-107, statements
of unpaid assessments, or furnishing copies of association records;

(13) provide for the indemnification of its officers and directors, and maintain directors'
and officers' liability insurance;

(14) provide for reasonable procedures governing the conduct of meetings and election
of directors;

(15) exercise any other powers conferred by law, or by the declaration, articles of
incorporation or bylaws; and

(16) exercise any other powers necessary and proper for the governance and operation
of the association.

(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
on the power of the association to deal with the declarant which are more restrictive than
the limitations imposed on the power of the association to deal with other persons.

(c) Notwithstanding subsection (a), powers exercised under this section must comply
with deleted text begin section deleted text end new text begin sections new text end 500.215 new text begin and 500.216 new text end .

(d) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
association, before instituting litigation or arbitration involving construction defect claims
against a development party, shall:

(1) mail or deliver written notice of the anticipated commencement of the action to each
unit owner at the addresses, if any, established for notices to owners in the declaration and,
if the declaration does not state how notices are to be given to owners, to the owner's last
known address. The notice shall specify the nature of the construction defect claims to be
alleged, the relief sought, and the manner in which the association proposes to fund the cost
of pursuing the construction defect claims; and

(2) obtain the approval of owners of units to which a majority of the total votes in the
association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
are excluded. The association may obtain the required approval by a vote at an annual or
special meeting of the members or, if authorized by the statute under which the association
is created and taken in compliance with that statute, by a vote of the members taken by
electronic means or mailed ballots. If the association holds a meeting and voting by electronic
means or mailed ballots is authorized by that statute, the association shall also provide for
voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
or mailed ballots, except that the votes must be used in combination with the vote taken at
a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
for purposes of determining whether a quorum was present. Proxies may not be used for a
vote taken under this paragraph unless the unit owner executes the proxy after receipt of
the notice required under subsection (d)(1) and the proxy expressly references this notice.

(e) The association may intervene in a litigation or arbitration involving a construction
defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
claim before complying with subsections (d)(1) and (d)(2) but the association's complaint
in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
prejudice unless the association has complied with the requirements of subsection (d) within
90 days of the association's commencement of the complaint in an intervention or the
assertion of the counterclaim, crossclaim, or third-party claim.

Sec. 13. new text begin TRANSFER OF UNENCUMBERED WITHHELD FUNDS.
new text end

new text begin Any unencumbered funds withheld by the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1, to provide financial assistance to schools to purchase and
install solar energy systems, as required under Minnesota Statutes 2022, section 216C.376,
subdivision 5, paragraph (a), that are unexpended as of the effective date of this act must
be transferred to the solar for schools program account established under Minnesota Statutes,
section 216C.375, subdivision 3.
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. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 216C.376, new text end new text begin 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

ARTICLE 8

MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 116C.779, subdivision 1, is amended to read:

Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject
to transfer under this paragraph.

(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
plant must transfer to the renewable development account $500,000 each year for each dry
cask containing spent fuel that is located at the Prairie Island power plant for each year the
plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by
the commission pursuant to paragraph (i). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any
part of a year.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(e) Each year, the public utility shall withhold from the funds transferred to the renewable
development account under paragraphs (c) and (d) the amount necessary to pay its obligations
under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.

(f) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e).

(g) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e).

(h) The collective amount paid under the grant contracts awarded under paragraphs (f)
and (g) is limited to the amount deposited into the renewable development account, and its
predecessor, the renewable development account, established under this section, that was
not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
10.

(i) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello
nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued
facility, the commission shall require the public utility to pay $7,500,000 for the discontinued
Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year
in which the commission finds, by the preponderance of the evidence, that the public utility
did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a
permanent or interim storage site out of the state. This determination shall be made at least
every two years.

(j) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

(k) For the purposes of paragraph (j), the following terms have the meanings given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

(l) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. The advisory group must design a
request for proposal and evaluate projects submitted in response to a request for proposals.
The advisory group must utilize an independent third-party expert to evaluate proposals
submitted in response to a request for proposal, including all proposals made by the public
utility. A request for proposal for research and development under paragraph (j), clause (1),
may be limited to or include a request to higher education institutions located in Minnesota
for multiple projects authorized under paragraph (j), clause (1). The request for multiple
projects may include a provision that exempts the projects from the third-party expert review
and instead provides for project evaluation and selection by a merit peer review grant system.
In the process of determining request for proposal scope and subject and in evaluating
responses to request for proposals, the advisory group must strongly consider, where
reasonable, potential benefit to Minnesota citizens and businesses and the utility's ratepayers.

(m) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature. The commission may approve proposed expenditures,
may disapprove proposed expenditures that it finds not to be in compliance with this
subdivision or otherwise not in the public interest, and may, if agreed to by the public utility,
modify proposed expenditures. The commission shall, by order, submit its funding
recommendations to the legislature as provided under paragraph (n).

(n) The commission shall present its recommended appropriations from the account to
the senate and house of representatives committees with jurisdiction over energy policy and
finance annually by February 15. Expenditures from the account must be appropriated by
law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

(o) A request for proposal for renewable energy generation projects must, when feasible
and reasonable, give preference to projects that are most cost-effective for a particular energy
source.

(p) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account for the prior year and all previous years. The report must,
to the extent possible and reasonable, itemize the actual and projected financial benefit to
the public utility's ratepayers of each project.

(q) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.

(r) A project receiving funds from the account must produce a written final report that
includes sufficient detail for technical readers and a clearly written summary for nontechnical
readers. The report must include an evaluation of the project's financial, environmental, and
other benefits to the state and the public utility's ratepayers.

(s) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.

(t) All final reports must acknowledge that the project was made possible in whole or
part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

(u) Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

new text begin (v) Construction projects receiving funds from this account are subject to the requirement
to pay the prevailing wage rate, as defined in section 177.42 and the requirements and
enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to construction contracts entered into on or after that date.
new text end

Sec. 2.

new text begin [123B.661] AIR VENTILATION PROGRAM ACT.
new text end

new text begin Sections 123B.661 to 123B.663 may be cited as the "Air Ventilation Program Act."
new text end

Sec. 3.

new text begin [123B.662] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin For purposes of sections 123B.661 to 123B.663, the terms in
this section have the meanings given unless the language or context clearly indicates that
a different meaning is intended.
new text end

new text begin Subd. 2. new text end

new text begin ANSI. new text end

new text begin "ANSI" means American National Standards Institute.
new text end

new text begin Subd. 3. new text end

new text begin ASHRAE. new text end

new text begin "ASHRAE" means American Society of Heating Refrigeration Air
Conditioning Engineers.
new text end

new text begin Subd. 4. new text end

new text begin Certified TAB technician. new text end

new text begin "Certified TAB technician" means a technician
certified to perform testing, adjusting, and balancing of HVAC systems by the Associated
Air Balance Council, National Environmental Balancing Bureau, or the Testing, Adjusting
and Balancing Bureau.
new text end

new text begin Subd. 5. new text end

new text begin HVAC. new text end

new text begin "HVAC" means heating, ventilation, and air conditioning.
new text end

new text begin Subd. 6. new text end

new text begin Licensed professional engineer. new text end

new text begin "Licensed professional engineer" means a
professional engineer licensed under sections 326.02 to 326.15 who holds an active license,
is in good standing, and is not subject to any disciplinary or other actions with the Board
of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience and
Interior Design.
new text end

new text begin Subd. 7. new text end

new text begin MERV. new text end

new text begin "MERV" means minimum efficiency reporting value established by
ASHRAE Standard 52.2-2017 - Method of Testing General Ventilation Air-Cleaning Devices
for Removal Efficiency by Particle Size.
new text end

new text begin Subd. 8. new text end

new text begin Program. new text end

new text begin "Program" means the air ventilation program.
new text end

new text begin Subd. 9. new text end

new text begin Program administrator. new text end

new text begin "Program administrator" means the commissioner
of commerce or the commissioner's representative.
new text end

new text begin Subd. 10. new text end

new text begin Qualified adjusting personnel. new text end

new text begin "Qualified adjusting personnel" means one
of the following:
new text end

new text begin (1) a certified TAB technician; or
new text end

new text begin (2) a skilled and trained workforce under the supervision of a certified TAB technician.
new text end

new text begin Subd. 11. new text end

new text begin Qualified testing personnel. new text end

new text begin "Qualified testing personnel" means one of the
following:
new text end

new text begin (1) a certified TAB technician; or
new text end

new text begin (2) a skilled and trained workforce under the supervision of a certified TAB technician.
new text end

new text begin Subd. 12. new text end

new text begin Registered apprenticeship program. new text end

new text begin "Registered apprenticeship program"
means an apprenticeship program that is registered under chapter 178 or Code of Federal
Regulations, title 29, part 29.
new text end

new text begin Subd. 13. new text end

new text begin Skilled and trained workforce. new text end

new text begin "Skilled and trained workforce" means a
workforce in which at least 80 percent of the construction workers are either graduates of
a registered apprenticeship program for the applicable occupation or are registered as
apprentices in a registered apprenticeship program for the applicable occupation.
new text end

new text begin Subd. 14. new text end

new text begin TAB. new text end

new text begin "TAB" means testing, adjusting, and balancing of an HVAC system.
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 begin [123B.663] AIR VENTILATION PILOT PROGRAM GRANTS AND
GUIDELINES.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program. new text end

new text begin The Department of Commerce shall establish and
administer the air ventilation program to award grants to school boards to reimburse the
school boards for the following activities:
new text end

new text begin (1) completion of a heating, ventilation, and air conditioning assessment report;
new text end

new text begin (2) subsequent testing, adjusting balancing work performed as a result of assessment;
and
new text end

new text begin (3) ventilation equipment upgrades, replacements, or other measures recommended by
the assessment to improve health, safety, and HVAC system efficiency.
new text end

new text begin Subd. 2. new text end

new text begin Grant awards. new text end

new text begin (a) The program administrator shall award a grant if the school
board meets the following requirements:
new text end

new text begin (1) completes a heating, ventilation, and air conditioning assessment report by qualified
testing personnel or qualified adjusting personnel. The report must be verified by a licensed
professional engineer and include costs of adjustments or repairs necessary to meet minimum
ventilation and filtration requirements and determine whether any cost-effective energy
efficiency upgrades or replacements are warranted or recommended;
new text end

new text begin (2) all work required after conducting the assessment must be performed by a skilled
and trained workforce;
new text end

new text begin (3) upon completion of the work for which a school board is seeking reimbursement,
the school board must conduct an HVAC verification report that includes the name and
address of the school facility and individual or contractor preparing and certifying the report
and a description of the assessment, maintenance, adjustment, repair, upgrade, and
replacement activities and outcomes; and
new text end

new text begin (4) verification that the school board has complied with all requirements. Verification
must include documentation that either MERV 13 filters have been installed or verification
that the maximum MERV-rated filter that the system is able to effectively handle has been
installed; documentation of the MERV rating; the verified ventilation rates for occupied
areas of the school and whether those rates meet the requirements set forth in ANSI/ASHRAE
Standard 62.1-2019, with an accompanying explanation for any ventilation rates that do not
meet applicable requirements documenting why the current system is unable to meet
requirements; the verified exhaust for occupied areas and whether those rates meet the
requirements set forth in the system design intent; documentation of system deficiencies;
recommendations for additional maintenance, replacement, or upgrades to improve energy
efficiency, safety, or performance; documentation of initial operating verifications,
adjustments, and final operating verifications; documentation of any adjustments or repairs
performed; verification of installation of carbon dioxide monitors, including the make and
model of monitors; and verification that all work has been performed by qualified personnel,
including the contractor's name, certified TAB technician name and certification number,
and verification that all construction work has been performed by a skilled and trained
workforce.
new text end

new text begin (b) Grants shall be prioritized to give direct support to schools and school children in
communities with high rates of poverty, as determined by receipt of federal Title I funding.
new text end

new text begin (c) Grants shall be awarded to reimburse schools for 50 percent of costs incurred for
work performed under paragraph (a), clauses (1) to (3), with a maximum grant award of
$........
new text end

new text begin (d) The school board shall maintain a copy of the HVAC verification report and make
it available to students, parents, school personnel, and to any member of the public or the
program administrator upon request.
new text end

new text begin Subd. 3. new text end

new text begin Program guidelines and rules. new text end

new text begin (a) The program administrator shall:
new text end

new text begin (1) adopt guidelines for the air ventilation program no later than March 1, 2024;
new text end

new text begin (2) establish the timing of grant funding; and
new text end

new text begin (3) ensure the air ventilation program is operating and may receive applications for
grants no later than ....... and begin to approve applications no later than ......., subject to the
availability of funds.
new text end

new text begin (b) The technical and reporting requirements of the air ventilation program may be
amended by the program administrator as necessary to reflect current COVID-19 guidance
or other applicable guidance, to achieve the intent of the air ventilation program, and to
ensure consistency with other related requirements and codes.
new text end

new text begin (c) The program administrator may use no more than five percent of the program funds
for administering the program, including providing technical support to program participants.
new text end

new text begin (d) The program administrator may establish rules for the air ventilation program.
new text end

Sec. 5.

Minnesota Statutes 2022, section 216B.096, subdivision 11, is amended to read:

Subd. 11.

Reporting.

Annually on deleted text begin November 1 deleted text end new text begin October 15 new text end , a utility must electronically
file with the commission a report, in a format specified by the commission, specifying the
number of utility heating service customers whose service is disconnected or remains
disconnected for nonpayment as of new text begin September 15 and new text end October 1 deleted text begin and October 15 deleted text end . If customers
remain disconnected on October deleted text begin 15 deleted text end new text begin 1 new text end , a utility must file a report each week between
deleted text begin November 1 deleted text end new text begin October 15 new text end and the end of the cold weather period specifying:

(1) the number of utility heating service customers that are or remain disconnected from
service for nonpayment; and

(2) the number of utility heating service customers that are reconnected to service each
week. The utility may discontinue weekly reporting if the number of utility heating service
customers that are or remain disconnected reaches zero before the end of the cold weather
period.

The data reported under this subdivision are presumed to be accurate upon submission
and must be made available through the commission's electronic filing system.

Sec. 7.

Minnesota Statutes 2022, section 216B.2425, subdivision 3, is amended to read:

Subd. 3.

Commission approval.

new text begin (a) new text end By June 1 of each even-numbered year, the
commission shall adopt a state transmission project list and shall certify, certify as modified,
or deny certification of the transmission and distribution projects proposed under subdivision
2. new text begin Except as provided in paragraph (b), new text end the commission may only certify a project that is a
high-voltage transmission line as defined in section 216B.2421, subdivision 2, that the
commission finds is:

(1) necessary to maintain or enhance the reliability of electric service to Minnesota
consumers;

(2) needed, applying the criteria in section 216B.243, subdivision 3; and

(3) in the public interest, taking into account electric energy system needs and economic,
environmental, and social interests affected by the project.

new text begin (b) The commission may certify a project proposed under subdivision 2, paragraph (e),
only if the commission finds the proposed project is in the public interest.
new text end

Sec. 8.

Minnesota Statutes 2022, section 216B.243, subdivision 8, as amended by Laws
2023, chapter 7, section 23, is amended to read:

Subd. 8.

Exemptions.

(a) 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; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined 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;

(6) the 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;

(7) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating system, as defined in section 216E.01, subdivision 9a, deleted text begin if the
system is owned and operated by an independent power producer and the electric output of
the system: deleted text end new text begin for which a site permit is submitted by an independent power producer under
chapter 216E or 216F; or
new text end

deleted text begin (i) is not sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator; or
deleted text end

deleted text begin (ii) is sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator, provided that the system
represents solar or wind capacity that the entity purchasing the system's electric output was
ordered by the commission to develop in the entity's most recent integrated resource plan
approved under section 216B.2422; or
deleted text end

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating system that is a large energy facility, as defined in section
216B.2421, subdivision 2, engaging in a repowering project that:

(i) will not result in the system exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the system exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increase.

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating system
that is a large energy facility to increase its efficiency without increasing its nameplate
capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

Sec. 8.

Minnesota Statutes 2022, 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 deleted text begin $100,000 deleted text end new text begin $1,000,000 new text end , or merge or consolidate with another public utility or
transmission company 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, the commission shall investigate, with or without public hearing. The
commission shall hold a public hearing, upon such notice as the commission may require.
If the commission finds that the proposed action is consistent with the public interest, it
shall give its consent and approval by order in writing. In reaching its determination, 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.

This section does not apply to the purchase of property to replace or add to the plant of
the public utility by construction.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2022, section 216B.62, subdivision 3b, is amended to read:

Subd. 3b.

Assessment for department regional and national duties.

deleted text begin (a) deleted text end In addition
to other assessments in subdivision 3, the department may assess up to deleted text begin $500,000 deleted text end new text begin $1,000,000 new text end
per fiscal year to perform the duties under section 216A.07, subdivision 3a, and to conduct
analysis that assesses energy grid reliability at state, regional, and national levels. 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 begin (b) By February 1, 2023, the commissioner of commerce must submit a written report
to the chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy. The report must describe how the department has used
utility grid assessment funding under paragraph (a) and must explain the impact the grid
assessment funding has had on grid reliability in Minnesota.
deleted text end

deleted text begin (c) This subdivision expires June 30, 2023.
deleted 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. 10.

new text begin [216C.390] LEGISLATIVE FINDINGS.
new text end

new text begin The legislature finds that increasing the competitiveness of Minnesota is critically
important to ensuring the state's economy is strong and growing. Increasing competitiveness
can be accomplished by improving productivity, competition, and investments.
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. 11.

new text begin [216C.391] MINNESOTA STATE COMPETITIVENESS FUND.
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) "Competitive funds" means federal funds awarded to selected applicants based on
the grantor's evaluation of the strength of an application measured against all other
applications.
new text end

new text begin (c) "Disadvantaged community" has the meaning given by the federal agency disbursing
federal funds.
new text end

new text begin (d) "Eligible entity" means an entity located in Minnesota that is eligible to receive
federal funds, or an entity that has at least one Minnesota-based partner, as determined by
the grantor of the federal funds.
new text end

new text begin (e) "Federal funds" means federal formula or competitive funds available for award to
applicants for energy projects under the Infrastructure Investment and Jobs Act, Public Law
117-58, or the Inflation Reduction Act of 2022, Public Law 117-169.
new text end

new text begin (f) "Formula funds" means federal funds awarded to all eligible applicants on a
noncompetitive basis.
new text end

new text begin (g) "Match" means the amount of state money a successful grantee in Minnesota is
required to contribute to a project as a condition of receiving federal funds.
new text end

new text begin (h) "Political subdivision" has the meaning given in section 331A.01, subdivision 3.
new text end

new text begin (i) "Project" means the activities undertaken by an eligible entity awarded federal funds
that are located in Minnesota or directly benefit Minnesotans.
new text end

new text begin (j) "Tribal government" has the meaning given in section 116J.64, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of account; eligible expenditures. new text end

new text begin (a) A state competitiveness
fund account is created in the special revenue fund of the state treasury. The commissioner
must credit to the account appropriations and transfers to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund but remains available until June 30, 2034. The commissioner is
the fiscal agent and must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner and must be used to:
new text end

new text begin (1) pay all or any portion of the state match required as a condition of receiving federal
funds, or to otherwise reduce the cost for projects that are awarded federal funds;
new text end

new text begin (2) award grants under subdivision 4 to obtain grant development assistance for eligible
entities; and
new text end

new text begin (3) pay the reasonable costs incurred by the department to assist eligible entities
successfully compete for available federal funds.
new text end

new text begin Subd. 3. new text end

new text begin Grant awards; eligible entities; priorities. new text end

new text begin (a) Grants may be awarded under
this section to eligible entities in accordance with the following order of priorities:
new text end

new text begin (1) federal formula funds directed to the state that require a match;
new text end

new text begin (2) federal funds directed to a political subdivision or a Tribal government that require
a match;
new text end

new text begin (3) federal funds directed to an institution of higher education, a consumer-owned utility,
a business, or a nonprofit organization that require a match;
new text end

new text begin (4) federal funds directed to investor-owned utilities that require a match;
new text end

new text begin (5) federal funds directed to an eligible entity not included in clauses (1) to (4) that
require a match; and
new text end

new text begin (6) all other grant opportunities directed to eligible entities that do not require a match
but for which the commissioner determines that a grant made under this section is likely to
enhance the likelihood of an applicant receiving federal funds, or to increase the potential
amount of federal funds received.
new text end

new text begin (b) By November 15, 2023, the commissioner must develop and publicly post, and report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over energy finance, the federal energy grant funds that are eligible for state matching funds
under this section.
new text end

new text begin Subd. 4. new text end

new text begin Grant awards; grant development assistance. new text end

new text begin Grants may be awarded under
this section to entities with expertise and experience in grant development to assist eligible
entities to prepare grant applications for federal funds. Eligible grantees under this subdivision
include regional development commissions established in section 462.387, the West Central
Initiative Foundation, Minnesota Municipal Utilities Association, Minnesota Rural Electric
Association, consumer-owned utilities, Tribal governments, and any entity the commissioner
determines enhances the competitiveness of grant applications by disadvantaged communities
and from eligible entities located in areas not served by a regional development commission.
new text end

new text begin Subd. 5. new text end

new text begin Grant amounts. new text end

new text begin (a) For grants that meet the criteria in subdivision 3, paragraph
(a), clauses (1) to (3), the maximum grant award for each entity is 100 percent of the required
match.
new text end

new text begin (b) For grants that meet the criteria in subdivision 3, paragraph (a), clauses (4) and (5),
the maximum grant award is 50 percent of the required match, except that if the commissioner
determines that at least 40 percent of the direct benefits resulting from a project awarded
federal funds would be realized by residents of a disadvantaged community, the commissioner
may award up to 100 percent of the required match.
new text end

new text begin (c) For projects that meet the criteria in subdivision 3, paragraph (a), clause (6), the
commissioner may award a grant up to ten percent of the amount of federal funds requested
by the applicant, except that if the commissioner determines that at least 40 percent of the
direct benefits resulting from a project awarded federal funds would be realized by residents
of a disadvantaged community, the commissioner may award up to 20 percent of the amount
of federal funds requested.
new text end

new text begin (d) Except for the commissioner, when matching federal funds are directed to the state,
no single entity may receive as an award or subaward grants under this subdivision totaling
more than $15,000,000.
new text end

new text begin (e) The maximum grant award for each entity under subdivision 4 is $300,000.
new text end

new text begin Subd. 6. new text end

new text begin Grant awards; administration. new text end

new text begin (a) An eligible entity seeking a grant award
under subdivision 3 or an entity seeking a grant award under subdivision 4 must submit an
application to the commissioner on a form prescribed by the commissioner. The
commissioner is responsible for receiving and reviewing grant applications and awarding
grants under this section, and shall develop administrative procedures governing the
application, evaluation, and award process. The commissioner may not make a grant award
under this section unless the commissioner has determined, and has notified the applicant
in writing, that the application is complete. In awarding grants under this section, the
commissioner shall endeavor to make awards to applicants from all regions of the state.
new text end

new text begin (b) The department must provide technical assistance to applicants. Applicants may also
receive grant development assistance at no cost from entities awarded grants for that purpose
under subdivision 4.
new text end

new text begin (c) Within ten business days of determining a grant award amount to an applicant, the
commissioner must:
new text end

new text begin (1) reserve that amount for that specific grant in the state competitiveness fund account;
and
new text end

new text begin (2) notify the Legislative Advisory Commission in writing of the reserved amount, the
name of the applicant, the purpose of the project, and the unreserved balance of funds
remaining in the account.
new text end

new text begin (d) Reserved funds are committed to the grant and use specified in the notice provided
under paragraph (c) and are unavailable for reservation or appropriation for other applications
unless and until the commissioner receives written notice from (1) the applicant that the
application for federal funds has been withdrawn, or (2) the federal grantor that the
application for which funds from the account were reserved has been denied federal funds.
new text end

new text begin (e) Reserved funds may only be expended upon presentation of written notice from the
federal grantor to the commissioner stating that the applicant will receive federal funds for
the project described in the application. If the amount of federal funds awarded to an applicant
differs from the amount requested in the application, the commissioner may adjust the award
made under this section accordingly.
new text end

new text begin (f) Reserved funds must be made for projects that demonstrate the project helps meet
the state's clean energy and energy-related climate goals through renewable energy
development, energy conservation, efficiency, or energy-related greenhouse gas reduction
benefits.
new text end

new text begin (g) The commissioner must notify the chairs and ranking minority members of the
legislative committees with jurisdiction over energy finance when the unreserved balance
of the competitiveness fund account reaches the following amounts: 50 percent, unreserved;
25 percent, unreserved; 15 percent, unreserved; and five percent. The notification must be
within ten days after each level of unreserved balance is reached.
new text end

new text begin Subd. 7. new text end

new text begin Report; audit. new text end

new text begin Beginning February 15, 2024, and each February 15 thereafter
until February 15, 2035, the commissioner must submit a written report to the chairs and
ranking minority members of the legislative committees with jurisdiction over energy finance
on the activities taken and expenditures made under this section. The report must, at a
minimum, include the following information for the most recent calendar year:
new text end

new text begin (1) the number of applications for grants filed with the commissioner and the total amount
of grant funds requested;
new text end

new text begin (2) each grant awarded;
new text end

new text begin (3) the number of additional personnel hired for the purposes of this section;
new text end

new text begin (4) expenditures on activities conducted under this section, reported separately for these
areas:
new text end

new text begin (i) the technical assistance provided;
new text end

new text begin (ii) grants made under subdivision 4 to entities to assist applicants with grant
development;
new text end

new text begin (iii) application review and evaluation, including applicants that were denied federal or
state grant awards and the reason for the denial;
new text end

new text begin (iv) information technology activities; and
new text end

new text begin (v) other expenditures;
new text end

new text begin (5) the unreserved balance remaining in the state competitiveness fund account;
new text end

new text begin (6) a copy of a financial audit of the department's expenditures under this section
conducted by an independent auditor;
new text end

new text begin (7) recommendations for legislation to enhance the ability of eligible entities to
successfully compete for federal funds;
new text end

new text begin (8) additional available funding opportunities to obtain energy-related funding from
federal agencies; and
new text end

new text begin (9) federal grant program changes that would affect the federal funds available to the
state and eligible applicants, including changes that would affect the required match for
receiving federal funds.
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. 12.

new text begin [216C.51] UTILITY DIVERSITY REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Public policy. new text end

new text begin It is the public policy of this state to encourage each utility
that serves Minnesota residents to focus on and improve the diversity of the utility's
workforce and suppliers.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin As used in this section, "utility" means:
new text end

new text begin (1) a public utility;
new text end

new text begin (2) a generation and transmission electric cooperative association;
new text end

new text begin (3) a municipal power agency;
new text end

new text begin (4) a municipal utility that provides electric service to 10,000 customers or more; or
new text end

new text begin (5) a cooperative electric association that provides electric service to 10,000 members
or more.
new text end

new text begin Subd. 3. new text end

new text begin Annual report. new text end

new text begin (a) Beginning March 15, 2024, and each March 15 thereafter,
each utility authorized to do business in Minnesota must file an annual diversity report to
the commissioner in the public eDockets system that describes:
new text end

new text begin (1) the utility's goals and efforts to increase diversity in the workplace, including current
workforce representation numbers and percentages; and
new text end

new text begin (2) all procurement goals and actual spending for female-owned, minority-owned,
veteran-owned, and small business enterprises during the previous calendar year.
new text end

new text begin (b) The goals under paragraph (a), clause (2), must be expressed as a percentage of the
total work performed by the utility submitting the report. The actual spending for
female-owned, minority-owned, veteran-owned, and small business enterprises must also
be expressed as a percentage of the total work performed by the utility submitting the report.
new text end

new text begin Subd. 4. new text end

new text begin Report elements. new text end

new text begin Each utility required to report under this section must include
the following in the annual report to the department:
new text end

new text begin (1) an explanation of the plan to increase diversity in the utility's workforce and suppliers
during the next year;
new text end

new text begin (2) an explanation of the plan to increase the goals;
new text end

new text begin (3) an explanation of the challenges faced to increase workforce and supplier diversity,
including suggestions regarding actions the department could take to help identify potential
employees and vendors;
new text end

new text begin (4) a list of the certifications the company recognizes that must include the Minnesota
Unified Certification Program; the Central Certification Program recognized by Hennepin
County, Ramsey County, the city of St. Paul, and the city of Minneapolis Target Market
program; and the Minnesota Office of State Procurement program for Targeted Group,
Economically Disadvantaged and Veteran-Owned small businesses;
new text end

new text begin (5) a point of contact for a potential employee or vendor that wishes to work for or do
business with the utility; and
new text end

new text begin (6) a list of successful actions taken to increase workforce and supplier diversity, in
order to encourage other companies to emulate best practices.
new text end

new text begin Subd. 5. new text end

new text begin State data. new text end

new text begin Each annual report must include as much state-specific data as
possible. If the submitting utility does not submit state-specific data, the utility must include
any relevant national data the utility possesses, explain why the utility could not submit
state-specific data, and detail how the utility intends to include state-specific data in future
reports, if possible.
new text end

new text begin Subd. 6. new text end

new text begin Publication; retention. new text end

new text begin The department must publish an annual report on the
department's website and file the report in the public eDockets system, and must maintain
each annual report for at least five years.
new text end

new text begin Subd. 7. new text end

new text begin Annual workshop. new text end

new text begin Beginning in 2024, and continuing annually thereafter, the
Minnesota Public Utilities Commission must organize a workshop for utilities that is open
to members of the public and that focuses on utility efforts to (1) advance supplier diversity,
and (2) collaboratively explore solutions to advance supplier diversity.
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. 13.

Minnesota Statutes 2022, section 237.55, is amended to read:

237.55 ANNUAL REPORT ON TELECOMMUNICATIONS ACCESS.

The commissioner of commerce must prepare a report for presentation to the Public
Utilities Commission by deleted text begin January deleted text end new text begin March new text end 31 deleted text begin of deleted text end each year. Each report must review the
accessibility of telecommunications services to persons who have communication disabilities,
describe services provided, account for annual revenues and expenditures deleted text begin for each aspect
of the fund to date deleted text end , and include deleted text begin predicted program deleted text end new text begin anticipated new text end future deleted text begin operation deleted text end new text begin program
operations new text end .

Sec. 14.

Laws 2005, chapter 97, article 10, section 3, as amended by Laws 2013, chapter
85, article 7, section 9, is amended to read:

Sec. 3. SUNSET.

Sections 1 and 2 deleted text begin shall deleted text end expire deleted text begin on deleted text end June 30, deleted text begin 2023 deleted text end new text begin 2028 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. 15. new text begin DECOMMISSIONING AND DEMOLITION PLAN FOR COAL-FIRED
PLANT.
new text end

new text begin The public utility that owns an electric generation facility powered by coal that is located
within the St. Croix National Scenic Riverway and is scheduled for retirement in 2028 must
develop a plan and detailed schedule of activities that it proposes to undertake to
decommission and demolish the electric generation facility and to remediate pollution at
the electric generation facility site. The public utility must file the plan with the Minnesota
Public Utilities Commission as part of the public utility's next resource plan filing under
Minnesota Statutes, section 216B.2422, or in a separate filing by December 31, 2025,
whichever is earlier. A copy of the plan and schedule must be filed on the same date with
the governing body of the municipality where the electric generation facility is located.
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. 16. new text begin TRIBAL ADVOCACY COUNCIL ON ENERGY; DEPARTMENT OF
COMMERCE SUPPORT.
new text end

new text begin (a) The Department of Commerce must provide technical support and subject matter
expertise to assist and help facilitate any efforts taken by the 11 federally recognized Indian
Tribes in Minnesota to establish a Tribal advocacy council on energy.
new text end

new text begin (b) When providing support to a Tribal advocacy council on energy, the Department of
Commerce may assist the council to:
new text end

new text begin (1) assess and evaluate common Tribal energy issues, including (i) identifying and
prioritizing energy issues, (ii) facilitating idea sharing between the Tribes to generate
solutions to energy issues, and (iii) assisting decision making with respect to resolving
energy issues;
new text end

new text begin (2) develop new statewide energy policies or proposed legislation, including (i) organizing
stakeholder meetings, (ii) gathering input and other relevant information, (iii) assisting with
policy proposal development, evaluation, and decision making, and (iv) helping facilitate
actions taken to submit, and obtain approval for or have enacted, policies or legislation
approved by the council;
new text end

new text begin (3) make efforts to raise awareness and provide educational opportunities with respect
to Tribal energy issues by (i) identifying information resources, (ii) gathering feedback on
issues and topics the council identifies as areas of interest, and (iii) identifying topics for
educational forums and helping facilitate the forum process; and
new text end

new text begin (4) identify, evaluate, and disseminate successful energy-related practices, and develop
mechanisms or opportunities to implement the successful practices.
new text end

new text begin (c) Nothing in this section requires or otherwise obligates the 11 federally recognized
Indian Tribes in Minnesota to establish a Tribal advocacy council on energy, nor does it
require or obligate any one of the 11 federally recognized Indian Tribes in Minnesota to
participate in or implement a decision or support an effort made by an established Tribal
advocacy council on energy.
new text end

new text begin (d) Any support provided by the Department of Commerce to a Tribal advocacy council
on energy under this section may be provided only upon request of the council and is limited
to issues and areas where the Department of Commerce's expertise and assistance is
requested.
new text end

APPENDIX

Repealed Minnesota Statutes: H2754-1

16B.24 GENERAL AUTHORITY.

Subd. 13.

Electric vehicle charging.

The commissioner shall require that a user of a charging station located on the State Capitol complex used to charge a private electric vehicle pay an electric service fee. The commissioner shall set the electric service fee rate to cover the electricity costs for charging an electric vehicle and for the administrative costs associated with providing electric charging stations.

216B.16 RATE CHANGE; PROCEDURE; HEARING.

Subd. 10.

Intervenor compensation.

(a) A nonprofit organization or an individual granted formal intervenor status by the commission is eligible to receive compensation.

(b) The commission may order a utility to compensate all or part of an eligible intervenor's reasonable costs of participation in a general rate case that comes before the commission when the commission finds that the intervenor has materially assisted the commission's deliberation and when a lack of compensation would present financial hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor in any proceeding. For the purpose of this subdivision, "materially assisted" means that the intervenor's participation and presentation was useful and seriously considered, or otherwise substantially contributed to the commission's deliberations in the proceeding.

(c) In determining whether an intervenor has materially assisted the commission's deliberation, the commission must consider, among other factors, whether:

(1) the intervenor represented an interest that would not otherwise have been adequately represented;

(2) the evidence or arguments presented or the positions taken by the intervenor were an important factor in producing a fair decision;

(3) the intervenor's position promoted a public purpose or policy;

(4) the evidence presented, arguments made, issues raised, or positions taken by the intervenor would not have been a part of the record without the intervenor's participation; and

(5) the administrative law judge or the commission adopted, in whole or in part, a position advocated by the intervenor.

(d) In determining whether the absence of compensation would present financial hardship to the intervenor, the commission must consider:

(1) whether the costs presented in the intervenor's claim reflect reasonable fees for attorneys and expert witnesses and other reasonable costs; and

(2) the ratio between the costs of intervention and the intervenor's unrestricted funds.

(e) An intervenor seeking compensation must file a request and an affidavit of service with the commission, and serve a copy of the request on each party to the proceeding. The request must be filed 30 days after the later of (1) the expiration of the period within which a petition for rehearing, amendment, vacation, reconsideration, or reargument must be filed or (2) the date the commission issues an order following rehearing, amendment, vacation, reconsideration, or reargument.

(f) The compensation request must include:

(1) the name and address of the intervenor or representative of the nonprofit organization the intervenor is representing;

(2) proof of the organization's nonprofit, tax-exempt status;

(3) the name and docket number of the proceeding for which compensation is requested;

(4) a list of actual annual revenues and expenses of the organization the intervenor is representing for the preceding year and projected revenues, revenue sources, and expenses for the current year;

(5) the organization's balance sheet for the preceding year and a current monthly balance sheet;

(6) an itemization of intervenor costs and the total compensation request; and

(7) a narrative explaining why additional organizational funds cannot be devoted to the intervention.

(g) Within 30 days after service of the request for compensation, a party may file a response, together with an affidavit of service, with the commission. A copy of the response must be served on the intervenor and all other parties to the proceeding.

(h) Within 15 days after the response is filed, the intervenor may file a reply with the commission. A copy of the reply and an affidavit of service must be served on all other parties to the proceeding.

(i) If additional costs are incurred as a result of additional proceedings following the commission's initial order, the intervenor may file an amended request within 30 days after the commission issues an amended order. Paragraphs (e) to (h) apply to an amended request.

(j) The commission must issue a decision on intervenor compensation within 60 days of a filing by an intervenor.

(k) A party may request reconsideration of the commission's compensation decision within 30 days of the decision.

(l) If the commission issues an order requiring payment of intervenor compensation, the utility that was the subject of the proceeding must pay the compensation to the intervenor, and file with the commission proof of payment, within 30 days after the later of (1) the expiration of the period within which a petition for reconsideration of the commission's compensation decision must be filed or (2) the date the commission issues an order following reconsideration of its order on intervenor compensation.

216C.376 SOLAR FOR SCHOOLS PROGRAM FOR CERTAIN UTILITY SERVICE TERRITORY.

Subdivision 1.

Establishment; purpose.

The utility subject to section 116C.779 must operate a program to provide financial assistance to enable schools to install and operate solar energy systems that can be used as teaching tools and be integrated into the school curriculum.

Subd. 2.

Required plan.

(a) By October 1, 2021, the public utility must file a plan for the solar for schools program with the commissioner. The plan must contain but is not limited to the following elements:

(1) a description of how the public utility proposes to use incentive program money withheld from the renewable development account to provide financial assistance to schools at which a solar energy system is installed;

(2) an estimate of the amount of financial assistance that the public utility provides to a school under clause (1), and the length of time financial assistance is provided;

(3) administrative procedures governing the application and financial assistance award process, and the costs the public utility is projected to incur to administer the program;

(4) the public utility's proposed process for periodic reevaluation and modification of the program; and

(5) any additional information required by the commissioner.

(b) The public utility may not implement the program until the commissioner approves the public utility's plan submitted under this subdivision. The commissioner must approve a plan under this subdivision that the commissioner determines to be in the public interest no later than December 31, 2021. Any proposed modifications to the plan approved under this subdivision must be approved by the commissioner.

Subd. 3.

System eligibility.

A solar energy system is eligible to receive financial assistance under this section if it meets all of the following conditions:

(1) the solar energy system must be located on or adjacent to a school building receiving retail electric service from the public utility and completely located within the public utility's electric service territory, provided that any land situated between the school building and the site where the solar energy system is installed is owned by the school district or the state college or university in which the school building operates;

(2) the total aggregate nameplate capacity of all distributed generation serving the school building, including any subscriptions to a community solar garden under section 216B.1641, may not exceed the lesser of one megawatt alternating current or 120 percent of the average annual electric energy consumption of the school building; and

(3) has real-time and cumulative display devices, located in a prominent location accessible to students and the public, that indicate the system's electrical performance.

Subd. 4.

Application process.

(a) A school seeking financial assistance under this section must submit an application to the public utility, including a plan for how the school uses the solar energy system as a visible learning tool for students, teachers, and visitors to the school, and how the solar energy system may be integrated into the school's curriculum.

(b) The public utility must award financial assistance under this section on a first-come, first-served basis.

(c) The public utility must discontinue accepting applications under this section after all money withheld under subdivision 5 are allocated to program participants, including funds from canceled projects.

Subd. 5.

Program funding.

(a) In 2022, the public utility subject to section 116C.779 must withhold $8,000,000 from the transfer made under section 116C.779, subdivision 1, paragraph (e), to pay for assistance provided by the program under this section. The money withheld under this paragraph must be used to pay for financial assistance awarded under this section and the costs to administer this section. Any money that remains unexpended on June 30, 2027, cancels to the renewable development account.

(b) The renewable energy credits associated with the electricity generated by a solar energy system installed under this section are the property of the public utility that is subject to this section for the life of the system, regardless of the duration of the financial assistance provided by the public utility under this section.

Subd. 6.

Limitation.

(a) No more than 60 percent of the financial assistance provided by the public utility to schools under this section may be provided 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. If, after December 31, 2024, there is an insufficient number of applicant schools to fulfill the requirements of this paragraph, the remaining amounts may be provided to any school that is otherwise eligible to receive financial assistance under this section but for the requirements of this paragraph.

(b) No more than ten percent of the total amount of financial assistance provided by the public utility to schools under this section may be provided to schools that are part of the same school district or state college or university.

(c) Paragraph (a) does not apply to a state college or university.

Subd. 7.

Technical assistance.

The commissioner may provide technical assistance to schools to develop and execute projects under this section.

Subd. 8.

Program information.

The public utility must provide information requested by the commissioner that the commissioner determines is necessary to complete the report required under section 216C.375, subdivision 11.

Subd. 9.

Application deadline.

No application may be submitted under this section after December 31, 2025.