HF 2834

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/31/2014 03:40pm

A bill for an act
relating to energy; modifying, adding, or authorizing provisions governing
medically necessary equipment, low-income rate discounts, interconnection
of distributed renewable generation, electric vehicle charging tariffs, on-bill
payment programs, energy efficiency programs, emissions reduction planning,
certificates of need, solar energy systems, and transmission lines; requiring a
report; amending Minnesota Statutes 2012, sections 216B.098, subdivision
5; 216B.16, subdivision 14; 216B.1611, by adding a subdivision; 216B.241,
by adding subdivisions; 216B.2422, by adding a subdivision; 216B.243,
subdivision 8; 216E.01, by adding a subdivision; 216E.04, subdivision 2; 515.07;
515B.2-103; 515B.3-102; Laws 2013, chapter 57, section 2; proposing coding
for new law in Minnesota Statutes, chapters 216B; 216E; 500.

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

Section 1.

Minnesota Statutes 2012, section 216B.098, subdivision 5, is amended to
read:

Subd. 5.

Medically necessary equipment.

new text begin (a) new text end A utility shall reconnect or
continue service to a customer's residence where a medical emergency exists or where
medical equipment requiring electricity necessary to sustain life is in use, provided that
the utility receives deleted text begin from a medical doctor deleted text end written certification, or initial certification by
telephone and written certification within five business days, that failure to reconnect or
continue service will impair or threaten the health or safety of a resident of the customer's
household. deleted text begin The customer must enter into a payment agreement.
deleted text end

new text begin (b) Certification of the necessity for service is required. Certification may be
provided by:
new text end

new text begin (1) a licensed medical doctor;
new text end

new text begin (2) a licensed or registered physician's assistant;
new text end

new text begin (3) a licensed or registered nurse practitioner; or
new text end

new text begin (4) a registered nurse, but only to the extent of verifying the current diagnosis or
prescriptions made by a licensed medical doctor for the customer or member of the
customer's household.
new text end

new text begin (c) Except as provided in paragraph (d), a certification may not extend beyond six
months from the date of written certification.
new text end

new text begin (d) If a utility determines that a longer certification is appropriate given a particular
customer's circumstances, the utility may, at its sole discretion, extend the duration of a
certification for up to 12 months.
new text end

new text begin (e) A certification may be renewed, provided that the renewal complies with this
subdivision. A certification may be renewed by the same or another medical professional
who meets the qualifications of paragraph (b).
new text end

new text begin (f) A customer whose account is in arrears must contact and enter into a payment
agreement with the utility. The payment agreement must consider a customer's financial
circumstances and any extenuating circumstances of the household. The payment
agreement may, at the discretion of the utility, contain a provision by which the utility
forgives all or a portion of the amount in which the account is in arrears, which, if
implemented, extinguishes individual liability for the amount forgiven.
new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.16, subdivision 14, is amended to read:

Subd. 14.

Low-income electric rate discount.

A public utility shall fund an
affordability program for low-income customers deleted text begin in an amount based on a 50 percent electric
rate discount on the first 400 kilowatt-hours consumed in a billing period for low-income
residential customers of the utility deleted text end new text begin at a base annual funding level of $8,000,000. The annual
funding level shall increase in the calendar years subsequent to each commission approval
of a rate increase for the public utility's residential customers by the same percentage as the
approved residential rate increase. Costs for the program shall be included in the utility's
base rate new text end . For the purposes of this subdivision, "low-income" describes a customer who is
receiving assistance from the federal low-income home energy assistance program. The
affordability program must be designed to target participating customers with the lowest
incomes and highest energy costs in order to lower the percentage of income they devote
to energy bills, increase their payments, new text begin lower utility service disconnections, new text end and deleted text begin lower
deleted text end new text begin decrease new text end costs associated with collection activities on their accounts. For low-income
customers who are 62 years of age or older or disabled, the program must deleted text begin , in addition to
any other program benefits, deleted text end include a deleted text begin 50 percent electric rate discount on the first 400
kilowatt-hours consumed in a deleted text end new text begin $15 discount in each new text end billing period. For the purposes of this
subdivision, "public utility" includes only those public utilities with more than 200,000
residential electric service customers. The commission may issue orders necessary to
implement, administer, and recover the costs of the program on a timely basis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2014.
new text end

Sec. 3.

Minnesota Statutes 2012, section 216B.1611, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Project information. new text end

new text begin (a) Beginning July 1, 2014, each electric utility
shall request an applicant for interconnection of distributed renewable energy generation
to provide the following information, in a format prescribed by the commissioner:
new text end

new text begin (1) the nameplate capacity of the facility in the application;
new text end

new text begin (2) the total preincentive installed cost of the generation system at the facility;
new text end

new text begin (3) the energy source of the facility; and
new text end

new text begin (4) the zip code in which the facility is to be located.
new text end

new text begin (b) The commissioner shall develop or identify a system to collect and process the
information under this subdivision for each utility, and make non-project-specific data
available to the public on a periodic basis as determined by the commissioner, and in a
format determined by the commissioner. The commissioner may solicit proposals from
outside parties to develop the system.
new text end

new text begin (c) Electric utilities collecting and transferring data under this subdivision are not
responsible for the accuracy, completeness, or quality of the information under this
subdivision.
new text end

new text begin (d) Except as provided in paragraph (b), any information provided by an applicant
to the commissioner under this subdivision is nonpublic.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014, and applies to
applications received on or after that date.
new text end

Sec. 4.

new text begin [216B.1614] ELECTRIC VEHICLE CHARGING TARIFF.
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 them.
new text end

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

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

new text begin (d) "Renewable energy" has the meaning given in section 216B.169, subdivision 2,
paragraph (d).
new text end

new text begin Subd. 2. new text end

new text begin Required tariff. new text end

new text begin (a) By February 1, 2015, each public utility selling
electricity at retail must file with the commission a tariff that allows a customer to purchase
electricity solely for the purpose of recharging an electric vehicle. The tariff must:
new text end

new text begin (1) contain a time-of-day or off-peak rate;
new text end

new text begin (2) offer a customer the option to purchase electricity:
new text end

new text begin (i) from the utility's current mix of energy supply sources; or
new text end

new text begin (ii) entirely from renewable energy sources, subject to the conditions established
under section 216B.169, subdivision 2, paragraph (b), and subdivision 3, paragraph (a); and
new text end

new text begin (3) be made available to the residential customer class.
new text end

new text begin (b) The public utility may, at its discretion, offer the tariff to other customer classes.
new text end

new text begin (c) The commission shall, after notice and opportunity for public comment, approve,
modify, or reject the tariff. The commission may approve the tariff if the public utility
has demonstrated that the tariff:
new text end

new text begin (1) appropriately reflects off-peak versus peak cost differences in the rate charged;
new text end

new text begin (2) includes a mechanism to allow the recovery of costs reasonably necessary to
comply with this section, including costs to inform and educate customers about the
financial, energy conservation, and environmental benefits of electric vehicles and to
publicly advertise and promote participation in the customer-optional tariff;
new text end

new text begin (3) provides for clear and transparent customer billing statements including, but not
limited to, the amount of energy consumed under the tariff; and
new text end

new text begin (4) incorporates the cost of metering or submetering within the rate charged to
the customer.
new text end

new text begin (d) Within 60 days of commission approval of a public utility's tariff filed under this
section, the public utility shall make the tariff available to customers.
new text end

new text begin (e) The utility may at any time propose revisions to a tariff filed under this
subdivision based on changing costs or conditions.
new text end

new text begin Subd. 3. new text end

new text begin Data reporting. new text end

new text begin Each public utility providing a tariff under this section
shall periodically report to the commission, as established by the commission and on a form
prescribed by the commission, the following information, presented on a per-quarter basis:
new text end

new text begin (1) the number of customers who have arranged to purchase electricity under the
tariff;
new text end

new text begin (2) the total amount of electricity sold under the tariff; and
new text end

new text begin (3) other data required by the commission.
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 2012, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 5d. new text end

new text begin On-bill loan repayment programs. new text end

new text begin (a) For the purposes of this
subdivision:
new text end

new text begin (1) "utility" means a public utility, municipal utility, or cooperative electric
association that provides electric or natural gas service to retail customers; and
new text end

new text begin (2) "on-bill loan repayment program" means a program in which a utility collects
on a customer's bill repayment of a loan to the customer by an eligible lender to finance
the customer's investment in eligible energy conservation or renewable energy projects,
and remits loan repayments to the lender.
new text end

new text begin (b) A utility may include as part of its conservation improvement plan an on-bill
loan repayment program to enable a customer to finance eligible projects with installment
loans originated by an eligible lender. An eligible project is one that is either an energy
conservation improvement, or a project that uses an eligible renewable energy source as
that term is defined in section 216B.2411, subdivision 2, paragraph (b), but does not
include mixed municipal solid waste or refuse-derived fuel from mixed municipal solid
waste. An eligible renewable energy source also includes solar thermal technology that
collects the sun's radiant energy and transfers it to a storage medium for distribution as
energy to heat or cool air or water, and meets the requirements of section 216C.25. To be
an eligible lender, a lender must:
new text end

new text begin (1) have a federal or state charter and be eligible for federal deposit insurance;
new text end

new text begin (2) be a government entity, including an entity established under chapter 469, that
has authority to provide financial assistance for energy efficiency and renewable energy
projects;
new text end

new text begin (3) be a joint venture by utilities established under section 452.25; or
new text end

new text begin (4) be licensed by the Department of Commerce to conduct lending activities.
new text end

new text begin The commissioner must allow a utility broad discretion in designing and
implementing an on-bill loan repayment program, provided that the program complies
with this subdivision.
new text end

new text begin (c) A utility may establish an on-bill loan repayment program for all customer
classes or for a specific customer class.
new text end

new text begin (d) A public utility that implements an on-bill repayment program under this
subdivision must enter into a contract with one or more eligible lenders that complies
with the requirements of this subdivision and contains provisions addressing capital
commitments, loan origination, transfer of loans to the public utility for on-bill loan
repayment, and acceptance of loans returned due to delinquency or default.
new text end

new text begin (e) A public utility's contract with a lender must require the lender to: (1) comply
with all applicable federal and state laws, rules, and regulations related to lending practices
and consumer protection; (2) conform to reasonable and prudent lending standards; and (3)
provide to businesses that sell, install, and maintain eligible projects the ability to participate
in an on-bill repayment program under this subdivision that is nondiscriminatory.
new text end

new text begin (f) A public utility's contract with a lender may provide:
new text end

new text begin (1) for the public utility to purchase loans from the lender with a condition that the
lender must purchase back loans in delinquency or default; or
new text end

new text begin (2) for the lender to retain ownership of loans with the public utility servicing the
loans through on-bill repayment as long as payments are current.
new text end

new text begin The risk of default must remain with the lender. The lender shall not have recourse
against the public utility except in the event of negligence or breach of contract by the utility.
new text end

new text begin (g) If a public utility customer makes a partial payment on a utility bill that includes
a loan installment, the partial payment must be credited first to the amount owed for
utility service, including taxes and fees. A public utility may not suspend or terminate
a customer's utility service for delinquency or default on a loan that is being serviced
through the public utility's on-bill loan repayment program.
new text end

new text begin (h) An outstanding balance on a loan being repaid under this subdivision is a financial
obligation only of the customer who is signatory to the loan, and not to any subsequent
customer occupying the property associated with the loan. If the utility purchases loans
from the lender as authorized under paragraph (f), clause (1), the utility must return to the
lender a loan not repaid when a customer borrower no longer occupies the property.
new text end

new text begin (i) Costs incurred by a public utility under this subdivision are recoverable as provided
in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs
for billing system modifications necessary to implement and operate an on-bill loan
repayment program and for ongoing costs to operate the program. Approved costs may be
counted toward a utility's conservation spending requirements under subdivisions 1a and
1b. Energy savings from energy conservation improvements resulting from this section
may be counted toward satisfying a utility's energy-savings goals under subdivision 1c.
new text end

new text begin (j) This subdivision does not require a utility to terminate or modify an existing
financing program and does not prohibit a utility from establishing an on-bill financing
program in which the utility provides the financing capital.
new text end

new text begin (k) A municipal utility or cooperative electric association that implements an on-bill
loan repayment program shall design the program to address the issues identified in
paragraphs (d) to (h) as determined by the governing board of the utility or association.
new text end

Sec. 6.

Minnesota Statutes 2012, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 5e. new text end

new text begin Commercial and multifamily rental buildings. new text end

new text begin (a) The commissioner
shall solicit, after consulting with stakeholders about the terms of the solicitation, and may
approve for implementation, proposals for one or more utilities to voluntarily participate
in a program to address energy efficiency in rented commercial or residential buildings,
including rented multifamily residential buildings. A program under this subdivision may
be included in a conservation improvement plan under this section, or proposed separately.
new text end

new text begin (b) If a program under this subdivision employs an on-bill repayment mechanism,
it must, to the extent practical, use the criteria and standards of and comply with the
requirements of subdivision 5d, except that a mechanism may allow successor tenants
in a rented building to assume any balance of a loan paid through a utility bill, and may
allow the building owner to assume the balance when a unit is empty. Participation in
an on-bill repayment program under this subdivision is voluntary for building owners.
The commissioner may only approve a program under this subdivision that includes an
on-bill repayment mechanism requiring tenants occupying units in the building to repay a
loan if the tenants agree to do so in writing.
new text end

Sec. 7.

Minnesota Statutes 2012, section 216B.2422, is amended by adding a
subdivision to read:

new text begin Subd. 2c. new text end

new text begin Long-range emission reduction planning. new text end

new text begin Each utility required to file
a resource plan under this section shall include in the filing a narrative identifying and
describing: (1) the costs, opportunities, and technical barriers to the utility continuing to
make progress on its system toward achieving the state greenhouse gas emission reduction
goals established in section 216H.02, subdivision 1; and (2) the technologies, alternatives,
and steps the utility is considering to address those opportunities and barriers.
new text end

Sec. 8.

Minnesota Statutes 2012, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; 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; deleted text begin or
deleted text end

(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 new text begin ; or
new text end

new text begin (7) a wind energy conversion system or solar electric generation facility if the system
or facility is owned and operated by an independent power producer and the electric
output of the system or facility is not sold to an entity that provides retail or wholesale
electric service in Minnesota other than an entity that is a federally recognized regional
transmission organization or independent system operator 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 2012, section 216E.01, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Solar energy generating system. new text end

new text begin "Solar energy generating system"
means a set of devices whose primary purpose is to produce electricity by means of any
combination of collecting, transferring, or converting solar-generated energy.
new text end

Sec. 10.

new text begin [216E.021] SOLAR ENERGY SYSTEM SIZE DETERMINATION.
new text end

new text begin (a) This section must be used to determine whether a combination of solar energy
generating systems meets the definition of large electric power generating plant and is
subject to the commission's siting authority jurisdiction under this chapter. The alternating
current nameplate capacity of one solar energy generating system must be combined with
the alternating current nameplate capacity of any other solar energy generating system that:
new text end

new text begin (1) is constructed within the same 12-month period as the solar energy generating
system; and
new text end

new text begin (2) exhibits characteristics of being a single development, including but not limited
to ownership structure, an umbrella sales arrangement, shared interconnection, revenue
sharing arrangements, and common debt or equity financing.
new text end

new text begin (b) The commissioner of commerce shall provide forms and assistance for applicants
to make a request for a size determination. Upon written request of an applicant, the
commissioner shall provide a written size determination within 30 days of receipt of the
request and of any information requested by the commissioner. In the case of a dispute,
the chair of the Public Utilities Commission shall make the final size determination.
new text end

Sec. 11.

Minnesota Statutes 2012, section 216E.04, subdivision 2, 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 five 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; deleted text begin and
deleted text end

(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 new text begin ; and
new text end

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

Sec. 12.

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 General rule. new text end

new text begin A private entity may not prohibit or refuse to permit
installation, maintenance, or use of a roof-mounted solar energy system by the owner of a
single-family dwelling 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, except as provided in this
section.
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 single-family dwellings, whether
attached or detached, where the dwelling owner is responsible for maintenance, repair,
replacement, and insurance of the roof of the dwelling.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
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. 4. new text end

new text begin Allowable conditions. new text end

new text begin (a) This section does not prohibit a private entity
from requiring 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 its 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 for the repair, maintenance, or replacement
of 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 the installation,
maintenance, or use of solar energy systems, provided that those restrictions do not decrease
the projected generation of energy by a solar energy system by more than 20 percent or
increase its cost by more than (1) 20 percent, for a solar water heater, or (2) $2,000, for a
solar photovoltaic system, compared with the generation of energy and the cost of labor
and materials certified by the designer or installer of the solar energy system as originally
proposed without the restrictions. 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 (SRCC) or an equivalent certification agency. A solar energy
system for producing electricity must meet 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, 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 for the installation or use of a solar
energy system, the application for approval must be processed and approved in the same
manner as an application for approval of an architectural modification to the property,
and must not be willfully avoided or delayed. A private entity shall approve or deny an
application in writing. If an application is not denied in writing within 60 days from the
date of receipt of the application, the application is deemed approved unless the delay is
the result of a reasonable request for additional information.
new text end

Sec. 13.

Minnesota Statutes 2012, section 515.07, is amended to read:

515.07 COMPLIANCE WITH COVENANTS, BYLAWS, AND RULES.

Each apartment owner shall comply strictly with the bylaws and with the
administrative rules adopted pursuant thereto, as either of the same may be lawfully
amended from time to time, and with the covenants, conditions, and restrictions set forth in
the declaration or in the owner's deed to the apartment. Failure to comply with any of the
same shall be ground for an action to recover sums due, for damages or injunctive relief or
both maintainable by the manager or board of directors on behalf of the association of
apartment owners or, in a proper case, by an aggrieved apartment owner. This chapter is
subject to 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. 14.

Minnesota Statutes 2012, 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. 15.

Minnesota Statutes 2012, section 515B.3-102, is amended to read:

515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.

(a) Except as provided in subsections (b) and (c), 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 .

Sec. 16.

Laws 2013, chapter 57, section 2, is amended to read:

Sec. 2. TRANSMISSION LINE; CERTIFICATE OF NEED REQUIRED
AND EVIDENCE REQUIRED.

(a) A high-voltage transmission line with a capacity of 100 kilovolts or more proposed
to be located within a city in the metropolitan area as defined in Minnesota Statutes,
section 473.121, subdivision 2, for which a route permit application was filed between
June 2011 and August 2011, and a certificate of need application was filed between June
2012 and August 2012, to rebuild approximately eight miles of 69 kilovolt transmission
with a high-voltage transmission line to meet local area distribution needs, must be
approved in a certificate of need proceeding conducted under Minnesota Statutes, section
216B.243. The certificate of need may be approved only if the commission finds by clear
and convincing evidence that there is no feasible and available distribution level alternative
to the transmission line. In making its findings the commission shall consider the factors
provided in applicable law and rules including, without limitation, cost-effectiveness,
energy conservation, and the protection or enhancement of environmental quality.

(b) Further proceedings regarding the routing of a high-voltage transmission line
described in this section shall be suspended until the Public Utilities Commission has
made a determination that the transmission line is needed.

new text begin (c) If an application for a certificate of need described in paragraph (a) is withdrawn
or otherwise abandoned, this section shall apply to any high-voltage transmission line of
100 kilovolts or more proposed to meet the same needs as the line described in paragraph
(a) and that follows a route that is similar to that of the line subject to paragraph (a). In
addition, a certificate of need for a line subject to this paragraph is not effective until
30 days following the adjournment of the regular legislative session next following
commission approval of the certificate of need.
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. 17. new text begin LEGISLATIVE ENERGY COMMISSION; PROPANE CONVERSION
STRATEGIES.
new text end

new text begin (a) The Legislative Energy Commission is required to investigate the feasibility of
converting propane gas users to alternative sources of energy, including but not limited to
renewable technologies, such as geothermal ground-source heat pumps and solar thermal,
and nonrenewable sources, such as natural gas. The investigation, among other things,
should assess the technical and economic issues for converting nonmetropolitan users of
propane to users of alternative sources of heat. The investigation should assess to what
extent increased residential weatherization efforts could decrease the need for delivered
fuels.
new text end

new text begin (b) The commission is requested to complete its investigations so that any
recommendations for legislation are completed by January 15, 2015.
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