HF 2922

as introduced - 87th Legislature (2011 - 2012) Posted on 03/19/2012 12:54pm

A bill for an act
relating to energy; utilities; modifying requirements pertaining to energy
conservation; amending Minnesota Statutes 2010, section 216B.241, by adding
subdivisions; repealing Minnesota Statutes 2010, section 216B.241, subdivisions
1b, 1d, 1e, 1f, 1g, 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 7, 8, 9; Minnesota Statutes 2011
Supplement, section 216B.241, subdivisions 1, 1a, 1c, 2.

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

Section 1.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Definitions. new text end

new text begin For purposes of this section and section 216B.16, subdivision
6b, the terms defined in this subdivision have the meanings given them.
new text end

new text begin (a) "Commission" means the Public Utilities Commission.
new text end

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Department" means the Department of Commerce.
new text end

new text begin (d) "Energy conservation" means demand-side management of energy supplies
resulting in a net reduction in energy use. Load management that reduces overall energy
use is energy conservation.
new text end

new text begin (e) "Energy conservation improvement" means a project that results in energy
efficiency or energy conservation. Energy conservation improvement may include waste
heat recovery converted into electricity but does not include electric utility infrastructure
projects approved by the commission under section 216B.1636.
new text end

new text begin (f) "Energy efficiency" means measures or programs, including energy conservation
measures or programs, that target consumer behavior, equipment, processes, or devices
designed to produce either an absolute decrease in consumption of electric energy or
natural gas or a decrease in consumption of electric energy or natural gas on a per unit
of production basis without a reduction in the quality or level of service provided to
the energy consumer.
new text end

new text begin (g) "Gross annual retail energy sales" means annual electric sales to all retail
customers in a utility's or association's Minnesota service territory or natural gas
throughput to all retail customers, including natural gas transportation customers, on a
utility's distribution system in Minnesota. For purposes of this section, gross annual
retail energy sales exclude:
new text end

new text begin (1) gas sales to:
new text end

new text begin (i) a large energy facility;
new text end

new text begin (ii) a large customer facility whose natural gas utility has been exempted by the
commissioner under subdivision 11, with respect to natural gas sales made to the large
customer facility; and
new text end

new text begin (iii) a commercial gas customer facility whose natural gas utility has been exempted
by the commissioner under subdivision 11, with respect to natural gas sales made to
the commercial gas customer facility; and
new text end

new text begin (2) electric sales to a large customer facility whose electric utility has been exempted
by the commissioner under subdivision 11, with respect to electric sales made to the
large customer facility.
new text end

new text begin (h) "Investments and expenses of a public utility" includes the investments
and expenses incurred by a public utility in connection with an energy conservation
improvement, including but not limited to:
new text end

new text begin (1) the differential in interest cost between the market rate and the rate charged on a
no-interest or below-market interest loan made by a public utility to a customer for the
purchase or installation of an energy conservation improvement; and
new text end

new text begin (2) the difference between the utility's cost of purchase or installation of energy
conservation improvements and any price charged by a public utility to a customer for
energy conservation improvements.
new text end

new text begin (i) "Large customer facility" means all buildings, structures, equipment, and
installations at a single site that collectively: (1) impose a peak electrical demand on an
electric utility's system of not less than 20,000 kilowatts, measured in the same way as the
utility that serves the customer facility measures electrical demand for billing purposes; or
(2) consume not less than 500 million cubic feet of natural gas annually. In calculating
peak electrical demand, a large customer facility may include demand offset by on-site
cogeneration facilities and, if engaged in mineral extraction, may aggregate peak energy
demand from the large customer facility's mining and processing operations.
new text end

new text begin (j) "Large energy facility" has the meaning given in section 216B.2421, subdivision
2, clause (1).
new text end

new text begin (k) "Load management" means an activity, service, or technology to change the
timing or the efficiency of a customer's use of energy that allows a utility or a customer to
respond to wholesale market fluctuations or to reduce peak demand for energy or capacity.
new text end

new text begin (l) "Low-income programs" means energy conservation improvement programs that
directly serve the needs of low-income persons, including low-income renters.
new text end

new text begin (m) "Qualifying utility" means a utility that supplies the energy to a customer that
enables the customer to qualify as a large customer facility.
new text end

new text begin (n) "Waste heat recovery converted into electricity" means an energy recovery
process that converts otherwise lost energy from the heat of exhaust stacks or pipes used
for engines or manufacturing or industrial processes, or the reduction of high pressure
in water or gas pipelines.
new text end

Sec. 2.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Investment, expenditure, and contribution; public utility. new text end

new text begin (a) For
purposes of this subdivision and subdivision 15, "public utility" has the meaning given it
in section 216B.02, subdivision 4. Each public utility shall spend and invest for energy
conservation improvements under this subdivision and subdivision 15 the following
amounts:
new text end

new text begin (1) for a utility that furnishes gas service, 0.5 percent of its gross operating revenues
from service provided in the state;
new text end

new text begin (2) for a utility that furnishes electric service, 1.5 percent of its gross operating
revenues from service provided in the state; and
new text end

new text begin (3) for a utility that furnishes electric service and that operates a nuclear-powered
electric generating plant within the state, two percent of its gross operating revenues
from service provided in the state.
new text end

new text begin For purposes of this paragraph, "gross operating revenues" do not include revenues
from large customer facilities exempted under paragraph (b), or from commercial gas
customers that are exempted under paragraph (c) or (e).
new text end

new text begin (b) The owner of a large customer facility may petition the commissioner to exempt
both electric and gas utilities serving the large customer facility from the investment and
expenditure requirements of paragraph (a) with respect to retail revenues attributable to
the large customer facility. The filing must include a discussion of the competitive or
economic pressures facing the owner of the facility and the efforts taken by the owner
to identify, evaluate, and implement energy conservation and efficiency improvements.
A filing submitted on or before October 1 of any year must be approved within 90 days
and become effective January 1 of the year following the filing, unless the commissioner
finds that the owner of the large customer facility has failed to take reasonable measures
to identify, evaluate, and implement energy conservation and efficiency improvements.
If a facility qualifies as a large customer facility solely due to its peak electrical demand
or annual natural gas usage, the exemption may be limited to the qualifying utility if
the commissioner finds that the owner of the large customer facility has failed to take
reasonable measures to identify, evaluate, and implement energy conservation and
efficiency improvements with respect to the nonqualifying utility. Once an exemption is
approved, the commissioner may request the owner of a large customer facility to submit,
not more often than once every five years, a report demonstrating the large customer
facility's ongoing commitment to energy conservation and efficiency improvement after
the exemption filing. The commissioner may request such reports for up to ten years after
the effective date of the exemption, unless the majority ownership of the large customer
facility changes, in which case the commissioner may request additional reports for up to
ten years after the change in ownership occurs. The commissioner may, within 180 days
of receiving a report submitted under this paragraph, rescind any exemption granted under
this paragraph upon a determination that the large customer facility is not continuing
to make reasonable efforts to identify, evaluate, and implement energy conservation
improvements. A large customer facility that is, under an order from the commissioner,
exempt from the investment and expenditure requirements of paragraph (a) as of
December 31, 2010, is not required to submit a report to retain its exempt status, except as
otherwise provided in this paragraph with respect to ownership changes. No exempt large
customer facility may participate in a utility conservation improvement program unless the
owner of the facility submits a filing with the commissioner to withdraw its exemption.
new text end

new text begin (c) A commercial gas customer that is not a large customer facility and that
purchases or acquires natural gas from a public utility having fewer than 600,000 natural
gas customers in Minnesota may petition the commissioner to exempt gas utilities serving
the commercial gas customer from the investment and expenditure requirements of
paragraph (a) with respect to retail revenues attributable to the commercial gas customer.
The petition must be supported by evidence demonstrating that the commercial gas
customer has acquired or can reasonably acquire the capability to bypass use of the utility's
gas distribution system by obtaining natural gas directly from a supplier not regulated by
the commission. The commissioner shall grant the exemption if the commissioner finds
that the petitioner has made the demonstration required by this paragraph.
new text end

new text begin (d) The commissioner may require investments or spending greater than the amounts
required under this subdivision for a public utility whose most recent advance forecast
required under section 216B.2422 or 216C.17 projects a peak demand deficit of 100
megawatts or greater within five years under midrange forecast assumptions.
new text end

new text begin (e) A public utility or owner of a large customer facility may appeal a decision of
the commissioner under paragraph (b), (c), or (d) to the commission under subdivision
15. In reviewing a decision of the commissioner under paragraph (b), (c), or (d), the
commission shall rescind the decision if it finds that the required investments or spending
will: (1) not result in cost-effective energy conservation improvements; or (2) otherwise
not be in the public interest.
new text end

Sec. 3.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 12. new text end

new text begin Conservation improvement by cooperative association or
municipality. new text end

new text begin (a) This subdivision applies to:
new text end

new text begin (1) a cooperative electric association that provides retail service to its members;
new text end

new text begin (2) a municipality that provides electric service to retail customers; and
new text end

new text begin (3) a municipality with gross operating revenues in excess of $5,000,000 from sales
of natural gas to retail customers.
new text end

new text begin (b) Each cooperative electric association and municipality subject to this subdivision
shall spend and invest for energy conservation improvements under this subdivision
the following amounts:
new text end

new text begin (1) for a municipality, 0.5 percent of its gross operating revenues from the sale of
gas and 1.5 percent of its gross operating revenues from the sale of electricity, excluding
gross operating revenues from electric and gas service provided in the state to large
electric customer facilities; and
new text end

new text begin (2) for a cooperative electric association, 1.5 percent of its gross operating revenues
from service provided in the state, excluding gross operating revenues from service
provided in the state to large electric customer facilities indirectly through a distribution
cooperative electric association.
new text end

new text begin (c) Each municipality and cooperative electric association subject to this subdivision
shall identify and implement energy conservation improvement spending and investments
that are appropriate for the municipality or association, except that a municipality or
association may not spend or invest for energy conservation improvements that directly
benefit a large electric customer facility for which the commissioner has issued an
exemption under subdivision 11, paragraph (b).
new text end

new text begin (d) Each municipality and cooperative electric association subject to this subdivision
may spend and invest annually up to ten percent of the total amount required to be spent
and invested on energy conservation improvements under this subdivision on research
and development projects that meet the definition of energy conservation improvement in
subdivision 10 and that are funded directly by the municipality or cooperative electric
association.
new text end

new text begin (e) Load-management activities that do not reduce energy use but that increase the
efficiency of the electric system may be used to meet 50 percent of the conservation
investment and spending requirements of this subdivision.
new text end

new text begin (f) A generation and transmission cooperative electric association that provides
energy services to cooperative electric associations that provide electric service at retail to
consumers may invest in energy conservation improvements on behalf of the associations
it serves and may fulfill the spending and reporting requirements of this section on an
aggregate basis. A municipal power agency or other not-for-profit entity that provides
energy service to municipal utilities that provide electric service at retail may invest in
energy conservation improvements on behalf of the municipal utilities it serves and may
fulfill the spending and reporting requirements of this section on an aggregate basis,
under an agreement between the municipal power agency or not-for-profit entity and each
municipal utility for funding the investments.
new text end

new text begin (g) At least every four years, on a schedule determined by the commissioner, each
municipality or cooperative shall file an overview of its conservation improvement plan
with the commissioner. With this overview, the municipality or cooperative shall also
provide an evaluation to the commissioner detailing its energy conservation improvement
spending and investments for the previous period. The evaluation must briefly describe
each conservation program and must specify the energy savings or increased efficiency in
the use of energy within the service territory of the utility or association that is the result of
the spending and investments. The evaluation must analyze the cost-effectiveness of the
utility's or association's conservation programs, using a list of baseline energy and capacity
savings assumptions developed in consultation with the department. The commissioner
shall review each evaluation and make recommendations, where appropriate, to the
municipality or association to increase the effectiveness of conservation improvement
activities. Up to three percent of a utility's conservation spending obligation under this
section may be used for program pre-evaluation, testing, and monitoring and program
evaluation. The overview and evaluation filed by a municipality with less than 60,000,000
kilowatt-hours in annual retail sales of electric service may consist of a letter from the
governing board of the municipal utility to the department providing the amount of annual
conservation spending required of that municipality and certifying that the required
amount has been spent on conservation programs under this subdivision.
new text end

new text begin (h) The commissioner shall also review each evaluation for whether a portion of the
money spent on residential conservation improvement programs is devoted to programs
that directly address the needs of renters and low-income persons unless an insufficient
number of appropriate programs are available. For the purposes of this subdivision and
subdivision 24, low-income means an income at or below 50 percent of the state median
income.
new text end

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

Sec. 4.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 13. new text end

new text begin Report. new text end

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

Sec. 5.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 14. new text end

new text begin Manner of filing and service. new text end

new text begin (a) A public utility, generation and
transmission cooperative electric association, municipal power agency, cooperative
electric association, and municipal utility shall submit filings to the department via the
department's electronic filing system. The commissioner may approve an exemption
from this requirement in the event an affected utility or association is unable to submit
filings via the department's electronic filing system. All other interested parties shall
submit filings to the department via the department's electronic filing system whenever
practicable but may also file by personal delivery or by mail.
new text end

new text begin (b) Submission of a document to the department's electronic filing system constitutes
service on the department. Where department rule requires service of a notice, order, or
other document by the department, utility, association, or interested party upon persons on
a service list maintained by the department, service may be made by personal delivery,
mail, or electronic service, except that electronic service may only be made upon persons
on the service list who have previously agreed in writing to accept electronic service at an
electronic address provided to the department for electronic service purposes.
new text end

Sec. 6.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 15. new text end

new text begin Programs. new text end

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

new text begin (b) Each public utility subject to subdivision 11 may spend and invest annually up to
ten percent of the total amount required to be spent and invested on energy conservation
improvements under this section by the utility on research and development projects
that meet the definition of energy conservation improvement in subdivision 10 and that
are funded directly by the public utility.
new text end

new text begin (c) A public utility may not spend for or invest in energy conservation improvements
that directly benefit a large electric customer facility for which the commissioner has
issued an exemption pursuant to subdivision 11, paragraph (b). The commissioner shall
consider and may require a utility to undertake a program suggested by an outside source,
including a political subdivision or a nonprofit or community organization.
new text end

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

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

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

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

Sec. 7.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin Energy and conservation account. new text end

new text begin The energy and conservation account
is established in the special revenue fund in the state treasury. The commissioner must
deposit money contributed under subdivisions 11 and 12 in the energy and conservation
account in the special revenue fund. Money in the account is appropriated to the
department for programs designed to meet the energy conservation needs of low-income
persons and to make energy conservation improvements in areas not adequately served
under subdivision 15, including research and development projects included in the
definition of energy conservation improvement in subdivision 10. Interest on money
in the account accrues to the account. Using information collected under section
216C.02, subdivision 1, paragraph (b), the commissioner must, to the extent possible,
allocate enough money to programs for low-income persons to ensure that their needs
are being adequately addressed. The commissioner must request the commissioner
of finance to transfer money from the account to the commissioner of education for
an energy conservation program for low-income persons. In establishing programs,
the commissioner must consult political subdivisions and nonprofit and community
organizations, especially organizations engaged in providing energy and weatherization
assistance to low-income persons. At least one program must address the need for energy
conservation improvements in areas in which a high percentage of residents use fuel
oil or propane to fuel their source of home heating. The commissioner may contract
with a political subdivision, a nonprofit or community organization, a public utility,
a municipality, or a cooperative electric association to implement its programs. The
commissioner may provide grants to any person to conduct research and development
projects in accordance with this section.
new text end

Sec. 8.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 17. new text end

new text begin Recovery of expenses. new text end

new text begin The commission shall allow a utility to recover
expenses resulting from a conservation improvement program required by the department
and contributions to the energy and conservation account, unless the recovery would
be inconsistent with a financial incentive proposal approved by the commission. The
commission shall allow a cooperative electric association subject to rate regulation under
section 216B.026, to recover expenses resulting from energy conservation improvement
programs, load-management programs, and assessments and contributions to the energy
and conservation account unless the recovery would be inconsistent with a financial
incentive proposal approved by the commission. In addition, a utility may file annually, or
the Public Utilities Commission may require the utility to file, and the commission may
approve, rate schedules containing provisions for the automatic adjustment of charges
for utility service in direct relation to changes in the expenses of the utility for real
and personal property taxes, fees, and permits, the amounts of which the utility cannot
control. A public utility is eligible to file for adjustment for real and personal property
taxes, fees, and permits under this subdivision only if, in the year previous to the year in
which it files for adjustment, it has spent or invested at least 1.75 percent of its gross
revenues from provision of electric service, excluding gross operating revenues from
electric service provided in the state to large electric customer facilities for which the
commissioner has issued an exemption under subdivision 11, paragraph (b), and 0.6
percent of its gross revenues from provision of gas service, excluding gross operating
revenues from gas services provided in the state to large electric customer facilities for
which the commissioner has issued an exemption under subdivision 11, paragraph (b), for
that year for energy conservation improvements under this section.
new text end

Sec. 9.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 18. new text end

new text begin Ownership of energy conservation improvement. new text end

new text begin An energy
conservation improvement made to or installed in a building in accordance with this
section, except systems owned by the utility and designed to turn off, limit, or vary the
delivery of energy, are the exclusive property of the owner of the building except to the
extent that the improvement is subjected to a security interest in favor of the utility in
case of a loan to the building owner. The utility has no liability for loss, damage, or
injury caused directly or indirectly by an energy conservation improvement except for
negligence by the utility in purchase, installation, or modification of the product.
new text end

Sec. 10.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 19. new text end

new text begin Federal law prohibitions. new text end

new text begin If investments by public utilities in energy
conservation improvements are in any manner prohibited or restricted by federal law
and there is a provision under which the prohibition or restriction may be waived, then
the commission, the governor, or any other necessary state agency or officer shall take
all necessary and appropriate steps to secure a waiver with respect to those public utility
investments in energy conservation improvements included in this section.
new text end

Sec. 11.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 20. new text end

new text begin Efficient lighting program. new text end

new text begin (a) Each public utility, cooperative electric
association, and municipal utility that provides electric service to retail customers shall
include as part of its conservation improvement activities a program to strongly encourage
the use of fluorescent and high-intensity discharge lamps. The program must include at
least a public information campaign to encourage use of the lamps and proper management
of spent lamps by all customer classifications.
new text end

new text begin (b) A public utility that provides electric service at retail to 200,000 or more
customers shall establish, either directly or through contracts with other persons, including
lamp manufacturers, distributors, wholesalers, retailers, and local government units, a
system to collect for delivery to a reclamation or recycling facility spent fluorescent and
high-intensity discharge lamps from households and small businesses, as defined in
section 645.445, that generate an average of fewer than ten spent lamps per year.
new text end

new text begin (c) A collection system must include establishing reasonably convenient locations
for collecting spent lamps from households and financial incentives sufficient to encourage
spent lamp generators to take the lamps to the collection locations. Financial incentives
may include coupons for purchase of new fluorescent or high-intensity discharge lamps,
a cash-back system, or any other financial incentive or group of incentives designed
to collect the maximum number of spent lamps from households and small businesses
that is reasonably feasible.
new text end

new text begin (d) A public utility that provides electric service at retail to fewer than 200,000
customers, a cooperative electric association, or a municipal utility that provides electric
service at retail to customers may establish a collection system under paragraphs (b) and
(c) as part of conservation improvement activities required under this section.
new text end

new text begin (e) The commissioner of the Pollution Control Agency may not, unless clearly
required by federal law, require a public utility, cooperative electric association, or
municipality that establishes a household fluorescent and high-intensity discharge lamp
collection system under this section to manage the lamps as hazardous waste as long as
the lamps are managed to avoid breakage and are delivered to a recycling or reclamation
facility that removes mercury and other toxic materials contained in the lamps prior to
placement of the lamps in solid waste.
new text end

new text begin (f) If a public utility, cooperative electric association, or municipal utility contracts
with a local government unit to provide a collection system under this subdivision,
the contract must provide for payment to the local government unit of all the unit's
incremental costs of collecting and managing spent lamps.
new text end

new text begin (g) All the costs incurred by a public utility, cooperative electric association, or
municipal utility for promotion and collection of fluorescent and high-intensity discharge
lamps under this subdivision are conservation improvement spending under this section.
new text end

Sec. 12.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 21. new text end

new text begin Qualifying solar energy project. new text end

new text begin A utility or association may include
in its conservation plan programs for the installation of qualifying solar energy projects
as defined by section 216B.2411 to the extent of the spending allowed for generation
projects by section 216B.2411.
new text end

Sec. 13.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 22. new text end

new text begin Biomethane purchases. new text end

new text begin (a) A natural gas utility may include in its
conservation plan purchases of biomethane, and may use up to five percent of the total
amount to be spent on energy conservation improvements under this section for that
purpose. The cost-effectiveness of biomethane purchases may be determined by a
different standard than for other energy conservation improvements under this section if
the commissioner determines that doing so is in the public interest in order to encourage
biomethane purchases.
new text end

new text begin (b) For the purposes of this subdivision, "biomethane" means biogas produced
through anaerobic digestion of biomass, gasification of biomass, or other effective
conversion processes, that is cleaned and purified into biomethane that meets natural gas
utility quality specifications for use in a natural gas utility distribution system.
new text end

Sec. 14.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 23. new text end

new text begin Large solar electric generating plant. new text end

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

new text begin (1) "project" means a solar electric generation project consisting of arrays of solar
photovoltaic cells with a capacity of up to two megawatts located on the site of a closed
landfill in Olmsted County owned by the Minnesota Pollution Control Agency; and
new text end

new text begin (2) "cooperative electric association" means a generation and transmission
cooperative electric association that has a member distribution cooperative association to
which it provides wholesale electric service in whose service territory a project is located.
new text end

new text begin (b) A cooperative electric association may elect to count all of its purchases of
electric energy from a project toward its energy objective or standard under section
216B.1691.
new text end

new text begin (c) A cooperative electric association may include in its conservation plan purchases
of electric energy from a project.
new text end

Sec. 15.

Minnesota Statutes 2010, section 216B.241, is amended by adding a
subdivision to read:

new text begin Subd. 24. new text end

new text begin Low-income programs. new text end

new text begin (a) The commissioner shall ensure that each
utility and association provides low-income programs. When approving spending
goals for low-income programs, the commissioner shall consider historic spending and
participation levels and the number of low-income persons residing in the utility's service
territory. A utility that furnishes gas service must spend at least 0.2 percent of its gross
operating revenue from residential customers in the state on low-income programs. A
utility or association that furnishes electric service must spend at least 0.2 percent of its
gross operating revenue from residential customers in the state on low-income programs.
For a generation and transmission cooperative association, this requirement shall apply to
each association's members' aggregate gross operating revenue from sale of electricity to
residential customers in the state.
new text end

new text begin (b) To meet the requirements of paragraph (a), a utility or association may contribute
money to the energy and conservation account. An energy conservation improvement plan
must state the amount, if any, of low-income energy conservation improvement funds the
utility or association will contribute to the energy and conservation account. Contributions
must be remitted to the commissioner by February 1 of each year.
new text end

new text begin (c) The commissioner shall establish low-income programs to utilize money
contributed to the energy and conservation account under paragraph (b). In establishing
low-income programs, the commissioner shall consult political subdivisions, utilities, and
nonprofit and community organizations, especially organizations engaged in providing
energy and weatherization assistance to low-income persons. Money contributed to
the energy and conservation account under paragraph (b) must provide programs for
low-income persons, including low-income renters, in the service territory of the
utility or association providing the money. The commissioner shall record and report
expenditures and energy savings achieved as a result of low-income programs funded
through the energy and conservation account in the report required under subdivision 13.
The commissioner may contract with a political subdivision, nonprofit or community
organization, public utility, municipality, or cooperative electric association to implement
low-income programs funded through the energy and conservation account.
new text end

new text begin (d) A utility or association may petition the commissioner to modify its required
spending under paragraph (a) if the utility or association and the commissioner have been
unable to expend the amount required under paragraph (a) for three consecutive years.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, section 216B.241, subdivisions 1b, 1d, 1e, 1f, 1g, 2a,
2b, 2c, 3, 4, 5, 5a, 5b, 5c, 7, 8, and 9, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2011 Supplement, section 216B.241, subdivisions 1, 1a,
1c, and 2, new text end new text begin are repealed.
new text end