HF 4340

as introduced - 90th Legislature (2017 - 2018) Posted on 04/09/2018 02:45pm

A bill for an act
relating to energy; reducing the number of cooperative electric associations and
municipal electric utilities subject to the conservation improvement program;
amending Minnesota Statutes 2017 Supplement, section 216B.241, subdivision
1b.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 216B.241, subdivision 1b, is
amended to read:

Subd. 1b.

Conservation improvement by cooperative association or municipality.

(a) This subdivision applies to:

(1) a cooperative electric association that provides retail service to more than deleted text begin 5,000 deleted text end new text begin
15,000 new text end members;

(2) a municipality that provides electric service to more than deleted text begin 1,000 deleted text end new text begin 3,000 new text end retail customers;
and

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

(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:

(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

(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.

(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 energy facility or a large electric customer facility for which the commissioner
has issued an exemption under subdivision 1a, paragraph (b).

(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 1 and that are funded directly by the municipality or cooperative electric
association.

(e) Load-management activities may be used to meet 50 percent of the conservation
investment and spending requirements of this subdivision.

(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 conservation, spending, reporting, and energy-savings goals 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 conservation,
spending, reporting, and energy-savings goals 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.

(g) Each municipality or cooperative shall file energy conservation improvement plans
by June 1 on a schedule determined by order of the commissioner, but at least every three
years. Plans received by June 1 must be approved or approved as modified by the
commissioner by December 1 of the same year. The municipality or cooperative shall
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.

(h) The commissioner shall consider and may require a utility, association, or other
entity providing energy efficiency and conservation services under this section to undertake
a program suggested by an outside source, including a political subdivision, nonprofit
corporation, or community organization.

new text begin EFFECTIVE DATE. new text end

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