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HF 4466

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/28/2022 06:46pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/21/2022

Current Version - as introduced

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A bill for an act
relating to energy; prohibiting cost recovery for motor vehicle incentive programs;
establishing that motor vehicle incentive programs are not an efficient
fuel-switching improvement for consumer-owned utilities; amending Minnesota
Statutes 2020, section 216B.16, by adding a subdivision; Minnesota Statutes 2021
Supplement, section 216B.2403, subdivision 8.

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

Section 1.

Minnesota Statutes 2020, section 216B.16, is amended by adding a subdivision
to read:


new text begin Subd. 18a. new text end

new text begin Motor vehicle incentive programs. new text end

new text begin (a) The commission must not allow a
public utility to recover costs from ratepayers relating to, place in the public utility's rate
base, earn a rate of return from, or receive performance-based incentives for:
new text end

new text begin (1) investments made or expenses incurred by a public utility that consist of motor
vehicle purchase or lease incentives;
new text end

new text begin (2) motor vehicle rebate programs; or
new text end

new text begin (3) incentives or rebate programs related to motor vehicle infrastructure.
new text end

new text begin (b) This subdivision does not:
new text end

new text begin (1) prohibit a public utility from otherwise providing a motor vehicle incentive program;
or
new text end

new text begin (2) impact a public utility's ability to offer time-of-use rates.
new text end

Sec. 2.

Minnesota Statutes 2021 Supplement, section 216B.2403, subdivision 8, is amended
to read:


Subd. 8.

Criteria for efficient fuel-switching improvements.

(a) A fuel-switching
improvement is deemed efficient if, applying the technical criteria established under section
216B.241, subdivision 1d, paragraph (e), the improvement, relative to the fuel being
displaced:

(1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basis;

(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric consumer-owned utility, the reduction in emissions
must be measured based on the hourly emissions profile of the consumer-owned utility or
the utility's electricity supplier, as reported in the most recent resource plan approved by
the commission under section 216B.2422. If the hourly emissions profile is not available,
the commissioner must develop a method consumer-owned utilities must use to estimate
that value;

(3) is cost-effective, considering the costs and benefits from the perspective of the
consumer-owned utility, participants, and society; and

(4) is installed and operated in a manner that improves the consumer-owned utility's
system load factor.

(b) For purposes of this subdivision, "source energy" means the total amount of primary
energy required to deliver energy services, adjusted for losses in generation, transmission,
and distribution, and expressed on a fuel-neutral basis.

new text begin (c) A program that consists of motor vehicle purchase or lease incentives, motor vehicle
rebates, or incentive or rebate programs related to motor vehicle infrastructure is not an
efficient fuel-switching improvement. Nothing in this paragraph prohibits a consumer-owned
utility from otherwise providing a rebate or incentive program or impacts a consumer-owned
utility's ability to offer time-of-use rates.
new text end