HF 854

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/08/2013 08:47am

A bill for an act
relating to energy; regulating conservation improvement investments for
low-income programs; requiring certificate of need approval for certain
high-voltage transmission lines; amending Minnesota Statutes 2012, section
216B.241, subdivision 7.

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

Section 1.

Minnesota Statutes 2012, section 216B.241, subdivision 7, is amended to
read:

Subd. 7.

Low-income programs.

(a) The commissioner shall ensure that each
utility and association provides low-income programs. When approving spending and
energy-savings goals for low-income programs, the commissioner shall consider historic
spending and participation levels, energy savings for low-income programs, and the
number of low-income persons residing in the utility's service territory. A new text begin municipal new text end utility
that furnishes gas service must spend at least 0.2 percent new text begin , and a public utility furnishing
gas service must spend at least 0.4 percent, new text end of its new text begin most recent three-year average new text end 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 0.1 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. Beginning in 2010, a utility or association that furnishes
electric service must spend 0.2 percent of its gross operating revenue from residential
customers in the state on low-income programs.

(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.

(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 1c, paragraph
(g). 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.

(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 begin (e) The costs and benefits associated with any approved low-income gas or electric
conservation improvement program that is not cost-effective when considering the costs
and benefits to the utility 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 utility. The energy and demand savings may, at the discretion of the utility, be applied
toward the calculation of overall portfolio energy and demand savings for purposes of
determining progress toward annual goals and in the financial incentive mechanism.
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 TRANSMISSION LINE; CERTIFICATE OF NEED REQUIRED AND
EVIDENCE REQUIRED.
new text end

new text begin (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.
new text end

new text begin (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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to route permits and certificate of need applications pending on or after that date.
new text end