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Capital IconMinnesota Legislature

SF 1692

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/04/2019 09:42am

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

Current Version - 1st Engrossment

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A bill for an act
relating to energy; appropriating money for the Department of Commerce and
Public Utilities Commission; modifying the community solar garden program;
eliminating the size limitation on hydropower sources that may satisfy the
renewable energy standard; abolishing the nuclear power plant certificate of need
prohibition; modifying the commercial PACE program; prohibiting use of funds
for certain legal proceedings; modifying conservation improvement program
requirements; amending the renewable development account public utility annual
contribution; establishing criteria for utility cost recovery of energy storage system
pilot projects; establishing a grant program to assist public school districts to install
solar energy systems; establishing an electric vehicle charging station revolving
loan program; establishing a net zero emissions project; establishing a process to
compensate businesses for loss of business opportunity; establishing an advisory
task force on green roofs; requiring a cost-benefit analysis; requiring reports;
appropriating money; amending Minnesota Statutes 2018, sections 116C.779,
subdivision 1; 216B.16, by adding a subdivision; 216B.1641; 216B.1691,
subdivision 1; 216B.241, subdivisions 1c, 1d, 2, 2b, 3, 7; 216B.2422, subdivision
1, by adding a subdivision; 216B.243, subdivision 3b; 216C.435, subdivisions 3a,
8; 216C.436, subdivision 4, by adding a subdivision; Laws 2017, chapter 94, article
10, sections 28; 29; proposing coding for new law in Minnesota Statutes, chapters
116J; 216B; 216C; repealing Minnesota Statutes 2018, section 216B.241,
subdivision 1b.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginENERGY AND UTILITIES APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginDEPARTMENT OF COMMERCE
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 8,401,000
new text end
new text begin $
new text end
new text begin 8,401,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General
new text end
new text begin 5,285,000
new text end
new text begin 5,285,000
new text end
new text begin Special Revenue
new text end
new text begin 2,060,000
new text end
new text begin 2,060,000
new text end
new text begin Petroleum Tank
new text end
new text begin 1,056,000
new text end
new text begin 1,056,000
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin Petroleum Tank Release Compensation
Board
new text end

new text begin 1,056,000
new text end
new text begin 1,056,000
new text end

new text begin This appropriation is from the petroleum tank
fund to account for base adjustments provided
in Minnesota Statutes, section 115C.13, the
base for the petroleum tank release cleanup
fund in fiscal year 2023 is $0.
new text end

new text begin Subd. 3. new text end

new text begin Telecommunications
new text end

new text begin 3,069,000
new text end
new text begin 3,069,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 1,009,000
new text end
new text begin 1,009,000
new text end
new text begin Special Revenue
new text end
new text begin 2,060,000
new text end
new text begin 2,060,000
new text end

new text begin $2,060,000 each year is from the
telecommunications access Minnesota fund
account in the special revenue fund for the
following transfers. This appropriation is
added to the department's base.
new text end

new text begin (1) $1,620,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans. This
appropriation is available until June 30, 2021,
and any unexpended amount on that date must
be returned to the telecommunications access
Minnesota fund;
new text end

new text begin (2) $290,000 each year is to the chief
information officer for the purpose of
coordinating technology accessibility and
usability;
new text end

new text begin (3) $100,000 each year is to the Legislative
Coordinating Commission for captioning of
legislative coverage. This transfer is subject
to Minnesota Statutes, section 16A.281; and
new text end

new text begin (4) $50,000 each year is to the Office of
MN.IT Services for a consolidated access fund
to provide grants to other state agencies related
to accessibility of their web-based services.
new text end

new text begin Subd. 4. new text end

new text begin Energy Resources
new text end

new text begin 4,276,000
new text end
new text begin 4,276,000
new text end

new text begin (a) $150,000 each year is to remediate
vermiculate insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
new text end

new text begin (b) $832,000 each year is for energy regulation
and planning unit staff.
new text end

Sec. 3. new text beginPUBLIC UTILITIES COMMISSION
new text end

new text begin $
new text end
new text begin 7,793,000
new text end
new text begin $
new text end
new text begin 7,793,000
new text end

ARTICLE 2

ENERGY POLICY

Section 1.

Minnesota Statutes 2018, section 216B.1641, is amended to read:


216B.1641 COMMUNITY SOLAR GARDEN.

(a) The public utility subject to section 116C.779 shall file by September 30, deleted text begin2013deleted text endnew text begin 2019new text end,
a plan with the commission to operate a community solar garden program which shall begin
operations within 90 days after commission approval of the plan. new text beginUpon approval of the
program required under this section, a program approved under this section before September
30, 2019, must cease operations, except that a community solar garden for which an
application is deemed complete under a prior program may continue to operate under that
program.
new text endOther public utilities may file an application at their election. The community
solar garden program must be designed to offset the energy use of not less than five
subscribers in each community solar garden facility of which no single subscriber has more
than a 40 percent interest. The owner of the community solar garden may be a public utility
or any other entity or organization that contracts to sell the output from the community solar
garden to the utility under section 216B.164. deleted text beginThere shall be no limitation on the number or
cumulative generating capacity of community solar garden facilities other than the limitations
imposed under section 216B.164, subdivision 4c, or other limitations provided in law or
regulations.
deleted text endnew text begin The public utility must accept qualified proposals for community solar gardens
each year in a form and on a schedule specified in the program approved by the commission.
The public utility subject to this section may submit qualified proposals to the program.
new text end

(b) new text beginThe public utility must submit evaluations of all qualified proposals to the
commission, along with recommendations regarding which qualified proposals should be
accepted. The commission must select the qualified proposals the public utility must accept.
The qualified proposals with the lowest cost to the public utility's customers must be selected.
The total nameplate capacity of qualified proposals selected by the commission must not
exceed 25 megawatts per year.
new text end

new text begin (c) new text endA solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must
have a nameplate capacity of no more than one megawatt. new text beginWhen determining the size of a
community solar garden under this paragraph, the nameplate capacity of the community
solar garden must be combined with the nameplate capacity of any other community solar
garden that:
new text end

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

new text begin (2) exhibits characteristics indicating a single development with the community solar
garden, including but not limited to ownership structure, shared interconnection, revenue
sharing arrangements, and common debt or equity financing.
new text end

Each subscription shall be sized to represent at least 200 watts of the community solar
garden's generating capacity and to supply, when combined with other distributed generation
resources serving the premises, no more than 120 percent of the average annual consumption
of electricity by each subscriber at the premises to which the subscription is attributed.

deleted text begin (c)deleted text end new text begin(d) new text endThe solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility located in
the same county or a county contiguous to where the facility is located.

deleted text begin (d)deleted text end new text begin(e) new text endThe public utility must purchase from the community solar garden all energy
generated by the new text begincommunity new text endsolar garden. The purchase shall be at the rate deleted text begincalculated under
section 216B.164, subdivision 10, or, until that rate for the public utility has been approved
by the commission, the applicable retail rate. A solar garden is eligible for any incentive
programs offered under either section 116C.7792 or section 216C.415
deleted text endnew text begin proposed in the
qualified proposal submitted under paragraph (a)
new text end. A subscriber's portion of the purchase
shall be provided by a credit on the subscriber's bill.new text begin Notwithstanding any other provision
of law, the commission must not increase the rate paid for energy from the community solar
garden from the amount contained in the proposal.
new text end

deleted text begin (e)deleted text end new text begin(f) new text endThe commission may approve, disapprove, or modify a community solar garden
program. Any plan approved by the commission must:

(1) reasonably allow for the creation, financing, and accessibility of community solar
gardens;

(2) establish uniform standards, fees, and processes for the interconnection of community
solar garden facilities that allow the new text beginpublic new text endutility to recover reasonable interconnection
costs for each community solar garden;

(3) not apply different requirements to utility and nonutility community solar garden
facilities;

(4) be consistent with the public interest;

(5) identify the information that must be provided to potential subscribers to ensure fair
disclosure of future costs and benefits of subscriptions;

(6) include a program implementation schedule;

(7) identify all proposed rules, fees, and charges; deleted text beginand
deleted text end

(8) identify the means by which the program will be promoteddeleted text begin.deleted text endnew text begin;
new text end

new text begin (9) certify that the following information is contained in any promotional materials
developed by the solar garden owner or the utility purchasing the solar garden's generation
and is provided separately in writing to prospective subscribers at least 15 days prior to the
date a contract is entered into by the subscriber and the community solar garden owner:
new text end

new text begin (i) an estimate of the annual generation of electricity by the community solar garden,
calculated using the formula developed by the commission under paragraph (l);
new text end

new text begin (ii) an estimate of the length of time required to fully recover a subscriber's initial
lump-sum payments made to the owner of the solar garden prior to the delivery of electricity
to the subscriber by the solar garden, calculated using the formula developed by the
commission under paragraph (l); and
new text end

new text begin (iii) a commission-approved, standardized method for calculating the effect of future
electricity prices on community solar garden subscriptions based on the average residential
customer electric bill;
new text end

new text begin (10) require a solar garden owner to provide to prospective subscribers a completed
community solar garden subscriber disclosure checklist standard form at least 15 days prior
to the date a contract is entered into by the subscriber and the community solar garden
owner. The disclosure checklist shall include the following statement, in at least 12 point
type "utility rates and other federal, state, or local tax subsidies are subject to change. These
changes cannot be accurately predicted. Projected savings from your solar power subscription
are, therefore, subject to change;
new text end

new text begin (11) certify that the utility and the solar garden owner must submit copies of all marketing
and promotional material and sample contracts to the commission, and that the materials
are updated periodically;
new text end

new text begin (12) certify that the solar garden owner has placed sufficient financial resources into an
escrow account in order to reimburse subscribers for any financial losses incurred if the
project fails to meet the contract provisions;
new text end

new text begin (13) provide a mechanism for subscribers to transfer subscriptions to other new or current
subscribers, or to cancel subscriptions for a full refund;
new text end

new text begin (14) require a solar garden owner and the utility purchasing electricity generated by the
solar garden to forward customer complaints regarding the operation and administration of
the solar garden to the commission;
new text end

new text begin (15) require that the contract between a subscriber and the solar garden owner contains
a warranty for a minimum level of electricity to be delivered to the subscriber from the
community garden; and
new text end

new text begin (16) reflect the commission's determination that:
new text end

new text begin (i) the plan is financially viable; and
new text end

new text begin (ii) the contract between a subscriber and the solar garden owner is fair, reasonable, and
not discriminatory.
new text end

deleted text begin (f)deleted text end new text begin(g) new text endNotwithstanding any other law, neither the manager of nor the subscribers to a
community solar garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.

deleted text begin (g)deleted text end new text begin(h) new text endWithin 180 days of commission approval of a plan under this section, a new text beginpublic
new text end utility shall begin crediting subscriber accounts for each community solar garden facility
in its service territory, and shall file with the commissioner of commerce a description of
its crediting system.

new text begin (i) The nonprofit partnership established under section 216C.385, must develop a
community solar garden subscriber disclosure checklist standard form for use under paragraph
(f), clause (10).
new text end

new text begin (j) The commission shall require a community solar garden developer to submit a
registration form. A registration form shall include:
new text end

new text begin (1) the name, street address, mailing address, electronic mail address, and telephone
number of the registrant;
new text end

new text begin (2) the name and contact information of any registered agency or any person designated
by the registrant to receive notices and other communications from the commission;
new text end

new text begin (3) the name, address, and title of each officer or director;
new text end

new text begin (4) if the company is publicly traded, the company's most recent annual report filed with
the United States Securities and Exchange Commission;
new text end

new text begin (5) if the company is not publicly traded, the company's current balance sheet;
new text end

new text begin (6) a statement describing each jurisdiction where the registrant or its affiliate operates;
and
new text end

new text begin (7) any other information required by the commission.
new text end

new text begin The commission may reject an application that does not contain all of the information
required by this paragraph. The commission must approve or deny any application for
registration within 30 days of receiving the application. The commission may suspend or
revoke a registration and impose fees or penalties upon complaint by any interested party
or upon the commission's own motion after notice and opportunity for hearing. A community
solar garden developer registered under this paragraph must cooperate with commission
hearings and proceedings regarding customer complaints. A registered community solar
garden developer shall keep confidential customer-specific or private information relating
to the customer's electricity usage, financial situation, credit history, and other
residence-specific information obtained to implement the subscription contract.
new text end

deleted text begin (h)deleted text endnew text begin (k)new text end For the purposes of this section, the following terms have the meanings given:

(1) "subscriber" means a retail customer of a new text beginpublic new text endutility who owns one or more
subscriptions of a community solar garden facility interconnected with that new text beginpublic new text endutility;
deleted text begin and
deleted text end

(2) "subscription" means a contract between a subscriber and the owner of a solar gardendeleted text begin.deleted text endnew text begin;
and
new text end

new text begin (3) "qualified proposal" means a proposal that meets the requirements of the community
solar garden program approved by the commission and that:
new text end

new text begin (i) provides evidence the proposer is able to construct, own, and operate the community
solar garden for its proposed life;
new text end

new text begin (ii) delivers at least 60 percent of the energy generated by the community solar garden
facility to residential customers;
new text end

new text begin (iii) includes a plan to seek low-income residential customers in the community solar
garden;
new text end

new text begin (iv) provides a firm rate that customers of the public utility must pay for energy from
the community solar garden for the life of the community solar garden; and
new text end

new text begin (v) describes any benefits the community solar garden provides to the public utility, the
public utility's customers, the electric utility grid, the environment, and Minnesota.
new text end

new text begin (l) By July 30, 2019, the commission must develop a formula to be used by all solar
garden owners to estimate the annual amount of electricity generated by the solar garden.
new text end

new text begin (m) By July 30, 2019, the commission must develop a formula used by all solar garden
owners to estimate the length of time required to fully recover a subscriber's lump-sum
payments made to the solar garden owner prior to the delivery of electricity to the subscriber
by the solar garden.
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 any plan submitted to the commission for approval on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2018, section 216B.1691, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) Unless otherwise specified in law, "eligible energy
technology" means an energy technology that generates electricity from the following
renewable energy sources:

(1) solar;

(2) wind;

(3) hydroelectric deleted text beginwith a capacity of less than 100 megawattsdeleted text end;

(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated from
the resources listed in this paragraph; or

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; the predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge to produce electricity; and an energy recovery facility used to capture
the heat value of mixed municipal solid waste or refuse-derived fuel from mixed municipal
solid waste as a primary fuel.

(b) "Electric utility" means a public utility providing electric service, a generation and
transmission cooperative electric association, a municipal power agency, or a power district.

(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year by
an electric utility to retail customers of the electric utility or to a distribution utility for
distribution to the retail customers of the distribution utility. "Total retail electric sales"
does not include the sale of hydroelectricity supplied by a federal power marketing
administration or other federal agency, regardless of whether the sales are directly to a
distribution utility or are made to a generation and transmission utility and pooled for further
allocation to a distribution utility.

Sec. 3.

Minnesota Statutes 2018, section 216B.243, subdivision 3b, is amended to read:


Subd. 3b.

deleted text beginNuclear power plant; new construction prohibited; relicensingdeleted text endnew text begin Additional
storage of spent nuclear fuel
new text end.

deleted text begin (a) The commission may not issue a certificate of need for
the construction of a new nuclear-powered electric generating plant.
deleted text end

deleted text begin (b)deleted text end Any certificate of need for additional storage of spent nuclear fuel for a facility
seeking a license extension shall address the impacts of continued operations over the period
for which approval is sought.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2018, section 216C.435, subdivision 3a, is amended to read:


Subd. 3a.

Cost-effective energy improvements.

"Cost-effective energy improvements"
mean:

(1) any new text beginnew construction, new text endrenovationnew text begin,new text end or retrofitting ofdeleted text begin:deleted text enddeleted text begin(i)deleted text end qualifying commercial real
property to improve energy efficiency that is permanently affixed to the property, results
in a net reduction in energy consumption without altering the principal source of energy,
and has been identified in an energy audit as repaying the purchase and installation costs
in 20 years or less, based on the amount of future energy saved and estimated future energy
prices; deleted text beginor
deleted text end

deleted text begin (ii)deleted text end new text begin(2) any renovation or retrofitting of new text endqualifying residential real property that is
permanently affixed to the property and is eligible to receive an incentive through a program
offered by the electric or natural gas utility that provides service under section 216B.241
to the property or is otherwise determined to be a cost-effective energy improvement by
the commissioner under section 216B.241, subdivision 1d, paragraph (a);

deleted text begin (2)deleted text end new text begin(3) new text endpermanent installation of new or upgraded electrical circuits and related equipment
to enable electrical vehicle charging; or

deleted text begin (3)deleted text end new text begin(4) new text enda solar voltaic or solar thermal energy system attached to, installed within, or
proximate to a building that generates electrical or thermal energy from a renewable energy
source that has been identified in an energy audit or renewable energy system feasibility
study as repaying their purchase and installation costs in 20 years or less, based on the
amount of future energy saved and estimated future energy prices.

Sec. 5.

Minnesota Statutes 2018, section 216C.435, subdivision 8, is amended to read:


Subd. 8.

Qualifying commercial real property.

"Qualifying commercial real property"
means a multifamily residential dwelling, or a commercial or industrial building, that the
implementing entity has determined, after review of an energy audit or renewable energy
system feasibility study, can be benefited by installation of cost-effective energy
improvements.new text begin Qualifying commercial real property includes new construction.
new text end

Sec. 6.

Minnesota Statutes 2018, section 216C.436, subdivision 4, is amended to read:


Subd. 4.

Financing terms.

Financing provided under this section must have:

(1) a cost-weighted average maturity not exceeding the useful life of the energy
improvements installed, as determined by the implementing entity, but in no event may a
term exceed 20 years;

(2) a principal amount not to exceed the lesser ofnew text begin:
new text end

new text begin (i) the greater ofnew text end 20 percent of the assessed value of the real property on which the
improvements are to be installed or new text begin20 percent of the real property's appraised value, accepted
or approved by the mortgage lender; or
new text end

new text begin (ii) new text endthe actual cost of installing the energy improvements, including the costs of necessary
equipment, materials, and labor, the costs of each related energy audit or renewable energy
system feasibility study, and the cost of verification of installation; and

(3) an interest rate sufficient to pay the financing costs of the program, including the
issuance of bonds and any financing delinquencies.

Sec. 7.

Minnesota Statutes 2018, section 216C.436, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Improvements; real property or fixture. new text end

new text begin A cost-effective energy improvement
financed under a PACE loan program, including all equipment purchased in whole or in
part with loan proceeds under a loan program, is deemed real property or a fixture attached
to the real property.
new text end

Sec. 8.

Laws 2017, chapter 94, article 10, section 28, is amended to read:


Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR
THERMAL REBATES.

(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner
of a solar thermal system whose application was approved by the commissioner of commerce
after the effective date of this act.

(b) Unspent money remaining in the account established under Minnesota Statutes 2014,
section 216C.416, as of July 2, 2017, must be transferred to the deleted text beginC-LEAFdeleted text endnew text begin renewable
development
new text end account established under Minnesota Statutes 2016, section 116C.779,
subdivision 1
.

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.

Laws 2017, chapter 94, article 10, section 29, is amended to read:


Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF
UNEXPENDED GRANT FUNDS.

(a) No later than 30 days after the effective date of this section, the utility subject to
Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person
who received a grant funded from the renewable development account previously established
under that subdivision:

(1) after January 1, 2012; and

(2) before January 1, 2012, if the funded project remains incomplete as of the effective
date of this section.

The notice must contain the provisions of this section and instructions directing grant
recipients how unexpended funds can be transferred to the deleted text beginclean energy advancement funddeleted text endnew text begin
renewable development
new text end account.

(b) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after
receiving the notice required under paragraph (a), transfer any grant funds that remain
unexpended as of the effective date of this section to the deleted text beginclean energy advancement funddeleted text endnew text begin
renewable development
new text end account if, by that effective date, all of the following conditions
are met:

(1) the grant was awarded more than five years before the effective date of this section;

(2) the grant recipient has failed to obtain control of the site on which the project is to
be constructed;

(3) the grant recipient has failed to secure all necessary permits or approvals from any
unit of government with respect to the project; and

(4) construction of the project has not begun.

(c) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds
that remain unexpended five years after the grant funds are received by the grant recipient
if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant
recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary
of the receipt of the grant funds.

(d) A person who transfers funds to the deleted text beginclean energy advancement funddeleted text endnew text begin renewable
development
new text end account under this section is eligible to apply for funding from the deleted text beginclean energy
advancement fund
deleted text endnew text begin renewable developmentnew text end account.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text beginDEPARTMENT OF COMMERCE; USE OF APPROPRIATIONS;
PROHIBITION.
new text end

new text begin The commissioner of commerce is prohibited from using appropriations to the Department
of Commerce to fund any activities related to, or supporting the preparation or filing of, an
appeal of a Public Utilities Commission order issuing a certificate of need in Docket No.
PL-9/CN-14-916 to the court of appeals or supreme court.
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

ARTICLE 3

CONSERVATION IMPROVEMENT PROGRAMS

Section 1.

new text begin [216B.2402] CONSERVATION IMPROVEMENT PROGRAMS FOR
CONSUMER-OWNED UTILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purpose of this section, the terms defined in this
subdivision have the meanings given to them:
new text end

new text begin (a) "Consumer-owned utility" means a municipal gas utility, a municipal electric utility,
or a cooperative electric association.
new text end

new text begin (b) "Cumulative lifetime savings" means the total electric energy or natural gas savings
in a given year from energy conservation improvements installed that year or in previous
years that are still operational and providing savings in that year because the measures have
not reached the end of their useful lives.
new text end

new text begin (c) "Efficient electrification or conversion improvement" means a project that (1) results
in converting a customer from use of a fuel to the use of electric energy or natural gas sold
at retail by a utility subject to this section, resulting in a net increase of the use of electric
energy or natural gas and a net decrease in energy consumption overall on a fuel-neutral
basis, and (2) otherwise meets the criteria established in subdivision 7. An efficient
electrification improvement requires the installation of equipment that utilizes electric energy
or natural gas, resulting in a reduction or elimination of use of the previous fuel.
new text end

new text begin (d) "Electric utility infrastructure projects" means projects owned by a consumer-owned
utility that replace or modify existing electric utility infrastructure, including utility-owned
buildings, if the replacement or modification conserves energy or uses energy more
efficiently.
new text end

new text begin (e) "Energy conservation" means an action that results in a net reduction in electric
energy or natural gas consumption.
new text end

new text begin (f) "Energy conservation improvement" means a project that results in energy efficiency
or energy conservation. Energy conservation improvement may include waste heat that is
recovered and converted into electricity, but does not include electric utility infrastructure
projects approved by the commission under section 216B.1636. Energy conservation
improvement includes waste heat recovered and used as thermal energy.
new text end

new text begin (g) "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 level of service provided to the energy consumer.
new text end

new text begin (h) "Fuel" means energy consumed by a retail utility customer. Fuel includes electricity,
propane, natural gas, heating oil, gasoline, or diesel fuel.
new text end

new text begin (i) "Fuel neutral" means an approach that compares the use of various fuels for a given
end use, using a common metric.
new text end

new text begin (j) "Gross annual retail energy sales" means the total annual sale of electric energy, as
determined by the percentage of renewable and hydroelectric sources compared to
nonrenewable sources identified in the portfolio of the utility's electricity provider, 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. Gross annual retail energy sales does not include:
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 13, 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 13, with respect to natural gas sales made to the
commercial gas customer facility;
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 13, with respect to electric sales made to the large
facility; and
new text end

new text begin (3) increased electric or natural gas sales from efficient electrification or conversion
caused by a utility program.
new text end

new text begin (k) "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 at least 20,000 kilowatts, measured in the same way as the utility that serves the
customer facility measures electric demand for billing purposes, or (2) consume at least
500,000,000 cubic feet of natural gas annually. When 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 processing operations.
new text end

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

new text begin (m) "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 local and regional energy system conditions, or to reduce peak demand for electric energy
or natural gas. Load management that reduces overall energy use is also energy conservation.
new text end

new text begin (n) "Low-income programs" means energy conservation improvement programs that
directly serve the needs of low-income persons, including low-income renters and entities
that serve low-income customers."Low-income" is defined as 60 percent of state median
income, notwithstanding the criteria established in subdivision 5, paragraph (e). Multifamily
buildings of five units or more that are rented by low-income persons are eligible to be
served through low-income programs, which may include the upgrading of appliances,
heating and air conditioning equipment, and building envelope improvements.
new text end

new text begin (o) "Member" has the meaning given to it in section 308B.005, subdivision 15.
new text end

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

new text begin (q) "Source energy" means the total amount of fuel required for a given purpose,
considering energy losses in the production, transmission, and delivery of that energy.
new text end

new text begin (r) "Waste heat recovered and used as thermal energy" means capturing heat energy that
would be exhausted or dissipated to the environment from machinery, buildings, or industrial
processes, and productively using the recovered thermal energy where it is used to reduce
demand-side consumption of natural gas, electric energy, or both.
new text end

new text begin (s) "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

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin This section applies to:
new text end

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

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

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

new text begin Subd. 3. new text end

new text begin Savings goal. new text end

new text begin (a) Each individual consumer-owned utility subject to this section
has an annual energy savings goal equivalent to 1.5 percent of gross annual retail energy
sales.
new text end

new text begin (b) A consumer-owned utility's savings goal is satisfied when the consumer-owned
utility achieves a savings equivalent of at least three-quarters of one percent of the
consumer-owned utility's gross annual retail energy sales from energy conservation
improvements, and up to three-quarters of one percent from the following utility activities:
new text end

new text begin (1) energy savings from additional energy conservation improvements;
new text end

new text begin (2) electric utility infrastructure projects;
new text end

new text begin (3) net energy savings from efficient electrification and conversion improvements that
meet the criteria under subdivision 8; or
new text end

new text begin (4) CIP solar rebates that meet the criteria provided under subdivision 9.
new text end

new text begin (c) The energy savings goals specified must be calculated based on the most recent
three-year, weather-normalized average. When determining compliance with this subdivision,
a consumer-owned utility may elect to average annual energy savings over a period not to
exceed five years, as specified in the plan filed under subdivision 4. A consumer-owned
utility that uses annual plans may carry forward for up to five years any energy savings
exceeding 1.5 percent in a single year.
new text end

new text begin (d) Nothing in this subdivision limits a utility's ability to report and recognize savings
in excess of three-quarters of one percent of the utility's gross annual retail energy sales
generated under paragraph (b), clauses (1), (2), and (3), provided the utility has satisfied
the three-quarters of one percent savings required under paragraph (b).
new text end

new text begin (e) A consumer-owned utility subject to this section is not required to make energy
conservation improvements that are not cost-effective, even if the improvement is necessary
to attain the energy savings goal.
new text end

new text begin (f) A consumer-owned utility may request that the commissioner adjust its annual energy
savings goal based on its historical conservation investment experience, customer class
makeup, load growth, a conservation potential study, impact on utility revenue that threatens
necessary system investment, or other factors the commissioner and consumer-owned utility
determines warrants an adjustment. The commissioner must adjust the savings goal to a
level the commissioner determines is supported by the record.
new text end

new text begin Subd. 4. new text end

new text begin Consumer-owned utility; energy conservation and optimization plans. new text end

new text begin (a)
By June 1, 2021, each consumer-owned utility must file an energy conservation and
optimization plan with the commissioner. The plan must identify and outline the utility's
intended conservation improvement program, efficient electrification or conversion
improvement plans, load management plans, and other processes and programs to achieve
the energy savings goal. The plan may cover a period of time not to exceed five years. For
plans with a duration greater than one year, the consumer-owned utility's plan may include
years where the consumer-owned utility may not achieve the annual savings goal, provided
the total savings at the end of the plan meets, at a minimum, the otherwise applicable annual
savings goal for the utility. Beginning June 1, 2022, and each June 1 thereafter, each
consumer-owned utility must file an annual update identifying the status of, including total
expenditures and investments made to date, and any intended changes to its multiyear plan
filed under this subdivision. For consumer-owned utilities whose plans were completed the
prior June 1, a summary of the plan's result must be filed. A summary for a completed plan's
result must also be filed. The summary for a completed plan must include: (1) the total
savings achieved under the plan; (2) a breakdown of total expenditures and investments
made; and (3) a brief discussion regarding where the utility achieved the greatest savings
and, if areas exist where savings were less than anticipated under the plan, where the shortage
occurred and what the suspected reason for the shortage is. For consumer-owned utilities
that fall short of the total applicable savings goal, the final report or update on that plan
must indicate where the actual savings differed from anticipated savings, any known reasons
for the shortfall, and any identified changes that utility will make in future plans filed under
this subdivision to reach the identified savings goal. A consumer-owned utility must file a
new plan under this paragraph by June 1 of the year following the completion of the
consumer-owned utility's most recently completed plan.
new text end

new text begin (b) Energy savings from electric utility infrastructure projects or waste heat recovery
converted into electricity projects that may count as energy savings may be included in a
plan submitted under paragraph (a). A consumer-owned electric facility's infrastructure
project must result in increased energy efficiency greater than would have occurred during
normal maintenance activities.
new text end

new text begin (c) Energy savings from thermal-to-electric efficient electrification or conversion
improvement programs must be stated in kilowatt-hours, using a conversion rate of 3,412
British thermal units to one kilowatt-hour.
new text end

new text begin (d) A consumer-owned utility must not spend or invest in energy conservation
improvements that directly benefit large energy facility or a large electric customer facility
the commissioner has issued an exemption to under subdivision 13.
new text end

new text begin (e) A generation and transmission cooperative electric association, a municipal power
agency, or a comparable organization that provides energy services to consumer-owned
utilities may invest in energy conservation improvements on behalf of the consumer-owned
utilities it serves and may fulfill all aspects of the conservation, reporting, and energy-saving
goals for any of the consumer-owned utilities on an aggregate basis.
new text end

new text begin Subd. 5. new text end

new text begin Low-income programs. new text end

new text begin (a) Each consumer-owned utility subject to this section
must provide low-income energy conservation programs. When approving spending and
energy-savings goals for low-income energy conservation programs, the consumer-owned
utility must 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 municipal utility that furnishes gas service must spend at least 0.2 percent off its most
recent three-year average gross operating revenue from residential customers in Minnesota
on low-income programs. A consumer-owned utility that furnishes electric service must
spend at least 0.2 percent of its gross operating revenue from residential customers in
Minnesota on low-income programs. This requirement applies to each generation and
transmission cooperative association's members' aggregate gross operating revenue from
the sale of electricity to residential customers in Minnesota.
new text end

new text begin (b) To meet the requirements of paragraph (a), a consumer-owned utility may contribute
money to the energy and conservation account in section 216B.241, subdivision 2a. An
energy conservation improvement plan must state the amount, if any, of low-income energy
conservation improvement funds the utility plans to contribute to the energy and conservation
account. Contributions must be remitted to the commissioner by February 1 each year.
new text end

new text begin (c) The commissioner must establish low-income programs to use money contributed
to the energy and conservation account under paragraph (b). When establishing low-income
programs, the commissioner must consult political subdivisions, utilities, and nonprofit and
community organizations, including 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, located in the service territory of the utility or association
providing the money. The commissioner must 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 section 216B.241, 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.
new text end

new text begin (d) A consumer-owned utility may petition the commissioner to modify its required
spending under this subdivision if the utility and the commissioner were unable to expend
the amount required for three consecutive years.
new text end

new text begin (e) For purposes of this subdivision, "multifamily building" is defined as a residential
building with five or more dwelling units. For purposes of determining eligibility for
multifamily buildings in low-income programs, a utility or association may use one or more
of the following:
new text end

new text begin (1) information showing that a multifamily building's units are rented to households
meeting one or more of the following criteria:
new text end

new text begin (i) at or below 200 percent of federal poverty level;
new text end

new text begin (ii) at or below 60 percent of area median income;
new text end

new text begin (iii) occupancy within a building that is certified on the low-income renter classification
(LIRC) assessor report compiled annually by the Minnesota Housing Finance Agency; or
new text end

new text begin (iv) occupancy within a building which has a declaration against the property requiring
that a portion of the units will be rented to tenants with an annual income of less than or
equal to 60 percent of area median income;
new text end

new text begin (2) a property's participation in an affordable housing program, including Low-Income
Housing Tax Credits (LIHTC), United States Department of Housing and Urban Development
(HUD) assistance, United States Department of Agriculture (USDA) assistance, state housing
finance agency assistance, or local tax abatement for low-income properties; or
new text end

new text begin (3) documentation demonstrating that the property is on the waiting list for or currently
participating in the United States Department of Energy Weatherization Assistance Program.
new text end

new text begin Subd. 6. new text end

new text begin Recovery of expenses. new text end

new text begin The commission must allow a cooperative electric
association subject to rate regulation under section 216B.026 to recover expenses resulting
from (1) a plan under this subdivision, and (2) assessments and contributions to the energy
and conservation account under section 216B.241, subdivision 2a.
new text end

new text begin Subd. 7. new text end

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

new text begin An energy conservation
improvement to or installed in a building under this section, except systems owned by the
consumer-owned utility and designed to turn off, limit, or vary the delivery of energy, is
the exclusive property of the building owner, except to the extent that the improvement is
subject 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

new text begin Subd. 8. new text end

new text begin Criteria for efficient electrification or conversion improvements and load
management.
new text end

new text begin (a) Each consumer-owned utility subject to this section may form a technical
consumer-owned utility working group to define and establish proposed programs for
efficient electrification or conversion improvements and load management. A proposed
program may be included in an energy conservation and optimization plan filed by the
consumer-owned utility under subdivision 4. The technical consumer-owned utility working
group may approve a proposed program for efficient electrification or conversion
improvements if it finds the investment is cost-effective after considering the costs and
benefits of the proposed investment to rate payers, the utility, participants, and society.
new text end

new text begin (b) The commission may permit a consumer-owned utility subject to rate regulation to
file rate schedules providing for annual recovery of the costs of (1) efficient electrification
or conversion improvement programs, and (2) cost-effective load management approved
by the technical consumer-owned utility working group under subdivision 6, including
reasonable and prudent costs associated with promoting and implementing a program
approved under this subdivision.
new text end

new text begin (c) An efficient electrification or conversion improvement is deemed efficient if the
technical consumer-owned utility working group finds the improvement, relative to the fuel
that is being displaced:
new text end

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

new text begin (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 electrification
or conversion improvement installed by an electric utility, the reduction in emissions must
be measured based on the emissions profile of the utility or the utility's wholesale provider
over the life of the improvement. Where applicable, the emissions profile used must be the
most recent resource plan accepted by the commission under section 216B.2422;
new text end

new text begin (3) is cost-effective from a societal perspective, considering the costs associated with
both the fuel used in the past and the fuel used in the future; and
new text end

new text begin (4) is planned to be installed and operated in a manner that does not unduly increase the
utility's system peak demand or require significant new investment in utility infrastructure.
new text end

new text begin Subd. 9. new text end

new text begin Criteria for CIP solar rebates. new text end

new text begin (a) Each consumer-owned utility subject to
this section may claim energy savings credit equal to the amount of energy produced by
solar photovoltaic facilities for which the utility has issued a CIP solar rebate. For purposes
of this section, a "CIP solar rebate" is a payment from a utility subject to this section to a
customer for the purchase or installation of solar photovoltaic equipment used on the
customer's premise.
new text end

new text begin (b) The total solar photovoltaic generation system annual energy production kilowatt
hours alternating current is limited to 100 percent of the customer's on-site annual electric
energy consumption based on standard 15-minute intervals, measured during the previous
12 calendar months, or on a reasonable estimate of the average monthly maximum demand
or average annual consumption if the customer has either: (1) less than 12 calendar months
of actual electric usage; or (2) no demand metering available.
new text end

new text begin Subd. 10. new text end

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

new text begin (a) A consumer-owned utility must submit the
filings required by this section to the department using the department's electronic filing
system. The commissioner may exempt a consumer-owned utility from this requirement if
the utility is unable to submit filings using the department's electronic filing system. All
other interested parties must submit filings to the department using 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) The submission of a document to the department's electronic filing system constitutes
service on the department. If a department rule requires service of a notice, order, or other
document by the department, utility, 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 to persons on the service list that
have previously agreed in writing to accept electronic service at an electronic address
provided to the department for electronic service purposes.
new text end

new text begin Subd. 11. new text end

new text begin Assessment. new text end

new text begin (a) The commission or department may assess utilities subject
to this section to carry out the purposes of section 216B.241, subdivision 1d. An assessment
under this paragraph must be proportionate to the utility's respective gross operating revenue
from sales of gas or electric service in Minnesota during the previous calendar year.
new text end

new text begin (b) The commission or department may annually assess a utility subject to this section
to carry out the purposes of section 216B.241, subdivisions 1e and 1f, upon notice from the
utility of its desire to continue the assessment. An assessment under this paragraph must be
proportionate to the utility's respective gross revenue from sales of gas or electric service
in Minnesota during the previous calendar year. Assessments under this paragraph are not
subject to the cap on assessments provided by section 216B.62, or any other law.
new text end

new text begin Subd. 12. new text end

new text begin Waste heat recovery; thermal energy distribution. new text end

new text begin Subject to department
approval, demand-side natural gas or electric energy displaced by use of waste heat recovered
and used as thermal energy, including the recovered thermal energy from a cogeneration
or combined heat and power facility, is eligible to be counted toward a consumer-owned
utility's natural gas or electric savings goals.
new text end

new text begin Subd. 13. new text end

new text begin Large customer facilities. new text end

new text begin (a) The owner of a large customer facility may
petition the commissioner to exempt municipal electric utilities, municipal gas utilities, and
cooperative electric associations serving the large customer facility from the investment
and expenditure requirements of the municipal electric utility, municipal gas utility, or
cooperative electric association's plan under this section 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 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
becomes effective January 1 of the year following the filing, unless the commissioner finds
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 a report demonstrating the large
customer facility's ongoing commitment to energy conservation and efficiency improvement
after the exemption filing. The commissioner may request a report under this paragraph not
more than once every five years for up to ten years after the effective date of the exemption.
If the majority ownership of the large customer facility changes, 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 exempt
from the investment and expenditure requirements of this section under an order from the
commissioner 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.
An exempt large customer facility is prohibited from participating in a municipal electric,
municipal gas, or cooperative electric association utility's conservation improvement program
unless the owner of the facility files with the commissioner to withdraw its exemption.
new text end

new text begin (b) A commercial gas customer that is not a large customer facility and that purchases
or acquires natural gas from a municipal gas utility may petition the commissioner to exempt
the commercial gas customer from the municipal gas customer from the municipal gas
utility's plan under this section with respect to gas sales 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
municipal utility's gas distribution system by obtaining natural gas directly from a supplier
other than the municipal gas utility. The commissioner must grant the exemption if the
commissioner finds the petitioner has made the demonstration required by this paragraph.
new text end

new text begin (c) A municipal electric utility, municipal gas utility, cooperative electric association,
or the owner of a large customer facility may appeal the commissioner's decision under
paragraph (a) or (b) to the commissioner under subdivision 2. When reviewing a decision
of the commissioner under paragraph (a) or (b), the commission must rescind the decision
if it finds the decision is not in the public's interest.
new text end

new text begin (d) A municipal electric utility, municipal gas utility, or cooperative electric association
is prohibited from spending for or investing in energy conservation improvements that
directly benefit a large facility or a large electric customer facility that the commissioner
has issued an exemption for under this section.
new text end

Sec. 2.

Minnesota Statutes 2018, section 216B.241, subdivision 1c, is amended to read:


Subd. 1c.

new text beginPublic utility; new text endenergy-saving goals.

(a) The commissioner shall establish
energy-saving goals for energy conservation improvement expenditures and shall evaluate
an energy conservation improvement program on how well it meets the goals set.

(b) Each individual new text beginpublic new text endutility deleted text beginand associationdeleted text end shall have an annual energy-savings
goal equivalent to 1.5 percent of gross annual retail energy sales deleted text beginunless modified by the
commissioner under paragraph (d)
deleted text end. The savings goals must be calculated based on the most
recent three-year weather-normalized average. Anew text begin publicnew text end utility deleted text beginor associationdeleted text end may elect to
carry forward energy savings in excess of 1.5 percent for a year to the succeeding three
calendar years, except that savings from electric utility infrastructure projects allowed under
paragraph deleted text begin(d)deleted text endnew text begin (c)new text end may be carried forward for five years. A particular energy savings can be
used only for one year's goal.

deleted text begin (c) The commissioner must adopt a filing schedule that is designed to have all utilities
and associations operating under an energy-savings plan by calendar year 2010.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end In its energy conservation improvement plan filing, a new text beginpublic new text endutility deleted text beginor associationdeleted text end
may request the commissioner to adjust its annual energy-savings percentage goal based
on its historical conservation investment experience, customer class makeup, load growth,
a conservation potential study, or other factors the commissioner determines warrants an
adjustment. The commissioner may not approve a plan of a public utility that provides for
an annual energy-savings goal of less than one percent of gross annual retail energy sales
from energy conservation improvements.

A new text beginpublic new text endutility deleted text beginor associationdeleted text end may include in its energy conservation plan energy savings
from electric utility infrastructure projects approved by the commission under section
216B.1636 or waste heat recovery converted into electricity projects that may count as
energy savings in addition to a minimum energy-savings goal of at least one percent for
energy conservation improvements. deleted text beginEnergy savings from electric utility infrastructure
projects, as defined in section 216B.1636, may be included in the energy conservation plan
of a municipal utility or cooperative electric association.
deleted text end Electric utility infrastructure projects
must result in increased energy efficiency greater than that which would have occurred
through normal maintenance activity.

deleted text begin (e) Andeleted text endnew text begin (d) A public utility'snew text end energy-savings goal is not satisfied by attaining the revenue
expenditure requirements of subdivisions 1a and 1b, but can only be satisfied by meeting
the energy-savings goal established in this subdivision.

deleted text begin (f) An association ordeleted text endnew text begin (e) A publicnew text end utility is not required to make energy conservation
investments to attain the energy-savings goals of this subdivision that are not cost-effective
even if the investment is necessary to attain the energy-savings goals. For the purpose of
this paragraph, in determining cost-effectiveness, the commissioner shall consider the costs
and benefits to ratepayers, the utility, participants, and society. In addition, the commissioner
shall consider the rate at which deleted text beginan association ordeleted text end municipal utility is increasing its energy
savings and its expenditures on energy conservation.

deleted text begin (g)deleted text end new text begin(f) new text endOn an annual basis, the commissioner shall produce and make publicly available
a report on the annual energy savings and estimated carbon dioxide reductions 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.

deleted text begin (h) By January 15, 2010, the commissioner shall report to the legislature whether the
spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.
deleted text end

deleted text begin (i) This subdivision does not apply to:
deleted text end

deleted text begin (1) a cooperative electric association with fewer than 5,000 members;
deleted text end

deleted text begin (2) a municipal utility with fewer than 1,000 retail electric customers; or
deleted text end

deleted text begin (3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales
to retail natural gas customers.
deleted text end

Sec. 3.

Minnesota Statutes 2018, section 216B.241, subdivision 1d, is amended to read:


Subd. 1d.

Technical assistance.

(a) The commissioner shall evaluate energy conservation
improvement programs new text beginunder this section and section 216B.2402 new text endon the basis of
cost-effectiveness and the reliability of the technologies employed. The commissioner shall,
by order, establish, maintain, and update energy-savings assumptions that must be used
when filing energy conservation improvement programs. The commissioner shall establish
an inventory of the most effective energy conservation programs, techniques, and
technologies, and encourage all Minnesota utilities to implement them, where appropriate,
in their service territories. The commissioner shall describe these programs in sufficient
detail to provide a utility reasonable guidance concerning implementation. The commissioner
shall prioritize the opportunities in order of potential energy savings and in order of
cost-effectiveness. The commissioner may contract with a third party to carry out any of
the commissioner's duties under this subdivision, and to obtain technical assistance to
evaluate the effectiveness of any conservation improvement program. The commissioner
may assess up to $850,000 annually for the purposes of this subdivision. The assessments
must be deposited in the state treasury and credited to the energy and conservation account
created under subdivision 2a. An assessment made under this subdivision is not subject to
the cap on assessments provided by section 216B.62, or any other law.

(b) Of the assessment authorized under paragraph (a), the commissioner may expend
up to $400,000 annually for the purpose of developing, operating, maintaining, and providing
technical support for a uniform electronic data reporting and tracking system available to
all utilities subject to this section, in order to enable accurate measurement of the cost and
energy savings of the energy conservation improvements required by this section. This
paragraph expires June 30, 2018.

Sec. 4.

Minnesota Statutes 2018, section 216B.241, subdivision 2, is amended to read:


Subd. 2.

Programs.

(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 three-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 three 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 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.

(b) The commissioner may require a utility subject to subdivision 1c to make an energy
conservation improvement investment or expenditure whenever the commissioner finds
that the improvement will result in energy savings at a total cost to the utility less than the
cost to the utility to produce or purchase an equivalent amount of new supply of energy.
The commissioner shall nevertheless ensure that every public utility operate one or more
programs under periodic review by the department.

(c) Each public utility subject to subdivision 1a 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 1 and that are funded
directly by the public utility.

(d) A public utility may not spend for or invest in energy conservation improvements
that directly benefit a large energy facility or a large electric customer facility for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The
commissioner shall consider and may require a new text beginpublic new text endutility to undertake a program
suggested by an outside source, including a political subdivision, a nonprofit corporation,
or community organization.

(e) A utility, a political subdivision, or a 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.

(f) The commissioner may order a public utility to include, with the filing of the utility's
annual status report, 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.

(g) A gas utility may not spend for or invest in energy conservation improvements that
directly benefit a large customer facility or commercial gas customer facility for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or
(e). The commissioner shall consider and may require a utility to undertake a program
suggested by an outside source, including a political subdivision, a nonprofit corporation,
or a community organization.

Sec. 5.

Minnesota Statutes 2018, section 216B.241, subdivision 2b, is amended to read:


Subd. 2b.

Recovery of expenses.

The commission shall allow a new text beginpublic new text endutility to recover
expenses resulting from a conservation improvement program required by the department
and contributions and assessments 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 new text beginpublic new text endutility 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 1a, 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 1a, paragraph (b), for that year for energy conservation
improvements under this section.

Sec. 6.

Minnesota Statutes 2018, section 216B.241, subdivision 3, is amended to read:


Subd. 3.

Ownership of energy conservation improvement.

deleted text beginAndeleted text end new text beginA preweatherization
measure or
new text endenergy 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 deleted text beginandeleted text end new text begina preweatherization measure or new text endenergy conservation improvement
except for negligence by the utility in purchase, installation, or modification of the product.

Sec. 7.

Minnesota Statutes 2018, section 216B.241, subdivision 7, is amended to read:


Subd. 7.

Low-income programs.

(a) The commissioner shall ensure that each new text beginpublic
new text end utility deleted text beginand associationdeleted text end subject to subdivision 1c 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 deleted text beginmunicipal utility that furnishes gas service must spend at least 0.2 percent, and adeleted text end public
utility furnishing gas service must spend at least deleted text begin0.4deleted text end new text begin0.8new text end percent, of its most recent three-year
average gross operating revenue from residential customers in the state on low-income
programs. A utility deleted text beginor associationdeleted text end that furnishes electric service must spend at least deleted text begin0.1deleted text end new text begin0.4new text end
percent of its gross operating revenue from residential customers in the state on low-income
programs. deleted text beginFor 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,
deleted text enddeleted text begin Adeleted text enddeleted text begin utility deleted text enddeleted text beginor associationdeleted text enddeleted text begin
that furnishes electric service must spend 0.2 percent of its gross operating
deleted text enddeleted text beginrevenue from
residential customers in the state on low-income programs.
deleted text end

(b) To meet the requirements of paragraph (a), a new text beginpublic new text endutility deleted text beginor associationdeleted text end 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 new text beginpublic new text endutility deleted text beginor associationdeleted text end 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 new text beginpublic new text endutility deleted text beginor associationdeleted text end
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 new text beginpublic new text endutility deleted text beginor associationdeleted text end 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) For purposes of this subdivision, "multifamily building" is defined as a residential
building with five or more dwelling units. For purposes of determining eligibility for
multifamily buildings in low-income programs, a utility or association may use one or more
of the following:
new text end

new text begin (1) information showing that a multifamily building's units are rented to households
meeting one of the following criteria:
new text end

new text begin (i) are at or below 200 percent of federal poverty level;
new text end

new text begin (ii) are at or below 60 percent of area median income;
new text end

new text begin (iii) have occupancy within a building that is certified on the low-income renter
classification (LIRC) assessor report compiled annually by Minnesota Housing Finance
Agency; or
new text end

new text begin (iv) have occupancy within a building which has a declaration against the property
requiring that a portion of the units will be rented to tenants with an annual income of less
than or equal to 60 percent of area median income;
new text end

new text begin (2) a property's participation in an affordable housing program, including Low-Income
Housing Tax Credits (LIHTC), United States Department of Housing and Urban Development
(HUD) assistance, United States Department of Agriculture (USDA) assistance, state housing
finance agency assistance, or local tax abatement for low-income properties; or
new text end

new text begin (3) documentation demonstrating that the property is on the waiting list for or currently
participating in the United States Department of Energy Weatherization Assistance Program.
new text end

new text begin (f) Up to 15 percent of a public utility's spending on low-income programs may be used
for preweatherization measures. For purposes of this section, "preweatherization measures"
are improvements necessary to allow energy conservation improvements to be installed in
a home:
new text end

new text begin (1) the commissioner shall, by order, establish a list of qualifying preweatherization
measures eligible for inclusion in low-income programs no later than March 15, 2020; and
new text end

new text begin (2) a public utility may elect to contribute money to the Healthy AIR program. Money
contributed to the fund will count toward the minimum low-income spending requirement
in paragraph (a) and toward the cap on preweatherization measures.
new text end

deleted text begin (e)deleted text endnew text begin (g)new text end 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.

Sec. 8. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 216B.241, subdivision 1b, new text end new text begin is repealed.
new text end

ARTICLE 4

RENEWABLE DEVELOPMENT

Section 1.

Minnesota Statutes 2018, section 116C.779, subdivision 1, is amended to read:


Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs new text begin(e) and new text end(f) deleted text beginand (g)deleted text end, and sections 116C.7792 and 216C.41, are
not subject to transfer under this paragraph.

(c) deleted text beginExcept as provided in subdivision 1a,deleted text end Beginning January 15, deleted text begin2018deleted text endnew text begin 2020new text end, and
continuing each January 15 thereafter, the public utility that owns the Prairie Island new text beginand
Monticello
new text endnuclear generating deleted text beginplantdeleted text endnew text begin plantsnew text end must transfer to the renewable development
account deleted text begin$500,000 each year for each dry cask containing spent fuel that is located at the
Prairie Island power plant for
deleted text endnew text begin the following amountsnew text end each year deleted text beginthedeleted text endnew text begin eithernew text end plant is in operationdeleted text begin,
and $7,500,000 each year the plant is not in operation
deleted text endnew text begin: (1) $33,000,000 in 2020; (2)
$31,000,000 in 2021; and (3) $20,000,000 in 2022 and each year thereafter.
new text end If ordered by
the commission pursuant to paragraph deleted text begin(i).deleted text end new text begin(h), the public utility must transfer $7,500,000
each year the Prairie Island plant is not in operation and $5,250,000 each year the Monticello
plant is not in operation.
new text endThe fund transfer must be made if nuclear waste is stored in a dry
cask at the independent spent-fuel storage facility at Prairie Island new text beginor Monticello new text endfor any
part of a year.

deleted text begin (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.
deleted text end

deleted text begin (e)deleted text endnew text begin (d)new text end Each year, the public utility shall withhold from the funds transferred to the
renewable development account under deleted text beginparagraphsdeleted text endnew text begin paragraphnew text end (c) deleted text beginand (d)deleted text end the amount necessary
to pay its obligations new text beginfor that calendar year new text endunder paragraphs new text begin(e), new text end(f) deleted text beginand (g)deleted text end,new text begin (j), and (n),new text end
and sections 116C.7792 and 216C.41deleted text begin, for that calendar yeardeleted text end.

deleted text begin (f)deleted text endnew text begin (e)new text end If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and deleted text begin(e)deleted text endnew text begin (d)new text end.

deleted text begin (g)deleted text end new text begin(f) new text endIf the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and deleted text begin(e)deleted text endnew text begin (d)new text end.

deleted text begin (h)deleted text end new text begin(g) new text endThe collective amount paid under the grant contracts awarded under paragraphs
new text begin (e) and new text end(f) deleted text beginand (g)deleted text end is limited to the amount deposited into the renewable development account,
and its predecessor, the renewable development account, established under this section, that
was not required to be deposited into the account under Laws 1994, chapter 641, article 1,
section 10.

deleted text begin (i)deleted text endnew text begin (h)new text end After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
discontinued facility, the commission shall require the public utility to pay $7,500,000 for
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
at the facility to a permanent or interim storage site out of the state. This determination shall
be made at least every two years.

new text begin (i) The public utility must annually file with the commission a petition to recover through
a rider mechanism all funds it is required to transfer or withhold under paragraphs (c) to (f)
for the next year. The commission must approve a reasonable cost recovery schedule for
all funds under this paragraph.
new text end

new text begin (j) On or before January 15 of each year, the public utility must file a petition with the
commission identifying the amounts withheld by the public utility the prior year under
paragraph (d) and the amount actually paid the prior year for obligations identified in
paragraph (d). If the amount actually paid is less than the amount withheld, the public utility
must deduct the surplus from the amount withheld for the current year under paragraph (d).
If the amount actually paid is more than the amount withheld, the public utility must add
the deficiency amount to the amount withheld for the current year under paragraph (d). Any
surplus remaining in the account after all programs identified in paragraph (d) are terminated
must be returned to the public utility's customers.
new text end

deleted text begin (j)deleted text endnew text begin (k)new text end Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

deleted text begin (k)deleted text endnew text begin (l)new text end For the purposes of paragraph deleted text begin(j)deleted text endnew text begin (k)new text end, the following terms have the meanings
given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

deleted text begin (l)deleted text endnew text begin (m)new text end A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. new text beginMembers of the advisory group, other
than members appointed by the tribal council, must be chosen by the public utility.
new text endThe
advisory group must design a request for proposal and evaluate projects submitted in response
to a request for proposals. The advisory group must utilize an independent third-party expert
to evaluate proposals submitted in response to a request for proposal, including all proposals
made by the public utility. A request for proposal for research and development under
paragraph deleted text begin(j)deleted text endnew text begin (k)new text end, clause (1), may be limited to or include a request to higher education
institutions located in Minnesota for multiple projects authorized under paragraph deleted text begin(j)deleted text endnew text begin (k)new text end,
clause (1). The request for multiple projects may include a provision that exempts the
projects from the third-party expert review and instead provides for project evaluation and
selection by a merit peer review grant system. In the process of determining request for
proposal scope and subject and in evaluating responses to request for proposals, the advisory
group must strongly consider, where reasonable, potential benefit to Minnesota citizens and
businesses and the utility's ratepayers.

new text begin (n) The cost to acquire the services of the independent third-party expert described in
paragraph (m), and any other reasonable costs incurred to administer the advisory group
and its actions required by this section, must be paid from funds withheld by the public
utility under paragraph (d). The total amount withheld under this paragraph must not exceed
$125,000 each year.
new text end

deleted text begin (m)deleted text end new text begin(o) new text endThe advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the deleted text beginlegislaturedeleted text endnew text begin commissionnew text end. The commission may approve proposed
expenditures, may disapprove proposed expenditures that it finds not to be in compliance
with this subdivision or otherwise not in the public interest, and may, if agreed to by the
public utility, modify proposed expenditures. The commission shall, by order, submit its
funding recommendations to the legislature as provided under paragraph deleted text begin(n)deleted text endnew text begin (p)new text end.

deleted text begin (n)deleted text endnew text begin (p)new text end The commission shall present its recommended appropriations from the account
to the senate and house of representatives committees with jurisdiction over energy policy
and finance annually by February 15. Expenditures from the account must be appropriated
by law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

deleted text begin (o)deleted text endnew text begin (q)new text end A request for proposal for renewable energy generation projects must, when
feasible and reasonable, give preference to projects that are most cost-effective for a particular
energy source.

deleted text begin (p)deleted text endnew text begin (r)new text end The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account new text beginunder paragraph (k) new text endfor the prior year and all previous years.
The report must, to the extent possible and reasonable, itemize the actual and projected
financial benefit to the public utility's ratepayers of each project.

new text begin (s) By June 1, 2019, and each June 1 thereafter, the public utility that owns the Prairie
Island nuclear electric generating plant must submit to the commissioner of management
and budget an estimate of the amount the public utility will deposit into the account January
15 the next year, based on the provisions of paragraphs (c) to (h) and any appropriations
made from the fund during the most recent legislative session.
new text end

deleted text begin (q)deleted text endnew text begin (t)new text end By deleted text beginFebruary 1 , 2018deleted text endnew text begin June 30, 2019new text end, and each deleted text beginFebruary 1deleted text end new text beginJune 30 new text endthereafter, the
commissioner of management and budget deleted text beginshalldeleted text endnew text begin must estimate the balance in the account as
of the following January 31, taking into account the balance in the account as of June 30
and the information provided under paragraph (r). By July 15, 2019, and each July 15
thereafter, the commissioner of management and budget must
new text end submit a written report
regarding the availability of funds in and obligations of the account to the chairs and ranking
minority members of the senate and house committees with jurisdiction over energy policy
and finance, the public utility, and the advisory group.new text begin If more than $15,000,000 is estimated
to be available in the account as of January 31, the advisory group must, by January 31 the
next year, issue a request for proposals to initiate a grant cycle for the purposes of paragraph
(k).
new text end

deleted text begin (r)deleted text endnew text begin (u)new text end A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary for
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers.

deleted text begin (s)deleted text endnew text begin (v)new text end Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.

deleted text begin (t)deleted text endnew text begin (w)new text end All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

deleted text begin (u)deleted text endnew text begin (x)new text end Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

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 [116J.55] COMMUNITY ENERGY TRANSITION GRANTS.
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 in this
subdivision have the meanings given.
new text end

new text begin (b) "Advisory council" means the Community Energy Transition Grant Advisory Council
created in this section.
new text end

new text begin (c) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (d) "Eligible community" means a county, municipality, or tribal government located
within a county that hosts an investor-owned electric generating plant powered by coal,
nuclear energy, or natural gas.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a community energy transition
grant program to award grants to promote economic development in eligible communities.
new text end

new text begin Subd. 3. new text end

new text begin Funding. new text end

new text begin (a) A community energy transition account is created in the special
revenue fund in the state treasury. Money in the account is appropriated to the commissioner
for grants as provided in this section and must be expended only as provided in this section.
new text end

new text begin (b) On July 1, 2020, $500,000 and then on July 1, 2021, and on each July 1 thereafter,
$1,000,000 is transferred from the renewable development account under section 116C.779
to the commissioner for deposit in the community energy transition account. This transfer
must be made before any other payments or transfers required under section 116C.779.
new text end

new text begin (c) Grants to eligible communities in which an investor-owned electric generating plant
is located but has not been scheduled for retirement or decommissioning may not exceed
$1,000,000. Grants to eligible communities in which an investor-owned electric generating
plant is located and is scheduled for retirement or decommissioning may not exceed
$5,000,000.
new text end

new text begin (d) Unless amounts are otherwise appropriated for administrative costs, the commissioner
of employment and economic development may retain up to five percent of the amount
appropriated for grants under this section for administrative and personnel costs.
new text end

new text begin Subd. 4. new text end

new text begin Cancellation of grant; return of grant money. new text end

new text begin If after five years, the
commissioner determines that a project has not proceeded in a timely manner and is unlikely
to be completed, the commissioner must cancel the grant and require the grantee to return
all grant money awarded for that project. Grant money returned to the commissioner is
appropriated to the commissioner to make additional grants under this section.
new text end

new text begin Subd. 5. new text end

new text begin Grants to eligible communities. new text end

new text begin (a) The commissioner must award grants to
eligible communities through a competitive grant process. Eligible communities must be
located in the service territory of the public utility subject to section 116C.779.
new text end

new text begin (b) To receive grant funds, an eligible community must submit a written application to
the commissioner, using a form developed by the commissioner.
new text end

new text begin (c) The commissioner must consider the recommendations of the Community Energy
Transition Grant Advisory Council before selecting grant recipients.
new text end

new text begin (d) Grants must be used to plan for or address the economic and social impact on the
community of plant retirement or transition. Specific uses may include but are not limited
to:
new text end

new text begin (1) research;
new text end

new text begin (2) planning;
new text end

new text begin (3) studies;
new text end

new text begin (4) capital improvements; and
new text end

new text begin (5) incentives for businesses to open, relocate, or expand.
new text end

new text begin Subd. 6. new text end

new text begin Priorities. new text end

new text begin (a) In evaluating projects, the advisory council shall give priority
to eligible projects with one or more of the following characteristics:
new text end

new text begin (1) the potential of the eligible community to attract a viable business;
new text end

new text begin (2) the potential increase in the property tax base of the eligible community, considered
relative to the fiscal impact of the retirement of the electric generating plant located in the
eligible community;
new text end

new text begin (3) the extent to which the grant will assist the eligible community in addressing the
fiscal and social impacts of plant retirement; and
new text end

new text begin (4) the extent to which the grant will help the state transition away from fossil fuels.
new text end

new text begin (b) The factors listed in paragraph (a) are not ranked in order of priority. The
commissioner may weigh each factor, depending upon the facts and circumstances, as
appropriate. The commissioner may consider other factors that support the goals of this
program.
new text end

new text begin Subd. 7. new text end

new text begin Advisory council. new text end

new text begin (a) By September 1, 2019, the commissioner shall appoint
representatives to a Community Energy Transition Grant Advisory Council composed of
the following members:
new text end

new text begin (1) the commissioner of employment and economic development, or a designee;
new text end

new text begin (2) the commissioner of transportation, or a designee;
new text end

new text begin (3) the commissioner of the Minnesota Pollution Control Agency, or a designee;
new text end

new text begin (4) the commissioner of natural resources, or a designee;
new text end

new text begin (5) the commissioner of commerce, or a designee;
new text end

new text begin (6) one representative of the Prairie Island Indian community;
new text end

new text begin (7) two representatives of workers at investor-owned electric generating plants powered
by coal, nuclear energy, or natural gas; and
new text end

new text begin (8) four representatives of eligible communities, of which, two must be counties, two
must be municipalities, at least one must host a coal plant, at least one must host a nuclear
plant, and at least one must host a natural gas plant.
new text end

new text begin After the initial appointments, members of the advisory council shall be appointed no later
than January 15 of every odd-numbered year and shall serve until January 15 of the next
odd-numbered year. Members may be removed and vacancies filled as provided in section
15.059, subdivision 4. Appointed members are eligible for reappointment.
new text end

new text begin (b) The advisory council shall elect a chair and other officers at its first meeting.
new text end

new text begin (c) The advisory council shall review applications for community energy transition
grants and make recommendations to the commissioner of employment and economic
development.
new text end

new text begin (d) The commissioner of employment and economic development shall select projects
from the recommendations made by the advisory council under this subdivision with
consideration given to the priorities listed in subdivision 6.
new text end

new text begin (e) A member of the advisory council must not participate in the consideration of an
application from the community that member represents.
new text end

new text begin (f) Members of the advisory council serve without compensation or payment of expenses.
new text end

new text begin (g) The commissioner of employment and economic development or the commissioner's
designee shall provide meeting space and administrative services for the advisory council.
All costs necessary to support the advisory council's operations must be absorbed using
existing appropriations available to the commissioner.
new text end

new text begin (h) The advisory council is subject to chapter 13D, but may close a meeting to discuss
sensitive private business information included in grant applications. Data related to an
application for a grant submitted to the advisory council is governed by section 13.599.
new text end

new text begin (i) The commissioner shall convene the first meeting of the advisory council no later
than September 1, 2019.
new text end

new text begin Subd. 8. new text end

new text begin Reports to the legislature. new text end

new text begin By January 15, 2021, and each January 15 thereafter,
the commissioner must submit a report to the chairs and ranking minority members of the
committees of the house of representatives and the senate having jurisdiction over economic
development that details the use of grant funds. When possible, this report must include
data on the economic impact achieved by each grant.
new text end

Sec. 3.

Minnesota Statutes 2018, section 216B.16, is amended by adding a subdivision to
read:


new text begin Subd. 7e. new text end

new text begin Energy storage system pilot projects. new text end

new text begin (a) A public utility may petition the
commission under this section to recover costs associated with the implementation of an
energy storage system pilot project. As part of the petition, the public utility must submit a
report to the commission containing, at a minimum, the following information regarding
the proposed energy storage system pilot project:
new text end

new text begin (1) the storage technology utilized;
new text end

new text begin (2) the energy storage capacity and the duration of output at that capacity;
new text end

new text begin (3) the proposed location;
new text end

new text begin (4) the purchase and installation costs;
new text end

new text begin (5) how the project will interact with existing distributed generation resources on the
utility's grid; and
new text end

new text begin (6) the goals the project proposes to achieve, which may include controlling frequency
or voltage, mitigating transmission congestion, providing emergency power supplies during
outages, reducing curtailment of existing renewable energy generators, and reducing peak
power costs.
new text end

new text begin (b) A utility may petition the commission to approve a rate schedule that provides for
the automatic adjustment of charges to recover prudently incurred investments, expenses,
or costs associated with energy storage system pilot projects approved by the commission
under this subdivision. A petition filed under this subdivision must include the elements
listed in section 216B.1645, subdivision 2a, paragraph (b), clauses (1) to (4), and must
describe the benefits of the pilot project.
new text end

new text begin (c) The commission may approve, or approve as modified, a rate schedule filed under
this subdivision. The rate schedule filed by the public utility may include the elements listed
in section 216B.1645, subdivision 2a, paragraph (a), clauses (1) to (5).
new text end

new text begin (d) For each pilot project that the commission has found to be in the public interest, the
commission must make its determination on the specific amounts that are eligible for
recovery under the approved rate schedule within 90 days of final approval of the specific
pilot program or within 90 days of the public utility filing for approval of cost recovery for
the specific pilot program, whichever is later.
new text end

new text begin (e) Nothing in this subdivision prohibits or deters the deployment of energy storage
systems.
new text end

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

new text begin (1) "energy storage system" has the meaning given in section 216B.2422, subdivision
1; and
new text end

new text begin (2) "pilot project" means a project that is owned, operated, and controlled by a public
utility to optimize safe and reliable system operations and is deployed at a limited number
of locations in order to assess the technical and economic effectiveness of its operations.
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. 4.

Minnesota Statutes 2018, section 216B.2422, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more
of electric power and serving, either directly or indirectly, the needs of 10,000 retail
customers in Minnesota. Utility does not include federal power agencies.

(c) "Renewable energy" means electricity generated through use of any of the following
resources:

(1) wind;

(2) solar;

(3) geothermal;

(4) hydro;

(5) trees or other vegetation;

(6) landfill gas; or

(7) predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge.

(d) "Resource plan" means a set of resource options that a utility could use to meet the
service needs of its customers over a forecast period, including an explanation of the supply
and demand circumstances under which, and the extent to which, each resource option
would be used to meet those service needs. These resource options include using,
refurbishing, and constructing utility plant and equipment, buying power generated by other
entities, controlling customer loads, and implementing customer energy conservation.

(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating
resource of 30 megawatts or greater.

new text begin (f) "Energy storage system" means a commercially available technology that:
new text end

new text begin (1) uses mechanical, chemical, or thermal processes to:
new text end

new text begin (i) store energy, including energy generated from renewable resources and energy that
would otherwise be wasted, and deliver the stored energy for use at a later time; or
new text end

new text begin (ii) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time;
new text end

new text begin (2) is composed of stationary equipment;
new text end

new text begin (3) if being used for electric grid benefits, is operationally visible and capable of being
controlled by the distribution or transmission entity managing it, to enable and optimize the
safe and reliable operation of the electric system; and
new text end

new text begin (4) achieves any of the following:
new text end

new text begin (i) reduces peak or electrical demand;
new text end

new text begin (ii) defers the need or substitutes for an investment in electric generation, transmission,
or distribution assets;
new text end

new text begin (iii) improves the reliable operation of the electrical transmission or distribution systems,
while ensuring transmission or distribution needs are not created; or
new text end

new text begin (iv) lowers customer costs by storing energy when the cost of generating or purchasing
it is low and delivering it to customers when those costs are high.
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 2018, section 216B.2422, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Energy storage systems assessment. new text end

new text begin (a) Each public utility required to file a
resource plan under subdivision 2 must include in the filing an assessment of energy storage
systems that analyzes how the deployment of energy storage systems contributes to:
new text end

new text begin (1) meeting identified generation and capacity needs; and
new text end

new text begin (2) evaluating ancillary services.
new text end

new text begin (b) The assessment must employ appropriate modeling methods to enable the analysis
required in paragraph (a).
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. 6.

new text begin [216C.375] SOLAR FOR SCHOOLS PROGRAM.
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 and section 216C.376,
the following terms have the meanings given them.
new text end

new text begin (b) "Developer" means an entity that installs a solar energy system on a school building
that has been awarded a grant under this section.
new text end

new text begin (c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.
new text end

new text begin (d)"School" means a school that operates as part of an independent or special school
district.
new text end

new text begin (e) "School district" means an independent or special school district.
new text end

new text begin (f) "Solar energy system" means photovoltaic or solar thermal devices.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar for schools program is established in the
Department of Commerce. The purpose of the program is to provide grants to stimulate the
installation of solar energy systems on or adjacent to school buildings by reducing their
cost, and to enable schools to use the solar energy system as a teaching tool that can be
integrated into the school's curriculum.
new text end

new text begin Subd. 3. new text end

new text begin Establishment of account. new text end

new text begin (a) A solar for schools program account is
established in the special revenue fund. Money received from the general fund must be
transferred to the commissioner of commerce and credited to the account. Money deposited
in the account remains in the account until expended, and does not cancel to the general
fund.
new text end

new text begin (b) When a grant is awarded under this section, the commissioner shall reserve the grant
amount in the account.
new text end

new text begin Subd. 4. new text end

new text begin Expenditures. new text end

new text begin (a) Money in the account may be used only:
new text end

new text begin (1) for grant awards made under this section; and
new text end

new text begin (2) to pay the reasonable costs incurred by the department to administer this section.
new text end

new text begin (b) Grant awards made with funds in the account are to be used only for grants for solar
energy systems installed on or adjacent to school buildings receiving retail electric service
from a utility that is not subject to section 116C.779, subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Eligible system. new text end

new text begin (a) A grant may be awarded to a school under this section
only if the solar energy system that is the subject of the grant:
new text end

new text begin (1) is installed on or adjacent to the school building that will consume the electricity
generated by the solar energy system, on property within the service territory of the utility
currently providing electric service to the school building; and
new text end

new text begin (2) has a capacity that does not exceed the lesser of 40 kilowatts or 120 percent of the
estimated annual electricity consumption of the school building at which the solar energy
system is proposed to be installed.
new text end

new text begin (b) A school district that receives a rebate or other financial incentive under section
216B.241 for a solar energy system and that demonstrates considerable need for financial
assistance, as determined by the commissioner, is eligible for a grant under this section for
the same solar energy system.
new text end

new text begin Subd. 6. new text end

new text begin Application process. new text end

new text begin (a) The commissioner shall issue a request for proposals
to utilities, schools, and developers who may wish to apply for a grant under this section
on behalf of a school.
new text end

new text begin (b) A utility or developer must submit an application to the commissioner on behalf of
a school on a form prescribed by the commissioner. The form must include, at a minimum,
the following information:
new text end

new text begin (1) the capacity of the proposed solar energy system and the amount of electricity that
is expected to be generated;
new text end

new text begin (2) the current energy demand of the school building on which the solar energy generating
system is to be installed, and information regarding any distributed energy resource, including
subscription to a community solar garden, that currently provides electricity to the school
building;
new text end

new text begin (3) a description of any solar thermal devices proposed as part of the solar energy system;
new text end

new text begin (4) the total cost of purchasing and installing the solar energy system, and its life-cycle
cost, including removal and disposal of system at the end of its life;
new text end

new text begin (5) a copy of the proposed contract agreement between the school and the public utility
or developer that includes provisions addressing responsibility for maintenance of the solar
energy system;
new text end

new text begin (6) the school's plan to make the solar energy system serve as a visible learning tool for
students, teachers, and visitors to the school, including how the solar energy system may
be integrated into the school's curriculum;
new text end

new text begin (7) information that demonstrates the level of need of the school district for financial
assistance available under this section;
new text end

new text begin (8) information that demonstrates the readiness of the school to implement the project,
including, but not limited to, the availability of the site on which the solar energy system
is to be installed, and the level of the school's engagement with the utility providing electric
service to the school building on which the solar energy system is to be installed on issues
relevant to the implementation of the project, including metering and other issues;
new text end

new text begin (9) with respect to the installation and operation of the solar energy system, the
willingness and ability of the developer or the public utility to:
new text end

new text begin (i) pay employees and contractors a prevailing wage rate, as defined in section 177.42,
subdivision 6; and
new text end

new text begin (ii) adhere to the provisions of section 177.43;
new text end

new text begin (10) how the developer or public utility plans to reduce the school's initial capital expense
for the purchase and installation of the solar energy system, and to provide financial benefits
to the school from the utilization of federal and state tax credits, utility incentives, and other
financial incentives; and
new text end

new text begin (11) any other information deemed relevant by the commissioner.
new text end

new text begin (c) The commissioner shall administer an open application process under this section at
least twice annually.
new text end

new text begin (d) The commissioner shall develop administrative procedures governing the application
and grant award process.
new text end

new text begin Subd. 7. new text end

new text begin Energy conservation review. new text end

new text begin At the commissioner's request, a school awarded
a grant under this section shall provide the commissioner information regarding energy
conservation measures implemented at the school building at which the solar energy system
is to be installed. The commissioner may make recommendations to the school regarding
cost-effective conservation measures it can implement and may provide technical assistance
and direct the school to available financial assistance programs.
new text end

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

new text begin The commissioner shall provide technical assistance to
schools to develop and execute projects under this section.
new text end

new text begin Subd. 9. new text end

new text begin Grant payments. new text end

new text begin The commissioner shall award a grant from the account
established under subdivision 3 to a school for the necessary costs associated with the
purchase and installation of a solar energy system. The amount of the grant shall be based
on the commissioner's assessment of the school's need for financial assistance.
new text end

new text begin Subd. 10. new text end

new text begin Limitations. new text end

new text begin (a) No more than 50 percent of the grant payments awarded to
schools under this section may be awarded to schools where the proportion of students
eligible for free and reduced-price lunch under the National School Lunch Program is less
than 50 percent.
new text end

new text begin (b) No more than ten percent of the total amount of grants awarded under this section
may be awarded to schools that are part of the same school district.
new text end

new text begin Subd. 11. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2023.
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. 7.

new text begin [216C.376] SOLAR FOR SCHOOLS PROGRAM FOR CERTAIN UTILITY
SERVICE TERRITORY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The utility subject to section 116C.779 shall
operate a program to develop, and to supplement with additional funding, financial
arrangements that allow schools to benefit from state and federal tax and other financial
incentives that schools are ineligible to receive directly in order to enable schools to install
and operate solar energy systems that can be used as teaching tools and integrated into the
school curriculum.
new text end

new text begin Subd. 2. new text end

new text begin Required plan. new text end

new text begin (a) By October 1, 2019, the public utility must file a plan for
the solar for schools program with the commissioner. The plan must contain but is not
limited to the following elements:
new text end

new text begin (1) a description of how entities that are eligible to take advantage of state and federal
tax and other financial incentives that reduce the cost of purchasing, installing, and operating
a solar energy system that schools are ineligible to take advantage of directly, can share a
portion of those financial benefits with schools at which a solar energy system will be
installed;
new text end

new text begin (2) a description of how the public utility will utilize funds appropriated to the program
under this section to provide additional financial assistance to schools at which a solar
energy system will be installed;
new text end

new text begin (3) certification that the financial assistance provided under this section to a school by
the public utility must include the full value of the renewable energy certificates associated
with the generation of electricity by the solar energy system receiving financial assistance
under this section over the lifetime of the solar energy system;
new text end

new text begin (4) an estimate of the amount of financial assistance that the public utility will provide
to a school under clauses (1) to (3) on a per kilowatt-hour produced basis, and the length
of time financial assistance will be provided;
new text end

new text begin (5) certification that the transaction between the public utility and the school for electricity
is the buy-all/sell-all method by which the public utility will charge the school for all
electricity the school consumes at the applicable retail rate schedule for sales to the school
based on the school's customer class, and shall credit or pay the school at the rate established
in subdivision 5;
new text end

new text begin (6) administrative procedures governing the application and financial benefit award
process, and the costs the public utility and the department are projected to incur to administer
the program;
new text end

new text begin (7) the public utility's proposed process for periodic reevaluation and modification of
the program; and
new text end

new text begin (8) any additional information required by the commissioner.
new text end

new text begin (b) The public utility may not implement the program until the commissioner approves
the public utility's plan submitted under this subdivision. The commissioner shall approve
a plan under this subdivision that the commissioner determines to be in the public interest
no later than December 31, 2019. Any proposed modifications to the plan approved under
this subdivision must be approved by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin System eligibility. new text end

new text begin A solar energy system is eligible to receive financial benefits
under this section if it meets all of the following conditions:
new text end

new text begin (1) the solar energy system must be located on or adjacent to a school building receiving
retail electric service from the public utility and completely located within the public utility's
electric service territory, provided that any land situated between the school building and
the site where the solar energy system is installed is owned by the school district in which
the school building operates; and
new text end

new text begin (2) the total aggregate nameplate capacity of all distributed generation serving the school
building, including any subscriptions to a community solar garden under section 216B.1641,
may not exceed the lesser of one megawatt (alternating current) or 120 percent of the average
annual electric energy consumption of the school building.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin (a) A school seeking financial assistance under this section
must submit an application to the public utility, including a plan for how the school will
use the solar energy system as a visible learning tool for students, teachers, and visitors to
the school, and how the solar energy system may be integrated into the school's curriculum.
new text end

new text begin (b) The public utility shall award financial assistance under this section on a first-come,
first-served basis.
new text end

new text begin (c) The public utility shall discontinue accepting applications under this section after all
funds appropriated under subdivision 5 are allocated to program participants, including
funds from canceled projects.
new text end

new text begin Subd. 5. new text end

new text begin Benefits information. new text end

new text begin Before signing an agreement with the public utility to
receive financial assistance under this section, a school must obtain from the developer and
provide to the public utility information the developer shared with potential investors in the
project regarding future financial benefits to be realized from installation of a solar energy
system at the school, and potential financial risks.
new text end

new text begin Subd. 6. new text end

new text begin Purchase rate; cost recovery; renewable energy credits. new text end

new text begin (a) The public utility
shall purchase all of the electricity generated by a solar energy system receiving financial
assistance under this section at a rate of $.105 per kilowatt-hour generated.
new text end

new text begin (b) Payments by the public utility of the rate established under this subdivision to a
school receiving financial assistance under this section are fully recoverable by the public
utility through the public utility's fuel clause adjustment.
new text end

new text begin (c) The renewable energy credits associated with the electricity generated by a solar
energy system installed under this section are the property of the public utility that is subject
to this section.
new text end

new text begin Subd. 7. new text end

new text begin Limitation. new text end

new text begin (a) No more than 50 percent of the financial assistance provided
by the public utility to schools under this section may be provided to schools where the
proportion of students eligible for free and reduced-price lunch under the National School
Lunch Program is less than 50 percent.
new text end

new text begin (b) No more than ten percent of the total amount of financial assistance provided by the
public utility to schools under this section may be provided to schools that are part of the
same school district.
new text end

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

new text begin The commissioner shall provide technical assistance to
schools to develop and execute projects under this section.
new text end

new text begin Subd. 9. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2023.
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. 8.

new text begin [216C.45] ELECTRIC VEHICLE CHARGING STATION REVOLVING
LOAN PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Borrower" means the state, counties, cities, other governmental entities, nonprofit
organizations, and private businesses eligible under this section to apply for and receive
loans from the electric vehicle charging station revolving loan fund.
new text end

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

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

new text begin (e) "Electric vehicle charging station" means an electric component assembly or cluster
of component assemblies designed specifically to charge an electric vehicle battery by
transferring electric energy to a battery or a storage device in the electric vehicle.
new text end

new text begin (f) "Loan" means financial assistance provided for all or part of the cost of an electric
vehicle charging station project, including money for design, development, purchase, or
installation.
new text end

new text begin Subd. 2. new text end

new text begin Revolving loan fund. new text end

new text begin The commissioner must establish an electric vehicle
charging station revolving loan fund to make loans for all or part of the cost of an electric
vehicle charging station project installed in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must establish a minimum interest rate
for loans to ensure that necessary loan administration costs are covered. The minimum
interest rate must not exceed:
new text end

new text begin (1) one percent interest for a loan to a borrower that is the state, other governmental
entity, or a nonprofit organization; or
new text end

new text begin (2) three percent interest for a loan to a borrower that is a private business.
new text end

new text begin (b) Loan repayment of principal and loan interest payments must be paid to the department
for deposit in the revolving loan fund for subsequent distribution or use consistent with the
requirements under this section.
new text end

new text begin (c) When a loan is repaid, 60 percent of the loan repayment must be retained in the
electric vehicle charging station revolving loan fund. The remaining 40 percent must be
transferred to the renewable development account under section 116C.779, until the total
amount transferred to the renewable development account equals $1,500,000.
new text end

new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin (a) A loan applicant must submit an application to the
commissioner on forms prescribed by the commissioner.
new text end

new text begin (b) The applicant must provide the following information:
new text end

new text begin (1) the estimated cost of the project and the amount of the loan sought;
new text end

new text begin (2) other possible sources of funding in addition to loans sought from the electric vehicle
charging station revolving loan fund;
new text end

new text begin (3) the proposed methods and sources of funds to repay loans received; and
new text end

new text begin (4) information demonstrating the financial status and ability of the borrower to repay
loans.
new text end

new text begin Subd. 5. new text end

new text begin Use of loan funds. new text end

new text begin (a) Loans made with funds from the electric vehicle charging
station revolving loan fund may be used to design, develop, purchase, and install electric
vehicle charging stations at locations in Minnesota.
new text end

new text begin (b) An electric vehicle charging station project receiving loan funds under this section
must be available for public use.
new text end

new text begin Subd. 6. new text end

new text begin Evaluation of projects. new text end

new text begin (a) The commissioner must consider the following
information when evaluating a project:
new text end

new text begin (1) a description of the nature and purpose of the proposed project, including an
explanation of the need for the project and the reasons why the project is in the public
interest;
new text end

new text begin (2) the relationship of the project to the local area's needs;
new text end

new text begin (3) the estimated project cost and the loan amount sought;
new text end

new text begin (4) proposed sources of funding in addition to the loan sought from the electric vehicle
charging station revolving loan fund;
new text end

new text begin (5) the need for the project as part of the overall transportation system; and
new text end

new text begin (6) the overall economic impact of the project.
new text end

new text begin (b) When evaluating projects, the commissioner may consult with the commissioner of
transportation regarding the electric vehicle charging needs throughout the state.
new text end

new text begin Subd. 7. new text end

new text begin Maximum loan amount. new text end

new text begin The maximum loan amount under this section is
$30,000 per electric vehicle charging station project.
new text end

new text begin Subd. 8. new text end

new text begin User fees. new text end

new text begin As a condition of accepting a loan under this section, a borrower
must agree to charge a per hour user fee for use of an electric vehicle charging station funded
by the loan. A borrower must use at least 25 percent of the fees collected to repay the loan
and pay for expenses associated with operating and maintaining the electric vehicle charging
station funded by the loan.
new text end

new text begin Subd. 9. new text end

new text begin Report to legislature. new text end

new text begin On or before March 15, 2020, and each March 15
thereafter, the commissioner must report to the chairs and ranking minority members of the
house of representatives and senate committees with jurisdiction over energy and
transportation policy and finance regarding the revolving loan program. The report must
include (1) a description of the projects and an account of loans made from the revolving
loan fund during the preceding calendar year, (2) the revolving loan fund balance, and (3)
an explanation of administrative expenses.
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.

new text begin PRAIRIE ISLAND NET ZERO PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The Prairie Island net zero project is established
with the goal of the Prairie Island Indian community developing an energy system that
results in net zero emissions.
new text end

new text begin Subd. 2. new text end

new text begin Grant. new text end

new text begin The commissioner of employment and economic development must
enter into a grant contract with the Prairie Island Indian community to provide the amount
appropriated under section 12 to stimulate research, development, and implementation of
renewable energy projects benefiting the Prairie Island Indian community or its members.
Any examination conducted by the commissioner of employment and economic development
to determine the sufficiency of the financial stability and capacity of the Prairie Island Indian
community to carry out the purposes of this grant is limited to the Community Services
Department of the Prairie Island Indian community.
new text end

new text begin Subd. 3. new text end

new text begin Plan; report. new text end

new text begin The Prairie Island Indian community must file a plan with the
commissioner of employment and economic development no later than July 1, 2019,
describing the Prairie Island net zero project elements and implementation strategy. The
Prairie Island Indian community must file a report on July 1, 2020, and each July 1 thereafter
until the project is complete, describing the progress made in implementing the project and
the uses of expended funds. A final report must be completed within 90 days of the date
the project is complete.
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. 10.

new text begin BIOMASS BUSINESS COMPENSATION.
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 following terms have
the meanings given.
new text end

new text begin (b) "Biomass plant" means the biomass plant identified under Minnesota Statutes, section
116C.779, subdivision 1, paragraph (f).
new text end

new text begin (c) "Early termination" means the early termination of the power purchase agreement
authorized under Minnesota Statutes, section 216B.2424, subdivision 9, with the biomass
plant.
new text end

new text begin (d) "Operating income" means a business's revenue minus its operating expenses.
new text end

new text begin Subd. 2. new text end

new text begin Office of Administrative Hearings; claims process. new text end

new text begin (a) The chief
administrative law judge of the Office of Administrative Hearings must assign an
administrative law judge to administer a claims award process to compensate businesses
negatively affected by the early termination. The chief administrative law judge may develop
a process, prescribe forms, identify documentation affected businesses must submit with
claims, and issue awards to eligible businesses consistent with this section. The process
must allow, but not require, an authorized representative from each business that applies
for compensation to appear in person before the assigned administrative law judge to provide
evidence in support of the business's claim.
new text end

new text begin (b) The chief administrative law judge may contract with and use the services of financial
or other consultants to examine financial documentation presented by claimants or otherwise
assist in the evaluation and award of claims.
new text end

new text begin (c) Records submitted to the Office of Administrative Hearings as part of the claims
process constitute business data under Minnesota Statutes, section 13.591.
new text end

new text begin (d) An award made under this section is final and is not subject to judicial review.
new text end

new text begin (e) An award made under this section does not constitute an admission of liability by
the state for any damages or other losses suffered by a business affected by the early
termination.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin To be eligible for an award of compensation, an affected business
must meet the following criteria:
new text end

new text begin (1) as of May 1, 2017, the affected business was operating under the terms of a valid
written contract, or an oral contract that is sufficiently supported by business records, with
the company operating the biomass plant or the fertilizer plant integrated with the biomass
plant to supply or manage material for, or receive material from, the biomass plant or the
fertilizer plant integrated with the biomass plant;
new text end

new text begin (2) the affected business is located in the state; and
new text end

new text begin (3) as the result of the early termination, the affected business suffered:
new text end

new text begin (i) decreased operating income; or
new text end

new text begin (ii) the loss of value of investments in real or personal property essential to its business
operations with the biomass plant.
new text end

new text begin Subd. 4. new text end

new text begin Types of claims. new text end

new text begin (a) An eligible business may make claims for a compensation
award based on either or both:
new text end

new text begin (1) decreased operating income; or
new text end

new text begin (2) the loss of value of investments in real or personal property essential to its business
operations with the biomass plant.
new text end

new text begin (b) To establish and quantify a claim for decreased operating income, an eligible business
must:
new text end

new text begin (1) demonstrate its operating income over the past five years derived from supplying or
managing material for, or receiving material from, the biomass plant;
new text end

new text begin (2) present evidence of any alternative business opportunities it has pursued or could
pursue to mitigate the loss of revenue from the termination of its contract with the biomass
plant; and
new text end

new text begin (3) demonstrate the amount that the business's annual operating income, including
operating income from any alternative business opportunities, after the termination of the
business's contract with the biomass plant is less than the five-year average of the business's
annual operating income before the early termination.
new text end

new text begin (c) To establish and quantify a loss of value of investments in real or personal property
claim, an eligible business must provide sufficient evidence of:
new text end

new text begin (1) the essential nature of the investment made in the property to fulfill the contract with
the biomass plant;
new text end

new text begin (2) the extent to which the eligible business is able to repurpose the property for another
productive use after the early termination, including but not limited to the use, sales, salvage,
or scrap value of the property for which the loss is claimed; and
new text end

new text begin (3) the value of the eligible business's nondepreciated investment in the property.
new text end

new text begin Subd. 5. new text end

new text begin Limitations on awards. new text end

new text begin (a) A compensation award for a decreased operating
income claim must not exceed the amount calculated under subdivision 4, paragraph (b),
clause (3), multiplied by two.
new text end

new text begin (b) The use, sales, salvage, or scrap value of the property for which a loss is claimed
must be deducted from a compensation award for a loss of value of investments in real or
personal property claim.
new text end

new text begin (c) A payment received from business interruption insurance policies, settlements, or
other forms of compensation related to the termination of the business's contract with the
biomass plant must be deducted from any compensation award provided under this section.
new text end

new text begin Subd. 6. new text end

new text begin Priority. new text end

new text begin The chief administrative law judge may give priority to claims by
eligible businesses that demonstrate a significant effort to pursue alternative business
opportunities or to conduct other loss mitigation efforts to reduce its claimed losses related
to the termination of its contract with the company operating the biomass plant.
new text end

new text begin Subd. 7. new text end

new text begin Awarding claims. new text end

new text begin If the amount provided for compensation in the biomass
business compensation account established under section 4 is insufficient to fully award all
claims eligible for an award, all awards must be adjusted proportionally based on the value
of the claim.
new text end

new text begin Subd. 8. new text end

new text begin Deadlines. new text end

new text begin The chief administrative law judge must make the application
process for eligible claims available by August 1, 2019. A business seeking an award under
this section must file all claims with the chief administrative law judge within 60 days of
the date the chief administrative law judge makes the application process for eligible claims
available. All preliminary awards on eligible claims must be made within 120 days of the
deadline date to file claims. Any requests to reconsider an award denial must be filed with
the chief administrative law judge within 60 days of the notice date for preliminary awards.
All final awards for eligible claims must be made within 60 days of the deadline date to file
reconsideration requests. The commissioner of management and budget must pay all awarded
claims within 45 days of the date the commissioner of management and budget receives
notice of the final awards from the chief administrative law judge.
new text end

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2022.
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. 11.

new text begin BIOMASS BUSINESS COMPENSATION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin A biomass business compensation account is
established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account must be credited to the account. Earnings, such
as interest, and any other earnings arising from the assets of the account are credited to the
account. Funds remaining in the account as of December 31, 2021, must be transferred to
the renewable development account established under Minnesota Statutes, section 116C.779.
new text end

new text begin Subd. 2. new text end

new text begin Funding for the special account. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), on July 1, 2019, $40,000,000 must be transferred
from the renewable development account under Minnesota Statutes, section 116C.779, to
the biomass business compensation account established under subdivision 3. The transferred
funds are appropriated to pay eligible obligations under the biomass business compensation
program established under section 8.
new text end

new text begin Subd. 3. new text end

new text begin Payment of expenses. new text end

new text begin The chief administrative law judge must certify to the
commissioner of management and budget the total costs incurred to administer the biomass
business compensation claims process. The commissioner of management and budget must
transfer an amount equal to the certified costs incurred for biomass business compensation
claim activities from the renewable development account under Minnesota Statutes, section
116C.779, and deposit it in the administrative hearings account under Minnesota Statutes,
section 14.54. Transfers may occur quarterly throughout the fiscal year and must be based
on quarterly cost and revenue reports, with final certification and reconciliation after each
fiscal year. The total amount transferred under this subdivision must not exceed $200,000.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2022.
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. 12. new text beginGREEN ROOF ADVISORY TASK FORCE; REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "green roof" means the roof
of a building on which:
new text end

new text begin (1) photovoltaic devices, as defined in Minnesota Statutes, section 216C.06, are sited;
or
new text end

new text begin (2) a vegetative landscape and associated elements are installed, which may include:
new text end

new text begin (i) a growing medium;
new text end

new text begin (ii) a waterproof membrane to protect the roof;
new text end

new text begin (iii) a barrier to prevent plant roots from damaging the roof;
new text end

new text begin (iv) a filter layer to prevent the growing medium from washing away;
new text end

new text begin (v) thermal insulation to protect the vegetation and the building;
new text end

new text begin (vi) a drainage system; and
new text end

new text begin (vii) structural support.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Green Roof Advisory Task Force consists of the following
members:
new text end

new text begin (1) the state building official, appointed under Minnesota Statutes, section 326B.127,
or the state building official's designee;
new text end

new text begin (2) a representative of the Building Owners and Managers Association Greater
Minneapolis, appointed by the president of the association;
new text end

new text begin (3) up to three representatives from Minnesota companies with extensive experience
installing green roofs, appointed by the commissioner of the Pollution Control Agency;
new text end

new text begin (4) a cochair of the Committee on the Environment of the American Institute of Architects
Minnesota, or the cochair's designee;
new text end

new text begin (5) a horticultural expert from the University of Minnesota Extension, appointed by the
dean of extension;
new text end

new text begin (6) a representative of the University of Minnesota Center for Sustainable Building
Research, appointed by the director of the center;
new text end

new text begin (7) a representative of the Minnesota Solar Energy Industries Association, appointed by
the president of the association;
new text end

new text begin (8) a representative from the Minnesota Nursery and Landscape Association;
new text end

new text begin (9) a representative of the Minnesota State Building Trades Council appointed by the
council;
new text end

new text begin (10) the commissioner of commerce, or the commissioner's designee; and
new text end

new text begin (11) other members appointed by the advisory task force that it deems to be helpful in
carrying out its duties under subdivision 3.
new text end

new text begin (b) Members of the advisory task force are not to be compensated for activities associated
with the advisory task force.
new text end

new text begin (c) The Department of Commerce must serve as staff to the advisory task force.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The advisory task force's duties are to review and evaluate:
new text end

new text begin (1) laws relating to green roofs enacted in American cities and states and in foreign
countries;
new text end

new text begin (2) estimates of the impacts of operating green roofs on:
new text end

new text begin (i) energy use in the buildings on which the green roofs are installed and any associated
reductions in the emission of greenhouse gases and other air pollutants;
new text end

new text begin (ii) roof replacement costs; and
new text end

new text begin (iii) management costs for storm water; and
new text end

new text begin (3) any other information the task force deems relevant.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By March 1, 2020, the advisory task force must submit a report to the
chairs and ranking minority members of the senate and house of representatives committees
with primary jurisdiction over energy policy and environmental policy. The report must
contain the task force's findings and recommendations, including discussion of the benefits
and problems associated with requiring buildings of a certain type and size to install green
roofs.
new text end

new text begin Subd. 5. new text end

new text begin Sunset. new text end

new text begin The task force shall sunset April 1, 2020.
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. 13. new text beginREPORT; COST-BENEFIT ANALYSIS OF ENERGY STORAGE
SYSTEMS.
new text end

new text begin (a) The commissioner of commerce must contract with an independent consultant selected
through a request for proposal process to produce a report analyzing the potential costs and
benefits of energy storage systems, as defined in Minnesota Statutes, section 216B.2422,
subdivision 1, in Minnesota. The study may also include scenarios examining energy storage
systems that are not capable of being controlled by a utility. The commissioner must engage
a broad group of Minnesota stakeholders, including electric utilities and others, to develop
and provide information for the report. The study must:
new text end

new text begin (1) identify and measure the different potential costs and savings produced by energy
storage system deployment, including but not limited to:
new text end

new text begin (i) generation, transmission, and distribution facilities asset deferral or substitution;
new text end

new text begin (ii) impacts on ancillary services costs;
new text end

new text begin (iii) impacts on transmission and distribution congestion;
new text end

new text begin (iv) impacts on peak power costs;
new text end

new text begin (v) impacts on emergency power supplies during outages;
new text end

new text begin (vi) impacts on curtailment of renewable energy generators; and
new text end

new text begin (vii) reduced greenhouse gas emissions;
new text end

new text begin (2) analyze and estimate the:
new text end

new text begin (i) costs and savings to customers that deploy energy storage systems;
new text end

new text begin (ii) impact on the utility's ability to integrate renewable resources;
new text end

new text begin (iii) impact on grid reliability and power quality; and
new text end

new text begin (iv) effect on retail electric rates over the useful life of a given energy storage system
compared to providing the same services using other facilities or resources;
new text end

new text begin (3) consider the findings of analysis conducted by the Midcontinent Independent System
Operator on energy storage capacity accreditation and participation in regional energy
markets, including updates of the analysis; and
new text end

new text begin (4) include case studies of existing energy storage applications currently providing the
benefits described in clauses (1) and (2).
new text end

new text begin (b) By December 31, 2019, the commissioner of commerce must submit the study to
the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over energy policy and finance.
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. 14. new text beginAPPROPRIATION; PRAIRIE ISLAND NET ZERO PROJECT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$20,000,000 in fiscal year 2020; $7,500,000 in fiscal years 2021, 2022, and 2023; and
$3,700,000 in fiscal year 2024 are appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
employment and economic development for a grant to the Prairie Island Indian community
to establish the net zero project under section 9.
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. 15. new text beginAPPROPRIATION; ENERGY STORAGE COST-BENEFIT ANALYSIS.
new text end

new text begin $150,000 in fiscal year 2019 is appropriated from the renewable development account
in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision
1, to the commissioner of commerce, to conduct an energy storage systems cost-benefit
analysis. This is a onetime appropriation and is available until June 30, 2020.
new text end

Sec. 16. new text beginAPPROPRIATION; GREEN ROOF TASK FORCE.
new text end

new text begin $55,000 in fiscal year 2020 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, paragraph (a), to the
commissioner of commerce to complete the green roof report required under section 12.
new text end

Sec. 17. new text beginAPPROPRIATION; SOLAR FOR SCHOOLS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$1,000,000 in fiscal year 2020 and $1,000,000 in fiscal year 2021 are appropriated from
the renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the public utility that is
subject to Minnesota Statutes, section 216C.376, for the purposes of awarding grants and
financial assistance to schools under the solar for schools program under Minnesota Statutes,
section 216C.376.
new text end

new text begin (b) This appropriation may be used by the commissioner to reimburse the reasonable
costs incurred by the public utility to administer the solar for schools program under
Minnesota Statutes, section 216C.375, and the reasonable costs of the department to review
and approve the public utility's plan, and any proposed modifications to that plan and to
provide technical assistance, under Minnesota Statutes, section 216C.376, subdivisions 2
and 8.
new text end

Sec. 18. new text beginAPPROPRIATION; ELECTRIC VEHICLE CHARGING STATION
REVOLVING LOAN PROGRAM.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$1,500,000 in fiscal year 2020 is appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, to the commissioner of commerce for the
electric vehicle charging station revolving loan program under Minnesota Statutes, section
216C.45. This appropriation must be used only for loans made for electric vehicle charging
station projects in the service area of a public utility that owns a nuclear electric generating
plant in Minnesota. The commissioner may use up to three percent of this amount to
administer the program. This is a onetime appropriation and is available until expended.
new text end

APPENDIX

Repealed Minnesota Statutes: S1692-1

216B.241 ENERGY CONSERVATION IMPROVEMENT.

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 5,000 members;

(2) a municipality that provides electric service to more than 1,000 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.