SF 3034

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; creating a new Department of Energy; transferring
existing duties from the Department of Commerce; amending Minnesota Statutes
2006, sections 15.01; 15.06, subdivision 1; 15A.0815, subdivision 2; 43A.08,
subdivision 1a; 116C.779; 123B.65, subdivisions 1, 5; 216A.085; 216A.095;
216B.241, subdivision 1; 216C.01, subdivisions 2, 3; proposing coding for new
law as Minnesota Statutes, chapter 216H.

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

ARTICLE 1

CREATION OF DEPARTMENT; TRANSFER OF DUTIES

Section 1.

new text begin [216H.01] DEPARTMENT OF ENERGY.
new text end

new text begin The Department of Energy is created, under the direction of a commissioner.
new text end

Sec. 2. new text begin TRANSFER OF DUTIES.
new text end

new text begin The following duties are transferred from the commissioner and Department of
Commerce to the commissioner of the Department of Energy:
new text end

new text begin (1) the powers and duties pertaining to renewable energy production incentives
under section 116C.779;
new text end

new text begin (2) to review costs in guaranteed savings contracts for school districts under section
123B.65;
new text end

new text begin (3) to supervise the energy issues intervention office under section 216A.085;
new text end

new text begin (4) to work jointly with the Public Utilities Commission under section 216A.095;
new text end

new text begin (5) to administer the conservation improvement program under section 216B.241;
and
new text end

new text begin (6) to promote energy conservation and renewable energy development, develop
and disseminate energy information, and administer the energy assistance program under
sections 216C.01 to 216C.41.
new text end

new text begin The energy planning and advocacy staff, the state energy office staff, and the fuel
assistance staff of the Department of Commerce are transferred to the Department of
Energy. The budgets of the Departments of Commerce and Energy shall be adjusted to
reflect the transfer.
new text end

new text begin Section 15.039 applies to these transfers.
new text end

Sec. 3. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall change the word "commerce," when it refers to the
Department of Commerce or the commissioner of commerce, to "energy," or "Department
of Energy" where it appears in sections 116C.779; 123B.65; 216A.085; 216A.095;
216B.241; and 216C.01 to 216C.41.
new text end

new text begin (b) The revisor of statutes shall change the word "commerce," when it refers to the
Department of Commerce or the commissioner of commerce, to "energy," or "Department
of Energy" where it appears in Minnesota Rules, including, but not limited to, parts
7606.0020; 7607.0140; 7607.0160; 7610.0100; 7610.0800; 7610.1300; 7615.0100;
7615.0340; 7615.0350; 7620.0100; 7620.0140; 7620.0210; 7620.0220; 7620.0400;
7620.0530; 7630.0100; 7635.0100; 7635.0170; 7635.0240; 7635.0410; 7635.0500;
7635.0530; 7655.0100; 7670.0260; 7672.0300; 7672.0400; 7674.0400; 7676.0300;
7678.0500; 7685.0120; 7825.0400; 7825.1900; 7825.1900; 7825.2390; 7825.2400;
7825.3800; 7829.0100; 7840.1500; 7840.1700; 7840.1800; 7840.2000; 7843.0400;
7848.0100; 7848.1700; 7848.1800; and 7848.1900.
new text end

new text begin (c) The revisor of statutes shall renumber the sections in column A to the sections
in column B.
new text end

new text begin Column A new text end		new text begin Column B new text end
new text begin 216C.01 new text end		new text begin 216H.02 new text end
new text begin 216C.02 new text end		new text begin 216H.03 new text end
new text begin 216C.05 new text end		new text begin 216H.05 new text end
new text begin 216C.051 new text end		new text begin 216H.051 new text end
new text begin 216C.052 new text end		new text begin 216H.052 new text end
new text begin 216C.053 new text end		new text begin 216H.053 new text end
new text begin 216C.06 new text end		new text begin 216H.06 new text end
new text begin 216C.07 new text end		new text begin 216H.07 new text end
new text begin 216C.08 new text end		new text begin 216H.08 new text end
new text begin 216C.09 new text end		new text begin 216H.09 new text end
new text begin 216C.10 new text end		new text begin 216H.10 new text end
new text begin 216C.11 new text end		new text begin 216H.11 new text end
new text begin 216C.12 new text end		new text begin 216H.12 new text end
new text begin 216C.13 new text end		new text begin 216H.13 new text end
new text begin 216C.14 new text end		new text begin 216H.14 new text end
new text begin 216C.15 new text end		new text begin 216H.15 new text end
new text begin 216C.16 new text end		new text begin 216H.16 new text end
new text begin 216C.17 new text end		new text begin 216H.17 new text end
new text begin 216C.18 new text end		new text begin 216H.18 new text end
new text begin 216C.19 new text end		new text begin 216H.19 new text end
new text begin 216C.20 new text end		new text begin 216H.20 new text end
new text begin 216C.25 new text end		new text begin 216H.25 new text end
new text begin 216C.26 new text end		new text begin 216H.26 new text end
new text begin 216C.261 new text end		new text begin 216H.261 new text end
new text begin 216C.262 new text end		new text begin 216H.262 new text end
new text begin 216C.263 new text end		new text begin 216H.263 new text end
new text begin 216C.264 new text end		new text begin 216H.264 new text end
new text begin 216C.265 new text end		new text begin 216H.265 new text end
new text begin 216C.266 new text end		new text begin 216H.266 new text end
new text begin 216C.27 new text end		new text begin 216H.27 new text end
new text begin 216C.29 new text end		new text begin 216H.29 new text end
new text begin 216C.30 new text end		new text begin 216H.30 new text end
new text begin 216C.31 new text end		new text begin 216H.31 new text end
new text begin 216C.315 new text end		new text begin 216H.315 new text end
new text begin 216C.32 new text end		new text begin 216H.32 new text end
new text begin 216C.33 new text end		new text begin 216H.33 new text end
new text begin 216C.34 new text end		new text begin 216H.34 new text end
new text begin 216C.35 new text end		new text begin 216H.35 new text end
new text begin 216C.37 new text end		new text begin 216H.37 new text end
new text begin 216C.373 new text end		new text begin 216H.373 new text end
new text begin 216C.38 new text end		new text begin 216H.38 new text end
new text begin 216C.381 new text end		new text begin 216H.381 new text end
new text begin 216C.41 new text end		new text begin 216H.41 new text end

ARTICLE 2

CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2006, section 15.01, is amended to read:

15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government:
the Department of Administration; the Department of Agriculture; the Department of
Commerce; the Department of Corrections; the Department of Education; the Department
of Employment and Economic Development; new text begin the Department of Energy; new text end the Department
of Finance; the Department of Health; the Department of Human Rights; the Department
of Labor and Industry; the Department of Military Affairs; the Department of Natural
Resources; the Department of Employee Relations; the Department of Public Safety;
the Department of Human Services; the Department of Revenue; the Department of
Transportation; the Department of Veterans Affairs; and their successor departments.

Sec. 2.

Minnesota Statutes 2006, section 15.06, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

This section applies to the following departments
or agencies: the Departments of Administration, Agriculture, Commerce, Corrections,
Education, Employee Relations, Employment and Economic Development, new text begin Energy,
new text end Finance, Health, Human Rights, Labor and Industry, Natural Resources, Public Safety,
Human Services, Revenue, Transportation, and Veterans Affairs; the Housing Finance and
Pollution Control Agencies; the Office of Commissioner of Iron Range Resources and
Rehabilitation; the Bureau of Mediation Services; and their successor departments and
agencies. The heads of the foregoing departments or agencies are "commissioners."

Sec. 3.

Minnesota Statutes 2006, section 15A.0815, subdivision 2, is amended to read:

Subd. 2.

Group I salary limits.

The salaries for positions in this subdivision may
not exceed 95 percent of the salary of the governor:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of employee relations;

new text begin Commissioner of energy;
new text end

Commissioner of finance;

Commissioner of health;

Executive director, Minnesota Office of Higher Education;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

Commissioner of labor and industry;

Commissioner of natural resources;

Director of Office of Strategic and Long-Range Planning;

Commissioner, Pollution Control Agency;

Commissioner of public safety;

Commissioner of revenue;

Commissioner of employment and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

Sec. 4.

Minnesota Statutes 2006, section 43A.08, subdivision 1a, is amended to read:

Subd. 1a.

Additional unclassified positions.

Appointing authorities for the
following agencies may designate additional unclassified positions according to this
subdivision: the Departments of Administration; Agriculture; Commerce; Corrections;
Education; Employee Relations; Employment and Economic Development; new text begin Energy;
new text end Explore Minnesota Tourism; Finance; Health; Human Rights; Labor and Industry; Natural
Resources; Public Safety; Human Services; Revenue; Transportation; and Veterans
Affairs; the Housing Finance and Pollution Control Agencies; the State Lottery; the
State Board of Investment; the Office of Administrative Hearings; the Offices of the
Attorney General, Secretary of State, and State Auditor; the Minnesota State Colleges
and Universities; the Minnesota Office of Higher Education; the Perpich Center for Arts
Education; and the Minnesota Zoological Board.

A position designated by an appointing authority according to this subdivision must
meet the following standards and criteria:

(1) the designation of the position would not be contrary to other law relating
specifically to that agency;

(2) the person occupying the position would report directly to the agency head or
deputy agency head and would be designated as part of the agency head's management
team;

(3) the duties of the position would involve significant discretion and substantial
involvement in the development, interpretation, and implementation of agency policy;

(4) the duties of the position would not require primarily personnel, accounting, or
other technical expertise where continuity in the position would be important;

(5) there would be a need for the person occupying the position to be accountable to,
loyal to, and compatible with, the governor and the agency head, the employing statutory
board or commission, or the employing constitutional officer;

(6) the position would be at the level of division or bureau director or assistant
to the agency head; and

(7) the commissioner has approved the designation as being consistent with the
standards and criteria in this subdivision.

Sec. 5.

Minnesota Statutes 2006, section 116C.779, is amended to read:

116C.779 FUNDING FOR RENEWABLE DEVELOPMENT.

Subdivision 1.

Renewable development account.

(a) The public utility that owns
the Prairie Island nuclear generating plant must transfer to a renewable development
account $16,000,000 annually each year the plant is in operation, and $7,500,000 each
year the plant is not in operation if ordered by the deleted text begin commission deleted text end new text begin Public Utilities Commission new text end
pursuant to paragraph (c). The fund transfer must be made if nuclear waste is stored in a
dry cask at the independent spent-fuel storage facility at Prairie Island for any part of a
year. Funds in the account may be expended only for development of renewable energy
sources. Preference must be given to development of renewable energy source projects
located within the state.

(b) Expenditures from the account may only be made after approval by order of the
Public Utilities Commission upon a petition by the public utility.

(c) After discontinuation of operation of the Prairie Island nuclear plant and each
year spent nuclear fuel is stored in dry cask at the Prairie Island facility, the deleted text begin commission deleted text end new text begin
Public Utilities Commission new text end shall require the public utility to pay $7,500,000 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 Prairie
Island to a permanent or interim storage site out of the state. This determination shall
be made at least every two years.

Subd. 2.

Renewable energy production incentive.

(a) Until January 1, 2018,
up to $10,900,000 annually must be allocated from available funds in the account to
fund renewable energy production incentives. $9,400,000 of this annual amount is for
incentives for up to 200 megawatts of electricity generated by wind energy conversion
systems that are eligible for the incentives under section 216C.41. The balance of this
amount, up to $1,500,000 annually, may be used for production incentives for on-farm
biogas recovery facilities that are eligible for the incentive under section 216C.41 or for
production incentives for other renewables, to be provided in the same manner as under
section 216C.41. Any portion of the $10,900,000 not expended in any calendar year for
the incentive is available for other spending purposes under this section. This subdivision
does not create an obligation to contribute funds to the account.

(b) The Department of deleted text begin Commerce deleted text end new text begin Energy new text end shall determine eligibility of projects
under section 216C.41 for the purposes of this subdivision. At least quarterly, the
Department of deleted text begin Commerce deleted text end new text begin Energy new text end shall notify the public utility of the name and address of
each eligible project owner and the amount due to each project under section 216C.41.
The public utility shall make payments within 15 working days after receipt of notification
of payments due.

Sec. 6.

Minnesota Statutes 2006, section 123B.65, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Energy conservation measure" means a training program or facility alteration
designed to reduce energy consumption or operating costs and includes:

(1) insulation of the building structure and systems within the building;

(2) storm windows and doors, caulking or weatherstripping, multiglazed windows
and doors, heat absorbing or heat reflective glazed and coated window and door
systems, additional glazing, reductions in glass area, and other window and door system
modifications that reduce energy consumption;

(3) automatic energy control systems;

(4) heating, ventilating, or air conditioning system modifications or replacements;

(5) replacement or modifications of lighting fixtures to increase the energy efficiency
of the lighting system without increasing the overall illumination of a facility, unless such
increase in illumination is necessary to conform to the applicable state or local building
code for the lighting system after the proposed modifications are made;

(6) energy recovery systems;

(7) cogeneration systems that produce steam or forms of energy such as heat, as well
as electricity, for use primarily within a building or complex of buildings;

(8) energy conservation measures that provide long-term operating cost reductions.

(b) "Guaranteed energy savings contract" means a contract for the evaluation
and recommendations of energy conservation measures, and for one or more energy
conservation measures. The contract must provide that all payments, except obligations
on termination of the contract before its expiration, are to be made over time, but not to
exceed 15 years from the date of final installation, and the savings are guaranteed to the
extent necessary to make payments for the systems.

(c) "Qualified provider" means a person or business experienced in the design,
implementation, and installation of energy conservation measures. A qualified provider
to whom the contract is awarded shall give a sufficient bond to the school district for
its faithful performance.

(d) "Commissioner" means the commissioner of deleted text begin commerce through the state energy
office deleted text end new text begin energy new text end .

Sec. 7.

Minnesota Statutes 2006, section 123B.65, subdivision 5, is amended to read:

Subd. 5.

Payment of review expenses.

The commissioner may charge a district
requesting services under subdivisions 3 and 4 actual costs incurred by the Department of
deleted text begin Commerce deleted text end new text begin Energy new text end while conducting the review, or one-half percent of the total identified
project cost, whichever is less. Before conducting the review, the commissioner shall
notify a district requesting review services that expenses will be charged to the district.
The commissioner shall bill the district upon completion of the contract review. Money
collected by the commissioner under this subdivision must be deposited in the general
fund. A district may include the cost of a review by the commissioner under subdivision 3
in a contract made pursuant to this section.

Sec. 8.

Minnesota Statutes 2006, section 216A.085, is amended to read:

216A.085 ENERGY ISSUES INTERVENTION OFFICE.

Subdivision 1.

Creation.

There is created within the Department of deleted text begin Commerce deleted text end new text begin
Energy new text end an Intervention Office to represent the interests of Minnesota residents, businesses,
and governments before bodies and agencies outside the state that make, interpret, or
implement national and international energy policy.

Subd. 2.

Duties.

The Intervention Office shall determine those areas in which state
intervention is most needed, most likely to have a positive impact, and most effective
for the broad public interest of the state. The office shall seek recommendations from
appropriate public and private sources before deciding which cases merit intervention.

Subd. 3.

Staffing.

The Intervention Office shall be under the control and supervision
of the commissioner of deleted text begin commerce deleted text end new text begin energy new text end . The commissioner may hire staff or contract
for outside services as needed to carry out the purposes of this section. The attorney
general shall act as counsel in all intervention proceedings.

Sec. 9.

Minnesota Statutes 2006, section 216A.095, is amended to read:

216A.095 COOPERATION BETWEEN DEPARTMENT AND COMMISSION.

Nothing in this chapter prevents the Department new text begin of Energy new text end or the new text begin Public Utilities
new text end Commission from entering into agreements with each other or with other agencies to
coordinate and share services, to conduct joint projects or investigations on matters within
the authority and jurisdiction of the parties thereto, or to temporarily assign staff to projects
requested by each other or by other agencies. The cooperative agreements may provide
for the sharing of costs between the parties thereto or the reimbursement of the department
or commission operating budget for expenditures made on behalf of the department or
commission or agency. No cooperative effort shall interfere with the independence and
integrity of either the commission or the department or any other agency that is a party.

Sec. 10.

Minnesota Statutes 2006, section 216B.241, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(a) "Commission" means the Public Utilities Commission.

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

(c) "Customer facility" means all buildings, structures, equipment, and installations
at a single site.

(d) "Department" means the Department of deleted text begin Commerce deleted text end new text begin Energy new text end .

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

(f) "Energy conservation improvement" means a project that results in energy
conservation.

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

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

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

(h) "Large electric customer facility" means a customer facility that imposes a
peak electrical demand on an electric utility's system of not less than 20,000 kilowatts,
measured in the same way as the utility that serves the customer facility measures
electrical demand for billing purposes, and for which electric services are provided at
retail on a single bill by a utility operating in the state.

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

Sec. 11.

Minnesota Statutes 2006, section 216C.01, subdivision 2, is amended to read:

Subd. 2.

Commissioner.

"Commissioner" means the commissioner of deleted text begin commerce deleted text end new text begin
energy new text end .

Sec. 12.

Minnesota Statutes 2006, section 216C.01, subdivision 3, is amended to read:

Subd. 3.

Department.

"Department" means the Department of deleted text begin Commerce deleted text end new text begin Energy new text end .

Sec. 13. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the sections in column A to the sections
in column B.
new text end

new text begin Column A new text end		new text begin Column B new text end
new text begin 116C.779 new text end		new text begin 216H.60 new text end
new text begin 216A.085 new text end		new text begin 216H.45 new text end
new text begin 216A.095 new text end		new text begin 216H.50 new text end
new text begin 216B.241 new text end		new text begin 216H.55 new text end