SF 4942

4th Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/22/2024 07:42pm

A bill for an act
relating to state government; amending agriculture policy provisions; establishing
and modifying agriculture programs; providing broadband appropriation transfer
authority; requiring an application for federal broadband aid; establishing a
supplemental budget for energy, transmission, and renewable energy purposes;
adding and modifying provisions governing geothermal energy, solar energy, and
other energy policy; establishing the Minnesota Energy Infrastructure Permitting
Act; authorizing administrative rulemaking; making technical changes; requiring
reports; appropriating money; amending Minnesota Statutes 2022, sections 3.7371,
subdivisions 2, 3, by adding subdivisions; 17.116, subdivision 2; 17.133,
subdivision 1; 18B.01, by adding a subdivision; 18B.26, subdivision 6; 18B.28,
by adding a subdivision; 18B.305, subdivision 2; 18B.32, subdivisions 1, 3, 4, 5;
18B.33, subdivisions 1, 5, 6; 18B.34, subdivisions 1, 4; 18B.35, subdivision 1;
18B.36, subdivisions 1, 2; 18B.37, subdivisions 2, 3; 18C.005, subdivision 33, by
adding a subdivision; 18C.115, subdivision 2; 18C.215, subdivision 1; 18C.221;
18C.70, subdivisions 1, 5; 18C.71, subdivisions 1, 2, 4, by adding a subdivision;
18C.80, subdivision 2; 18D.301, subdivision 1; 28A.10; 28A.151, subdivisions 1,
2, 3, 5, by adding a subdivision; 28A.21, subdivision 6; 31.74; 31.94; 32D.30;
41B.039, subdivision 2; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043,
subdivision 1b; 41B.045, subdivision 2; 41B.047, subdivision 1; 103I.621,
subdivisions 1, 2; 116C.83, subdivision 6; 116J.396, by adding a subdivision;
216A.037, subdivision 1; 216A.07, subdivision 3; 216B.098, by adding a
subdivision; 216B.16, subdivisions 6c, 8; 216B.2402, subdivisions 4, 10, by adding
a subdivision; 216B.2403, subdivisions 2, 3, 5, 8; 216B.241, subdivisions 1c, 2,
11, 12; 216B.2421, subdivision 2; 216B.2425, subdivisions 1, 2, by adding a
subdivision; 216B.2427, subdivision 1, by adding a subdivision; 216B.243,
subdivisions 3, 3a, 4, 9; 216B.246, subdivision 3; 216C.10; 216C.435, subdivisions
3a, 3b, 4, 10, by adding subdivisions; 216C.436, subdivisions 1, 4, 7, 8, 10;
216E.08, subdivision 2; 216E.11; 216E.13; 216E.14; 216E.15; 216E.16; 216E.18,
subdivision 2a; 232.21, subdivisions 3, 7, 11, 12, 13; Minnesota Statutes 2023
Supplement, sections 10.65, subdivision 2; 17.055, subdivision 3; 17.133,
subdivision 3; 17.134, subdivision 3, by adding a subdivision; 17.710; 18C.425,
subdivision 6; 18K.06; 116C.779, subdivision 1; 116C.7792; 216B.243, subdivision
8; 216C.08; 216C.09; 216C.331, subdivision 1; 216C.435, subdivision 8; 216C.436,
subdivisions 1b, 2; 216E.06; 216E.07; 216E.10, subdivisions 1, 2, 3; Laws 2023,
chapter 43, article 1, sections 2; 4; article 2, section 142, subdivision 9; Laws 2023,
chapter 60, article 10, section 2, subdivision 2; proposing coding for new law in
Minnesota Statutes, chapters 216C; 216G; 346; proposing coding for new law as
Minnesota Statutes, chapter 216I; repealing Minnesota Statutes 2022, sections
3.7371, subdivision 7; 34.07; 216E.001; 216E.01, subdivisions 1, 2, 3, 4, 5, 7, 8,
9, 10; 216E.02; 216E.021; 216E.03, subdivisions 2, 3a, 3b, 4, 9; 216E.04,
subdivisions 1, 3, 4, 5, 6, 7, 8, 9; 216E.05, subdivisions 1, 3; 216E.08, subdivisions
1, 4; 216E.18, subdivisions 1, 2; 216F.01; 216F.011; 216F.012; 216F.015; 216F.02;
216F.03; 216F.05; 216F.06; 216F.07; 216F.08; 216F.081; Minnesota Statutes
2023 Supplement, sections 216E.01, subdivisions 3a, 6, 9a; 216E.03, subdivisions
1, 3, 5, 6, 7, 10, 11; 216E.04, subdivision 2; 216E.05, subdivision 2; 216F.04;
Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030;
1506.0035; 1506.0040; 7850.1000; 7850.1100; 7850.1200; 7850.1300; 7850.1400;
7850.1500; 7850.1600; 7850.1700; 7850.1800; 7850.1900; 7850.2000; 7850.2100;
7850.2200; 7850.2300; 7850.2400; 7850.2500; 7850.2600; 7850.2700; 7850.2800;
7850.2900; 7850.3000; 7850.3100; 7850.3200; 7850.3300; 7850.3400; 7850.3500;
7850.3600; 7850.3700; 7850.3800; 7850.3900; 7850.4100; 7850.4200; 7850.4500;
7850.4600; 7850.4700; 7850.4800; 7850.4900; 7850.5000; 7850.5100; 7850.5200;
7850.5300; 7850.5400; 7850.5500; 7850.5600; 7854.0100; 7854.0200; 7854.0300;
7854.0400; 7854.0500; 7854.0600; 7854.0700; 7854.0800; 7854.0900; 7854.1000;
7854.1100; 7854.1200; 7854.1300; 7854.1400; 7854.1500.

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

ARTICLE 1

AGRICULTURE APPROPRIATIONS

Section 1.

Laws 2023, chapter 43, article 1, section 2, is amended to read:

Sec. 2. DEPARTMENT OF AGRICULTURE

Subdivision 1. Total Appropriation

$

deleted text begin 92,025,000 deleted text end new text begin 88,325,000 new text end

$

deleted text begin 72,223,000 deleted text end new text begin 80,243,000 new text end

Appropriations by Fund
	2024	2025
General	deleted text begin 91,626,000 deleted text end new text begin 87,926,000 new text end	deleted text begin 71,824,000 deleted text end new text begin 79,844,000 new text end
Remediation	399,000	399,000

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

Subd. 2. Protection Services

Appropriations by Fund
	2024	2025
General	deleted text begin 32,034,000 deleted text end new text begin 32,084,000 new text end	deleted text begin 18,743,000 deleted text end new text begin 22,113,000 new text end
Remediation	399,000	399,000

(a) $399,000 the first year and $399,000 the
second year are from the remediation fund for
administrative funding for the voluntary
cleanup program.

(b) $625,000 the first year and deleted text begin $625,000 deleted text end new text begin
$1,120,000 new text end the second year are for the soil
health financial assistance program under
Minnesota Statutes, section 17.134. The
commissioner may award no more than
$50,000 of the appropriation each year to a
single recipient. new text begin Of the second year amount,
$495,000 is for projects located in Dodge,
Fillmore, Goodhue, Houston, Mower,
Olmsted, Wabasha, or Winona County. new text end The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available in the second year.
Appropriations encumbered under contract on
or before June 30, 2025, for soil health
financial assistance grants are available until
June 30, 2027. The base for this appropriation
is $639,000 in fiscal year 2026 and each year
thereafter.

(c) $800,000 the first year deleted text begin is deleted text end new text begin and $75,000 the
second year are new text end for transfer to the pollinator
research account established under Minnesota
Statutes, section 18B.051. The base for this
transfer is $100,000 in fiscal year 2026 and
each year thereafter.

(d) $150,000 the first year and $150,000 the
second year are for transfer to the noxious
weed and invasive plant species assistance
account established under Minnesota Statutes,
section 18.89, to award grants under
Minnesota Statutes, section 18.90, to counties,
municipalities, and other weed management
entities, including Minnesota Tribal
governments as defined in Minnesota Statutes,
section 10.65. This is a onetime appropriation.

(e) $175,000 the first year and $175,000 the
second year are for compensation for
destroyed or crippled livestock under
Minnesota Statutes, section 3.737. The first
year appropriation may be spent to compensate
for livestock that were destroyed or crippled
during fiscal year 2023. If the amount in the
first year is insufficient, the amount in the
second year is available in the first year. The
commissioner may use up to $5,000 each year
to reimburse expenses incurred by university
extension educators to provide fair market
values of destroyed or crippled livestock. If
the commissioner receives federal dollars to
pay claims for destroyed or crippled livestock,
an equivalent amount of this appropriation
may be used to reimburse nonlethal prevention
methods performed by federal wildlife services
staff.

(f) $155,000 the first year and $155,000 the
second year are for compensation for crop
damage under Minnesota Statutes, section
3.7371. If the amount in the first year is
insufficient, the amount in the second year is
available in the first year. The commissioner
may use up to $10,000 of the appropriation
each year to reimburse expenses incurred by
the commissioner or the commissioner's
approved agent to investigate and resolve
claims, as well as for costs associated with
training for approved agents. The
commissioner may use up to $40,000 of the
appropriation each year to make grants to
producers for measures to protect stored crops
from elk damage. If the commissioner
determines that claims made under Minnesota
Statutes, section 3.737 or 3.7371, are
unusually high, amounts appropriated for
either program may be transferred to the
appropriation for the other program.

(g) $825,000 the first year and $825,000 the
second year are to replace capital equipment
in the Department of Agriculture's analytical
laboratory.

(h) $75,000 the first year and $75,000 the
second year are to support a meat processing
liaison position to assist new or existing meat
and poultry processing operations in getting
started, expanding, growing, or transitioning
into new business models.

(i) $2,200,000 the first year and $1,650,000
the second year are additional funding to
maintain the current level of service delivery
for programs under this subdivision. The base
for this appropriation is $1,925,000 for fiscal
year 2026 and each year thereafter.

(j) $250,000 the first year and $250,000 the
second year are for grants to organizations in
Minnesota to develop enterprises, supply
chains, and markets for continuous-living
cover crops and cropping systems in the early
stages of commercial development. For the
purposes of this paragraph, "continuous-living
cover crops and cropping systems" refers to
agroforestry, perennial biomass, perennial
forage, perennial grains, and winter-annual
cereal grains and oilseeds that have market
value as harvested or grazed commodities. By
February 1 each year, the commissioner must
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agriculture
finance and policy detailing uses of the funds
in this paragraph, including administrative
costs, and the achievements these funds
contributed to. The commissioner may use up
to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation.

(k) $45,000 the first year and $45,000 the
second year are appropriated for
wolf-livestock conflict-prevention grants. The
commissioner may use some of this
appropriation to support nonlethal prevention
work performed by federal wildlife services.
This is a onetime appropriation.

(l) $10,000,000 the first year is for transfer to
the grain indemnity account established in
Minnesota Statutes, section 223.24. This is a
onetime transfer.

(m) $125,000 the first year and $125,000 the
second year are for the PFAS in pesticides
review. This is a onetime appropriation.

(n) $1,941,000 the first year is for transfer to
the food handler license account. This is a
onetime transfer.

new text begin (o) $2,800,000 the second year is for nitrate
home water treatment, including reverse
osmosis, for private drinking-water wells with
nitrate in excess of the maximum contaminant
level of ten milligrams per liter and located in
Dodge, Fillmore, Goodhue, Houston, Mower,
Olmsted, Wabasha, or Winona County. The
commissioner must prioritize households at
or below 300 percent of the federal poverty
guideline and households with infants or
pregnant individuals. The commissioner may
also use this appropriation for education,
outreach, and technical assistance to
homeowners. The commissioner of agriculture
may transfer money to the commissioner of
health to establish and administer a mitigation
program for contaminated wells located in
Dodge, Fillmore, Goodhue, Houston, Mower,
Olmsted, Wabasha, or Winona County.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin (p) $50,000 the first year is to convene a
working group of interested parties, including
representatives from the Department of
Natural Resources, to investigate and
recommend options for addressing crop and
fence destruction due to Cervidae. By
February 1, 2025, the commissioner must
submit a report on the findings and
recommendations of the working group to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture policy and finance.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year. This is a onetime
appropriation.
new text end

Subd. 3. Agricultural Marketing and Development

5,165,000

4,985,000

(a) $150,000 the first year and $150,000 the
second year are to expand international trade
opportunities and markets for Minnesota
agricultural products.

(b) $186,000 the first year and $186,000 the
second year are for transfer to the Minnesota
grown account and may be used as grants for
Minnesota grown promotion under Minnesota
Statutes, section 17.102. Notwithstanding
Minnesota Statutes, section 16A.28, the
appropriations encumbered under contract on
or before June 30, 2025, for Minnesota grown
grants in this paragraph are available until June
30, 2027.

(c) $634,000 the first year and $634,000 the
second year are for the continuation of the
dairy development and profitability
enhancement programs, including dairy
profitability teams and dairy business planning
grants under Minnesota Statutes, section
32D.30.

(d) The commissioner may use funds
appropriated in this subdivision for annual
cost-share payments to resident farmers or
entities that sell, process, or package
agricultural products in this state for the costs
of organic certification. The commissioner
may allocate these funds for assistance to
persons transitioning from conventional to
organic agriculture.

(e) $600,000 the first year and $420,000 the
second year are to maintain the current level
of service delivery. The base for this
appropriation is deleted text begin $490,000 deleted text end new text begin $510,000 new text end for fiscal
year 2026 and each year thereafter.

(f) $100,000 the first year and $100,000 the
second year are for mental health outreach and
support to farmers, ranchers, and others in the
agricultural community and for farm safety
grant and outreach programs under Minnesota
Statutes, section 17.1195. Mental health
outreach and support may include a 24-hour
hotline, stigma reduction, and education.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year. This is a onetime
appropriation.

(g) $100,000 the first year and $100,000 the
second year are to award and administer grants
deleted text begin for infrastructure deleted text end new text begin and other forms of financial
assistance new text end to support EBT, SNAP, SFMNP,
and related programs at farmers markets.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year. This is a onetime
appropriation.

(h) $200,000 the first year and $200,000 the
second year are to award cooperative grants
under Minnesota Statutes, section 17.1016.
The commissioner may use up to 6.5 percent
of the appropriation each year to administer
the grant program. Notwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance does not cancel at the end of the first
year and is available in the second year. This
is a onetime appropriation.

Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement

deleted text begin 37,809,000 deleted text end new text begin 34,034,000 new text end

deleted text begin 33,809,000 deleted text end new text begin 38,159,000 new text end

(a) $10,702,000 the first year and $10,702,000
the second year are for the agriculture
research, education, extension, and technology
transfer program under Minnesota Statutes,
section 41A.14. Except as provided below,
the appropriation each year is for transfer to
the agriculture research, education, extension,
and technology transfer account under
Minnesota Statutes, section 41A.14,
subdivision 3, and the commissioner shall
transfer funds each year to the Board of
Regents of the University of Minnesota for
purposes of Minnesota Statutes, section
41A.14. To the extent practicable, money
expended under Minnesota Statutes, section
41A.14, subdivision 1, clauses (1) and (2),
must supplement and not supplant existing
sources and levels of funding. The
commissioner may use up to one percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agriculture
research, education, extension, and technology
transfer grant program under Minnesota
Statutes, section 41A.14:

(1) $600,000 the first year and $600,000 the
second year are for the Minnesota Agricultural
Experiment Station's agriculture rapid
response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2);

(2) up to $1,000,000 the first year and up to
$1,000,000 the second year are for research
on avian influenza, salmonella, and other
turkey-related diseases and disease prevention
measures;

(3) $2,250,000 the first year and $2,250,000
the second year are for grants to the Minnesota
Agricultural Education Leadership Council to
enhance agricultural education with priority
given to Farm Business Management
challenge grants;

(4) $450,000 the first year is for the cultivated
wild rice breeding project at the North Central
Research and Outreach Center to include a
tenure track/research associate plant breeder;

(5) $350,000 the first year and $350,000 the
second year are for potato breeding;

(6) $802,000 the first year and $802,000 the
second year are to fund the Forever Green
Initiative and protect the state's natural
resources while increasing the efficiency,
profitability, and productivity of Minnesota
farmers by incorporating perennial and
winter-annual crops into existing agricultural
practices. The base for the allocation under
this clause is $802,000 in fiscal year 2026 and
each year thereafter. By February 1 each year,
the dean of the College of Food, Agricultural
and Natural Resource Sciences must submit
a report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and policy
and higher education detailing uses of the
funds in this paragraph, including
administrative costs, and the achievements
these funds contributed to; deleted text begin and
deleted text end

(7) $350,000 each year is for farm-scale winter
greenhouse research and development
coordinated by University of Minnesota
Extension Regional Sustainable Development
Partnerships. The allocation in this clause is
onetime deleted text begin . deleted text end new text begin ;
new text end

new text begin (8) $200,000 the second year is for research
on natural stands of wild rice; and
new text end

new text begin (9) $250,000 the second year is for the
cultivated wild rice forward selection project
at the North Central Research and Outreach
Center, including a tenure track or research
associate plant scientist.
new text end

(b) The base for the agriculture research,
education, extension, and technology transfer
program is $10,352,000 in fiscal year 2026
and $10,352,000 in fiscal year 2027.

(c) deleted text begin $27,107,000 deleted text end new text begin $23,332,000 new text end the first year deleted text begin and
$23,107,000 the second year are deleted text end new text begin is new text end for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
deleted text begin each year deleted text end among the following areas:
facilitating the start-up, modernization,
improvement, or expansion of livestock
operations, including beginning and
transitioning livestock operations with
preference given to robotic dairy-milking
equipment; assisting value-added agricultural
businesses to begin or expand, to access new
markets, or to diversify, including aquaponics
systems, with preference given to hemp fiber
processing equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.

Of the amount appropriated for the agricultural
growth, research, and innovation program
under Minnesota Statutes, section 41A.12:

(1) $1,000,000 the first year deleted text begin and $1,000,000
the second year are deleted text end new text begin is new text end for distribution in equal
amounts to each of the state's county fairs to
preserve and promote Minnesota agriculture;

(2) $5,750,000 the first year deleted text begin and $5,750,000
the second year are deleted text end new text begin is new text end for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, 41A.18, and 41A.20. Notwithstanding
Minnesota Statutes, section 16A.28, the first
year appropriation is available until June 30,
2025 deleted text begin , and the second year appropriation is
available until June 30, 2026 deleted text end . If this
appropriation exceeds the total amount for
which all producers are eligible in a fiscal
year, the balance of the appropriation is
available for other purposes under this
paragraph deleted text begin . The base under this clause is
$3,000,000 in fiscal year 2026 and each year
thereafter deleted text end ;

(3) $3,375,000 the first year deleted text begin and $3,375,000
the second year are deleted text end new text begin is new text end for grants that enable
retail petroleum dispensers, fuel storage tanks,
and other equipment to dispense biofuels to
the public in accordance with the biofuel
replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than 10 retail petroleum
dispensing sites and each site is located in
Minnesota. The grant money must be used to
replace or upgrade equipment that does not
have the ability to be certified for E25. A grant
award must not exceed 65 percent of the cost
of the appropriate technology. A grant award
must not exceed $200,000 per station. The
commissioner must cooperate with biofuel
stakeholders in the implementation of the grant
program. The commissioner, in cooperation
with any economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of dollars
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses deleted text begin .
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter deleted text end ;

(4) $1,250,000 the first year deleted text begin and $1,250,000
the second year are deleted text end new text begin is new text end for grants to facilitate
the start-up, modernization, or expansion of
meat, poultry, egg, and milk processing
facilities. A grant award under this clause must
not exceed $200,000. Any unencumbered
balance at the end of the second year does not
cancel until June 30, 2026, and may be used
for other purposes under this paragraph deleted text begin . The
base under this clause is $250,000 in fiscal
year 2026 and each year thereafter deleted text end ;

(5) $1,150,000 the first year deleted text begin and $1,150,000
the second year are deleted text end new text begin is new text end for providing more
fruits, vegetables, meat, poultry, grain, and
dairy for children in school and early
childhood education deleted text begin centers deleted text end new text begin settings new text end ,
including, at the commissioner's discretion,
providing grants to reimburse schools and
early childhood education deleted text begin centers deleted text end new text begin and child
care providers new text end for purchasing equipment and
agricultural products. new text begin Organizations must
participate in the National School Lunch
Program or the Child and Adult Care Food
Program to be eligible. new text end Of the amount
appropriated, $150,000 deleted text begin each year deleted text end is for a
statewide coordinator of farm-to-institution
strategy and programming. The coordinator
must consult with relevant stakeholders and
provide technical assistance and training for
participating farmers and eligible grant
recipients deleted text begin . The base under this clause is
$1,294,000 in fiscal year 2026 and each year
thereafter deleted text end ;

deleted text begin (6) $4,000,000 the first year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll
in coverage under a federal dairy risk
protection program and produced no more
than 16,000,000 pounds of milk in 2022. The
commissioner must make DAIRI payments
based on the amount of milk produced in
2022, up to 5,000,000 pounds per participating
farm, at a rate determined by the commissioner
within the limits of available funding. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. Any unencumbered balance at
the end of the second year does not cancel
until June 30, 2026, and may be used for other
purposes under this paragraph. The allocation
in this clause is onetime;
deleted text end

deleted text begin (7) deleted text end new text begin (6) new text end $2,000,000 the first year deleted text begin and
$2,000,000 the second year are deleted text end new text begin is new text end for urban
youth agricultural education or urban
agriculture community development; deleted text begin and
deleted text end

deleted text begin (8) deleted text end new text begin (7) new text end $1,000,000 the first year deleted text begin and
$1,000,000 the second year are deleted text end new text begin is new text end for the good
food access program under Minnesota
Statutes, section 17.1017 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) $225,000 the first year is to provide grants
to secondary career and technical education
programs for the purpose of offering
instruction in meat cutting and butchery.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This is a onetime
appropriation. Grants may be used for costs,
including but not limited to:
new text end

new text begin (i) equipment required for a meat cutting
program;
new text end

new text begin (ii) facility renovation to accommodate meat
cutting; and
new text end

new text begin (iii) training faculty to teach the fundamentals
of meat processing.
new text end

new text begin A grant recipient may be awarded a grant of
up to $75,000 and may use up to ten percent
of the grant for faculty training. Priority may
be given to applicants who are coordinating
with meat cutting and butchery programs at
Minnesota State Colleges and Universities
institutions or with local industry partners.
new text end

new text begin By January 15, 2025, the commissioner must
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and
education finance by listing the grants made
under this paragraph by county and noting the
number and amount of grant requests not
fulfilled. The report may include additional
information as determined by the
commissioner, including but not limited to
information regarding the outcomes produced
by these grants. If additional grants are
awarded under this paragraph that were not
covered in the report due by January 15, 2025,
the commissioner must submit an additional
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture finance and
education finance regarding all grants issued
under this paragraph by November 1, 2025.
new text end

Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available for the second year, and
appropriations encumbered under contract on
or before June 30, 2025, for agricultural
growth, research, and innovation grants are
available until June 30, 2028.

new text begin (d) $27,457,000 the second year is for the
agricultural growth, research, and innovation
program under Minnesota Statutes, section
41A.12. Except as provided below, the
commissioner may allocate this appropriation
among the following areas: facilitating the
start-up, modernization, improvement, or
expansion of livestock operations, including
beginning and transitioning livestock
operations with preference given to robotic
dairy-milking equipment; assisting
value-added agricultural businesses to begin
or expand, to access new markets, or to
diversify, including aquaponics systems, with
preference given to hemp fiber processing
equipment; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms, including
by providing loans under Minnesota Statutes,
section 41B.056; sustainable agriculture
on-farm research and demonstration; the
development or expansion of food hubs and
other alternative community-based food
distribution systems; enhancing renewable
energy infrastructure and use; crop research,
including basic and applied turf seed research;
Farm Business Management tuition assistance;
and good agricultural practices and good
handling practices certification assistance. The
commissioner may use up to 6.5 percent of
this appropriation for costs incurred to
administer the program.
new text end

new text begin Of the amount appropriated for the agricultural
growth, research, and innovation program
under Minnesota Statutes, section 41A.12:
new text end

new text begin (1) $1,000,000 the second year is for
distribution in equal amounts to each of the
state's county fairs to preserve and promote
Minnesota agriculture;
new text end

new text begin (2) $5,750,000 the second year is for incentive
payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.
Notwithstanding Minnesota Statutes, section
16A.28, this appropriation is available until
June 30, 2027. If this appropriation exceeds
the total amount for which all producers are
eligible in a fiscal year, the balance of the
appropriation is available for other purposes
under this paragraph. The base under this
clause is $3,000,000 in fiscal year 2026 and
each year thereafter;
new text end

new text begin (3) $3,375,000 the second year is for grants
that enable retail petroleum dispensers, fuel
storage tanks, and other equipment to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A retail
petroleum dispenser selling petroleum for use
in spark ignition engines for vehicle model
years after 2000 is eligible for grant money
under this clause if the retail petroleum
dispenser has no more than ten retail
petroleum dispensing sites and each site is
located in Minnesota. The grant money must
be used to replace or upgrade equipment that
does not have the ability to be certified for
E25. A grant award must not exceed 65
percent of the cost of the appropriate
technology. A grant award must not exceed
$200,000 per station. The commissioner must
cooperate with biofuel stakeholders in the
implementation of the grant program. The
commissioner, in cooperation with any
economic or community development
financial institution and any other entity with
which the commissioner contracts, must
submit a report on the biofuels infrastructure
financial assistance program by January 15 of
each year to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over agriculture
policy and finance. The annual report must
include but not be limited to a summary of the
following metrics: (i) the number and types
of projects financed; (ii) the amount of money
leveraged or matched per project; (iii) the
geographic distribution of financed projects;
(iv) any market expansion associated with
upgraded infrastructure; (v) the demographics
of the areas served; (vi) the costs of the
program; and (vii) the number of grants to
minority-owned or female-owned businesses.
The base under this clause is $3,000,000 for
fiscal year 2026 and each year thereafter;
new text end

new text begin (4) $1,250,000 the second year is for grants
to facilitate the start-up, modernization, or
expansion of meat, poultry, egg, and milk
processing facilities. A grant award under this
clause must not exceed $200,000. Any
unencumbered balance at the end of the second
year does not cancel until June 30, 2027, and
may be used for other purposes under this
paragraph. The base under this clause is
$250,000 in fiscal year 2026 and each year
thereafter;
new text end

new text begin (5) $1,275,000 the second year is for providing
more fruits, vegetables, meat, poultry, grain,
and dairy for children in school and early
childhood education settings, including, at the
commissioner's discretion, providing grants
to reimburse schools and early childhood
education and child care providers for
purchasing equipment and agricultural
products. Organizations must participate in
the National School Lunch Program or the
Child and Adult Care Food Program to be
eligible. Of the amount appropriated, $150,000
is for a statewide coordinator of
farm-to-institution strategy and programming.
The coordinator must consult with relevant
stakeholders and provide technical assistance
and training for participating farmers and
eligible grant recipients. The base under this
clause is $1,294,000 in fiscal year 2026 and
each year thereafter;
new text end

new text begin (6) $4,000,000 the second year is for Dairy
Assistance, Investment, Relief Initiative
(DAIRI) grants and other forms of financial
assistance to Minnesota dairy farms that enroll
in coverage under a federal dairy risk
protection program and produced no more
than 16,000,000 pounds of milk in 2022. The
commissioner must make DAIRI payments
based on the amount of milk produced in
2022, up to 5,000,000 pounds per participating
farm, at a rate determined by the commissioner
within the limits of available funding. Any
unencumbered balance on June 30, 2026, may
be used for other purposes under this
paragraph. The allocation in this clause is
onetime;
new text end

new text begin (7) $2,000,000 the second year is for urban
youth agricultural education or urban
agriculture community development;
new text end

new text begin (8) $1,000,000 the second year is for the good
food access program under Minnesota
Statutes, section 17.1017; and
new text end

new text begin (9) $225,000 the second year is for the
protecting livestock grant program for
producers to support the installation of
measures to prevent the transmission of avian
influenza. For the appropriation in this
paragraph, a grant applicant must document
a cost-share of 20 percent. An applicant's
cost-share amount may be reduced up to
$2,000 to cover time and labor costs.
Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14, the commissioner may
use up to 6.5 percent of this appropriation for
administrative costs. This appropriation is
available until June 30, 2027. This is a onetime
appropriation. Notwithstanding Minnesota
Statutes, section 16A.28, this appropriation
does not cancel at the end of the second year
and is available until June 30, 2027.
Appropriations encumbered under contract on
or before June 30, 2027, for agricultural
growth, research, and innovation grants are
available until June 30, 2030.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The base for the agricultural growth,
research, and innovation program is
deleted text begin $16,294,000 deleted text end new text begin $17,582,000 new text end in fiscal year 2026
and each year thereafter and includes $200,000
each year for cooperative development grants.

Subd. 5. Administration and Financial Assistance

deleted text begin 16,618,000 deleted text end new text begin 16,643,000 new text end

deleted text begin 14,287,000 deleted text end new text begin 14,587,000 new text end

(a) $474,000 the first year and $474,000 the
second year are for payments to county and
district agricultural societies and associations
under Minnesota Statutes, section 38.02,
subdivision 1. Aid payments to county and
district agricultural societies and associations
must be disbursed no later than July 15 of each
year. These payments are the amount of aid
from the state for an annual fair held in the
previous calendar year.

(b) $350,000 the first year and $350,000 the
second year are for grants to the Minnesota
Agricultural Education and Leadership
Council for programs of the council under
Minnesota Statutes, chapter 41D. The base for
this appropriation is $250,000 in fiscal year
2026 and each year thereafter.

(c) $2,000 the first year is for a grant to the
Minnesota State Poultry Association. This is
a onetime appropriation. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

(d) $18,000 the first year and $18,000 the
second year are for grants to the Minnesota
Livestock Breeders Association. This is a
onetime appropriation.

(e) $60,000 the first year and $60,000 the
second year are for grants to the Northern
Crops Institute that may be used to purchase
equipment. This is a onetime appropriation.

(f) $34,000 the first year and $34,000 the
second year are for grants to the Minnesota
State Horticultural Society. This is a onetime
appropriation.

(g) $25,000 the first year and $25,000 the
second year are for grants to the Center for
Rural Policy and Development. This is a
onetime appropriation.

(h) $75,000 the first year and $75,000 the
second year are appropriated from the general
fund to the commissioner of agriculture for
grants to the Minnesota Turf Seed Council for
basic and applied research on: (1) the
improved production of forage and turf seed
related to new and improved varieties; and (2)
native plants, including plant breeding,
nutrient management, pest management,
disease management, yield, and viability. The
Minnesota Turf Seed Council may subcontract
with a qualified third party for some or all of
the basic or applied research. Any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. The Minnesota Turf Seed Council
must prepare a report outlining the use of the
grant money and related accomplishments. No
later than January 15, 2025, the council must
submit the report to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over agriculture finance and policy. This is a
onetime appropriation.

(i) $100,000 the first year and $100,000 the
second year are for grants to GreenSeam for
assistance to agriculture-related businesses to
support business retention and development,
business attraction and creation, talent
development and attraction, and regional
branding and promotion. These are onetime
appropriations. No later than December 1,
2024, and December 1, 2025, GreenSeam
must report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over agriculture and rural
development with information on new and
existing businesses supported, number of new
jobs created in the region, new educational
partnerships and programs supported, and
regional branding and promotional efforts.

(j) $1,950,000 the first year and $1,950,000
the second year are for grants to Second
Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the
following purposes:

(1) at least $850,000 each year must be
allocated to purchase milk for distribution to
Minnesota's food shelves and other charitable
organizations that are eligible to receive food
from the food banks. Milk purchased under
the grants must be acquired from Minnesota
milk processors and based on low-cost bids.
The milk must be allocated to each Feeding
America food bank serving Minnesota
according to the formula used in the
distribution of United States Department of
Agriculture commodities under The
Emergency Food Assistance Program. Second
Harvest Heartland may enter into contracts or
agreements with food banks for shared funding
or reimbursement of the direct purchase of
milk. Each food bank that receives funding
under this clause may use up to two percent
for administrative expenses. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance the first year does not
cancel and is available the second year;

(2) to compensate agricultural producers and
processors for costs incurred to harvest and
package for transfer surplus fruits, vegetables,
and other agricultural commodities that would
otherwise go unharvested, be discarded, or be
sold in a secondary market. Surplus
commodities must be distributed statewide to
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Surplus food acquired under this clause
must be from Minnesota producers and
processors. Second Harvest Heartland may
use up to 15 percent of each grant awarded
under this clause for administrative and
transportation expenses; and

(3) to purchase and distribute protein products,
including but not limited to pork, poultry, beef,
dry legumes, cheese, and eggs to Minnesota's
food shelves and other charitable organizations
that are eligible to receive food from the food
banks. Second Harvest Heartland may use up
to two percent of each grant awarded under
this clause for administrative expenses. Protein
products purchased under the grants must be
acquired from Minnesota processors and
producers.

Second Harvest Heartland must submit
quarterly reports to the commissioner and the
chairs and ranking minority members of the
legislative committees with jurisdiction over
agriculture finance in the form prescribed by
the commissioner. The reports must include
but are not limited to information on the
expenditure of funds, the amount of milk or
other commodities purchased, and the
organizations to which this food was
distributed. The base for this appropriation is
$1,700,000 for fiscal year 2026 and each year
thereafter.

(k) $25,000 the first year and $25,000 the
second year are for grants to the Southern
Minnesota Initiative Foundation to promote
local foods through an annual event that raises
public awareness of local foods and connects
local food producers and processors with
potential buyers.

(l) $300,000 the first year and $300,000 the
second year are for grants to The Good Acre
for the Local Emergency Assistance Farmer
Fund (LEAFF) program to compensate
emerging farmers for crops donated to hunger
relief organizations in Minnesota. This is a
onetime appropriation.

(m) $750,000 the first year and $750,000 the
second year are to expand the Emerging
Farmers Office and provide services to
beginning and emerging farmers to increase
connections between farmers and market
opportunities throughout the state. This
appropriation may be used for grants,
translation services, training programs, or
other purposes in line with the
recommendations of the Emerging Farmer
Working Group established under Minnesota
Statutes, section 17.055, subdivision 1. The
base for this appropriation is $1,000,000 in
fiscal year 2026 and each year thereafter.

(n) $50,000 the first year is to provide
technical assistance and leadership in the
development of a comprehensive and
well-documented state aquaculture plan. The
commissioner must provide the state
aquaculture plan to the legislative committees
with jurisdiction over agriculture finance and
policy by February 15, 2025.

(o) $337,000 the first year and $337,000 the
second year are for farm advocate services.
Of these amounts, $50,000 the first year and
$50,000 the second year are for the
continuation of the farmland transition
programs and may be used for grants to
farmland access teams to provide technical
assistance to potential beginning farmers.
Farmland access teams must assist existing
farmers and beginning farmers with
transitioning farm ownership and farm
operation. Services provided by teams may
include but are not limited to mediation
assistance, designing contracts, financial
planning, tax preparation, estate planning, and
housing assistance.

(p) $260,000 the first year and $260,000 the
second year are for a pass-through grant to
Region Five Development Commission to
provide, in collaboration with Farm Business
Management, statewide mental health
counseling support to Minnesota farm
operators, families, and employees, and
individuals who work with Minnesota farmers
in a professional capacity. Region Five
Development Commission may use up to 6.5
percent of the grant awarded under this
paragraph for administration.

(q) $1,000,000 the first year is for transfer to
the agricultural emergency account established
under Minnesota Statutes, section 17.041.

(r) $1,084,000 the first year and $500,000 the
second year are to support IT modernization
efforts, including laying the technology
foundations needed for improving customer
interactions with the department for licensing
and payments. This is a onetime appropriation.

(s) $275,000 the first year is for technical
assistance grants to certified community
development financial institutions that
participate in United States Department of
Agriculture loan or grant programs for small
or emerging farmers, including but not limited
to the Increasing Land, Capital, and Market
Access Program. For purposes of this
paragraph, "emerging farmer" has the meaning
given in Minnesota Statutes, section 17.055,
subdivision 1. The commissioner may use up
to 6.5 percent of this appropriation for costs
incurred to administer the program.
Notwithstanding Minnesota Statutes, section
16A.28, any unencumbered balance does not
cancel at the end of the first year and is
available in the second year. This is a onetime
appropriation.

(t) $1,425,000 the first year and $1,425,000
the second year are for transfer to the
agricultural and environmental revolving loan
account established under Minnesota Statutes,
section 17.117, subdivision 5a, for low-interest
loans under Minnesota Statutes, section
17.117.

(u) $150,000 the first year and $150,000 the
second year are for administrative support for
the Rural Finance Authority.

(v) The base in fiscal years 2026 and 2027 is
$150,000 each year to coordinate
climate-related activities and services within
the Department of Agriculture and
counterparts in local, state, and federal
agencies and to hire a full-time climate
implementation coordinator. The climate
implementation coordinator must coordinate
efforts seeking federal funding for Minnesota's
agricultural climate adaptation and mitigation
efforts and develop strategic partnerships with
the private sector and nongovernment
organizations.

(w) $1,200,000 the first year and $930,000 the
second year are to maintain the current level
of service delivery. The base for this
appropriation is deleted text begin $1,085,000 deleted text end new text begin $1,065,000 new text end in
fiscal year 2026 and deleted text begin $1,085,000 deleted text end new text begin $1,065,000 new text end
in fiscal year 2027 new text begin and each year thereafter new text end .

(x) $250,000 the first year is for a grant to the
Board of Regents of the University of
Minnesota to purchase equipment for the
Veterinary Diagnostic Laboratory to test for
chronic wasting disease, African swine fever,
avian influenza, and other animal diseases.
The Veterinary Diagnostic Laboratory must
report expenditures under this paragraph to
the legislative committees with jurisdiction
over agriculture finance and higher education
with a report submitted by January 3, 2024,
and a final report submitted by December 31,
2024. The reports must include a list of
equipment purchased, including the cost of
each item.

(y) $1,000,000 the first year and $1,000,000
the second year are to award and administer
down payment assistance grants under
Minnesota Statutes, section 17.133, with
priority given to deleted text begin emerging farmers as defined
in Minnesota Statutes, section 17.055,
subdivision 1 deleted text end new text begin eligible applicants with no more
than $100,000 in annual gross farm product
sales and eligible applicants who are producers
of industrial hemp, cannabis, or one or more
of the following specialty crops as defined by
the United States Department of Agriculture
for purposes of the specialty crop block grant
program: fruits and vegetables, tree nuts, dried
fruits, medicinal plants, culinary herbs and
spices, horticulture crops, floriculture crops,
and nursery crops new text end . Notwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance at the end of the first year does not
cancel and is available in the second year and
appropriations encumbered under contract by
June 30, 2025, are available until June 30,
2027.

(z) $222,000 the first year and $322,000 the
second year are for meat processing training
and retention incentive grants under section
5. The commissioner may use up to 6.5
percent of this appropriation for costs incurred
to administer the program. Notwithstanding
Minnesota Statutes, section 16A.28, any
unencumbered balance does not cancel at the
end of the first year and is available in the
second year. This is a onetime appropriation.

(aa) $300,000 the first year and $300,000 the
second year are for transfer to the Board of
Regents of the University of Minnesota to
evaluate, propagate, and maintain the genetic
diversity of oilseeds, grains, grasses, legumes,
and other plants including flax, timothy,
barley, rye, triticale, alfalfa, orchard grass,
clover, and other species and varieties that
were in commercial distribution and use in
Minnesota before 1970, excluding wild rice.
This effort must also protect traditional seeds
brought to Minnesota by immigrant
communities. This appropriation includes
funding for associated extension and outreach
to small and Black, Indigenous, and People of
Color (BIPOC) farmers. This is a onetime
appropriation.

new text begin (bb) $300,000 the second year is to award and
administer beginning farmer equipment and
infrastructure grants under Minnesota Statutes,
section 17.055. This is a onetime
appropriation.
new text end

new text begin (cc) $25,000 the first year is for the credit
market report. Notwithstanding Minnesota
Statutes, section 16A.28, any unencumbered
balance does not cancel at the end of the first
year and is available in the second year. This
is a onetime appropriation.
new text end

deleted text begin (bb) deleted text end new text begin (dd) new text end The commissioner shall continue to
increase connections with ethnic minority and
immigrant farmers to farming opportunities
and farming programs throughout the state.

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.

Laws 2023, chapter 43, article 1, section 4, is amended to read:

Sec. 4. AGRICULTURAL UTILIZATION RESEARCH INSTITUTE

$

deleted text begin 6,143,000 deleted text end new text begin 6,368,000 new text end

$

4,343,000

(a) $300,000 the first year is for equipment
upgrades, equipment replacement, installation
expenses, and laboratory infrastructure at the
Agricultural Utilization Research Institute's
laboratories in the cities of Crookston,
Marshall, and Waseca.

(b) $1,500,000 the first year is to replace
analytical and processing equipment and make
corresponding facility upgrades at Agricultural
Utilization Research Institute facilities in the
cities of Marshall, Crookston, and Waseca. Of
this amount, up to $500,000 may be used for
renewable natural gas and anaerobic digestion
projects. This is a onetime appropriation and
is available until June 30, 2026.

(c) $300,000 the first year and $300,000 the
second year are to maintain the current level
of service delivery.

new text begin (d) $225,000 the first year is to support food
businesses. This is a onetime appropriation
and is available until June 30, 2026.
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 2

AGRICULTURE POLICY

Section 1.

Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Approved agent" means a person authorized by the Department of Agriculture to
determine if crop or fence damage was caused by elk and to assign a monetary value to the
crop or fence damage.
new text end

new text begin (c) "Commissioner" means the commissioner of agriculture or the commissioner's
authorized representative.
new text end

new text begin (d) "Estimated value" means the current value of crops or fencing as determined by an
approved agent.
new text end

new text begin (e) "Owner" means an individual, firm, corporation, copartnership, or association with
an interest in crops or fencing damaged by elk.
new text end

Sec. 2.

Minnesota Statutes 2022, section 3.7371, subdivision 2, is amended to read:

Subd. 2.

Claim form new text begin and reporting new text end .

new text begin (a) new text end The owner must prepare a claim on forms
provided by the commissioner and available on the Department of deleted text begin Agriculture's deleted text end new text begin Agriculture new text end
website or by request from the commissioner. deleted text begin The claim form must be filed with the
commissioner.
deleted text end

new text begin (b) After discovering crop or fence damage suspected to be caused by elk, an owner
must promptly notify an approved agent of the damage. To submit a claim for crop or fence
damage caused by elk, an owner must complete the required portions of the claim form
provided by the commissioner. An owner who has submitted a claim must provide an
approved agent with all information required to investigate the crop or fence damage.
new text end

Sec. 3.

Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Investigation and crop valuation. new text end

new text begin (a) Upon receiving notification of crop or
fence damage suspected to be caused by elk, an approved agent must promptly investigate
the damage in a timely manner. An approved agent must make written findings on the claim
form regarding whether the crop or fence was destroyed or damaged by elk. The approved
agent's findings must be based on physical and circumstantial evidence, including:
new text end

new text begin (1) the condition of the crop or fence;
new text end

new text begin (2) the presence of elk tracks;
new text end

new text begin (3) the geographic area of the state where the crop or fence damage occurred;
new text end

new text begin (4) any sightings of elk in the area; and
new text end

new text begin (5) any other circumstances that the approved agent considers to be relevant.
new text end

new text begin (b) The absence of affirmative evidence may be grounds for denial of a claim.
new text end

new text begin (c) On a claim form, an approved agent must make written findings of the extent of crop
or fence damage and, if applicable, the amount of crop destroyed.
new text end

new text begin (d) For damage to standing crops, an owner may choose to have the approved agent use
the method in clause (1) or (2) to complete the claim form and determine the amount of
crop loss:
new text end

new text begin (1) to submit a claim form to the commissioner at the time that the suspected elk damage
is discovered, the approved agent must record on the claim form: (i) the field's potential
yield per acre; (ii) the field's average yield per acre that is expected on the damaged acres;
(iii) the estimated value of the crop; and (iv) the total amount of loss. Upon completing the
claim form, the approved agent must submit the form to the commissioner; or
new text end

new text begin (2) to submit a claim form to the commissioner at the time that the crop is harvested,
the approved agent must record on the claim form at the time of the investigation: (i) the
percent of crop loss from damage; (ii) the actual yield of the damaged field when the crop
is harvested; (iii) the estimated value of the crop; and (iv) the total amount of loss. Upon
completing the claim form, the approved agent must submit the form to the commissioner.
new text end

new text begin (e) For damage to stored crops, an approved agent must record on the claim form: (1)
the type and volume of destroyed stored crops; (2) the estimated value of the crop; and (3)
the total amount of loss.
new text end

new text begin (f) For damage to fencing, an approved agent must record on the claim form: (1) the
type of materials damaged; (2) the linear feet of the damage; (3) the value of the materials
per unit according to National Resource Conservation Service specifications; and (4) the
calculated total damage to the fence.
new text end

Sec. 4.

Minnesota Statutes 2022, section 3.7371, is amended by adding a subdivision to
read:

new text begin Subd. 2b. new text end

new text begin Claim form. new text end

new text begin A completed claim form must be signed by the owner and an
approved agent. An approved agent must submit the claim form to the commissioner for
the commissioner's review and payment. The commissioner must return an incomplete claim
form to the approved agent. When returning an incomplete claim form to an approved agent,
the commissioner must indicate which information is missing from the claim form.
new text end

Sec. 5.

Minnesota Statutes 2022, section 3.7371, subdivision 3, is amended to read:

Subd. 3.

Compensation.

(a) deleted text begin The crop deleted text end new text begin An new text end owner is entitled to the deleted text begin target price or the
market price, whichever is greater, deleted text end new text begin estimated value new text end of the damaged or destroyed crop deleted text begin plus
adjustments for yield loss determined according to agricultural stabilization and conservation
service programs for individual farms, adjusted annually, as determined by the commissioner,
upon recommendation of the commissioner's approved agent for the owner's county deleted text end new text begin or
fence new text end . Verification of new text begin crop or new text end fence damage deleted text begin or destruction deleted text end by elk may be provided by
submitting photographs or other evidence and documentation deleted text begin together with a statement
from an independent witness deleted text end using forms prescribed by the commissioner. The commissioner,
upon recommendation of the commissioner's approved agent, shall determine whether the
crop damage or destruction or damage to or destruction of a fence surrounding a crop or
pasture is caused by elk and, if so, the amount of the crop or fence that is damaged or
destroyed. In any fiscal year, an owner may not be compensated for a damaged or destroyed
crop or fence surrounding a crop or pasture that is less than $100 in value and may be
compensated up to $20,000, as determined under this section deleted text begin , if normal harvest procedures
for the area are followed deleted text end . new text begin An owner may not be compensated more than $1,800 per fiscal
year for damage to fencing surrounding a crop or pasture.
new text end

(b) In any fiscal year, the commissioner may provide compensation for claims filed
under this section up to the amount expressly appropriated for this purpose.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 17.055, subdivision 3, is amended
to read:

Subd. 3.

Beginning farmer equipment and infrastructure grants.

(a) The commissioner
may award and administer equipment and infrastructure grants to beginning farmers. The
commissioner shall give preference to applicants who are deleted text begin emerging farmers deleted text end new text begin experiencing
limited land access or limited market access new text end as new text begin those terms are new text end defined in new text begin section 17.133,
new text end subdivision 1. Grant money may be used for equipment and infrastructure development.

(b) The commissioner shall develop competitive eligibility criteria and may allocate
grants on a needs basis.

(c) Grant projects may continue for up to two years.

Sec. 7.

Minnesota Statutes 2022, section 17.116, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

(a) Grants may deleted text begin only deleted text end be made to farmers deleted text begin , deleted text end new text begin and organizations such as
farms, agricultural cooperatives, new text end educational institutions, individuals at educational
institutions, deleted text begin or deleted text end nonprofit organizations new text begin , Tribal governments, or local units of government new text end
residing or located in the state for research or demonstrations on farms in the state.

(b) Grants may only be made for projects that show:

(1) the ability to maximize direct or indirect energy savings or production;

(2) a positive effect or reduced adverse effect on the environment; or

(3) increased profitability for the individual farm by reducing costs or improving
marketing opportunities.

Sec. 8.

Minnesota Statutes 2022, section 17.133, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Eligible farmer" means an individual who at the time that the grant is awarded:

(1) is a resident of Minnesota who intends to acquire farmland located within the state
and provide the majority of the day-to-day physical labor and management of the farm;

(2) grosses no more than $250,000 per year from the sale of farm products; deleted text begin and
deleted text end

(3) has not, and whose spouse has not, at any time had a direct or indirect ownership
interest in farmland new text begin ; and
new text end

new text begin (4) is not, and whose spouse is not, related by blood or marriage to an owner of the
farmland that the individual intends to acquire new text end .

(c) "Farm down payment" means an initial, partial payment required by a lender or seller
to purchase farmland.

new text begin (d) "Incubator farm" means a farm where:
new text end

new text begin (1) individuals are given temporary, exclusive, and affordable access to small parcels
of land, infrastructure, and often training, for the purpose of honing skills and launching a
farm business; and
new text end

new text begin (2) a majority of the individuals farming the small parcels of land grow industrial hemp,
cannabis, or one or more of the following specialty crops as defined by the United States
Department of Agriculture for purposes of the specialty crop block grant program: fruits
and vegetables, tree nuts, dried fruits, medicinal plants, culinary herbs and spices, horticulture
crops, floriculture crops, and nursery crops.
new text end

new text begin (e) "Limited land access" means farming without ownership of land and:
new text end

new text begin (1) the individual or the individual's child rents or leases the land, with the term of each
rental or lease agreement not exceeding three years in duration, from a person who is not
related to the individual or the individual's spouse by blood or marriage; or
new text end

new text begin (2) the individual rents the land from an incubator farm.
new text end

new text begin (f) "Limited market access" means the individual has gross sales of no more than
$100,000 per year from the sale of farm products.
new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 17.133, subdivision 3, is amended
to read:

Subd. 3.

Report to legislature.

No later than December 1, 2023, and annually thereafter,
the commissioner must provide a report to the chairs and ranking minority members of the
legislative committees having jurisdiction over agriculture and rural development, in
compliance with sections 3.195 and 3.197, on the farm down payment assistance grants
under this section. The report must include:

(1) background information on beginning farmers in Minnesota and any other information
that the commissioner and authority find relevant to evaluating the effect of the grants on
increasing opportunities for and the number of beginning farmers;

(2) the number and amount of grants;

(3) the geographic distribution of grants by county;

(4) the number of grant recipients who are emerging farmers;

new text begin (5) the number of grant recipients who were experiencing limited land access or limited
market access when the grant was awarded;
new text end

deleted text begin (5) deleted text end new text begin (6) new text end disaggregated data regarding the gender, race, and ethnicity of grant recipients;

deleted text begin (6) deleted text end new text begin (7) new text end the number of farmers who cease to own land and are subject to payment of a
penalty, along with the reasons for the land ownership cessation; and

deleted text begin (7) deleted text end new text begin (8) new text end the number and amount of grant applications that exceeded the allocation available
in each year.

Sec. 10.

Minnesota Statutes 2023 Supplement, section 17.134, subdivision 3, is amended
to read:

Subd. 3.

Grant eligibility.

Any owner or lessee of farmland may apply for a grant under
this section. The commissioner must give preference to owners and lessees that have not
previously implemented an eligible project new text begin and owners and lessees that are certified or
assessed and pursuing certification under sections 17.9891 to 17.993 new text end . Local government
units, including cities; towns; counties; soil and water conservation districts; Minnesota
Tribal governments as defined in section 10.65; and joint powers boards, are also eligible
for a grant. A local government unit that receives a grant for equipment or technology must
make those purchases available for use by the public.

Sec. 11.

Minnesota Statutes 2023 Supplement, section 17.134, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Equipment sales limitation. new text end

new text begin In addition to the applicable grants management
requirements imposed under sections 16B.97 to 16B.991, an owner or lessee that receives
a grant under this section to purchase equipment must certify to the commissioner that the
owner or lessee will not sell the equipment for at least ten years.
new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 17.710, is amended to read:

17.710 AGRICULTURAL CONTRACTS.

(a) A production new text begin or marketing new text end contract entered into, renewed, or amended on or after
July 1, deleted text begin 1999 deleted text end new text begin 2024 new text end , between an agricultural producer and a processor new text begin , marketer, or other
purchaser new text end of agricultural products new text begin , including a cooperative organized under chapter 308A
or 308B new text end must not contain provisions that prohibit the producer from disclosing terms,
conditions, and prices contained in the contract. Any provision prohibiting disclosure by
the producer is void.

(b) A contract entered into, renewed, or amended on or after July 1, 2023, between an
agricultural producer and an entity buying, selling, certifying, or otherwise participating in
a market for stored carbon must not contain provisions that prohibit the producer from
disclosing terms, conditions, and prices contained in the contract. Any provision prohibiting
disclosure by the producer is void.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 13.

Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to
read:

new text begin Subd. 1d. new text end

new text begin Application or use of a pesticide. new text end

new text begin "Application or use of a pesticide" includes:
new text end

new text begin (1) the dispersal of a pesticide on, in, at, or directed toward a target site;
new text end

new text begin (2) preapplication activities that involve the mixing and loading of a restricted use
pesticide; and
new text end

new text begin (3) other restricted use pesticide-related activities, including but not limited to transporting
or storing pesticide containers that have been opened; cleaning equipment; and disposing
of excess pesticides, spray mix, equipment wash waters, pesticide containers, and other
materials that contain pesticide.
new text end

Sec. 14.

Minnesota Statutes 2022, section 18B.26, subdivision 6, is amended to read:

Subd. 6.

Discontinuance new text begin or cancellation new text end of registration.

new text begin (a) new text end To ensure new text begin the new text end complete
withdrawal from distribution or further use of a pesticide, a person who intends to discontinue
a pesticide registration must:

(1) terminate a further distribution within the state and continue to register the pesticide
annually for two successive years; new text begin and
new text end

(2) initiate and complete a total recall of the pesticide from all distribution in the state
within 60 days from the date of notification to the commissioner of intent to discontinue
registration deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (3) submit to the commissioner evidence adequate to document that no distribution of
the registered pesticide has occurred in the state.
deleted text end

new text begin (b) Upon the request of a registrant, the commissioner may immediately cancel
registration of a pesticide product. The commissioner may immediately cancel registration
of a pesticide product at the commissioner's discretion. When requesting that the
commissioner immediately cancel registration of a pesticide product, a registrant must
provide the commissioner with:
new text end

new text begin (1) a statement that the pesticide product is no longer in distribution; and
new text end

new text begin (2) documentation of pesticide gross sales from the previous year supporting the statement
under clause (1).
new text end

Sec. 15.

Minnesota Statutes 2022, section 18B.28, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Advisory panel. new text end

new text begin Before approving the issuance of an experimental use pesticide
product registration under this section, the commissioner must convene and consider the
advice of a panel of outside scientific and health experts. The panel must include but is not
limited to representatives of the Department of Health, the Department of Natural Resources,
the Pollution Control Agency, and the University of Minnesota.
new text end

Sec. 16.

Minnesota Statutes 2022, section 18B.305, subdivision 2, is amended to read:

Subd. 2.

Training manual and examination development.

The commissioner, in
consultation with University of Minnesota Extension and other higher education institutions,
shall continually revise and update pesticide applicator training manuals and examinations.
The manuals and examinations must be written to meet or exceed the minimum new text begin competency
new text end standards required by the United States Environmental Protection Agency and pertinent
state specific information. new text begin Pesticide applicator training manuals and examinations must
meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171.
Competency standards for training manuals and examinations must be published on the
Department of Agriculture website. new text end Questions in the examinations must be determined by
the commissioner in consultation with other responsible agencies. Manuals and examinations
must include pesticide management practices that discuss prevention of pesticide occurrence
in groundwater and surface water of the state, and economic thresholds and guidance for
insecticide use.

Sec. 17.

Minnesota Statutes 2022, section 18B.32, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not engage in structural pest control
applications:

(1) for hire without a structural pest control license; deleted text begin and
deleted text end

(2) as a sole proprietorship, company, partnership, or corporation unless the person is
or employs a licensed master in structural pest control operations deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) unless the person is 18 years of age or older.
new text end

(b) A structural pest control licensee must have a valid license identification card to
purchase a restricted use pesticide or apply pesticides for hire and must display it upon
demand by an authorized representative of the commissioner or a law enforcement officer.
The license identification card must contain information required by the commissioner.

Sec. 18.

Minnesota Statutes 2022, section 18B.32, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) A person must apply to the commissioner for a structural pest
control license on forms and in the manner required by the commissioner. The commissioner
shall require the applicant to pass a written, closed-book, monitored examination or oral
examination, or both deleted text begin , and may also require a practical demonstration regarding structural
pest control deleted text end . The commissioner shall establish the examination procedure, including the
phases and contents of the examination.

(b) The commissioner may license a person as a master under a structural pest control
license if the person has the necessary qualifications through knowledge and experience to
properly plan, determine, and supervise the selection and application of pesticides in structural
pest control. To demonstrate the qualifications and become licensed as a master under a
structural pest control license, a person must:

(1) pass a closed-book test administered by the commissioner;

(2) have direct experience as a licensed journeyman under a structural pest control license
for at least two years by this state or a state with equivalent certification requirements or as
a full-time licensed master in another state with equivalent certification requirements; and

(3) show practical knowledge and field experience under clause (2) in the actual selection
and application of pesticides under varying conditions.

(c) The commissioner may license a person as a journeyman under a structural pest
control license if the person:

(1) has the necessary qualifications in the practical selection and application of pesticides;

(2) has passed a closed-book examination given by the commissioner; and

(3) is engaged as an employee of or is working under the direction of a person licensed
as a master under a structural pest control license.

(d) The commissioner may license a person as a fumigator under a structural pest control
license if the person:

(1) has knowledge of the practical selection and application of fumigants;

(2) has passed a closed-book examination given by the commissioner; and

(3) is licensed by the commissioner as a master or journeyman under a structural pest
control license.

Sec. 19.

Minnesota Statutes 2022, section 18B.32, subdivision 4, is amended to read:

Subd. 4.

Renewal.

(a) new text begin An applicator may apply to renew new text end a structural pest control
applicator license deleted text begin may be renewed deleted text end on or before the expiration of an existing license subject
to reexamination, attendance at deleted text begin workshops deleted text end new text begin a recertification workshop new text end approved by the
commissioner, or other requirements imposed by the commissioner to provide the applicator
with information regarding changing technology and to help assure a continuing level of
competency and ability to use pesticides safely and properly. new text begin A recertification workshop
must meet or exceed the competency standards in Code of Federal Regulations, title 40,
part 171. Competency standards for a recertification workshop must be published on the
Department of Agriculture website. If the commissioner requires an applicator to attend a
recertification workshop and the applicator fails to attend the workshop, the commissioner
may require the applicator to pass a reexamination. new text end The commissioner may require an
additional demonstration of applicator qualification if the applicator has had a license
suspended or revoked or has otherwise had a history of violations of this chapter.

(b) If deleted text begin a person deleted text end new text begin an applicator new text end fails to renew a structural pest control license within three
months of its expiration, the deleted text begin person deleted text end new text begin applicator new text end must obtain a structural pest control license
subject to the requirements, procedures, and fees required for an initial license.

Sec. 20.

Minnesota Statutes 2022, section 18B.32, subdivision 5, is amended to read:

Subd. 5.

Financial responsibility.

(a) deleted text begin A structural pest control license may not be issued
unless the applicant furnishes proof of financial responsibility. deleted text end The new text begin commissioner may
suspend or revoke a structural pest control license if an applicator fails to provide proof of
financial responsibility upon the commissioner's request. new text end Financial responsibility may be
demonstrated by:

(1) proof of net assets equal to or greater than $50,000; or

(2) a performance bond or insurance of a kind and in an amount determined by the
commissioner.

(b) The bond or insurance must cover a period of time at least equal to the term of the
deleted text begin applicant's deleted text end new text begin applicator's new text end license. The commissioner must immediately suspend the license
of deleted text begin a person deleted text end new text begin an applicator new text end who fails to maintain the required bond or insurance. The
performance bond or insurance policy must contain a provision requiring the insurance or
bonding company to notify the commissioner by ten days before the effective date of
cancellation, termination, or any other change of the bond or insurance. If there is recovery
against the bond or insurance, additional coverage must be secured new text begin by the applicator new text end to
maintain financial responsibility equal to the original amount required.

(c) An employee of a licensed person is not required to maintain an insurance policy or
bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under the provisions of this
section must be accompanied by proof of satisfaction of judgments previously rendered.

Sec. 21.

Minnesota Statutes 2022, section 18B.33, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) A person may not apply a pesticide for hire without a
commercial applicator license for the appropriate use categories or a structural pest control
license.

(b) A commercial applicator licensee must have a valid license identification card to
purchase a restricted use pesticide or apply pesticides for hire and must display it upon
demand by an authorized representative of the commissioner or a law enforcement officer.
The commissioner shall prescribe the information required on the license identification
card.

(c) A person licensed under this section is considered qualified and is not required to
verify, document, or otherwise prove a particular need prior to use, except as required by
the federal label.

(d) A person who uses a general-use sanitizer or disinfectant for hire in response to
COVID-19 is exempt from the commercial applicator license requirements under this section.

new text begin (e) A person licensed under this section must be 18 years of age or older.
new text end

Sec. 22.

Minnesota Statutes 2022, section 18B.33, subdivision 5, is amended to read:

Subd. 5.

Renewal application.

(a) deleted text begin A person deleted text end new text begin An applicator new text end must apply to the
commissioner to renew a commercial applicator license. The commissioner may renew a
commercial applicator license accompanied by the application fee, subject to reexamination,
attendance at deleted text begin workshops deleted text end new text begin a recertification workshop new text end approved by the commissioner, or other
requirements imposed by the commissioner to provide the applicator with information
regarding changing technology and to help assure a continuing level of competence and
ability to use pesticides safely and properly. deleted text begin The applicant deleted text end new text begin A recertification workshop must
meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171.
Competency standards for a recertification workshop must be published on the Department
of Agriculture website. Upon the receipt of an applicator's renewal application, the
commissioner may require the applicator to attend a recertification workshop. Depending
on the application category, the commissioner may require an applicator to complete a
recertification workshop once per year, once every two years, or once every three years. If
the commissioner requires an applicator to attend a recertification workshop and the
applicator fails to attend the workshop, the commissioner may require the applicator to pass
a reexamination. An applicator new text end may renew a commercial applicator license within 12 months
after expiration of the license without having to meet initial testing requirements. The
commissioner may require new text begin an new text end additional demonstration of applicator qualification if deleted text begin a person deleted text end new text begin
the applicator new text end has had a license suspended or revoked or has had a history of violations of
this chapter.

(b) An deleted text begin applicant deleted text end new text begin applicator new text end that meets renewal requirements by reexamination instead
of attending deleted text begin workshops deleted text end new text begin a recertification workshop new text end must pay the equivalent workshop fee
for the reexamination as determined by the commissioner.

Sec. 23.

Minnesota Statutes 2022, section 18B.33, subdivision 6, is amended to read:

Subd. 6.

Financial responsibility.

(a) deleted text begin A commercial applicator license may not be issued
unless the applicant furnishes proof of financial responsibility. deleted text end The new text begin commissioner may
suspend or revoke an applicator's commercial applicator license if the applicator fails to
provide proof of financial responsibility upon the commissioner's request. new text end Financial
responsibility may be demonstrated by: (1) proof of net assets equal to or greater than
$50,000; or (2) by a performance bond or insurance of the kind and in an amount determined
by the commissioner.

(b) The bond or insurance must cover a period of time at least equal to the term of the
deleted text begin applicant's deleted text end new text begin applicator's new text end license. The commissioner must immediately suspend the license
of deleted text begin a person deleted text end new text begin an applicator new text end who fails to maintain the required bond or insurance. The
performance bond or insurance policy must contain a provision requiring the insurance or
bonding company to notify the commissioner by ten days before the effective date of
cancellation, termination, or any other change of the bond or insurance. If there is recovery
against the bond or insurance, additional coverage must be secured new text begin by the applicator new text end to
maintain financial responsibility equal to the original amount required.

(c) An employee of a licensed deleted text begin person deleted text end new text begin applicator new text end is not required to maintain an insurance
policy or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under the provisions of this
section must be accompanied by proof of satisfaction of judgments previously rendered.

Sec. 24.

Minnesota Statutes 2022, section 18B.34, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial applicator, certified
private applicator, or licensed structural pest control applicator, a person, including a
government employee, may not purchase or use a restricted use pesticide in performance
of official duties without having a noncommercial applicator license for an appropriate use
category.

(b) A licensee must have a valid license identification card when applying pesticides
and must display it upon demand by an authorized representative of the commissioner or a
law enforcement officer. The license identification card must contain information required
by the commissioner.

(c) A person licensed under this section is considered qualified and is not required to
verify, document, or otherwise prove a particular need prior to use, except as required by
the federal label.

new text begin (d) A person licensed under this section must be 18 years of age or older.
new text end

Sec. 25.

Minnesota Statutes 2022, section 18B.34, subdivision 4, is amended to read:

Subd. 4.

Renewal.

(a) deleted text begin A person deleted text end new text begin An applicator new text end must apply to the commissioner to renew
a noncommercial applicator license. The commissioner may renew a license subject to
reexamination, attendance at deleted text begin workshops deleted text end new text begin a recertification workshop new text end approved by the
commissioner, or other requirements imposed by the commissioner to provide the applicator
with information regarding changing technology and to help assure a continuing level of
competence and ability to use pesticides safely and properly. new text begin A recertification workshop
must meet or exceed the competency standards in Code of Federal Regulations, title 40,
part 171. Competency standards for a recertification website must be published on the
Department of Agriculture website. Upon the receipt of an applicator's renewal application,
the commissioner may require the applicator to attend a recertification workshop. Depending
on the application category, the commissioner may require an applicator to complete a
recertification workshop once per year, once every two years, or once every three years. If
the commissioner requires an applicator to attend a recertification workshop and the
applicator fails to attend the workshop, the commissioner may require the applicator to pass
a reexamination. new text end The commissioner may require an additional demonstration of applicator
qualification if the applicator has had a license suspended or revoked or has otherwise had
a history of violations of this chapter.

(b) An deleted text begin applicant deleted text end new text begin applicator new text end that meets renewal requirements by reexamination instead
of attending deleted text begin workshops deleted text end new text begin a recertification workshop new text end must pay the equivalent workshop fee
for the reexamination as determined by the commissioner.

(c) An deleted text begin applicant deleted text end new text begin applicator new text end has 12 months to renew the license after expiration without
having to meet initial testing requirements.

Sec. 26.

Minnesota Statutes 2022, section 18B.35, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

(a) The commissioner may establish categories of
structural pest control, commercial applicator, deleted text begin and deleted text end noncommercial applicator licenses deleted text begin for
administering and enforcing this chapter. deleted text end new text begin , and private applicator certification consistent
with federal requirements in Code of Federal Regulations, title 40, sections 171.101 and
171.105, including but not limited to the federal categories that are applicable to the state.
Application categories must meet or exceed the competency standards in Code of Federal
Regulations, title 40, part 171. Competency standards for application categories must be
published on the Department of Agriculture website. new text end The categories may include pest control
operators and ornamental, agricultural, aquatic, forest, and right-of-way pesticide applicators.
Separate subclassifications of categories may be specified as to ground, aerial, or manual
methods to apply pesticides or to the use of pesticides to control insects, plant diseases,
rodents, or weeds.

(b) Each category is subject to separate testing procedures and requirements.

Sec. 27.

Minnesota Statutes 2022, section 18B.36, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Except for a licensed commercial or noncommercial
applicator, only a certified private applicator may use a restricted use pesticide to produce
an agricultural commodity:

(1) as a traditional exchange of services without financial compensation;

(2) on a site owned, rented, or managed by the person or the person's employees; or

(3) when the private applicator is one of two or fewer employees and the owner or
operator is a certified private applicator or is licensed as a noncommercial applicator.

(b) A person may not purchase a restricted use pesticide without presenting a license
card, certified private applicator card, or the card number.

(c) A person certified under this section is considered qualified and is not required to
verify, document, or otherwise prove a particular need prior to use, except as required by
the federal label.

new text begin (d) A person certified under this section must be 18 years of age or older.
new text end

Sec. 28.

Minnesota Statutes 2022, section 18B.36, subdivision 2, is amended to read:

Subd. 2.

Certification.

(a) The commissioner shall prescribe certification requirements
and provide training that meets or exceeds United States Environmental Protection Agency
standards to certify private applicators and provide information relating to changing
technology to help ensure a continuing level of competency and ability to use pesticides
properly and safely. new text begin Private applicator certification requirements and training must meet or
exceed the competency standards in Code of Federal Regulations, title 40, part 171.
Competency standards for private applicator certification and training must be published
on the Department of Agriculture website. new text end The training may be done through cooperation
with other government agencies and must be a minimum of three hours in duration.

(b) A person must apply to the commissioner for certification as a private applicator.
After completing the certification requirements, which must include deleted text begin an deleted text end new text begin a proctored new text end
examination as determined by the commissioner, an applicant must be certified as a private
applicator to use restricted use pesticides. The certification shall expire March 1 of the third
calendar year after the initial year of certification.

(c) The commissioner shall issue a private applicator card to a private applicator.

Sec. 29.

Minnesota Statutes 2022, section 18B.37, subdivision 2, is amended to read:

Subd. 2.

Commercial and noncommercial applicators.

(a) A commercial or
noncommercial applicator deleted text begin , deleted text end or the applicator's authorized agent deleted text begin , deleted text end must maintain a record of
pesticides used on each site. Noncommercial applicators must keep records of restricted
use pesticides. The record must include the:

(1) date of the pesticide use;

(2) time the pesticide application was completed;

(3) brand name of the pesticide, the United States Environmental Protection Agency
registration number, and rate used;

(4) number of units treated;

(5) temperature, wind speed, and wind direction;

(6) location of the site where the pesticide was applied;

(7) name and address of the customer;

(8) name of applicator, name of company, license number of applicator, and address of
applicator company; and

(9) any other information required by the commissioner.

(b) Portions of records not relevant to a specific type of application may be omitted upon
approval from the commissioner.

(c) All information for this record requirement must be contained in a document for each
pesticide application, except a map may be attached to identify treated areas. An invoice
containing the required information may constitute the required record. The commissioner
shall make sample forms available to meet the requirements of this paragraph.

(d) The record must be completed no later than five days after the application of the
pesticide.

(e) A commercial applicator must give a copy of the record to the customer.

(f) Records must be retained by the applicator, company, or authorized agent for five
years after the date of treatment.

new text begin (g) A record of a commercial or noncommercial applicator must meet or exceed the
requirements in Code of Federal Regulations, title 40, part 171.
new text end

Sec. 30.

Minnesota Statutes 2022, section 18B.37, subdivision 3, is amended to read:

Subd. 3.

Structural pest control applicators.

(a) A structural pest control applicator
must maintain a record of each structural pest control application conducted by that person
or by the person's employees. The record must include the:

(1) date of structural pest control application;

(2) target pest;

(3) brand name of the pesticide, United States Environmental Protection Agency
registration number, and amount used;

(4) for fumigation, the temperature and exposure time;

(5) time the pesticide application was completed;

(6) name and address of the customer;

(7) name of structural pest control applicator, name of company and address of applicator
or company, and license number of applicator; and

(8) any other information required by the commissioner.

(b) All information for this record requirement must be contained in a document for
each pesticide application. An invoice containing the required information may constitute
the record.

(c) The record must be completed no later than five days after the application of the
pesticide.

(d) Records must be retained for five years after the date of treatment.

(e) A copy of the record must be given to a person who ordered the application that is
present at the site where the structural pest control application is conducted, placed in a
conspicuous location at the site where the structural pest control application is conducted
immediately after the application of the pesticides, or delivered to the person who ordered
an application or the owner of the site. The commissioner must make sample forms available
that meet the requirements of this subdivision.

(f) A structural applicator must post in a conspicuous place inside a renter's apartment
where a pesticide application has occurred a list of postapplication precautions contained
on the label of the pesticide that was applied in the apartment and any other information
required by the commissioner.

new text begin (g) A record of a structural applicator must meet or exceed the requirements in Code of
Federal Regulations, title 40, part 171.
new text end

Sec. 31.

Minnesota Statutes 2022, section 18C.005, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Beneficial substance. new text end

new text begin "Beneficial substance" means any substance or
compound other than a primary, secondary, and micro plant nutrient, and excluding
pesticides, that can be demonstrated by scientific research to be beneficial to one or more
species of plants, soil, or media.
new text end

Sec. 32.

Minnesota Statutes 2022, section 18C.005, subdivision 33, is amended to read:

Subd. 33.

Soil amendment.

"Soil amendment" means a substance intended to improve
the structural, physical, new text begin chemical, biochemical, new text end or biological characteristics of the soil or
modify organic matter at or near the soil surface, except fertilizers, agricultural liming
materials, pesticides, and other materials exempted by the commissioner's rules.

Sec. 33.

Minnesota Statutes 2022, section 18C.115, subdivision 2, is amended to read:

Subd. 2.

Adoption of national standards.

Applicable national standards contained in
the deleted text begin 1996 official publication, number 49, deleted text end new text begin most recently published version of the official
publication new text end of the Association of American Plant Food Control Officials including the rules
and regulations, statements of uniform interpretation and policy, and the official fertilizer
terms and definitions, and not otherwise adopted by the commissioner, may be adopted as
fertilizer rules of this state.

Sec. 34.

Minnesota Statutes 2022, section 18C.215, subdivision 1, is amended to read:

Subdivision 1.

Packaged fertilizers.

(a) A person may not sell or distribute specialty
fertilizer in bags or other containers in this state unless a label is placed on or affixed to the
bag or container stating in a clear, legible, and conspicuous form the following information:

(1) the net weight new text begin and volume, if applicable new text end ;

(2) the brand and grade, except the grade is not required if primary nutrients are not
claimed;

(3) the guaranteed analysis;

(4) the name and address of the guarantor;

(5) directions for use, except directions for use are not required for custom blend specialty
fertilizers; and

(6) a derivatives statement.

(b) A person may not sell or distribute fertilizer for agricultural purposes in bags or other
containers in this state unless a label is placed on or affixed to the bag or container stating
in a clear, legible, and conspicuous form the information listed in paragraph (a), clauses (1)
to (4), except:

(1) the grade is not required if primary nutrients are not claimed; and

(2) the grade on the label is optional if the fertilizer is used only for agricultural purposes
and the guaranteed analysis statement is shown in the complete form as in section 18C.211.

(c) The labeled information must appear:

(1) on the front or back side of the container;

(2) on the upper one-third of the side of the container;

(3) on the upper end of the container; or

(4) printed on a tag affixed to the upper end of the container.

(d) If a person sells a custom blend specialty fertilizer in bags or other containers, the
information required in paragraph (a) must either be affixed to the bag or container as
required in paragraph (c) or be furnished to the customer on an invoice or delivery ticket
in written or printed form.

Sec. 35.

Minnesota Statutes 2022, section 18C.221, is amended to read:

18C.221 FERTILIZER PLANT FOOD CONTENT.

(a) Products that are deficient in plant food content are subject to this subdivision.

(b) An analysis must show that a fertilizer is deficient:

(1) in one or more of its guaranteed primary plant nutrients beyond the investigational
allowances and compensations as established by regulation; or

(2) if the overall index value of the fertilizer is shown below the level established by
rule.

(c) A deficiency in an official sample of mixed fertilizer resulting from nonuniformity
is not distinguishable from a deficiency due to actual plant nutrient shortage and is properly
subject to official action.

(d) For the purpose of determining the commercial index value to be applied, the
commissioner shall determine at least annually the values per unit of nitrogen, available
deleted text begin phosphoric acid deleted text end new text begin phosphate new text end , and soluble potash in fertilizers in this state.

(e) If a fertilizer in the possession of the consumer is found by the commissioner to be
short in weight, the registrant or licensee of the fertilizer must submit a penalty payment of
two times the value of the actual shortage to the consumer within 30 days after official
notice from the commissioner.

Sec. 36.

Minnesota Statutes 2023 Supplement, section 18C.425, subdivision 6, is amended
to read:

Subd. 6.

Payment of inspection fee.

(a) The person who registers and distributes in the
state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall
pay the inspection fee to the commissioner.

(b) The person licensed under section 18C.415 who distributes a fertilizer to a person
not required to be so licensed shall pay the inspection fee to the commissioner, except as
exempted under section 18C.421, subdivision 1, paragraph (b).

(c) The person responsible for payment of the inspection fees for fertilizers, soil
amendments, or plant amendments sold and used in this state must pay the inspection fee
set under paragraph (e), and until June 30, deleted text begin 2024 deleted text end new text begin 2029 new text end , an additional 40 cents per ton, of
fertilizer, soil amendment, and plant amendment sold or distributed in this state, with a
minimum of $10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner
must deposit all revenue from the additional 40 cents per ton fee in the agricultural fertilizer
research and education account in section 18C.80. Products sold or distributed to
manufacturers or exchanged between them are exempt from the inspection fee imposed by
this subdivision if the products are used exclusively for manufacturing purposes.

(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant
amendment, or soil amendment distribution amounts and inspection fees paid for a period
of three years.

(e) By commissioner's order, the commissioner must set the inspection fee at no less
than 39 cents per ton and no more than 70 cents per ton. The commissioner must hold a
public meeting before increasing the fee by more than five cents per ton.

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

Minnesota Statutes 2022, section 18C.70, subdivision 1, is amended to read:

Subdivision 1.

Establishment; membership.

(a) The Minnesota Agricultural Fertilizer
Research and Education Council is established. The council is composed of deleted text begin 12 deleted text end new text begin 15 new text end voting
members as follows:

(1) deleted text begin two members deleted text end new text begin one member new text end of the Minnesota Crop Production Retailers;

(2) one member of the Minnesota Corn Growers Association;

(3) one member of the Minnesota Soybean Growers Association;

(4) one member of the sugar beet growers industry;

(5) one member of the Minnesota Association of Wheat Growers;

(6) one member of the potato growers industry;

(7) one member of the Minnesota Farm Bureau;

(8) one member of the Minnesota Farmers Union;

(9) one member from the Minnesota Irrigators Association;

(10) one member of the Minnesota Grain and Feed Association; deleted text begin and
deleted text end

(11) one member of the Minnesota Independent Crop Consultant Association or the
Minnesota certified crop advisor program new text begin ;
new text end

new text begin (12) one member representing the Minnesota Institute for Sustainable Agriculture;
new text end

new text begin (13) one member of the Minnesota Soil Health Coalition;
new text end

new text begin (14) one member who is an expert in public health; and
new text end

new text begin (15) one member who is an expert in water quality and has performed scientific research
on water issues new text end .

(b) Council members shall serve three-year terms. After the initial council is appointed,
subsequent appointments must be staggered so that one-third of council membership is
replaced each year. Council members must be deleted text begin nominated by their organizations and deleted text end appointed
by the commissioner new text begin and, except for the members specified under paragraph (a), clauses
(14) and (15), nominated by their organizations new text end . The council may add ex officio members
at its discretion. The council must meet at least once per year, with all related expenses
reimbursed by members' sponsoring organizations or by the members themselves.

Sec. 38.

Minnesota Statutes 2022, section 18C.70, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This section expires June 30, deleted text begin 2025 deleted text end new text begin 2030 new text end .

Sec. 39.

Minnesota Statutes 2022, section 18C.71, subdivision 1, is amended to read:

Subdivision 1.

Eligible projects.

Eligible project activities include research, education,
and technology transfer related to the production and application of fertilizer, soil
amendments, and other plant amendments new text begin , regenerative agriculture, and the protection of
clean water new text end . Chosen projects must contain a component of outreach that achieves a timely
dissemination of findings and their applicability to the production agricultural community
or metropolitan fertilizer users.

Sec. 40.

Minnesota Statutes 2022, section 18C.71, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Priorities and guidance. new text end

new text begin The council must develop or update research priorities
and request guidance related to:
new text end

new text begin (1) the availability of nitrogen by manure type and livestock species based on
management; and
new text end

new text begin (2) manure management and fertilizer best management practices for areas where surface
water or groundwater are vulnerable to nitrate losses, including the adjustment of practices
based on vulnerability such as coarse textured soils, soils with shallow bedrock, and karst
geology.
new text end

Sec. 41.

Minnesota Statutes 2022, section 18C.71, subdivision 2, is amended to read:

Subd. 2.

Awarding grants.

Applications for program grants must be submitted in the
form prescribed by the Minnesota Agricultural Fertilizer Research and Education Council.
Applications must be submitted on or before the deadline prescribed by the council. All
applications are subject to a thorough in-state review by a peer committee established and
approved by the council. Each project meeting the basic qualifications is subject to a yes
or no vote by each council member. Projects chosen to receive funding must achieve an
affirmative vote from at least deleted text begin eight deleted text end new text begin ten new text end of the deleted text begin 12 deleted text end new text begin 15 new text end council members or two-thirds of voting
members present. Projects awarded program funds must submit an annual progress report
in the form prescribed by the council.

Sec. 42.

Minnesota Statutes 2022, section 18C.71, subdivision 4, is amended to read:

Subd. 4.

Expiration.

This section expires June 30, deleted text begin 2025 deleted text end new text begin 2030 new text end .

Sec. 43.

Minnesota Statutes 2022, section 18C.80, subdivision 2, is amended to read:

Subd. 2.

Expiration.

This section expires June 30, deleted text begin 2025 deleted text end new text begin 2030 new text end .

Sec. 44.

Minnesota Statutes 2022, section 18D.301, subdivision 1, is amended to read:

Subdivision 1.

Enforcement required.

(a) The commissioner shall enforce this chapter
and chapters 18B, 18C, and 18F.

(b) Violations of chapter 18B, 18C, or 18F or rules adopted under chapter 18B, 18C, or
18F new text begin , or section 103H.275, subdivision 2, new text end are a violation of this chapter.

(c) Upon the request of the commissioner, county attorneys, sheriffs, and other officers
having authority in the enforcement of the general criminal laws shall take action to the
extent of their authority necessary or proper for the enforcement of this chapter or special
orders, standards, stipulations, and agreements of the commissioner.

Sec. 45.

Minnesota Statutes 2023 Supplement, section 18K.06, is amended to read:

18K.06 RULEMAKING.

(a) The commissioner deleted text begin shall adopt rules governing the production, testing, processing,
and licensing of industrial hemp. Notwithstanding the two-year limitation for exempt rules
under section 14.388, subdivision 1, Minnesota Rules, chapter 1565, published in the State
Register on August 16, 2021, is effective until August 16, 2025, or until permanent rules
implementing chapter 18K are adopted, whichever occurs first deleted text end new text begin may adopt or amend rules
governing the production, testing, processing, and licensing of industrial hemp using the
procedure in section 14.386, paragraph (a). Section 14.386, paragraph (b), does not apply
to rules adopted or amended under this section new text end .

(b) Rules adopted under paragraph (a) must include but not be limited to provisions
governing:

(1) the supervision and inspection of industrial hemp during its growth and harvest;

(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;

(3) the use of background check results required under section 18K.04 to approve or
deny a license application; and

(4) any other provision or procedure necessary to carry out the purposes of this chapter.

(c) Rules issued under this section must be consistent with federal law regarding the
production, distribution, and sale of industrial hemp.

Sec. 46.

Minnesota Statutes 2022, section 28A.10, is amended to read:

28A.10 POSTING OF LICENSE; RULES.

All such licenses shall be issued for a period of one year and shall be posted or displayed
in a conspicuous place at the place of business so licensed. deleted text begin Except as provided in sections
29.22, subdivision 4 and 31.39, all such license fees and penalties collected by the
commissioner shall be deposited into the state treasury and credited to the general fund. deleted text end
The commissioner may adopt such rules in conformity with law as the commissioner deems
necessary to effectively and efficiently carry out the provisions of sections 28A.01 to 28A.16.

Sec. 47.

Minnesota Statutes 2022, section 28A.151, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Farmers' market" means an association of three or more persons who assemble at
a defined location that is open to the public for the purpose of selling deleted text begin directly to the consumer
the deleted text end products of a farm or garden occupied and cultivated by the person selling the product.

(c) "Food product sampling" means distributing to individuals at a farmers' market or
community event, for promotional or educational purposes, small portions of a food item
that include as a main ingredient a product sold by the vendor deleted text begin at the farmers' market or
community event deleted text end . For purposes of this subdivision, "small portion" means a portion that is
no more than three ounces of food or beverage.

(d) "Food product demonstration" means cooking or preparing food products to distribute
to individuals at a farmers' market or community event for promotional or educational
purposes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 48.

Minnesota Statutes 2022, section 28A.151, subdivision 2, is amended to read:

Subd. 2.

Food sampling and demonstration.

new text begin (a) Food used in sampling and
demonstration must be obtained from sources that comply with Minnesota Food Law.
new text end

new text begin (b) Raw animal, raw poultry, and raw fish products must not be served as samples.
new text end

new text begin (c) Food product sampling or food product demonstrations, including cooked animal,
poultry, or fish products, must be prepared on site at the event.
new text end

new text begin (d) Animal or poultry products used for food product sampling or food product
demonstrations must be from animals slaughtered under continuous inspection, either by
the USDA or through Minnesota's "Equal-to" inspection program.
new text end

new text begin (e) new text end The licensing provisions of sections 28A.01 to 28A.16 shall not apply to persons
engaged in food product sampling or food product demonstrations.

new text begin EFFECTIVE DATE. new text end

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

Sec. 49.

Minnesota Statutes 2022, section 28A.151, subdivision 3, is amended to read:

Subd. 3.

Food required to be provided at no cost.

Food provided through food product
sampling or food product demonstrations must be provided at no cost to the individual new text begin
recipient of a sample 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. 50.

Minnesota Statutes 2022, section 28A.151, subdivision 5, is amended to read:

Subd. 5.

Food safety and equipment standards.

new text begin (a) new text end Any person conducting food
product sampling or food product demonstrations shall meet the same food safety and
equipment standards that are required of a special event food stand in Minnesota Rules,
parts 4626.1855, items B to O, Q, and R; and 4626.0330.

new text begin (b) Notwithstanding paragraph (a), a handwashing device is not required when only
prepackaged food samples are offered.
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. 51.

Minnesota Statutes 2022, section 28A.151, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Signage. new text end

new text begin A food product provided through food product sampling or food
product demonstrations must be accompanied by a legible sign or placard that lists the
product's ingredients and major food allergens.
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. 52.

Minnesota Statutes 2022, section 28A.21, subdivision 6, is amended to read:

Subd. 6.

Expiration.

This section expires June 30, deleted text begin 2027 deleted text end new text begin 2037 new text end .

Sec. 53.

Minnesota Statutes 2022, section 31.74, is amended to read:

31.74 deleted text begin SALE OF IMITATION deleted text end HONEY.

Subdivision 1.

Honey defined.

As used in this section "honey" means the nectar and
saccharine exudation of plants, gathered, modified and stored in the comb by honey bees,
which is levorotatory, contains not more than 25 percent of water, not more than 25/100
percent of ash, and not more than eight percent sucrose.

Subd. 2.

Prohibited sale.

Notwithstanding any law or rule to the contrary, it is unlawful
for any person to sell or offer for sale any product which is in semblance of honey and which
is labeled, advertised, or otherwise represented to be honey, if it is not honey. The word
"imitation" shall not be used in the name of a product which is in semblance of honey
whether or not it contains any honey. The label for a product which is not in semblance of
honey and which contains honey may include the word "honey" in the name of the product
and the relative position of the word "honey" in the product name, and in the list of
ingredients, when required, shall be determined by its prominence as an ingredient in the
product.

new text begin Subd. 4. new text end

new text begin Food consisting of honey and another sweetener. new text end

new text begin Consistent with the federal
act, the federal regulations incorporated under section 31.101, subdivision 7, and the
prohibition against misbranding in sections 31.02 and 34A.03, the label for a food in
semblance of honey and consisting of honey and another sweetener must include but is not
limited to the following elements:
new text end

new text begin (1) a statement of identity that accurately identifies or describes the nature of the food
or its characterizing properties or ingredients; and
new text end

new text begin (2) the common or usual name of each ingredient in the ingredient statement, in
descending order of predominance by weight.
new text end

Sec. 54.

Minnesota Statutes 2022, section 31.94, is amended to read:

31.94 ORGANIC AGRICULTURE; COMMISSIONER DUTIES.

(a) In order to promote opportunities for organic agriculture in Minnesota, the
commissioner shall:

(1) survey producers and support services and organizations to determine information
and research needs in the area of organic agriculture practices;

(2) work with the University of Minnesota and other research and education institutions
to demonstrate the on-farm applicability of organic agriculture practices to conditions in
this state;

(3) direct the programs of the department so as to work toward the promotion of organic
agriculture in this state;

(4) inform agencies about state or federal programs that support organic agriculture
practices; and

(5) work closely with producers, producer organizations, the University of Minnesota,
and other appropriate agencies and organizations to identify opportunities and needs as well
as ensure coordination and avoid duplication of state agency efforts regarding research,
teaching, marketing, and extension work relating to organic agriculture.

(b) By November 15 of each year that ends in a zero or a five, the commissioner, in
conjunction with the task force created in paragraph (c), shall report on the status of organic
agriculture in Minnesota to the legislative policy and finance committees and divisions with
jurisdiction over agriculture. The report must include available data on organic acreage and
production, available data on the sales or market performance of organic products, and
recommendations regarding programs, policies, and research efforts that will benefit
Minnesota's organic agriculture sector.

(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic agriculture in
Minnesota, including how available resources can most effectively be used for outreach,
education, research, and technical assistance that meet the needs of the organic agriculture
sector. The task force must consist of the following residents of the state:

(1) three organic farmers;

(2) one wholesaler or distributor of organic products;

(3) one representative of organic certification agencies;

(4) two organic processors;

(5) one representative from University of Minnesota Extension;

(6) one University of Minnesota faculty member;

(7) one representative from a nonprofit organization representing producers;

(8) two public members;

(9) one representative from the United States Department of Agriculture;

(10) one retailer of organic products; and

(11) one organic consumer representative.

The commissioner, in consultation with the director of the Minnesota Agricultural Experiment
Station; the dean and director of University of Minnesota Extension and the dean of the
College of Food, Agricultural and Natural Resource Sciences, shall appoint members to
serve three-year terms.

Compensation and removal of members are governed by section 15.059, subdivision 6.
The task force must meet at least twice each year and expires on June 30, deleted text begin 2024 deleted text end new text begin 2034 new text end .

(d) For the purposes of expanding, improving, and developing production and marketing
of the organic products of Minnesota agriculture, the commissioner may receive funds from
state and federal sources and spend them, including through grants or contracts, to assist
producers and processors to achieve certification, to conduct education or marketing
activities, to enter into research and development partnerships, or to address production or
marketing obstacles to the growth and well-being of the industry.

(e) The commissioner may facilitate the registration of state organic production and
handling operations including those exempt from organic certification according to Code
of Federal Regulations, title 7, section 205.101, and accredited certification agencies
operating within the state.

new text begin EFFECTIVE DATE. new text end

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

Sec. 55.

Minnesota Statutes 2022, section 32D.30, is amended to read:

32D.30 DAIRY DEVELOPMENT AND PROFITABILITY ENHANCEMENT.

Subdivision 1.

Program.

The commissioner must implement a dairy development and
profitability enhancement program consisting of new text begin a new text end dairy profitability enhancement deleted text begin teams
and deleted text end new text begin program, new text end dairy business planning grants new text begin , and other services to support the dairy industry new text end .

Subd. 2.

Dairy profitability enhancement deleted text begin teams deleted text end new text begin program new text end .

(a) new text begin The new text end dairy profitability
enhancement deleted text begin teams deleted text end new text begin program new text end must provide deleted text begin one-on-one deleted text end information and technical assistance
to dairy farms of all sizes to enhance their financial success and long-term sustainability.
deleted text begin Teams deleted text end new text begin The program new text end must assist dairy producers in all dairy-producing regions of the state
deleted text begin and deleted text end new text begin . new text end new text begin Assistance to producers from the program new text end may deleted text begin consist of deleted text end new text begin be provided individually, as
a team, or through other methods by new text end farm business management instructors, dairy extension
specialists, and other dairy industry partners. deleted text begin Teams deleted text end new text begin The program new text end may engage in activities
deleted text begin including deleted text end new text begin such as new text end comprehensive financial analysis, risk management education, enhanced
milk marketing tools and technologies, deleted text begin and deleted text end facilitating or improving production systems new text begin , new text end
including rotational grazing and other sustainable agriculture methods new text begin , and value-added
opportunities new text end .

(b) The commissioner must make grants to regional or statewide organizations qualified
to manage the various components of the deleted text begin teams deleted text end new text begin program and serve as program administrators new text end .
Each regional or statewide organization must designate a coordinator responsible for
overseeing the program and submitting periodic reports to the commissioner regarding
aggregate changes in producer financial stability, productivity, product quality, animal
health, environmental protection, and other performance measures attributable to the program.
The organizations must submit this information in a format that maintains the confidentiality
of individual dairy producers.

Subd. 3.

Dairy business planning grants.

The commissioner may award dairy business
planning grants of up to $5,000 per producer new text begin or dairy processor new text end to deleted text begin develop comprehensive
business plans deleted text end new text begin use technical assistance services for evaluating operations, transitional
changes, expansions, improvements, and other business modifications new text end . Producers new text begin and
processors new text end must not use dairy business planning grants for capital improvements.

Subd. 4.

Funding allocation.

Except as specified in law, the commissioner may allocate
dairy development and profitability enhancement program dollars deleted text begin among deleted text end new text begin for new text end the permissible
uses specified in this section new text begin and other needs to support the dairy industry new text end , including efforts
to improve the quality of milk produced in the state, in the proportions that the commissioner
deems most beneficial to the state's dairy farmers.

Subd. 5.

Reporting.

No later than July 1 each year, the commissioner must submit a
detailed accomplishment report and work plan detailing future plans for, and the actual and
anticipated accomplishments from, expenditures under this section to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction over
agriculture policy and finance. If the commissioner significantly modifies a submitted work
plan during the fiscal year, the commissioner must notify the chairs and ranking minority
members.

Sec. 56.

Minnesota Statutes 2022, section 41B.039, subdivision 2, is amended to read:

Subd. 2.

State participation.

The state may participate in a new real estate loan with
an eligible lender to a beginning farmer to the extent of 45 percent of the principal amount
of the loan or deleted text begin $400,000 deleted text end new text begin $500,000 new text end , whichever is less. The interest rates and repayment terms
of the authority's participation interest may be different than the interest rates and repayment
terms of the lender's retained portion of the loan.

Sec. 57.

Minnesota Statutes 2022, section 41B.04, subdivision 8, is amended to read:

Subd. 8.

State participation.

With respect to loans that are eligible for restructuring
under sections 41B.01 to 41B.23 and upon acceptance by the authority, the authority shall
enter into a participation agreement or other financial arrangement whereby it shall participate
in a restructured loan to the extent of 45 percent of the primary principal or deleted text begin $525,000 deleted text end new text begin
$625,000 new text end , whichever is less. The authority's portion of the loan must be protected during
the authority's participation by the first mortgage held by the eligible lender to the extent
of its participation in the loan.

Sec. 58.

Minnesota Statutes 2022, section 41B.042, subdivision 4, is amended to read:

Subd. 4.

Participation limit; interest.

The authority may participate in new
seller-sponsored loans to the extent of 45 percent of the principal amount of the loan or
deleted text begin $400,000 deleted text end new text begin $500,000 new text end , whichever is less. The interest rates and repayment terms of the
authority's participation interest may be different than the interest rates and repayment terms
of the seller's retained portion of the loan.

Sec. 59.

Minnesota Statutes 2022, section 41B.043, subdivision 1b, is amended to read:

Subd. 1b.

Loan participation.

The authority may participate in an agricultural
improvement loan with an eligible lender to a farmer who meets the requirements of section
41B.03, subdivision 1, clauses (1) and (2), and who is actively engaged in farming.
Participation is limited to 45 percent of the principal amount of the loan or deleted text begin $400,000 deleted text end new text begin
$500,000 new text end , whichever is less. The interest rates and repayment terms of the authority's
participation interest may be different than the interest rates and repayment terms of the
lender's retained portion of the loan.

Sec. 60.

Minnesota Statutes 2022, section 41B.045, subdivision 2, is amended to read:

Subd. 2.

Loan participation.

The authority may participate in a livestock expansion
and modernization loan with an eligible lender to a livestock farmer who meets the
requirements of section 41B.03, subdivision 1, clauses (1) and (2), and who are actively
engaged in a livestock operation. A prospective borrower must have a total net worth,
including assets and liabilities of the borrower's spouse and dependents, of less than
$1,700,000 in 2017 and an amount in subsequent years which is adjusted for inflation by
multiplying that amount by the cumulative inflation rate as determined by the United States
All-Items Consumer Price Index.

Participation is limited to 45 percent of the principal amount of the loan or deleted text begin $525,000 deleted text end new text begin
$625,000 new text end , whichever is less. The interest rates and repayment terms of the authority's
participation interest may be different from the interest rates and repayment terms of the
lender's retained portion of the loan.

Sec. 61.

Minnesota Statutes 2022, section 41B.047, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The authority shall establish and implement a disaster
recovery loan program to help farmers:

(1) clean up, repair, or replace farm structures and septic and water systems, as well as
replace seed, other crop inputs, feed, and livestock;

(2) purchase watering systems, irrigation systems, deleted text begin and deleted text end other drought mitigation systems
and practices new text begin , and feed new text end when drought is the cause of the purchase;

(3) restore farmland;

(4) replace flocks or livestock, make building improvements, or cover the loss of revenue
when the replacement, improvements, or loss of revenue is due to the confirmed presence
of a highly contagious animal disease in a commercial poultry or game flock, or a commercial
livestock operation, located in Minnesota; or

(5) cover the loss of revenue when the revenue loss is due to an infectious human disease
for which the governor has declared a peacetime emergency under section 12.31.

Sec. 62.

Minnesota Statutes 2022, section 232.21, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of agriculture new text begin or the
commissioner's designee new text end .

Sec. 63.

Minnesota Statutes 2022, section 232.21, subdivision 7, is amended to read:

Subd. 7.

Grain.

"Grain" means any deleted text begin cereal grain, coarse grain, or oilseed in unprocessed
form for which a standard has been established by the United States Secretary of Agriculture,
dry edible beans, or agricultural crops designated by the commissioner by rule deleted text end new text begin product
commonly referred to as grain, including wheat, corn, oats, barley, rye, rice, soybeans,
emmer, sorghum, triticale, millet, pulses, dry edible beans, sunflower seed, rapeseed, canola,
safflower, flaxseed, mustard seed, crambe, sesame seed, and other products ordinarily stored
in grain warehouses new text end .

Sec. 64.

Minnesota Statutes 2022, section 232.21, subdivision 11, is amended to read:

Subd. 11.

Producer.

"Producer" means a person who deleted text begin owns or manages a grain producing
or growing operation and holds or shares the responsibility for marketing that grain produced deleted text end new text begin
grows grain on land owned or leased by the person new text end .

Sec. 65.

Minnesota Statutes 2022, section 232.21, subdivision 12, is amended to read:

Subd. 12.

Public grain warehouse operator.

"Public grain warehouse operator" means new text begin :
(1) new text end a person deleted text begin licensed to operate deleted text end new text begin operating new text end a grain warehouse in which grain belonging to
persons other than the grain warehouse operator is accepted for storage or purchase deleted text begin , or deleted text end new text begin ; (2)
a person new text end who offers grain storage or grain warehouse facilities to the public for hire new text begin ; new text end or new text begin (3)
new text end a feed-processing plant that receives and stores grain, the equivalent of which deleted text begin , deleted text end it processes
and returns to the grain's owner in amounts, at intervals, and with added ingredients that
are mutually agreeable to the grain's owner and the person operating the plant.

Sec. 66.

Minnesota Statutes 2022, section 232.21, subdivision 13, is amended to read:

Subd. 13.

Scale ticket.

"Scale ticket" means a memorandum showing the weight deleted text begin , grade deleted text end
and kind of grain which is issued by a grain new text begin elevator or new text end warehouse operator to a depositor
at the time the grain is delivered.

Sec. 67.

new text begin [346.021] FINDER TO GIVE NOTICE.
new text end

new text begin A person who finds an estray and knows who owns the estray must notify the estray's
owner within seven days after finding the estray and request that the owner pay all reasonable
charges and take the estray away. A finder who does not know who owns an estray must
either:
new text end

new text begin (1) within ten days, file a notice with the town or city clerk and post a physical or online
notice of the finding of the estray. The notice must briefly describe the estray or provide a
photograph of the estray, provide the residence or contact information of the finder, and
provide the approximate location and time when the finder found the estray; or
new text end

new text begin (2) within seven days, surrender the estray to a local animal control agency or to a kennel
as defined in section 347.31, subdivision 2.
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. 68.

Laws 2023, chapter 43, article 2, section 142, subdivision 9, is amended to read:

Subd. 9.

Dairy law.

Minnesota Statutes 2022, sections 17.984; 32D.03, subdivision 5;
32D.24; 32D.25 new text begin , subdivision 1 new text end ; 32D.26; 32D.27; and 32D.28, are repealed.

new text begin EFFECTIVE DATE. new text end

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

Sec. 69. new text begin REVIVAL AND REENACTMENT.
new text end

new text begin Minnesota Statutes, section 32D.25, subdivision 2, is revived and reenacted effective
retroactively from July 1, 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. 70. new text begin REPORT REQUIRED; COOPERATIVE FINANCIAL REPORTING.
new text end

new text begin The commissioner of agriculture shall convene a cooperative financial reporting
workgroup, which must include producers who sell to a cooperative and representatives
from cooperative management. The commissioner shall develop recommendations relating
to requirements for cooperatives to report on financial conditions and report back with
recommendations to the legislative committees with jurisdiction over agriculture by January
3, 2025. Participating stakeholders must be given an opportunity to include written testimony
to the legislative committees in the commissioner's report.
new text end

Sec. 71. new text begin COMMERCIAL APPLICATOR LICENSE EXAMINATION LANGUAGE
REQUIREMENTS.
new text end

new text begin By January 1, 2025, the commissioner of agriculture must ensure that examinations for
a commercial applicator license under Minnesota Statutes, section 18B.33, are available in
Spanish and that applicants are informed that the examinations can be taken in Spanish.
The commissioner must use money appropriated from the pesticide regulatory account
under Minnesota Statutes, section 18B.05, for this purpose.
new text end

Sec. 72. new text begin CREDIT MARKET REPORT REQUIRED.
new text end

new text begin The commissioner of agriculture must convene a stakeholder working group to explore
the state establishing a market for carbon credits, ecosystem services credits, or other credits
generated by farmers who implement clean water, climate-smart, and soil-healthy farming
practices. To the extent practicable, the stakeholder working group must include but is not
limited to farmers; representatives of agricultural organizations; experts in geoscience,
carbon storage, greenhouse gas modeling, and agricultural economics; industry
representatives with experience in carbon markets and supply chain sustainability; and
representatives of environmental organizations with expertise in carbon sequestration and
agriculture. No later than February 1, 2025, the commissioner must report recommendations
to the legislative committees with jurisdiction over agriculture. The commissioner must
provide participating stakeholders an opportunity to include written testimony in the
commissioner's report.
new text end

Sec. 73. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 3.7371, subdivision 7; and 34.07, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030;
1506.0035; and 1506.0040, new text end new text begin are repealed.
new text end

ARTICLE 3

BROADBAND

Section 1.

Minnesota Statutes 2022, section 116J.396, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Transfer. new text end

new text begin The commissioner may transfer up to $5,000,000 of a fiscal year
appropriation between the border-to-border broadband program, low density population
broadband program, and the broadband line extension program to meet demand. The
commissioner must inform the chairs and ranking minority members of the legislative
committees with jurisdiction over broadband finance in writing when this transfer authority
is used. The written notice must include how much money was transferred and why the
transfer was made. The written notice must also be filed with the Legislative Reference
Library in compliance with Minnesota Statutes, section 3.195.
new text end

Sec. 2. new text begin BROADBAND DEVELOPMENT; APPLICATION FOR FEDERAL
FUNDING; APPROPRIATION.
new text end

new text begin (a) The commissioner of employment and economic development must prepare and
submit an application to the United States Department of Commerce requesting State Digital
Equity Capacity Grant funding made available under Public Law 117-58, the Infrastructure
Investment and Jobs Act.
new text end

new text begin (b) The amount awarded to Minnesota pursuant to the application submitted under
paragraph (a) is appropriated to the commissioner of employment and economic development
for purposes of the commissioner's Minnesota Digital Opportunity Plan.
new text end

ARTICLE 4

CLIMATE AND ENERGY FINANCE

Section 1. new text begin 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 "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
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 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT 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 -0- new text end

new text begin $ new text end

new text begin 1,133,000 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 Thermal Energy Network Site Suitability Study new text end

new text begin $500,000 the second year is for the thermal
energy network site suitability study under
article 6, section 51. This is a onetime
appropriation and is available until December
31, 2025.
new text end

new text begin Subd. 3. new text end new text begin SolarAPP+ Program new text end

new text begin $500,000 the second year is for transfer to the
SolarAPP+ program account established under
Minnesota Statutes, section 216C.48, to award
incentives to local units of government that
deploy federally developed software to
automate the review of applications and
issuance of permits for residential solar
projects. Incentives must be awarded only to
local units of government located outside the
electric service territory of the public utility
subject to Minnesota Statutes, section
116C.779, subdivision 1. This is a onetime
transfer and is available until June 30, 2028.
new text end

new text begin Subd. 4. new text end new text begin Grid-Enhancing Technologies new text end

new text begin $133,000 the second year is to (1) participate
in a Minnesota Public Utilities Commission
proceeding to review electric transmission line
owners' plans to deploy grid-enhancing
technologies, and (2) issue an order to
implement the plans. The base in fiscal year
2026 is $265,000 and the base in fiscal year
2027 is $265,000. The base in fiscal year 2028
is $0.
new text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 267,000 new text end

new text begin (a) $39,000 the second year is to support the
Thermal Energy Network Deployment Work
Group and prepare a report under article 6,
section 49. The base in fiscal year 2026 is
$77,000 and the base in fiscal year 2027 is $0.
new text end

new text begin (b) $117,000 the second year is to review
electric transmission line owners' plans to
deploy grid-enhancing technologies and
develop a commission order to implement
approved plans under article 6, section 52. The
base in fiscal year 2026 is $157,000 and the
base in fiscal year 2027 is $157,000. The base
in fiscal year 2028 is $0.
new text end

new text begin (c) $111,000 the second year is to conduct a
proceeding to develop a cost-sharing
mechanism enabling developers of distributed
generation projects to pay utilities to expand
distribution line capacity in order to
interconnect to the grid. The base in fiscal year
2026 is $111,000 and the base in fiscal year
2027 is $77,000. The base in fiscal year 2028
is $0.
new text end

Sec. 4. new text begin GRANT ADMINISTRATION REPORTING.
new text end

new text begin (a) By July 1, 2024, the commissioner of commerce must report to the chairs and ranking
minority members of the legislative committees having jurisdiction over energy finance
and policy regarding the anticipated costs to administer each named grant and competitive
grant program in Laws 2023, chapter 60, article 10, section 2, and Laws 2023, chapter 60,
article 11, section 2.
new text end

new text begin (b) Within 90 days after each named grantee has fulfilled the obligations of the grantee's
grant agreement, the commissioner must report to the chairs and ranking minority members
of the legislative committees having jurisdiction over energy finance and policy on the final
cost to administer (1) each named grant included in paragraph (a), and (2) each named grant
in this article and article 5.
new text end

new text begin (c) By January 15, 2025, and each year thereafter, the commissioner must report to the
chairs and ranking minority members of the legislative committees having jurisdiction over
energy finance and policy on the annual cost to administer (1) each competitive grant
program included in paragraph (a), and (2) each competitive grant program in this article
and article 5.
new text end

ARTICLE 5

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

Section 1. new text begin 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. Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), the appropriations are from the renewable
development account in the special revenue fund established in Minnesota Statutes, section
116C.779, subdivision 1, and are available for the fiscal years indicated for each purpose.
The figures "2024" and "2025" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.
"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium"
is fiscal years 2024 and 2025.
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 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT 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 -0- new text end

new text begin $ new text end

new text begin 14,450,000 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 Geothermal Energy System; Sabathani Community Center new text end

new text begin (a) $6,000,000 the second year is for a grant
to the Sabathani Community Center in
Minneapolis to construct a geothermal energy
system that provides space heating and cooling
to the center. This is a onetime appropriation
and is available until June 30, 2028.
new text end

new text begin (b) For the purposes of this subdivision,
"geothermal energy system" means a system
composed of: a heat pump that moves a
heat-transferring fluid through piping
embedded in the earth and absorbs the earth's
constant temperature; a heat exchanger; and
ductwork to distribute heated and cooled air
to a building.
new text end

new text begin Subd. 3. new text end new text begin Geothermal Planning Grants new text end

new text begin $1,200,000 the second year is for transfer to
the geothermal planning grant account
established under Minnesota Statutes, section
216C.47, for planning grants to political
subdivisions to assess the feasibility and cost
of constructing geothermal energy systems.
This is a onetime appropriation and is
available until June 30, 2029.
new text end

new text begin Subd. 4. new text end new text begin Energy Efficiency Projects; Dakota County new text end

new text begin (a) $500,000 the second year is for a grant to
Dakota County for energy efficiency projects
that are located in the service area of the public
utility subject to Minnesota Statutes, section
116C.779. This is a onetime appropriation and
is available until June 30, 2027.
new text end

new text begin (b) For purposes of this subdivision, "energy
efficiency project" includes: (1) LED lighting,
as defined under Minnesota Statutes, section
216B.241, subdivision 5; (2) solar arrays; or
(3) heating, ventilating, or air conditioning
system improvements.
new text end

new text begin Subd. 5. new text end new text begin Anaerobic Digester Energy System new text end

new text begin (a) $5,000,000 the second year is for a grant
to Recycling and Energy, in partnership with
Dem-Con HZI Bioenergy, LLC, to construct
an anaerobic energy system in Louisville
Township. This is a onetime appropriation and
is available until June 30, 2028.
new text end

new text begin (b) For the purposes of this subdivision,
"anaerobic energy system" means a facility
that uses diverted food and organic waste to
create renewable natural gas and biochar.
new text end

new text begin Subd. 6. new text end new text begin SolarAPP+ Program new text end

new text begin $1,500,000 the second year is for transfer to
the SolarAPP+ program account established
under Minnesota Statutes, section 216C.48,
to award incentives to local units of
government that deploy federally developed
software to automate the review of
applications and issuance of permits for
residential solar projects. Incentives must be
awarded only to political subdivisions located
within the electric service territory of the
public utility that is subject to Minnesota
Statutes, section 116C.779, subdivision 1. This
is a onetime transfer.
new text end

new text begin Subd. 7. new text end new text begin Ultraefficient Vehicle Development Grants new text end

new text begin $250,000 the second year is transferred to the
ultraefficient vehicle development grant
account under article 6, section 48, to provide
grants for developers and producers of
ultraefficient vehicles. This is a onetime
transfer.
new text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin $1,000,000 the second year is for the carbon
dioxide pipelines study under article 6, section
50. This is a onetime appropriation.
new text end

ARTICLE 6

ENERGY POLICY

Section 1.

Minnesota Statutes 2022, section 103I.621, subdivision 1, is amended to read:

Subdivision 1.

Permit.

(a) Notwithstanding any department or agency rule to the contrary,
the commissioner shall issue, on request by the owner of the property and payment of the
permit fee, permits for the reinjection of water by a properly constructed well into the same
aquifer from which the water was drawn for the operation of a groundwater thermal exchange
device.

(b) As a condition of the permit, an applicant must agree to allow inspection by the
commissioner during regular working hours for department inspectors.

(c) Not more than 200 permits may be issued for small systems deleted text begin having deleted text end new text begin that (1) have new text end
maximum capacities of 20 gallons per minute or less new text begin , and (2) are compliant with the natural
resource water-use requirements under subdivision 2 new text end . deleted text begin The small systems are subject to
inspection twice a year.
deleted text end

(d) Not more than deleted text begin ten deleted text end new text begin 100 new text end permits may be issued for larger systems deleted text begin having deleted text end new text begin that (1) have new text end
maximum capacities deleted text begin from deleted text end new text begin over new text end 20 deleted text begin to 50 deleted text end gallons per minute new text begin , and (2) are compliant with the
natural resource water-use requirements under subdivision 2 new text end . deleted text begin The larger systems are subject
to inspection four times a year.
deleted text end

(e) A person issued a permit must comply with this section deleted text begin for the permit to be valid. deleted text end new text begin
and permit conditions deemed necessary to protect public health and safety of groundwater.
Permit conditions may include but are not limited to:
new text end

new text begin (1) notification to the commissioner at intervals specified in the permit conditions;
new text end

new text begin (2) system operation and maintenance;
new text end

new text begin (3) system location and construction;
new text end

new text begin (4) well location and construction;
new text end

new text begin (5) signage requirements;
new text end

new text begin (6) reports of system construction, performance, operation, and maintenance;
new text end

new text begin (7) removal of the system upon termination of use or failure;
new text end

new text begin (8) disclosure of the system at the time of property transfer;
new text end

new text begin (9) requirements to obtain approval from the commissioner prior to deviating from the
approval plan and conditions;
new text end

new text begin (10) groundwater level monitoring; and
new text end

new text begin (11) groundwater quality monitoring.
new text end

new text begin (f) The property owner or the property owner's agent must submit to the commissioner
a permit application on a form provided by the commissioner, or in a format approved by
the commissioner, that provides any information necessary to protect public health and
safety of groundwater.
new text end

new text begin (g) A permit granted under this section is not valid if a water-use permit is required for
the project and is not approved by the commissioner of natural resources.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 103I.621, subdivision 2, is amended to read:

Subd. 2.

Water-use requirements apply.

Water-use permit requirements and penalties
under chapter deleted text begin 103F deleted text end new text begin 103G new text end and related rules adopted and enforced by the commissioner of
natural resources apply to groundwater thermal exchange permit recipients. A person who
violates a provision of this section is subject to enforcement or penalties for the noncomplying
activity that are available to the commissioner and the Pollution Control Agency.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2023 Supplement, 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 (f) and (g), and sections 116C.7792 and 216C.41, are not subject
to transfer under this paragraph.

(c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
plant must transfer to the renewable development account $500,000 each year for each dry
cask containing spent fuel that is located at the Prairie Island power plant for each year the
plant is in operation, and $7,500,000 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 Prairie Island for any
part of a year. The total amount transferred annually under this paragraph must be reduced
by $3,750,000.

(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.

(e) Each year, the public utility shall withhold from the funds transferred to the renewable
development account under paragraphs (c) and (d) the amount necessary to pay its obligations
under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.

(f) 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 (e).

(g) If 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 (e).

(h) The collective amount paid under the grant contracts awarded under paragraphs (f)
and (g) 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.

(i) 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.

(j) 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.

(k) For the purposes of paragraph (j), 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.

(l) 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. The 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 (j), clause (1),
may be limited to or include a request to higher education institutions located in Minnesota
for multiple projects authorized under paragraph (j), 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:

(1) potential benefit to Minnesota citizens and businesses and the utility's ratepayers;
and

(2) the proposer's commitment to increasing the diversity of the proposer's workforce
and vendors.

(m) The 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 legislature. 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 (n).

(n) 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.

(o) 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.

(p) 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 for 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.

deleted text begin (q) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall 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.
deleted text end

deleted text begin (r) deleted text end new text begin (q) 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. A project
receiving funds from the account must submit a report that meets the requirements of section
216C.51, subdivisions 3 and 4, each year the project funded by the account is in progress.

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

deleted text begin (v) deleted text end new text begin (u) new text end Construction projects receiving funds from this account are subject to the
requirement to pay the prevailing wage rate, as defined in section 177.42 and the requirements
and enforcement provisions in sections 177.27, 177.30, 177.32, 177.41 to 177.435, and
177.45.

Sec. 4.

Minnesota Statutes 2023 Supplement, section 116C.7792, is amended to read:

116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.

(a) The utility subject to section 116C.779 shall operate a program to provide solar
energy production incentives for solar energy systems of no more than a total aggregate
nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided that the aggregate capacity of all systems at the customer location does
not exceed 40 kilowatts.

(b) The program is funded by money withheld from transfer to the renewable development
account under section 116C.779, subdivision 1, paragraphs (b) and (e). Program funds must
be placed in a separate account for the purpose of the solar energy production incentive
program operated by the utility and not for any other program or purpose.

(c) Funds allocated to the solar energy production incentive program in 2019 and 2020
remain available to the solar energy production incentive program.

(d) The following amounts are allocated to the solar energy production incentive program:

(1) $10,000,000 in 2021;

(2) $10,000,000 in 2022;

(3) $5,000,000 in 2023;

(4) $11,250,000 in 2024; deleted text begin and
deleted text end

(5) $6,250,000 in 2025 new text begin ; and
new text end

new text begin (6) $5,000,000 each year, beginning in 2026 through 2035 new text end .

(e) Notwithstanding the Department of Commerce's November 14, 2018, decision in
Docket No. E002/M-13-1015 regarding operation of the utility's solar energy production
incentive program, half of the amounts allocated each year under paragraph (d), clauses (3),
(4), and (5), must be reserved for solar energy systems whose installation meets the eligibility
standards for the low-income program established in the November 14, 2018, decision or
successor decisions of the department. All other program operations of the solar energy
production incentive program are governed by the provisions of the November 14, 2018,
decision or successor decisions of the department.

(f) Funds allocated to the solar energy production incentive program that have not been
committed to a specific project at the end of a program year remain available to the solar
energy production incentive program.

(g) Any unspent amount remaining on January 1, 2028, must be transferred to the
renewable development account.

(h) A solar energy system receiving a production incentive under this section must be
sized to less than 120 percent of the customer's on-site annual energy consumption when
combined with other distributed generation resources and subscriptions provided under
section 216B.1641 associated with the premise. The production incentive must be paid for
ten years commencing with the commissioning of the system.

(i) The utility must file a plan to operate the program with the commissioner of commerce.
The utility may not operate the program until it is approved by the commissioner. A change
to the program to include projects up to a nameplate capacity of 40 kilowatts or less does
not require the utility to file a plan with the commissioner. Any plan approved by the
commissioner of commerce must not provide an increased incentive scale over prior years
unless the commissioner demonstrates that changes in the market for solar energy facilities
require an increase.

Sec. 5.

Minnesota Statutes 2022, section 216B.098, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Social Security number and individual taxpayer identification number. new text end

new text begin If
a utility requires a new customer to provide a Social Security number on an application for
utility service, the utility must accept an individual taxpayer identification number in lieu
of a Social Security number. The utility application must indicate that the utility accepts an
individual taxpayer identification number.
new text end

Sec. 6.

Minnesota Statutes 2022, section 216B.16, subdivision 6c, is amended to read:

Subd. 6c.

Incentive plan for energy conservation new text begin and efficient fuel-switching
new text end improvement.

(a) The commission may order public utilities to develop and submit for
commission approval incentive plans that describe the method of recovery and accounting
for utility conservation new text begin and efficient fuel-switching new text end expenditures and savings. new text begin For public
utilities that provide electric service, the commission must develop and implement incentive
plans designed to promote energy conservation separately from the plans designed to promote
efficient fuel-switching. new text end In developing the incentive plans the commission shall ensure the
effective involvement of interested parties.

(b) In approving incentive plans, the commission shall consider:

(1) whether the plan is likely to increase utility investment in cost-effective energy
conservation new text begin or efficient fuel switching new text end ;

(2) whether the plan is compatible with the interest of utility ratepayers and other
interested parties;

(3) whether the plan links the incentive to the utility's performance in achieving
cost-effective conservation new text begin or efficient fuel switching new text end ; deleted text begin and
deleted text end

(4) whether the plan is in conflict with other provisions of this chapter deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) whether the plan conflicts with other provisions of this chapter; and
new text end

new text begin (6) the likely financial impacts of the conservation and efficient fuel-switching programs
on the utility.
new text end

(c) The commission may set rates to encourage the vigorous and effective implementation
of utility conservation new text begin and efficient fuel-switching new text end programs. The commission may:

(1) increase or decrease any otherwise allowed rate of return on net investment based
upon the utility's skill, efforts, and success in deleted text begin conserving deleted text end new text begin improving the efficient use of new text end
energy new text begin through energy conservation or efficient fuel switching new text end ;

(2) share between ratepayers and utilities the net savings resulting from energy
conservation new text begin and efficient fuel-switching new text end programs to the extent justified by the utility's
skill, efforts, and success in deleted text begin conserving deleted text end new text begin improving the efficient use of new text end energy; and

(3) adopt any mechanism that satisfies the criteria of this subdivision, such that
implementation of cost-effective conservation new text begin or efficient fuel switching new text end is a preferred
resource choice for the public utility considering the impact of conservation new text begin or efficient fuel
switching new text end on earnings of the public utility.

new text begin (d) Any incentives offered to electric utilities under this subdivision for efficient-fuel
switching projects expire December 31, 2032.
new text end

Sec. 7.

Minnesota Statutes 2022, section 216B.16, subdivision 8, is amended to read:

Subd. 8.

Advertising expense.

(a) The commission shall disapprove the portion of any
rate which makes an allowance directly or indirectly for expenses incurred by a public utility
to provide a public advertisement which:

(1) is designed to influence or has the effect of influencing public attitudes toward
legislation or proposed legislation, or toward a rule, proposed rule, authorization or proposed
authorization of the Public Utilities Commission or other agency of government responsible
for regulating a public utility;

(2) is designed to justify or otherwise support or defend a rate, proposed rate, practice
or proposed practice of a public utility;

(3) is designed primarily to promote consumption of the services of the utility;

(4) is designed primarily to promote good will for the public utility or improve the
utility's public image; or

(5) is designed to promote the use of nuclear power or to promote a nuclear waste storage
facility.

(b) The commission may approve a rate which makes an allowance for expenses incurred
by a public utility to disseminate information which:

(1) is designed to encourage deleted text begin conservation deleted text end new text begin efficient use new text end of energy supplies;

(2) is designed to promote safety; or

(3) is designed to inform and educate customers as to financial services made available
to them by the public utility.

(c) The commission shall not withhold approval of a rate because it makes an allowance
for expenses incurred by the utility to disseminate information about corporate affairs to its
owners.

Sec. 8.

Minnesota Statutes 2022, section 216B.2402, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Data mining facility. new text end

new text begin "Data mining facility" means all buildings, structures,
equipment, and installations at a single site where electricity is used primarily by computers
to process transactions involving digital currency that is not issued by a central authority.
new text end

Sec. 9.

Minnesota Statutes 2022, section 216B.2402, subdivision 4, is amended to read:

Subd. 4.

Efficient fuel-switching improvement.

"Efficient fuel-switching improvement"
means a project that:

(1) replaces a fuel used by a customer with electricity or natural gas delivered at retail
by a utility subject to section 216B.2403 or 216B.241;

(2) results in a net increase in the use of electricity or natural gas and a net decrease in
source energy consumption on a fuel-neutral basis;

(3) otherwise meets the criteria established for consumer-owned utilities in section
216B.2403, subdivision 8, and for public utilities under section 216B.241, subdivisions 11
and 12; and

(4) requires the installation of equipment that utilizes electricity or natural gas, resulting
in a reduction or elimination of the previous fuel used.

An efficient fuel-switching improvement is not an energy conservation improvement or
energy efficiency even if the efficient fuel-switching improvement results in a net reduction
in electricity or natural gas use. deleted text begin An efficient fuel-switching improvement does not include,
and must not count toward any energy savings goal from, energy conservation improvements
when fuel switching would result in an increase of greenhouse gas emissions into the
atmosphere on an annual basis.
deleted text end

Sec. 10.

Minnesota Statutes 2022, section 216B.2402, subdivision 10, is amended to read:

Subd. 10.

Gross annual retail energy sales.

"Gross annual retail energy sales" means
a utility's annual electric sales to all Minnesota retail customers, 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:

(1) gas sales to:

(i) a large energy facility;

(ii) a large customer facility whose natural gas utility has been exempted by the
commissioner under section 216B.241, subdivision 1a, paragraph (a), with respect to natural
gas sales made to the large customer facility; and

(iii) a commercial gas customer facility whose natural gas utility has been exempted by
the commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to
natural gas sales made to the commercial gas customer facility;

(2) electric sales to new text begin :
new text end

new text begin (i) new text end a large customer facility whose electric utility has been exempted by the commissioner
under section 216B.241, subdivision 1a, paragraph (a), with respect to electric sales made
to the large customer facility; deleted text begin or deleted text end new text begin and
new text end

new text begin (ii) a data mining facility, if the facility:
new text end

new text begin (A) has provided a signed letter to the utility verifying the facility meets the definition
of a data mining facility; and
new text end

new text begin (B) imposes a peak electrical demand on a consumer-owned utility's system equal to or
greater than 40 percent of the peak electrical demand of the system, measured in the same
manner as the utility that serves the customer facility measures electric demand for billing
purposes; or
new text end

(3) the amount of electric sales prior to December 31, 2032, that are associated with a
utility's program, rate, or tariff for electric vehicle charging based on a methodology and
assumptions developed by the department in consultation with interested stakeholders no
later than December 31, 2021. After December 31, 2032, incremental sales to electric
vehicles must be included in calculating a new text begin public new text end utility's gross annual retail sales.

Sec. 11.

Minnesota Statutes 2022, section 216B.2403, subdivision 2, is amended to read:

Subd. 2.

Consumer-owned utility; energy-savings goal.

(a) Each individual
consumer-owned new text begin electric new text end utility subject to this section has an annual energy-savings goal
equivalent to 1.5 percent of gross annual retail energy sales new text begin and each individual
consumer-owned natural gas utility subject to this section has an annual energy-savings
goal equivalent to one percent of gross annual retail energy sales new text end , to be met with a minimum
of energy savings from energy conservation improvements equivalent to at least deleted text begin 0.95 deleted text end new text begin 0.90 new text end
percent of the consumer-owned utility's gross annual retail energy sales. The balance of
energy savings toward the annual energy-savings goal may be achieved only by the following
consumer-owned utility activities:

(1) energy savings from additional energy conservation improvements;

(2) electric utility infrastructure projects, as defined in section 216B.1636, subdivision
1, that result in increased efficiency greater than would have occurred through normal
maintenance activity;

(3) net energy savings from efficient fuel-switching improvements that meet the criteria
under subdivision 8, which may contribute up to deleted text begin 0.55 deleted text end new text begin 0.60 new text end percent of the goal; or

(4) 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.

(b) The energy-savings goals specified in this section must be calculated based on
weather-normalized sales averaged over the most recent three years. A consumer-owned
utility may elect to carry forward energy savings in excess of 1.5 percent for a year to the
next three years, except that energy savings from electric utility infrastructure projects may
be carried forward for five years. A particular energy savings can only be used to meet one
year's goal.

(c) 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. A consumer-owned utility subject to this section must
make reasonable efforts to implement energy conservation improvements that exceed the
minimum level established under this subdivision if cost-effective opportunities and funding
are available, considering other potential investments the consumer-owned utility intends
to make to benefit customers during the term of the plan filed under subdivision 3.

deleted text begin (d) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a
consumer-owned utility subject to this section on efficient fuel-switching improvements
implemented to meet the annual energy savings goal under this section must not exceed
0.55 percent per year, averaged over a three-year period, of the consumer-owned utility's
gross annual retail energy sales.
deleted text end

Sec. 12.

Minnesota Statutes 2022, section 216B.2403, subdivision 3, is amended to read:

Subd. 3.

Consumer-owned utility; energy conservation and optimization plans.

(a)
By June 1, 2022, and at least every three years thereafter, each consumer-owned utility must
file with the commissioner an energy conservation and optimization plan that describes the
programs for energy conservation, efficient fuel-switching, load management, and other
measures the consumer-owned utility intends to offer to achieve the utility's energy savings
goal.

(b) A plan's term may extend up to three years. A multiyear plan must identify the total
energy savings and energy savings resulting from energy conservation improvements that
are projected to be achieved in each year of the plan. A multiyear plan that does not, in each
year of the plan, meet both the minimum energy savings goal from energy conservation
improvements and the total energy savings goal of 1.5 percent, or lower goals adjusted by
the commissioner under paragraph (k), must:

(1) state why each goal is projected to be unmet; and

(2) demonstrate how the consumer-owned utility proposes to meet both goals on an
average basis over the duration of the plan.

(c) A plan filed under this subdivision must provide:

(1) for existing programs, an analysis of the cost-effectiveness of the consumer-owned
utility's programs offered under the plan, using a list of baseline energy- and capacity-savings
assumptions developed in consultation with the department; and

(2) for new programs, a preliminary analysis upon which the program will proceed, in
parallel with further development of assumptions and standards.

(d) The commissioner must evaluate a plan filed under this subdivision based on the
plan's likelihood to achieve the energy-savings goals established in subdivision 2. The
commissioner may make recommendations to a consumer-owned utility regarding ways to
increase the effectiveness of the consumer-owned utility's energy conservation activities
and programs under this subdivision. The commissioner may recommend that a
consumer-owned utility implement a cost-effective energy conservation new text begin or efficient
fuel-switching new text end program deleted text begin , including an energy conservation program deleted text end suggested by an outside
source such as a political subdivision, nonprofit corporation, or community organization.

(e) Beginning June 1, 2023, and every June 1 thereafter, each consumer-owned utility
must file: (1) an annual update identifying the status of the plan filed under this subdivision,
including: (i) total expenditures and investments made to date under the plan; and (ii) any
intended changes to the plan; and (2) a summary of the annual energy-savings achievements
under a plan. An annual filing made in the last year of a plan must contain a new plan that
complies with this section.

(f) When evaluating the cost-effectiveness of a consumer-owned utility's energy
conservation programs, the consumer-owned utility and the commissioner must consider
the costs and benefits to ratepayers, the utility, participants, and society. The commissioner
must also consider the rate at which the consumer-owned utility is increasing energy savings
and expenditures on energy conservation, and lifetime energy savings and cumulative energy
savings.

(g) A consumer-owned utility may annually spend and invest up to ten percent of the
total amount spent and invested on energy conservation new text begin , efficient fuel-switching, or load
management new text end improvements on research and development projects that meet the new text begin applicable
new text end definition of energy conservation new text begin , efficient fuel-switching, or load management new text end improvement.

(h) A generation and transmission cooperative electric association or municipal power
agency that provides energy services to consumer-owned utilities may file a plan under this
subdivision on behalf of the consumer-owned utilities to which the association or agency
provides energy services and may make investments, offer conservation programs, and
otherwise fulfill the energy-savings goals and reporting requirements of this subdivision
for those consumer-owned utilities on an aggregate basis.

(i) A consumer-owned utility is prohibited from spending for or investing in energy
conservation improvements that directly benefit a large energy facility or a large electric
customer facility the commissioner has exempted under section 216B.241, subdivision 1a.

(j) The energy conservation and optimization plan of a consumer-owned utility may
include activities to improve energy efficiency in the public schools served by the utility.
These activities may include programs to:

(1) increase the efficiency of the school's lighting and heating and cooling systems;

(2) recommission buildings;

(3) train building operators; and

(4) provide opportunities to educate students, teachers, and staff regarding energy
efficiency measures implemented at the school.

(k) A consumer-owned utility may request that the commissioner adjust the
consumer-owned utility's minimum goal for energy savings from energy conservation
improvements under subdivision 2, paragraph (a), for the duration of the plan filed under
this subdivision. The request must be made by January 1 of the year when the
consumer-owned utility must file a plan under this subdivision. The request must be based
on:

(1) historical energy conservation improvement program achievements;

(2) customer class makeup;

(3) projected load growth;

(4) an energy conservation potential study that estimates the amount of cost-effective
energy conservation potential that exists in the consumer-owned utility's service territory;

(5) the cost-effectiveness and quality of the energy conservation programs offered by
the consumer-owned utility; and

(6) other factors the commissioner and consumer-owned utility determine warrant an
adjustment.

The commissioner must adjust the energy savings goal to a level the commissioner determines
is supported by the record, but must not approve a minimum energy savings goal from
energy conservation improvements that is less than an average of 0.95 percent per year over
the consecutive years of the plan's duration, including the year the minimum energy savings
goal is adjusted.

(l) A consumer-owned utility filing a conservation and optimization plan that includes
an efficient fuel-switching program deleted text begin to achieve the utility's energy savings goal deleted text end must, as part
of the filing, demonstrate deleted text begin by a comparison of greenhouse gas emissions between the fuels deleted text end
that the requirements of subdivision 8 are met deleted text begin , using a full fuel-cycle energy analysis deleted text end .

Sec. 13.

Minnesota Statutes 2022, section 216B.2403, subdivision 5, is amended to read:

Subd. 5.

Energy conservation programs for low-income households.

(a) A
consumer-owned utility subject to this section must provide energy conservation programs
to low-income households. The commissioner must evaluate a consumer-owned utility's
plans under this section by considering the consumer-owned utility's historic spending on
energy conservation programs directed to low-income households, the rate of customer
participation in and the energy savings resulting from those programs, and the number of
low-income persons residing in the consumer-owned utility's service territory. A municipal
utility that furnishes natural gas service must spend at least 0.2 percent of the municipal
utility's most recent three-year average gross operating revenue from residential customers
in Minnesota on energy conservation programs for low-income households. A
consumer-owned utility that furnishes electric service must spend at least 0.2 percent of the
consumer-owned utility's gross operating revenue from residential customers in Minnesota
on energy conservation programs for low-income households. The requirement under this
paragraph applies to each generation and transmission cooperative association's aggregate
gross operating revenue from the sale of electricity to residential customers in Minnesota
by all of the association's member distribution cooperatives.

(b) To meet all or part of the spending requirements of paragraph (a), a consumer-owned
utility may contribute money to the energy and conservation account established in section
216B.241, subdivision 2a. An energy conservation optimization plan must state the amount
of contributions the consumer-owned utility plans to make to the energy and conservation
account. Contributions to the account must be used for energy conservation programs serving
low-income households, including renters, located in the service area of the consumer-owned
utility making the contribution. Contributions must be remitted to the commissioner by
February 1 each year.

(c) The commissioner must establish energy conservation programs for low-income
households funded through contributions to the energy and conservation account under
paragraph (b). When establishing energy conservation programs for low-income households,
the commissioner must consult political subdivisions, utilities, and nonprofit and community
organizations, including organizations providing energy and weatherization assistance to
low-income households. The commissioner must record and report expenditures and energy
savings achieved as a result of energy conservation programs for low-income households
funded through the energy and conservation account in the report required under section
216B.241, subdivision 1c, paragraph (f). The commissioner may contract with a political
subdivision, nonprofit or community organization, public utility, municipality, or
consumer-owned utility to implement low-income programs funded through the energy and
conservation account.

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

(e) The commissioner must develop and establish guidelines for determining the eligibility
of multifamily buildings to participate in energy conservation programs provided to
low-income households. Notwithstanding the definition of low-income household in section
216B.2402, a consumer-owned utility or association may apply the most recent guidelines
published by the department for purposes of determining the eligibility of multifamily
buildings to participate in low-income programs. The commissioner must convene a
stakeholder group to review and update these guidelines by August 1, 2021, and at least
once every five years thereafter. The stakeholder group must include but is not limited to
representatives of public utilities; municipal electric or gas utilities; electric cooperative
associations; multifamily housing owners and developers; and low-income advocates.

(f) Up to 15 percent of a consumer-owned utility's spending on low-income energy
conservation programs may be spent on preweatherization measures. A consumer-owned
utility is prohibited from claiming energy savings from preweatherization measures toward
the consumer-owned utility's energy savings goal.

(g) The commissioner must, by order, establish a list of preweatherization measures
eligible for inclusion in low-income energy conservation programs no later than March 15,
2022.

(h) A Healthy AIR (Asbestos Insulation Removal) account is established as a separate
account in the special revenue fund in the state treasury. A consumer-owned utility may
elect to contribute money to the Healthy AIR account to provide preweatherization measures
for households eligible for weatherization assistance from the state weatherization assistance
program in section 216C.264. Remediation activities must be executed in conjunction with
federal weatherization assistance program services. Money contributed to the account by a
consumer-owned utility counts toward: (1) the minimum low-income spending requirement
under paragraph (a); and (2) the cap on preweatherization measures under paragraph (f).
Money in the account is annually appropriated to the commissioner of commerce to pay for
Healthy AIR-related activities.

new text begin (i) This paragraph applies to a consumer-owned utility that supplies electricity to a
low-income household whose primary heating fuel is supplied by an entity other than a
public utility. Any spending on space and water heating energy conservation improvements
and efficient fuel-switching by the consumer-owned utility on behalf of the low-income
household may be applied to the consumer owned utility's spending requirement under
paragraph (a). To the maximum extent possible, a consumer-owned utility providing services
under this paragraph must offer the services in conjunction with weatherization services
provided under section 216C.264.
new text end

Sec. 14.

Minnesota Statutes 2022, section 216B.2403, subdivision 8, is amended to read:

Subd. 8.

Criteria for efficient fuel-switching improvements.

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

(1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basis new text begin , using (i) the consumer-owned utility's or the utility's
electricity supplier's annual system average efficiency, or (ii) if the utility elects, a seasonal,
monthly, or more granular level of analysis for the electric utility system over the measure's
life new text end ;

(2) results in a net reduction of statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric consumer-owned utility, the reduction in emissions
must be measured deleted text begin based on the hourly emissions profile of the consumer-owned utility or
the utility's electricity supplier, as reported in the most recent resource plan approved by
the commission under section 216B.2422. If the hourly emissions profile is not available,
the commissioner must develop a method consumer-owned utilities must use to estimate
that value deleted text end new text begin using (i) the consumer-owned utility's or the utility's electricity supplier's annual
average emissions factor, or (ii) if the utility elects, a seasonal, monthly, or more granular
level of analysis for the electric utility system over the measure's life new text end ; new text begin and
new text end

(3) is cost-effective, considering the costs and benefits from the perspective of the
consumer-owned utility, participants, and society deleted text begin ; and deleted text end new text begin .
new text end

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

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

Sec. 15.

Minnesota Statutes 2022, section 216B.241, subdivision 1c, is amended to read:

Subd. 1c.

Public utility; energy-saving goals.

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

(b) A public utility providing electric service has an annual energy-savings goal equivalent
to 1.75 percent of gross annual retail energy sales unless modified by the commissioner
under paragraph (c). A public utility providing natural gas service has an annual
energy-savings goal equivalent to one percent of gross annual retail energy sales, which
cannot be lowered by the commissioner. The savings goals must be calculated based on the
most recent three-year weather-normalized average. A public utility providing electric
service may elect to carry forward energy savings in excess of 1.75 percent for a year to
the succeeding three calendar years, except that savings from electric utility infrastructure
projects allowed under paragraph (d) may be carried forward for five years. A public utility
providing natural gas service may elect to carry forward energy savings in excess of one
percent for a year to the succeeding three calendar years. A particular energy savings can
only be used to meet one year's goal.

(c) In its energy conservation and optimization plan filing, a public utility 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.

(d) 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.

The balance of the 1.75 percent annual energy savings goal may be achieved through
energy savings from:

(1) additional energy conservation improvements;

(2) electric utility infrastructure projects approved by the commission under section
216B.1636 that result in increased efficiency greater than would have occurred through
normal maintenance activity; or

(3) 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.

(e) A public 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: (1) the costs and benefits
to ratepayers, the utility, participants, and society; (2) the rate at which a public utility is
increasing both its energy savings and its expenditures on energy conservation; and (3) the
public utility's lifetime energy savings and cumulative energy savings.

(f) On an annual basis, the commissioner shall produce and make publicly available a
report on the annual energy and capacity savings and estimated carbon dioxide reductions
achieved by the programs under this section and section 216B.2403 for the two most recent
years for which data is available. The report must also include information regarding any
annual energy sales or generation capacity increases resulting from efficient fuel-switching
improvements. 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, and must estimate progress made toward the statewide energy-savings
goal under section 216B.2401.

deleted text begin (g) Notwithstanding any provision to the contrary, until July 1, 2026, spending by a
public utility subject to this section on efficient fuel-switching improvements to meet energy
savings goals under this section must not exceed 0.35 percent per year, averaged over three
years, of the public utility's gross annual retail energy sales.
deleted text end

Sec. 16.

Minnesota Statutes 2022, section 216B.241, subdivision 2, is amended to read:

Subd. 2.

Public utility; energy conservation and optimization plans.

(a) The
commissioner may require a public utility 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.

(b) A public utility shall file an energy conservation and optimization plan by June 1,
on a schedule determined by order of the commissioner, but at least every three years. As
provided in subdivisions 11 to 13, plans may include programs for efficient fuel-switching
improvements and load management. An individual utility program may combine elements
of energy conservation, load management, or efficient fuel-switching. The plan must estimate
the lifetime energy savings and cumulative lifetime energy savings projected to be achieved
under the plan. A plan filed by a public utility by June 1 must be approved or approved as
modified by the commissioner by December 1 of that same year.

(c) The commissioner shall evaluate the plan 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 an energy conservation 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.

(d) 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.

(e) Each public utility subject to this subdivision may spend and invest annually up to
ten percent of the total amount deleted text begin spent and invested deleted text end new text begin that the public utility spends and invests new text end
on energy conservation new text begin , efficient fuel-switching, or load management new text end improvements under
this section deleted text begin by the public utility deleted text end on research and development projects that meet the new text begin applicable
new text end definition of energy conservation new text begin , efficient fuel-switching, or load management new text end improvement.

(f) The commissioner shall consider and may require a public utility to undertake an
energy conservation deleted text begin program deleted text end new text begin or efficient fuel-switching program, subject to the requirements
of subdivisions 11 and 12, that is new text end suggested by an outside source, including a political
subdivision, a nonprofit corporation, or community organization. new text begin When approving a proposal
under this paragraph, the commissioner must consider the qualifications and experience of
the entity proposing the program and any other criteria the commissioner deems relevant.
new text end

(g) A public utility, a political subdivision, or a nonprofit or community organization
that has suggested an energy conservation program, the attorney general acting on behalf
of consumers and small business interests, or a public utility customer that has suggested
an energy conservation 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 energy conservation 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 an energy conservation program
is not in the public interest.

(h) The commissioner may order a public utility to include, with the filing of the public
utility's annual status report, the results of an independent audit of the public 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 public utility. The audit must
specify the energy savings or increased efficiency in the use of energy within the service
territory of the public utility that is the result of the public utility's spending and investments.
The audit must evaluate the cost-effectiveness of the public utility's conservation programs.

(i) The energy conservation and optimization plan of each public utility subject to this
section must include activities to improve energy efficiency in public schools served by the
utility. As applicable to each public utility, at a minimum the activities must include programs
to increase the efficiency of the school's lighting and heating and cooling systems, and to
provide for building recommissioning, building operator training, and opportunities to
educate students, teachers, and staff regarding energy efficiency measures implemented at
the school.

(j) The commissioner may require investments or spending greater than the amounts
proposed in a plan filed under this subdivision or section 216C.17 for a public utility whose
most recent advanced forecast required under section 216B.2422 projects a peak demand
deficit of 100 megawatts or more within five years under midrange forecast assumptions.

(k) A public utility filing a conservation and optimization plan that includes an efficient
fuel-switching program deleted text begin to achieve the utility's energy savings goal deleted text end must, as part of the filing,
demonstrate deleted text begin by a comparison of greenhouse gas emissions between the fuels deleted text end that the
requirements of subdivisions 11 or 12 are met, as applicable deleted text begin , using a full fuel-cycle energy
analysis deleted text end .

Sec. 17.

Minnesota Statutes 2022, section 216B.241, subdivision 11, is amended to read:

Subd. 11.

Programs for efficient fuel-switching improvements; electric utilities.

(a)
A public utility providing electric service at retail may include in the plan required under
subdivision 2 new text begin a proposed goal for efficient fuel-switching improvements that the utility
expects to achieve under the plan and the new text end programs to implement efficient fuel-switching
improvements or combinations of energy conservation improvements, fuel-switching
improvements, and load management. For each program, the public utility must provide a
proposed budget, an analysis of the program's cost-effectiveness, and estimated net energy
and demand savings.

(b) The department may approve proposed programs for efficient fuel-switching
improvements if the department determines the improvements meet the requirements of
paragraph (d). deleted text begin For fuel-switching improvements that require the deployment of electric
technologies, the department must also consider whether the fuel-switching improvement
can be operated in a manner that facilitates the integration of variable renewable energy
into the electric system. The net benefits from an efficient fuel-switching improvement that
is integrated with an energy efficiency program approved under this section may be counted
toward the net benefits of the energy efficiency program, if the department determines the
primary purpose and effect of the program is energy efficiency.
deleted text end

(c) A public utility may file a rate schedule with the commission that provides for annual
cost recovery of reasonable and prudent costs to implement and promote efficient
fuel-switching programs. The new text begin utility, department, or other entity may propose, and the
new text end commission may deleted text begin not deleted text end approve new text begin , modify, or reject, new text end a new text begin proposal for a new text end financial incentive to
encourage efficient fuel-switching programs operated by a public utility providing electric
service new text begin approved under this subdivision. When making a decision on the financial incentive
proposal, the commission must apply the considerations established in section 216B.16,
subdivision 6c, paragraphs (b) and (c) new text end .

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

(1) results in a net reduction in the amount of source energy consumed for a particular
use, measured on a fuel-neutral basis new text begin , using (i) the utility's annual system average efficiency,
or (ii) if the utility elects, a seasonal, monthly, or more granular level of analysis for the
electric utility system over the measure's life new text end ;

(2) results in a net reduction of statewide greenhouse gas emissions as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric utility, the reduction in emissions must be measured
deleted text begin based on the hourly emission profile of the electric utility, using the hourly emissions profile
in the most recent resource plan approved by the commission under section 216B.2422 deleted text end new text begin
using (i) the utility's annual average emissions factor, or (ii) if the utility elects, a seasonal,
monthly or more granular level of analysis, for the electric utility system over the measure's
life new text end ; new text begin and
new text end

(3) is cost-effective, considering the costs and benefits from the perspective of the utility,
participants, and society deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) is installed and operated in a manner that improves the utility's system load factor.
deleted text end

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

Sec. 18.

Minnesota Statutes 2022, section 216B.241, subdivision 12, is amended to read:

Subd. 12.

Programs for efficient fuel-switching improvements; natural gas
utilities.

(a) As part of a public utility's plan filed under subdivision 2, a public utility that
provides natural gas service to Minnesota retail customers may propose one or more programs
to install electric technologies that reduce the consumption of natural gas by the utility's
retail customers as an energy conservation improvement. The commissioner may approve
a proposed program if the commissioner, applying the technical criteria developed under
section 216B.241, subdivision 1d, paragraph (e), determines that:

(1) the electric technology to be installed meets the criteria established under section
216B.241, subdivision 11, paragraph (d), clauses (1) and (2); and

(2) the program is cost-effective, considering the costs and benefits to ratepayers, the
utility, participants, and society.

(b) If a program is approved by the commission under this subdivision, the public utility
may count the program's energy savings toward its energy savings goal under section
216B.241, subdivision 1c. Notwithstanding section 216B.2402, subdivision 4, efficient
fuel-switching achieved through programs approved under this subdivision is energy
conservation.

(c) A public utility may file rate schedules with the commission that provide annual
cost-recovery for programs approved by the department under this subdivision, including
reasonable and prudent costs to implement and promote the programs.

(d) The commission may approve, modify, or reject a proposal made by the department
or a utility for an incentive plan to encourage efficient fuel-switching programs approved
under this subdivision, applying the considerations established under section 216B.16,
subdivision 6c, paragraphs (b) and (c). The commission may approve a financial incentive
mechanism that is calculated based on the combined energy savings and net benefits that
the commission has determined have been achieved by a program approved under this
subdivision, provided the commission determines that the financial incentive mechanism
is in the ratepayers' interest.

deleted text begin (e) A public utility is not eligible for a financial incentive for an efficient fuel-switching
program under this subdivision in any year in which the utility achieves energy savings
below one percent of gross annual retail energy sales, excluding savings achieved through
fuel-switching programs.
deleted text end

Sec. 19.

Minnesota Statutes 2022, section 216B.2425, subdivision 1, is amended to read:

Subdivision 1.

List.

The commission shall maintain a list of certified high-voltage
transmission line new text begin and grid enhancing technology new text end projects.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2025.
new text end

Sec. 20.

Minnesota Statutes 2022, section 216B.2425, is amended by adding a subdivision
to read:

new text begin Subd. 1a. 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) "Capacity" means the maximum amount of electricity that can flow through a
transmission line while observing industry safety standards.
new text end

new text begin (c) "Congestion" means a condition in which a lack of transmission line capacity prevents
the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
new text end

new text begin (d) "Dynamic line rating" means hardware or software used to calculate the thermal
limit of existing transmission lines at a specific point in time by incorporating information
on real-time and forecasted weather conditions.
new text end

new text begin (e) "Grid enhancing technology" means hardware or software that reduces congestion
or enhances the flexibility of the transmission system by increasing the capacity of a
high-voltage transmission line or rerouting electricity from overloaded to uncongested lines,
while maintaining industry safety standards. Grid enhancing technologies include but are
not limited to dynamic line rating, advanced power flow controllers, and topology
optimization.
new text end

new text begin (f) "Power flow controller" means hardware and software used to reroute electricity
from overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (g) "Thermal limit" means the temperature a transmission line reaches when heat from
the electric current flow within the transmission line causes excessive sagging of the
transmission line.
new text end

new text begin (h) "Topology optimization" means a software technology that uses mathematical models
to identify reconfigurations in the transmission grid in order to reroute electricity from
overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (i) "Transmission line" has the meaning given to "high-voltage transmission line" in
section 216I.02, subdivision 8.
new text end

new text begin (j) "Transmission system" means a network of high-voltage transmission lines owned
or operated by an entity subject to this section that transports electricity to Minnesota
customers.
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. 21.

Minnesota Statutes 2022, section 216B.2425, subdivision 2, is amended to read:

Subd. 2.

List development; transmission new text begin and grid enhancing technology new text end projects
report.

(a) By November 1 of each odd-numbered year, a transmission projects report must
be submitted to the commission by each utility, organization, or company that:

(1) is a public utility, a municipal utility, a cooperative electric association, the generation
and transmission organization that serves each utility or association, or a transmission
company; and

(2) owns or operates electric transmission lines in Minnesota, except a company or
organization that owns a transmission line that serves a single customer or interconnects a
single generating facility.

(b) The report may be submitted jointly or individually to the commission.

(c) The report must:

(1) list specific present and reasonably foreseeable future inadequacies in the transmission
system in Minnesota;

(2) identify alternative means of addressing each inadequacy listed new text begin , including grid
enhancing technologies such as dynamic line rating, power flow controllers, topology
optimization, and other hardware or software that reduce congestion or enhance the flexibility
of the transmission system new text end ;

(3) identify general economic, environmental, and social issues associated with each
alternative; and

(4) provide a summary of public input related to the list of inadequacies and the role of
local government officials and other interested persons in assisting to develop the list and
analyze alternatives.

(d) To meet the requirements of this subdivision, reporting parties may rely on available
information and analysis developed by a regional transmission organization or any subgroup
of a regional transmission organization and may develop and include additional information
as necessary.

(e) In addition to providing the information required under this subdivision, a utility
operating under a multiyear rate plan approved by the commission under section 216B.16,
subdivision 19, shall identify in its report investments that it considers necessary to modernize
the transmission and distribution system by enhancing reliability, improving security against
cyber and physical threats, and by 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2022, section 216B.2427, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section and section 216B.2428,
the following terms have the meanings given.

(b) "Biogas" means gas produced by the anaerobic digestion of biomass, gasification of
biomass, or other effective conversion processes.

(c) "Carbon capture" means the capture of greenhouse gas emissions that would otherwise
be released into the atmosphere.

(d) "Carbon-free resource" means an electricity generation facility whose operation does
not contribute to statewide greenhouse gas emissions, as defined in section 216H.01,
subdivision 2.

new text begin (e) "Disadvantaged community" means a community in Minnesota that is:
new text end

new text begin (1) defined as disadvantaged by the federal agency disbursing federal funds, when the
federal agency is providing funds for an innovative resource; or
new text end

new text begin (2) an environmental justice area, as defined under section 216B.1691, subdivision 1.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end "District energy" means a heating or cooling system that is solar thermal powered
or that uses the constant temperature of the earth or underground aquifers as a thermal
exchange medium to heat or cool multiple buildings connected through a piping network.

deleted text begin (f) deleted text end new text begin (g) new text end "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f), but does not include energy conservation investments that the commissioner
determines could reasonably be included in a utility's conservation improvement program.

deleted text begin (g) deleted text end new text begin (h) new text end "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by
anthropogenic sources within Minnesota and from the generation of electricity imported
from outside the state and consumed in Minnesota, excluding carbon dioxide that is injected
into geological formations to prevent its release to the atmosphere in compliance with
applicable laws.

deleted text begin (h) deleted text end new text begin (i) new text end "Innovative resource" means biogas, renewable natural gas, power-to-hydrogen,
power-to-ammonia, carbon capture, strategic electrification, district energy, and energy
efficiency.

deleted text begin (i) deleted text end new text begin (j) new text end "Lifecycle greenhouse gas emissions" means the aggregate greenhouse gas
emissions resulting from the production, processing, transmission, and consumption of an
energy resource.

deleted text begin (j) deleted text end new text begin (k) new text end "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas
emissions per unit of energy delivered to an end user.

deleted text begin (k) deleted text end new text begin (l) new text end "Nonexempt customer" means a utility customer that has not been included in a
utility's innovation plan under subdivision 3, paragraph (f).

deleted text begin (l) deleted text end new text begin (m) new text end "Power-to-ammonia" means the production of ammonia from hydrogen produced
via power-to-hydrogen using a process that has a lower lifecycle greenhouse gas intensity
than does natural gas produced from conventional geologic sources.

deleted text begin (m) deleted text end new text begin (n) new text end "Power-to-hydrogen" means the use of electricity generated by a carbon-free
resource to produce hydrogen.

deleted text begin (n) deleted text end new text begin (o) new text end "Renewable energy" has the meaning given in section 216B.2422, subdivision
1.

deleted text begin (o) deleted text end new text begin (p) new text end "Renewable natural gas" means biogas that has been processed to be
interchangeable with, and that has a lower lifecycle greenhouse gas intensity than, natural
gas produced from conventional geologic sources.

deleted text begin (p) deleted text end new text begin (q) new text end "Solar thermal" has the meaning given to qualifying solar thermal project in
section 216B.2411, subdivision 2, paragraph (d).

deleted text begin (q) deleted text end new text begin (r) new text end "Strategic electrification" means the installation of electric end-use equipment in
an existing building in which natural gas is a primary or back-up fuel source, or in a newly
constructed building in which a customer receives natural gas service for one or more
end-uses, provided that the electric end-use equipment:

(1) results in a net reduction in statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the life of the equipment when compared to the most efficient
commercially available natural gas alternative; and

(2) is installed and operated in a manner that improves the load factor of the customer's
electric utility.

Strategic electrification does not include investments that the commissioner determines
could reasonably be included in the natural gas utility's conservation improvement program
under section 216B.241.

new text begin (s) "Thermal energy network" means a project that provides heating and cooling to
multiple buildings connected via underground piping containing fluids that, in concert with
heat pumps, exchange thermal energy from the earth, underground or surface waters,
wastewater, or other heat sources.
new text end

deleted text begin (r) deleted text end new text begin (t) new text end "Total incremental cost" means the calculation of the following components of a
utility's innovation plan approved by the commission under subdivision 2:

(1) the sum of:

(i) return of and on capital investments for the production, processing, pipeline
interconnection, storage, and distribution of innovative resources;

(ii) incremental operating costs associated with capital investments in infrastructure for
the production, processing, pipeline interconnection, storage, and distribution of innovative
resources;

(iii) incremental costs to procure innovative resources from third parties;

(iv) incremental costs to develop and administer programs; and

(v) incremental costs for research and development related to innovative resources;

(2) less the sum of:

(i) value received by the utility upon the resale of innovative resources or innovative
resource by-products, including any environmental credits included with the resale of
renewable gaseous fuels or value received by the utility when innovative resources are used
as vehicle fuel;

(ii) cost savings achieved through avoidance of purchases of natural gas produced from
conventional geologic sources, including but not limited to avoided commodity purchases
and avoided pipeline costs; and

(iii) other revenues received by the utility that are directly attributable to the utility's
implementation of an innovation plan.

deleted text begin (s) deleted text end new text begin (u) new text end "Utility" means a public utility, as defined in section 216B.02, subdivision 4, that
provides natural gas sales or natural gas transportation services to customers in Minnesota.

Sec. 23.

Minnesota Statutes 2022, section 216B.2427, is amended by adding a subdivision
to read:

new text begin Subd. 9a. new text end

new text begin Thermal energy networks. new text end

new text begin Innovation plans filed after July 1, 2024, under
this section by a utility with more than 800,000 customers must include spending of at least
15 percent of the utility's proposed total incremental costs over the five-year term of the
proposed innovation plan for thermal energy networks projects. If the utility has developed
or is developing thermal energy network projects outside of an approved innovation plan,
the utility may apply the budget for the projects toward the 15 percent minimum requirement
without counting the costs against the limitations on utility customer costs under subdivision
3.
new text end

Sec. 24.

Minnesota Statutes 2023 Supplement, section 216C.08, is amended to read:

216C.08 JURISDICTION.

new text begin (a) new text end The commissioner has sole authority and responsibility deleted text begin for the administration of
sections 216C.05 to 216C.30 and 216C.375 deleted text end new text begin to administer this chapter new text end . Other laws
notwithstanding, the authority granted new text begin to new text end the commissioner deleted text begin shall supersede deleted text end new text begin under this section
supersedes new text end the authority given any other agency whenever overlapping, duplication, or
additional administrative or legal procedures might occur in deleted text begin the administration of sections
216C.05 to 216C.30 and 216C.375 deleted text end new text begin administering this chapter new text end . The commissioner shall
consult with other state departments or agencies in matters related to energy and shall
contract with deleted text begin them deleted text end new text begin the other state departments or agencies new text end to provide appropriate services
to effectuate the purposes of deleted text begin sections 216C.05 to 216C.30 and 216C.375 deleted text end new text begin this chapter new text end . Any
other department, agency, or official of this state or political subdivision thereof which
would in any way affect the administration or enforcement of deleted text begin sections 216C.05 to 216C.30
and 216C.375 deleted text end new text begin this chapter new text end shall cooperate and coordinate all activities with the commissioner
to assure orderly and efficient administration and enforcement of deleted text begin sections 216C.05 to
216C.30 and 216C.375 deleted text end new text begin this chapter new text end .

new text begin (b) new text end The commissioner shall designate a liaison officer whose duty shall be to insure the
maximum possible consistency in procedures and to eliminate duplication between the
commissioner and the other agencies that may be involved in energy.

Sec. 25.

Minnesota Statutes 2023 Supplement, section 216C.09, is amended to read:

216C.09 COMMISSIONER DUTIES.

(a) The commissioner shall:

(1) manage the department as the central repository within the state government for the
collection of data on energy;

(2) prepare and adopt an emergency allocation plan specifying actions to be taken in the
event of an impending serious shortage of energy, or a threat to public health, safety, or
welfare;

(3) undertake a continuing assessment of trends in the consumption of all forms of energy
and analyze the social, economic, and environmental consequences of these trends;

(4) carry out energy deleted text begin conservation deleted text end measures as specified by the legislature and recommend
to the governor and the legislature additional energy policies and conservation measures as
required to meet the objectives of deleted text begin sections 216C.05 to 216C.30 and 216C.375 deleted text end new text begin this chapter new text end ;

(5) collect and analyze data relating to present and future demands and resources for all
sources of energy;

(6) evaluate policies governing the establishment of rates and prices for energy as related
to energy conservation, and other goals and policies of deleted text begin sections 216C.05 to 216C.30 and
216C.375 deleted text end new text begin this chapter new text end , and make recommendations for changes in energy pricing policies
and rate schedules;

(7) study the impact and relationship of the state energy policies to international, national,
and regional energy policies;

(8) design and implement a state program for the conservation of energy; this program
shall include but not be limited to, general commercial, industrial, and residential, and
transportation areas; such program shall also provide for the evaluation of energy systems
as they relate to lighting, heating, refrigeration, air conditioning, building design and
operation, and appliance manufacturing and operation;

(9) inform and educate the public about the sources and uses of energy and the ways in
which persons can conserve energy;

(10) dispense funds made available for the purpose of research studies and projects of
professional and civic orientation, which are related to either energy conservation, resource
recovery, or the development of alternative energy technologies which conserve
nonrenewable energy resources while creating minimum environmental impact;

(11) charge other governmental departments and agencies involved in energy-related
activities with specific information gathering goals and require that those goals be met;

(12) design a comprehensive program for the development of indigenous energy
resources. The program shall include, but not be limited to, providing technical,
informational, educational, and financial services and materials to persons, businesses,
municipalities, and organizations involved in the development of solar, wind, hydropower,
peat, fiber fuels, biomass, and other alternative energy resources. The program shall be
evaluated by the alternative energy technical activity; and

(13) dispense loans, grants, or other financial aid from money received from litigation
or settlement of alleged violations of federal petroleum-pricing regulations made available
to the department for that purpose.

(b) Further, the commissioner may participate fully in hearings before the Public Utilities
Commission on matters pertaining to rate design, cost allocation, efficient resource utilization,
utility conservation investments, small power production, cogeneration, and other rate issues.
The commissioner shall support the policies stated in section 216C.05 and shall prepare
and defend testimony proposed to encourage energy conservation improvements as defined
in section 216B.241.

Sec. 26.

Minnesota Statutes 2022, section 216C.10, is amended to read:

216C.10 COMMISSIONER POWERS.

(a) The commissioner may:

(1) adopt rules under chapter 14 as necessary to carry out the purposes of deleted text begin sections
216C.05 to 216C.30 deleted text end new text begin this chapter new text end ;

(2) make all contracts under deleted text begin sections 216C.05 to 216C.30 deleted text end new text begin this chapter new text end and do all things
necessary to cooperate with the United States government, and to qualify for, accept, and
disburse any grant intended deleted text begin for the administration of sections 216C.05 to 216C.30 deleted text end new text begin to
administer this chapter new text end ;

(3) provide on-site technical assistance to units of local government in order to enhance
local capabilities for dealing with energy problems;

(4) administer for the state, energy programs under federal law, regulations, or guidelines,
and coordinate the programs and activities with other state agencies, units of local
government, and educational institutions;

(5) develop a state energy investment plan with yearly energy conservation and alternative
energy development goals, investment targets, and marketing strategies;

(6) perform market analysis studies relating to conservation, alternative and renewable
energy resources, and energy recovery;

(7) assist with the preparation of proposals for innovative conservation, renewable,
alternative, or energy recovery projects;

(8) manage and disburse funds made available for the purpose of research studies or
demonstration projects related to energy conservation or other activities deemed appropriate
by the commissioner;

(9) intervene in certificate of need proceedings before the Public Utilities Commission;

(10) collect fees from recipients of loans, grants, or other financial aid from money
received from litigation or settlement of alleged violations of federal petroleum-pricing
regulations, which fees must be used to pay the department's costs in administering those
financial aids; and

(11) collect fees from proposers and operators of conservation and other energy-related
programs that are reviewed, evaluated, or approved by the department, other than proposers
that are political subdivisions or community or nonprofit organizations, to cover the
department's cost in making the reviewal, evaluation, or approval and in developing additional
programs for others to operate.

(b) Notwithstanding any other law, the commissioner is designated the state agent to
apply for, receive, and accept federal or other funds made available to the state for the
purposes of deleted text begin sections 216C.05 to 216C.30 deleted text end new text begin this chapter new text end .

Sec. 27.

Minnesota Statutes 2023 Supplement, section 216C.331, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Aggregated customer energy use data" means customer energy use data that is
combined into one collective data point per time interval. Aggregated customer energy use
data is data with any unique identifiers or other personal information removed that a
qualifying utility collects and aggregates in at least monthly intervals for an entire building
on a covered property.

(c) "Benchmark" means to electronically input into a benchmarking tool deleted text begin the total deleted text end new text begin whole
building new text end energy use data and other descriptive information about a building that is required
by a benchmarking tool.

(d) "Benchmarking information" means data related to a building's energy use generated
by a benchmarking tool, and other information about the building's physical and operational
characteristics. Benchmarking information includes but is not limited to the building's:

(1) address;

(2) owner and, if applicable, the building manager responsible for operating the building's
physical systems;

(3) total floor area, expressed in square feet;

(4) energy use intensity;

(5) greenhouse gas emissions; and

(6) energy performance score comparing the building's energy use with that of similar
buildings.

(e) "Benchmarking tool" means the United States Environmental Protection Agency's
Energy Star Portfolio Manager tool or an equivalent tool determined by the commissioner.

(f) "Covered property" means any property that is served by an investor-owned utility
in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city
outside the metropolitan area with a population of over 50,000 residents new text begin , as determined by
the Minnesota State Demographic Center, new text end served by a municipal energy utility or
investor-owned utility, and that has one or more buildings containing in sum 50,000 gross
square feet or greater. Covered property does not include:

(1) a residential property containing fewer than five dwelling units;

(2) a property that is: (i) classified as manufacturing under the North American Industrial
Classification System; (ii) an energy-intensive trade-exposed customer, as defined in section
216B.1696; (iii) an electric power generation facility; (iv) a mining facility; or (v) an
industrial building otherwise incompatible with benchmarking in the benchmarking tool,
as determined by the commissioner;

(3) an agricultural building;

(4) a multitenant building that is served by a utility that deleted text begin cannot supply deleted text end new text begin is not supplying new text end
aggregated customer usage data new text begin under subdivision 8 or is not using a customer usage data
aggregation program to supply aggregated customer usage data to the benchmarking tool new text end ;
or

(5) other property types that do not meet the purposes of this section, as determined by
the commissioner.

(g) "Customer energy use data" means data collected from utility customer meters that
reflect the quantity, quality, or timing of customers' energy use.

(h) "Energy" means electricity, natural gas, steam, or another product used to: (1) provide
heating, cooling, lighting, or water heating; or (2) power other end uses in a building.

(i) "Energy performance score" means a numerical value from one to 100 that the Energy
Star Portfolio Manager tool calculates to rate a building's energy efficiency against that of
comparable buildings nationwide.

(j) "Energy Star Portfolio Manager" means an interactive resource management tool
developed by the United States Environmental Protection Agency that (1) enables the
periodic entry of a building's energy use data and other descriptive information about a
building, and (2) rates a building's energy efficiency against that of comparable buildings
nationwide.

(k) "Energy use intensity" means the total annual energy consumed in a building divided
by the building's total floor area.

(l) "Financial distress" means a covered property that, at the time benchmarking is
conducted:

(1) is the subject of a qualified tax lien sale or public auction due to property tax
arrearages;

(2) is controlled by a court-appointed receiver based on financial distress;

(3) is owned by a financial institution through default by the borrower;

(4) has been acquired by deed in lieu of foreclosure; or

(5) has a senior mortgage that is subject to a notice of default.

(m) "Local government" means a statutory or home rule municipality or county.

(n) "Owner" means:

(1) an individual or entity that possesses title to a covered property; or

(2) an agent authorized to act on behalf of the covered property owner.

(o) "Qualifying utility" means deleted text begin a utility serving the covered property, including deleted text end :

(1) an electric or gas utility, including:

(i) an investor-owned electric or gas utility new text begin serving customers in Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, or Washington County, or in any city outside the metropolitan
area with a population of over 50,000 residents, as determined by the Minnesota State
Demographic Center, and serving properties with one or more buildings containing in sum
50,000 gross square feet or greater new text end ; or

(ii) a municipally owned electric or gas utility new text begin serving customers in any city with a
population of over 50,000 residents, as determined by the Minnesota State Demographic
Center, and serving properties with one or more buildings containing in sum 50,000 gross
square feet or greater new text end ;

(2) a natural gas supplier with five or more active commercial connections, accounts,
or customers in the state new text begin and serving customers in Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington County, or in any city outside the metropolitan area with a
population of over 50,000 residents, as determined by the Minnesota State Demographic
Center, and serving properties with one or more buildings containing in sum 50,000 gross
square feet or greater new text end ; or

(3) a district steam, hot water, or chilled water provider new text begin serving customers in Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County, or in any city outside
the metropolitan area with a population of over 50,000 residents, as determined by the
Minnesota State Demographic Center, and serving properties with one or more buildings
containing in sum 50,000 gross square feet or greater new text end .

(p) "Tenant" means a person that occupies or holds possession of a building or part of
a building or premises pursuant to a lease agreement.

(q) "Total floor area" means the sum of gross square footage inside a building's envelope,
measured between the outside exterior walls of the building. Total floor area includes covered
parking structures.

(r) "Utility customer" means the building owner or tenant listed on the utility's records
as the customer liable for payment of the utility service or additional charges assessed on
the utility account.

new text begin (s) "Whole building energy use data" means all energy consumed in a building, whether
purchased from a third party or generated at the building site or from any other source.
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. 28.

Minnesota Statutes 2022, section 216C.435, subdivision 3a, is amended to read:

Subd. 3a.

deleted text begin Cost-effective deleted text end Energy improvements.

" deleted text begin Cost-effective deleted text end Energy improvements"
means:

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

(2) any renovation or retrofitting of qualifying 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 deleted text begin a cost-effective deleted text end new text begin an eligible new text end energy improvement by the
commissioner under section 216B.241, subdivision 1d, paragraph (a);

(3) permanent installation of new or upgraded electrical circuits and related equipment
to enable electrical vehicle charging; or

(4) a 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 deleted text begin identified deleted text end new text begin documented new text end in an energy audit or renewable energy system
feasibility study deleted text begin 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 deleted text end new text begin , along with the
estimated amount of related renewable energy production new text end .

Sec. 29.

Minnesota Statutes 2022, section 216C.435, subdivision 3b, is amended to read:

Subd. 3b.

Commercial PACE loan contractor.

"Commercial PACE loan contractor"
means a person or entity that installs deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements financed
under a commercial PACE loan program.

Sec. 30.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 3e. new text end

new text begin Eligible improvement. new text end

new text begin "Eligible improvement" means one or more energy
improvements, resiliency improvements, or water improvements made to qualifying real
property.
new text end

Sec. 31.

Minnesota Statutes 2022, section 216C.435, subdivision 4, is amended to read:

Subd. 4.

Energy audit.

"Energy audit" means a formal evaluation of the energy
consumption of a building by a certified energy auditor, whose certification is approved by
the commissioner, for the purpose of identifying appropriate energy improvements that
could be made to the building and including an estimate of the deleted text begin length of time a specific
energy improvement will take to repay its purchase and installation costs, based on the
amount of energy saved and estimated future energy prices deleted text end new text begin effective useful life, the reduction
of energy consumption, and the related avoided greenhouse gas emissions resulting from
the proposed eligible improvements new text end .

Sec. 32.

Minnesota Statutes 2023 Supplement, section 216C.435, subdivision 8, is amended
to read:

Subd. 8.

Qualifying commercial real property.

"Qualifying commercial real property"
means a multifamily residential dwelling, a commercial or industrial building, or farmland,
as defined in section 216C.436, subdivision 1b, that the implementing entity has determined,
after review of an energy audit, renewable energy system feasibility study, new text begin water
improvement study, resiliency improvement study, new text end or agronomic assessment, as defined in
section 216C.436, subdivision 1b, can benefit from deleted text begin the installation of cost-effective energy deleted text end new text begin
installing eligible new text end improvements or land and water improvements, as defined in section
216C.436, subdivision 1b. Qualifying commercial real property includes new construction.

Sec. 33.

Minnesota Statutes 2022, section 216C.435, subdivision 10, is amended to read:

Subd. 10.

Renewable energy system feasibility study.

"Renewable energy system
feasibility study" means a written study, conducted by a contractor trained to perform that
analysis, for the purpose of determining the feasibility of installing a renewable energy
system in a building, including an estimate of the deleted text begin length of time a specific deleted text end new text begin effective useful
life, the production of renewable energy, and any related avoided greenhouse gas emissions
of the proposed new text end renewable energy system deleted text begin will take to repay its purchase and installation
costs, based on the amount of energy saved and estimated future energy prices. For a
geothermal energy improvement, the feasibility study must calculate net savings in terms
of nongeothermal energy and costs deleted text end .

Sec. 34.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 11a. new text end

new text begin Resiliency improvement. new text end

new text begin "Resiliency improvement" means one or more
installations or modifications to eligible commercial real property that are designed to
improve a property's resiliency by improving the eligible real property's:
new text end

new text begin (1) structural integrity for seismic events;
new text end

new text begin (2) indoor air quality;
new text end

new text begin (3) durability to resist wind, fire, and flooding;
new text end

new text begin (4) ability to withstand an electric power outage;
new text end

new text begin (5) stormwater control measures, including structural and nonstructural measures to
mitigate stormwater runoff;
new text end

new text begin (6) ability to mitigate the impacts of extreme temperatures; or
new text end

new text begin (7) ability to mitigate greenhouse gas embodied emissions from the eligible real property.
new text end

Sec. 35.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 11b. new text end

new text begin Resiliency improvement feasibility study. new text end

new text begin "Resiliency improvement
feasibility study" means a written study, conducted by a contractor trained to perform the
analysis, that:
new text end

new text begin (1) determines the feasibility of installing a resiliency improvement;
new text end

new text begin (2) documents the improved resiliency capabilities of the property; and
new text end

new text begin (3) estimates the effective useful life of the proposed resiliency improvements.
new text end

Sec. 36.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Water improvement. new text end

new text begin "Water improvement" means one or more installations
or modifications to qualifying commercial real property that are designed to improve water
efficiency or water quality by:
new text end

new text begin (1) reducing water consumption;
new text end

new text begin (2) improving the quality, potability, or safety of water for the qualifying property; or
new text end

new text begin (3) conserving or remediating water, in whole or in part, on qualifying real property.
new text end

Sec. 37.

Minnesota Statutes 2022, section 216C.435, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Water improvement feasibility study. new text end

new text begin "Water improvement feasibility study"
means a written study, conducted by a contractor trained to perform the analysis, that:
new text end

new text begin (1) determines the appropriate water improvements that could be made to the building;
and
new text end

new text begin (2) estimates the effective useful life, the reduction of water consumption, and any
improvement in water quality resulting from the proposed water improvements.
new text end

Sec. 38.

Minnesota Statutes 2022, section 216C.436, subdivision 1, is amended to read:

Subdivision 1.

Program purpose and authority.

An implementing entity may establish
a commercial PACE loan program to finance deleted text begin cost-effective deleted text end energy new text begin , water, and resiliency new text end
improvements to enable owners of qualifying commercial real property to pay for deleted text begin the
cost-effective energy deleted text end new text begin eligible new text end improvements to the qualifying real property with the net
proceeds and interest earnings of revenue bonds authorized in this section. An implementing
entity may limit the number of qualifying commercial real properties for which a property
owner may receive program financing.

Sec. 39.

Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 1b, is
amended to read:

Subd. 1b.

Definitions.

(a) For the purposes of this section, the following terms have the
meanings given.

(b) "Agronomic assessment" means a study by an independent third party that assesses
the environmental impacts of proposed land and water improvements on farmland.

(c) "Farmland" means land classified as 2a, 2b, or 2c for property tax purposes under
section 273.13, subdivision 23.

(d) "Land and water improvement" means:

(1) an improvement to farmland that:

(i) is permanent;

(ii) results in improved agricultural profitability or resiliency;

(iii) reduces the environmental impact of agricultural production; and

(iv) if the improvement affects drainage, complies with the most recent versions of the
applicable following conservation practice standards issued by the United States Department
of Agriculture's Natural Resources Conservation Service: Drainage Water Management
(Code 554), Saturated Buffer (Code 604), Denitrifying Bioreactor (Code 605), and
Constructed Wetland (Code 656); or

(2) water conservation and quality measures, which include permanently affixed
equipment, appliances, or improvements that reduce a property's water consumption or that
enable water to be managed more efficiently.

(e) "Resiliency" means new text begin :
new text end

new text begin (1) new text end the ability of farmland to maintain and enhance profitability, soil health, and water
quality deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) the ability to mitigate greenhouse gas embodied emissions from an eligible real
property; or
new text end

new text begin (3) an increase in building resilience through flood mitigation, stormwater management,
wildfire and wind resistance, energy storage use, or microgrid use.
new text end

Sec. 40.

Minnesota Statutes 2023 Supplement, section 216C.436, subdivision 2, is amended
to read:

Subd. 2.

Program requirements.

A commercial PACE loan program must:

(1) impose requirements and conditions on financing arrangements to ensure timely
repayment;

(2) require an energy audit, renewable energy system feasibility study, new text begin resiliency
improvement study, water improvement study, new text end or agronomic or soil health assessment to
be conducted on the qualifying commercial real property and reviewed by the implementing
entity prior to approval of the financing;

(3) require the inspection new text begin or verification new text end of all deleted text begin installations and a performance verification
of at least ten percent of the cost-effective energy deleted text end new text begin eligible new text end improvements or land and water
improvements financed by the program;

(4) not prohibit the financing of all deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land
and water improvements not otherwise prohibited by this section;

(5) require that all deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land and water
improvements be made to a qualifying commercial real property prior to, or in conjunction
with, an applicant's repayment of financing for deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements
or land and water improvements for deleted text begin that deleted text end new text begin the qualifying commercial real new text end property;

(6) have deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land and water improvements
financed by the program performed by a licensed contractor as required by chapter 326B
or other law or ordinance;

(7) require disclosures in the loan document to borrowers by the implementing entity
of: (i) the risks involved in borrowing, including the risk of foreclosure if a tax delinquency
results from a default; and (ii) all the terms and conditions of the commercial PACE loan
and the installation of deleted text begin cost-effective energy deleted text end new text begin eligible new text end improvements or land and water
improvements, including the interest rate being charged on the loan;

(8) provide financing only to those who demonstrate an ability to repay;

(9) not provide financing for a qualifying commercial real property in which the owner
is not current on mortgage or real property tax payments;

(10) require a petition to the implementing entity by all owners of the qualifying
commercial real property requesting collections of repayments as a special assessment under
section 429.101;

(11) provide that payments and assessments are not accelerated due to a default and that
a tax delinquency exists only for assessments not paid when due;

(12) require that liability for special assessments related to the financing runs with the
qualifying commercial real property; and

(13) prior to financing any improvements to or imposing any assessment upon qualifying
commercial real property, require notice to and written consent from the mortgage lender
of any mortgage encumbering or otherwise secured by the qualifying commercial real
property.

Sec. 41.

Minnesota Statutes 2022, 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 deleted text begin energy deleted text end new text begin eligible new text end
improvements installed, as determined by the implementing entity, but in no event may a
term exceed deleted text begin 20 deleted text end new text begin 30 new text end years;

(2) a principal amount not to exceed the lesser of:

(i) the greater of deleted text begin 20 deleted text end new text begin 30 new text end percent of the assessed value of the real property on which the
improvements are to be installed or deleted text begin 20 deleted text end new text begin 30 new text end percent of the real property's appraised value,
accepted or approved by the mortgage lender; or

(ii) the actual cost of installing the deleted text begin energy deleted text end new text begin eligible new text end improvements, including the costs of
necessary equipment, materials, and labor deleted text begin , deleted text end new text begin ; new text end the costs of each related energy audit deleted text begin or deleted text end new text begin , new text end
renewable energy system feasibility study, new text begin water improvement study, or resiliency
improvement study; new text end 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. 42.

Minnesota Statutes 2022, section 216C.436, subdivision 7, is amended to read:

Subd. 7.

Repayment.

An implementing entity that finances an deleted text begin energy deleted text end new text begin eligible new text end
improvement under this section must:

(1) secure payment with a lien against the qualifying commercial real property; and

(2) collect repayments as a special assessment as provided for in section 429.101 or by
charter, provided that special assessments may be made payable in up to deleted text begin 20 deleted text end new text begin 30 new text end equal annual
installments.

If the implementing entity is an authority, the local government that authorized the
authority to act as implementing entity shall impose and collect special assessments necessary
to pay debt service on bonds issued by the implementing entity under subdivision 8, and
shall transfer all collections of the assessments upon receipt to the authority.

Sec. 43.

Minnesota Statutes 2022, section 216C.436, subdivision 8, is amended to read:

Subd. 8.

Bond issuance; repayment.

(a) An implementing entity may issue revenue
bonds as provided in chapter 475 for the purposes of this section and section 216C.437,
provided the revenue bond must not be payable more than deleted text begin 20 deleted text end new text begin 30 new text end years from the date of
issuance.

(b) The bonds must be payable as to both principal and interest solely from the revenues
from the assessments established in subdivision 7 and section 216C.437, subdivision 28.

(c) No holder of bonds issued under this subdivision may compel any exercise of the
taxing power of the implementing entity that issued the bonds to pay principal or interest
on the bonds, and if the implementing entity is an authority, no holder of the bonds may
compel any exercise of the taxing power of the local government. Bonds issued under this
subdivision are not a debt or obligation of the issuer or any local government that issued
them, nor is the payment of the bonds enforceable out of any money other than the revenue
pledged to the payment of the bonds.

Sec. 44.

Minnesota Statutes 2022, section 216C.436, subdivision 10, is amended to read:

Subd. 10.

Improvements; real property or fixture.

deleted text begin A cost-effective energy deleted text end new text begin An eligible new text end
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.

Sec. 45.

new text begin [216C.47] GEOTHERMAL PLANNING 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 following terms have
the meanings given.
new text end

new text begin (b) "Eligible applicant" means a county, city, town, or the Metropolitan Council.
new text end

new text begin (c) "Geothermal energy system" means a system that heats and cools one or more
buildings by using the constant temperature of the earth as both a heat source and heat sink,
and a heat exchanger consisting of an underground closed loop system of piping containing
a liquid to absorb and relinquish heat within the earth. Geothermal energy system includes:
new text end

new text begin (1) a bored geothermal heat exchanger, as defined in section 103I.005;
new text end

new text begin (2) a groundwater thermal exchange device, as defined in section 103I.005; and
new text end

new text begin (3) a submerged closed loop heat exchanger, as defined in section 103I.005.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A geothermal planning grant program is established in the
department to provide financial assistance to eligible applicants to examine the technical
and economic feasibility of installing geothermal energy systems.
new text end

new text begin Subd. 3. new text end

new text begin Account established. new text end

new text begin (a) The geothermal planning grant account is established
as a separate account in the special revenue fund in the state treasury. The commissioner
must credit to the account appropriations and transfers to the account. Earnings, including
interest, dividends, and any other earnings arising from assets of the account, must be
credited to the account. Money remaining in the account at the end of a fiscal year does not
cancel to the general fund, but remains in the account until June 30, 2029. The commissioner
must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner to (1) award geothermal
planning grants to eligible applicants, and (2) reimburse the reasonable costs incurred by
the department to administer this section.
new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin An applicant seeking a grant under this section must
submit an application to the commissioner on a form developed by the commissioner. The
commissioner must develop administrative procedures to govern the application and grant
award process. The commissioner may contract with a third party to conduct some or all of
the program's operations.
new text end

new text begin Subd. 5. new text end

new text begin Grant awards. new text end

new text begin (a) A grant awarded under this process may be used to pay the
total cost of the activities eligible for funding under subdivision 6, up to a limit of $150,000.
new text end

new text begin (b) The commissioner must endeavor to award grants to eligible applicants in all regions
of Minnesota.
new text end

new text begin (c) Grants may be awarded under this section only to projects whose work is completed
after July 1, 2024.
new text end

new text begin Subd. 6. new text end

new text begin Eligible grant expenditures. new text end

new text begin Activities that may be funded with a grant awarded
under this section include:
new text end

new text begin (1) analysis of the heating and cooling demand of the building or buildings that consume
energy from the geothermal energy system;
new text end

new text begin (2) evaluation of equipment that could be combined with a geothermal energy system
to meet the building's heating and cooling requirements;
new text end

new text begin (3) analysis of the geologic conditions of the earth in which a geothermal energy system
operates, including the drilling of one or more test wells to characterize geologic materials
and to measure properties of the earth and aquifers that impact the feasibility of installing
and operating a geothermal energy system; and
new text end

new text begin (4) preparation of a financial analysis of the project.
new text end

new text begin Subd. 7. new text end

new text begin Contractor and subcontractor requirements. new text end

new text begin Contractors and subcontractors
that perform work funded with a grant awarded under this section must have experience
installing geothermal energy systems.
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. 46.

new text begin [216C.48] STANDARDIZED SOLAR PLAN REVIEW SOFTWARE;
TECHNICAL ASSISTANCE; FINANCIAL INCENTIVE.
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) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1.
new text end

new text begin (c) "Permitting authority" means a unit of local government in Minnesota that has
authority to review and issue permits to install residential solar projects and solar plus energy
storage system projects within the unit of local government's jurisdiction.
new text end

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

new text begin (e) "Residential solar project" means the installation of a photovoltaic device at a
residence located in Minnesota.
new text end

new text begin (f) "SolarAPP+" means the most recent version of the Solar Automated Permit Processing
Plus software, developed by the National Renewable Energy Laboratory and available free
to permitting authorities from the United States Department of Energy, that uses a web-based
portal to automate the solar project plan review and permit issuance processes for residential
solar projects that are compliant with applicable building and electrical codes.
new text end

new text begin (g) "Solar plus energy storage system project" means a residential solar project installed
in conjunction with an energy storage system at the same residence.
new text end

new text begin Subd. 2. new text end

new text begin Program establishment. new text end

new text begin A program is established in the department to provide
technical assistance and financial incentives to local units of government that issue permits
for residential solar projects and solar plus energy storage system projects in order to
incentivize a permitting authority to adopt the SolarAPP+ software to standardize, automate,
and streamline the review and permitting process.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin An incentive may be awarded under this section to a permitting
authority that has deployed SolarAPP+ and made SolarAPP+ available on the permitting
authority's website.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) A permitting authority must submit an application for a financial
incentive under this section to the commissioner on a form developed by the commissioner.
new text end

new text begin (b) An application may be submitted for a financial incentive under this section after
SolarAPP+ has become operational in the permitting authority's jurisdiction.
new text end

new text begin Subd. 5. new text end

new text begin Review and grant award process. new text end

new text begin The commissioner must develop
administrative procedures to govern the application review and incentive award process
under this section.
new text end

new text begin Subd. 6. new text end

new text begin Incentive awards. new text end

new text begin Beginning no later than March 1, 2025, the commissioner
may award a financial incentive to a permitting authority under this section only if the
commissioner has determined that the permitting authority meets verification requirements
established by the commissioner that ensure a permitting authority has made SolarAPP+
operational within the permitting authority's jurisdiction and that SolarAPP+ is available
on the permitting authority's website.
new text end

new text begin Subd. 7. new text end

new text begin Incentive amount. new text end

new text begin (a) An incentive awarded under this section must be no less
than $5,000 and no greater than $20,000.
new text end

new text begin (b) The commissioner may vary the amount of an incentive awarded under this section
by considering the following factors:
new text end

new text begin (1) the population of the permitting authority;
new text end

new text begin (2) the number of permits for solar projects issued by the permitting authority using
conventional review processes;
new text end

new text begin (3) whether the SolarAPP+ software has been adopted on a stand-alone basis or has been
integrated with other permit management software utilized by the permitting authority; and
new text end

new text begin (4) whether the permitting jurisdiction has participated in other sustainability programs,
including but not limited to GreenStep Cities and the United States Department of Energy's
SolSmart and Charging Smart programs.
new text end

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

new text begin The department must provide technical assistance to
eligible permitting authorities seeking to apply for an incentive under this section.
new text end

new text begin Subd. 9. new text end

new text begin Program promotion. new text end

new text begin The department must develop an education and outreach
program to make permitting authorities aware of the incentive offered under this section,
including by convening workshops, producing educational materials, and using other
mechanisms to promote the program, including but not limited to utilizing the efforts of the
League of Minnesota Cities, the Association of Minnesota Counties, the Community Energy
Resource Teams established under section 216C.385, and similar organizations to reach
permitting authorities.
new text end

new text begin Subd. 10. new text end

new text begin Account established. new text end

new text begin (a) The SolarAPP+ program account is established in
the special revenue account in the state treasury. The commissioner must credit to the account
appropriations and transfers to the account. Earnings, including interest, dividends, and any
other earnings arising from assets of the account, must be credited to the account. Money
remaining in the account at the end of a fiscal year does not cancel to the general fund but
remains in the account until June 30, 2028. The commissioner must manage the account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the purposes of this
section and to reimburse the reasonable costs incurred by the department to administer this
section.
new text end

Sec. 47.

Laws 2023, chapter 60, article 10, section 2, subdivision 2, is amended to read:

Subd. 2. Energy Resources

96,083,000

27,617,000

(a) $5,861,000 the first year and $6,038,000
the second year are to the division of energy
resources for operating expenses.

(b) $150,000 the first year and $150,000 the
second year are to remediate vermiculite
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.

(c) $1,138,000 in the first year is transferred
from the general fund to the solar for schools
program account under Minnesota Statutes,
section 216C.375, to provide financial
assistance to schools that are state colleges
and universities to purchase and install solar
energy generating systems. This appropriation
must be expended on schools located outside
the electric service territory of the public
utility that is subject to Minnesota Statutes,
section 116C.779. Money under this paragraph
is available until June 30, 2034. Any money
remaining on June 30, 2034, cancels to the
general fund.

(d) $189,000 each year is for activities
associated with a utility's implementation of
a natural gas innovation plan under Minnesota
Statutes, section 216B.2427.

(e) $15,000,000 in the first year is transferred
from the general fund to the solar for schools
program account in the special revenue fund
for grants under the solar for schools program
established under Minnesota Statutes, section
216C.375. The money under this paragraph
must be expended on schools located outside
the electric service territory of the public
utility that is subject to Minnesota Statutes,
section 116C.779.

(f) $500,000 each year is for the strengthen
Minnesota homes program under Minnesota
Statutes, section 65A.299, subdivision 4.
Money under this paragraph is transferred
from the general fund to strengthen Minnesota
homes account in the special revenue fund.
This is a onetime appropriation.

(g) $20,000,000 the first year and $18,737,000
the second year are for weatherization and
preweatherization work to serve additional
households and allow for services that would
otherwise be denied due to current federal
limitations related to the federal weatherization
assistance program. Money under this
paragraph is transferred from the general fund
to the preweatherization account in the special
revenue fund under Minnesota Statutes,
section 216C.264, subdivision 1c. The base
in fiscal years 2026 and later is $3,199,000.

(h) $15,000,000 the first year is for a grant to
an investor-owned electric utility that has at
least 50,000 retail electric customers, but no
more than 200,000 retail electric customers,
to increase the capacity and improve the
reliability of an existing high-voltage direct
current transmission line that runs between
North Dakota and Minnesota. This is a
onetime appropriation and must be used to
support the cost-share component of a federal
grant application to a program enacted in the
federal Infrastructure Investment and Jobs Act,
Public Law 117-58, and may otherwise be
used to reduce the cost of the high-voltage
direct current transmission project upgrade
and to reimburse the reasonable costs incurred
by the department to administer the grant. This
appropriation is available until June 30, 2034.

(i) $300,000 the first year is for technical
assistance and administrative support for the
Tribal Advocacy Council on Energy under
article 12, section 71. As part of the technical
assistance and administrative support for the
program, the commissioner must hire a Tribal
liaison to support the Tribal Advocacy Council
on Energy and advise the department on the
development of a culturally responsive clean
energy grants program based on the priorities
identified by the Tribal Advocacy Council on
Energy.

(j) $3,000,000 the first year is for a grant to
Clean Energy Economy Minnesota for the
Minnesota Energy Alley initiative to secure
the state's energy and economic development
future. The appropriation may be used to
establish and support the initiative, provide
seed funding for businesses, develop a training
and development program, support recruitment
of entrepreneurs to Minnesota, and secure
funding from federal programs and corporate
partners to establish a self-sustaining,
long-term revenue model. This appropriation
may be used to reimburse the reasonable costs
incurred by the department to administer the
grant. This is a onetime appropriation and is
available until June 30, 2027.

(k) $5,000,000 the first year is transferred to
the electric vehicle rebate program account to
award rebates to purchase or lease eligible
electric vehicles under Minnesota Statutes,
section 216C.401. Rebates must be awarded
under this paragraph only to eligible recipients
located outside the retail electric service area
of the public utility that is subject to
Minnesota Statutes, section 116C.779. This is
a onetime appropriation and is available until
June 30, 2027.

(l) $1,000,000 the first year is to award grants
under Minnesota Statutes, section 216C.402,
to automobile dealers seeking certification to
sell electric vehicles and to reimburse the
reasonable costs incurred by the department
to administer the grants. Grants must only be
awarded under this paragraph to eligible
dealers located outside the retail electric
service area of the public utility that is subject
to Minnesota Statutes, section 116C.779. This
is a onetime appropriation and is available
until June 30, 2027.

(m) $3,000,000 the first year is transferred to
the residential electric panel upgrade grant
program account established under Minnesota
Statutes, section 216C.45, to award electric
panel upgrade grants and to reimburse the
reasonable costs incurred by the department
to administer the program. Grants must be
awarded under this paragraph only to owners
of single-family homes or multifamily
buildings located outside the electric service
area of the public utility subject to Minnesota
Statutes, section 116C.779. This is a onetime
appropriation and is available until June 30,
2027.

(n) $500,000 the first year and $500,000 the
second year are for a grant to the clean energy
resource teams partnerships under Minnesota
Statutes, section 216C.385, subdivision 2, to
provide additional capacity to perform the
duties specified under Minnesota Statutes,
section 216C.385, subdivision 3. This
appropriation may be used to reimburse the
reasonable costs incurred by the department
to administer the grant.

(o) $1,807,000 the first year and $301,000 the
second year are to implement energy
benchmarking under Minnesota Statutes,
section 216C.331.

Of the amount appropriated under this
paragraph, $750,000 the first year is to award
grants to qualifying utilities that are not
investor-owned utilities to support the
development of technology for implementing
energy benchmarking under Minnesota
Statutes, section 216C.331. This is a onetime
appropriation.

Of the amount appropriated in the first year
under this paragraph, $756,000 the first year
is for a grant to Building Owners and
Managers Association Greater Minneapolis
to establish partnerships with three technical
colleges and high school career counselors
with a goal of increasing the number of
building engineers across Minnesota. This is
a onetime appropriation and is available until
June 30, 2028. The grant recipient must
provide a detailed report describing how the
grant funds were used to the chairs and
ranking minority members of the legislative
committees having jurisdiction over higher
education by January 15 of each year until
2028. The report must describe the progress
made toward the goal of increasing the number
of building engineers and strategies used.

(p) $500,000 the first year is for a feasibility
study to identify and process Minnesota iron
resources that could be suitable for upgrading
to long-term battery storage specifications.
The results of the feasibility study must be
submitted to the commissioner of commerce
and to the chairs and ranking minority
members of the house of representatives and
senate committees with jurisdiction over
energy policy no later than deleted text begin February deleted text end new text begin
November new text end 1, 2025. This appropriation may
be used to reimburse the reasonable costs
incurred to administer the study. This is a
onetime appropriation.

(q) $6,000,000 the first year is for electric
school bus grants under Minnesota Statutes,
section 216C.374. Money under this paragraph
is transferred from the general fund to the
electric school bus program account. This is
a onetime appropriation.

(r) $5,300,000 the first year is for electric grid
resiliency grants under article 12, section 72.
This appropriation may be used to reimburse
the reasonable costs incurred by the
department to administer the grants. This is a
onetime appropriation and is available until
June 30, 2028.

(s) $6,000,000 the first year is transferred to
the heat pump rebate program account
established under Minnesota Statutes, section
216C.46, to implement the heat pump rebate
program and to reimburse the reasonable costs
incurred by the department to administer the
program. Of this amount:

(1) up to $1,400,000 the first year is to
contract with an energy coordinator under
Minnesota Statutes, section 216C.46,
subdivision 5; and

(2) up to $1,400,000 the first year is to conduct
contractor training and support under
Minnesota Statutes, section 216C.46,
subdivision 6.

(t) $1,000,000 the first year is to award air
ventilation pilot program grants under
Minnesota Statutes, section 123B.663, for
assessments, testing, and equipment upgrades
in schools, and for the department's costs to
administer the program. This is a onetime
appropriation.

(u) $500,000 the first year is for a grant to the
city of Anoka for feasibility studies as
described in this paragraph and design,
engineering, and environmental analysis
related to the repair and reconstruction of the
Rum River Dam. Findings from the feasibility
studies must be incorporated into the design
and engineering funded by this appropriation.
This appropriation is onetime and is available
until June 30, 2027. This appropriation
includes money for the following studies: (1)
a study to assess the feasibility of adding a
lock or other means for boats to traverse the
dam to navigate between the lower Rum River
and upper Rum River; (2) a study to assess
the feasibility of constructing the dam in a
manner that would facilitate recreational river
surfing at the dam site; and (3) a study to
assess the feasibility of constructing the dam
in a manner to generate hydroelectric power.

(v) $3,000,000 the first year is for grants to
install on-site energy storage systems, as
defined in Minnesota Statutes, section
216B.2422, subdivision 1, paragraph (f), with
a capacity of 50 kilowatt hours or less and that
are located outside the electric service area of
the electric utility subject to Minnesota
Statutes, section 116C.779. To receive a grant
under this paragraph, an owner of the energy
storage system must be operating a solar
energy generating system at the same site as
the energy storage system or have filed an
application with a utility to interconnect a solar
energy generating system at the same site as
the energy storage system. This appropriation
may be used to reimburse the reasonable costs
incurred by the department to administer the
grants. This is a onetime appropriation and is
available until June 30, 2027.

(w) $164,000 the second year is for activities
associated with a public utility's filing a
transportation electrification plan under
Minnesota Statutes, section 216B.1615. The
base in fiscal year 2026 and later is $164,000.

(x) $77,000 each year is for activities
associated with appeals of consumer
complaints to the commission under
Minnesota Statutes, section 216B.172.

(y) $961,000 each year is for activities
required under Minnesota Statutes, section
216B.1641 for community solar gardens. This
appropriation must be assessed directly to the
public utility subject to Minnesota Statutes,
section 116C.779.

(z) $300,000 the first year is for the
community solar garden program study
required under article 12, section 73.

Sec. 48. new text begin ULTRAEFFICIENT VEHICLE DEVELOPMENT GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program establishment. new text end

new text begin (a) A grant program is established in the
Department of Commerce to provide financial assistance to developers and producers of
ultraefficient vehicles that use proprietary technology.
new text end

new text begin (b) For purposes of this section, "ultraefficient vehicle" means a fully closed compartment
vehicle that is designed to carry at least one adult passenger and that achieves:
new text end

new text begin (1) at least 75 miles per gallon while operating on gasoline;
new text end

new text begin (2) at least 75 miles per gallon equivalent while operating as a hybrid electric-gasoline;
or
new text end

new text begin (3) at least 75 miles per gallon equivalent while operating as a fully electric vehicle.
new text end

new text begin Subd. 2. new text end

new text begin Application process. new text end

new text begin Applicants seeking a grant under this section must submit
an application to the commissioner of commerce on a form developed by the commissioner.
The commissioner is responsible for receiving and reviewing grant applications and awarding
grants under this subdivision. The commissioner must develop administrative procedures
to govern the application, evaluation, and grant-award process.
new text end

new text begin Subd. 3. new text end

new text begin Grant awards. new text end

new text begin The maximum grant award for each eligible applicant awarded
a grant under this section is $250,000. When awarding grants under this section, the
department must:
new text end

new text begin (1) give priority to ultraefficient vehicle projects that are deemed to be near production
ready; and
new text end

new text begin (2) give priority to ultraefficient vehicle projects that maximize the use of electricity to
charge and run the vehicle.
new text end

new text begin Subd. 4. new text end

new text begin Account established. new text end

new text begin An ultraefficient vehicle development grant account is
established in the special revenue fund in the state treasury. The commissioner of commerce
must credit to the account appropriations made for ultraefficient vehicle development grants.
Earnings, including interest, arising from assets in the account, must be credited to the
account. Money in the account is available until June 30, 2028. Any amount remaining in
the account after June 30, 2028, cancels to the renewable development account. The
commissioner of commerce must manage the account.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation; expenditures. new text end

new text begin Money in the account established in subdivision
4 is appropriated to the commissioner of commerce and must be used only to:
new text end

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

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

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin On January 15, 2026, and on January 15, 2029, the commissioner of
commerce must submit a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over energy policy and finance on the grant awards under this
section.
new text end

Sec. 49. new text begin THERMAL ENERGY NETWORK DEPLOYMENT WORK GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Direction. new text end

new text begin The Public Utilities Commission must establish and appoint
a thermal energy network deployment work group to examine (1) the potential regulatory
opportunities for regulated natural gas utilities to deploy thermal energy networks, and (2)
potential barriers to development. The work group must examine the public benefits, costs,
and impacts of deployment of thermal energy networks, as well as examine rate design
options.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The work group consists of at least the following:
new text end

new text begin (1) representatives of the Department of Commerce;
new text end

new text begin (2) representatives of the Department of Health;
new text end

new text begin (3) representatives of the Pollution Control Agency;
new text end

new text begin (4) representatives of the Department of Natural Resources;
new text end

new text begin (5) representatives of the Office of the Attorney General;
new text end

new text begin (6) representatives from utilities;
new text end

new text begin (7) representatives from clean energy advocacy organizations;
new text end

new text begin (8) representatives from labor organizations;
new text end

new text begin (9) geothermal technology providers;
new text end

new text begin (10) representatives from consumer protection organizations;
new text end

new text begin (11) representatives from cities; and
new text end

new text begin (12) representatives from low-income communities.
new text end

new text begin (b) The executive secretary of the Public Utilities Commission may invite others to
participate in one or more meetings of the work group.
new text end

new text begin (c) When appointing members to the work group, the Public Utilities Commission must
endeavor to ensure that all geographic regions of Minnesota are represented.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The work group must prepare a report containing findings and
recommendations regarding how to deploy thermal energy networks within a regulated
context and in a manner that protects the public interest and considers reliability, affordability,
environmental impacts, and socioeconomic impacts.
new text end

new text begin Subd. 4. new text end

new text begin Report to legislature. new text end

new text begin The work group must submit a report detailing the work
group's findings and recommendations to the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over energy policy and finance by
December 31, 2025. The work group terminates the day after the report under this subdivision
is submitted.
new text end

new text begin Subd. 5. new text end

new text begin Notice and comment period. new text end

new text begin The executive secretary of the Public Utilities
Commission must file the completed report in Public Utilities Commission Docket No.
G-999/CI-21-565 and provide notice to all docket participants and other interested persons
that comments on the findings and recommendations may be filed in the docket.
new text end

new text begin Subd. 6. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "thermal energy network" means
a project that provides heating and cooling to multiple buildings connected via underground
piping containing fluids that, in concert with heat pumps, exchange thermal energy from
the earth, underground or surface waters, wastewater, or other heat sources.
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. 50. new text begin STUDY; CARBON DIOXIDE PIPELINES.
new text end

new text begin (a) The commission must contract with an independent third party to conduct a study
that: (1) assesses the human health and environmental impacts that result from constructing,
operating, and maintaining carbon dioxide pipelines; and (2) makes recommendations
regarding regulation of the activities listed in clause (1). The executive secretary of the
commission may consult with the executive director of the environmental quality board
when selecting the contractor to conduct the study.
new text end

new text begin (b) The study must include, at a minimum, the following elements:
new text end

new text begin (1) identification of geographic areas in Minnesota that, due to the geographic area's
geology or the presence of environmentally sensitive resources, are unsuitable sites to
construct and operate carbon dioxide pipelines;
new text end

new text begin (2) the amount of energy and water required to operate the equipment used to capture
the carbon dioxide that is transported in a carbon dioxide pipeline;
new text end

new text begin (3) the potential human and environmental impacts of a carbon dioxide pipeline leak or
rupture, especially to long-term human health, surface water bodies and wetlands, animals
and animal habitat, croplands, and other sensitive resources;
new text end

new text begin (4) measures that can be taken to mitigate the impact of a carbon dioxide pipeline leak
or rupture, including setbacks, protection for wildlife and wildlife habitat, and enhanced
local emergency response strategies and resources;
new text end

new text begin (5) the long-term impacts of pipeline construction on wetlands, soils, crops, and other
vegetation;
new text end

new text begin (6) the lifecycle greenhouse gas emissions resulting from carbon dioxide pipelines,
including the ultimate disposition of the carbon dioxide, whether the carbon dioxide is
sequestered, used to manufacture other products, or used to extract incremental oil or gas
supplies from underground reservoirs. The greenhouse gas emissions resulting from the
process to extract incremental oil or gas supplies from underground reservoirs and the
subsequent combustion of the incremental energy sources must also be estimated. The
analysis should also indicate the degree to which any emission reductions are verifiable;
and
new text end

new text begin (7) recommended provisions for a state regulatory process to site, operate, maintain, and
abandon carbon dioxide pipelines that are transparent, provide opportunity for public
engagement, and provide pipeline operators with clear signals and efficient procedures
regarding permitting issues.
new text end

new text begin (c) No later than November 1, 2026, a written copy of the report must be submitted to
the chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy and environmental policy and to the Public Utilities
Commission. The commission must consider the report's findings and recommendations
when issuing siting permits for carbon dioxide pipelines.
new text end

Sec. 51. new text begin THERMAL ENERGY NETWORK SITE SUITABILITY STUDY.
new text end

new text begin (a) The Department of Commerce must conduct or contract for a study to determine the
suitability of sites to deploy thermal energy networks statewide.
new text end

new text begin (b) The study must:
new text end

new text begin (1) identify areas more and less suitable for deployment of thermal energy networks
statewide; and
new text end

new text begin (2) identify potential barriers to the deployment of thermal energy networks and potential
ways to address the barriers.
new text end

new text begin (c) In determining site suitability, the study must consider:
new text end

new text begin (1) geologic or hydrologic access to thermal storage;
new text end

new text begin (2) the existing built environment, including but not limited to age, density, building
uses, existing heating and cooling systems, and existing electrical services;
new text end

new text begin (3) the condition of existing natural gas infrastructure;
new text end

new text begin (4) road and street conditions, including planned replacement or maintenance;
new text end

new text begin (5) local land use regulations;
new text end

new text begin (6) area permitting requirements; and
new text end

new text begin (7) whether the area is an environmental justice area, as defined in section 116.065,
subdivision 1, paragraph (e).
new text end

new text begin (d) No later than January 15, 2026, the Department of Commerce must submit a written
report documenting the study's findings 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 (e) For the purposes of this section, "thermal energy network" means a project that
provides heating and cooling to multiple buildings connected via underground piping
containing fluids that, in concert with heat pumps, exchange thermal energy from the earth,
underground or surface waters, wastewater, or other heat sources.
new text end

Sec. 52. new text begin GRID ENHANCING TECHNOLOGIES REPORT; PUBLIC UTILITIES
COMMISSION ORDER.
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) "Capacity" means the maximum amount of electricity that can flow through a
transmission line while observing industry safety standards.
new text end

new text begin (c) "Congestion" means a condition in which a lack of transmission line capacity prevents
the delivery of the lowest-cost electricity dispatched to meet load at a specific location.
new text end

new text begin (d) "Dynamic line rating" means hardware or software used to calculate the thermal
limit of existing transmission lines at a specific point in time by incorporating information
on real-time and forecasted weather conditions.
new text end

new text begin (e) "Grid enhancing technology" means hardware or software that reduces congestion
or enhances the flexibility of the transmission system by increasing the capacity of a
high-voltage transmission line or rerouting electricity from overloaded to uncongested lines,
while maintaining industry safety standards. Grid enhancing technologies include but are
not limited to dynamic line rating, advanced power flow controllers, and topology
optimization.
new text end

new text begin (f) "Line rating methodology" means a methodology used to calculate the maximum
amount of electricity that can be carried by a transmission line without exceeding thermal
limits designed to ensure safety.
new text end

new text begin (g) "Power flow controller" means hardware and software used to reroute electricity
from overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (h) "Thermal limit" means the temperature a transmission line reaches when heat from
the electric current flow within the transmission line causes excessive sagging of the
transmission line.
new text end

new text begin (i) "Topology optimization" means a software technology that uses mathematical models
to identify reconfigurations in the transmission grid in order to reroute electricity from
overloaded transmission lines to underutilized transmission lines.
new text end

new text begin (j) "Transmission line" has the meaning given to "high-voltage transmission line" in
section 216E.01. subdivision 4.
new text end

new text begin (k) "Transmission system" means a network of high-voltage transmission lines owned
or operated by an entity subject to this section that transports electricity to Minnesota
customers.
new text end

new text begin Subd. 2. new text end

new text begin Report; content. new text end

new text begin An entity that owns more than 750 miles of transmission
lines in Minnesota, as reported in the state transmission report submitted to the Public
Utilities Commission under Minnesota Statutes, section 216B.2425, by November 1, 2025,
must include in that report information that:
new text end

new text begin (1) identifies, during each of the last three years, locations that experienced 168 hours
or more of congestion, or the ten locations at which the most costly congestion occurred,
whichever measure produces the greater number of locations;
new text end

new text begin (2) estimates the frequency of congestion at each location and the increased cost to
ratepayers resulting from the substitution of higher-priced electricity;
new text end

new text begin (3) identifies locations on each transmission system that are likely to experience high
levels of congestion during the next five years;
new text end

new text begin (4) evaluates the technical feasibility and estimates the cost of installing one or more
grid enhancing technologies to address each instance of grid congestion identified in clause
(1), and projects the grid enhancing technology's efficacy in reducing congestion;
new text end

new text begin (5) analyzes the cost-effectiveness of installing grid enhancing technologies to address
each instance of congestion identified in clause (1) by using the information developed in
clause (2) to calculate the payback period of each installation, using a methodology developed
by the commission;
new text end

new text begin (6) proposes an implementation plan, including a schedule and cost estimate, to install
grid enhancing technologies at each congestion point identified in clause (1) at which the
payback period is less than or equal to a value determined by the commission, in order to
maximize transmission system capacity; and
new text end

new text begin (7) explains the transmission owner's current line rating methodology.
new text end

new text begin Subd. 3. new text end

new text begin Commission review; order. new text end

new text begin (a) The commission must review the
implementation plans proposed by each reporting entity as required in subdivision 2, clause
(6), and must:
new text end

new text begin (1) review, and may approve, reject, or modify, the plan; and
new text end

new text begin (2) issue an order requiring implementation of an approved plan.
new text end

new text begin (b) Within 90 days of the date the commission issues an order under this subdivision
each public utility must file with the commission a plan containing a workplan, cost estimate,
and schedule to implement the elements of the plan approved by the commission that are
located within the public utility's electric service area. For each entity required to report
under this section that is not a public utility, the commission's order is advisory.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin Notwithstanding any other provision of this chapter, the
commission may approve cost recovery under Minnesota Statutes, section 216B.16, including
an appropriate rate of return, of any prudent and reasonable investments made or expenses
incurred by a public utility to administer and implement a grid enhancing technologies plan
approved by the commission under this section.
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. 53. new text begin INTERCONNECTION DOCKET; PUBLIC UTILITIES COMMISSION.
new text end

new text begin (a) No later than September 1, 2024, the commission must initiate a proceeding to
establish by order generic standards for the sharing of utility costs necessary to upgrade a
utility's distribution system by increasing hosting capacity or applying other necessary
distribution system upgrades at a congested or constrained location in order to allow for the
interconnection of distributed generation facilities at the congested or constrained location
and to advance the achievement of the state's renewable and carbon-free energy goals in
Minnesota Statutes, section 216B.1691 and greenhouse gas emissions reduction goals in
Minnesota Statutes, section 216H.02. The tariff standards must reflect an interconnection
process designed to, at a minimum:
new text end

new text begin (1) accelerate the expansion of hosting capacity at multiple points on a utility's distribution
system by ensuring that the cost of upgrades is shared fairly among owners of distributed
generation projects seeking interconnection on a pro rata basis according to the amount of
the expanded capacity utilized by each interconnected distributed generation facility;
new text end

new text begin (2) reduce the capital burden on owners of trigger projects seeking interconnection;
new text end

new text begin (3) establish a minimum level of upgrade costs an expansion of hosting capacity must
reach in order to be eligible to participate in the cost-share process and below which a trigger
project must bear the full cost of the upgrade;
new text end

new text begin (4) establish a distributed generation facility's pro rata cost-share amount as the utility's
total cost of the upgrade divided by the incremental capacity resulting from the upgrade,
and multiplying the result by the capacity of the distributed generation facility seeking
interconnection;
new text end

new text begin (5) establish a minimum proportion of the total upgrade cost that a utility must receive
from one or more distributed generation facilities before initiating constructing an upgrade;
new text end

new text begin (6) allow trigger projects and any other distributed generation facilities to pay a utility
more than the trigger project's or distributed generation facility's pro rata cost-share amount
only if needed to meet the minimum threshold established in clause (5) and to receive refunds
for amounts paid beyond the trigger project's or distributed generation facility's pro rata
share of expansion costs from distributed generation projects that subsequently interconnect
at the applicable location, after which pro rata payments are paid to the utility for distribution
to ratepayers;
new text end

new text begin (7) prohibit owners of distributed generation facilities from using any unsubscribed
capacity at an interconnection that has undergone an upgrade without the distributed
generation owners paying the distributed generation owner's pro rata cost of the upgrade;
and
new text end

new text begin (8) establish an annual limit or a formula for determining an annual limit for the total
cost of upgrades that are not allocated to owners of participating generation facilities and
may be recovered from ratepayers under section 216B.16, subdivision 7b, clause (6).
new text end

new text begin (b) For the purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "distributed generation project" means an energy generating system with a capacity
no greater than ten megawatts;
new text end

new text begin (2) "hosting capacity" means the maximum capacity of a utility distribution system to
transport electricity at a specific location without compromising the safety or reliability of
the distribution system;
new text end

new text begin (3) "trigger project" means the initial distributed generation project whose application
for interconnection of a distributed generation project alerts a utility that an upgrade is
needed in order to accommodate the trigger project and any future interconnections at the
applicable location;
new text end

new text begin (4) "upgrade" means a modification of a utility's distribution system at a specific location
that is necessary to allow the interconnection of distributed generation projects by increasing
hosting capacity at the applicable location, including but not limited to installing or modifying
equipment at a substation or along a distribution line. Upgrade does not mean an expansion
of hosting capacity dedicated solely to the interconnection of a single distributed generation
project; and
new text end

new text begin (5) "utility" means a public utility, as defined in Minnesota Statutes, section 216B.02,
subdivision 4, that provides electric service.
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. 54. new text begin POSITION ESTABLISHED; PUBLIC UTILITIES COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Position; duties. new text end

new text begin (a) The Public Utilities Commission's Consumer Affairs
Office must establish a new full-time equivalent interconnection ombudsperson position to
assist applicants seeking to interconnect distributed generation projects to utility distribution
systems under the generic statewide standards developed by the commission under section
53. The Public Utilities Commission must (1) appoint a person to the position who possesses
mediation skills and technical expertise related to interconnection and interconnection
procedures, and (2) authorize the person to request and review all interconnection data from
utilities and applicants that are necessary to fulfill the duties of the position described in
this subdivision.
new text end

new text begin (b) The duties of the interconnection ombudsperson include but are not limited to:
new text end

new text begin (1) tracking interconnection disputes between applicants and utilities;
new text end

new text begin (2) facilitating the efficient and fair resolution of disputes between customers seeking
to interconnect and utilities;
new text end

new text begin (3) reviewing utility interconnection policies to assess opportunities to reduce
interconnection disputes, while considering the equitable distribution of distributed generation
facilities;
new text end

new text begin (4) convening stakeholder groups as necessary to facilitate effective communication
among interconnection stakeholders; and
new text end

new text begin (5) preparing reports that detail the number, type, resolution timelines, and outcome of
interconnection disputes.
new text end

new text begin (c) A utility must provide information requested under this section that the interconnection
ombudsperson determines is necessary to effectively carry out the duties of the position.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "utility" means a public utility, as
defined in Minnesota Statutes, section 216B.02, subdivision 4, that provides electric service.
new text end

new text begin Subd. 3. new text end

new text begin Position; funding. new text end

new text begin (a) A utility must assess and collect a surcharge of $50 on
each application interconnection filed by an owner of a distributed generation facility located
in Minnesota. A utility must remit the full surcharge to the Public Utilities Commission
monthly, in a manner determined by the Public Utilities Commission, for each interconnection
application filed with the utility during the previous month.
new text end

new text begin (b) The interconnection ombudsperson account is established in the special revenue
account in the state treasury. The Public Utilities Commission must manage the account.
The Public Utilities Commission must deposit in the account all revenues received from
utilities from the surcharge on interconnection applications established under this section.
Money is appropriated from the account to the Public Utilities Commission for the sole
purpose of funding the ombudsperson position established in subdivision 1.
new text end

new text begin (c) The Public Utilities Commission must review the amount of revenues collected from
the surcharge each year and may adjust the level of the surcharge as necessary to ensure (1)
sufficient money is available to support the position, and (2) the reserve in the account does
not reach more than ten percent of the amount necessary to fully fund the position.
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 applications for interconnections filed with a utility on or after that date.
new text end

ARTICLE 7

MINNESOTA ENERGY INFRASTRUCTURE PERMITTING ACT

Section 1.

new text begin [216I.01] CITATION.
new text end

new text begin This chapter may be cited as the "Minnesota Energy Infrastructure Permitting Act."
new text end

Sec. 2.

new text begin [216I.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of this chapter, the terms defined in this
section have the meanings given, unless context clearly indicates or provides otherwise.
new text end

new text begin Subd. 2. new text end

new text begin Associated facility. new text end

new text begin "Associated facility" means a building, equipment,
communication instrumentation, or other physical structure that is necessary to operate a
large energy infrastructure facility. Associated facility includes transmission lines designed
for and capable of operating at 100 kilovolts or less that interconnect the large energy
infrastructure facility with the existing high-voltage transmission system.
new text end

new text begin Subd. 3. new text end

new text begin Commission. new text end

new text begin "Commission" means the Public Utilities Commission.
Commission also means the executive secretary of the Public Utilities Commission for
purposes of the following:
new text end

new text begin (1) applicability determinations under section 216I.04;
new text end

new text begin (2) completeness determinations under section 216I.05;
new text end

new text begin (3) public meetings under section 216I.05, subdivision 9;
new text end

new text begin (4) draft environmental impact statements under section 216I.06, subdivision 1, paragraph
(c); and
new text end

new text begin (5) public hearings under section 216I.06, subdivision 2, or 216I.07, subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Construction. new text end

new text begin "Construction" means any clearing of land, excavation, or other
action that adversely affects the site's or route's natural environment. Construction does not
include changes needed to temporarily use sites or routes for nonutility purposes, or uses
in securing survey or geological data, including necessary borings to ascertain foundation
conditions.
new text end

new text begin Subd. 5. new text end

new text begin Cultivated agricultural land. new text end

new text begin "Cultivated agricultural land" has the meaning
given in section 216G.01, subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Energy storage system. new text end

new text begin "Energy storage system" means equipment and
associated facilities designed with a nameplate capacity of 10,000 kilowatts or more that is
capable of storing generated electricity for a period of time and delivering the electricity
for use after storage.
new text end

new text begin Subd. 7. new text end

new text begin Executive secretary. new text end

new text begin "Executive secretary" means the executive secretary of
the Public Utilities Commission under section 216A.04 or Public Utilities Commission staff
designated by the executive secretary.
new text end

new text begin Subd. 8. new text end

new text begin High-voltage transmission line. new text end

new text begin "High-voltage transmission line" means a
conductor of electric energy and associated facilities that is (1) designed for and capable of
operation at a nominal voltage of 100 kilovolts or more, and (2) is greater than 1,500 feet
in length.
new text end

new text begin Subd. 9. new text end

new text begin Large electric power generating plant. new text end

new text begin "Large electric power generating
plant" means electric power generating equipment and associated facilities designed for or
capable of operation at a capacity of 50,000 kilowatts or more.
new text end

new text begin Subd. 10. new text end

new text begin Large energy infrastructure facility. new text end

new text begin "Large energy infrastructure facility"
means a high-voltage transmission line, a large electric power generating plant, an energy
storage system, a large wind energy conversion system, and any associated facility.
new text end

new text begin Subd. 11. new text end

new text begin Large wind energy conversion system. new text end

new text begin "Large wind energy conversion
system" means any combination of wind energy conversion systems with a combined
nameplate capacity of 5,000 kilowatts or more, and may include transmission lines designed
for and capable of operating at 100 kilovolts or less that interconnect a large wind energy
conversion system with a high-voltage transmission line.
new text end

new text begin Subd. 12. new text end

new text begin Permittee. new text end

new text begin "Permittee" means a person to whom a site or route permit is
issued.
new text end

new text begin Subd. 13. new text end

new text begin Person. new text end

new text begin "Person" means an individual, partnership, joint venture, private or
public corporation, association, firm, public service company, cooperative, political
subdivision, municipal corporation, government agency, public utility district, or any other
entity, public or private, however organized.
new text end

new text begin Subd. 14. new text end

new text begin Power purchase agreement. new text end

new text begin "Power purchase agreement" means a legally
enforceable agreement between two or more persons where one or more of the signatories
agrees to provide electrical power and one or more of the signatories agrees to purchase the
power.
new text end

new text begin Subd. 15. new text end

new text begin Route. new text end

new text begin "Route" means the location of a high-voltage transmission line between
two end points. The route may have a variable width of up to 1.25 miles.
new text end

new text begin Subd. 16. new text end

new text begin Site. new text end

new text begin "Site" means the location of a large electric power generating plant, solar
energy generating system, energy storage system, or large wind energy conversion system.
new text end

new text begin Subd. 17. new text end

new text begin Small wind energy conversion system. new text end

new text begin "Small wind energy conversion
system" means any combination of wind energy conversion systems with a combined
nameplate capacity of less than 5,000 kilowatts.
new text end

new text begin Subd. 18. new text end

new text begin Solar energy generating system. new text end

new text begin "Solar energy generating system" means a
set of devices whose primary purpose is to produce electricity by means of any combination
of collecting, transferring, or converting solar-generated energy with a combined nameplate
capacity of 50,000 kilowatts alternating current or more.
new text end

new text begin Subd. 19. new text end

new text begin Utility. new text end

new text begin "Utility" means any entity engaged or intending to engage in generating,
transmitting, or distributing electric energy in Minnesota. Utility includes but is not limited
to a private investor-owned utility, cooperatively owned utility, and public or municipally
owned utility.
new text end

new text begin Subd. 20. new text end

new text begin Wind energy conversion system. new text end

new text begin "Wind energy conversion system" means
a device, including but not limited to a wind charger, windmill, or wind turbine and associated
facilities, that converts wind energy to electrical energy.
new text end

Sec. 3.

new text begin [216I.03] SITING AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin The legislature hereby declares it is the policy of the state to
locate large electric power facilities in an orderly manner that is compatible with
environmental preservation and the efficient use of resources. In accordance with the policy,
the commission must choose locations that minimize adverse human and environmental
impact while ensuring (1) continuing electric power system reliability and integrity, and
(2) that electric energy needs are met and fulfilled in an orderly and timely fashion.
new text end

new text begin Subd. 2. new text end

new text begin Jurisdiction. new text end

new text begin (a) The commission has the authority to provide for site and route
selection for large energy infrastructure facilities. The commission must issue permits for
large energy infrastructure facilities in a timely fashion and in a manner consistent with the
overall determination of need for the project under section 216B.2425 or 216B.243, if
applicable.
new text end

new text begin (b) The scope of an environmental review conducted under this chapter must not include:
(1) questions of need, including size, type, and timing; (2) alternative system configurations;
or (3) voltage.
new text end

new text begin Subd. 3. new text end

new text begin Interstate routes. new text end

new text begin If a route is proposed in two or more states, the commission
must attempt to reach an agreement with affected states on the entry and exit points before
designating a route. The commission, in discharge of the commission's duties under this
chapter, may make joint investigations, hold joint hearings within or outside of the state,
and issue joint or concurrent orders in conjunction or concurrence with any official or agency
of any state or of the United States. The commission may, pursuant to any consent of
Congress, negotiate and enter into any agreements or compacts with agencies of other states
for cooperative efforts to certify the construction, operation, and maintenance of large
electric power facilities in a manner consistent with this chapter's requirements and to enforce
the respective state laws regarding large electric power facilities.
new text end

new text begin Subd. 4. new text end

new text begin Biennial report. new text end

new text begin By December 15, 2025, and every odd-numbered year
thereafter, the commission must submit a written report to the chairs and ranking minority
members of the senate and house of representatives committees with jurisdiction over energy
and utilities. The report must:
new text end

new text begin (1) provide an update on the progress made to permit, approve, and construct the electric
utility infrastructure necessary to meet the requirements of section 216B.1691 within the
milestones provided under section 216B.1691;
new text end

new text begin (2) describe efforts made by the commission to engage stakeholders in environmental
justice areas, as defined in section 216B.1691, subdivision 1, paragraph (c), in permitting,
approving, and constructing electric utility infrastructure under this section, section
216B.1691, or section 216B.243; and
new text end

new text begin (3) provide information regarding any cumulative impact analysis ordered by the
commissioner of the Pollution Control Agency under section 116.065 pertaining to any
electric utility infrastructure permitted, approved, or constructed under this section, section
216B.1691, or section 216B.243.
new text end

Sec. 4.

new text begin [216I.04] APPLICABILITY DETERMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin This section may be used to determine: (1) whether a proposal
meets the definition of large energy infrastructure facility and is subject to the commission's
siting or routing jurisdiction under this chapter; or (2) which review process is applicable
at the time of the initial application.
new text end

new text begin Subd. 2. new text end

new text begin Solar, wind, or energy storage facilities. new text end

new text begin For solar energy generating systems,
large wind energy conversion systems, or energy storage systems, the alternating current
nameplate capacity of one solar energy generating system, wind energy conversion system,
or energy storage system must be combined with the alternating current nameplate capacity
of any other solar energy generating system, wind energy conversion system, or energy
storage system that:
new text end

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

new text begin (2) exhibits characteristics of being a single development, including but not limited to
ownership structure, an umbrella sales arrangement, shared interconnection, revenue-sharing
arrangements, and common debt or equity financing.
new text end

new text begin Subd. 3. new text end

new text begin Transmission lines. new text end

new text begin For transmission lines, the petitioner must describe the
applicability question and provide sufficient facts to support the determination.
new text end

new text begin Subd. 4. new text end

new text begin Forms; assistance; written determination. new text end

new text begin (a) The commission must provide
forms and assistance to help applicants make a request for an applicability determination.
new text end

new text begin (b) Upon written request from an applicant, the commission or the commission's designee
must provide a written determination regarding applicability under this section. The
commission or the commission's designee must provide the written determination within
30 days of the date the request was received or 30 days of the date information that the
commission requested from the applicant is received, whichever is later. This written
determination constitutes a final decision of the commission.
new text end

Sec. 5.

new text begin [216I.05] DESIGNATING SITES AND ROUTES.
new text end

new text begin Subdivision 1. new text end

new text begin Site permit. new text end

new text begin (a) A person is prohibited from constructing a large electric
generating plant, a solar energy generating system, an energy storage system, or a large
wind energy conversion system without a site permit issued by the commission. A person
may construct a large electric generating plant, an energy storage system, a solar energy
generating system, or a large wind energy conversion system only on a site approved by
the commission. A person is prohibited from increasing the generating capacity or output
of an electric power plant from under 50 megawatts to more than 50 megawatts without a
site permit issued by the commission.
new text end

new text begin (b) The commission must incorporate into one proceeding the route selection for a
high-voltage transmission line that is directly associated with and necessary to interconnect
the large electric generating plant, energy storage system, solar energy generating system,
or large wind energy conversion system to the transmission system if the applications are
submitted jointly under this chapter.
new text end

new text begin (c) A site permit does not authorize construction of a large electric power generating
plant until the permittee has obtained a power purchase agreement or some other enforceable
mechanism to sell the power generated by the project. If the permittee does not have a power
purchase agreement or other enforceable mechanism at the time the permit is issued, the
commission must provide in the permit that the permittee must advise the commission when
the permittee obtains a commitment to purchase the power. The commission may establish
as a condition in the permit a date by which the permittee must obtain a power purchase
agreement or other enforceable mechanism. If the permittee does not obtain a power purchase
agreement or other enforceable mechanism by the date required by the permit condition,
the site permit is null and void.
new text end

new text begin Subd. 2. new text end

new text begin Route permit. new text end

new text begin A person is prohibited from constructing a high-voltage
transmission line without a route permit issued by the commission. A person may construct
a high-voltage transmission line only along a route approved by the commission.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) A person that seeks to construct a large energy infrastructure
facility must apply to the commission for a site or route permit, as applicable. The applicant
must propose a single route for a high-voltage transmission line.
new text end

new text begin (b) The application must contain:
new text end

new text begin (1) a statement of proposed ownership of the facility at the time of filing the application
and after commercial operation;
new text end

new text begin (2) the name of any person or organization initially named as permittee or permittees
and the name of any other person to whom the permit may be transferred if transfer of the
permit is contemplated;
new text end

new text begin (3) a description of the proposed large energy infrastructure facility and all associated
facilities, including size, type, and timing of the facility;
new text end

new text begin (4) the environmental information required under subdivision 4;
new text end

new text begin (5) the names of each owner described under subdivision 8;
new text end

new text begin (6) United States Geological Survey topographical maps, or other maps acceptable to
the commission, that show the entire proposed large energy infrastructure facility;
new text end

new text begin (7) a document that identifies existing utility and public rights-of-way along or near the
large energy infrastructure facility;
new text end

new text begin (8) the engineering and operational design at each of the proposed sites for the proposed
large energy infrastructure facility, and identify transportation, pipeline, and electrical
transmission systems that are required to construct, maintain, and operate the facility;
new text end

new text begin (9) a cost analysis of the proposed large energy infrastructure facility, including the costs
to construct, operate, and maintain the facility;
new text end

new text begin (10) a description of possible design options to accommodate the large energy
infrastructure facility's future expansion;
new text end

new text begin (11) the procedures and practices proposed to acquire, construct, maintain, and restore
the large energy infrastructure facility's right-of-way or site;
new text end

new text begin (12) a list and brief description of federal, state, and local permits that may be required
for the proposed large energy infrastructure facility;
new text end

new text begin (13) a discussion regarding whether a certificate of need application is required and, if
a certificate of need application is required, whether the certificate of need application has
been submitted;
new text end

new text begin (14) a discussion regarding any other sites or routes that were considered and rejected
by the applicant;
new text end

new text begin (15) any information the commission requires pursuant to an administrative rule; and
new text end

new text begin (16) a discussion regarding coordination with Minnesota Tribal governments, as defined
under section 10.65, subdivision 2, by the applicant, including but not limited to the notice
required under subdivision 5 of this section.
new text end

new text begin Subd. 4. new text end

new text begin Environmental information. new text end

new text begin (a) An applicant for a site or route permit must
include in the application environmental information for each proposed site or route. The
environmental information submitted must include:
new text end

new text begin (1) a description of each site or route's environmental setting;
new text end

new text begin (2) a description of the effects the facility's construction and operation has on human
settlement, including but not limited to public health and safety, displacement, noise,
aesthetics, socioeconomic impacts, environmental justice impacts, cultural values, recreation,
and public services;
new text end

new text begin (3) a description of the facility's effects on land-based economies, including but not
limited to agriculture, forestry, tourism, and mining;
new text end

new text begin (4) a description of the facility's effects on archaeological and historic resources;
new text end

new text begin (5) a description of the facility's effects on the natural environment, including effects
on air and water quality resources, flora, and fauna;
new text end

new text begin (6) a description of the greenhouse gas emissions associated with constructing and
operating the facility;
new text end

new text begin (7) a description of the facility's climate change resilience;
new text end

new text begin (8) a description of the facility's effects on rare and unique natural resources;
new text end

new text begin (9) a list that identifies human and natural environmental effects that are unavoidable if
the facility is approved at a specific site or route; and
new text end

new text begin (10) a description of (i) measures that might be implemented to mitigate the potential
human and environmental impacts identified in clauses (1) to (7), and (ii) the estimated
costs of the potential mitigative measures.
new text end

new text begin (b) An applicant that applies using the standard process under section 216I.06 may
include the environmental information required under paragraph (a) in the applicant's
environmental assessment.
new text end

new text begin Subd. 5. new text end

new text begin Preapplication coordination. new text end

new text begin At least 30 days before filing an application
with the commission, an applicant must provide notice to: (1) each local unit of government
within which a site or route may be proposed; (2) Minnesota Tribal governments, as defined
under section 10.65, subdivision 2; and (3) the state technical resource agencies. The notice
must describe the proposed project and provide the entities receiving the notice an opportunity
for preapplication coordination or feedback.
new text end

new text begin Subd. 6. new text end

new text begin Preapplication review. new text end

new text begin (a) Before submitting an application under this chapter,
an applicant must provide a draft application to commission staff for review. A draft
application must not be filed electronically.
new text end

new text begin (b) Commission staff's draft application review must focus on the application's
completeness and clarifications that may assist the commission's review of the application.
Upon completion of the preapplication review under this subdivision, commission staff
must provide the applicant a summary of the completeness review. The applicant may
include the completeness review summary with the applicant's application under subdivision
3.
new text end

new text begin Subd. 7. new text end

new text begin Complete applications. new text end

new text begin (a) The commission or the commission's designee
must determine whether an application is complete and advise the applicant of any
deficiencies within ten working days of the date an application is received.
new text end

new text begin (b) An application is not incomplete if: (1) information that is not included in the
application may be obtained from the applicant prior to the initial public meeting; and (2)
the information that is not included in the application is not essential to provide adequate
notice.
new text end

new text begin Subd. 8. new text end

new text begin Application notice. new text end

new text begin (a) Upon finding an application is complete, the commission
must:
new text end

new text begin (1) publish notice of the application in a legal newspaper of general circulation in each
county in which the site or route is proposed;
new text end

new text begin (2) provide notice of the application to any regional development commission, Minnesota
Tribal government as defined under section 10.65, subdivision 2, county, incorporated
municipality, and town in which any part of the site or route is proposed;
new text end

new text begin (3) provide notice of the application and description of the proposed project to each
owner whose property is within or adjacent to the proposed site or route for the large energy
infrastructure facility; and
new text end

new text begin (4) provide notice to persons who have requested to be placed on a list maintained by
the commission to receive notice of proposed large energy infrastructure facilities.
new text end

new text begin (b) The commission must identify a standard format and content for application notice.
At a minimum, the notice must include: (1) a description of the proposed project, including
a map displaying the general area of the proposed site or route; (2) a description detailing
how a person may receive more information and future notices regarding the application;
and (3) a location where a copy of the application may be reviewed.
new text end

new text begin (c) The notice must also provide information regarding the date and location of the public
meeting where the public may learn more about the proposed project and the commission's
review process.
new text end

new text begin (d) For the purposes of providing mailed notice under this subdivision, an owner is the
person indicated in the records of the county auditor or, in a county where tax statements
are mailed by the county treasurer, in the records of the county treasurer. If necessary, other
appropriate records may be used for purposes of providing mailed notice. The failure to
provide mailed notice to a property owner or defects in the notice do not invalidate the
proceedings, provided a bona fide attempt to comply with this subdivision has been made.
new text end

new text begin Subd. 9. new text end

new text begin Public meeting. new text end

new text begin (a) The commission must hold at least one public meeting in
a location near the proposed large energy infrastructure facility project's location to explain
the permitting process, present major issues, accept public comments on the scope of the
environmental impact statement prepared under section 216I.06 or the addendum prepared
under section 216I.07, and respond to questions raised by the public.
new text end

new text begin (b) At the public meeting and in written comments accepted for at least ten days following
the date of the public meeting, the commission must accept comments on (1) potential
impacts and alternative sites or routes to be considered in the environmental impact statement
prepared under section 216I.06 or the addendum prepared under section 216I.07, and (2)
permit conditions.
new text end

new text begin Subd. 10. new text end

new text begin Draft permit; additional considerations. new text end

new text begin Upon close of the public comment
period following the public meeting in subdivision 9, the commission must:
new text end

new text begin (1) prepare a draft site or route permit for the large energy infrastructure facility. The
draft permit must identify the person or persons who are the permittee, describe the proposed
project, and include proposed permit conditions. A draft site permit does not authorize a
person to construct a large energy infrastructure facility. The commission may change the
draft site permit in any respect before final issuance or may deny the permit; and
new text end

new text begin (2) identify the scope of the environmental impact statement prepared under section
216I.06 or the addendum prepared under section 216I.07. A member of the commission is
prohibited from giving direction to commission environmental review staff on the scope of
an environmental assessment, environmental addendum, or environmental impact statement,
except in a publicly noticed meeting or through a publicly available commission notice or
order.
new text end

new text begin Subd. 11. new text end

new text begin Designating sites and routes; considerations. new text end

new text begin (a) The commission's site and
route permit determinations must (1) be guided by the state's goals to conserve resources;
(2) minimize environmental impacts, and minimize human settlement and other land use
conflicts; (3) consider impacts to environmental justice areas, as defined in section
216B.1691, subdivision 1, paragraph (e), including cumulative impacts, as defined in section
116.065, to environmental justice areas; and (4) ensure the state's energy security through
efficient, cost-effective energy supply and infrastructure.
new text end

new text begin (b) When determining whether to issue a site permit for a large energy infrastructure
facility, the commission must include but is not limited to:
new text end

new text begin (1) evaluating research and investigations relating to: (i) large energy infrastructure
facilities' effects on land, water, and air resources; and (ii) the effects water and air discharges
and electric and magnetic fields resulting from large energy infrastructure facilities have
on public health and welfare, vegetation, animals, materials, and aesthetic values, including
baseline studies, predictive modeling, and evaluating new or improved methods to minimize
adverse impacts of water and air discharges and other matters pertaining to large energy
infrastructure facilities' effects on the water and air environment;
new text end

new text begin (2) conducting environmental evaluation of sites and routes that are proposed for future
development and expansion, and the relationship of proposed sites and routes for future
development and expansion to Minnesota's land, water, air, and human resources;
new text end

new text begin (3) evaluating the effects of measures designed to minimize adverse environmental
effects;
new text end

new text begin (4) evaluating the potential for beneficial uses of waste energy from proposed large
electric power generating plants;
new text end

new text begin (5) analyzing the direct and indirect economic impact of proposed sites and routes,
including but not limited to productive agricultural land lost or impaired;
new text end

new text begin (6) evaluating adverse direct and indirect environmental effects that are unavoidable
should the proposed site and route be accepted;
new text end

new text begin (7) evaluating alternatives to the applicant's proposed site or route, if applicable;
new text end

new text begin (8) when appropriate, evaluating potential routes that would use or parallel existing
railroad and highway rights-of-way;
new text end

new text begin (9) evaluating governmental survey lines and other natural division lines of agricultural
land to minimize interference with agricultural operations;
new text end

new text begin (10) evaluating the future needs for large energy infrastructure facilities in the same
general area as any proposed site or route;
new text end

new text begin (11) evaluating irreversible and irretrievable commitments of resources if the proposed
site or route is approved;
new text end

new text begin (12) when appropriate, considering the potential impacts raised by other state and federal
agencies and local entities;
new text end

new text begin (13) evaluating the benefits of the proposed facility with respect to (i) the protection and
enhancement of environmental quality, and (ii) the reliability of state and regional energy
supplies;
new text end

new text begin (14) evaluating the proposed facility's impact on socioeconomic factors; and
new text end

new text begin (15) evaluating the proposed facility's employment and economic impacts in the facility
site's vicinity and throughout Minnesota, including the quantity, quality, and compensation
level of construction and permanent jobs. The commission must consider a facility's local
employment and economic impacts, and may reject or place conditions on a site or route
permit based on the local employment and economic impacts.
new text end

new text begin (c) If the commission's rules are substantially similar to existing federal agency
regulations the utility is subject to, the commission must apply the federal regulations.
new text end

new text begin (d) The commission is prohibited from designating a site or route that violates state
agency rules.
new text end

new text begin (e) When applicable, the commission must make a specific finding that the commission
considered locating a route for a high-voltage transmission line on an existing high-voltage
transmission route and using parallel existing highway right-of-way. To the extent an existing
high-voltage transmission route or parallel existing right-of-way is not used for the route,
the commission must state the reasons.
new text end

new text begin Subd. 12. new text end

new text begin Final decision. new text end

new text begin (a) The commission must issue a site or route permit that is
demonstrated to be in the public interest pursuant to this chapter. The commission may
require any reasonable conditions in the site or route permit that are necessary to protect
the public interest. The commission maintains continuing jurisdiction over the route and
site permits and any conditions contained in the route and site permits.
new text end

new text begin (b) The commission is prohibited from issuing a site permit in violation of the site
selection standards and criteria established under this section and in rules the commission
adopts. When the commission designates a site, the commission must issue a site permit to
the applicant with any appropriate conditions. The commission must publish a notice of the
commission's decision in the Environmental Quality Board Monitor within 30 days of the
date the commission issues the site permit.
new text end

new text begin (c) The commission is prohibited from issuing a route permit in violation of the route
selection standards and criteria established under this section and in rules the commission
adopts. When the commission designates a route, the commission must issue a permit for
the construction of a high-voltage transmission line that specifies the design, routing,
right-of-way preparation, and facility construction the commission deems necessary,
including any other appropriate conditions. The commission may order the construction of
high-voltage transmission line facilities that are capable of expanding transmission capacity
through multiple circuiting or design modifications. The commission must publish a notice
of the commission's decision in the Environmental Quality Board Monitor within 30 days
of the date the commission issues the route permit.
new text end

new text begin (d) The commission must require as a condition of permit issuance, including the issuance
of a modified permit for a repowering project, as defined in section 216B.243, subdivision
8, paragraph (b), that the recipient of a site or route permit to construct an energy
infrastructure facility, including all of the permit recipient's construction contractors and
subcontractors on the project: (1) must pay no less than the prevailing wage rate, as defined
in section 177.42; and (2) is subject to the requirements and enforcement provisions under
sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.
new text end

new text begin (e) Immediately following the commission's vote granting an applicant a site or route
permit, and prior to issuance of a written commission order embodying the decision, the
applicant may submit to commission staff for review preconstruction compliance filings
specifying details of the applicant's proposed site or route operations.
new text end

new text begin Subd. 13. new text end

new text begin Commission; technical expertise and other assistance. new text end

new text begin (a) The commission
must consult with other state agencies and obtain technical expertise and other assistance
for activities and proceedings under this chapter.
new text end

new text begin (b) Notwithstanding the requirements of section 216B.33, employees of the commission
may take any action related to the requirements of this chapter immediately following a
hearing and vote by the commission, prior to issuing a written order, finding, authorization,
or certification.
new text end

Sec. 6.

new text begin [216I.06] APPLICATIONS; MAJOR REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Environmental review. new text end

new text begin (a) The commission must prepare an
environmental impact statement on each proposed large energy infrastructure facility for
which a complete application has been submitted. An environmental impact statement means
a detailed written statement that describes a large energy infrastructure facility and satisfies
the requirements of section 116D.04. For the purposes of environmental review, the
commission is prohibited from considering whether or not the project is needed. No other
state environmental review documents are required. The commission must study and evaluate
any site or route identified by the commission under section 216I.05, subdivision 10, clause
(2).
new text end

new text begin (b) For a cogeneration facility, as defined in section 216H.01, subdivision 1a, that is a
large electric power generating plant and is not proposed by a utility, the commission must
make a finding in the environmental impact statement whether the project is likely to result
in a net reduction of carbon dioxide emissions, considering both the utility providing electric
service to the proposed cogeneration facility and any reduction in carbon dioxide emissions
resulting from increased efficiency from thermal energy production on the part of the
customer that operates or owns the proposed cogeneration facility.
new text end

new text begin (c) The commission must publish a draft environmental impact statement and a scoping
document for the environmental impact statement under section 216I.05, subdivision 10.
The public may provide comments on the draft environmental impact statement at the public
hearing and comment period under subdivision 2.
new text end

new text begin (d) The commission must publish a final environmental impact statement responding to
the timely substantive comments on the draft environmental impact statement consistent
with the scope approved by the commission under section 216I.05, subdivision 10, clause
(2). The final environmental impact statement must discuss at appropriate points in the final
environmental impact statement any reasonable opposing views relating to scoping issues
that were not adequately discussed in the draft environmental impact statement and must
indicate a response to the reasonable opposing views. When making the commission's final
decision, the commission must consider the final environmental impact statement and the
entirety of the record related to human and environmental impacts.
new text end

new text begin (e) The commission must determine the adequacy of the final environmental impact
statement. The commission must not decide the adequacy for at least ten days after the
availability of the final environmental impact statement is announced in the EQB Monitor.
The final environmental impact statement is adequate if the final environmental impact
statement:
new text end

new text begin (1) addresses the issues and alternatives raised in scoping;
new text end

new text begin (2) provides responses to the timely substantive comments received during the draft
environmental impact statement review process; and
new text end

new text begin (3) was prepared in compliance with the procedures in sections 216I.05 and 216I.06.
new text end

new text begin If the commission finds that the environmental impact statement is not adequate, the
commission must direct staff to respond to the deficiencies and resubmit the revised
environmental impact statement to the commission as soon as possible.
new text end

new text begin Subd. 2. new text end

new text begin Public hearing. new text end

new text begin (a) No sooner than 15 days after the date the draft environmental
impact statement is published, the commission must hold a public hearing on an application
for a large energy infrastructure facility site or route permit. A hearing held to designate a
site or route must be conducted by an administrative law judge from the Office of
Administrative Hearings.
new text end

new text begin (b) The commission may designate a portion of the hearing to be conducted as a contested
case proceeding under chapter 14.
new text end

new text begin (c) The commission must provide notice of the hearing at least ten days before but no
earlier than 45 days before the date the hearing commences. The commission must provide
notice by (1) publishing in a legal newspaper of general circulation in the county in which
the public hearing is to be held, (2) mailing to chief executives of the regional development
commissions, counties, organized towns, townships, and incorporated municipalities in
which a site or route is proposed, and (3) Tribal governments as defined by section 10.65,
subdivision 2.
new text end

new text begin (d) Any person may appear at the hearings and offer testimony and exhibits without the
necessity of intervening as a formal party to the proceedings. The administrative law judge
may allow any person to ask questions of other witnesses.
new text end

new text begin (e) The administrative law judge must hold a portion of the hearing in the area where
the large energy infrastructure facility's location is proposed.
new text end

new text begin (f) The commission and administrative law judge must accept written comments for at
least 20 days after the public hearing's date.
new text end

new text begin Subd. 3. new text end

new text begin Administrative law judge report. new text end

new text begin The administrative law judge must issue a
report and recommendations after completion of post-hearing briefing or the date the public
comment period under subdivision 2 closes, whichever is later.
new text end

new text begin Subd. 4. new text end

new text begin Timing. new text end

new text begin The commission must make a final decision on an application within
60 days of the date the administrative law judge's report is received. A final decision on the
site or route permit request must be made within one year of the date the commission
determines an application is complete. The commission may extend the time limit under
this subdivision for up to three months for just cause or upon agreement with the applicant.
new text end

Sec. 7.

new text begin [216I.07] APPLICATIONS; STANDARD REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Standard review. new text end

new text begin An applicant who seeks a site or route permit for which
the applicant's proposal is one of the projects identified in this section may follow the
procedures under this section in lieu of the procedures under section 216I.06. The applicant
must notify the commission at the time the application is submitted which procedure the
applicant has elected to follow.
new text end

new text begin Subd. 2. new text end

new text begin Applicable projects. new text end

new text begin The requirements and procedures under this section apply
to projects for which the applicant's proposal is:
new text end

new text begin (1) large electric power generating plants with a capacity of less than 80 megawatts;
new text end

new text begin (2) large electric power generating plants that are fueled by natural gas;
new text end

new text begin (3) high-voltage transmission lines with a capacity between 100 and 300 kilovolts;
new text end

new text begin (4) high-voltage transmission lines with a capacity in excess of 300 kilovolts and less
than 30 miles in length in Minnesota;
new text end

new text begin (5) high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at least
80 percent of the distance of the line in Minnesota, as proposed by the applicant, is located
along existing high-voltage transmission line right-of-way;
new text end

new text begin (6) solar energy systems;
new text end

new text begin (7) energy storage systems; and
new text end

new text begin (8) large wind energy conversion systems.
new text end

new text begin Subd. 3. new text end

new text begin Environmental review. new text end

new text begin (a) For the projects identified in subdivision 2 and
following the procedures under this section, the applicant must prepare and submit an
environmental assessment with the application. A draft of the environmental assessment
must also be provided to commission staff as part of the preapplication review under section
216I.05, subdivision 6. The environmental assessment must (1) contain information regarding
the proposed project's human and environmental impacts, and (2) address mitigating measures
for identified impacts. The environmental assessment is the only state environmental review
document that must be prepared for the proposed project.
new text end

new text begin (b) If after the public meeting the commission identifies other sites or routes or potential
impacts for review, the commission must prepare an addendum to the environmental
assessment that evaluates (1) the human and environmental impacts of the alternative site
or route, and (2) any additional mitigating measures related to the identified impacts
consistent with the scoping decision made pursuant to section 216I.06, subdivision 10,
clause (2). The public may provide comments on the environmental assessment and any
addendum to the environmental assessment at the public hearing and comment period under
subdivision 4. When making the commission's final decision, the commission must consider
the environmental assessment, the environmental assessment addendum, if any, and the
entirety of the record related to human and environmental impacts.
new text end

new text begin Subd. 4. new text end

new text begin Public hearing. new text end

new text begin (a) After the commission issues any environmental assessment
addendum and a draft permit under section 216I.05, subdivision 10, the commission must
hold a public hearing in the area where the facility's location is proposed.
new text end

new text begin (b) The commission must provide notice of the public hearing in the same manner as
required under section 216I.06, subdivision 2.
new text end

new text begin (c) The commission must conduct the public hearing under procedures established by
the commission and may request that an administrative law judge from the Office of
Administrative Hearings conduct the hearing and prepare a report.
new text end

new text begin (d) The applicant must be present at the hearing to present evidence and to answer
questions. The commission must provide opportunity at the public hearing for any person
to present comments and to ask questions of the applicant and commission staff. The
commission must also provide interested persons an opportunity to submit written comments
into the record after the public hearing.
new text end

new text begin Subd. 5. new text end

new text begin Timing. new text end

new text begin (a) The commission must make a final decision on an application
within 60 days of the date the public comment period following completion of the public
hearing closes, or the date the report is filed, whichever is later. A final decision on the
request for a site or route permit under this section must be made within six months of the
date the commission determines the application is complete. The commission may extend
the time limit under this subdivision for up to three months for just cause or upon agreement
with the applicant.
new text end

new text begin (b) Immediately following the commission's vote granting an applicant a site or route
permit, and prior to issuance of a written commission order embodying the decision, the
applicant may submit to commission staff for review preconstruction compliance filings
specifying details of the applicant's proposed site or route operations.
new text end

Sec. 8.

new text begin [216I.08] APPLICATIONS; LOCAL REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Local review authorized. new text end

new text begin (a) Notwithstanding sections 216I.06 and
216I.07, an applicant who seeks a site or route permit for one of the projects identified in
subdivision 2 may apply to the local units of government that have jurisdiction over the site
or route for approval to build the project. If local approval is granted, a site or route permit
is not required from the commission. If the applicant files an application with the commission,
the applicant waives the applicant's right to seek local approval for the project.
new text end

new text begin (b) A local unit of government with jurisdiction over a project identified in this section
to whom an applicant has applied for approval to build the project may request that the
commission assume jurisdiction and make a decision on a site or route permit pursuant to
the applicable provisions under this chapter. A local unit of government must file the request
with the commission within 60 days of the date an applicant files an application for the
project with any one local unit of government. If one of the local units of government with
jurisdiction over the project requests that the commission assume jurisdiction, jurisdiction
over the project transfers to the commission. If the local units of government maintain
jurisdiction over the project, the commission must select the appropriate local unit of
government to be the responsible governmental unit to conduct the project's environmental
review.
new text end

new text begin Subd. 2. new text end

new text begin Applicable projects. new text end

new text begin An applicant may seek approval under this section from
a local unit of government to construct:
new text end

new text begin (1) large electric power generating plants and solar energy generating systems with a
capacity of less than 80 megawatts;
new text end

new text begin (2) large electric power generating plants of any size that burn natural gas and are intended
to be a peaking plant;
new text end

new text begin (3) high-voltage transmission lines with a capacity between 100 and 200 kilovolts;
new text end

new text begin (4) substations with a voltage designed for and capable of operation at a nominal voltage
of 100 kilovolts or more;
new text end

new text begin (5) a high-voltage transmission line service extension to a single customer between 200
and 300 kilovolts and less than ten miles in length;
new text end

new text begin (6) a high-voltage transmission line rerouting to serve the demand of a single customer,
if at least 80 percent of the rerouted line is located on property owned or controlled by the
customer or the owner of the transmission line;
new text end

new text begin (7) energy storage systems; and
new text end

new text begin (8) large wind energy conversion systems with a capacity less than 25 megawatts.
new text end

new text begin Subd. 3. new text end

new text begin Notice of application. new text end

new text begin An applicant must notify the commission that the
applicant has elected to seek local approval of the proposed project within ten days of the
date the applicant submits an application to a local unit of government to approve an eligible
project.
new text end

new text begin Subd. 4. new text end

new text begin Environmental review. new text end

new text begin (a) A local unit of government that maintains
jurisdiction over a qualifying project must prepare or request that the applicant prepare an
environmental assessment on the project. The local unit of government must afford the
public an opportunity to participate in developing the scope of the environmental assessment
before the environmental assessment is prepared.
new text end

new text begin (b) Upon completing the environmental assessment, the local unit of government must
publish notice in the EQB Monitor that indicates (1) the environmental assessment is
available for review, (2) how a copy of the document may be reviewed, (3) that the public
may comment on the document, and (4) the procedure for submitting comments to the local
unit of government. Upon completion of the environmental assessment, the local unit of
government must provide a copy of the environmental assessment to the commission.
new text end

new text begin (c) The local unit of government is prohibited from making a final decision on the permit
until at least ten days after the date the notice appears in the EQB Monitor. If more than
one local unit of government has jurisdiction over a project and the local units of government
cannot agree which local unit of government prepares the environmental assessment, any
local unit of government or the applicant may request that the commission select the
appropriate local unit of government to be the responsible governmental unit to conduct an
environmental review of the project.
new text end

Sec. 9.

new text begin [216I.09] PERMIT AMENDMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to a request by the owner of the large
energy infrastructure facility to modify any provision or condition of a site or route permit
issued by the commission, including the following:
new text end

new text begin (1) upgrades or rebuilds an existing electric line and associated facilities to a voltage
capable of operating between 100 kilovolts and 300 kilovolts that does not result in significant
changes in the human and environmental impact of the facility; or
new text end

new text begin (2) repowers or refurbishes a large electric power generating plant, a large wind energy
conversion system, a solar energy generating system, or an energy storage system that
increases the efficiency of the system, provided the project does not increase the developed
area within the permitted site or increase the nameplate capacity of the facility's most recent
interconnection agreement. For a large electric power generating plant, an increase in
efficiency is a reduction in the amount of British thermal units required to produce a kilowatt
hour of electricity at the facility.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin A person that seeks authorization to amend a large energy
infrastructure facility must apply to the commission. The application must be in writing and
must (1) describe the alteration to be made or the amendment sought, and (2) explain why
the request meets the eligibility criteria under subdivision 1. The application must describe
any changes to the environmental impacts evaluated by the commission as part of the initial
permit approval. If there are significant changes to the environmental impacts evaluated by
the commission as part of the initial permit approval, environmental review must be
conducted pursuant to the applicable requirements of Minnesota Rules, chapter 4410 and
parts 7849.1000 to 7849.2100.
new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin The commission must mail notice that the application was received to
the persons on the general list and to the persons on the project contact list, if a project list
exists.
new text end

new text begin Subd. 4. new text end

new text begin Public comment. new text end

new text begin The commission must provide at least a ten-day period for
interested persons to submit comments on the application or to request that the matter be
brought to the commission for consideration. The applicant may respond to submitted
comments within seven days of the date the comment period closes.
new text end

new text begin Subd. 5. new text end

new text begin Timing. new text end

new text begin Within 30 days of the date the applicant responds to submitted
comments under subdivision 4, the commission must decide whether to authorize the permit
amendment, bring the matter to the commission for consideration, or determine that the
application requires a permitting decision under another section in this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Decision. new text end

new text begin The commission may authorize an amendment but impose reasonable
conditions on the approval. The commission must notify the applicant in writing of the
commission's decision and send a copy of the decision to any person who requested
notification or filed comments on the application.
new text end

new text begin Subd. 7. new text end

new text begin Local review. new text end

new text begin For a large electric power generating plant or high-voltage
transmission line that was not issued a permit by the commission, the owner or operator of
the nonpermitted facility may seek approval of a project listed under subdivision 1 from
the local unit of government if the facility qualifies for standard review under section 216I.07
or local review under section 216I.08.
new text end

Sec. 10.

new text begin [216I.10] EXEMPT PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Permit not required. new text end

new text begin A permit issued by the commission is not required
to construct:
new text end

new text begin (1) a small wind energy conversion system;
new text end

new text begin (2) a power plant or solar energy generating system with a capacity of less than 50
megawatts;
new text end

new text begin (3) an energy storage system with a capacity of less than ten megawatts;
new text end

new text begin (4) a transmission line that (i) has a capacity of 100 kilovolts or more, and (ii) is less
than 1,500 feet in length; and
new text end

new text begin (5) a transmission line that has a capacity of less than 100 kilovolts.
new text end

new text begin Subd. 2. new text end

new text begin Other approval. new text end

new text begin A person that proposes a facility listed in subdivision 1 must
(1) obtain any approval required by local, state, or federal units of government with
jurisdiction over the project, and (2) comply with the environmental review requirements
under chapter 116D and Minnesota Rules, chapter 4410.
new text end

Sec. 11.

new text begin [216I.11] PERMITTING REQUIREMENTS; EXCEPTIONS FOR CERTAIN
FACILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Permit not required. new text end

new text begin The following projects do not constitute the
construction of a large energy infrastructure facility and may be constructed without a permit
issued by the commission:
new text end

new text begin (1) maintaining or repairing an existing large energy infrastructure facility within an
existing site or right-of-way;
new text end

new text begin (2) adding equipment at an existing substation that does not (i) require more than a
one-acre expansion of the land needed for the substation, and (ii) involve an increase in the
voltage or changes in the location of existing transmission lines, except that up to the first
five transmission line structures outside the substation may be moved to accommodate the
equipment additions, provided the structures are not moved more than 500 feet from the
existing right-of-way;
new text end

new text begin (3) reconductoring or reconstructing a high-voltage transmission line that does not result
in a change to voltage or a change in right-of-way;
new text end

new text begin (4) relocating a high-voltage transmission line that is required by a local or state agency
as part of road, street, or highway construction;
new text end

new text begin (5) converting the fuel source of a large electric power generating plant to natural gas,
provided the plant is not expanded beyond the developed portion of the plant site; and
new text end

new text begin (6) starting up an existing large electric power generating plant that has been closed for
any period of time at no more than the large electric power generating plant's previous
capacity rating and in a manner that does not involve changing the fuel or expanding the
developed portion of the plant site.
new text end

new text begin Subd. 2. new text end

new text begin Amendment. new text end

new text begin If a modification or other change to an existing large energy
infrastructure facility does not qualify for an exception under subdivision 1, the modification
or change may qualify as an amendment under section 216I.09.
new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin A person that proposes to implement changes to a large energy
infrastructure facility under subdivision 1, clauses (2) to (5), must notify the commission
in writing at least 30 days before commencing construction of the modification or change.
new text end

Sec. 12.

new text begin [216I.13] PERMIT TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin A permittee holding a large energy infrastructure facility
site or route permit may request that the commission transfer the permittee's permit. The
permittee must provide the name of the existing permittee, the name and description of the
entity to which the permit is to be transferred, the reasons for the transfer, a description of
the facilities affected, and the proposed effective date of the transfer. The person to whom
the permit is to be transferred must provide the commission with information the commission
requires to determine whether the new permittee is able to comply with the permit's
conditions. The commission must mail notice of receipt of the application to the persons
on the general list at least seven days in advance of the date the commission considers the
matter. The commission must provide the same notice to persons on the project contact list
if a project contact list exists.
new text end

new text begin Subd. 2. new text end

new text begin Approval of transfer. new text end

new text begin The commission must approve the transfer if the
commission determines that the new permittee complies with the conditions of the permit.
The commission, in approving the transfer of a permit, may impose reasonable additional
conditions in the permit as part of the approval. The commission may decide to hold a public
meeting to provide the public with an opportunity to comment on the request for the transfer
prior to making a decision.
new text end

Sec. 13.

new text begin [216I.14] PERMIT REVOCATION OR SUSPENSION.
new text end

new text begin Subdivision 1. new text end

new text begin Initiation of action to revoke or suspend. new text end

new text begin The commission may initiate
action to consider revoking or suspending a permit on the commission's own motion or
upon the request of any person who has made a prima facie showing by affidavit and
documentation that a violation of this act or the permit has occurred.
new text end

new text begin Subd. 2. new text end

new text begin Hearing. new text end

new text begin If the commission initiates action to consider revoking or suspending
a permit, the commission must provide the permittee with an opportunity for a contested
case hearing conducted by an administrative law judge from the Office of Administrative
Hearings.
new text end

new text begin Subd. 3. new text end

new text begin Finding of violation. new text end

new text begin If the commission finds that a violation of this act or the
permit has occurred, the commission may revoke or suspend the permit, require the permittee
to undertake corrective or ameliorative measures as a condition to avoid revocation or
suspension, or require corrective measures and suspend the permit. When determining the
appropriate sanction, the commission must consider whether:
new text end

new text begin (1) the violation results in any significant additional adverse environmental effects;
new text end

new text begin (2) the results of the violation can be corrected or ameliorated; and
new text end

new text begin (3) suspending or revoking a permit impairs the permittee's electrical power system
reliability.
new text end

Sec. 14. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor shall renumber each section of Minnesota Statutes in Column A with the
number 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 216E.06 new text end	new text begin 216I.12 new text end
	new text begin 216E.07 new text end	new text begin 216I.15 new text end
	new text begin 216E.08, subdivision 2 new text end	new text begin 216I.16, subdivision 1 new text end
	new text begin 216E.08, subdivision 3 new text end	new text begin 216I.16, subdivision 2 new text end
	new text begin 216E.09 new text end	new text begin 216I.17 new text end
	new text begin 216E.10 new text end	new text begin 216I.18 new text end
	new text begin 216F.084 new text end	new text begin 216I.19 new text end
	new text begin 216E.11 new text end	new text begin 216I.20 new text end
	new text begin 216E.12 new text end	new text begin 216I.21 new text end
	new text begin 216E.03, subdivision 8 new text end	new text begin 216I.22 new text end
	new text begin 216E.13 new text end	new text begin 216I.23 new text end
	new text begin 216E.14 new text end	new text begin 216I.24 new text end
	new text begin 216E.15 new text end	new text begin 216I.25 new text end
	new text begin 216E.16 new text end	new text begin 216I.26 new text end
	new text begin 216E.17 new text end	new text begin 216I.27 new text end
	new text begin 216E.18, subdivision 2a new text end	new text begin 216I.28, subdivision 1 new text end
	new text begin 216E.18, subdivision 3 new text end	new text begin 216I.28, subdivision 2 new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota Statutes, chapter 216E, repeals. new text end

new text begin (a) new text end new text begin Minnesota Statutes
2022, sections 216E.001; 216E.01, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, and 10; 216E.02;
216E.021; 216E.03, subdivisions 2, 3a, 3b, 4, and 9; 216E.04, subdivisions 1, 3, 4, 5, 6, 7,
8, and 9; 216E.05, subdivisions 1 and 3; 216E.08, subdivisions 1 and 4; and 216E.18,
subdivisions 1 and 2, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, sections 216E.01, subdivisions 3a, 6, and 9a;
216E.03, subdivisions 1, 3, 5, 6, 7, 10, and 11; 216E.04, subdivision 2; and 216E.05,
subdivision 2, new text end new text begin are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota Statutes, chapter 216F, repeals. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022,
sections 216F.01; 216F.011; 216F.012; 216F.015; 216F.02; 216F.03; 216F.05; 216F.06;
216F.07; 216F.08; and 216F.081, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 216F.04, new text end new text begin is repealed.
new text end

new text begin Subd. 3. new text end

new text begin Minnesota Rules, chapter 7854, repeals. new text end

new text begin Minnesota Rules, parts 7854.0100;
7854.0200; 7854.0300; 7854.0400; 7854.0500; 7854.0600; 7854.0700; 7854.0800;
7854.0900; 7854.1000; 7854.1100; 7854.1200; 7854.1300; 7854.1400; and 7854.1500, new text end new text begin are
repealed.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Rules, chapter 7850, repeals. new text end

new text begin Minnesota Rules, parts 7850.1000;
7850.1100; 7850.1200; 7850.1300; 7850.1400; 7850.1500; 7850.1600; 7850.1700;
7850.1800; 7850.1900; 7850.2000; 7850.2100; 7850.2200; 7850.2300; 7850.2400;
7850.2500; 7850.2600; 7850.2700; 7850.2800; 7850.2900; 7850.3000; 7850.3100;
7850.3200; 7850.3300; 7850.3400; 7850.3500; 7850.3600; 7850.3700; 7850.3800;
7850.3900; 7850.4100; 7850.4200; 7850.4500; 7850.4600; 7850.4700; 7850.4800;
7850.4900; 7850.5000; 7850.5100; 7850.5200; 7850.5300; 7850.5400; 7850.5500; and
7850.5600, new text end new text begin are repealed.
new text end

Sec. 16. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2025.
new text end

ARTICLE 8

CERTIFICATES OF NEED

Section 1.

Minnesota Statutes 2022, section 216B.2421, subdivision 2, is amended to read:

Subd. 2.

Large energy facility.

"Large energy facility" means:

(1) any electric power generating plant or combination of plants at a single site with a
combined capacity of 50,000 kilowatts or more and transmission lines directly associated
with the plant that are necessary to interconnect the plant to the transmission system;

(2) any high-voltage transmission line with a capacity of deleted text begin 200 deleted text end new text begin 300 new text end kilovolts or more and
greater than deleted text begin 1,500 feet deleted text end new text begin one mile new text end in length new text begin in Minnesota new text end ;

(3) any high-voltage transmission line with a capacity of 100 kilovolts or more with
more than ten miles of its length in Minnesota deleted text begin or that crosses a state line deleted text end ;

(4) any pipeline greater than six inches in diameter and having more than 50 miles of
its length in Minnesota used for the transportation of coal, crude petroleum or petroleum
fuels or oil, or their derivatives;

(5) any pipeline for transporting natural or synthetic gas at pressures in excess of 200
pounds per square inch with more than 50 miles of its length in Minnesota;

(6) any facility designed for or capable of storing on a single site more than 100,000
gallons of liquefied natural gas or synthetic gas;

(7) any underground gas storage facility requiring a permit pursuant to section 103I.681;

(8) any nuclear fuel processing or nuclear waste storage or disposal facility; and

(9) any facility intended to convert any material into any other combustible fuel and
having the capacity to process in excess of 75 tons of the material per hour.

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.

Minnesota Statutes 2022, section 216B.243, subdivision 3, is amended to read:

Subd. 3.

Showing required for construction.

No proposed large energy facility shall
be certified for construction unless the applicant can show that demand for electricity cannot
be met more cost effectively through energy conservation and load-management measures
and unless the applicant has otherwise justified its need. In assessing need, the commission
shall evaluate:

(1) the accuracy of the long-range energy demand forecasts on which the necessity for
the facility is based;

(2) the effect of existing or possible energy conservation programs under sections 216C.05
to 216C.30 and this section or other federal or state legislation on long-term energy demand;

(3) the relationship of the proposed facility to overall state energy needs, as described
in the most recent state energy policy and conservation report prepared under section
216C.18, or, in the case of a high-voltage transmission line, the relationship of the proposed
line to regional energy needs, as presented in the transmission plan submitted under section
216B.2425;

(4) promotional activities that may have given rise to the demand for this facility;

(5) benefits of this facility, including its uses to protect or enhance environmental quality,
and to increase reliability of energy supply in Minnesota and the region;

(6) possible alternatives for satisfying the energy demand or transmission needs including
but not limited to potential for increased efficiency and upgrading of existing energy
generation and transmission facilities, load-management programs, and distributed generation new text begin ,
except that the commission must not require evaluation of alternative end points for a
high-voltage transmission line qualifying as a large energy facility unless the alternative
end points are (i) consistent with end points identified in a federally registered planning
authority transmission plan, or (ii) otherwise agreed to for further evaluation by the applicant new text end ;

(7) the policies, rules, and regulations of other state and federal agencies and local
governments;

(8) any feasible combination of energy conservation improvements, required under
section 216B.241, that can (i) replace part or all of the energy to be provided by the proposed
facility, and (ii) compete with it economically;

(9) with respect to a high-voltage transmission line, the benefits of enhanced regional
reliability, access, or deliverability to the extent these factors improve the robustness of the
transmission system or lower costs for electric consumers in Minnesota;

(10) whether the applicant or applicants are in compliance with applicable provisions
of sections 216B.1691 and 216B.2425, subdivision 7, and have filed or will file by a date
certain an application for certificate of need under this section or for certification as a priority
electric transmission project under section 216B.2425 for any transmission facilities or
upgrades identified under section 216B.2425, subdivision 7;

(11) whether the applicant has made the demonstrations required under subdivision 3a;
and

(12) if the applicant is proposing a nonrenewable generating plant, the applicant's
assessment of the risk of environmental costs and regulation on that proposed facility over
the expected useful life of the plant, including a proposed means of allocating costs associated
with that risk.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all pending applications.
new text end

Sec. 3.

Minnesota Statutes 2022, section 216B.243, subdivision 3a, is amended to read:

Subd. 3a.

Use of renewable resource.

The commission may not issue a certificate of
need under this section for a large energy facility that generates electric power deleted text begin by means
of a nonrenewable energy source, or that transmits electric power generated deleted text end by means of a
nonrenewable energy source, unless the applicant for the certificate has demonstrated to
the commission's satisfaction that it has explored the possibility of generating power by
means of renewable energy sources and has demonstrated that the alternative selected is
less expensive deleted text begin ( deleted text end new text begin , new text end including environmental costs deleted text begin ) deleted text end new text begin , new text end than power generated by a renewable
energy source. For purposes of this subdivision, "renewable energy source" includes hydro,
wind, solar, and geothermal energy and the use of trees or other vegetation as fuel.

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 2022, section 216B.243, subdivision 4, is amended to read:

Subd. 4.

Application for certificate; hearing.

Any person proposing to construct a
large energy facility shall apply for a certificate of need and for a site or route permit under
chapter deleted text begin 216E deleted text end new text begin 216I new text end prior to construction of the facility. The application shall be on forms
and in a manner established by the commission. In reviewing each application the commission
shall hold at least one public hearing pursuant to chapter 14. The public hearing shall be
held at a location and hour reasonably calculated to be convenient for the public. An objective
of the public hearing shall be to obtain public opinion on the necessity of granting a certificate
of need and, if a joint hearing is held, a site or route permit. The commission shall designate
a commission employee whose duty shall be to facilitate citizen participation in the hearing
process. Unless the commission determines that a joint hearing on siting and need under
this subdivision and deleted text begin section 216E.03, subdivision 6 deleted text end new text begin chapter 216I new text end deleted text begin , deleted text end is not feasible or more
efficient, or otherwise not in the public interest, a joint hearing under deleted text begin those subdivisions
shall deleted text end new text begin this subdivision and chapter 216I must new text end be held.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 216B.243, subdivision 8, is amended
to read:

Subd. 8.

Exemptions.

(a) This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power
Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
any case where the commission has determined after being advised by the attorney general
that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
the demand of a single customer at a single location, unless the applicant opts to request
that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or
upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural
gas;

(6) the modification of an existing electric generating plant to increase efficiency, as
long as the capacity of the plant is not increased more than ten percent or more than 100
megawatts, whichever is greater;

(7) a large wind energy conversion system, as defined in section deleted text begin 216F.01, subdivision
2 deleted text end new text begin 216I.02, subdivision 12 new text end , or a solar energy generating system, as defined in section deleted text begin 216E.01,
subdivision 9a deleted text end new text begin 216I.02, subdivision 18 new text end , for which a site permit application is submitted by
an independent power producer under chapter deleted text begin 216E or 216F deleted text end new text begin 216I new text end ; deleted text begin or
deleted text end

(8) a large wind energy conversion system, as defined in section deleted text begin 216F.01, subdivision
2 deleted text end new text begin 216I.02, subdivision 12 new text end , or a solar energy generating system deleted text begin that is a large energy facility deleted text end ,
as defined in section deleted text begin 216B.2421, subdivision 2 deleted text end new text begin 216I.02, subdivision 18 new text end , engaging in a
repowering project that:

(i) will not result in the system exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the system exceeding the nameplate capacity under its most recent
interconnection agreement, provided that the Midcontinent Independent System Operator
has provided a signed generator interconnection agreement that reflects the expected net
power increase deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) energy storage systems, as defined in section 216I.02, subdivision 7;
new text end

new text begin (10) transmission lines that directly interconnect large wind energy conversion systems,
solar energy generating systems, or energy storage systems to the transmission system; or
new text end

new text begin (11) relocation of an existing high voltage transmission line to new right-of-way, provided
that any new structures that are installed are not designed for and capable of operation at
higher voltage.
new text end

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating system
that is a large energy facility to increase its efficiency without increasing its nameplate
capacity;

(2) replacing turbines in a large wind energy conversion system without increasing the
nameplate capacity of the system; or

(3) increasing the nameplate capacity of a large wind energy conversion system.

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment to paragraph (a), clause (7), is effective July
1, 2025.
new text end

new text begin (b) The amendments to paragraph (a), clauses (9), (10), and (11), are effective the day
following final enactment, except that the reference to Minnesota Statutes, section 216I.02,
subdivision 7, in paragraph (a), clause (9), is effective July 1, 2025. Prior to July 1, 2025,
the definition of "energy storage system" in Minnesota Statutes, section 216E.01, subdivision
3a, applies.
new text end

Sec. 6.

Minnesota Statutes 2022, section 216B.243, subdivision 9, is amended to read:

Subd. 9.

Renewable energy standard new text begin and carbon-free energy standard new text end facilities.

This
section does not apply to a wind energy conversion system or a solar electric generation
facility that is intended to be used to meet the obligations of section 216B.1691 new text begin , subdivision
2a or 2g new text end ; provided that, after notice and comment, the commission determines that the
facility is a reasonable and prudent approach to meeting a utility's obligations under that
section. When making this determination, the commission must consider:

(1) the size of the facility relative to a utility's total need for renewable resources;

(2) alternative approaches for supplying the renewable energy to be supplied by the
proposed facility;

(3) the facility's ability to promote economic development, as required under section
216B.1691, subdivision 9;

(4) the facility's ability to maintain electric system reliability;

(5) impacts on ratepayers; and

(6) other criteria as the commission may determine are relevant.

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.

Minnesota Statutes 2022, section 216B.246, subdivision 3, is amended to read:

Subd. 3.

Commission procedure.

(a) If an electric transmission line has been approved
for construction in a federally registered planning authority transmission plan, the incumbent
electric transmission owner, or owners if there is more than one owner, shall give notice to
the commission, in writing, within deleted text begin 90 deleted text end new text begin 60 new text end days of approval, regarding its intent to construct,
own, and maintain the electric transmission line. If an incumbent electric transmission owner
gives notice of intent to build the electric transmission line then, unless exempt from the
requirements of section 216B.243, within deleted text begin 18 deleted text end new text begin 12 new text end months from the date of the notice described
in this paragraph deleted text begin or such longer time approved by the commission deleted text end , the incumbent electric
transmission owner shall file an application for a certificate of need under section 216B.243
or certification under section 216B.2425.

(b) If the incumbent electric transmission owner indicates that it does not intend to build
the transmission line, such notice shall fully explain the basis for that decision. If the
incumbent electric transmission owner, or owners, gives notice of intent not to build the
electric transmission line, then the commission may determine whether the incumbent
electric transmission owner or other entity will build the electric transmission line, taking
into consideration issues such as cost, efficiency, reliability, and other factors identified in
this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any electric transmission line that has been approved for construction in a federally
registered planning authority transmission plan on or after that date.
new text end

ARTICLE 9

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2023 Supplement, section 10.65, subdivision 2, is amended
to read:

Subd. 2.

Definitions.

As used in this section, the following terms have the meanings
given:

(1) "agency" means the Department of Administration; Department of Agriculture;
Department of Children, Youth, and Families; Department of Commerce; Department of
Corrections; Department of Education; Department of Employment and Economic
Development; Department of Health; Office of Higher Education; Housing Finance Agency;
Department of Human Rights; Department of Human Services; Department of Information
Technology Services; Department of Iron Range Resources and Rehabilitation; Department
of Labor and Industry; Minnesota Management and Budget; Bureau of Mediation Services;
Department of Military Affairs; Metropolitan Council; Department of Natural Resources;
Pollution Control Agency; Department of Public Safety; Department of Revenue; Department
of Transportation; Department of Veterans Affairs; Gambling Control Board; Racing
Commission; the Minnesota Lottery; the Animal Health Board; new text begin the Public Utilities
Commission; new text end and the Board of Water and Soil Resources;

(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal
governments in the development of policy on matters that have Tribal implications.
Consultation is the proactive, affirmative process of identifying and seeking input from
appropriate Tribal governments and considering their interest as a necessary and integral
part of the decision-making process. This definition adds to statutorily mandated notification
procedures. During a consultation, the burden is on the agency to show that it has made a
good faith effort to elicit feedback. Consultation is a formal engagement between agency
officials and the governing body or bodies of an individual Minnesota Tribal government
that the agency or an individual Tribal government may initiate. Formal meetings or
communication between top agency officials and the governing body of a Minnesota Tribal
government is a necessary element of consultation;

(3) "matters that have Tribal implications" means rules, legislative proposals, policy
statements, or other actions that have substantial direct effects on one or more Minnesota
Tribal governments, or on the distribution of power and responsibilities between the state
and Minnesota Tribal governments;

(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located
in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech
Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian
Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community;
and Upper Sioux Community; and

(5) "timely and meaningful" means done or occurring at a favorable or useful time that
allows the result of consultation to be included in the agency's decision-making process for
a matter that has Tribal implications.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, section 116C.83, subdivision 6, is amended to read:

Subd. 6.

Environmental review and protection.

(a) The siting, construction, and
operation of an independent spent-fuel storage installation located on the site of a Minnesota
generation facility for dry cask storage of spent nuclear fuel generated solely by that facility
is subject to all environmental review and protection provisions of this chapter and chapters
115, 115B, 116, 116B, 116D, and 216B, and rules associated with those chapters, except
those statutes and rules that apply specifically to a radioactive waste management facility
as defined in section 116C.71, subdivision 7.

(b) An environmental impact statement is required under chapter 116D for a proposal
to construct and operate a new or expanded independent spent-fuel storage installation. The
deleted text begin commissioner of the Department of Commerce shall be deleted text end new text begin Public Utilities Commission is new text end the
responsible governmental unit for the environmental impact statement. Prior to finding the
statement adequate, the deleted text begin commissioner deleted text end new text begin commission new text end must find that the applicant has
demonstrated that the facility is designed to provide a reasonable expectation that the
operation of the facility will not result in groundwater contamination in excess of the
standards established in section 116C.76, subdivision 1, clauses (1) to (3).

Sec. 3.

Minnesota Statutes 2022, section 216A.037, subdivision 1, is amended to read:

Subdivision 1.

Ex parte communications prohibitions; rules.

(a) The commission
shall adopt rules under chapter 14 prescribing permissible and impermissible ex parte
communications. The ex parte rules may prohibit only ex parte communications, directly
or indirectly, between a commissioner and a participant or party under the commission's
rules of practice and procedure relating to:

(1) a material issue during a pending contested case proceeding;

(2) a material issue in a rulemaking proceeding after the beginning of commission
deliberations;

(3) a material issue in a disputed formal petition; and

(4) any other communication impermissible by law.

(b) The commission may apply ex parte prohibitions, prospectively and after notice to
affected parties, to other commission proceedings as the commission deems necessary.

(c) A contested case is pending from the time the commission refers the matter to the
Office of Administrative Hearings until the commission has issued its final order, and the
time to petition for reconsideration has expired or the commission has issued an order finally
disposing an application for reconsideration, whichever is later.

new text begin (d) Commission staff and consultants that perform environmental review and other
activities identified in chapters 216G and 216I are not parties, participants, or decision
making personnel, as defined under Minnesota Rules, part 7845.7000.
new text end

Sec. 4.

Minnesota Statutes 2022, section 216A.07, subdivision 3, is amended to read:

Subd. 3.

Intervention in commission proceeding.

new text begin (a) new text end The commissioner may intervene
as a party in all proceedings before the commission. When intervening in gas or electric
hearings, the commissioner shall prepare and defend testimony designed to new text begin :
new text end

new text begin (1) new text end encourage energy conservation improvements as defined in section 216B.241 deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) ensure that the greenhouse gas reduction goals are attained on a schedule that keeps
pace with the reduction timetable in section 216H.02, subdivision 1;
new text end

new text begin (3) ensure that the renewable energy standards, solar energy goal, and carbon-free
standards are achieved according to the schedules under section 216B.1691, subdivisions
2a, 2f, and 2g, respectively; and
new text end

new text begin (4) ensure compliance with state environmental policy, as stated in section 116D.02.
new text end

new text begin (b) new text end The attorney general shall act as counsel in the proceedings.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 216E.06, is amended to read:

216E.06 EMERGENCY deleted text begin PERMIT deleted text end new text begin PERMITS new text end .

new text begin Subdivision 1. new text end

new text begin Utility emergency action. new text end

deleted text begin (a) deleted text end Any utility whose deleted text begin electric power deleted text end system
requires the immediate construction of a large deleted text begin electric power deleted text end new text begin energy infrastructure new text end facility
due to a major unforeseen event may apply to the commission for an emergency permit.
The application deleted text begin shall deleted text end new text begin must new text end provide notice in writing of the major unforeseen event and the
need for immediate construction. The permit must be issued in a timely manner, no later
than 195 days after the commission's acceptance of the application and upon a finding by
the commission that (1) a demonstrable emergency exists, (2) the emergency requires
immediate construction, and (3) adherence to the procedures and time schedules specified
deleted text begin in section 216E.03 would jeopardize deleted text end new text begin under this chapter jeopardizes new text end the utility's electric
power system or deleted text begin would jeopardize deleted text end new text begin jeopardizes new text end the utility's ability to meet the electric needs
of deleted text begin its deleted text end new text begin the utility's new text end customers in an orderly and timely manner.

new text begin Subd. 2. new text end

new text begin Utility emergency procedures. new text end

deleted text begin (b) deleted text end A public hearing to determine if an
emergency exists must be held within 90 days of the application. The commission, after
notice and hearing, deleted text begin shall deleted text end new text begin must new text end adopt rules specifying the criteria for emergency certification.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 216E.07, is amended to read:

216E.07 ANNUAL HEARING.

The commission deleted text begin shall deleted text end new text begin must new text end hold an annual public hearing at a time and place prescribed
by rule in order to afford interested persons an opportunity to be heard regarding any matters
relating to the siting and routing of large deleted text begin electric power deleted text end new text begin energy infrastructure new text end facilities. At
the meeting, the commission deleted text begin shall deleted text end new text begin must new text end advise the public of the permits issued by the
commission in the past year. The commission deleted text begin shall deleted text end new text begin must new text end provide at least ten days but no
more than 45 days' notice of the annual meeting by mailing or serving electronically, as
provided in section 216.17, a notice to those persons who have requested notice and by
publication in the EQB Monitor and the commission's weekly calendar.

Sec. 7.

Minnesota Statutes 2022, section 216E.08, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Other deleted text end Public participation.

The commission deleted text begin shall deleted text end new text begin must new text end adopt broad spectrum
citizen participation as a principal of operation. The form of public participation deleted text begin shall deleted text end new text begin must new text end
not be limited to public new text begin meetings and new text end hearings deleted text begin and advisory task forces deleted text end and deleted text begin shall deleted text end new text begin must new text end be
consistent with the commission's rules and guidelines deleted text begin as provided for in deleted text end new text begin under new text end section
deleted text begin 216E.16 deleted text end new text begin 216I.24 new text end .

Sec. 8.

Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 1, is amended
to read:

Subdivision 1.

Site or route permit prevails over local provisions.

To assure the
paramount and controlling effect of the provisions herein over other state agencies, regional,
county, and local governments, and special purpose government districts, the issuance of a
site permit or route permit and subsequent purchase and use of deleted text begin such deleted text end new text begin the new text end site or route locations
for large deleted text begin electric power deleted text end new text begin energy infrastructure new text end facility purposes deleted text begin shall be deleted text end new text begin is new text end the sole site or
route approval required to be obtained by the deleted text begin utility deleted text end new text begin permittee new text end . deleted text begin Such deleted text end new text begin The new text end permit deleted text begin shall
supersede deleted text end new text begin supersedes new text end and deleted text begin preempt deleted text end new text begin preempts new text end all zoning, building, or land use rules,
regulations, or ordinances promulgated by regional, county, local and special purpose
government.

Sec. 9.

Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 2, is amended
to read:

Subd. 2.

Other state permits.

Notwithstanding anything herein to the contrary, deleted text begin utilities
shall deleted text end new text begin a permittee must new text end obtain state permits that may be required to construct and operate
large deleted text begin electric power deleted text end new text begin energy infrastructure new text end facilities. A state agency in processing a deleted text begin utility's deleted text end new text begin
permittee's new text end facility permit application deleted text begin shall be deleted text end new text begin is new text end bound to the decisions of the commission deleted text begin , deleted text end
with respect to new text begin (1) new text end the site or route designation, and deleted text begin with respect to deleted text end new text begin (2) new text end other matters for
which authority has been granted to the commission by this chapter.

Sec. 10.

Minnesota Statutes 2023 Supplement, section 216E.10, subdivision 3, is amended
to read:

Subd. 3.

State agency participation.

(a) new text begin A new text end state deleted text begin agencies deleted text end new text begin agency new text end authorized to issue
permits required deleted text begin for construction or operation of deleted text end new text begin to construct or operate a new text end large deleted text begin electric
power facilities shall deleted text end new text begin energy infrastructure facility must new text end participate during routing and siting
at public hearings and all other activities of the commission on specific site or route
designations and design considerations of the commission, and deleted text begin shall deleted text end new text begin must new text end clearly state
whether the site or route being considered for designation or permit and other design matters
under consideration for approval deleted text begin will be in compliance deleted text end new text begin complies new text end with state agency standards,
rules, or policies.

(b) An applicant for a permit under this section or under chapter 216G deleted text begin shall deleted text end new text begin must new text end notify
the commissioner of agriculture if the proposed project deleted text begin will impact deleted text end new text begin impacts new text end cultivated
agricultural land deleted text begin , as that term is defined in section 216G.01, subdivision 4 deleted text end . The commissioner
may participate and advise the commission as to whether to grant a permit for the project
and the best options for mitigating adverse impacts to agricultural lands if the permit is
granted. The Department of Agriculture deleted text begin shall be deleted text end new text begin is new text end the lead agency on the development of
any agricultural mitigation plan required for the project.

new text begin (c) The Minnesota State Historic Preservation Office must participate in the commission's
siting and routing activities described in this section. The commission's consideration and
resolution of Minnesota State Historic Preservation Office's comments satisfies the
requirements of section 138.665, when applicable.
new text end

Sec. 11.

Minnesota Statutes 2022, section 216E.11, is amended to read:

216E.11 IMPROVEMENT OF SITES AND ROUTES.

deleted text begin Utilities that have acquired deleted text end new text begin A permittee that acquires new text end a site or route in accordance with
this chapter may proceed to construct or improve the site or route for the intended purposes
at any time, subject to section deleted text begin 216E.10, subdivision 2 deleted text end new text begin 216I.16, subdivision 2 new text end , provided that
if the construction and improvement has not commenced within four years after a permit
for the site or route has been issued, deleted text begin then deleted text end the deleted text begin utility deleted text end new text begin permittee new text end must certify to the commission
that the site or route continues to meet the conditions upon which the site or route permit
was issued.

Sec. 12.

Minnesota Statutes 2022, section 216E.13, is amended to read:

216E.13 FAILURE TO ACT.

If the commission fails to act within the times specified deleted text begin in section 216E.03 deleted text end new text begin under this
chapter new text end , the applicant or any affected person may seek an order of the district court requiring
the commission to designate or refuse to designate a site or route.

Sec. 13.

Minnesota Statutes 2022, section 216E.14, is amended to read:

216E.14 REVOCATION OR SUSPENSION.

A site or route permit may be revoked or suspended by the commission after adequate
notice of the alleged grounds for revocation or suspension and a full and fair hearing in
which the affected deleted text begin utility deleted text end new text begin permittee new text end has an opportunity to confront any witness and respond
to any evidence against deleted text begin it deleted text end new text begin the permittee new text end and to present rebuttal or mitigating evidence upon
a finding by the commission of:

(1) any false statement knowingly made in the application or in accompanying statements
or studies required of the applicant, if a true statement would have warranted a change in
the commission's findings;

(2) failure to comply with material conditions of the site certificate or construction
permit, or failure to maintain health and safety standards; or

(3) any material violation of the provisions of this chapter, any rule promulgated pursuant
thereto, or any order of the commission.

Sec. 14.

Minnesota Statutes 2022, section 216E.15, is amended to read:

216E.15 JUDICIAL REVIEW.

Any applicant, party or person aggrieved by the issuance of a site or route permit new text begin , minor
alteration, amendment, new text end or emergency permit from the commission or a certification of
continuing suitability filed by a deleted text begin utility deleted text end new text begin permittee new text end with the commission or by a final order in
accordance with any rules promulgated by the commission, may appeal to the court of
appeals in accordance with chapter 14. The appeal deleted text begin shall deleted text end new text begin must new text end be filed within 30 days after
the deleted text begin publication in the State Register of deleted text end new text begin date the new text end notice of the deleted text begin issuance of the permit by the
commission or deleted text end new text begin commission's permit issuance is published in the EQB Monitor, new text end certification new text begin
is new text end filed with the commission new text begin , new text end or the deleted text begin filing of deleted text end any final order new text begin is filed new text end by the commission.

Sec. 15.

Minnesota Statutes 2022, section 216E.16, is amended to read:

216E.16 RULES.

new text begin Subdivision 1. new text end

new text begin Commission rules. new text end

The commission, in order to give effect to the purposes
of this chapter, may adopt rules consistent with this chapter, including promulgation of site
and route designation criteria, the description of the information to be furnished by the
utilities, establishment of minimum guidelines for public participation in the development,
revision, and enforcement of any rule, plan, or program established by the commission,
procedures for the revocation or suspension of a site or route permit, and the procedure and
timeliness for proposing alternative routes and sites. deleted text begin No deleted text end new text begin A new text end rule adopted by the commission
deleted text begin shall deleted text end new text begin must not new text end grant priority to state-owned wildlife management areas over agricultural
lands in the designation of route avoidance areas. deleted text begin The provisions of deleted text end Chapter 14 deleted text begin shall apply deleted text end new text begin
applies new text end to the appeal of rules adopted by the commission to the same extent as it applies to
review of rules adopted by any other agency of state government.

new text begin Subd. 2. new text end

new text begin Office of Administrative Hearings rules. new text end

The chief administrative law judge
deleted text begin shall deleted text end new text begin must new text end adopt procedural rules for public hearings relating to the site and route permit
process. The rules deleted text begin shall deleted text end new text begin must new text end attempt to maximize citizen participation in these processes
consistent with the time limits for commission decision established deleted text begin in sections 216E.03,
subdivision 10, and 216E.04, subdivision 7 deleted text end new text begin under this chapter new text end .

Sec. 16.

Minnesota Statutes 2022, section 216E.18, subdivision 2a, is amended to read:

Subd. 2a.

deleted text begin Route deleted text end Application fee; appropriation.

deleted text begin Every deleted text end new text begin An new text end applicant for a deleted text begin transmission
line deleted text end new text begin site or new text end route permit deleted text begin shall deleted text end new text begin must new text end pay to the deleted text begin commissioner of commerce deleted text end new text begin commission new text end a fee
to cover the necessary and reasonable costs incurred by the commission deleted text begin in acting deleted text end new text begin to act new text end on
the permit application and deleted text begin carrying deleted text end new text begin carry new text end out the requirements of this chapter. The
commission may adopt rules providing for deleted text begin the deleted text end new text begin fee new text end payment deleted text begin of the fee deleted text end . Section 16A.1283
does not apply to deleted text begin the deleted text end establishment of deleted text begin this deleted text end new text begin the new text end fee new text begin under this subdivision new text end . All money received
deleted text begin pursuant to deleted text end new text begin under new text end this subdivision deleted text begin shall deleted text end new text begin must new text end be deposited in a special account. Money in
the account is appropriated to the deleted text begin commissioner of commerce deleted text end new text begin commission new text end to pay expenses
incurred deleted text begin in processing deleted text end new text begin to process new text end applications for new text begin site and new text end route permits in accordance with
this chapter and new text begin , new text end in the event deleted text begin the deleted text end expenses are less than the fee paid, to refund the excess new text begin
fee paid new text end to the applicant.

Sec. 17.

new text begin [216G.025] ROUTING PERMIT; ENVIRONMENTAL REVIEW; CARBON
DIOXIDE PIPELINES.
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) "Carbon dioxide pipeline" means a pipeline located in Minnesota that transports
carbon dioxide in a liquid, gaseous, or supercritical state.
new text end

new text begin (c) "Commission" means the Public Utilities Commission.
new text end

new text begin (d) "Supercritical" means a physical state in which a substance is more dense than a gas
but less dense than a liquid.
new text end

new text begin Subd. 2. new text end

new text begin Routing permit required. new text end

new text begin (a) A person is prohibited from constructing or
operating a carbon dioxide pipeline without a route permit issued by the commission under
this chapter.
new text end

new text begin (b) A person seeking to construct or operate a carbon dioxide pipeline is prohibited from
applying to the commission for a conditional exclusion or partial exemption from pipeline
route selection procedures under Minnesota Rules, chapter 7852.
new text end

new text begin Subd. 3. new text end

new text begin Carbon dioxide pipeline; environmental review. new text end

new text begin Notwithstanding any other
law or rule, an environmental impact statement must be prepared under Minnesota Rules,
chapter 4410, prior to issuing a route permit under this section for a carbon dioxide pipeline.
The commission is the governmental unit responsible for preparing an environmental impact
statement under this subdivision.
new text end

Sec. 18. new text begin TRANSFER OF DUTIES; ENVIRONMENTAL ANALYSIS OF LARGE
ENERGY INFRASTRUCTURE FACILITIES.
new text end

new text begin (a) The responsibility for administering the environmental analysis of large energy
infrastructure facilities, as described in this act, is transferred from the Department of
Commerce to the Public Utilities Commission on July 1, 2025.
new text end

new text begin (b) Minnesota Statutes, section 15.039, applies to the transfer of duties required under
this section. Assessments are considered appropriations under Minnesota Statutes, section
15.039, subdivision 6, for the purposes of the transfer under this section.
new text end

Sec. 19. new text begin ADMINISTRATIVE RULEMAKING.
new text end

new text begin (a) The Public Utilities Commission must adopt rules, using the expedited process under
Minnesota Statutes, section 14.389, that amend Minnesota Rules, chapters 7849 and 7850,
to conform with the changes made in this act.
new text end

new text begin (b) The Environmental Quality Board must adopt rules, using the expedited process
under Minnesota Statutes, section 14.389, that amend Minnesota Rules, chapter 4410, to
conform with the changes made in this act.
new text end

new text begin (c) The Public Utilities Commission must amend Minnesota Rules, chapter 7850, to
authorize applicants for site and route permits to begin submitting preconstruction compliance
filings to commission staff for review immediately following the commission's vote to grant
the applicant a site or route permit, but prior to issuing a written commission order.
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. 20. new text begin APPROPRIATION; PUBLIC UTILITIES COMMISSION.
new text end

new text begin $5,000 in fiscal year 2025 is appropriated from the general fund to the Public Utilities
Commission for the administrative costs of rulemaking in this article. This is a onetime
appropriation and is available until June 30, 2026.
new text end

Sec. 21. new text begin APPROPRIATION; DEPARTMENT OF COMMERCE.
new text end

new text begin $1,200,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of commerce to facilitate timely actions in nonenvironmental review, routing and siting
proceedings, and to intervene as a party in Public Utilities Commission permitting
proceedings. The base in fiscal year 2026 and later is $2,400,000.
new text end

Sec. 22. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 3 and 5 to 16 are effective July 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: S4942-4

3.7371 COMPENSATION FOR CROP OR FENCE DAMAGE CAUSED BY ELK.

Subd. 7.

Rules.

The commissioner shall adopt rules and may amend rules to carry out this section. The commissioner may use the expedited rulemaking process in section 14.389 to adopt and amend rules authorized in this section. The rules must include:

(1) methods of valuation of crops damaged or destroyed;

(2) criteria for determination of the cause of the crop damage or destruction;

(3) notice requirements by the owner of the damaged or destroyed crop;

(4) compensation rates for fence damage or destruction that must not exceed $1,800 per claimant per fiscal year; and

(5) any other matters determined necessary by the commissioner to carry out this section.

34.07 BEVERAGE INSPECTION ACCOUNT; APPROPRIATION.

A beverage inspection account is created in the agricultural fund. All fees and fines collected under this chapter shall be credited to the beverage inspection account. Money in the account is appropriated to the commissioner for inspection and supervision under this chapter.

216E.001 CITATION.

This chapter shall be known as the "Minnesota Power Plant Siting Act."

216E.01 DEFINITIONS.

Subdivision 1.

Applicability.

As used in this chapter, the terms defined in this section have the meanings given them, unless otherwise provided or indicated by the context.

Subd. 2.

Commission.

"Commission" means the Public Utilities Commission.

Subd. 3.

Construction.

"Construction" means any clearing of land, excavation, or other action that would adversely affect the natural environment of the site or route but does not include changes needed for temporary use of sites or routes for nonutility purposes, or uses in securing survey or geological data, including necessary borings to ascertain foundation conditions.

Subd. 3a.

Energy storage system.

"Energy storage system" means equipment and associated facilities designed with a nameplate capacity of 10,000 kilowatts or more that is capable of storing generated electricity for a period of time and delivering the electricity for use after storage.

Subd. 4.

High-voltage transmission line.

"High-voltage transmission line" means a conductor of electric energy and associated facilities designed for and capable of operation at a nominal voltage of 100 kilovolts or more and is greater than 1,500 feet in length.

Subd. 5.

Large electric power generating plant.

"Large electric power generating plant" shall mean electric power generating equipment and associated facilities designed for or capable of operation at a capacity of 50,000 kilowatts or more.

Subd. 6.

Large electric power facilities.

"Large electric power facilities" means high voltage transmission lines, large electric power generating plants, and energy storage systems.

Subd. 7.

Person.

"Person" shall mean an individual, partnership, joint venture, private or public corporation, association, firm, public service company, cooperative, political subdivision, municipal corporation, government agency, public utility district, or any other entity, public or private, however organized.

Subd. 8.

Route.

"Route" means the location of a high voltage transmission line between two end points. The route may have a variable width of up to 1.25 miles.

Subd. 9.

Site.

"Site" means the location of a large electric power generating plant.

Subd. 9a.

Solar energy generating system.

"Solar energy generating system" means a set of devices whose primary purpose is to produce electricity by means of any combination of collecting, transferring, or converting solar-generated energy, and may include transmission lines designed for and capable of operating at 100 kilovolts or less that interconnect a solar energy generating system with a high-voltage transmission line.

Subd. 10.

Utility.

"Utility" shall mean any entity engaged or intending to engage in this state in the generation, transmission, or distribution of electric energy including, but not limited to, a private investor-owned utility, cooperatively owned utility, and a public or municipally owned utility.

216E.02 SITING AUTHORITY.

Subdivision 1.

Policy.

The legislature hereby declares it to be the policy of the state to locate large electric power facilities in an orderly manner compatible with environmental preservation and the efficient use of resources. In accordance with this policy the commission shall choose locations that minimize adverse human and environmental impact while insuring continuing electric power system reliability and integrity and insuring that electric energy needs are met and fulfilled in an orderly and timely fashion.

Subd. 2.

Jurisdiction.

The commission is hereby given the authority to provide for site and route selection for large electric power facilities. The commission shall issue permits for large electric power facilities in a timely fashion and in a manner consistent with the overall determination of need for the project under section 216B.243 or 216B.2425. Questions of need, including size, type, and timing; alternative system configurations; and voltage must not be included in the scope of environmental review conducted under this chapter.

Subd. 3.

Interstate routes.

If a route is proposed in two or more states, the commission shall attempt to reach agreement with affected states on the entry and exit points prior to designating a route. The commission, in discharge of its duties pursuant to this chapter may make joint investigations, hold joint hearings within or without the state, and issue joint or concurrent orders in conjunction or concurrence with any official or agency of any state or of the United States. The commission may negotiate and enter into any agreements or compacts with agencies of other states, pursuant to any consent of Congress, for cooperative efforts in certifying the construction, operation, and maintenance of large electric power facilities in accord with the purposes of this chapter and for the enforcement of the respective state laws regarding such facilities.

216E.021 SOLAR ENERGY SYSTEM SIZE DETERMINATION.

(a) This section must be used to determine whether a combination of solar energy generating systems meets the definition of large electric power generating plant and is subject to the commission's siting authority jurisdiction under this chapter. The alternating current nameplate capacity of one solar energy generating system must be combined with the alternating current nameplate capacity of any other solar energy generating system that:

(1) is constructed within the same 12-month period as the solar energy generating system; and

(2) exhibits characteristics of being a single development, including but not limited to ownership structure, an umbrella sales arrangement, shared interconnection, revenue sharing arrangements, and common debt or equity financing.

(b) The commissioner of commerce shall provide forms and assistance for applicants to make a request for a size determination. Upon written request of an applicant, the commissioner shall provide a written size determination within 30 days of receipt of the request and of any information requested by the commissioner. In the case of a dispute, the chair of the Public Utilities Commission shall make the final size determination.

216E.03 DESIGNATING SITES AND ROUTES.

Subdivision 1.

Site permit.

No person may construct a large electric generating plant or an energy storage system without a site permit from the commission. A large electric generating plant or an energy storage system may be constructed only on a site approved by the commission. The commission must incorporate into one proceeding the route selection for a high-voltage transmission line that is directly associated with and necessary to interconnect the large electric generating plant to the transmission system and whose need is certified under section 216B.243.

Subd. 2.

Route permit.

No person may construct a high-voltage transmission line without a route permit from the commission. A high-voltage transmission line may be constructed only along a route approved by the commission.

Subd. 3.

Application.

Any person seeking to construct a large electric power facility must apply to the commission for a site or route permit, as applicable. The application shall contain such information as the commission may require. The applicant shall propose at least two sites for a large electric power facility and two routes for a high-voltage transmission line. Neither of the two proposed routes may be designated as a preferred route and all proposed routes must be numbered and designated as alternatives. The commission shall determine whether an application is complete and advise the applicant of any deficiencies within ten days of receipt. An application is not incomplete if information not in the application can be obtained from the applicant during the first phase of the process and that information is not essential for notice and initial public meetings.

Subd. 3a.

Project notice.

At least 90 days before filing an application with the commission, the applicant shall provide notice to each local unit of government within which a route may be proposed. The notice must describe the proposed project and the opportunity for a preapplication consultation meeting with local units of government as provided in subdivision 3b.

Subd. 3b.

Preapplication consultation meetings.

Within 30 days of receiving a project notice, local units of government may request the applicant to hold a consultation meeting with local units of government. Upon receiving notice from a local unit of government requesting a preapplication consultation meeting, the applicant shall arrange the meeting at a location chosen by the local units of government. A single public meeting for which each local government unit requesting a meeting is given notice satisfies the meeting requirement of this subdivision.

Subd. 4.

Application notice.

Within 15 days after submission of an application to the commission, the applicant shall publish notice of the application in a legal newspaper of general circulation in each county in which the site or route is proposed and send a copy of the application by certified mail to any regional development commission, county, incorporated municipality, and town in which any part of the site or route is proposed. Within the same 15 days, the applicant shall also send a notice of the submission of the application and description of the proposed project to each owner whose property is on or adjacent to any of the proposed sites for the power plant or along any of the proposed routes for the transmission line. The notice must identify a location where a copy of the application can be reviewed. For the purpose of giving mailed notice under this subdivision, owners are those shown on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer; but other appropriate records may be used for this purpose. The failure to give mailed notice to a property owner, or defects in the notice, does not invalidate the proceedings, provided a bona fide attempt to comply with this subdivision has been made. Within the same 15 days, the applicant shall also send the same notice of the submission of the application and description of the proposed project to those persons who have requested to be placed on a list maintained by the commission for receiving notice of proposed large electric generating power plants and high voltage transmission lines.

Subd. 5.

Environmental review.

(a) The commissioner of the Department of Commerce shall prepare for the commission an environmental impact statement on each proposed large electric power facility for which a complete application has been submitted. The commissioner shall not consider whether or not the project is needed. No other state environmental review documents shall be required. The commissioner shall study and evaluate any site or route proposed by an applicant and any other site or route the commission deems necessary that was proposed in a manner consistent with rules concerning the form, content, and timeliness of proposals for alternate sites or routes, excluding any alternate site for a solar energy generating system that was not proposed by an applicant.

(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a large electric power generating plant and is not proposed by a utility, the commissioner must make a finding in the environmental impact statement whether the project is likely to result in a net reduction of carbon dioxide emissions, considering both the utility providing electric service to the proposed cogeneration facility and any reduction in carbon dioxide emissions as a result of increased efficiency from the production of thermal energy on the part of the customer operating or owning the proposed cogeneration facility.

Subd. 6.

Public hearing.

The commission shall hold a public hearing on an application for a site or route permit for a large electric power facility. All hearings held for designating a site or route shall be conducted by an administrative law judge from the Office of Administrative Hearings pursuant to the contested case procedures of chapter 14. Notice of the hearing shall be given by the commission at least ten days in advance but no earlier than 45 days prior to the commencement of the hearing. Notice shall be by publication in a legal newspaper of general circulation in the county in which the public hearing is to be held and by certified mail to chief executives of the regional development commissions, counties, organized towns, townships, and the incorporated municipalities in which a site or route is proposed. Any person may appear at the hearings and offer testimony and exhibits without the necessity of intervening as a formal party to the proceedings. The administrative law judge may allow any person to ask questions of other witnesses. The administrative law judge shall hold a portion of the hearing in the area where the power plant or transmission line is proposed to be located.

Subd. 7.

Considerations in designating sites and routes.

(a) The commission's site and route permit determinations must be guided by the state's goals to conserve resources, minimize environmental impacts, minimize human settlement and other land use conflicts, and ensure the state's electric energy security through efficient, cost-effective power supply and electric transmission infrastructure.

(b) To facilitate the study, research, evaluation, and designation of sites and routes, the commission shall be guided by, but not limited to, the following considerations:

(1) evaluation of research and investigations relating to the effects on land, water and air resources of large electric power facilities and the effects of water and air discharges and electric and magnetic fields resulting from such facilities on public health and welfare, vegetation, animals, materials and aesthetic values, including baseline studies, predictive modeling, and evaluation of new or improved methods for minimizing adverse impacts of water and air discharges and other matters pertaining to the effects of power plants on the water and air environment;

(2) environmental evaluation of sites and routes proposed for future development and expansion and their relationship to the land, water, air and human resources of the state;

(3) evaluation of the effects of new electric power generation and transmission technologies and systems related to power plants designed to minimize adverse environmental effects;

(4) evaluation of the potential for beneficial uses of waste energy from proposed large electric power generating plants;

(5) analysis of the direct and indirect economic impact of proposed sites and routes including, but not limited to, productive agricultural land lost or impaired;

(6) evaluation of adverse direct and indirect environmental effects that cannot be avoided should the proposed site and route be accepted;

(7) evaluation of alternatives to the applicant's proposed site or route proposed pursuant to subdivisions 1 and 2;

(8) evaluation of potential routes that would use or parallel existing railroad and highway rights-of-way;

(9) evaluation of governmental survey lines and other natural division lines of agricultural land so as to minimize interference with agricultural operations;

(10) evaluation of the future needs for additional high-voltage transmission lines in the same general area as any proposed route, and the advisability of ordering the construction of structures capable of expansion in transmission capacity through multiple circuiting or design modifications;

(11) evaluation of irreversible and irretrievable commitments of resources should the proposed site or route be approved;

(12) when appropriate, consideration of problems raised by other state and federal agencies and local entities;

(13) evaluation of the benefits of the proposed facility with respect to (i) the protection and enhancement of environmental quality, and (ii) the reliability of state and regional energy supplies;

(14) evaluation of the proposed facility's impact on socioeconomic factors; and

(15) evaluation of the proposed facility's employment and economic impacts in the vicinity of the facility site and throughout Minnesota, including the quantity and quality of construction and permanent jobs and their compensation levels. The commission must consider a facility's local employment and economic impacts, and may reject or place conditions on a site or route permit based on the local employment and economic impacts.

(c) If the commission's rules are substantially similar to existing regulations of a federal agency to which the utility in the state is subject, the federal regulations must be applied by the commission.

(d) No site or route shall be designated which violates state agency rules.

(e) The commission must make specific findings that it has considered locating a route for a high-voltage transmission line on an existing high-voltage transmission route and the use of parallel existing highway right-of-way and, to the extent those are not used for the route, the commission must state the reasons.

Subd. 9.

Timing.

The commission shall make a final decision on an application within 60 days after receipt of the report of the administrative law judge. A final decision on the request for a site permit or route permit shall be made within one year after the commission's determination that an application is complete. The commission may extend this time limit for up to three months for just cause or upon agreement of the applicant.

Subd. 10.

Final decision.

(a) No site permit shall be issued in violation of the site selection standards and criteria established in this section and in rules adopted by the commission. When the commission designates a site, it shall issue a site permit to the applicant with any appropriate conditions. The commission shall publish a notice of its decision in the State Register within 30 days of issuance of the site permit.

(b) No route permit shall be issued in violation of the route selection standards and criteria established in this section and in rules adopted by the commission. When the commission designates a route, it shall issue a permit for the construction of a high-voltage transmission line specifying the design, routing, right-of-way preparation, and facility construction it deems necessary, and with any other appropriate conditions. The commission may order the construction of high-voltage transmission line facilities that are capable of expansion in transmission capacity through multiple circuiting or design modifications. The commission shall publish a notice of its decision in the State Register within 30 days of issuance of the permit.

(c) The commission must require as a condition of permit issuance, including issuance of a modified permit for a repowering project, as defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of a site permit to construct a large electric power generating plant, including all of the permit recipient's construction contractors and subcontractors on the project: (1) pay no less than the prevailing wage rate, as defined in section 177.42; and (2) be subject to the requirements and enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.

Subd. 11.

Department of Commerce to provide technical expertise and other assistance.

(a) The commissioner of the Department of Commerce shall consult with other state agencies and provide technical expertise and other assistance to the commission or to individual members of the commission for activities and proceedings under this chapter and chapters 216F and 216G. This assistance shall include the sharing of power plant siting and routing staff and other resources as necessary. The commissioner shall periodically report to the commission concerning the Department of Commerce's costs of providing assistance. The report shall conform to the schedule and include the required contents specified by the commission. The commission shall include the costs of the assistance in assessments for activities and proceedings under those sections and reimburse the special revenue fund for those costs. If either the commissioner or the commission deems it necessary, the department and the commission shall enter into an interagency agreement establishing terms and conditions for the provision of assistance and sharing of resources under this subdivision.

(b) Notwithstanding the requirements of section 216B.33, the commissioner may take any action required or requested by the commission related to the environmental review requirements under chapter 216E or 216F immediately following a hearing and vote by the commission, prior to issuing a written order, finding, authorization, or certificate.

216E.04 ALTERNATIVE REVIEW OF APPLICATIONS.

Subdivision 1.

Alternative review.

An applicant who seeks a site permit or route permit for one of the projects identified in this section shall have the option of following the procedures in this section rather than the procedures in section 216E.03. The applicant shall notify the commission at the time the application is submitted which procedure the applicant chooses to follow.

Subd. 2.

Applicable projects.

The requirements and procedures in this section apply to the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants that are fueled by natural gas;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) high-voltage transmission lines in excess of 200 kilovolts and less than 30 miles in length in Minnesota;

(5) high-voltage transmission lines in excess of 200 kilovolts if at least 80 percent of the distance of the line in Minnesota will be located along existing high-voltage transmission line right-of-way;

(6) a high-voltage transmission line service extension to a single customer between 200 and 300 kilovolts and less than ten miles in length;

(7) a high-voltage transmission line rerouting to serve the demand of a single customer when the rerouted line will be located at least 80 percent on property owned or controlled by the customer or the owner of the transmission line;

(8) large electric power generating plants that are powered by solar energy; and

(9) energy storage systems.

Subd. 3.

Application.

The applicant for a site or route permit for any of the projects listed in subdivision 2 who chooses to follow these procedures shall submit information as the commission may require, but the applicant shall not be required to propose a second site or route for the project. The applicant shall identify in the application any other sites or routes that were rejected by the applicant and the commission may identify additional sites or routes to consider during the processing of the application. The commission shall determine whether an application is complete and advise the applicant of any deficiencies.

Subd. 4.

Notice of application.

Upon submission of an application under this section, the applicant shall provide the same notice as required by section 216E.03, subdivision 4.

Subd. 5.

Environmental review.

For the projects identified in subdivision 2 and following these procedures, the commissioner of the Department of Commerce shall prepare for the commission an environmental assessment. The environmental assessment shall contain information on the human and environmental impacts of the proposed project and other sites or routes identified by the commission and shall address mitigating measures for all of the sites or routes considered. The environmental assessment shall be the only state environmental review document required to be prepared on the project.

Subd. 6.

Public hearing.

The commission shall hold a public hearing in the area where the facility is proposed to be located. The commission shall give notice of the public hearing in the same manner as notice under section 216E.03, subdivision 6. The commission shall conduct the public hearing under procedures established by the commission. The applicant shall be present at the hearing to present evidence and to answer questions. The commission shall provide opportunity at the public hearing for any person to present comments and to ask questions of the applicant and commission staff. The commission shall also afford interested persons an opportunity to submit written comments into the record.

Subd. 7.

Timing.

The commission shall make a final decision on an application within 60 days after completion of the public hearing. A final decision on the request for a site permit or route permit under this section shall be made within six months after the commission's determination that an application is complete. The commission may extend this time limit for up to three months for just cause or upon agreement of the applicant.

Subd. 8.

Considerations.

The considerations in section 216E.03, subdivision 7, shall apply to any projects subject to this section.

Subd. 9.

Final decision.

(a) No site permit shall be issued in violation of the site selection standards and criteria established in this section and in rules adopted by the commission. When the commission designates a site, it shall issue a site permit to the applicant with any appropriate conditions. The commission shall publish a notice of its decision in the State Register within 30 days of issuance of the site permit.

(b) No route designation shall be made in violation of the route selection standards and criteria established in this section and in rules adopted by the commission. When the commission designates a route, it shall issue a permit for the construction of a high-voltage transmission line specifying the design, routing, right-of-way preparation, and facility construction it deems necessary and with any other appropriate conditions. The commission may order the construction of high-voltage transmission line facilities that are capable of expansion in transmission capacity through multiple circuiting or design modifications. The commission shall publish a notice of its decision in the State Register within 30 days of issuance of the permit.

216E.05 LOCAL REVIEW OF APPLICATIONS.

Subdivision 1.

Local review.

(a) Notwithstanding the requirements of sections 216E.03 and 216E.04, an applicant who seeks a site or route permit for one of the projects identified in this section shall have the option of applying to those local units of government that have jurisdiction over the site or route for approval to build the project. If local approval is granted, a site or route permit is not required from the commission. If the applicant files an application with the commission, the applicant shall be deemed to have waived its right to seek local approval of the project.

(b) A local unit of government with jurisdiction over a project identified in this section to whom an applicant has applied for approval to build the project may request the commission to assume jurisdiction and make a decision on a site or route permit under the applicable provisions of this chapter. A local unit of government must file the request with the commission within 60 days after an application for the project has been filed with any one local unit of government. If one of the local units of government with jurisdiction over the project requests the commission to assume jurisdiction, jurisdiction over the project transfers to the commission. If the local units of government maintain jurisdiction over the project, the commission shall select the appropriate local unit of government to be the responsible governmental unit to conduct environmental review of the project.

Subd. 2.

Applicable projects.

Applicants may seek approval from local units of government to construct the following projects:

(1) large electric power generating plants with a capacity of less than 80 megawatts;

(2) large electric power generating plants of any size that burn natural gas and are intended to be a peaking plant;

(3) high-voltage transmission lines of between 100 and 200 kilovolts;

(4) substations with a voltage designed for and capable of operation at a nominal voltage of 100 kilovolts or more;

(5) a high-voltage transmission line service extension to a single customer between 200 and 300 kilovolts and less than ten miles in length;

(6) a high-voltage transmission line rerouting to serve the demand of a single customer when the rerouted line will be located at least 80 percent on property owned or controlled by the customer or the owner of the transmission line; and

(7) energy storage systems.

Subd. 3.

Notice of application.

Within ten days of submission of an application to a local unit of government for approval of an eligible project, the applicant shall notify the commission that the applicant has elected to seek local approval of the proposed project.

216E.08 PUBLIC PARTICIPATION.

Subdivision 1.

Advisory task force.

The commission may appoint one or more advisory task forces to assist it in carrying out its duties. Task forces appointed to evaluate sites or routes considered for designation shall be comprised of as many persons as may be designated by the commission, but at least one representative from each of the following: Regional development commissions, counties and municipal corporations and one town board member from each county in which a site or route is proposed to be located. No officer, agent, or employee of a utility shall serve on an advisory task force. Reimbursement for expenses incurred shall be made pursuant to the rules governing state employees. The task forces expire as provided in section 15.059, subdivision 6. At the time the task force is appointed, the commission shall specify the charge to the task force. The task force shall expire upon completion of its charge, upon designation by the commission of alternative sites or routes to be included in the environmental impact statement, or upon the specific date identified by the commission in the charge, whichever occurs first.

Subd. 4.

Scientific advisory task force.

The commission may appoint one or more advisory task forces composed of technical and scientific experts to conduct research and make recommendations concerning generic issues such as health and safety, underground routes, double circuiting and long-range route and site planning. Reimbursement for expenses incurred shall be made pursuant to the rules governing reimbursement of state employees. The task forces expire as provided in section 15.059, subdivision 6. The time allowed for completion of a specific site or route procedure may not be extended to await the outcome of these generic investigations.

216E.18 BIENNIAL REPORT; APPLICATION FEES; APPROPRIATION; FUNDING.

Subdivision 1.

Biennial report.

Before November 15 of each even-numbered year the commission shall prepare and submit to the legislature a report of its operations, activities, findings, and recommendations concerning this chapter. The report shall also contain information on the commission's biennial expenditures, its proposed budget for the following biennium, and the amounts paid in permit application fees and in assessments pursuant to this section. The proposed budget for the following biennium shall be subject to legislative review.

Subd. 2.

Site application fee.

Every applicant for a site permit shall pay to the commissioner of commerce a fee to cover the necessary and reasonable costs incurred by the commission in acting on the permit application and carrying out the requirements of this chapter. The commission may adopt rules providing for the payment of the fee. Section 16A.1283 does not apply to establishment of this fee. All money received pursuant to this subdivision shall be deposited in a special account. Money in the account is appropriated to the commissioner of commerce to pay expenses incurred in processing applications for site permits in accordance with this chapter and in the event the expenses are less than the fee paid, to refund the excess to the applicant.

216F.01 DEFINITIONS.

Subdivision 1.

Scope.

As used in this chapter, the terms defined in section 216E.01 and this section have the meanings given them, unless otherwise provided or indicated by the context or by this section.

Subd. 2.

Large wind energy conversion system or LWECS.

"Large wind energy conversion system" or "LWECS" means any combination of WECS with a combined nameplate capacity of 5,000 kilowatts or more.

Subd. 3.

Small wind energy conversion system or SWECS.

"Small wind energy conversion system" or "SWECS" means any combination of WECS with a combined nameplate capacity of less than 5,000 kilowatts.

Subd. 4.

Wind energy conversion system or WECS.

"Wind energy conversion system" or "WECS" means any device such as a wind charger, windmill, or wind turbine and associated facilities that converts wind energy to electrical energy.

216F.011 SIZE DETERMINATION.

(a) The total size of a combination of wind energy conversion systems for the purpose of determining what jurisdiction has siting authority under this chapter must be determined according to this section. The nameplate capacity of one wind energy conversion system must be combined with the nameplate capacity of any other wind energy conversion system that:

(1) is located within five miles of the wind energy conversion system;

(2) is constructed within the same 12-month period as the wind energy conversion system; and

(3) exhibits characteristics of being a single development, including, but not limited to, ownership structure, an umbrella sales arrangement, shared interconnection, revenue sharing arrangements, and common debt or equity financing.

(b) The commissioner shall provide forms and assistance for project developers to make a request for a size determination. Upon written request of a project developer, the commissioner of commerce shall provide a written size determination within 30 days of receipt of the request and of any information requested by the commissioner. In the case of a dispute, the chair of the Public Utilities Commission shall make the final size determination.

(c) An application to a county for a permit under this chapter for a wind energy conversion system is not complete without a size determination made under this section.

216F.012 SIZE ELECTION.

(a) A wind energy conversion system of less than 25 megawatts of nameplate capacity as determined under section 216F.011 is a small wind energy conversion system if, by July 1, 2009, the owner so elects in writing and submits a completed application for zoning approval and the written election to the county or counties in which the project is proposed to be located. The owner must notify the Public Utilities Commission of the election at the time the owner submits the election to the county.

(b) Notwithstanding paragraph (a), a wind energy conversion system with a nameplate capacity exceeding five megawatts that is proposed to be located wholly or partially within a wind access buffer adjacent to state lands that are part of the outdoor recreation system, as enumerated in section 86A.05, is a large wind energy conversion system. The Department of Natural Resources shall negotiate in good faith with a system owner regarding siting and may support the system owner in seeking a variance from the system setback requirements if it determines that a variance is in the public interest.

216F.015 REQUIREMENTS CODED ELSEWHERE.

Requirements governing certain towers are established in section 360.915.

216F.02 EXEMPTIONS.

(a) The requirements of chapter 216E do not apply to the siting of LWECS, except for sections 216E.01; 216E.03, subdivision 7; 216E.08; 216E.11; 216E.12; 216E.14; 216E.15; 216E.17; and 216E.18, subdivision 3, which do apply.

(b) Any person may construct an SWECS without complying with chapter 216E or this chapter.

(c) Nothing in this chapter shall preclude a local governmental unit from establishing requirements for the siting and construction of SWECS.

216F.03 SITING OF LWECS.

The legislature declares it to be the policy of the state to site LWECS in an orderly manner compatible with environmental preservation, sustainable development, and the efficient use of resources.

216F.04 SITE PERMIT.

(a) No person may construct an LWECS without a site permit issued by the Public Utilities Commission.

(b) Any person seeking to construct an LWECS shall submit an application to the commission for a site permit in accordance with this chapter and any rules adopted by the commission. The permitted site need not be contiguous land.

(c) The commission shall make a final decision on an application for a site permit for an LWECS within 180 days after acceptance of a complete application by the commission. The commission may extend this deadline for cause.

(d) The commission may place conditions in a permit and may deny, modify, suspend, or revoke a permit.

(e) The commission must require as a condition of permit issuance, including issuance of a modified permit for a repowering project, as defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts, including all of the permit recipient's construction contractors and subcontractors on the project: (1) pay no less than the prevailing wage rate, as defined in section 177.42; and (2) be subject to the requirements and enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.

216F.05 RULES.

The commission shall adopt rules governing the consideration of an application for a site permit for an LWECS that address the following:

(1) criteria that the commission shall use to designate LWECS sites, which must include the impact of LWECS on humans and the environment;

(2) procedures that the commission will follow in acting on an application for an LWECS;

(3) procedures for notification to the public of the application and for the conduct of a public information meeting and a public hearing on the proposed LWECS;

(4) requirements for environmental review of the LWECS;

(5) conditions in the site permit for turbine type and designs; site layout and construction; and operation and maintenance of the LWECS, including the requirement to restore, to the extent possible, the area affected by construction of the LWECS to the natural conditions that existed immediately before construction of the LWECS;

(6) revocation or suspension of a site permit when violations of the permit or other requirements occur; and

(7) payment of fees for the necessary and reasonable costs of the commission in acting on a permit application and carrying out the requirements of this chapter.

216F.06 MODEL ORDINANCE.

The commission may assist local governmental units in adopting ordinances and other requirements to regulate the siting, construction, and operation of SWECS, including the development of a model ordinance.

216F.07 PREEMPTION.

A permit under this chapter is the only site approval required for the location of an LWECS. The site permit supersedes and preempts all zoning, building, or land use rules, regulations, or ordinances adopted by regional, county, local, and special purpose governments.

216F.08 PERMIT AUTHORITY; ASSUMPTION BY COUNTIES.

(a) A county board may, by resolution and upon written notice to the Public Utilities Commission, assume responsibility for processing applications for permits required under this chapter for LWECS with a combined nameplate capacity of less than 25,000 kilowatts. The responsibility for permit application processing, if assumed by a county, may be delegated by the county board to an appropriate county officer or employee. Processing by a county shall be done in accordance with procedures and processes established under chapter 394.

(b) A county board that exercises its option under paragraph (a) may issue, deny, modify, impose conditions upon, or revoke permits pursuant to this section. The action of the county board about a permit application is final, subject to appeal as provided in section 394.27.

(c) The commission shall, by order, establish general permit standards, including appropriate property line set-backs, governing site permits for LWECS under this section. The order must consider existing and historic commission standards for wind permits issued by the commission. The general permit standards shall apply to permits issued by counties and to permits issued by the commission for LWECS with a combined nameplate capacity of less than 25,000 kilowatts. The commission or a county may grant a variance from a general permit standard if the variance is found to be in the public interest.

(d) The commission and the commissioner of commerce shall provide technical assistance to a county with respect to the processing of LWECS site permit applications.

216F.081 APPLICATION OF COUNTY STANDARDS.

A county may adopt by ordinance standards for LWECS that are more stringent than standards in commission rules or in the commission's permit standards. The commission, in considering a permit application for LWECS in a county that has adopted more stringent standards, shall consider and apply those more stringent standards, unless the commission finds good cause not to apply the standards.

Repealed Minnesota Rule: S4942-4

1506.0010 AUTHORITY.

Parts 1506.0010 to 1506.0040 are prescribed under Minnesota Statutes, section 3.7371, by the commissioner of agriculture to implement procedures to compensate agricultural crop owners for crops that are damaged or destroyed by elk. The procedures in parts 1506.0010 to 1506.0040 are in addition to those in Minnesota Statutes, section 3.7371.

1506.0015 DEFINITIONS.

Subpart 1.

Applicability.

The definitions in this part apply to parts 1506.0010 to 1506.0040.

Subp. 2.

Claim form.

"Claim form" means a form provided by the commissioner, to be completed by the crop owner and the county extension agent or federal crop adjuster, containing information upon which payment for a loss must be based.

Subp. 3.

Commissioner.

"Commissioner" means the commissioner of agriculture or the commissioner's authorized agent.

Subp. 4.

Crop owner.

"Crop owner" means an individual, firm, corporation, copartnership, or association with an interest in crops damaged or destroyed by elk.

Subp. 5.

County extension agent.

"County extension agent" means the University of Minnesota Agricultural Extension Service's county extension agent for the county in which the crop owner resides.

Subp. 6.

Federal crop adjuster.

"Federal crop adjuster" means a crop insurance adjuster having a contract with the Federal Crop Insurance Corporation.

Subp. 7.

Market price.

"Market price" means the commodity price published daily by the Minneapolis Grain Exchange in the daily record of prices and receipts.

Subp. 8.

Target price.

"Target price" means the federal commodity price available from the Agricultural Stabilization and Conservation Service office.

1506.0020 REPORTING.

The crop owner shall notify either the federal crop adjuster or the county extension agent of suspected crop loss or damage within 24 hours of the discovery of a loss. The crop owner shall also complete the appropriate part of the claim form which must be available at the county extension office. The crop owner shall provide all information required to investigate the loss or damage to the federal crop adjuster or the county extension agent. A telephone call or personal contact constitutes notification.

1506.0025 INVESTIGATION AND CROP VALUATION.

Subpart 1.

Whether damaged by elk.

The federal crop adjuster or the county extension agent shall investigate the loss in a timely manner and shall make a finding in writing on the appropriate part of the claim form regarding whether the crop was destroyed or damaged by elk. The finding must be based on physical and circumstantial evidence including:

A.

the condition of the crop;

B.

elk tracks;

C.

the area of the state where the loss occurred;

D.

sightings of elk in the area; and

E.

any other circumstances considered pertinent by the federal crop adjuster or the county extension agent.

The absence of affirmative evidence may be grounds for denial of a claim.

Subp. 2.

Extent of damage.

The federal crop adjuster or the county extension agent shall make a written finding on the claim form of the extent of damage or the amount of crop destroyed. The crop owner may choose to have the federal crop adjuster or county extension agent use the method in item A or B to complete the claim form and determine the amount of crop loss.

A.

To submit the claim form at the time the suspected elk damage is discovered, the federal crop adjuster or county extension agent must determine the potential yield, per acre, for the field and record this information on the form in the column labeled "normal yield" and the average yield, per acre, expected from the damaged acres and record this information on the form in the column labeled "average yield expected from damaged acres."

B.

To submit the claim form at the time the crop is harvested:

(1)

the crop owner shall report the loss to the federal crop adjuster or county extension agent within 24 hours of discovery, and the loss must be investigated by the federal crop adjuster or county extension agent in a timely manner;

(2)

the crop owner and federal crop adjuster or county extension agent shall complete the claim form at the time of the investigation, entering the percent of crop loss from damage in the column labeled "normal yield" and leaving the column labeled "average yield expected from damaged acres" blank; and

(3)

when the crop is harvested the federal crop adjuster or county extension agent shall enter the actual yield of the damaged field in the column labeled "average yield expected from damaged acres," enter the date in the same column, and submit the form to the commissioner.

1506.0030 COMPLETION AND SIGNING OF CLAIM FORM.

A completed claim form must be signed by the owner and county extension agent or the federal crop adjuster and submitted by the crop owner to the commissioner for review and payment. The commissioner shall return an incomplete claim form to the crop owner, indicating the information necessary for proper completion.

1506.0035 INSURANCE COVERAGE.

If insurance coverage exists on the crop, the commissioner shall withhold payment under parts 1506.0010 to 1506.0040 until the insurance claim has been paid and evidence of payment has been submitted to the commissioner, at which time that insurance payment must be deducted from the determined value. Payment must not be made for claims of less than $100 per claim or more than $20,000 in a calendar year.

1506.0040 PAYMENT.

After procedures in parts 1506.0020 to 1506.0035 are completed, the commissioner shall make payment to the crop owners.

7850.1000 DEFINITIONS.

Subpart 1.

Scope.

As used in parts 7850.1000 to 7850.5600, the following terms have the meanings given them.

Subp. 2.

Act.

"Act" means the Power Plant Siting Act of 1973, as amended, Minnesota Statutes, chapter 216E.

Subp. 3.

Associated facilities.

"Associated facilities" means buildings, equipment, and other physical structures that are necessary to the operation of a large electric power generating plant or a high voltage transmission line.

Subp. 4.

Commission.

"Commission" means the Public Utilities Commission.

Subp. 5.

Certified HVTL list.

"Certified HVTL list" means the transmission projects certified by the Public Utilities Commission as priority projects under Minnesota Statutes, section 216B.2425.

Subp. 6.

Developed portion of the plant site.

"Developed portion of the plant site" means the portion of the LEPGP site that is required for the physical plant and associated facilities.

Subp. 7.

Environmental assessment.

"Environmental assessment" means a written document that describes the human and environmental impacts of a proposed large electric power generating plant or high voltage transmission line and alternative routes or sites and methods to mitigate such impacts.

Subp. 8.

Environmental impact statement or EIS.

"Environmental impact statement" or "EIS" means a detailed written statement that describes proposed high voltage transmission lines and large electric power generating plants and satisfies the requirements of Minnesota Statutes, section 116D.04.

Subp. 9.

High voltage transmission line or HVTL.

"High voltage transmission line" or "HVTL" means a conductor of electric energy and associated facilities designed for and capable of operating at a nominal voltage of 100 kilovolts or more either immediately or without significant modification. Associated facilities shall include, but not be limited to, insulators, towers, substations, and terminals.

Subp. 10.

Large electric power facilities.

"Large electric power facilities" means high voltage transmission lines and large electric power generating plants.

Subp. 11.

Large electric power generating plant or LEPGP.

"Large electric power generating plant" or "LEPGP" means electric power generating equipment and associated facilities designed for or capable of operation at a capacity of 50,000 kilowatts or more. Associated facilities include, but are not limited to, coal piles, cooling towers, ash containment, fuel tanks, water and wastewater treatment systems, and roads.

Subp. 12.

Mail.

"Mail" means either the United States mail or electronic mail by email, unless another law requires a specific form of mailing.

Subp. 13.

Person.

"Person" means any individual, partnership, joint venture, private or public corporation, association, firm, public service company, cooperative, political subdivision, municipal corporation, government agency, public utility district, or any other entity, public or private, however organized.

Subp. 14.

PUC.

"PUC" means the entire Public Utilities Commission, including the commission and staff.

Subp. 15.

Right-of-way.

"Right-of-way" means the land interest required within a route for the construction, maintenance, and operation of a high voltage transmission line.

Subp. 16.

Route.

"Route" means the location of a high voltage transmission line between two end points. A route may have a variable width of up to 1.25 miles within which a right-of-way for a high voltage transmission line can be located.

Subp. 17.

Route segment.

"Route segment" means a portion of a route.

Subp. 18.

Site.

"Site" means an area of land required for the construction, maintenance, and operation of a large electric power generating plant.

Subp. 19.

Utility.

"Utility" means any entity engaged or intending to engage in this state in the generation, transmission, or distribution of electric energy including, but not limited to, a private investor owned utility, a cooperatively owned utility, a public or municipally owned utility, a limited liability company, or a private corporation.

7850.1100 PURPOSE AND AUTHORITY.

Parts 7850.1000 to 7850.5600 are prescribed by the Minnesota Public Utilities Commission pursuant to the authority granted to the commission in the Power Plant Siting Act, as amended, Minnesota Statutes, chapter 216E, to give effect to the purposes of the act.

It is the purpose of the act and the policy of the state to locate large electric power generating plants and high voltage transmission lines in an orderly manner compatible with environmental preservation and the efficient use of resources. In accordance with this policy, the commission shall choose locations that minimize adverse human and environmental impact while ensuring continuing electric power system reliability and integrity and ensuring that electric energy needs are met and fulfilled in an orderly and timely fashion. The commission shall provide for broad spectrum citizen participation as a principle of operation. To ensure effective citizen participation, the commission shall maintain a public education program on, but not limited to, the considerations identified in Minnesota Statutes, section 216E.03, subdivision 7.

7850.1200 APPLICABILITY.

Parts 7850.1000 to 7850.5600 establish the requirements for the processing of permit applications by the Public Utilities Commission for large electric power generating plants and high voltage transmission lines. Requirements for environmental review of such projects before the commission are established in the applicable requirements of chapter 4410 and parts 7849.1000 to 7849.2100.

7850.1300 PERMIT REQUIREMENT.

Subpart 1.

Site permit.

No person may construct a large electric power generating plant without a site permit from the commission. A large electric power generating plant may be constructed only on a site approved by the commission.

Subp. 2.

Route permit.

No person may construct a high voltage transmission line without a route permit from the commission. A high voltage transmission line may be constructed only within a route approved by the commission.

Subp. 3.

Expansion of existing facility.

A.

No person shall increase the voltage of a high voltage transmission line without a route permit or other approval from the PUC.

B.

No person shall increase the voltage of a transmission line under 100 kilovolts to over 100 kilovolts without a route permit from the PUC.

C.

Except as provided in part 7850.1500 or 7850.4800, no person shall increase the generating capacity or output of an existing large electric power generating plant without a permit from the commission.

D.

No person shall increase the generating capacity or output of an electric power plant from under 50 megawatts to more than 50 megawatts without a site permit from the PUC.

Subp. 4.

Local authority.

A site permit from the commission is not required for a large electric power generating plant that is permitted by local units of government under Minnesota Statutes, section 216E.05. A route permit from the commission is not required for a high voltage transmission line that is permitted by local governmental authorities under Minnesota Statutes, section 216E.05.

Subp. 5.

Commence construction.

No person may commence construction of a large electric power generating plant or a high voltage transmission line until a permit has been issued by the commission or by the appropriate local units of government if local review is sought. "Commence construction" means to begin or cause to begin as part of a continuous program the placement, assembly, or installation of facilities or equipment, or to conduct significant physical site preparation or right-of-way preparation work for installation of facilities or equipment. Conducting survey work or collecting geological data or contacting landowners to discuss possible construction of a power plant or transmission line is not commencement of construction.

7850.1400 SMALL PROJECTS.

Subpart 1.

No PUC permit required.

A permit from the PUC is not required to construct a power plant of less than 50 megawatts or a transmission line of less than 100 kilovolts. Proposers of such projects must obtain whatever approvals may be required by local, state, or federal units of government with jurisdiction over the project.

Subp. 2.

Environmental review.

Proposers of power plants of less than 50 megawatts or transmission lines of less than 100 kilovolts must comply with the environmental review requirements of chapter 4410, parts 7849.1000 to 7849.2100, and Minnesota Statutes, chapter 116D.

7850.1500 EXCEPTIONS TO PERMITTING REQUIREMENT FOR CERTAIN EXISTING FACILITIES.

Subpart 1.

No permit required.

The following projects are not considered construction of a large electric power generating plant or high voltage transmission line and may be constructed without a permit from the commission:

A.

equipment additions at an existing substation that do not require expansion of the land needed for the substation and do not involve an increase in the voltage or changes in the location of existing transmission lines, except that up to the first five transmission line structures outside the substation may be moved to accommodate the equipment additions provided the structures are not moved more than 500 feet from the existing right-of-way;

B.

high voltage transmission lines:

(1)

maintenance or repair of a high voltage transmission line within an existing right-of-way;

(2)

reconductoring or reconstruction of a high voltage transmission line with no change in voltage and no change in right-of-way, provided that any new structures that are installed are not designed for and capable of operation at higher voltage; or

(3)

relocation of a high voltage transmission line that is required by a local or state agency as part of road, street, or highway construction; or

C.

large electric power generating plants:

(1)

maintenance or repair of a large electric power generating plant;

(2)

modification of a large electric power generating plant to increase efficiency as long as the capacity of the plant is not increased more than ten percent or more than 100 megawatts, whichever is greater, and the modification does not require expansion of the plant beyond the developed portion of the plant site. If a subsequent modification results in a total of more than 100 megawatts of additional capacity, this provision does not apply. An increase in efficiency is a reduction in the amount of Btu's (British Thermal Units) required to produce a kilowatt hour of electricity at the facility;

(3)

refurbishment of a large electric power generating plant that does not expand the capacity of the plant or expand the plant beyond the developed portion of the plant site and the refurbishment does not require a certificate of need from the public utilities commission;

(4)

conversion of the fuel source of a large electric power generating plant to natural gas, as long as the plant is not expanded beyond the developed portion of the plant site; or

(5)

start-up of an existing large electric power generating plant that has been closed for any period of time at no more than its previous capacity rating and in a manner that does not involve a change in the fuel or an expansion of the developed portion of the plant site.

Subp. 2.

Minor alteration.

In the event a modification or other change in an existing substation, high voltage transmission line, or large electric power generating plant does not qualify for an exception under this part, the modification or change may qualify for a minor alteration under part 7850.4800.

Subp. 3.

Notice.

Any person proposing to move transmission line structures under subpart 1, item A, or to reconductor or reconstruct a high voltage transmission line under subpart 1, item B, subitem (2), or to implement changes to a large electric power generating plant under subpart 1, item C, subitem (2), (3), (4), or (5), must notify the commission in writing at least 30 days before commencing construction on the modification or change.

7850.1600 JOINT PROCEEDING.

The proposer of a large electric power generating plant that will also require a high voltage transmission line may elect to apply for both a site permit for the large electric power generating plant and a route permit for the high voltage transmission line in one application and in one process. The PUC on its own volition may elect to combine two pending applications if it is appropriate to consider both projects as part of one proceeding. An applicant may also combine an application for a pipeline routing permit if a natural gas or petroleum pipeline to a new large electric power generating facility will be required.

7850.1700 PERMIT APPLICATION UNDER FULL PERMITTING PROCESS.

Subpart 1.

Filing of application for permit.

A person seeking a site permit or route permit for a large electric power generating facility must file three copies of the application for the permit with the PUC. Upon acceptance of the application, the commission will advise the applicant of how many copies of the application must be submitted to the PUC.

Subp. 2.

Electronic copy.

A person filing an application for a site permit or route permit shall provide the PUC with an electronic version of the application suitable for posting on the PUC's web page.

7850.1800 PERMIT FEES.

Subpart 1.

Requirement.

An applicant for a site permit or route permit shall pay a fee in accordance with Minnesota Statutes, section 216E.18. The estimated fee for processing the permit application must be determined in accordance with Minnesota Statutes, section 216E.18.

Subp. 2.

Initial payment.

The applicant shall submit with the application 25 percent of the total estimated fee, or up to 50 percent of the total estimated fee if the commission determines that the additional percentage is reasonably necessary to complete the site evaluation and design process. The commission shall not process a permit application until the first portion of the fee is submitted. The PUC shall deposit all money received from the applicant for permit fees in a special account.

Subp. 3.

Additional payments.

The applicant shall pay an additional 25 percent of the fee within 90 days after the application has been accepted by the commission. Additional payments must be made within 30 days of notification by the commission that additional fees are necessary for completion of the permitting process. The commission shall not make a final decision on a permit application if any assessed fees have not been paid.

Subp. 4.

Final accounting.

At the end of the permitting process, including any judicial review of the commission's final decision, the PUC shall provide a final accounting to the applicant of the total cost of processing the permit application. The applicant may review all actual costs associated with processing an application and present objections to the commission. The application fees paid by the applicant shall include the necessary and reasonable expenses incurred in processing the application, including, but not limited to, staff time, expenses for public notice and meetings and hearings, environmental review, administrative overhead, and legal expenses. The applicant shall make the final payment within 30 days of notification or the PUC shall refund any excess payments with 30 days of the final accounting.

7850.1900 APPLICATION CONTENTS.

Subpart 1.

Site permit for LEPGP.

An application for a site permit for a large electric power generating plant must contain the following information:

A.

a statement of proposed ownership of the facility as of the day of filing and after commercial operation;

B.

the precise name of any person or organization to be initially named as permittee or permittees and the name of any other person to whom the permit may be transferred if transfer of the permit is contemplated;

C.

at least two proposed sites for the proposed large electric power generating plant and identification of the applicant's preferred site and the reasons for preferring the site;

D.

a description of the proposed large electric power generating plant and all associated facilities, including the size and type of the facility;

E.

the environmental information required under subpart 3;

F.

the names of the owners of the property for each proposed site;

G.

the engineering and operational design for the large electric power generating plant at each of the proposed sites;

H.

a cost analysis of the large electric power generating plant at each proposed site, including the costs of constructing and operating the facility that are dependent on design and site;

I.

an engineering analysis of each of the proposed sites, including how each site could accommodate expansion of generating capacity in the future;

J.

identification of transportation, pipeline, and electrical transmission systems that will be required to construct, maintain, and operate the facility;

K.

a listing and brief description of federal, state, and local permits that may be required for the project at each proposed site; and

L.

a copy of the Certificate of Need for the project from the Public Utilities Commission or documentation that an application for a Certificate of Need has been submitted or is not required.

Subp. 2.

Route permit for HVTL.

An application for a route permit for a high voltage transmission line shall contain the following information:

A.

a statement of proposed ownership of the facility at the time of filing the application and after commercial operation;

B.

the precise name of any person or organization to be initially named as permittee or permittees and the name of any other person to whom the permit may be transferred if transfer of the permit is contemplated;

C.

at least two proposed routes for the proposed high voltage transmission line and identification of the applicant's preferred route and the reasons for the preference;

D.

a description of the proposed high voltage transmission line and all associated facilities including the size and type of the high voltage transmission line;

E.

the environmental information required under subpart 3;

F.

identification of land uses and environmental conditions along the proposed routes;

G.

the names of each owner whose property is within any of the proposed routes for the high voltage transmission line;

H.

United States Geological Survey topographical maps or other maps acceptable to the commission showing the entire length of the high voltage transmission line on all proposed routes;

I.

identification of existing utility and public rights-of-way along or parallel to the proposed routes that have the potential to share the right-of-way with the proposed line;

J.

the engineering and operational design concepts for the proposed high voltage transmission line, including information on the electric and magnetic fields of the transmission line;

K.

cost analysis of each route, including the costs of constructing, operating, and maintaining the high voltage transmission line that are dependent on design and route;

L.

a description of possible design options to accommodate expansion of the high voltage transmission line in the future;

M.

the procedures and practices proposed for the acquisition and restoration of the right-of-way, construction, and maintenance of the high voltage transmission line;

N.

a listing and brief description of federal, state, and local permits that may be required for the proposed high voltage transmission line; and

O.

a copy of the Certificate of Need or the certified HVTL list containing the proposed high voltage transmission line or documentation that an application for a Certificate of Need has been submitted or is not required.

Subp. 3.

Environmental information.

An applicant for a site permit or a route permit shall include in the application the following environmental information for each proposed site or route to aid in the preparation of an environmental impact statement:

A.

a description of the environmental setting for each site or route;

B.

a description of the effects of construction and operation of the facility on human settlement, including, but not limited to, public health and safety, displacement, noise, aesthetics, socioeconomic impacts, cultural values, recreation, and public services;

C.

a description of the effects of the facility on land-based economies, including, but not limited to, agriculture, forestry, tourism, and mining;

D.

a description of the effects of the facility on archaeological and historic resources;

E.

a description of the effects of the facility on the natural environment, including effects on air and water quality resources and flora and fauna;

F.

a description of the effects of the facility on rare and unique natural resources;

G.

identification of human and natural environmental effects that cannot be avoided if the facility is approved at a specific site or route; and

H.

a description of measures that might be implemented to mitigate the potential human and environmental impacts identified in items A to G and the estimated costs of such mitigative measures.

7850.2000 APPLICATION REVIEW.

Subpart 1.

Review by commission.

Within ten working days of receipt of an application for a site permit or a route permit, the commission shall determine whether the application is complete and notify the applicant in writing of the acceptance or rejection of the application. If the commission rejects an application, the commission shall advise the applicant of the deficiencies in the application.

Subp. 2.

Resubmission of rejected application.

If the commission should reject an application, an applicant may decide to address the deficiencies identified by the commission and resubmit the application with additional information. In this event, the commission shall again review the application within ten days and determine whether the application is complete and advise the applicant of the commission's determination.

Subp. 3.

Reasons for rejection.

The commission shall not reject an application if the information that is missing can be obtained from the applicant within 60 days from the date of the application and the lack of the information will not interfere with the public's ability to review the proposed project.

Subp. 4.

Schedule.

The date of the commission's determination that an application is complete marks the start of the schedule for the commission to make a final decision on a permit application.

7850.2100 PROJECT NOTICE.

Subpart 1.

Notification lists.

The PUC shall maintain the notification lists described in items A and B.

A.

The PUC shall maintain a list of persons who want to be notified of the acceptance of applications for site permits or route permits. Any person may request to have that person's name or an organization's name included on the list. The PUC may from time to time request that persons whose names are on the list advise the PUC whether they want to remain on the list, and the PUC may delete any names for which an affirmative response is not received within a reasonable time. A person whose name has been removed may request to have the name added back on the list. The PUC shall provide an applicant with the general list upon acceptance of an application.

B.

The PUC shall maintain a project contact list for each project for which an application for a permit has been accepted. The project contact list must contain the names of persons who want to receive notices regarding the project. Any person may request to have that person's name or an organization's name included on a project contact list. The PUC may add a person's name to the list if the PUC believes the person would like to receive notices about the particular project. The PUC shall provide an applicant with the project contact list upon request.

Subp. 2.

Notification to persons on general list, to local officials, and to property owners.

Within 15 days after submission of an application, the applicant shall mail written notice of the submission to the following people:

A.

those persons whose names are on the general list maintained by the PUC for this purpose;

B.

each regional development commission, county, incorporated municipality, and township in which any part of the site or route or any alternative is proposed to be located; and

C.

each owner whose property is adjacent to any of the proposed sites for a large electric power generating plant or within any of the proposed routes for a high voltage transmission line. For purposes of giving notice under this item, owners are those persons shown on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer, or any other list of owners approved by the commission.

Subp. 3.

Content of notice.

The notice mailed under subpart 2 shall contain the following information:

A.

a description of the proposed project, including a map showing the general area of the proposed site or proposed route and each alternative;

B.

a statement that a permit application has been submitted to the PUC, the name of the permit applicant, and information regarding how a copy of the application may be obtained;

C.

a statement that the permit application will be considered by the PUC under the provisions of parts 7850.1000 to 7850.5600 and the Power Plant Siting Act and describing the time periods for the PUC to act;

D.

a statement that the PUC will hold a public meeting within 60 days and the date of the meeting if it is known at the time of the mailing;

E.

the manner in which the PUC will conduct environmental review of the proposed project, including the holding of a scoping meeting at which additional alternatives to the project may be proposed;

F.

the name of the PUC staff member who has been appointed by the commission to serve as the public advisor, if known, or otherwise, a general contact at the PUC;

G.

the manner in which persons may register their names with the PUC on the project contact list;

H.

a statement that a public hearing will be conducted after the EIS is prepared;

I.

a statement indicating whether a certificate of need or other authorization from the Public Utilities Commission is required for the project and the status of the matter if such authorization is required;

J.

a statement indicating whether the applicant may exercise the power of eminent domain to acquire the land necessary for the project and the basis for such authority; and

K.

any other information requested by the commission to be included in the notice.

Subp. 4.

Publication of notice.

Within 15 days after submission of an application, the applicant shall publish notice in a legal newspaper of general circulation in each county in which a site, route, or any alternative is proposed to be located that an application has been submitted and a description of the proposed project. The notice must also state where a copy of the application may be reviewed.

Subp. 5.

Confirmation of notice.

Within 30 days after providing the requisite notice, the applicant shall submit to the PUC documentation that all notices required under this part have been given. The applicant shall document the giving of the notice by providing the PUC with affidavits of publication or mailing and copies of the notice provided.

Subp. 6.

Failure to give notice.

The failure of the applicant to give the requisite notice does not invalidate any ongoing permit proceedings provided the applicant has made a bona fide attempt to comply, although the commission may extend the time for the public to participate if the failure has interfered with the public's right to be informed about the project.

7850.2200 PUBLIC ADVISOR.

Upon acceptance of an application for a site or route permit, the commission shall designate a staff person to act as the public advisor on the project. The public advisor must be available to answer questions from the public about the permitting process. The public advisor shall not give legal advice or other advice that may affect the legal rights of the person being advised, and the public advisor shall not act as an advocate on behalf of any person.

7850.2300 PUBLIC MEETING.

Subpart 1.

Scheduling public meeting.

Upon acceptance of an application for a site or route permit, the commission shall schedule a public meeting to provide information to the public about the proposed project and to answer questions and to scope the environmental impact statement. The public meeting must be held no later than 60 days after acceptance of the application. The public meeting must be held in a location that is convenient for persons who live near the proposed project.

Subp. 2.

Notice of public meeting.

The PUC shall give at least ten days' notice of the public meeting by mailing notice to persons whose names are on the project contact list maintained pursuant to part 7850.2100, subpart 1. The PUC shall also publish notice of the public meeting in a legal newspaper of general circulation in the area where the project is proposed to be located. If appropriate, the PUC may request the applicant to include notice of the public meeting in the notice to be provided by the applicant pursuant to part 7850.2100.

Subp. 3.

Conduct of public meeting.

The commission shall appoint a person, who may be a PUC staff person, to conduct the public meeting. The public meeting must be conducted in an informal manner designed to encourage public participation. The public must be afforded an opportunity to present comments and ask questions. The PUC shall make available at the public meeting a copy of the application and other pertinent documents in the PUC files regarding the application. The staff shall explain the permitting process to the persons in attendance. A transcript of the meeting need not be maintained, although the PUC may elect to keep an audio recording of the meeting.

Subp. 4.

Applicant role.

The applicant shall provide representatives at the public meeting who are capable of answering general questions about the proposed project.

Subp. 5.

EIS scoping.

At the public meeting, the public must be provided an opportunity to comment on the scope of the environmental impact statement in accordance with part 7850.2500.

7850.2400 CITIZEN ADVISORY TASK FORCE.

Subpart 1.

Authority.

The commission has the authority to appoint a citizen advisory task force. The commission shall determine whether to appoint such a task force as early in the process as possible. The commission shall establish the size of the task force and appoint its members in accordance with Minnesota Statutes, section 216E.08. The commission shall advise of the appointment of the task force at the next monthly commission meeting.

Subp. 2.

Commission decision.

If the commission decides not to appoint a citizen advisory task force and a person would like such a task force appointed, the person may request that the commission create a citizen advisory task force and appoint its members. Upon receipt of such a request, the commission shall place the matter on the agenda for the next regular monthly commission meeting.

Subp. 3.

Task force responsibilities.

Upon appointment of a citizen advisory task force, the commission shall specify in writing the charge to the task force. The charge shall include the identification of additional sites or routes or particular impacts to be evaluated in the environmental impact statement. The commission may establish additional charges, including a request that the task force express a preference for a specific site or route if it has one.

Subp. 4.

Termination of task force.

The task force expires upon completion of its charge, designation by the commission of alternative sites or routes to be included in the environmental impact statement, or the specific date identified by the commission in the charge, whichever occurs first.

7850.2500 EIS PREPARATION.

Subpart 1.

EIS required.

The commissioner of the Department of Commerce shall prepare an environmental impact statement on each proposed large electric power generating plant and high voltage transmission line for which a permit application has been accepted by the commissioner.

Subp. 2.

Scoping process.

The commissioner of the Department of Commerce shall provide the public with an opportunity to participate in the development of the scope of the environmental impact statement by holding a public meeting and by soliciting public comments. The public meeting required under part 7850.2300 satisfies the requirement to hold a scoping meeting. The commissioner shall provide a period of at least seven days from the day of the public meeting for the public to submit comments on the scope of the EIS. The commissioner shall determine the scope of the environmental impact statement as soon after holding the public meeting as possible. Within five days after the decision, the commissioner shall mail notice of the scoping decision to those persons whose names are on either the general list or the project contact list. Once the commissioner has determined the scope of the environmental impact statement, the scope must not be changed except upon decision by the commissioner that substantial changes have been made in the project or substantial new information has arisen significantly affecting the potential environmental effects of the project or the availability of reasonable alternatives.

Subp. 3.

Alternative sites or routes.

During the scoping process, a person may suggest alternative sites or routes to evaluate in the environmental impact statement. A person desiring that a particular site or route be evaluated shall submit to the commissioner of the Department of Commerce, during the scoping process, an explanation of why the site or route should be included in the environmental impact statement and any other supporting information the person wants the commissioner to consider. The commissioner shall provide the applicant with an opportunity to respond to each request that an alternative be included in the environmental impact statement. The commissioner shall include the suggested site or route in the scope of the environmental impact statement only if the commissioner determines that evaluation of the proposed site or route will assist in the commissioner's decision on the permit application.

Subp. 4.

Scope of EIS.

The scoping process must be used to reduce the scope and bulk of an environmental impact statement by identifying the potentially significant issues and alternatives requiring analysis and establishing the detail into which the issues will be analyzed. The scoping decision by the commissioner of the Department of Commerce shall at least address the following:

A.

the issues to be addressed in the environmental impact statement;

B.

the alternative sites and routes to be addressed in the environmental impact statement; and

C.

the schedule for completion of the environmental impact statement.

Subp. 5.

Matters excluded.

When the Public Utilities Commission has issued a Certificate of Need for a large electric power generating plant or high voltage transmission line or placed a high voltage transmission line on the certified HVTL list maintained by the commission, the environmental impact statement shall not address questions of need, including size, type, and timing; questions of alternative system configurations; or questions of voltage.

Subp. 6.

Draft EIS.

The draft environmental impact statement must be written in plain and objective language. The draft environmental impact statement shall follow the standard format for an environmental impact statement prescribed in part 4410.2300 to the extent the requirements of that rule are appropriate.

Subp. 7.

Public review.

Upon completion of the draft environmental impact statement, the commissioner of the Department of Commerce shall make the document available for public review by placing a copy of the document in a public library or other governmental office in each county where the proposed project may be located. The commissioner shall send notice of the availability of the draft environmental impact statement to each person on the project contact list maintained under part 7850.2100, subpart 1. The commissioner shall also place a notice in the EQB Monitor of the availability of the draft environmental impact statement. The commissioner shall post the environmental impact statement on the agency's web page if possible.

Subp. 8.

Informational meeting.

The commissioner of the Department of Commerce shall schedule an informational meeting to provide an opportunity for the public to comment on the draft environmental impact statement. The meeting must not be held sooner than 20 days after the draft environmental impact statement becomes available. The meeting must be held in a location convenient to persons who live near the proposed project. The commissioner shall send notice of the informational meeting to each person on the project contact list maintained under part 7850.2100, subpart 1. The commissioner shall also place notice in the EQB Monitor. The informational meeting may be held just prior to the holding of a contested case hearing on the permit application. The commissioner shall hold the record on the environmental impact statement open for receipt of written comments for not less than ten days after the close of the informational meeting.

Subp. 9.

Final EIS.

The commissioner of the Department of Commerce shall respond to the timely substantive comments received on the draft environmental impact statement consistent with the scoping decision and prepare the final environmental impact statement. The commissioner may attach to the draft environmental impact statement the comments received and its response to comments without preparing a separate document. The commissioner shall publish notice of the availability of the final environmental impact statement in the EQB Monitor and shall supply a press release to at least one newspaper of general circulation in the areas where the proposed sites or routes are located.

Subp. 10.

Adequacy determination.

The Public Utilities Commission shall determine the adequacy of the final environmental impact statement. The commission shall not decide the adequacy for at least ten days after the availability of the final environmental impact statement is announced in the EQB Monitor. The final environmental impact statement is adequate if it:

A.

addresses the issues and alternatives raised in scoping to a reasonable extent considering the availability of information and the time limitations for considering the permit application;

B.

provides responses to the timely substantive comments received during the draft environmental impact statement review process; and

C.

was prepared in compliance with the procedures in parts 7850.1000 to 7850.5600.

If the commission finds that the environmental impact statement is not adequate, the commission shall direct the staff to respond to the deficiencies and resubmit the revised environmental impact statement to the commission as soon as possible.

Subp. 11.

Cost.

The applicant for a site permit or route permit shall pay the reasonable costs of preparing and distributing an environmental impact statement. The costs must not be assessed separately from the assessment under part 7850.1800 unless that assessment is inadequate to cover the commissioner's reasonable costs of considering the permit application.

Subp. 12.

Environmental review requirements.

The requirements of chapter 4410 and parts 7849.1000 to 7849.2100 do not apply to the preparation or consideration of an environmental impact statement for a large electric power generating plant or high voltage transmission line except as provided in parts 7850.1000 to 7850.5600.

7850.2600 CONTESTED CASE HEARING.

Subpart 1.

Hearing.

The PUC shall hold a contested case hearing after the draft environmental impact statement is prepared on all applications for a site permit or a route permit. The hearing must be conducted by an administrative law judge from the Office of Administrative Hearings pursuant to the contested case procedures of Minnesota Statutes, chapter 14. Notice of the hearing must be given in accordance with Minnesota Statutes, section 216E.03, subdivision 6. At least a portion of the hearing must be held in a county where the proposed large electric power generating plant or high voltage transmission line would be located.

Subp. 2.

Issues.

Once the commission has determined questions of need, including size, type, and timing; questions of system configuration; and questions of voltage, those issues must not be addressed in the contested case hearing.

Subp. 3.

Hearing.

If the commission determines that a hearing to consider both permitting and need issues is feasible, more efficient, and may further the public interest, the commission may decide to hold a hearing. The commission may also elect to hold a joint hearing with other states pursuant to Minnesota Statutes, section 216E.02, subdivision 3.

7850.2700 FINAL DECISION.

Subpart 1.

Timing.

The commission shall make a final decision on a site permit or a route permit application within 60 days after receipt of the report of the administrative law judge. A final decision must be made within one year after the commission's determination that an application is complete. The commission may extend this time limit for up to three months for just cause or upon agreement of the applicant.

Subp. 2.

EIS adequacy.

The commission shall not make a final decision on a permit until the commission has found the environmental impact statement to be adequate.

Subp. 3.

Certificate of need decision.

The PUC shall not make a final decision on a permit for a project that requires a Certificate of Need from the Public Utilities Commission until the applicant has obtained the necessary approval.

Subp. 4.

Notice.

The PUC shall publish notice of its final permit decision in the State Register within 30 days of the date the commission makes the decision. The PUC shall also publish notice in the EQB Monitor. The PUC shall mail notice of its final permit decision to those persons whose names are on the project contact list. The PUC shall post notice of the final decision on the agency's web page, if possible.

7850.2800 ELIGIBLE PROJECTS.

Subpart 1.

Eligible projects.

An applicant for a site permit or a route permit for one of the following projects may elect to follow the procedures of parts 7850.2800 to 7850.3900 instead of the full permitting procedures in parts 7850.1700 to 7850.2700:

A.

large electric power generating plants with a capacity of less than 80 megawatts;

B.

large electric power generating plants that are fueled by natural gas;

C.

high voltage transmission lines of between 100 and 200 kilovolts;

D.

high voltage transmission lines in excess of 200 kilovolts and less than five miles in length in Minnesota;

E.

high voltage transmission lines in excess of 200 kilovolts if at least 80 percent of the distance of the line in Minnesota will be located along existing high voltage transmission line rights-of-way;

F.

a high voltage transmission line service extension to a single customer between 200 and 300 kilovolts and less than ten miles in length; and

G.

a high voltage transmission line rerouting to serve the demand of a single customer when the rerouted line will be located at least 80 percent on property owned or controlled by the customer or the owner of the transmission line.

Subp. 2.

Notice to PUC.

An applicant for a permit for one of the qualifying projects in subpart 1, who intends to follow the procedures of parts 7850.2800 to 7850.3700, shall notify the PUC of such intent, in writing, at least ten days before submitting an application for the project.

7850.2900 PERMIT APPLICATION UNDER ALTERNATIVE PROCESS.

Part 7850.1700, regarding submission of a permit application, applies to projects being considered under the alternative permitting process.

7850.3000 PERMIT FEES.

Part 7850.1800, regarding permit fees, applies to projects being considered under the alternative permitting process.

7850.3100 CONTENTS OF APPLICATION.

The applicant shall include in the application the same information required in part 7850.1900, except the applicant need not propose any alternative sites or routes to the preferred site or route. If the applicant has rejected alternative sites or routes, the applicant shall include in the application the identity of the rejected sites or routes and an explanation of the reasons for rejecting them.

7850.3200 APPLICATION REVIEW.

Part 7850.2000 regarding the commission's review of the application, applies to projects being considered under the alternative permitting process.

7850.3300 PROJECT NOTICE.

Part 7850.2100, regarding obligations to give notice of the project, applies to projects being considered under the alternative permitting process.

7850.3400 PUBLIC ADVISOR.

Part 7850.2200, regarding appointment of a public advisor, applies to projects being considered under the alternative permitting process.

7850.3500 PUBLIC MEETING.

Subpart 1.

Public meeting.

Part 7850.2300, subparts 1 to 4, apply to projects being considered under the alternative permitting process.

Subp. 2.

Environmental assessment.

At the public meeting, the public shall be provided an opportunity to comment on the scope of the environmental assessment in accordance with part 7850.3700.

7850.3600 CITIZEN ADVISORY TASK FORCE.

Part 7850.2400, regarding the appointment of a citizen advisory task force, applies to projects being considered under the alternative permitting process.

7850.3700 ENVIRONMENTAL ASSESSMENT PREPARATION.

Subpart 1.

Environmental assessment required.

The commissioner of the Department of Commerce shall prepare an environmental assessment on each proposed large electric power generating plant and each proposed high voltage transmission line being reviewed under the alternative permitting process in parts 7850.2800 to 7850.3900. The environmental assessment must contain information on the human and environmental impacts of the proposed project and of alternative sites or routes identified by the commissioner and shall address mitigating measures for all sites or routes considered.

Subp. 2.

Scoping process.

A.

The commissioner of the Department of Commerce shall provide the public with an opportunity to participate in the development of the scope of the environmental assessment by holding a public meeting and by soliciting public comments. The public meeting required under part 7850.3500 satisfies the requirement to hold a scoping meeting. The commissioner shall mail notice of the meeting to those persons on either the general list or the project contact list at least ten days before the meeting. The commissioner shall provide at least seven days from the day of the public meeting for the public to submit comments regarding the scope of the environmental assessment.

B.

The commissioner shall include in the scope of the environmental assessment any alternative sites or routes proposed by the citizen advisory task force or by any member agency of the Environmental Quality Board prior to the close of the scoping period. During the scoping process, any person may suggest an alternative site or route to evaluate in the environmental assessment. A person desiring that a particular site or route be evaluated shall submit to the commissioner, during the scoping process, an explanation of why the site or route should be included in the environmental assessment and all supporting information the person wants the commissioner to consider. The commissioner shall provide the applicant with an opportunity to respond to each request that an alternative be included in the environmental assessment. The commissioner shall include the suggested site or route in the scope of the environmental assessment only if the commissioner determines that evaluation of the proposed site or route will assist in the commissioner's ultimate decision on the permit application. Any person may also suggest specific human or environmental impacts that should be included in the environmental assessment.

Subp. 3.

Scoping decision.

The commissioner of the Department of Commerce shall determine the scope of the environmental assessment within ten days after close of the public comment period and shall mail notice of the scoping decision to those persons on the project contact list within five days after the decision. Once the commissioner has determined the scope of the environmental assessment, the scope shall not be changed except upon a decision by the commissioner that substantial changes have been made in the project or substantial new information has arisen significantly affecting the potential environmental effects of the project or the availability of reasonable alternatives. The commissioner shall also determine as part of the scoping process a reasonable schedule for completion of the environmental assessment. The scoping decision by the commissioner must identify:

A.

the alternative sites or routes, if any, to be addressed in the environmental assessment;

B.

any specific potential impacts to be addressed;

C.

the schedule for completion of the environmental assessment; and

D.

other matters to be included in the environmental assessment.

Subp. 4.

Content of environmental assessment.

The environmental assessment must include:

A.

a general description of the proposed facility;

B.

a list of any alternative sites or routes that are addressed;

C.

a discussion of the potential impacts of the proposed project and each alternative site or route on the human and natural environment;

D.

a discussion of mitigative measures that could reasonably be implemented to eliminate or minimize any adverse impacts identified for the proposed project and each alternative site or route analyzed;

E.

an analysis of the feasibility of each alternative site or route considered;

F.

a list of permits required for the project; and

G.

a discussion of other matters identified in the scoping process.

Subp. 5.

Time frame for completion of environmental assessment.

The commissioner of the Department of Commerce shall complete the environmental assessment in accordance with the schedule established during the scoping process. In establishing the schedule for completion of the environmental assessment, the commissioner shall take into account any applicable statutory deadlines, the number and complexity of the alternatives and impacts to be addressed, the status of other proceedings affecting the project, and the interests of the public, the applicant, and the commissioner.

Subp. 6.

Notification of availability of environmental assessment.

Upon completion of the environmental assessment, the commissioner shall publish notice in the EQB Monitor of the availability of the environmental assessment and mail notice of the availability of the document to those persons on the project contact list. The commissioner shall provide a copy of the environmental assessment to any public agency with authority to permit or approve the proposed project. The commissioner shall post the environmental assessment on the agency's web page, if possible.

Subp. 7.

Matters excluded.

When the Public Utilities Commission has issued a Certificate of Need for a large electric power generating plant or high voltage transmission line or placed a high voltage transmission line on the certified HVTL list maintained by the commission, the environmental assessment shall not address questions of need, including size, type, and timing; questions of alternative system configurations; or questions of voltage.

Subp. 8.

No additional environmental review.

An environmental assessment must be the only state environmental review document required to be prepared by the commissioner of the Department of Commerce on a project qualifying for review under the alternative review process. No environmental assessment worksheet or environmental impact statement shall be required. Environmental review at the certificate of need stage before the Public Utilities Commission must be performed in accordance with parts 7849.1000 to 7849.2100.

Subp. 9.

Cost.

The cost of the preparation of an environmental assessment must be assessed to the applicant as part of the application fee pursuant to part 7850.1800.

7850.3800 PUBLIC HEARING.

Subpart 1.

Public hearing.

The PUC shall hold a public hearing once the environmental assessment has been completed. Notice of the hearing shall be given in accordance with Minnesota Statutes, section 216E.03, subdivision 6. At least a portion of the hearing shall be held in a county where the proposed large electric power generating plant or high voltage transmission line would be located.

Subp. 2.

Hearing examiner.

The commission shall appoint a person to act as the hearing examiner at the public hearing. The hearing examiner may be an employee of the PUC. The hearing examiner shall set the date and place for the hearing and provide notice to the public. The hearing examiner may make such rulings as are required to conduct the hearing in a fair, impartial, and expeditious manner, including the authority to maintain decorum at the hearing, to exclude repetitious or irrelevant testimony, to limit the amount of time for oral testimony, and to continue the hearing from time to time as needed. Persons may testify at the hearing without being first sworn under oath. The hearing examiner shall ensure that the record created at the hearing is preserved and transmitted to the commission. An audio recording of the hearing must be made, unless the commission determines that a court reporter is appropriate. The hearing examiner shall not prepare a report or make any recommendation to the commission unless the commission requests the hearing examiner to do so.

Subp. 3.

Hearing procedure.

The hearing must be conducted in the following manner, although the hearing examiner may vary the order in which the hearing proceeds:

A.

the staff shall make a brief presentation to describe the project, explain the process to be followed, and introduce documents to be included in the record, including the application, the environmental assessment, and various procedural documents;

B.

the applicant shall introduce its evidence by way of testimony and exhibits;

C.

the public must be afforded an opportunity to make an oral presentation, present documentary evidence, and ask questions of the applicant and staff;

D.

the hearing examiner shall provide a period of not less than ten days for the submission of written comments into the record after the close of the hearing; and

E.

the hearing examiner shall transmit the complete record created at the hearing, including all written comments, to the commission within five days of the close of the record, unless the hearing examiner has been requested by the commission to prepare a report.

Subp. 4.

Issues.

Once the Public Utilities Commission has determined questions of need, including size, type, and timing; questions of system configurations; and questions of voltage, those issues must not be addressed in the public hearing.

Subp. 5.

Environmental assessment.

Interested persons may comment upon the environmental assessment at the public hearing. Comments on the environmental assessment shall become part of the record in the proceeding but the commission shall not be required to revise or supplement the environmental assessment document.

7850.3900 FINAL DECISION.

Subpart 1.

Timing.

The commission shall make a final decision on a site permit or a route permit application within 60 days after receipt of the record from the hearing examiner. A final decision must be made within six months after the commission's determination that an application is complete. The commission may extend this time limit for up to three months for just cause or upon agreement of the applicant.

Subp. 2.

Completeness of environmental assessment.

At the time the commission makes a final decision on the permit application, the commission shall determine whether the environmental assessment and the record created at the public hearing address the issues identified in the scoping decision.

Subp. 3.

Certificate of need decision.

The PUC shall not make a final decision on a permit for a project that requires a certificate of need from the Public Utilities Commission until the applicant has obtained the necessary approval from the Public Utilities Commission.

Subp. 4.

Notice.

The PUC shall publish notice of its final permit decision in the State Register within 30 days of the day the commission makes the decision. The PUC shall also publish notice in the EQB Monitor. The PUC shall mail notice of its final permit decision to those persons whose names are on the project contact list. The PUC shall post notice of the final decision on the agency's web page, if possible.

7850.4100 FACTORS CONSIDERED.

In determining whether to issue a permit for a large electric power generating plant or a high voltage transmission line, the commission shall consider the following:

A.

effects on human settlement, including, but not limited to, displacement, noise, aesthetics, cultural values, recreation, and public services;

B.

effects on public health and safety;

C.

effects on land-based economies, including, but not limited to, agriculture, forestry, tourism, and mining;

D.

effects on archaeological and historic resources;

E.

effects on the natural environment, including effects on air and water quality resources and flora and fauna;

F.

effects on rare and unique natural resources;

G.

application of design options that maximize energy efficiencies, mitigate adverse environmental effects, and could accommodate expansion of transmission or generating capacity;

H.

use or paralleling of existing rights-of-way, survey lines, natural division lines, and agricultural field boundaries;

I.

use of existing large electric power generating plant sites;

J.

use of existing transportation, pipeline, and electrical transmission systems or rights-of-way;

K.

electrical system reliability;

L.

costs of constructing, operating, and maintaining the facility which are dependent on design and route;

M.

adverse human and natural environmental effects which cannot be avoided; and

N.

irreversible and irretrievable commitments of resources.

7850.4200 FACTORS EXCLUDED.

When the Public Utilities Commission has issued a Certificate of Need for a large electric power generating plant or a high voltage transmission line or placed a high voltage transmission line on the certified HVTL list maintained by the commission, questions of need, including size, type, and timing, questions of alternative system configurations, and questions of voltage shall not be factors considered by the commission in deciding whether to issue a permit for a proposed facility.

7850.4500 PERMIT APPLICATION REJECTION.

The commission shall reject a permit application at the time it is submitted if the application is for a facility to be located on a prohibited site or within a prohibited route or if the applicant fails to address in the application why no feasible and prudent alternative exists for sites or routes that may be authorized in such a situation.

7850.4600 PERMIT CONDITIONS.

Subpart 1.

Generally.

The commission shall impose in any site permit for a large electric power generating plant or route permit for a high voltage transmission line such conditions as the commission deems appropriate and are supported by the record.

Subp. 2.

HVTL permits.

When the commission issues a permit for a route for a high voltage transmission line, the commission shall specify the design, route, right-of-way preparation, and facility construction and operation it deems necessary. The commission may impose a condition in the permit requiring the permittee to construct a high voltage transmission line that is capable of expansion in transmission capacity through multiple circuiting or design modifications.

7850.4700 DELAY IN ROUTE OR SITE CONSTRUCTION.

If construction and improvement of a route or site have not commenced four years after the permit has been issued by the commission, the commission shall suspend the permit. If at that time, or at a time subsequent, the permittee decides to construct the proposed large electric power generating facility or high voltage transmission line, the permittee shall certify to the commission that there have been no significant changes in any material aspects of the conditions or circumstances existing when the permit was issued. The commission shall mail notice of receipt of the certification request to those persons on the general list at least seven days before the commission's consideration of the matter, and the same notice to those persons on the project contact list if such a list exists. If the commission determines that there are no significant changes, it shall reinstate the permit. If the commission determines that there is a significant change, it may order a new hearing and consider the matter further, or it may require the permittee to file a new application.

7850.4800 MINOR ALTERATION IN GENERATING PLANT OR TRANSMISSION LINE.

Subpart 1.

Applicability.

No person may make a minor alteration in a large electric power generating plant or high voltage transmission line without approval from the commission, unless the action is exempt from review under part 7850.1500. A minor alteration is a change in a large electric power generating plant or high voltage transmission line that does not result in significant changes in the human or environmental impact of the facility. The requirements of this part apply to those facilities that have been permitted by the PUC and to those facilities that were not permitted by the PUC but meet the definition of a large electric power generating plant or high voltage transmission line under applicable law. For those large electric power generating plants or high voltage transmission lines for which no permit has been issued by the PUC, this part applies to minor alterations in the facility as it exists on February 18, 2003.

Subp. 2.

Application.

A person seeking authorization to make a minor alteration in a large electric power generating plant or high voltage transmission line shall apply to the commission. The application shall be in writing and shall describe the alteration in the large electric power generating plant or high voltage transmission line to be made and the explanation why the alteration is minor. The commission shall mail notice of receipt of the application to those persons on the general list and to those persons on the project contact list if such a list exists. The commission shall provide at least a ten-day period for interested persons to submit comments on the application or to request that the matter be brought to the commission for consideration.

Subp. 3.

Commission decision.

The commission shall decide within ten days after close of the public comment period whether to authorize the minor alteration, bring the matter to the commission for consideration, or determine that the alteration is not minor and requires a full permitting decision. The commission may authorize the minor alteration but impose reasonable conditions on the approval. The commission shall notify the applicant in writing of the commission's decision and send a copy of the decision to any person who requested notification or filed comments on the application.

Subp. 4.

Local review.

For those large electric power generating plants or high voltage transmission lines for which no permit has been issued by the PUC, the owner or operator of such unpermitted facilities may elect to seek approval of a minor alteration from the local unit of government if the facility qualifies for local review under Minnesota Statutes, section 216E.05.

7850.4900 AMENDMENT OF PERMIT CONDITIONS.

Subpart 1.

Authority.

The commission may amend any of the conditions in a site permit for a large electric power generating plant or in a route permit for a high voltage transmission line issued by the PUC upon request of any person.

Subp. 2.

Process.

The person requesting an amendment of a condition in a site permit or a route permit shall submit an application to the commission in writing describing the amendment sought and the reasons for the amendment. The commission shall mail notice of receipt of the application to those persons on the general list and to those persons on the project list if such a list exists. The commission shall provide at least a ten-day period for interested persons to submit comments on the application or to request that the matter be brought to the commission for consideration.

Subp. 3.

Decision.

The commission shall decide within ten days after close of the public comment period whether to approve the amendment request or to bring the matter to the commission for consideration. The commission shall notify the applicant in writing of the commission's decision and send a copy of the decision to any person who requested notification or filed comments on the application.

7850.5000 PERMIT TRANSFER.

Subpart 1.

Application.

A permittee holding a large electric power generating plant site permit or a high voltage transmission line route permit may request the PUC to transfer its permit. The permittee shall provide the name of the existing permittee, the name and description of the entity to which the permit is to be transferred, the reasons for the transfer, a description of the facilities affected, and the proposed effective date of the transfer. The person to whom the permit is to be transferred shall provide the PUC with such information as the PUC shall require to determine whether the new permittee can comply with the conditions of the permit. The commission shall mail notice of receipt of the application to those persons on the general list at least seven days in advance of the commission's consideration of the matter. The commission shall provide the same notice to persons on the project contact list if such a list exists.

Subp. 2.

Approval of transfer.

The commission shall approve the transfer if the commission determines that the new permittee will comply with the conditions of the permit. The commission, in approving the transfer of a permit, may impose reasonable additional conditions in the permit as part of the approval. The commission may decide to hold a public meeting to provide the public with an opportunity to comment on the request for the transfer prior to making a decision.

7850.5100 PERMIT REVOCATION OR SUSPENSION.

Subpart 1.

Initiation of action to revoke or suspend.

The commission may initiate action to consider revocation or suspension of a permit on its own motion or upon the request of any person who has made a prima facie showing by affidavit and documentation that a violation of the act, parts 7850.1000 to 7850.5600, or the permit has occurred.

Subp. 2.

Hearing.

If the commission initiates action to consider revocation or suspension of a permit, the commission shall provide the permittee with an opportunity for a contested case hearing conducted by an administrative law judge from the Office of Administrative Hearings.

Subp. 3.

Finding of violation.

If the commission finds that a violation of the act, parts 7850.1000 to 7850.5600, or the permit has occurred, it may revoke or suspend the permit, require the utility to undertake corrective or ameliorative measures as a condition to avoid revocation or suspension, or require corrective measures and suspend the permit. In determining the appropriate sanction, the commission shall consider the following:

A.

whether the violation will result in any significant additional adverse environmental effects;

B.

whether the results of the violation can be corrected or ameliorated; and

C.

whether a suspension or revocation of a permit or certificate will impair the utility's electrical power system reliability.

7850.5200 EMERGENCY PERMIT.

Subpart 1.

Application for emergency permit.

Any utility whose electric power system requires the immediate construction of a large electric power generating plant or high voltage transmission line due to a major unforeseen event may apply to the commission for an emergency permit. The application must contain the following information:

A.

a description of the proposed large electric power generating plant or high voltage transmission line;

B.

an explanation of the major unforeseen event causing the emergency situation;

C.

a discussion of the anticipated impacts on the electric system if the proposed facility is not approved within 195 days;

D.

a copy of the written notification to the Public Utilities Commission of the major unforeseen event and the need for immediate construction; and

E.

as much of the information required under part 7850.1900 as the utility has available.

Subp. 2.

Public hearing.

The PUC shall hold a public hearing on the application for an emergency permit. The hearing must be held within 90 days after the application is submitted. The hearing must be held in accordance with part 7850.3800.

Subp. 3.

Final decision.

The commission shall make a final decision on an emergency permit within 195 days after the commission's acceptance of the application. The board shall grant the emergency permit if it finds the following:

A.

a demonstrable emergency exists;

B.

the emergency requires immediate construction;

C.

adherence to the procedures and time schedules specified in Minnesota Statutes, section 216E.03, would jeopardize the utility's electric power system or the utility's ability to meet the electric needs of its customers in an orderly and timely manner;

D.

the utility will implement mitigating measures to minimize the human and environmental impacts of the facility; and

E.

the utility will carry out the project in an expeditious manner consistent with the emergency.

Subp. 4.

Permit conditions.

The commission may impose reasonable conditions in an emergency permit.

Subp. 5.

Permit fee.

The applicant for an emergency permit shall pay the same fee as would be required for a regular permit for the same project.

7850.5300 LOCAL REVIEW OF PROPOSED FACILITIES.

Subpart 1.

Local review.

An applicant who seeks a site or route permit for one of the projects identified in subpart 2 has the option of applying to those local units of government that have jurisdiction over the site or route for approval to build the project. If local approval is granted, a site or route permit is not required from the commission. If the applicant files an application with the PUC, the applicant shall be deemed to have waived its right to seek local approval of the project.

Subp. 2.

Eligible projects.

An applicant may seek approval from a local unit of government to construct the following projects:

A.

a large electric power generating plant with a capacity of less than 80 megawatts;

B.

a large electric power generating plant of any size that burns natural gas and is intended to be a peaking plant;

C.

a high voltage transmission line of between 100 and 200 kilovolts;

D.

a substation with a voltage designed for and capable of operation at a nominal voltage of 100 kilovolts or more;

E.

a high voltage transmission line service extension to a single customer between 200 and 300 kilovolts and less than ten miles in length; and

F.

a high voltage transmission line rerouting to serve the demand of a single customer when at least 80 percent of the rerouted line will be located on property owned or controlled by the customer or the owner of the transmission line.

Subp. 3.

Notice to PUC.

Within ten days of submission of an application to a local unit of government for approval of an eligible project, the applicant shall notify the commission in writing that the applicant has elected to seek local approval of the proposed project. Within the same ten-day period, the applicant shall mail notice to those persons on the general notification list that a permit has been applied for from the local unit of government for the project and shall provide a description of the project and the name of a person with the local unit of government to contact for more information.

Subp. 4.

Referral to PUC.

A local unit of government with jurisdiction over a project identified in this section to whom an applicant has applied for approval to build the project may request the PUC to assume jurisdiction and make a decision on a site or route permit. A local unit of government shall file the request with the commission within 60 days after an application for the project has been filed with any one local unit of government. If one of the local units of government with jurisdiction over the project requests the commission to assume jurisdiction, jurisdiction over the project transfers to the commission and the applicant shall file under the applicable provisions of parts 7850.1000 to 7850.5600 for a permit from the commission.

Subp. 5.

Environmental review.

A local unit of government that maintains jurisdiction over a qualifying project shall prepare an environmental assessment on the project. The local unit of government shall afford the public an opportunity to participate in the development of the scope of the environmental assessment before it is prepared. Upon completion of the environmental assessment, the local unit of government shall publish notice in the EQB Monitor that the environmental assessment is available for review, how a copy of the document may be reviewed, that the public may comment on the document, and the procedure for submitting comments to the local unit of government. The local unit of government shall provide a copy of the environmental assessment to the PUC upon completion of the document. The local unit of government shall not make a final decision on the permit until at least ten days after the notice appears in the EQB Monitor. If more than one local unit of government has jurisdiction over a project, and the local units of government cannot agree on which unit will prepare the environmental assessment, any local unit of government or the applicant may request the commission to select the appropriate local unit of government to be the responsible governmental unit to conduct an environmental review of the project.

Subp. 6.

No local authority.

In the event a local unit of government that might otherwise have jurisdiction over a proposed large electric power generating plant or high voltage transmission line determines that it has no ordinances or other provisions for reviewing and authorizing the construction of such project or has no capability of preparing an environmental assessment on the project, the local unit of government shall refer the matter to the PUC for review.

Subp. 7.

Matters excluded.

When the Public Utilities Commission has issued a Certificate of Need for a large electric power generating plant or high voltage transmission line or placed a high voltage transmission line on the certified HVTL list maintained by the commission, the local unit of government shall not address questions of need, including size, type, and timing; questions of alternative system configurations; or questions of voltage.

7850.5400 ANNUAL PUBLIC HEARING.

Subpart 1.

Annual public hearing.

The commission shall hold an annual public hearing in November or December in St. Paul in order to advise the public of matters relating to the siting of large electric power generating plants and routing of high voltage transmission lines. The meeting must be conducted by the PUC staff. At the meeting, the PUC shall advise the public of the permits issued by the PUC in the past year. The PUC shall invite representatives of other state agencies to attend the meeting and be available to answer questions by the public. An audio recording of the hearing must be maintained.

Subp. 2.

Notice.

The PUC shall provide at least ten days but no more than 45 days notice of the annual hearing by mailing notice to those persons who have requested notice and by publication in the EQB Monitor. The notice must be accompanied by a tentative agenda for the hearing.

Subp. 3.

Report.

The staff shall prepare a report of the annual hearing within 60 days after the hearing and submit it to the commission. No action on the report is required.

7850.5500 ANNUAL ASSESSMENT ON UTILITIES.

For purposes of determining the annual assessment on a utility pursuant to the act, each utility shall, on or before July 1 of each year, submit to the commission a report of its retail kilowatt-hour sales in the state and its gross revenue from kilowatt-hour sales in the state for the preceding calendar or utility reporting year. Upon receipt of these reports, the commission shall bill each utility as specified in the act.

7850.5600 PROGRAM ADVISORY TASK FORCE.

The commission may appoint a program advisory task force to provide advice and recommendations concerning development, revision, and enforcement of any rule or program initiated under the act or parts 7850.1000 to 7850.5600. The commission shall provide guidance to the program advisory task force in the form of a charge and through specific requests. The program advisory task force must be composed of as many members as may be designated by the commission and its membership must be solicited on a statewide basis. The program advisory task force and its chair must be appointed for a one-year term.

7854.0100 DEFINITIONS.

Subpart 1.

Scope.

As used in this chapter, the following terms have the meanings given them.

Subp. 2.

Associated facilities.

"Associated facilities" means facilities, equipment, machinery, and other devices necessary to the operation and maintenance of a large wind energy conversion system, including access roads, collector and feeder lines, and substations.

Subp. 3.

Commission.

"Commission" means the Minnesota Public Utilities Commission.

Subp. 4.

Construction.

"Construction" means to begin or cause to begin as part of a continuous program the placement, assembly, or installation of facilities or equipment or to conduct significant site preparation work for installation of facilities or equipment. Entering into binding power purchase contracts or obtaining wind easements from property owners or gathering wind data is not construction.

Subp. 5.

Draft site permit.

"Draft site permit" means a document prepared by the chair that indicates a preliminary decision to issue a site permit with particular terms and conditions.

Subp. 6.

EQB Monitor.

"EQB Monitor" means the biweekly bulletin published by the Environmental Quality Board.

Subp. 7.

Large wind energy conversion system or LWECS.

"Large wind energy conversion system" or "LWECS" means a combination of wind energy conversion systems with a combined nameplate capacity of 5,000 kilowatts or more.

Subp. 8.

Person.

"Person" means an individual, partnership, joint venture, private or public corporation, association, firm, public service company, cooperative, political subdivision, municipal corporation, government agency, public utility district, or any other entity, public or private, however organized.

Subp. 9.

Power purchase agreement.

"Power purchase agreement" means a legally enforceable agreement between two or more persons where one or more of the signatories agrees to provide electrical power and one or more of the signatories agrees to purchase the power.

Subp. 10.

PUC.

"PUC" means the commission and the commission's staff.

Subp. 11.

Site permit.

"Site permit" means a document issued by the commission authorizing a person or persons to construct a large wind energy conversion system under the terms and conditions specified in the document.

Subp. 12.

Small wind energy conversion system or SWECS.

"Small wind energy conversion system" or "SWECS" means a combination of wind energy conversion systems with a combined nameplate capacity of less than 5,000 kilowatts.

Subp. 13.

Wind energy conversion system or WECS.

"Wind energy conversion system" or "WECS" means a device such as a wind charger, windmill, or wind turbine and associated facilities that converts wind energy to electric energy.

7854.0200 PURPOSE.

This chapter provides for the consideration of applications for site permits for large wind energy conversion systems by the Minnesota Public Utilities Commission. This chapter is intended to provide for the siting of large wind energy conversion systems in an orderly manner compatible with environmental preservation, sustainable development, and the efficient use of resources.

7854.0300 PERMIT REQUIREMENT.

Subpart 1.

LWECS.

No person may construct an LWECS without a site permit from the commission. No person may commence construction of an LWECS until the commission has issued a site permit for the LWECS.

Subp. 2.

SWECS.

A site permit from the commission is not required to construct an SWECS. Nothing in this chapter precludes a local governmental unit from establishing requirements for the siting and construction of an SWECS.

Subp. 3.

Expansion of existing system.

No person may expand an existing LWECS by any amount or expand an SWECS to exceed 5,000 kilowatts without a site permit from the commission. A new project is considered an expansion of an existing WECS if the new WECS is within five miles of any turbine in the existing WECS, both projects are under common ownership, and a permit application for the new WECS is submitted to the PUC less than three years after the existing WECS commenced operation. Two WECS are under common ownership if the proposer of the new project, or a principal of the proposer, has an ownership or other financial interest in the existing WECS, although two projects are not under common ownership solely because the same person provided equity financing for both projects. The requirements of this subpart do not apply to any proposed SWECS for which the necessary local approvals were obtained prior to October 1, 2002, and for which construction started prior to December 31, 2002.

7854.0400 FILING APPLICATION FOR SITE PERMIT; PROTECTING DATA.

Subpart 1.

Number of copies.

A person seeking a site permit for an LWECS shall file three copies of the application for the site permit with the PUC for review prior to acceptance of the application.

Subp. 2.

Electronic copy.

A person filing an application for a site permit for an LWECS shall provide the PUC with an electronic version of the application suitable for posting on the PUC web page. An applicant may request that the commission waive this requirement, completely or in part, if an electronic version of the application is difficult or expensive for the applicant to obtain.

Subp. 3.

Not public data.

An applicant for a site permit for an LWECS may certify, according to the Minnesota Government Data Practices Act or other applicable law, that certain information in the application is trade secret information or other protected data or information that is not available to the public. The commission shall determine if the certified data or information satisfies the requirements for the protected classification and shall advise the applicant of the commission's determination before releasing any certified data or information. An applicant may withdraw its application if the commmission determines that the data or information is not entitled to the protected classification. Any person aggrieved by the decision of the commission regarding the status of certain data may request the commission to reconsider it's decision. The PUC shall ensure that data or information that is entitled to a protected classification is used and disclosed only according to applicable law.

7854.0500 SITE PERMIT APPLICATION CONTENTS.

Subpart 1.

Applicant.

An applicant for a site permit must provide the following background information regarding the applicant:

A.

a letter of transmittal signed by an authorized representative or agent of the applicant;

B.

the complete name, address, and telephone number of the applicant and any authorized representative;

C.

the signature of the preparer of the application if prepared by an agent or consultant of the applicant;

D.

the role of the permit applicant in the construction and operation of the LWECS;

E.

the identity of any other LWECS located in Minnesota in which the applicant, or a principal of the applicant, has an ownership or other financial interest;

F.

the operator of the LWECS if different from the applicant; and

G.

the name of the person or persons to be the permittees if a site permit is issued.

Subp. 2.

Certificate of need or other commitment.

A.

The applicant shall state in the application whether a certificate of need for the system is required from the commission and, if so, the anticipated schedule for obtaining the certificate of need. The commission shall not issue a site permit for an LWECS for which a certificate of need is required until the applicant obtains the certificate, although the commission may process the application while the certificate of need request is pending before the commission.

B.

The commission may determine if a certificate of need is required for a particular LWECS for which the commission has received a site permit application.

C.

If a certificate of need is not required from the commission, the applicant shall include with the application a discussion of what the applicant intends to do with the power that is generated. If the applicant has a power purchase agreement or some other enforceable mechanism for sale of the power to be generated by the LWECS, the applicant shall, upon the request of the commission, provide the commission with a copy of the document.

Subp. 3.

State policy.

The applicant shall describe in the application how the proposed LWECS project furthers state policy to site such projects in an orderly manner compatible with environmental preservation, sustainable development, and the efficient use of resources.

Subp. 4.

Proposed site.

The applicant shall include the following information about the site proposed for the LWECS and any associated facilities:

A.

the boundaries of the site proposed for the LWECS, which must be delineated on a United States Geological Survey Map or other map as appropriate;

B.

the following characteristics of the wind at the proposed site:

(1)

interannual variation;

(2)

seasonal variation;

(3)

diurnal conditions;

(4)

atmospheric stability, to the extent available;

(5)

turbulence, to the extent available;

(6)

extreme conditions;

(7)

speed frequency distribution;

(8)

variation with height;

(9)

spatial variations; and

(10)

wind rose, in eight or more directions;

C.

other meteorological conditions at the proposed site, including the temperature, rainfall, snowfall, and extreme weather conditions; and

D.

the location of other wind turbines in the general area of the proposed LWECS.

Subp. 5.

Wind rights.

The applicant shall include in the application information describing the applicant's wind rights within the boundaries of the proposed site.

Subp. 6.

Design of project.

The applicant shall provide the following information regarding the design of the proposed project:

A.

a project layout, including a map showing a proposed array spacing of the turbines;

B.

a description of the turbines and towers and other equipment to be used in the project, including the name of the manufacturers of the equipment;

C.

a description of the LWECS electrical system, including transformers at both low voltage and medium voltage; and

D.

a description and location of associated facilities.

Subp. 7.

Environmental impacts.

An applicant for a site permit shall include with the application an analysis of the potential impacts of the project, proposed mitigative measures, and any adverse environmental effects that cannot be avoided, in the following areas:

A.

demographics, including people, homes, and businesses;

B.

noise;

C.

visual impacts;

D.

public services and infrastructure;

E.

cultural and archaeological impacts;

F.

recreational resources;

G.

public health and safety, including air traffic, electromagnetic fields, and security and traffic;

H.

hazardous materials;

I.

land-based economics, including agriculture, forestry, and mining;

J.

tourism and community benefits;

K.

topography;

L.

soils;

M.

geologic and groundwater resources;

N.

surface water and floodplain resources;

O.

wetlands;

P.

vegetation;

Q.

wildlife; and

R.

rare and unique natural resources.

The analysis of the environmental impacts required by this subpart satisfies the environmental review requirements of chapter 4410, parts 7849.1000 to 7849.2100, and Minnesota Statutes, chapter 116D. No environmental assessment worksheet or environmental impact statement shall be required on a proposed LWECS project.

Subp. 8.

Construction of project.

The applicant shall describe the manner in which the project, including associated facilities, will be constructed.

Subp. 9.

Operation of project.

The applicant shall describe how the project will be operated and maintained after construction, including a maintenance schedule.

Subp. 10.

Costs.

The applicant shall describe the estimated costs of design and construction of the project and the expected operating costs.

Subp. 11.

Schedule.

The applicant shall include an anticipated schedule for completion of the project, including the time periods for land acquisition, obtaining a site permit, obtaining financing, procuring equipment, and completing construction. The applicant shall identify the expected date of commercial operation.

Subp. 12.

Energy projections.

The applicant shall identify the energy expected to be generated by the project.

Subp. 13.

Decommissioning and restoration.

The applicant shall include the following information regarding decommissioning of the project and restoring the site:

A.

the anticipated life of the project;

B.

the estimated decommissioning costs in current dollars;

C.

the method and schedule for updating the costs of decommissioning and restoration;

D.

the method of ensuring that funds will be available for decommissioning and restoration; and

E.

the anticipated manner in which the project will be decommissioned and the site restored.

Subp. 14.

Identification of other permits.

The applicant shall include in the application a list of all known federal, state, and local agencies or authorities, and titles of the permits they issue that are required for the proposed LWECS.

7854.0600 APPLICATION ACCEPTANCE.

Subpart 1.

Action by commission.

Within 30 days after receipt of an application for a site permit, the commission shall accept, conditionally accept, or reject the application. If the commission conditionally accepts or rejects an application, the commission shall advise the applicant in writing of the deficiencies in the application and the manner in which the deficiencies can be addressed. Upon refiling of a revised application, the commission shall again act on the application within 30 days after receipt.

Subp. 2.

Notice of application acceptance.

Within 15 days after commission acceptance of an application, the applicant shall provide notice of the application to the county board, each city council, and each township board in each county where the LWECS is proposed to be located and shall publish notice of the application in a newspaper of general circulation in each county. Failure to give this notice or a delay in providing this notice constitutes cause to reject an application or delay a decision by the commission. The commission may elect to give this notice in lieu of requiring the applicant to provide the notice.

Subp. 3.

Additional copies.

Upon acceptance of the application by the commission, the commission shall advise the applicant of how many additional copies of the application to submit to the PUC. The applicant shall also provide a copy of the accepted application to the Minnesota Historical Society and to each landowner within the boundaries of the proposed LWECS site. The applicant shall also provide a copy to the office of each regional development commission of a development region, the auditor of each county, and the clerk of each city and township in which the LWECS is to be located. Each county auditor, city clerk, and township clerk shall retain the application and make it available for public inspection upon request. The applicant shall maintain a list of all persons to whom copies of the application are provided.

7854.0700 PUBLIC ADVISOR.

Upon acceptance of an application for a site permit, the commission shall designate a staff person to act as the public advisor on the project. The public advisor shall be available to answer questions from the public about the permitting process. The public advisor shall not give legal advice or other advice that may affect the legal rights of the person being advised, and the public advisor shall not act as an advocate on behalf of any person.

7854.0800 PRELIMINARY DETERMINATION AND DRAFT SITE PERMIT.

Subpart 1.

Preliminary determination.

Within 45 days after acceptance of the application by the commission, the commission shall make a preliminary determination whether a permit may be issued or should be denied. If the preliminary determination is to issue a permit, the commission shall prepare a draft site permit for the project. The draft site permit must identify the person or persons who will be the permittee, describe the proposed LWECS, and include proposed permit conditions.

Subp. 2.

Effect of draft site permit.

A draft site permit does not authorize a person to construct an LWECS. The commission may change the draft site permit in any respect before final issuance or may deny the site permit.

7854.0900 PUBLIC PARTICIPATION.

Subpart 1.

Public notice.

Upon preparation of a draft site permit, the PUC shall provide public notice of the draft site permit. The public notice must include the following:

A.

the name and address of the applicant for the site permit;

B.

a concise description of the proposed LWECS project;

C.

the location where a copy of the site permit application may be reviewed and how a copy of the application may be obtained;

D.

a statement of the availability of the draft site permit;

E.

the name of the public advisor and how the public advisor may be contacted to obtain more information;

F.

the time and place of a public information meeting;

G.

a statement that during the comment period any person may submit comments to the commission on the draft site permit, a statement of the dates on which the comment period commences and terminates, and a statement that any person may request a contested case hearing on the matter; and

H.

a brief description of the anticipated procedures for reaching a final decision on the permit application.

Subp. 2.

Distribution of public notice.

The PUC shall publish the notice in a newspaper in each county in which the proposed LWECS is to be located. The PUC shall also mail the public notice to those persons known to the PUC to be interested in the proposed LWECS project, including governmental officials in each county in which the LWECS is proposed to be located. The PUC shall also publish notice in the EQB Monitor.

Subp. 3.

Public comments on draft site permit.

The PUC shall afford the public a minimum of 30 days after publication of the draft site permit notice in the EQB Monitor to submit written comments to the PUC. The commission may extend the public comment period if necessary to afford the public adequate time to review the application and other pertinent information in order to formulate complete comments on the draft site permit and the project.

Subp. 4.

Public information meeting.

The PUC shall hold at least one public information meeting in a convenient location in the vicinity of the proposed LWECS project. The PUC shall give the public at least ten days' notice of the public information meeting. The public information meeting must be held more than ten days prior to the end of the public comment period on the draft site permit. The commission shall extend the comment period if necessary to meet this requirement.

Subp. 5.

Contested case hearing.

A.

Any person may request in writing that a contested case hearing be held on an application for a site permit for a proposed LWECS project. The contested case hearing request must be filed within the time period established for submitting comments on the draft site permit. The person requesting the public hearing shall include, as part of the request, the issues to be addressed in the hearing and the reasons a hearing is required to resolve those issues.

B.

The commission shall order a contested case hearing if the commission finds that the person requesting the contested case hearing has raised a material issue of fact and that holding a hearing would aid the PUC in making a final determination on the permit application.

C.

The hearing must be conducted according to the rules of the Office of Administrative Hearings.

D.

For a contested case hearing, the commission shall identify the issues to be resolved and limit the scope and conduct of the hearing according to applicable law, due process, and fundamental fairness. Alternatively, the commission may request the administrative law judge to identify the issues and determine the appropriate scope and conduct of the hearing according to applicable law, due process, and fundamental fairness.

7854.1000 FINAL SITE PERMIT DECISION.

Subpart 1.

Commission action.

Upon completion of the procedures and requirements of this chapter, the matter must be brought to the commission for a final decision. If a contested case hearing has been held, the commission shall act according to applicable requirements for action in a contested case proceeding. If no contested case hearing has been held, the commission shall compile the record that has been created and make a decision on the basis of that record.

Subp. 2.

Time limit for decision.

The commission shall take final action on the application for a site permit for an LWECS within 180 days after acceptance of an application by the commission, unless the applicant agrees to an extension or the commission extends this deadline for cause.

Subp. 3.

Determination by commission.

The commission shall not issue a site permit for an LWECS unless the commission determines that the project is compatible with environmental preservation, sustainable development, and the efficient use of resources, and the applicant has complied with this chapter.

Subp. 4.

Conditions.

The commission may include in a site permit conditions for turbine type and designs, site layout and construction, and operation and maintenance of the LWECS, including the requirement to restore, to the extent possible, the area affected by construction of the LWECS to the natural conditions that existed immediately before construction of the LWECS and other conditions that the commission determines are reasonable to protect the environment, enhance sustainable development, and promote the efficient use of resources.

Subp. 5.

Term.

The term of a site permit for an LWECS is 30 years. The commission may renew the permit for an appropriate period of time upon request of the permit holder.

7854.1100 PERMIT AUTHORITY LIMITED.

Subpart 1.

Wind rights.

Nothing in a site permit for an LWECS shall be construed to convey the right to install a wind turbine in an area within the boundaries of the project for which the permittee does not hold the wind rights.

Subp. 2.

Other LWECS construction.

Nothing in a site permit for an LWECS shall be construed to preclude another person from seeking a site permit to construct an LWECS in an area within the boundaries of the project covered by the permit if the permittee does not hold exclusive wind rights for the areas.

Subp. 3.

Power purchase agreement.

A site permit does not authorize construction of the project until the permittee has obtained a power purchase agreement or some other enforceable mechanism for sale of the power to be generated by the project. If the permittee does not have a power purchase agreement or other enforceable mechanism at the time the permit is issued, the commission shall provide in the permit that the permittee shall advise the commission when it obtains a commitment for purchase of the power. The commission may establish as a condition in the permit a date by which the permittee must obtain a power purchase agreement or other enforceable mechanism or the site permit is null and void.

7854.1200 DELAY IN CONSTRUCTION.

If the permittee has not commenced construction of the project within two years after issuance of the site permit, the permittee must advise the commission of the reasons construction has not commenced. In such event, the commission may determine whether the permit should be revoked. No revocation of a permit for failure to commence construction may be undertaken except in accordance with part 7854.1300, subpart 4.

7854.1300 SITE PERMIT AMENDMENT OR REVOCATION.

Subpart 1.

New boundary.

Once construction of an LWECS is completed, the permittee shall advise the commission of the completion of the project and the commission shall amend the site permit to specifically define the area authorized for the LWECS. The boundary must be no larger than necessary to allow for efficient operation of the LWECS. If any person objects to the amendment of the permit to reflect the actual boundaries of the project, the commission shall bring the matter for decision in accordance with applicable procedural requirements.

Subp. 2.

Permit amendment.

The commission may amend a site permit for an LWECS at any time if the commission has good cause to do so.

Subp. 3.

Permit revocation.

The commission may revoke a site permit for an LWECS at any time if the commission determines that any of the following has occurred:

A.

the applicant knowingly made a false statement in the application or in accompanying statements or studies required of the applicant, if a true statement would have warranted a change in the commission's findings;

B.

the applicant has failed to comply with a material condition or term of the permit;

C.

the permitted LWECS endangers human health or the environment and the danger cannot be resolved by modification of the permit or LWECS; or

D.

the permittee has violated other laws that reflect an inability of the permittee to comply with the permit.

Subp. 4.

Procedure.

The commission may initiate action to consider amendment or revocation of a site permit for an LWECS on its own initiative or upon the request of any person. No site permit may be amended or revoked without first providing notice and affording due process to the permit holder.

7854.1400 PERMIT TRANSFER.

Subpart 1.

Request for transfer.

A permittee of a site permit for an LWECS may apply to the PUC for the transfer of its permit. The permittee must provide the name of the existing permittee, the name and description of the person to whom the permit is to be transferred, the reasons for the transfer, a description of the facilities affected, and the requested date of the transfer. The person to whom the permit is to be transferred shall provide the PUC with information required by the PUC to determine whether the new permittee can comply with the conditions of the permit. The permittee shall provide notice of the request to those persons identified by the PUC as persons interested in the matter.

Subp. 2.

Approval of transfer.

The commission shall approve the transfer if the commission determines that the new permittee will comply with the conditions of the permit. The commission, in approving the transfer of a permit, may impose reasonable additional conditions in the permit as part of the approval. The commission may hold a public meeting to provide the public with an opportunity to comment on the request for the transfer prior to making a decision.

7854.1500 FEES.

Subpart 1.

Fee requirement.

An applicant for a site permit under Minnesota Statutes, section 216F.04, shall pay an application fee to the PUC. The purpose of the application fee is to cover actual costs necessarily and reasonably incurred in processing an application for a site permit, including, but not limited to, staff time, expenses for public notice and meetings, environmental review, administrative overhead, and legal expenses.

Subp. 2.

Determination of PUC budget.

Upon receipt of an application for a site permit, the commission shall estimate the costs the PUC expects to incur in processing the application and establish an estimated budget. If the applicant disagrees with the amount of the estimated budget, the applicant may request that the Public Utilities Commission determine the appropriate estimated budget.

Subp. 3.

Initial payment.

Upon determination of the estimated budget, the applicant shall pay at least 50 percent of the estimated budget to the PUC. The commission shall not process a permit application until the first portion of the fee is submitted. The PUC shall deposit all money received from an applicant for permit fees in a special account.

Subp. 4.

Periodic payments.

The remaining costs incurred by the PUC must be paid in periodic payments upon receipt of an invoice from the PUC. The PUC shall not make a final decision on a site permit application if any assessed fees are unpaid.

Subp. 5.

Final accounting.

At the end of the permitting process, including any judicial review of the commission's final decision, the PUC shall provide a final accounting to the applicant of the total cost of processing the permit application. The applicant may review all actual costs associated with processing an application and present objections to the commission. The applicant shall make the final payment within 30 days of notification, or the PUC shall refund any excess payments within 30 days of the final accounting.