SF 925

as introduced - 89th Legislature (2015 - 2016) Posted on 03/20/2015 01:29pm

A bill for an act
relating to energy; increasing the size limit of natural gas utilities not subject to
rate regulations; expanding the scope of energy improvement projects whose
costs can be repaid via a property tax surcharge; exempting propane tank
purchases from the sales tax; adding definitions; transferring unused funds;
requiring a report; appropriating money; amending Minnesota Statutes 2014,
sections 216B.02, by adding subdivisions; 216B.16, subdivision 12; 216B.2421,
subdivision 2; 216C.435, subdivision 5; 297A.67, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 216B.02, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Propane. new text end

new text begin "Propane" means a nonsynthetic gas made of short hydrocarbon
chains, containing primarily propane and butane, and stored in liquid form in specialized
tanks at moderate pressure. Propane is not liquefied natural gas or synthetic gas.
new text end

Sec. 2.

Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Propane storage facility. new text end

new text begin "Propane storage facility" means a facility
designed to store or capable of storing liquid-form propane in specialized tanks. Propane
storage facility does not include a facility designed to store liquefied natural gas, synthetic
gas, or anhydrous ammonia.
new text end

Sec. 3.

Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision
to read:

new text begin Subd. 6b. new text end

new text begin Synthetic gas. new text end

new text begin "Synthetic gas" means flammable gas created from (1)
gaseous, liquid, or solid hydrocarbons, or (2) other organic or inorganic matter. Synthetic
gas includes hydrogen or methane produced at a conversion plant, but does not include
propane.
new text end

Sec. 4.

Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:

Subd. 12.

Exemption for small gas utility franchise.

(a) A municipality may file
with the commission a resolution of its governing body requesting exemption from the
provisions of this section for a public utility that is under a franchise with the municipality
to supply natural, manufactured, or mixed gas and that serves 650 or fewer customers in
the municipality as long as the public utility serves no more than a total of deleted text begin 2,000 deleted text end new text begin 5,000 new text end
customers.

(b) The commission shall grant an exemption from this section for that portion of
a public utility's business that is requested by each municipality it serves. Furthermore,
the commission shall also grant the public utility an exemption from this section for any
service provided outside of a municipality's border that is considered by the commission
to be incidental. The public utility shall file with the commission and the department
all initial and subsequent changes in rates, tariffs, and contracts for service outside the
municipality at least 30 days in advance of implementation.

(c) However, the commission shall require the utility to adopt the commission's
policies and procedures governing disconnection during cold weather. The utility shall
annually submit a copy of its municipally approved rates to the commission.

(d) In all cases covered by this subdivision in which an exemption for service outside
of a municipality is granted, the commission may initiate an investigation under section
216B.17, on its own motion or upon complaint from a customer.

(e) If a municipality files with the commission a resolution of its governing body
rescinding the request for exemption, the commission shall regulate the public utility's
business in that municipality under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, 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 200 kilovolts or more and
greater than 1,500 feet in length;

(3) any high-voltage transmission line with a capacity of 100 kilovolts or more with
more than ten miles of its length in Minnesota or that crosses a state line;

(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 new text begin , excluding propane storage facilities new text end ;

(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.

Sec. 6.

Minnesota Statutes 2014, section 216C.435, subdivision 5, is amended to read:

Subd. 5.

Energy improvement.

"Energy improvement" means:

(1) any renovation or retrofitting of a building to improve energy efficiency that
is permanently affixed to the property and that results in a net reduction in energy
consumption without altering the principal source of energy;

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

(3) a renewable energy system attached to, installed within, or proximate to a
building that generates electrical or thermal energy from a renewable energy source new text begin ; or
new text end

new text begin (4) the installation of infrastructure, machinery, and appliances that will allow
natural gas to be used as a heating fuel on the premises of a building that was previously
not connected to a source of natural gas new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
to read:

new text begin Subd. 34. new text end

new text begin Propane tanks. new text end

new text begin (a) Propane tanks with a propane capacity of at least 100
gallons, and any valves and regulators necessary for use of the propane tank, are exempt
when purchased by the user of the tank. This exemption does not apply to the lease of a
propane tank from a propane supplier or dealer.
new text end

new text begin (b) This subdivision expires December 31, 2017.
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 sales and purchases made on or after that date.
new text end

Sec. 8. new text begin TRANSFER OF FUNDS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 216C.416, of the amounts transferred
to the solar thermal system rebate account in the special revenue fund in the state treasury
in calendar years 2014 and 2015, $300,000 shall be transferred to the commissioner of
commerce and deposited in the energy and conservation account in the special revenue
fund established in Minnesota Statutes, section 216B.241, subdivision 2a. The transferred
funds shall be used by the commissioner of commerce to provide energy conservation
programs to low-income persons who use propane as a heating fuel under Minnesota
Statutes, section 216B.241, subdivision 7. This is a onetime transfer.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text begin PREPURCHASING PROPANE; REPORT.
new text end

new text begin (a) The commissioner of commerce shall conduct a study of the operation of the
propane prepurchase program under Minnesota Statutes, section 216B.0951. The study
must address:
new text end

new text begin (1) the amount and price of propane prepurchased;
new text end

new text begin (2) the locations where prepurchased propane was stored and any costs of storage;
new text end

new text begin (3) a description of how the propane was distributed to customers, focusing on the
activities of the local agencies that deliver energy assistance and propane distributors;
new text end

new text begin (4) a description of any obstacles that interfered with the efficient operation of the
program, and suggestions for overcoming those obstacles; and
new text end

new text begin (5) an estimate of the savings that accrued to propane customers as a result of the
prepurchase program.
new text end

new text begin (b) By January 1 of 2016 and 2017, the commissioner of commerce shall submit a
report containing the information required under this section for the previous calendar year
to the chairs and ranking minority members of the senate and house of representatives
committees with primary responsibility for energy policy.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text begin APPROPRIATION.
new text end

new text begin (a) $5,000,000 in fiscal year 2015 and $5,000,000 in fiscal year 2016 are
appropriated from the general fund to the commissioner of commerce for the purpose of
prepurchasing propane under Minnesota Statutes, section 216B.0951. Notwithstanding
Minnesota Statutes, section 216B.0951, subdivision 1, the commissioner must expend all
of the funds before September 1 each year. Propane may not be distributed to customers
before October 1 each year.
new text end

new text begin (b) The commissioner shall reserve $5,000,000 each year from the federal funds
transferred to the state for use in the 2015-2016 and 2016-2017 heating seasons under
the Low-Income Home Energy Assistance Program and transfer those amounts to the
general fund.
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