SF 972

1st Unofficial Engrossment - 92nd Legislature (2021 - 2022) Posted on 01/12/2022 10:26am

A bill for an act
relating to commerce; establishing a biennial budget for Department of Commerce
and energy activities; modifying various provisions governing and administered
by the Department of Commerce; establishing a prescription drug affordability
board and related regulations; modifying various provisions governing insurance;
establishing a student loan borrower bill of rights; modifying and adding consumer
protections; modifying provisions governing collections agencies and debt buyers;
establishing and modifying energy conservation programs; establishing energy
transition programs; establishing programs to combat climate change; establishing
and modifying electric vehicle and solar energy programs; modifying other
provisions governing renewable energy and utility regulation; modifying various
fees and standards; making technical changes; establishing penalties; requiring
reports; appropriating money; amending Minnesota Statutes 2020, sections 13.712,
by adding a subdivision; 16B.86; 16B.87; 16C.135, subdivision 3; 16C.137,
subdivision 1; 45.305, subdivision 1, by adding a subdivision; 45.306, by adding
a subdivision; 45.33, subdivision 1, by adding a subdivision; 47.59, subdivision
2; 47.60, subdivision 2; 47.601, subdivisions 2, 6; 48.512, subdivisions 2, 3, 7;
53.04, subdivision 3a; 56.131, subdivision 1; 60A.092, subdivision 10a, by adding
a subdivision; 60A.0921, subdivision 2; 60A.14, subdivision 1; 60A.71, subdivision
7; 61A.245, subdivision 4; 62J.23, subdivision 2; 65B.15, subdivision 1; 65B.43,
subdivision 12; 65B.472, subdivision 1; 79.55, subdivision 10; 80G.06, subdivision
1; 82.57, subdivisions 1, 5; 82.62, subdivision 3; 82.81, subdivision 12; 82B.021,
subdivision 18, by adding subdivisions; 82B.03, by adding a subdivision; 82B.11,
subdivision 3; 82B.195, by adding a subdivision; 115B.40, subdivision 1; 115C.094;
116C.779, subdivision 1; 168.27, by adding a subdivision; 174.29, subdivision 1;
174.30, subdivisions 1, 10; 216B.096, subdivisions 2, 3; 216B.097, subdivisions
1, 2, 3; 216B.16, subdivisions 6, 13; 216B.164, subdivision 4, by adding a
subdivision; 216B.1641; 216B.1645, subdivisions 1, 2; 216B.1691, subdivisions
1, 2a, 2b, 2d, 2e, 2f, 3, 4, 5, 7, 9, 10, by adding subdivisions; 216B.2401; 216B.241,
subdivisions 1a, 1c, 1d, 1f, 1g, 2, 2b, 3, 5, 7, 8, by adding subdivisions; 216B.2412,
subdivision 3; 216B.2422, subdivisions 1, 2, 3, 4, 5, by adding subdivisions;
216B.2424, by adding subdivisions; 216B.243, subdivision 8; 216B.62, subdivision
3b; 216C.05, subdivision 2; 216E.01, subdivision 9a; 216E.03, subdivisions 7, 10;
216E.04, subdivision 2; 216F.012; 216F.04; 216H.02, subdivision 1; 221.031,
subdivision 3b; 256B.0625, subdivisions 10, 17; 308A.201, subdivision 12;
325E.21, by adding subdivisions; 325F.171, by adding a subdivision; 325F.172,
by adding a subdivision; 326B.106, subdivision 1; 332.31, subdivisions 3, 6, by
adding subdivisions; 332.311; 332.32; 332.33, subdivisions 1, 2, 5, 5a, 7, 8, by
adding a subdivision; 332.34; 332.345; 332.355; 332.37; 332.385; 332.40,
subdivision 3; 332.42, subdivisions 1, 2; 349.11; 349.12, subdivisions 12a, 12b,
12c; 386.375, subdivision 3; 514.972, subdivisions 4, 5; 514.973, subdivisions 3,
4; 514.974; 514.977; 515.07; 515B.2-103; 515B.3-102; proposing coding for new
law in Minnesota Statutes, chapters 16B; 60A; 62J; 62Q; 80G; 82B; 116J; 216B;
216C; 216F; 239; 325E; 325F; 332; 500; proposing coding for new law as
Minnesota Statutes, chapter 58B; repealing Minnesota Statutes 2020, sections
45.017; 45.306, subdivision 1; 60A.98; 60A.981; 60A.982; 115C.13; 216B.16,
subdivision 10; 216B.1691, subdivision 2; 216B.241, subdivisions 1, 1b, 2c, 4,
10; Laws 2017, chapter 5, section 1.

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

ARTICLE 1

COMMERCE 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 "2022" and "2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively.
"The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The biennium"
is fiscal years 2022 and 2023. If an appropriation in this act is enacted more than once in
the 2021 legislative session, the appropriation must be given effect only once.
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 2022 new text end		new text begin 2023 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 27,603,000 new text end

new text begin $ new text end

new text begin 26,920,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2022 new text end	new text begin 2023 new text end
new text begin General new text end	new text begin 24,267,000 new text end	new text begin 24,061,000 new text end
new text begin Special Revenue new text end	new text begin 2,570,000 new text end	new text begin 2,093,000 new text end
new text begin Workers' Compensation Fund new text end	new text begin 766,000 new text end	new text begin 766,000 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 Financial Institutions new text end

new text begin 1,923,000 new text end

new text begin 1,941,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,923,000 new text end	new text begin 1,941,000 new text end

new text begin (a) $400,000 each year is for a grant to Prepare
and Prosper to develop, market, evaluate, and
distribute a financial services inclusion
program that (1) assists low-income and
financially underserved populations to build
savings and strengthen credit, and (2) provides
services to assist low-income and financially
underserved populations to become more
financially stable and secure. Money
remaining after the first year is available for
the second year.
new text end

new text begin (b) $254,000 each year is to administer the
requirements of Minnesota Statutes, chapter
58B.
new text end

new text begin Subd. 3. new text end new text begin Administrative Services new text end

new text begin 9,346,000 new text end

new text begin 8,821,000 new text end

new text begin (a) $392,000 in the first year and $401,000 in
the second year are for additional compliance
efforts with unclaimed property. The
commissioner may issue contracts for these
services.
new text end

new text begin (b) $5,000 each year is for Real Estate
Appraisal Advisory Board compensation
pursuant to Minnesota Statutes, section
82B.073, subdivision 2a.
new text end

new text begin (c) $353,000 each year is for system
modernization and cybersecurity upgrades for
the unclaimed property program.
new text end

new text begin (d) $564,000 each year is for additional
operations of the unclaimed property program.
new text end

new text begin (e) $832,000 in the first year and $208,000 in
the second year are for IT system
modernization. The base in fiscal year 2024
and beyond is $0.
new text end

new text begin Subd. 4. new text end new text begin Telecommunications new text end

new text begin 3,443,000 new text end

new text begin 3,183,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,073,000 new text end	new text begin 1,090,000 new text end
new text begin Special Revenue new text end	new text begin 2,370,000 new text end	new text begin 2,093,000 new text end

new text begin $2,370,000 in the first year and $2,093,000 in
the second year are from the
telecommunications access Minnesota fund
account in the special revenue fund for the
following transfers:
new text end

new text begin (1) $1,620,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans. This transfer
is subject to Minnesota Statutes, section
16A.281;
new text end

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

new text begin (3) $410,000 in the first year and $133,000 in
the second year are to the Legislative
Coordinating Commission for captioning
legislative coverage. This transfer is subject
to Minnesota Statutes, section 16A.281.
Notwithstanding any law to the contrary, the
commissioner of management and budget must
determine whether $310,000 of the
expenditures authorized under this clause for
the first year are eligible uses of federal
funding received under the Coronavirus State
Fiscal Recovery Fund or any other federal
funds received by the state under the American
Rescue Plan Act, Public Law 117-2. If the
commissioner of management and budget
determines an expenditure is eligible for
funding under Public Law 117-2, the amount
of the eligible expenditure is appropriated
from the account where the federal funds have
been deposited and the corresponding
Telecommunications Access Minnesota Fund
amounts appropriated under this clause cancel
to the Telecommunications Access Minnesota
Fund; and
new text end

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

new text begin Subd. 5. new text end new text begin Enforcement new text end

new text begin 6,231,000 new text end

new text begin 5,632,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 5,825,000 new text end	new text begin 5,426,000 new text end
new text begin Workers' Compensation new text end	new text begin 206,000 new text end	new text begin 206,000 new text end
new text begin Special Revenue Fund new text end	new text begin 200,000 new text end	new text begin -0- new text end

new text begin (a) $283,000 in the first year and $286,000 in
the second year are for health care
enforcement.
new text end

new text begin (b) $201,000 each year is from the workers'
compensation fund.
new text end

new text begin (c) $5,000 each year is from the workers'
compensation fund for insurance fraud
specialist salary increases.
new text end

new text begin (d) Notwithstanding Minnesota Statutes,
section 297I.11, subdivision 2, $200,000 in
the first year is from the auto theft prevention
account in the special revenue fund for the
catalytic converter theft prevention pilot
project. This balance does not cancel but is
available in the second year.
new text end

new text begin (e) $190,000 in the first year is from the
general fund for the catalytic converter theft
prevention pilot project. This balance does not
cancel but is available in the second year. The
general fund base for the catalytic converter
theft prevention pilot project in fiscal year
2024 and fiscal year 2025 is $92,000.
new text end

new text begin (f) $300,000 in the first year is transferred
from the consumer education account in the
special revenue fund to the general fund.
$300,000 in the first year is to the
commissioner of education to issue grants of
$150,000 each year to the Minnesota Council
on Economic Education. This balance does
not cancel but is available in the second year.
new text end

new text begin Subd. 6. new text end new text begin Insurance new text end

new text begin 6,660,000 new text end

new text begin 7,343,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,100,000 new text end	new text begin 6,783,000 new text end
new text begin Workers' Compensation new text end	new text begin 560,000 new text end	new text begin 560,000 new text end

new text begin (a) $656,000 in the first year and $671,000 in
the second year are for health insurance rate
review staffing.
new text end

new text begin (b) $421,000 in the first year and $431,000 in
the second year are for actuarial work to
prepare for implementation of principle-based
reserves.
new text end

new text begin (c) $30,000 in the first year is to pay for two
years of membership dues for Minnesota to
the National Conference of Insurance
Legislators.
new text end

new text begin (d) $428,000 in the first year and $432,000 in
the second year are for licensing activities
under Minnesota Statutes, chapter 62W. Of
this amount, $246,000 each year must be used
only for staff costs associated with two
enforcement investigators to enforce
Minnesota Statutes, chapter 62W.
new text end

new text begin (e) $560,000 each year is from the workers'
compensation fund.
new text end

new text begin (f) $197,000 in the first year is to establish the
Prescription Drug Affordability Board under
Minnesota Statutes, section 62J.87. Following
the first meeting of the board and prior to June
30, 2022, the commissioner shall transfer any
funds remaining from this appropriation to the
board.
new text end

new text begin (g) $358,000 in the second year is to the
Prescription Drug Affordability Board
established under Minnesota Statutes, section
62J.87, to implement the Prescription Drug
Affordability Act.
new text end

new text begin (h) $456,000 in the second year is to the
attorney general's office to enforce the
Prescription Drug Affordability Act.
new text end

Sec. 3. new text begin CANCELLATION; FISCAL YEAR 2021.
new text end

new text begin $1,220,000 of the fiscal year 2021 general fund appropriation under Laws 2019, First
Special Session chapter 7, article 1, section 6, subdivision 3, is canceled.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin DEPARTMENT OF COMMERCE; APPROPRIATION.
new text end

new text begin (a) $4,000 in fiscal year 2021 is appropriated from the workers' compensation fund to
the commissioner of commerce for insurance fraud specialist salary increases.
new text end

new text begin (b) $97,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of commerce for enforcement.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin TRANSFER.
new text end

new text begin Notwithstanding any law to the contrary, in fiscal year 2024 the Minnesota
Comprehensive Health Association shall transfer the remaining balance from the premium
security plan account in the special revenue fund to the commissioner of commerce. Any
amount transferred to the commissioner of commerce shall be deposited in the general fund.
new text end

ARTICLE 2

PRESCRIPTION DRUG AFFORDABILITY BOARD

Section 1.

new text begin [62J.85] CITATION.
new text end

new text begin Sections 62J.85 to 62J.95 may be cited as the "Prescription Drug Affordability Act."
new text end

Sec. 2.

new text begin [62J.86] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of sections 62J.85 to 62J.95, the following
terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Advisory council. new text end

new text begin "Advisory council" means the Prescription Drug Affordability
Advisory Council established under section 62J.88.
new text end

new text begin Subd. 3. new text end

new text begin Biologic. new text end

new text begin "Biologic" means a drug that is produced or distributed in accordance
with a biologics license application approved under Code of Federal Regulations, title 42,
section 447.502.
new text end

new text begin Subd. 4. new text end

new text begin Biosimilar. new text end

new text begin "Biosimilar" has the meaning given in section 62J.84, subdivision
2, paragraph (b).
new text end

new text begin Subd. 5. new text end

new text begin Board. new text end

new text begin "Board" means the Prescription Drug Affordability Board established
under section 62J.87.
new text end

new text begin Subd. 6. new text end

new text begin Brand name drug. new text end

new text begin "Brand name drug" has the meaning given in section 62J.84,
subdivision 2, paragraph (c).
new text end

new text begin Subd. 7. new text end

new text begin Generic drug. new text end

new text begin "Generic drug" has the meaning given in section 62J.84,
subdivision 2, paragraph (e).
new text end

new text begin Subd. 8. new text end

new text begin Group purchaser. new text end

new text begin "Group purchaser" has the meaning given in section 62J.03,
subdivision 6, and includes pharmacy benefit managers, as defined in section 62W.02,
subdivision 15.
new text end

new text begin Subd. 9. new text end

new text begin Manufacturer. new text end

new text begin "Manufacturer" means an entity that:
new text end

new text begin (1) engages in the manufacture of a prescription drug product or enters into a lease with
another manufacturer to market and distribute a prescription drug product under the entity's
own name; and
new text end

new text begin (2) sets or changes the wholesale acquisition cost of the prescription drug product it
manufacturers or markets.
new text end

new text begin Subd. 10. new text end

new text begin Prescription drug product. new text end

new text begin "Prescription drug product" means a brand name
drug, a generic drug, a biologic, or a biosimilar.
new text end

new text begin Subd. 11. new text end

new text begin Wholesale acquisition cost or WAC. new text end

new text begin "Wholesale acquisition cost" or "WAC"
has the meaning given in United States Code, title 42, section 1395W-3a(c)(6)(B).
new text end

Sec. 3.

new text begin [62J.87] PRESCRIPTION DRUG AFFORDABILITY BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce shall establish the
Prescription Drug Affordability Board, which shall be governed as a board under section
15.012, paragraph (a), to protect consumers, state and local governments, health plan
companies, providers, pharmacies, and other health care system stakeholders from
unaffordable costs of certain prescription drugs.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Prescription Drug Affordability Board consists of nine
members appointed as follows:
new text end

new text begin (1) seven voting members appointed by the governor;
new text end

new text begin (2) one nonvoting member appointed by the majority leader of the senate; and
new text end

new text begin (3) one nonvoting member appointed by the speaker of the house.
new text end

new text begin (b) All members appointed must have knowledge and demonstrated expertise in
pharmaceutical economics and finance or health care economics and finance. A member
must not be an employee of, a board member of, or a consultant to a manufacturer or trade
association for manufacturers or a pharmacy benefit manager or trade association for
pharmacy benefit managers.
new text end

new text begin (c) Initial appointments shall be made by January 1, 2022.
new text end

new text begin Subd. 3. new text end

new text begin Terms. new text end

new text begin (a) Board appointees shall serve four-year terms, except that initial
appointees shall serve staggered terms of two, three, or four years as determined by lot by
the secretary of state. A board member shall serve no more than two consecutive terms.
new text end

new text begin (b) A board member may resign at any time by giving written notice to the board.
new text end

new text begin Subd. 4. new text end

new text begin Chair; other officers. new text end

new text begin (a) The governor shall designate an acting chair from
the members appointed by the governor. The acting chair shall convene the first meeting
of the board.
new text end

new text begin (b) The board shall elect a chair to replace the acting chair at the first meeting of the
board by a majority of the members. The chair shall serve for one year.
new text end

new text begin (c) The board shall elect a vice-chair and other officers from the board's membership as
the board deems necessary.
new text end

new text begin Subd. 5. new text end

new text begin Staff; technical assistance. new text end

new text begin (a) The board shall hire an executive director and
other staff, who shall serve in the unclassified service. The executive director must have
knowledge and demonstrated expertise in pharmacoeconomics, pharmacology, health policy,
health services research, medicine, or a related field or discipline. The board may employ
or contract for professional and technical assistance as the board deems necessary to perform
the board's duties.
new text end

new text begin (b) The attorney general shall provide legal services to the board.
new text end

new text begin Subd. 6. new text end

new text begin Compensation. new text end

new text begin The board members shall not receive compensation but may
receive reimbursement for expenses as authorized under section 15.059, subdivision 3.
new text end

new text begin Subd. 7. new text end

new text begin Meetings. new text end

new text begin (a) Meetings of the board are subject to chapter 13D. The board shall
meet publicly at least every three months to review prescription drug product information
submitted to the board under section 62J.90. If there are no pending submissions, the chair
of the board may cancel or postpone the required meeting. The board may meet in closed
session when reviewing proprietary information, as determined under the standards developed
in accordance with section 62J.91, subdivision 4.
new text end

new text begin (b) The board shall announce each public meeting at least two weeks prior to the
scheduled date of the meeting. Any materials for the meeting shall be made public at least
one week prior to the scheduled date of the meeting.
new text end

new text begin (c) At each public meeting, the board shall provide the opportunity for comments from
the public, including the opportunity for written comments to be submitted to the board
prior to a decision by the board.
new text end

Sec. 4.

new text begin [62J.88] PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The governor shall appoint a 12-member stakeholder
advisory council to provide advice to the board on drug cost issues and to represent
stakeholders' views. The members of the advisory council shall be appointed based on the
members' knowledge and demonstrated expertise in one or more of the following areas: the
pharmaceutical business; practice of medicine; patient perspectives; health care cost trends
and drivers; clinical and health services research; and the health care marketplace.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The council's membership shall consist of the following:
new text end

new text begin (1) two members representing patients and health care consumers;
new text end

new text begin (2) two members representing health care providers;
new text end

new text begin (3) one member representing health plan companies;
new text end

new text begin (4) two members representing employers, with one member representing large employers
and one member representing small employers;
new text end

new text begin (5) one member representing government employee benefit plans;
new text end

new text begin (6) one member representing pharmaceutical manufacturers;
new text end

new text begin (7) one member who is a health services clinical researcher;
new text end

new text begin (8) one member who is a pharmacologist; and
new text end

new text begin (9) one member with expertise in health economics representing the commissioner of
health.
new text end

new text begin Subd. 3. new text end

new text begin Terms. new text end

new text begin (a) The initial appointments to the advisory council shall be made by
January 1, 2022. The initial appointed advisory council members shall serve staggered terms
of two, three, or four years determined by lot by the secretary of state. Following the initial
appointments, the advisory council members shall serve four-year terms.
new text end

new text begin (b) Removal and vacancies of advisory council members is governed by section 15.059.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin Advisory council members may be compensated according to
section 15.059.
new text end

new text begin Subd. 5. new text end

new text begin Meetings. new text end

new text begin Meetings of the advisory council are subject to chapter 13D. The
advisory council shall meet publicly at least every three months to advise the board on drug
cost issues related to the prescription drug product information submitted to the board under
section 62J.90.
new text end

new text begin Subd. 6. new text end

new text begin Exemption. new text end

new text begin Notwithstanding section 15.059, the advisory council does not
expire.
new text end

Sec. 5.

new text begin [62J.89] CONFLICTS OF INTEREST.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "conflict of interest" means a
financial or personal association that has the potential to bias or have the appearance of
biasing a person's decisions in matters related to the board, the advisory council, or in the
conduct of the board's or council's activities. A conflict of interest includes any instance in
which a person, a person's immediate family member, including a spouse, parent, child, or
other legal dependent, or an in-law of any of the preceding individuals has received or could
receive a direct or indirect financial benefit of any amount deriving from the result or findings
of a decision or determination of the board. For purposes of this section, a financial benefit
includes honoraria, fees, stock, the value of the member's, immediate family member's, or
in-law's stock holdings, and any direct financial benefit deriving from the finding of a review
conducted under sections 62J.85 to 62J.95. Ownership of securities is not a conflict of
interest if the securities are: (1) part of a diversified mutual or exchange traded fund; or (2)
in a tax-deferred or tax-exempt retirement account that is administered by an independent
trustee.
new text end

new text begin Subd. 2. new text end

new text begin General. new text end

new text begin (a) Prior to the acceptance of an appointment or employment, or prior
to entering into a contractual agreement, a board or advisory council member, board staff
member, or third-party contractor must disclose to the appointing authority or the board
any conflicts of interest. The information disclosed shall include the type, nature, and
magnitude of the interests involved.
new text end

new text begin (b) A board member, board staff member, or third-party contractor with a conflict of
interest with regard to any prescription drug product under review must recuse themselves
from any discussion, review, decision, or determination made by the board relating to the
prescription drug product.
new text end

new text begin (c) Any conflict of interest must be disclosed in advance of the first meeting after the
conflict is identified or within five days after the conflict is identified, whichever is earlier.
new text end

new text begin Subd. 3. new text end

new text begin Prohibitions. new text end

new text begin Board members, board staff, or third-party contractors are
prohibited from accepting gifts, bequeaths, or donations of services or property that raise
the specter of a conflict of interest or have the appearance of injecting bias into the activities
of the board.
new text end

Sec. 6.

new text begin [62J.90] PRESCRIPTION DRUG PRICE INFORMATION; DECISION TO
CONDUCT COST REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Drug price information from the commissioner of health and other
sources. new text end

new text begin (a) The commissioner of health shall provide to the board the information reported
to the commissioner by drug manufacturers under section 62J.84, subdivisions 3, 4, and 5.
The commissioner shall provide this information to the board within 30 days of the date the
information is received from drug manufacturers.
new text end

new text begin (b) The board shall subscribe to one or more prescription drug pricing files, such as
Medispan or FirstDatabank, or as otherwise determined by the board.
new text end

new text begin Subd. 2. new text end

new text begin Identification of certain prescription drug products. new text end

new text begin (a) The board, in
consultation with the advisory council, shall identify the following prescription drug products:
new text end

new text begin (1) brand name drugs or biologics for which the WAC increases by more than ten percent
or by more than $10,000 during any 12-month period or course of treatment if less than 12
months, after adjusting for changes in the Consumer Price Index (CPI);
new text end

new text begin (2) brand name drugs or biologics that have been introduced at a WAC of $30,000 or
more per calendar year or per course of treatment;
new text end

new text begin (3) biosimilar drugs that have been introduced at a WAC that is not at least 15 percent
lower than the referenced brand name biologic at the time the biosimilar is introduced; and
new text end

new text begin (4) generic drugs for which the WAC:
new text end

new text begin (i) is $100 or more, after adjusting for changes in the Consumer Price Index (CPI), for:
new text end

new text begin (A) a 30-day supply lasting a patient for a period of 30 consecutive days based on the
recommended dosage approved for labeling by the United States Food and Drug
Administration (FDA);
new text end

new text begin (B) a supply lasting a patient for fewer than 30 days based on recommended dosage
approved for labeling by the FDA; or
new text end

new text begin (C) one unit of the drug if the labeling approved by the FDA does not recommend a
finite dosage; and
new text end

new text begin (ii) is increased by 200 percent or more during the immediate preceding 12-month period,
as determined by the difference between the resulting WAC and the average of the WAC
reported over the preceding 12 months, after adjusting for changes in the Consumer Price
Index (CPI).
new text end

new text begin (b) The board, in consultation with the advisory council, shall identify prescription drug
products not described in paragraph (a) that may impose costs that create significant
affordability challenges for the state health care system or for patients, including but not
limited to drugs to address public health emergencies.
new text end

new text begin (c) The board shall make available to the public the names and related price information
of the prescription drug products identified under this subdivision, with the exception of
information determined by the board to be proprietary under the standards developed by
the board under section 62J.91, subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Determination to proceed with review. new text end

new text begin (a) The board may initiate a cost
review of a prescription drug product identified by the board under this section.
new text end

new text begin (b) The board shall consider requests by the public for the board to proceed with a cost
review of any prescription drug product identified under this section.
new text end

new text begin (c) If there is no consensus among the members of the board with respect to whether or
not to initiate a cost review of a prescription drug product, any member of the board may
request a vote to determine whether or not to review the cost of the prescription drug product.
new text end

Sec. 7.

new text begin [62J.91] PRESCRIPTION DRUG PRODUCT REVIEWS.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin Once a decision by the board has been made to proceed with
a cost review of a prescription drug product, the board shall conduct the review and make
a determination as to whether appropriate utilization of the prescription drug under review,
based on utilization that is consistent with the United States Food and Drug Administration
(FDA) label or standard medical practice, has led or will lead to affordability challenges
for the state health care system or for patients.
new text end

new text begin Subd. 2. new text end

new text begin Review considerations. new text end

new text begin In reviewing the cost of a prescription drug product,
the board may consider the following factors:
new text end

new text begin (1) the price at which the prescription drug product has been and will be sold in the state;
new text end

new text begin (2) the average monetary price concession, discount, or rebate the manufacturer provides
to a group purchaser in this state as reported by the manufacturer and the group purchaser
expressed as a percent of the WAC for prescription drug product under review;
new text end

new text begin (3) the price at which therapeutic alternatives have been or will be sold in the state;
new text end

new text begin (4) the average monetary price concession, discount, or rebate the manufacturer provides
or is expected to provide to a group purchaser in the state or is expected to provide to group
purchasers in the state for therapeutic alternatives;
new text end

new text begin (5) the cost to group purchasers based on patient access consistent with the United States
Food and Drug Administration (FDA) labeled indications;
new text end

new text begin (6) the impact on patient access resulting from the cost of the prescription drug product
relative to insurance benefit design;
new text end

new text begin (7) the current or expected dollar value of drug-specific patient access programs that are
supported by manufacturers;
new text end

new text begin (8) the relative financial impacts to health, medical, or other social services costs that
can be quantified and compared to baseline effects of existing therapeutic alternatives;
new text end

new text begin (9) the average patient co-pay or other cost-sharing for the prescription drug product in
the state;
new text end

new text begin (10) any information a manufacturer chooses to provide; and
new text end

new text begin (11) any other factors as determined by the board.
new text end

new text begin Subd. 3. new text end

new text begin Further review factors. new text end

new text begin If, after considering the factors described in subdivision
2, the board is unable to determine whether a prescription drug product will produce or has
produced an affordability challenge, the board may consider:
new text end

new text begin (1) manufacturer research and development costs, as indicated on the manufacturer's
federal tax filing for the most recent tax year in proportion to the manufacturer's sales in
the state;
new text end

new text begin (2) that portion of direct-to-consumer marketing costs eligible for favorable federal tax
treatment in the most recent tax year that are specific to the prescription drug product under
review and that are multiplied by the ratio of total manufacturer in-state sales to total
manufacturer sales in the United States for the product under review;
new text end

new text begin (3) gross and net manufacturer revenues for the most recent tax year;
new text end

new text begin (4) any information and research related to the manufacturer's selection of the introductory
price or price increase, including but not limited to:
new text end

new text begin (i) life cycle management;
new text end

new text begin (ii) market competition and context; and
new text end

new text begin (iii) projected revenue; and
new text end

new text begin (5) any additional factors determined by the board to be relevant.
new text end

new text begin Subd. 4. new text end

new text begin Public data; proprietary information. new text end

new text begin (a) Any submission made to the board
related to a drug cost review shall be made available to the public, with the exception of
information determined by the board to be proprietary.
new text end

new text begin (b) The board shall establish the standards for the information to be considered proprietary
under paragraph (a) and section 62J.90, subdivision 2, including standards for heightened
consideration of proprietary information for submissions for a cost review of a drug that is
not yet approved by the FDA.
new text end

new text begin (c) Prior to the board establishing the standards under paragraph (b), the public shall be
provided notice and the opportunity to submit comments.
new text end

Sec. 8.

new text begin [62J.92] DETERMINATIONS; COMPLIANCE; REMEDIES.
new text end

new text begin Subdivision 1. new text end

new text begin Upper payment limit. new text end

new text begin (a) In the event the board finds that the spending
on a prescription drug product reviewed under section 62J.91 creates an affordability
challenge for the state health care system or for patients, the board shall establish an upper
payment limit after considering:
new text end

new text begin (1) the cost to administer the drug;
new text end

new text begin (2) the cost to deliver the drug to consumers;
new text end

new text begin (3) the range of prices at which the drug is sold in the United States according to one or
more pricing files accessed under section 62J.90, subdivision 1, and the range at which
pharmacies are reimbursed in Canada; and
new text end

new text begin (4) any other relevant pricing and administrative cost information for the drug.
new text end

new text begin (b) The upper payment limit shall apply to all public and private purchases, payments,
and payer reimbursements for the prescription drug product that is intended for individuals
in the state in person, by mail, or by other means.
new text end

new text begin Subd. 2. new text end

new text begin Noncompliance. new text end

new text begin (a) The failure of an entity to comply with an upper payment
limit established by the board under this section shall be referred to the Office of the Attorney
General.
new text end

new text begin (b) If the Office of the Attorney General finds that an entity was noncompliant with the
upper payment limit requirements, the attorney general may pursue remedies consistent
with chapter 8 or appropriate criminal charges if there is evidence of intentional profiteering.
new text end

new text begin (c) An entity who obtains price concessions from a drug manufacturer that result in a
lower net cost to the stakeholder than the upper payment limit established by the board shall
not be considered to be in noncompliance.
new text end

new text begin (d) The Office of the Attorney General may provide guidance to stakeholders concerning
activities that could be considered noncompliant.
new text end

new text begin Subd. 3. new text end

new text begin Appeals. new text end

new text begin (a) A person affected by a decision of the board may request an appeal
of the board's decision within 30 days of the date of the decision. The board shall hear the
appeal and render a decision within 60 days of the hearing.
new text end

new text begin (b) All appeal decisions are subject to judicial review in accordance with chapter 14.
new text end

Sec. 9.

new text begin [62J.93] REPORTS.
new text end

new text begin Beginning March 1, 2022, and each March 1 thereafter, the board shall submit a report
to the governor and legislature on general price trends for prescription drug products and
the number of prescription drug products that were subject to the board's cost review and
analysis, including the result of any analysis as well as the number and disposition of appeals
and judicial reviews.
new text end

Sec. 10.

new text begin [62J.94] ERISA PLANS AND MEDICARE DRUG PLANS.
new text end

new text begin (a) Nothing in sections 62J.85 to 62J.95 shall be construed to require ERISA plans or
Medicare Part D plans to comply with decisions of the board, but are free to choose to
exceed the upper payment limit established by the board under section 62J.92.
new text end

new text begin (b) Providers who dispense and administer drugs in the state must bill all payers no more
than the upper payment limit without regard to whether or not an ERISA plan or Medicare
Part D plan chooses to reimburse the provider in an amount greater than the upper payment
limit established by the board.
new text end

new text begin (c) For purposes of this section, an ERISA plan or group health plan is an employee
welfare benefit plan established by or maintained by an employer or an employee
organization, or both, that provides employer sponsored health coverage to employees and
the employee's dependents and is subject to the Employee Retirement Income Security Act
of 1974 (ERISA).
new text end

Sec. 11.

new text begin [62J.95] SEVERABILITY.
new text end

new text begin If any provision of sections 62J.85 to 62J.94 or the application of sections 62J.85 to
62J.94 to any person or circumstance is held invalid for any reason in a court of competent
jurisdiction, the invalidity does not affect other provisions or any other application of sections
62J.85 to 62J.94 that can be given effect without the invalid provision or application.
new text end

ARTICLE 3

INSURANCE

Section 1.

Minnesota Statutes 2020, section 60A.092, subdivision 10a, is amended to read:

Subd. 10a.

Other jurisdictions.

The reinsurance is ceded and credit allowed to an
assuming insurer not meeting the requirements of subdivision 2, 3, 4, 5, deleted text begin or deleted text end 10, new text begin or 10b, new text end but
only with respect to the insurance of risks located in jurisdictions where the reinsurance is
required by applicable law or regulation of that jurisdiction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022, and applies to reinsurance
contracts entered into or renewed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2020, section 60A.092, is amended by adding a subdivision to
read:

new text begin Subd. 10b. new text end

new text begin Credit allowed; reciprocal jurisdiction. new text end

new text begin (a) Credit shall be allowed when
the reinsurance is ceded to an assuming insurer meeting each of the following conditions:
new text end

new text begin (1) the assuming insurer must have its head office in or be domiciled in, as applicable,
and be licensed in a reciprocal jurisdiction. A "reciprocal jurisdiction" means a jurisdiction
that is:
new text end

new text begin (i) a non-United States jurisdiction that is subject to an in-force covered agreement with
the United States, each within its legal authority, or, in the case of a covered agreement
between the United States and the European Union, is a member state of the European
Union. For purposes of this subdivision, a "covered agreement" means an agreement entered
into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, United
States Code, title 31, sections 313 and 314, that is currently in effect or in a period of
provisional application and addresses the elimination, under specified conditions, of collateral
requirements as a condition for entering into any reinsurance agreement with a ceding insurer
domiciled in Minnesota or for allowing the ceding insurer to recognize credit for reinsurance;
new text end

new text begin (ii) a United States jurisdiction that meets the requirements for accreditation under the
National Association of Insurance Commissioners (NAIC) financial standards and
accreditation program; or
new text end

new text begin (iii) a qualified jurisdiction, as determined by the commissioner, which is not otherwise
described in item (i) or (ii) and which meets the following additional requirements, consistent
with the terms and conditions of in-force covered agreements:
new text end

new text begin (A) provides that an insurer which has its head office or is domiciled in such qualified
jurisdiction shall receive credit for reinsurance ceded to a United States-domiciled assuming
insurer in the same manner as credit for reinsurance is received for reinsurance assumed by
insurers domiciled in such qualified jurisdiction;
new text end

new text begin (B) does not require a United States-domiciled assuming insurer to establish or maintain
a local presence as a condition for entering into a reinsurance agreement with any ceding
insurer subject to regulation by the non-United States jurisdiction or as a condition to allow
the ceding insurer to recognize credit for such reinsurance;
new text end

new text begin (C) recognizes the United States state regulatory approach to group supervision and
group capital, by providing written confirmation by a competent regulatory authority, in
such qualified jurisdiction, that insurers and insurance groups that are domiciled or maintain
their headquarters in this state or another jurisdiction accredited by the NAIC shall be subject
only to worldwide prudential insurance group supervision including worldwide group
governance, solvency and capital, and reporting, as applicable, by the commissioner or the
commissioner of the domiciliary state and will not be subject to group supervision at the
level of the worldwide parent undertaking of the insurance or reinsurance group by the
qualified jurisdiction; and
new text end

new text begin (D) provides written confirmation by a competent regulatory authority in such qualified
jurisdiction that information regarding insurers and their parent, subsidiary, or affiliated
entities, if applicable, shall be provided to the commissioner in accordance with a
memorandum of understanding or similar document between the commissioner and such
qualified jurisdiction, including but not limited to the International Association of Insurance
Supervisors Multilateral Memorandum of Understanding or other multilateral memoranda
of understanding coordinated by the NAIC;
new text end

new text begin (2) the assuming insurer must have and maintain, on an ongoing basis, minimum capital
and surplus, or its equivalent, calculated according to the methodology of its domiciliary
jurisdiction, on at least an annual basis as of the preceding December 31 or on the date
otherwise statutorily reported to the reciprocal jurisdiction, in the following amounts:
new text end

new text begin (i) no less than $250,000,000; or
new text end

new text begin (ii) if the assuming insurer is an association, including incorporated and individual
unincorporated underwriters:
new text end

new text begin (A) minimum capital and surplus equivalents, net of liabilities, or own funds of the
equivalent of at least $250,000,000; and
new text end

new text begin (B) a central fund containing a balance of the equivalent of at least $250,000,000;
new text end

new text begin (3) the assuming insurer must have and maintain, on an ongoing basis, a minimum
solvency or capital ratio, as applicable, as follows:
new text end

new text begin (i) if the assuming insurer has its head office or is domiciled in a reciprocal jurisdiction
defined in clause (1), item (i), the ratio specified in the applicable covered agreement;
new text end

new text begin (ii) if the assuming insurer is domiciled in a reciprocal jurisdiction defined in clause (1),
item (ii), a risk-based capital ratio of 300 percent of the authorized control level, calculated
in accordance with the formula developed by the NAIC; or
new text end

new text begin (iii) if the assuming insurer is domiciled in a Reciprocal Jurisdiction defined in clause
(1), item (iii), after consultation with the reciprocal jurisdiction and considering any
recommendations published through the NAIC Committee Process, such solvency or capital
ratio as the commissioner determines to be an effective measure of solvency;
new text end

new text begin (4) the assuming insurer must agree and provide adequate assurance in the form of a
properly executed Form AR-1, Form CR-1, and Form RJ-1 of its agreement to the following:
new text end

new text begin (i) the assuming insurer must provide prompt written notice and explanation to the
commissioner if it falls below the minimum requirements set forth in clause (2) or (3), or
if any regulatory action is taken against the assuming insurer for serious noncompliance
with applicable law;
new text end

new text begin (ii) the assuming insurer must consent in writing to the jurisdiction of the courts of
Minnesota and to the appointment of the commissioner as agent for service of process. The
commissioner may require that consent for service of process be provided to the
commissioner and included in each reinsurance agreement. Nothing in this subdivision shall
limit or in any way alter the capacity of parties to a reinsurance agreement to agree to
alternative dispute resolution mechanisms, except to the extent such agreements are
unenforceable under applicable insolvency or delinquency laws;
new text end

new text begin (iii) the assuming insurer must consent in writing to pay all final judgments, wherever
enforcement is sought, obtained by a ceding insurer or its legal successor, that have been
declared enforceable in the jurisdiction where the judgment was obtained;
new text end

new text begin (iv) each reinsurance agreement must include a provision requiring the assuming insurer
to provide security in an amount equal to 100 percent of the assuming insurer's liabilities
attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists
enforcement of a final judgment that is enforceable under the law of the jurisdiction in which
it was obtained or a properly enforceable arbitration award, whether obtained by the ceding
insurer or by its legal successor on behalf of its resolution estate;
new text end

new text begin (v) the assuming insurer must confirm that it is not presently participating in any solvent
scheme of arrangement which involves this state's ceding insurers, and agree to notify the
ceding insurer and the commissioner and to provide security in an amount equal to 100
percent of the assuming insurer's liabilities to the ceding insurer, should the assuming insurer
enter into such a solvent scheme of arrangement. The security shall be in a form consistent
with sections 60A.092, subdivision 10, 60A.093, 60A.096, and 60A.097. For purposes of
this section, the term "solvent scheme of arrangement" means a foreign or alien statutory
or regulatory compromise procedure subject to requisite majority creditor approval and
judicial sanction in the assuming insurer's home jurisdiction either to finally commute
liabilities of duly noticed classed members or creditors of a solvent debtor, or to reorganize
or restructure the debts and obligations of a solvent debtor on a final basis, and which may
be subject to judicial recognition and enforcement of the arrangement by a governing
authority outside the ceding insurer's home jurisdiction; and
new text end

new text begin (vi) the assuming insurer must agree in writing to meet the applicable information filing
requirements set forth in clause (5);
new text end

new text begin (5) the assuming insurer or its legal successor must provide, if requested by the
commissioner, on behalf of itself and any legal predecessors, the following documentation
to the commissioner:
new text end

new text begin (i) for the two years preceding entry into the reinsurance agreement and on an annual
basis thereafter, the assuming insurer's annual audited financial statements, in accordance
with the applicable law of the jurisdiction of its head office or domiciliary jurisdiction, as
applicable, including the external audit report;
new text end

new text begin (ii) for the two years preceding entry into the reinsurance agreement, the solvency and
financial condition report or actuarial opinion, if filed with the assuming insurer's supervisor;
new text end

new text begin (iii) prior to entry into the reinsurance agreement and not more than semiannually
thereafter, an updated list of all disputed and overdue reinsurance claims outstanding for
90 days or more, regarding reinsurance assumed from ceding insurers domiciled in the
United States; and
new text end

new text begin (iv) prior to entry into the reinsurance agreement and not more than semiannually
thereafter, information regarding the assuming insurer's assumed reinsurance by ceding
insurer, ceded reinsurance by the assuming insurer, and reinsurance recoverable on paid
and unpaid losses by the assuming insurer to allow for the evaluation of the criteria set forth
in clause (6);
new text end

new text begin (6) the assuming insurer must maintain a practice of prompt payment of claims under
reinsurance agreements. The lack of prompt payment will be evidenced if any of the
following criteria is met:
new text end

new text begin (i) more than 15 percent of the reinsurance recoverables from the assuming insurer are
overdue and in dispute as reported to the commissioner;
new text end

new text begin (ii) more than 15 percent of the assuming insurer's ceding insurers or reinsurers have
overdue reinsurance recoverable on paid losses of 90 days or more which are not in dispute
and which exceed for each ceding insurer $100,000, or as otherwise specified in a covered
agreement; or
new text end

new text begin (iii) the aggregate amount of reinsurance recoverable on paid losses which are not in
dispute, but are overdue by 90 days or more, exceeds $50,000,000, or as otherwise specified
in a covered agreement;
new text end

new text begin (7) the assuming insurer's supervisory authority must confirm to the commissioner by
December 31, 2021, and annually thereafter, or at the annual date otherwise statutorily
reported to the reciprocal jurisdiction, that the assuming insurer complies with the
requirements set forth in clauses (2) and (3); and
new text end

new text begin (8) nothing in this subdivision precludes an assuming insurer from providing the
commissioner with information on a voluntary basis.
new text end

new text begin (b) The commissioner shall timely create and publish a list of reciprocal jurisdictions.
The commissioner's list shall include any reciprocal jurisdiction as defined under paragraph
(a), clause (1), items (i) and (ii), and shall consider any other reciprocal jurisdiction included
on the NAIC list. The commissioner may approve a jurisdiction that does not appear on the
NAIC list of reciprocal jurisdictions in accordance with criteria developed under rules issued
by the commissioner. The commissioner may remove a jurisdiction from the list of reciprocal
jurisdictions upon a determination that the jurisdiction no longer meets the requirements of
a reciprocal jurisdiction, in accordance with a process set forth in rules issued by the
commissioner, except that the commissioner shall not remove from the list a reciprocal
jurisdiction as defined under paragraph (a), clause (1), items (i) and (ii). Upon removal of
a reciprocal jurisdiction from the list, credit for reinsurance ceded to an assuming insurer
which has its home office or is domiciled in that jurisdiction shall be allowed, if otherwise
allowed pursuant to law.
new text end

new text begin (c) The commissioner shall timely create and publish a list of assuming insurers that
have satisfied the conditions set forth in this subdivision and to which cessions shall be
granted credit in accordance with this subdivision. The commissioner may add an assuming
insurer to the list if an NAIC accredited jurisdiction has added the assuming insurer to a list
of assuming insurers or if, upon initial eligibility, the assuming insurer submits the
information to the commissioner as required under paragraph (a), clause (4), and complies
with any additional requirements that the commissioner may impose by rule, except to the
extent that they conflict with an applicable covered agreement.
new text end

new text begin (i) If an NAIC-accredited jurisdiction has determined that the conditions set forth in
paragraph (a), clause (2), have been met, the commissioner has the discretion to defer to
that jurisdiction's determination, and add such assuming insurer to the list of assuming
insurers to which cessions shall be granted credit in accordance with this paragraph. The
commissioner may accept financial documentation filed with another NAIC-accredited
jurisdiction or with the NAIC in satisfaction of the requirements of paragraph (a), clause
(2);
new text end

new text begin (ii) When requesting that the commissioner defer to another NAIC-accredited
jurisdiction's determination, an assuming insurer must submit a properly executed Form
RJ-1 and additional information as the commissioner may require. A state that has received
such a request will notify other states through the NAIC Committee Process and provide
relevant information with respect to the determination of eligibility.
new text end

new text begin (d) If the commissioner determines that an assuming insurer no longer meets one or
more of the requirements under this subdivision, the commissioner may revoke or suspend
the eligibility of the assuming insurer for recognition under this subdivision in accordance
with procedures set forth in rule. While an assuming insurer's eligibility is suspended, no
reinsurance agreement issued, amended, or renewed after the effective date of the suspension
qualifies for credit, except to the extent that the assuming insurer's obligations under the
contract are secured in accordance with this section. If an assuming insurer's eligibility is
revoked, no credit for reinsurance may be granted after the effective date of the revocation
with respect to any reinsurance agreements entered into by the assuming insurer, including
reinsurance agreements entered into prior to the date of revocation, except to the extent that
the assuming insurer's obligations under the contract are secured in a form acceptable to
the commissioner and consistent with the provisions of this section.
new text end

new text begin (e) Before denying statement credit or imposing a requirement to post security with
respect to paragraph (d) or adopting any similar requirement that will have substantially the
same regulatory impact as security, the commissioner shall:
new text end

new text begin (1) communicate with the ceding insurer, the assuming insurer, and the assuming insurer's
supervisory authority that the assuming insurer no longer satisfies one of the conditions
listed in paragraph (a), clause (2);
new text end

new text begin (2) provide the assuming insurer with 30 days from the initial communication to submit
a plan to remedy the defect, and 90 days from the initial communication to remedy the
defect, except in exceptional circumstances in which a shorter period is necessary for
policyholder and other consumer protection;
new text end

new text begin (3) after the expiration of 90 days or less, as set out in clause (2), if the commissioner
determines that no or insufficient action was taken by the assuming insurer, the commissioner
may impose any of the requirements as set out in this paragraph; and
new text end

new text begin (4) provide a written explanation to the assuming insurer of any of the requirements set
out in this paragraph.
new text end

new text begin (f) If subject to a legal process of rehabilitation, liquidation, or conservation, as applicable,
the ceding insurer, or its representative, may seek and, if determined appropriate by the
court in which the proceedings are pending, may obtain an order requiring that the assuming
insurer post security for all outstanding ceded liabilities.
new text end

new text begin (g) Nothing in this subdivision limits or in any way alters the capacity of parties to a
reinsurance agreement to agree on requirements for security or other terms in the reinsurance
agreement, except as expressly prohibited by applicable law or rule.
new text end

new text begin (h) Credit may be taken under this subdivision only for reinsurance agreements entered
into, amended, or renewed on or after the effective date of this subdivision, and only with
respect to losses incurred and reserves reported on or after the later of: (1) the date on which
the assuming insurer has met all eligibility requirements pursuant to this subdivision; and
(2) the effective date of the new reinsurance agreement, amendment, or renewal. This
paragraph does not alter or impair a ceding insurer's right to take credit for reinsurance, to
the extent that credit is not available under this subdivision, as long as the reinsurance
qualifies for credit under any other applicable provision of law. Nothing in this subdivision
shall authorize an assuming insurer to withdraw or reduce the security provided under any
reinsurance agreement, except as permitted by the terms of the agreement. Nothing in this
subdivision shall limit, or in any way alter, the capacity of parties to any reinsurance
agreement to renegotiate the agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022, and applies to reinsurance
contracts entered into or renewed on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2020, section 60A.0921, subdivision 2, is amended to read:

Subd. 2.

Certification procedure.

(a) The commissioner shall post notice on the
department's website promptly upon receipt of any application for certification, including
instructions on how members of the public may respond to the application. The commissioner
may not take final action on the application until at least 30 days after posting the notice.

(b) The commissioner shall issue written notice to an assuming insurer that has applied
and been approved as a certified reinsurer. The notice must include the rating assigned the
certified reinsurer in accordance with subdivision 1. The commissioner shall publish a list
of all certified reinsurers and their ratings.

(c) In order to be eligible for certification, the assuming insurer must:

(1) be domiciled and licensed to transact insurance or reinsurance in a qualified
jurisdiction, as determined by the commissioner under subdivision 3;

(2) maintain capital and surplus, or its equivalent, of no less than $250,000,000 calculated
in accordance with paragraph (d), clause (8). This requirement may also be satisfied by an
association including incorporated and individual unincorporated underwriters having
minimum capital and surplus equivalents net of liabilities of at least $250,000,000 and a
central fund containing a balance of at least $250,000,000;

(3) maintain financial strength ratings from two or more rating agencies acceptable to
the commissioner. These ratings shall be based on interactive communication between the
rating agency and the assuming insurer and shall not be based solely on publicly available
information. These financial strength ratings shall be one factor used by the commissioner
in determining the rating that is assigned to the assuming insurer. Acceptable rating agencies
include the following:

(i) Standard & Poor's;

(ii) Moody's Investors Service;

(iii) Fitch Ratings;

(iv) A.M. Best Company; or

(v) any other nationally recognized statistical rating organization; and

(4) ensure that the certified reinsurer complies with any other requirements reasonably
imposed by the commissioner.

(d) Each certified reinsurer shall be rated on a legal entity basis, with due consideration
being given to the group rating where appropriate, except that an association including
incorporated and individual unincorporated underwriters that has been approved to do
business as a single certified reinsurer may be evaluated on the basis of its group rating.
Factors that may be considered as part of the evaluation process include, but are not limited
to:

(1) certified reinsurer's financial strength rating from an acceptable rating agency. The
maximum rating that a certified reinsurer may be assigned will correspond to its financial
strength rating as outlined in the table below. The commissioner shall use the lowest financial
strength rating received from an approved rating agency in establishing the maximum rating
of a certified reinsurer. A failure to obtain or maintain at least two financial strength ratings
from acceptable rating agencies will result in loss of eligibility for certification;

Ratings	Best	S&P	Moody's	Fitch
Secure - 1	A++	AAA	Aaa	AAA
Secure - 2	A+	AA+, AA, AA-	Aa1, Aa2, Aa3	AA+, AA, AA-
Secure - 3	A	A+, A	A1, A2	A+, A
Secure - 4	A-	A-	A3	A-
Secure - 5	B++, B-	BBB+, BBB, BBB-	Baa1, Baa2, Baa3	BBB+, BBB, BBB-
Vulnerable - 6	B, B-C++, C+, C, C-, D, E, F	BB+, BB, BB-, B+, B, B-, CCC, CC, C, D, R	Ba1, Ba2, Ba3, B1, B2, B3, Caa, Ca, C	BB+, BB, BB-, B+, B, B-, CCC+, CC, CCC-, DD

(2) the business practices of the certified reinsurer in dealing with its ceding insurers,
including its record of compliance with reinsurance contractual terms and obligations;

(3) for certified reinsurers domiciled in the United States, a review of the most recent
applicable NAIC annual statement;

(4) for certified reinsurers not domiciled in the United States, a review annually of such
forms as may be required by the commissioner;

(5) the reputation of the certified reinsurer for prompt payment of claims under
reinsurance agreements, based on an analysis of ceding insurers' reporting of overdue
reinsurance recoverables, including the proportion of obligations that are more than 90 days
past due or are in dispute, with specific attention given to obligations payable to companies
that are in administrative supervision or receivership;

(6) regulatory actions against the certified reinsurer;

(7) the report of the independent auditor on the financial statements of the insurance
enterprise, on the basis described in clause (8);

(8) for certified reinsurers not domiciled in the United States, audited financial statements
(audited United States GAAP basis if available, audited IFRS basis statements are allowed,
but must include an audited footnote reconciling equity and net income to a United States
GAAP basis, or, with permission of the commissioner, audited IFRS statements with
reconciliation to United States GAAP certified by an officer of the company). Upon the
initial application for certification, the commissioner will consider audited financial
statements for the last deleted text begin three deleted text end new text begin two new text end years filed with its non-United States jurisdiction supervisor;

(9) the liquidation priority of obligations to a ceding insurer in the certified reinsurer's
domiciliary jurisdiction in the context of an insolvency proceeding;

(10) a certified reinsurer's participation in any solvent scheme of arrangement, or similar
procedure, which involves United States ceding insurers. The commissioner must receive
prior notice from a certified reinsurer that proposes participation by the certified reinsurer
in a solvent scheme of arrangement; and

(11) other information as determined by the commissioner.

(e) Based on the analysis conducted under paragraph (d), clause (5), of a certified
reinsurer's reputation for prompt payment of claims, the commissioner may make appropriate
adjustments in the security the certified reinsurer is required to post to protect its liabilities
to United States ceding insurers, provided that the commissioner shall, at a minimum,
increase the security the certified reinsurer is required to post by one rating level under
paragraph (d), clause (1), if the commissioner finds that:

(1) more than 15 percent of the certified reinsurer's ceding insurance clients have overdue
reinsurance recoverables on paid losses of 90 days or more which are not in dispute and
which exceed $100,000 for each cedent; or

(2) the aggregate amount of reinsurance recoverables on paid losses which are not in
dispute that are overdue by 90 days or more exceeds $50,000,000.

(f) The assuming insurer must submit such forms as required by the commissioner as
evidence of its submission to the jurisdiction of this state, appoint the commissioner as an
agent for service of process in this state, and agree to provide security for 100 percent of
the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding
insurers if it resists enforcement of a final United States judgment. The commissioner shall
not certify an assuming insurer that is domiciled in a jurisdiction that the commissioner has
determined does not adequately and promptly enforce final United States judgments or
arbitration awards.

(g) The certified reinsurer must agree to meet filing requirements as determined by the
commissioner, both with respect to an initial application for certification and on an ongoing
basis. All data submitted by certified reinsurers to the commissioner is nonpublic under
section 13.02, subdivision 9. The certified reinsurer must file with the commissioner:

(1) a notification within ten days of any regulatory actions taken against the certified
reinsurer, any change in the provisions of its domiciliary license, or any change in rating
by an approved rating agency, including a statement describing such changes and the reasons
therefore;

(2) an annual report regarding reinsurance assumed, in a form determined by the
commissioner;

(3) an annual report of the independent auditor on the financial statements of the insurance
enterprise, on the basis described in clause (4);

(4) an annual audited financial statement, regulatory filings, and actuarial opinion filed
with the certified reinsurer's supervisor. Upon the initial certification, audited financial
statements for the last deleted text begin three deleted text end new text begin two new text end years filed with the certified reinsurer's supervisor;

(5) at least annually, an updated list of all disputed and overdue reinsurance claims
regarding reinsurance assumed from United States domestic ceding insurers;

(6) a certification from the certified reinsurer's domestic regulator that the certified
reinsurer is in good standing and maintains capital in excess of the jurisdiction's highest
regulatory action level; and

(7) any other relevant information as determined by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022, and applies to reinsurance
contracts entered into or renewed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2020, section 60A.14, subdivision 1, is amended to read:

Subdivision 1.

Fees other than examination fees.

In addition to the fees and charges
provided for examinations, the following fees must be paid to the commissioner for deposit
in the general fund:

(a) by township mutual fire insurance companies:

(1) for filing certificate of incorporation $25 and amendments thereto, $10;

(2) for filing annual statements, $15;

(3) for each annual certificate of authority, $15;

(4) for filing bylaws $25 and amendments thereto, $10;

(b) by other domestic and foreign companies including fraternals and reciprocal
exchanges:

(1) for filing an application for an initial certification of authority to be admitted to
transact business in this state, $1,500;

(2) for filing certified copy of certificate of articles of incorporation, $100;

(3) for filing annual statement, deleted text begin $225 deleted text end new text begin $300 new text end ;

(4) for filing certified copy of amendment to certificate or articles of incorporation, $100;

(5) for filing bylaws, $75 or amendments thereto, $75;

(6) for each company's certificate of authority, deleted text begin $575 deleted text end new text begin $750 new text end , annually;

(c) the following general fees apply:

(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;

(2) for each copy of paper on file in the commissioner's office 50 cents per page, and
$2.50 for certifying the same;

(3) for license to procure insurance in unadmitted foreign companies, $575;

(4) for valuing the policies of life insurance companies, deleted text begin one cent deleted text end new text begin two cents new text end per $1,000
of insurance so valued, provided that the fee shall not exceed deleted text begin $13,000 deleted text end new text begin $26,000 new text end per year for
any company. The commissioner may, in lieu of a valuation of the policies of any foreign
life insurance company admitted, or applying for admission, to do business in this state,
accept a certificate of valuation from the company's own actuary or from the commissioner
of insurance of the state or territory in which the company is domiciled;

(5) for receiving and filing certificates of policies by the company's actuary, or by the
commissioner of insurance of any other state or territory, $50;

(6) for each appointment of an agent filed with the commissioner, $30;

(7) for filing forms, rates, and compliance certifications under section 60A.315, $140
per filing, or $125 per filing when submitted via electronic filing system. Filing fees may
be paid on a quarterly basis in response to an invoice. Billing and payment may be made
electronically;

(8) for annual renewal of surplus lines insurer license, deleted text begin $300 deleted text end new text begin $400 new text end .

The commissioner shall adopt rules to define filings that are subject to a fee.

Sec. 5.

new text begin [60A.985] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin As used in sections 60A.985 to 60A.9857, the following terms
have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Authorized individual. new text end

new text begin "Authorized individual" means an individual known
to and screened by the licensee and determined to be necessary and appropriate to have
access to the nonpublic information held by the licensee and its information systems.
new text end

new text begin Subd. 3. new text end

new text begin Consumer. new text end

new text begin "Consumer" means an individual, including but not limited to an
applicant, policyholder, insured, beneficiary, claimant, and certificate holder who is a resident
of this state and whose nonpublic information is in a licensee's possession, custody, or
control.
new text end

new text begin Subd. 4. new text end

new text begin Cybersecurity event. new text end

new text begin "Cybersecurity event" means an event resulting in
unauthorized access to, or disruption or misuse of, an information system or nonpublic
information stored on an information system.
new text end

new text begin Cybersecurity event does not include the unauthorized acquisition of encrypted nonpublic
information if the encryption, process, or key is not also acquired, released, or used without
authorization.
new text end

new text begin Cybersecurity event does not include an event with regard to which the licensee has
determined that the nonpublic information accessed by an unauthorized person has not been
used or released and has been returned or destroyed.
new text end

new text begin Subd. 5. new text end

new text begin Encrypted. new text end

new text begin "Encrypted" means the transformation of data into a form which
results in a low probability of assigning meaning without the use of a protective process or
key.
new text end

new text begin Subd. 6. new text end

new text begin Information security program. new text end

new text begin "Information security program" means the
administrative, technical, and physical safeguards that a licensee uses to access, collect,
distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic
information.
new text end

new text begin Subd. 7. new text end

new text begin Information system. new text end

new text begin "Information system" means a discrete set of electronic
information resources organized for the collection, processing, maintenance, use, sharing,
dissemination, or disposition of nonpublic electronic information, as well as any specialized
system such as industrial or process controls systems, telephone switching and private
branch exchange systems, and environmental control systems.
new text end

new text begin Subd. 8. new text end

new text begin Licensee. new text end

new text begin "Licensee" means any person licensed, authorized to operate, or
registered, or required to be licensed, authorized, or registered by the Department of
Commerce or the Department of Health under chapters 59A to 62M and 62Q to 79A.
new text end

new text begin Subd. 9. new text end

new text begin Multifactor authentication. new text end

new text begin "Multifactor authentication" means authentication
through verification of at least two of the following types of authentication factors:
new text end

new text begin (1) knowledge factors, such as a password;
new text end

new text begin (2) possession factors, such as a token or text message on a mobile phone; or
new text end

new text begin (3) inherence factors, such as a biometric characteristic.
new text end

new text begin Subd. 10. new text end

new text begin Nonpublic information. new text end

new text begin "Nonpublic information" means electronic information
that is not publicly available information and is:
new text end

new text begin (1) any information concerning a consumer which because of name, number, personal
mark, or other identifier can be used to identify the consumer, in combination with any one
or more of the following data elements:
new text end

new text begin (i) Social Security number;
new text end

new text begin (ii) driver's license number or nondriver identification card number;
new text end

new text begin (iii) financial account number, credit card number, or debit card number;
new text end

new text begin (iv) any security code, access code, or password that would permit access to a consumer's
financial account; or
new text end

new text begin (v) biometric records; or
new text end

new text begin (2) any information or data, except age or gender, in any form or medium created by or
derived from a health care provider or a consumer that can be used to identify a particular
consumer and that relates to:
new text end

new text begin (i) the past, present, or future physical, mental, or behavioral health or condition of any
consumer or a member of the consumer's family;
new text end

new text begin (ii) the provision of health care to any consumer; or
new text end

new text begin (iii) payment for the provision of health care to any consumer.
new text end

new text begin Subd. 11. new text end

new text begin Person. new text end

new text begin "Person" means any individual or any nongovernmental entity,
including but not limited to any nongovernmental partnership, corporation, branch, agency,
or association.
new text end

new text begin Subd. 12. new text end

new text begin Publicly available information. new text end

new text begin "Publicly available information" means any
information that a licensee has a reasonable basis to believe is lawfully made available to
the general public from: federal, state, or local government records; widely distributed
media; or disclosures to the general public that are required to be made by federal, state, or
local law.
new text end

new text begin For the purposes of this definition, a licensee has a reasonable basis to believe that
information is lawfully made available to the general public if the licensee has taken steps
to determine:
new text end

new text begin (1) that the information is of the type that is available to the general public; and
new text end

new text begin (2) whether a consumer can direct that the information not be made available to the
general public and, if so, that such consumer has not done so.
new text end

new text begin Subd. 13. new text end

new text begin Risk assessment. new text end

new text begin "Risk assessment" means the risk assessment that each
licensee is required to conduct under section 60A.9853, subdivision 3.
new text end

new text begin Subd. 14. new text end

new text begin State. new text end

new text begin "State" means the state of Minnesota.
new text end

new text begin Subd. 15. new text end

new text begin Third-party service provider. new text end

new text begin "Third-party service provider" means a person,
not otherwise defined as a licensee, that contracts with a licensee to maintain, process, or
store nonpublic information, or is otherwise permitted access to nonpublic information
through its provision of services to the licensee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 6.

new text begin [60A.9851] INFORMATION SECURITY PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Implementation of an information security program. new text end

new text begin Commensurate
with the size and complexity of the licensee, the nature and scope of the licensee's activities,
including its use of third-party service providers, and the sensitivity of the nonpublic
information used by the licensee or in the licensee's possession, custody, or control, each
licensee shall develop, implement, and maintain a comprehensive written information
security program based on the licensee's risk assessment and that contains administrative,
technical, and physical safeguards for the protection of nonpublic information and the
licensee's information system.
new text end

new text begin Subd. 2. new text end

new text begin Objectives of an information security program. new text end

new text begin A licensee's information
security program shall be designed to:
new text end

new text begin (1) protect the security and confidentiality of nonpublic information and the security of
the information system;
new text end

new text begin (2) protect against any threats or hazards to the security or integrity of nonpublic
information and the information system;
new text end

new text begin (3) protect against unauthorized access to, or use of, nonpublic information, and minimize
the likelihood of harm to any consumer; and
new text end

new text begin (4) define and periodically reevaluate a schedule for retention of nonpublic information
and a mechanism for its destruction when no longer needed.
new text end

new text begin Subd. 3. new text end

new text begin Risk assessment. new text end

new text begin The licensee shall:
new text end

new text begin (1) designate one or more employees, an affiliate, or an outside vendor authorized to act
on behalf of the licensee who is responsible for the information security program;
new text end

new text begin (2) identify reasonably foreseeable internal or external threats that could result in
unauthorized access, transmission, disclosure, misuse, alteration, or destruction of nonpublic
information, including threats to the security of information systems and nonpublic
information that are accessible to, or held by, third-party service providers;
new text end

new text begin (3) assess the likelihood and potential damage of the threats identified pursuant to clause
(2), taking into consideration the sensitivity of the nonpublic information;
new text end

new text begin (4) assess the sufficiency of policies, procedures, information systems, and other
safeguards in place to manage these threats, including consideration of threats in each
relevant area of the licensee's operations, including:
new text end

new text begin (i) employee training and management;
new text end

new text begin (ii) information systems, including network and software design, as well as information
classification, governance, processing, storage, transmission, and disposal; and
new text end

new text begin (iii) detecting, preventing, and responding to attacks, intrusions, or other systems failures;
and
new text end

new text begin (5) implement information safeguards to manage the threats identified in its ongoing
assessment, and no less than annually, assess the effectiveness of the safeguards' key controls,
systems, and procedures.
new text end

new text begin Subd. 4. new text end

new text begin Risk management. new text end

new text begin Based on its risk assessment, the licensee shall:
new text end

new text begin (1) design its information security program to mitigate the identified risks, commensurate
with the size and complexity of the licensee, the nature and scope of the licensee's activities,
including its use of third-party service providers, and the sensitivity of the nonpublic
information used by the licensee or in the licensee's possession, custody, or control;
new text end

new text begin (2) determine which of the following security measures are appropriate and implement
any appropriate security measures:
new text end

new text begin (i) place access controls on information systems, including controls to authenticate and
permit access only to authorized individuals, to protect against the unauthorized acquisition
of nonpublic information;
new text end

new text begin (ii) identify and manage the data, personnel, devices, systems, and facilities that enable
the organization to achieve business purposes in accordance with their relative importance
to business objectives and the organization's risk strategy;
new text end

new text begin (iii) restrict physical access to nonpublic information to authorized individuals only;
new text end

new text begin (iv) protect, by encryption or other appropriate means, all nonpublic information while
being transmitted over an external network and all nonpublic information stored on a laptop
computer or other portable computing or storage device or media;
new text end

new text begin (v) adopt secure development practices for in-house developed applications utilized by
the licensee;
new text end

new text begin (vi) modify the information system in accordance with the licensee's information security
program;
new text end

new text begin (vii) utilize effective controls, which may include multifactor authentication procedures
for any authorized individual accessing nonpublic information;
new text end

new text begin (viii) regularly test and monitor systems and procedures to detect actual and attempted
attacks on, or intrusions into, information systems;
new text end

new text begin (ix) include audit trails within the information security program designed to detect and
respond to cybersecurity events and designed to reconstruct material financial transactions
sufficient to support normal operations and obligations of the licensee;
new text end

new text begin (x) implement measures to protect against destruction, loss, or damage of nonpublic
information due to environmental hazards, such as fire and water damage, other catastrophes,
or technological failures; and
new text end

new text begin (xi) develop, implement, and maintain procedures for the secure disposal of nonpublic
information in any format;
new text end

new text begin (3) include cybersecurity risks in the licensee's enterprise risk management process;
new text end

new text begin (4) stay informed regarding emerging threats or vulnerabilities and utilize reasonable
security measures when sharing information relative to the character of the sharing and the
type of information shared; and
new text end

new text begin (5) provide its personnel with cybersecurity awareness training that is updated as
necessary to reflect risks identified by the licensee in the risk assessment.
new text end

new text begin Subd. 5. new text end

new text begin Oversight by board of directors. new text end

new text begin If the licensee has a board of directors, the
board or an appropriate committee of the board shall, at a minimum:
new text end

new text begin (1) require the licensee's executive management or its delegates to develop, implement,
and maintain the licensee's information security program;
new text end

new text begin (2) require the licensee's executive management or its delegates to report in writing, at
least annually, the following information:
new text end

new text begin (i) the overall status of the information security program and the licensee's compliance
with this act; and
new text end

new text begin (ii) material matters related to the information security program, addressing issues such
as risk assessment, risk management and control decisions, third-party service provider
arrangements, results of testing, cybersecurity events or violations and management's
responses thereto, and recommendations for changes in the information security program;
and
new text end

new text begin (3) if executive management delegates any of its responsibilities under this section, it
shall oversee the development, implementation, and maintenance of the licensee's information
security program prepared by the delegate and shall receive a report from the delegate
complying with the requirements of the report to the board of directors.
new text end

new text begin Subd. 6. new text end

new text begin Oversight of third-party service provider arrangements. new text end

new text begin (a) A licensee shall
exercise due diligence in selecting its third-party service provider.
new text end

new text begin (b) A licensee shall require a third-party service provider to implement appropriate
administrative, technical, and physical measures to protect and secure the information
systems and nonpublic information that are accessible to, or held by, the third-party service
provider.
new text end

new text begin Subd. 7. new text end

new text begin Program adjustments. new text end

new text begin The licensee shall monitor, evaluate, and adjust, as
appropriate, the information security program consistent with any relevant changes in
technology, the sensitivity of its nonpublic information, internal or external threats to
information, and the licensee's own changing business arrangements, such as mergers and
acquisitions, alliances and joint ventures, outsourcing arrangements, and changes to
information systems.
new text end

new text begin Subd. 8. new text end

new text begin Incident response plan. new text end

new text begin (a) As part of its information security program, each
licensee shall establish a written incident response plan designed to promptly respond to,
and recover from, any cybersecurity event that compromises the confidentiality, integrity,
or availability of nonpublic information in its possession, the licensee's information systems,
or the continuing functionality of any aspect of the licensee's business or operations.
new text end

new text begin (b) The incident response plan shall address the following areas:
new text end

new text begin (1) the internal process for responding to a cybersecurity event;
new text end

new text begin (2) the goals of the incident response plan;
new text end

new text begin (3) the definition of clear roles, responsibilities, and levels of decision-making authority;
new text end

new text begin (4) external and internal communications and information sharing;
new text end

new text begin (5) identification of requirements for the remediation of any identified weaknesses in
information systems and associated controls;
new text end

new text begin (6) documentation and reporting regarding cybersecurity events and related incident
response activities; and
new text end

new text begin (7) the evaluation and revision, as necessary, of the incident response plan following a
cybersecurity event.
new text end

new text begin Subd. 9. new text end

new text begin Annual certification to commissioner. new text end

new text begin (a) Subject to paragraph (b), by April
15 of each year, an insurer domiciled in this state shall certify in writing to the commissioner
that the insurer is in compliance with the requirements set forth in this section. Each insurer
shall maintain all records, schedules, and data supporting this certificate for a period of five
years and shall permit examination by the commissioner. To the extent an insurer has
identified areas, systems, or processes that require material improvement, updating, or
redesign, the insurer shall document the identification and the remedial efforts planned and
underway to address such areas, systems, or processes. Such documentation must be available
for inspection by the commissioner.
new text end

new text begin (b) The commissioner must post on the department's website, no later than 60 days prior
to the certification required by paragraph (a), the form and manner of submission required
and any instructions necessary to prepare the certification.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021. Licensees have one year
from the effective date to implement subdivisions 1 to 5 and 7 to 9, and two years from the
effective date to implement subdivision 6.
new text end

Sec. 7.

new text begin [60A.9852] INVESTIGATION OF A CYBERSECURITY EVENT.
new text end

new text begin Subdivision 1. new text end

new text begin Prompt investigation. new text end

new text begin If the licensee learns that a cybersecurity event
has or may have occurred, the licensee, or an outside vendor or service provider designated
to act on behalf of the licensee, shall conduct a prompt investigation.
new text end

new text begin Subd. 2. new text end

new text begin Investigation contents. new text end

new text begin During the investigation, the licensee, or an outside
vendor or service provider designated to act on behalf of the licensee, shall, at a minimum
and to the extent possible:
new text end

new text begin (1) determine whether a cybersecurity event has occurred;
new text end

new text begin (2) assess the nature and scope of the cybersecurity event, if any;
new text end

new text begin (3) identify whether any nonpublic information was involved in the cybersecurity event
and, if so, what nonpublic information was involved; and
new text end

new text begin (4) perform or oversee reasonable measures to restore the security of the information
systems compromised in the cybersecurity event in order to prevent further unauthorized
acquisition, release, or use of nonpublic information in the licensee's possession, custody,
or control.
new text end

new text begin Subd. 3. new text end

new text begin Third-party systems. new text end

new text begin If the licensee learns that a cybersecurity event has or
may have occurred in a system maintained by a third-party service provider, the licensee
will complete the steps listed in subdivision 2 or confirm and document that the third-party
service provider has completed those steps.
new text end

new text begin Subd. 4. new text end

new text begin Records. new text end

new text begin The licensee shall maintain records concerning all cybersecurity
events for a period of at least five years from the date of the cybersecurity event and shall
produce those records upon demand of the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 8.

new text begin [60A.9853] NOTIFICATION OF A CYBERSECURITY EVENT.
new text end

new text begin Subdivision 1. new text end

new text begin Notification to the commissioner. new text end

new text begin Each licensee shall notify the
commissioner of commerce or commissioner of health, whichever commissioner otherwise
regulates the licensee, without unreasonable delay but in no event later than three business
days from a determination that a cybersecurity event has occurred when either of the
following criteria has been met:
new text end

new text begin (1) this state is the licensee's state of domicile, in the case of an insurer, or this state is
the licensee's home state, in the case of a producer, as those terms are defined in chapter
60K and the cybersecurity event has a reasonable likelihood of materially harming:
new text end

new text begin (i) any consumer residing in this state; or
new text end

new text begin (ii) any part of the normal operations of the licensee; or
new text end

new text begin (2) the licensee reasonably believes that the nonpublic information involved is of 250
or more consumers residing in this state and that is either of the following:
new text end

new text begin (i) a cybersecurity event impacting the licensee of which notice is required to be provided
to any government body, self-regulatory agency, or any other supervisory body pursuant
to any state or federal law; or
new text end

new text begin (ii) a cybersecurity event that has a reasonable likelihood of materially harming:
new text end

new text begin (A) any consumer residing in this state; or
new text end

new text begin (B) any part of the normal operations of the licensee.
new text end

new text begin Subd. 2. new text end

new text begin Information; notification. new text end

new text begin A licensee making the notification required under
subdivision 1 shall provide the information in electronic form as directed by the
commissioner. The licensee shall have a continuing obligation to update and supplement
initial and subsequent notifications to the commissioner concerning material changes to
previously provided information relating to the cybersecurity event. The licensee shall
provide as much of the following information as possible:
new text end

new text begin (1) date of the cybersecurity event;
new text end

new text begin (2) description of how the information was exposed, lost, stolen, or breached, including
the specific roles and responsibilities of third-party service providers, if any;
new text end

new text begin (3) how the cybersecurity event was discovered;
new text end

new text begin (4) whether any lost, stolen, or breached information has been recovered and, if so, how
this was done;
new text end

new text begin (5) the identity of the source of the cybersecurity event;
new text end

new text begin (6) whether the licensee has filed a police report or has notified any regulatory,
government, or law enforcement agencies and, if so, when such notification was provided;
new text end

new text begin (7) description of the specific types of information acquired without authorization.
Specific types of information means particular data elements including, for example, types
of medical information, types of financial information, or types of information allowing
identification of the consumer;
new text end

new text begin (8) the period during which the information system was compromised by the cybersecurity
event;
new text end

new text begin (9) the number of total consumers in this state affected by the cybersecurity event. The
licensee shall provide the best estimate in the initial report to the commissioner and update
this estimate with each subsequent report to the commissioner pursuant to this section;
new text end

new text begin (10) the results of any internal review identifying a lapse in either automated controls
or internal procedures, or confirming that all automated controls or internal procedures were
followed;
new text end

new text begin (11) description of efforts being undertaken to remediate the situation which permitted
the cybersecurity event to occur;
new text end

new text begin (12) a copy of the licensee's privacy policy and a statement outlining the steps the licensee
will take to investigate and notify consumers affected by the cybersecurity event; and
new text end

new text begin (13) name of a contact person who is familiar with the cybersecurity event and authorized
to act for the licensee.
new text end

new text begin Subd. 3. new text end

new text begin Notification to consumers. new text end

new text begin (a) If a licensee is required to submit a report to
the commissioner under subdivision 1, the licensee shall notify any consumer residing in
Minnesota if, as a result of the cybersecurity event reported to the commissioner, the
consumer's nonpublic information was or is reasonably believed to have been acquired by
an unauthorized person, and there is a reasonable likelihood of material harm to the consumer
as a result of the cybersecurity event. Consumer notification is not required for a
cybersecurity event resulting from the good faith acquisition of nonpublic information by
an employee or agent of the licensee for the purposes of the licensee's business, provided
the nonpublic information is not used for a purpose other than the licensee's business or
subject to further unauthorized disclosure. The notification must be made in the most
expedient time possible and without unreasonable delay, consistent with the legitimate needs
of law enforcement or with any measures necessary to determine the scope of the breach,
identify the individuals affected, and restore the reasonable integrity of the data system.
The notification may be delayed to a date certain if the commissioner determines that
providing the notice impedes a criminal investigation. The licensee shall provide a copy of
the notice to the commissioner.
new text end

new text begin (b) For purposes of this subdivision, notice required under paragraph (a) must be provided
by one of the following methods:
new text end

new text begin (1) written notice to the consumer's most recent address in the licensee's records;
new text end

new text begin (2) electronic notice, if the licensee's primary method of communication with the
consumer is by electronic means or if the notice provided is consistent with the provisions
regarding electronic records and signatures in United States Code, title 15, section 7001;
or
new text end

new text begin (3) if the cost of providing notice exceeds $250,000, the affected class of consumers to
be notified exceeds 500,000, or the licensee does not have sufficient contact information
for the subject consumers, notice as follows:
new text end

new text begin (i) e-mail notice when the licensee has an e-mail address for the subject consumers;
new text end

new text begin (ii) conspicuous posting of the notice on the website page of the licensee; and
new text end

new text begin (iii) notification to major statewide media.
new text end

new text begin (c) Notwithstanding paragraph (b), a licensee that maintains its own notification procedure
as part of its information security program that is consistent with the timing requirements
of this subdivision is deemed to comply with the notification requirements if the licensee
notifies subject consumers in accordance with its program.
new text end

new text begin (d) A waiver of the requirements under this subdivision is contrary to public policy, and
is void and unenforceable.
new text end

new text begin Subd. 4. new text end

new text begin Notice regarding cybersecurity events of third-party service providers. new text end

new text begin (a)
In the case of a cybersecurity event in a system maintained by a third-party service provider,
of which the licensee has become aware, the licensee shall treat such event as it would under
subdivision 1 unless the third-party service provider provides the notice required under
subdivision 1.
new text end

new text begin (b) The computation of a licensee's deadlines shall begin on the day after the third-party
service provider notifies the licensee of the cybersecurity event or the licensee otherwise
has actual knowledge of the cybersecurity event, whichever is sooner.
new text end

new text begin (c) Nothing in this act shall prevent or abrogate an agreement between a licensee and
another licensee, a third-party service provider, or any other party to fulfill any of the
investigation requirements imposed under section 60A.9854 or notice requirements imposed
under this section.
new text end

new text begin Subd. 5. new text end

new text begin Notice regarding cybersecurity events of reinsurers to insurers. new text end

new text begin (a) In the
case of a cybersecurity event involving nonpublic information that is used by the licensee
that is acting as an assuming insurer or in the possession, custody, or control of a licensee
that is acting as an assuming insurer and that does not have a direct contractual relationship
with the affected consumers, the assuming insurer shall notify its affected ceding insurers
and the commissioner of its state of domicile within three business days of making the
determination that a cybersecurity event has occurred.
new text end

new text begin (b) The ceding insurers that have a direct contractual relationship with affected consumers
shall fulfill the consumer notification requirements imposed under subdivision 3 and any
other notification requirements relating to a cybersecurity event imposed under this section.
new text end

new text begin (c) In the case of a cybersecurity event involving nonpublic information that is in the
possession, custody, or control of a third-party service provider of a licensee that is an
assuming insurer, the assuming insurer shall notify its affected ceding insurers and the
commissioner of its state of domicile within three business days of receiving notice from
its third-party service provider that a cybersecurity event has occurred.
new text end

new text begin (d) The ceding insurers that have a direct contractual relationship with affected consumers
shall fulfill the consumer notification requirements imposed under subdivision 3 and any
other notification requirements relating to a cybersecurity event imposed under this section.
new text end

new text begin (e) Any licensee acting as an assuming insurer shall have no other notice obligations
relating to a cybersecurity event or other data breach under this section.
new text end

new text begin Subd. 6. new text end

new text begin Notice regarding cybersecurity events of insurers to producers of record. new text end

new text begin (a)
In the case of a cybersecurity event involving nonpublic information that is in the possession,
custody, or control of a licensee that is an insurer or its third-party service provider and for
which a consumer accessed the insurer's services through an independent insurance producer,
the insurer shall notify the producers of record of all affected consumers no later than the
time at which notice is provided to the affected consumers.
new text end

new text begin (b) The insurer is excused from this obligation for those instances in which it does not
have the current producer of record information for any individual consumer or in those
instances in which the producer of record is no longer appointed to sell, solicit, or negotiate
on behalf of the insurer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 9.

new text begin [60A.9854] POWER OF COMMISSIONER.
new text end

new text begin (a) The commissioner of commerce or commissioner of health, whichever commissioner
otherwise regulates the licensee, shall have power to examine and investigate into the affairs
of any licensee to determine whether the licensee has been or is engaged in any conduct in
violation of sections 60A.985 to 60A.9857. This power is in addition to the powers which
the commissioner has under section 60A.031. Any such investigation or examination shall
be conducted pursuant to section 60A.031.
new text end

new text begin (b) Whenever the commissioner of commerce or commissioner of health has reason to
believe that a licensee has been or is engaged in conduct in this state which violates sections
60A.985 to 60A.9857, the commissioner of commerce or commissioner of health may take
action that is necessary or appropriate to enforce those sections.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 10.

new text begin [60A.9855] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Licensee information. new text end

new text begin Any documents, materials, or other information
in the control or possession of the department that are furnished by a licensee or an employee
or agent thereof acting on behalf of a licensee pursuant to section 60A.9851, subdivision
9; section 60A.9853, subdivision 2, clauses (2), (3), (4), (5), (8), (10), and (11); or that are
obtained by the commissioner in an investigation or examination pursuant to section
60A.9854 shall be classified as confidential, protected nonpublic, or both; shall not be
subject to subpoena; and shall not be subject to discovery or admissible in evidence in any
private civil action. However, the commissioner is authorized to use the documents, materials,
or other information in the furtherance of any regulatory or legal action brought as a part
of the commissioner's duties.
new text end

new text begin Subd. 2. new text end

new text begin Certain testimony prohibited. new text end

new text begin Neither the commissioner nor any person who
received documents, materials, or other information while acting under the authority of the
commissioner shall be permitted or required to testify in any private civil action concerning
any confidential documents, materials, or information subject to subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Information sharing. new text end

new text begin In order to assist in the performance of the commissioner's
duties under this act, the commissioner:
new text end

new text begin (1) may share documents, materials, or other information, including the confidential and
privileged documents, materials, or information subject to subdivision 1, with other state,
federal, and international regulatory agencies, with the National Association of Insurance
Commissioners, its affiliates or subsidiaries, and with state, federal, and international law
enforcement authorities, provided that the recipient agrees in writing to maintain the
confidentiality and privileged status of the document, material, or other information;
new text end

new text begin (2) may receive documents, materials, or information, including otherwise confidential
and privileged documents, materials, or information, from the National Association of
Insurance Commissioners, its affiliates or subsidiaries, and from regulatory and law
enforcement officials of other foreign or domestic jurisdictions, and shall maintain as
confidential or privileged any document, material, or information received with notice or
the understanding that it is confidential or privileged under the laws of the jurisdiction that
is the source of the document, material, or information;
new text end

new text begin (3) may share documents, materials, or other information subject to subdivision 1, with
a third-party consultant or vendor provided the consultant agrees in writing to maintain the
confidentiality and privileged status of the document, material, or other information; and
new text end

new text begin (4) may enter into agreements governing sharing and use of information consistent with
this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin No waiver of privilege or confidentiality. new text end

new text begin No waiver of any applicable privilege
or claim of confidentiality in the documents, materials, or information shall occur as a result
of disclosure to the commissioner under this section or as a result of sharing as authorized
in subdivision 3. Any document, material, or information disclosed to the commissioner
under this section about a cybersecurity event must be retained and preserved by the licensee
for the time period under section 541.05, or longer if required by the licensee's document
retention policy.
new text end

new text begin Subd. 5. new text end

new text begin Certain actions public. new text end

new text begin Nothing in sections 60A.985 to 60A.9857 shall prohibit
the commissioner from releasing final, adjudicated actions that are open to public inspection
pursuant to chapter 13 to a database or other clearinghouse service maintained by the National
Association of Insurance Commissioners, its affiliates, or subsidiaries.
new text end

new text begin Subd. 6. new text end

new text begin Classification, protection, and use of information by others. new text end

new text begin Documents,
materials, or other information in the possession or control of the National Association of
Insurance Commissioners or a third-party consultant pursuant to sections 60A.985 to
60A.9857 are classified as confidential, protected nonpublic, and privileged; are not subject
to subpoena; and are not subject to discovery or admissible in evidence in a private civil
action.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 11.

new text begin [60A.9856] EXCEPTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The following exceptions shall apply to sections 60A.985 to
60A.9857:
new text end

new text begin (1) a licensee with fewer than 25 employees is exempt from sections 60A.9851 and
60A.9852;
new text end

new text begin (2) a licensee subject to and in compliance with the Health Insurance Portability and
Accountability Act, Public Law 104-191, 110 Stat. 1936 (HIPAA), is considered to comply
with sections 60A.9851, 60A.9852, and 60A.9853, subdivisions 3 to 5, provided the licensee
submits a written statement certifying its compliance with HIPAA;
new text end

new text begin (3) a licensee affiliated with a depository institution that maintains an information security
program in compliance with the interagency guidelines establishing standards for
safeguarding customer information as set forth pursuant to United States Code, title 15,
sections 6801 and 6805, shall be considered to meet the requirements of section 60A.9851
provided that the licensee produce, upon request, documentation satisfactory to the
commission that independently validates the affiliated depository institution's adoption of
an information security program that satisfies the interagency guidelines;
new text end

new text begin (4) an employee, agent, representative, or designee of a licensee, who is also a licensee,
is exempt from sections 60A.9851 and 60A.9852 and need not develop its own information
security program to the extent that the employee, agent, representative, or designee is covered
by the information security program of the other licensee; and
new text end

new text begin (5) an employee, agent, representative, or designee of a producer licensee, as defined
under section 60K.31, subdivision 6, who is also a licensee, is exempt from sections 60A.985
to 60A.9857.
new text end

new text begin Subd. 2. new text end

new text begin Exemption lapse; compliance. new text end

new text begin In the event that a licensee ceases to qualify
for an exception, such licensee shall have 180 days to comply with this act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 12.

new text begin [60A.9857] PENALTIES.
new text end

new text begin In the case of a violation of sections 60A.985 to 60A.9856, a licensee may be penalized
in accordance with section 60A.052.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 13.

Minnesota Statutes 2020, section 61A.245, subdivision 4, is amended to read:

Subd. 4.

Minimum values.

The minimum values as specified in subdivisions 5, 6, 7, 8
and 10 of any paid-up annuity, cash surrender or death benefits available under an annuity
contract shall be based upon minimum nonforfeiture amounts as defined in this subdivision.

(a) The minimum nonforfeiture amount at any time at or prior to the commencement of
any annuity payments shall be equal to an accumulation up to that time at rates of interest
as indicated in paragraph (b) of the net considerations, as defined in this subdivision, paid
prior to that time, decreased by the sum of clauses (1) through (4):

(1) any prior withdrawals from or partial surrenders of the contract accumulated at rates
of interest as indicated in paragraph (b);

(2) an annual contract charge of $50, accumulated at rates of interest as indicated in
paragraph (b);

(3) any premium tax paid by the company for the contract and not subsequently credited
back to the company, such as upon early termination of the contract, in which case this
decrease must not be taken, accumulated at rates of interest as indicated in paragraph (b);
and

(4) the amount of any indebtedness to the company on the contract, including interest
due and accrued.

The net considerations for a given contract year used to define the minimum nonforfeiture
amount shall be an amount equal to 87.5 percent of the gross considerations credited to the
contract during that contract year.

(b) The interest rate used in determining minimum nonforfeiture amounts must be an
annual rate of interest determined as the lesser of three percent per annum and the following,
which must be specified in the contract if the interest rate will be reset:

(1) the five-year constant maturity treasury rate reported by the Federal Reserve as of a
date, or average over a period, rounded to the nearest 1/20 of one percent, specified in the
contract no longer than 15 months prior to the contract issue date or redetermination date
under clause (4);

(2) reduced by 125 basis points;

(3) where the resulting interest rate is not less than deleted text begin one deleted text end new text begin 0.15 new text end percent; and

(4) the interest rate shall apply for an initial period and may be redetermined for additional
periods. The redetermination date, basis, and period, if any, shall be stated in the contract.
The basis is the date or average over a specified period that produces the value of the
five-year constant maturity treasury rate to be used at each redetermination date.

(c) During the period or term that a contract provides substantive participation in an
equity indexed benefit, it may increase the reduction described in clause (2) by up to an
additional 100 basis points to reflect the value of the equity index benefit. The present value
at the contract issue date, and at each redetermination date thereafter, of the additional
reduction must not exceed the market value of the benefit. The commissioner may require
a demonstration that the present value of the additional reduction does not exceed the market
value of the benefit. Lacking such a demonstration that is acceptable to the commissioner,
the commissioner may disallow or limit the additional reduction.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2020, section 62J.23, subdivision 2, is amended to read:

Subd. 2.

Restrictions.

(a) From July 1, 1992, until rules are adopted by the commissioner
under this section, the restrictions in the federal Medicare antikickback statutes in section
1128B(b) of the Social Security Act, United States Code, title 42, section 1320a-7b(b), and
rules adopted under the federal statutes, apply to all persons in the state, regardless of whether
the person participates in any state health care program.

(b) Nothing in paragraph (a) shall be construed to prohibit an individual from receiving
a discount or other reduction in price or a limited-time free supply or samples of a prescription
drug, medical supply, or medical equipment offered by a pharmaceutical manufacturer,
medical supply or device manufacturer, health plan company, or pharmacy benefit manager,
so long as:

(1) the discount or reduction in price is provided to the individual in connection with
the purchase of a prescription drug, medical supply, or medical equipment prescribed for
that individual;

(2) it otherwise complies with the requirements of state and federal law applicable to
enrollees of state and federal public health care programs;

(3) the discount or reduction in price does not exceed the amount paid directly by the
individual for the prescription drug, medical supply, or medical equipment; and

(4) the limited-time free supply or samples are provided by a physician, advanced practice
registered nurse, or pharmacist, as provided by the federal Prescription Drug Marketing
Act.

For purposes of this paragraph, "prescription drug" includes prescription drugs that are
administered through infusion new text begin , injection, or other parenteral methods new text end , and related services
and supplies.

(c) No benefit, reward, remuneration, or incentive for continued product use may be
provided to an individual or an individual's family by a pharmaceutical manufacturer,
medical supply or device manufacturer, or pharmacy benefit manager, except that this
prohibition does not apply to:

(1) activities permitted under paragraph (b);

(2) a pharmaceutical manufacturer, medical supply or device manufacturer, health plan
company, or pharmacy benefit manager providing to a patient, at a discount or reduced
price or free of charge, ancillary products necessary for treatment of the medical condition
for which the prescription drug, medical supply, or medical equipment was prescribed or
provided; and

(3) a pharmaceutical manufacturer, medical supply or device manufacturer, health plan
company, or pharmacy benefit manager providing to a patient a trinket or memento of
insignificant value.

(d) Nothing in this subdivision shall be construed to prohibit a health plan company
from offering a tiered formulary with different co-payment or cost-sharing amounts for
different drugs.

Sec. 15.

new text begin [62Q.472] SCREENING AND TESTING FOR OPIOIDS.
new text end

new text begin (a) A health plan company shall not place a lifetime or annual limit on screenings and
urinalysis testing for opioids for an enrollee in an inpatient or outpatient substance use
disorder treatment program when the screening or testing is ordered by a health care provider
and performed by an accredited clinical laboratory. A health plan company is not prohibited
from conducting a medical necessity review when screenings or urinalysis testing for an
enrollee exceeds 24 tests in any 12-month period.
new text end

new text begin (b) This section does not apply to managed care plans or county-based purchasing plans
when the plan provides coverage to public health care program enrollees under chapter
256B or 256L.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022, and applies to health
plans offered, issued, or renewed on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2020, section 256B.0625, subdivision 10, is amended to read:

Subd. 10.

Laboratory and x-ray services.

new text begin (a) new text end Medical assistance covers laboratory and
x-ray services.

new text begin (b) Medical assistance covers screening and urinalysis tests for opioids without lifetime
or annual limits.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 17. new text begin STUDY AND REPORT ON DISPARITIES BETWEEN GEOGRAPHIC
RATING AREAS IN INDIVIDUAL AND SMALL GROUP MARKET HEALTH
INSURANCE RATES.
new text end

new text begin Subdivision 1. new text end

new text begin Study and recommendations. new text end

new text begin (a) The commissioner of commerce must
study disparities between Minnesota's nine geographic rating areas in individual and small
group market health insurance rates, and recommend ways to reduce or eliminate rate
disparities between the geographic rating areas and provide stability for the individual and
small group health insurance markets in Minnesota. The commissioner of commerce must:
new text end

new text begin (1) identify the factors that cause higher individual and small group market health
insurance rates in certain geographic rating areas, and determine the extent to which each
identified factor contributes to the higher rates;
new text end

new text begin (2) identify the impact of referral centers on individual and small group market health
insurance rates in southeastern Minnesota, and identify ways to reduce the rate disparity
between southeastern Minnesota and the metropolitan area, taking into consideration the
patterns of referral center usage by patients in those regions;
new text end

new text begin (3) determine the extent to which individuals and small employers located in a geographic
rating area with higher health insurance rates than surrounding geographic rating areas have
obtained health insurance in a lower-cost geographic rating area, identify the strategies that
individuals and small employers use to obtain health insurance in a lower-cost geographic
rating area, and measure the effects of this practice on the rates of the individuals and small
employers remaining in the geographic rating area with higher health insurance rates; and
new text end

new text begin (4) develop proposals to redraw the boundaries of Minnesota's geographic rating areas
and calculate the effect each proposal would have on rates in each of the proposed rating
areas. The commissioner of commerce must examine at least three options for redrawing
the boundaries of Minnesota's geographic rating areas, at least one of which must reduce
the number of geographic rating areas. All options for redrawing Minnesota's geographic
rating areas considered by the commissioner of commerce must be designed:
new text end

new text begin (i) to reduce or eliminate rate disparities between geographic rating areas and provide
for stability of the individual and small group health insurance markets in Minnesota;
new text end

new text begin (ii) after considering the composition of existing provider networks and referral patterns
in regions of Minnesota; and
new text end

new text begin (iii) in compliance with the requirements for geographic rating areas in Code of Federal
Regulations, title 45, section 147.102(b), and other applicable federal law and guidance.
new text end

new text begin (b) Health carriers that cover Minnesota residents, health systems that provide care to
Minnesota residents, and the commissioner of health must cooperate with any requests for
information from the commissioner of commerce that the commissioner of commerce
determines is necessary to conduct the study.
new text end

new text begin (c) The commissioner of commerce may recommend one or more proposals for redrawing
Minnesota's geographic rating areas if the commissioner of commerce determines that the
proposal would reduce or eliminate individual and small group market health insurance rate
disparities between the geographic rating areas and provide stability for the individual and
small group health insurance markets in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Contract. new text end

new text begin The commissioner of commerce may contract with another entity
for technical assistance in conducting the study and developing recommendations according
to subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commissioner of commerce shall complete the study and
recommendations by January 1, 2022, and submit a report on the study and recommendations
by that date to the chairs and ranking minority members of the legislative committees with
jurisdiction over health care and health insurance. The commissioner of commerce shall
complete the study using existing appropriations.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 60A.98; 60A.981; and 60A.982, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

ARTICLE 4

CONSUMER PROTECTION

Section 1.

Minnesota Statutes 2020, section 13.712, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Student loan servicers. new text end

new text begin Data collected, created, received, maintained, or
disseminated under chapter 58B are governed by section 58B.10.
new text end

Sec. 2.

Minnesota Statutes 2020, section 47.59, subdivision 2, is amended to read:

Subd. 2.

Application.

Extensions of credit or purchases of extensions of credit by
financial institutions under sections 47.20, 47.21, 47.201, 47.204, 47.58, deleted text begin 47.60, deleted text end 48.153,
48.185, 48.195, 59A.01 to 59A.15, 334.01, 334.011, 334.012, 334.022, 334.06, and 334.061
to 334.19 may, but need not, be made according to those sections in lieu of the authority
set forth in this section to the extent those sections authorize the financial institution to make
extensions of credit or purchase extensions of credit under those sections. If a financial
institution elects to make an extension of credit or to purchase an extension of credit under
those other sections, the extension of credit or the purchase of an extension of credit is
subject to those sections and not this section, except this subdivision, and except as expressly
provided in those sections. A financial institution may also charge an organization a rate of
interest and any charges agreed to by the organization and may calculate and collect finance
and other charges in any manner agreed to by that organization. Except for extensions of
credit a financial institution elects to make under section 334.01, 334.011, 334.012, 334.022,
334.06, or 334.061 to 334.19, chapter 334 does not apply to extensions of credit made
according to this section or the sections listed in this subdivision. This subdivision does not
authorize a financial institution to extend credit or purchase an extension of credit under
any of the sections listed in this subdivision if the financial institution is not authorized to
do so under those sections. A financial institution extending credit under any of the sections
listed in this subdivision shall specify in the promissory note, contract, or other loan document
the section under which the extension of credit is made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to consumer
short-term loans and small loans originated on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2020, section 47.60, subdivision 2, is amended to read:

Subd. 2.

Authorization, terms, conditions, and prohibitions.

(a) deleted text begin In lieu of the interest,
finance charges, or fees in any other law, deleted text end A consumer small loan lender may charge deleted text begin the
following: deleted text end new text begin interest, finance charges, and fees. The sum of any interest, finance charges, and
fees must not exceed an annual percentage rate, as defined in section 47.59, subdivision 1,
paragraph (b), of 36 percent.
new text end

deleted text begin (1) on any amount up to and including $50, a charge of $5.50 may be added;
deleted text end

deleted text begin (2) on amounts in excess of $50, but not more than $100, a charge may be added equal
to ten percent of the loan proceeds plus a $5 administrative fee;
deleted text end

deleted text begin (3) on amounts in excess of $100, but not more than $250, a charge may be added equal
to seven percent of the loan proceeds with a minimum of $10 plus a $5 administrative fee;
deleted text end

deleted text begin (4) for amounts in excess of $250 and not greater than the maximum in subdivision 1,
paragraph (a), a charge may be added equal to six percent of the loan proceeds with a
minimum of $17.50 plus a $5 administrative fee.
deleted text end

(b) The term of a loan made under this section shall be for no more than 30 calendar
days.

(c) After maturity, the contract rate must not exceed 2.75 percent per month of the
remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly
rate in the contract for each calendar day the balance is outstanding.

(d) No insurance charges or other charges must be permitted to be charged, collected,
or imposed on a consumer small loan except as authorized in this section.

(e) On a loan transaction in which cash is advanced in exchange for a personal check,
a return check charge may be charged as authorized by section 604.113, subdivision 2,
paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph
(b), may not be demanded or assessed against the borrower.

(f) A loan made under this section must not be repaid by the proceeds of another loan
made under this section by the same lender or related interest. The proceeds from a loan
made under this section must not be applied to another loan from the same lender or related
interest. No loan to a single borrower made pursuant to this section shall be split or divided
and no single borrower shall have outstanding more than one loan with the result of collecting
a higher charge than permitted by this section or in an aggregate amount of principal exceed
at any one time the maximum of $350.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to consumer
short-term loans and small loans originated on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2020, section 47.601, subdivision 2, is amended to read:

Subd. 2.

Consumer short-term loan contract.

(a) No contract or agreement between
a consumer short-term loan lender and a borrower residing in Minnesota may contain the
following:

(1) a provision selecting a law other than Minnesota law under which the contract is
construed or enforced;

(2) a provision choosing a forum for dispute resolution other than the state of Minnesota;
or

(3) a provision limiting class actions against a consumer short-term lender for violations
of subdivision 3 or for making consumer short-term loans:

(i) without a required license issued by the commissioner; or

(ii) in which interest rates, fees, charges, or loan amounts exceed those allowable under
section deleted text begin 47.59, subdivision 6, or deleted text end 47.60, subdivision 2 deleted text begin , other than by de minimis amounts if
no pattern or practice exists deleted text end .

(b) Any provision prohibited by paragraph (a) is void and unenforceable.

(c) A consumer short-term loan lender must furnish a copy of the written loan contract
to each borrower. The contract and disclosures must be written in the language in which
the loan was negotiated with the borrower and must contain:

(1) the name; address, which may not be a post office box; and telephone number of the
lender making the consumer short-term loan;

(2) the name and title of the individual employee or representative who signs the contract
on behalf of the lender;

(3) an itemization of the fees and interest charges to be paid by the borrower;

(4) in bold, 24-point type, the annual percentage rate as computed under United States
Code, chapter 15, section 1606; and

(5) a description of the borrower's payment obligations under the loan.

(d) The holder or assignee of a check or other instrument evidencing an obligation of a
borrower in connection with a consumer short-term loan takes the instrument subject to all
claims by and defenses of the borrower against the consumer short-term lender.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to consumer
short-term loans and small loans originated on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2020, section 47.601, subdivision 6, is amended to read:

Subd. 6.

Penalties for violation; private right of action.

(a) Except for a "bona fide
error" as set forth under United States Code, chapter 15, section 1640, subsection (c), an
individual or entity who violates subdivision 2 or 3 is liable to the borrower for:

(1) all money collected or received in connection with the loan;

(2) actual, incidental, and consequential damages;

(3) statutory damages of up to $1,000 per violation;

(4) costs, disbursements, and reasonable attorney fees; and

(5) injunctive relief.

(b) In addition to the remedies provided in paragraph (a), a loan is void, and the borrower
is not obligated to pay any amounts owing if the loan is made:

(1) by a consumer short-term lender who has not obtained an applicable license from
the commissioner;

(2) in violation of any provision of subdivision 2 or 3; or

(3) in which interest, fees, charges, or loan amounts exceed the interest, fees, charges,
or loan amounts allowable under deleted text begin sections 47.59, subdivision 6, and deleted text end new text begin section new text end 47.60, subdivision
2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to consumer
short-term loans and small loans originated on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2020, section 48.512, subdivision 2, is amended to read:

Subd. 2.

Required information.

Before opening or authorizing signatory power over
a transaction account, a financial intermediary shall require one applicant to provide the
following information on an application document signed by the applicant:

(a) full name;

(b) birth date;

(c) address of residence;

(d) address of current employment, if employed;

(e) telephone numbers of residence and place of employment, if any;

(f) Social Security number;

(g) driver's license or identification card number issued pursuant to section 171.07. If
the applicant does not have a driver's license or identification card, the applicant may provide
an identification document number issued for identification purposes by any state, federal,
or foreign government if the document includes the applicant's photograph, full name, birth
date, and signature. deleted text begin A valid Wisconsin driver's license without a photograph may be accepted
in satisfaction of the requirement of this paragraph until January 1, 1985 deleted text end ;

(h) whether the applicant has had a transaction account at the same or another financial
intermediary within 12 months immediately preceding the application, and if so, the name
of the financial intermediary;

(i) whether the applicant has had a transaction account closed by a financial intermediary
without the applicant's consent within 12 months immediately preceding the application,
and if so, the reason the account was closed; and

(j) whether the applicant has been convicted of a criminal offense because of the use of
a check or other similar item within 24 months immediately preceding the application.

A financial intermediary may require an applicant to disclose additional information.

An applicant who makes a false material statement that the applicant does not believe
to be true in an application document with respect to information required to be provided
by this subdivision is guilty of perjury. The financial intermediary shall notify the applicant
of the provisions of this paragraph.

Sec. 7.

Minnesota Statutes 2020, section 48.512, subdivision 3, is amended to read:

Subd. 3.

Confirm no involuntary closing.

new text begin (a) new text end Before opening or authorizing signatory
power over a transaction account, the financial intermediary shall attempt to verify the
information disclosed for subdivision 2, clause (i). Inquiries made to verify this information
through persons in the business of providing such information must include an inquiry based
on the applicant's identification number provided under subdivision 2, clause (g).

new text begin (b) new text end The financial intermediary may not open or authorize signatory power over a
transaction account if (i) the applicant had a transaction account closed by a financial
intermediary without consent because of issuance by the applicant of dishonored checks
within 12 months immediately preceding the application, or (ii) the applicant has been
convicted of a criminal offense because of the use of a check or other similar item within
24 months immediately preceding the application. new text begin This paragraph does not apply to programs
designed to expand access to financial services to individuals who do not possess a transaction
account.
new text end

new text begin (c) new text end If the transaction account is refused pursuant to this subdivision, the reasons for the
refusal shall be given to the applicant in writing and the applicant shall be allowed to provide
additional information.

Sec. 8.

Minnesota Statutes 2020, section 48.512, subdivision 7, is amended to read:

Subd. 7.

Transaction account service charges and charges relating to dishonored
checks.

(a) The establishment of transaction account service charges and the amounts of
the charges not otherwise limited or prescribed by law or rule is a business decision to be
made by each financial intermediary according to sound business judgment and safe, sound
financial institution operational standards. In establishing transaction account service charges,
the financial intermediary may consider, but is not limited to considering:

(1) costs incurred by the institution, plus a profit margin, in providing the service;

(2) the deterrence of misuse by customers of financial institution services;

(3) the establishment of the competitive position of the financial institution in accordance
with the institution's marketing strategy; and

(4) maintenance of the safety and soundness of the institution.

(b) Transaction account service charges must be reasonable in relation to these
considerations and should be arrived at by each financial intermediary on a competitive
basis and not on the basis of any agreement, arrangement, undertaking, or discussion with
other financial intermediaries or their officers.

(c) A financial intermediary may not impose a service charge in excess of deleted text begin $4 deleted text end new text begin $10 new text end for a
dishonored check on any person other than the issuer of the check.

Sec. 9.

Minnesota Statutes 2020, section 53.04, subdivision 3a, is amended to read:

Subd. 3a.

Loans.

(a) The right to make loans, secured or unsecured, at the rates and on
the terms and other conditions permitted under chapters 47 and 334. Loans made under this
authority must be in amounts in compliance with section 53.05, clause (7). A licensee making
a loan under this chapter secured by a lien on real estate shall comply with the requirements
of section 47.20, subdivision 8. new text begin A licensee making a loan that is a consumer small loan, as
defined in section 47.60, subdivision 1, paragraph (a), must comply with section 47.60. A
licensee making a loan that is a consumer short-term loan, as defined in section 47.601,
subdivision 1, paragraph (d), must comply with section 47.601.
new text end

(b) Loans made under this subdivision may be secured by real or personal property, or
both. If the proceeds of a loan secured by a first lien on the borrower's primary residence
are used to finance the purchase of the borrower's primary residence, the loan must comply
with the provisions of section 47.20.

(c) An agency or instrumentality of the United States government or a corporation
otherwise created by an act of the United States Congress or a lender approved or certified
by the secretary of housing and urban development, or approved or certified by the
administrator of veterans affairs, or approved or certified by the administrator of the Farmers
Home Administration, or approved or certified by the Federal Home Loan Mortgage
Corporation, or approved or certified by the Federal National Mortgage Association, that
engages in the business of purchasing or taking assignments of mortgage loans and undertakes
direct collection of payments from or enforcement of rights against borrowers arising from
mortgage loans, is not required to obtain a certificate of authorization under this chapter in
order to purchase or take assignments of mortgage loans from persons holding a certificate
of authorization under this chapter.

(d) This subdivision does not authorize an industrial loan and thrift company to make
loans under an overdraft checking plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to consumer
short-term loans and small loans originated on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2020, section 56.131, subdivision 1, is amended to read:

Subdivision 1.

Interest rates and charges.

(a) On any loan in a principal amount not
exceeding $100,000 or 15 percent of a Minnesota corporate licensee's capital stock and
surplus as defined in section 53.015, if greater, a licensee may contract for and receive
interest, finance charges, and other charges as provided in section 47.59.

new text begin (b) Notwithstanding paragraph (a), a licensee making a loan that is a consumer small
loan, as defined in section 47.60, subdivision 1, paragraph (a), must comply with section
47.60. A licensee making a loan that is a consumer short-term loan, as defined in section
47.601, subdivision 1, paragraph (d), must comply with section 47.601.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end With respect to a loan secured by an interest in real estate, and having a maturity
of more than 60 months, the original schedule of installment payments must fully amortize
the principal and interest on the loan. The original schedule of installment payments for any
other loan secured by an interest in real estate must provide for payment amounts that are
sufficient to pay all interest scheduled to be due on the loan.

deleted text begin (c) deleted text end new text begin (d) new text end A licensee may contract for and collect a delinquency charge as provided for in
section 47.59, subdivision 6, paragraph (a), clause (4).

deleted text begin (d) deleted text end new text begin (e) new text end A licensee may grant extensions, deferments, or conversions to interest-bearing
as provided in section 47.59, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to consumer
short-term loans and small loans originated on or after that date.
new text end

Sec. 11.

new text begin [58B.01] TITLE.
new text end

new text begin This chapter may be cited as the "Student Loan Borrower Bill of Rights."
new text end

Sec. 12.

new text begin [58B.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of this chapter, the following terms have the meanings
given them.
new text end

new text begin Subd. 2. new text end

new text begin Borrower. new text end

new text begin "Borrower" means a resident of this state who has received or agreed
to pay a student loan or a person who shares responsibility with a resident for repaying a
student loan.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

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

new text begin Subd. 4. new text end

new text begin Financial institution. new text end

new text begin "Financial institution" means any of the following
organized under the laws of this state, any other state, or the United States: a bank, bank
and trust, trust company with banking powers, savings bank, savings association, or credit
union.
new text end

new text begin Subd. 5. new text end

new text begin Person in control. new text end

new text begin "Person in control" means any member of senior
management, including owners or officers, and other persons who directly or indirectly
possess the power to direct or cause the direction of the management policies of an applicant
or student loan servicer under this chapter, regardless of whether the person has any
ownership interest in the applicant or student loan servicer. Control is presumed to exist if
a person directly or indirectly owns, controls, or holds with power to vote ten percent or
more of the voting stock of an applicant or student loan servicer or of a person who owns,
controls, or holds with power to vote ten percent or more of the voting stock of an applicant
or student loan servicer.
new text end

new text begin Subd. 6. new text end

new text begin Servicing. new text end

new text begin "Servicing" means:
new text end

new text begin (1) receiving any scheduled periodic payments from a borrower or notification of
payments, and applying payments to the borrower's account pursuant to the terms of the
student loan or of the contract governing servicing;
new text end

new text begin (2) during a period when no payment is required on a student loan, maintaining account
records for the loan and communicating with the borrower regarding the loan, on behalf of
the loan's holder; and
new text end

new text begin (3) interacting with a borrower, including activities to help prevent default on obligations
arising from student loans, conducted to facilitate the requirements in clauses (1) and (2).
new text end

new text begin Subd. 7. new text end

new text begin Student loan. new text end

new text begin "Student loan" means a government, commercial, or foundation
loan for actual costs paid for tuition and reasonable education and living expenses.
new text end

new text begin Subd. 8. new text end

new text begin Student loan servicer. new text end

new text begin "Student loan servicer" means any person, wherever
located, responsible for the servicing of any student loan to any borrower, including a
nonbank covered person, as defined in Code of Federal Regulations, title 12, section
1090.101, who is responsible for the servicing of any student loan to any borrower.
new text end

Sec. 13.

new text begin [58B.03] LICENSING OF STUDENT LOAN SERVICERS.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin No person shall directly or indirectly act as a student
loan servicer without first obtaining a license from the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Exempt persons. new text end

new text begin The following persons are exempt from the requirements of
this chapter:
new text end

new text begin (1) a financial institution;
new text end

new text begin (2) a person servicing student loans made with the person's own funds, if no more than
three student loans are made in any 12-month period;
new text end

new text begin (3) an agency, instrumentality, or political subdivision of this state that makes, services,
or guarantees student loans;
new text end

new text begin (4) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a
specific order issued by a court of competent jurisdiction;
new text end

new text begin (5) the University of Minnesota; or
new text end

new text begin (6) a person exempted by order of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Application for licensure. new text end

new text begin (a) Any person seeking to act within the state as a
student loan servicer must apply for a license in a form and manner specified by the
commissioner. At a minimum, the application must include:
new text end

new text begin (1) a financial statement prepared by a certified public accountant or a public accountant;
new text end

new text begin (2) the history of criminal convictions, excluding traffic violations, for persons in control
of the applicant;
new text end

new text begin (3) any information requested by the commissioner related to the history of criminal
convictions disclosed under clause (2);
new text end

new text begin (4) a nonrefundable license fee established by the commissioner; and
new text end

new text begin (5) a nonrefundable investigation fee established by the commissioner.
new text end

new text begin (b) The commissioner may conduct a state and national criminal history records check
of the applicant and of each person in control or employee of the applicant.
new text end

new text begin Subd. 4. new text end

new text begin Issuance of a license. new text end

new text begin (a) Upon receipt of a complete application for an initial
license and the payment of fees for a license and investigation, the commissioner must
investigate the financial condition and responsibility, character, financial and business
experience, and general fitness of the applicant. The commissioner may issue a license if
the commissioner finds:
new text end

new text begin (1) the applicant's financial condition is sound;
new text end

new text begin (2) the applicant's business will be conducted honestly, fairly, equitably, carefully, and
efficiently within the purposes and intent of this chapter;
new text end

new text begin (3) each person in control of the applicant is in all respects properly qualified and of
good character;
new text end

new text begin (4) no person, on behalf of the applicant, has knowingly made any incorrect statement
of a material fact in the application or in any report or statement made pursuant to this
section;
new text end

new text begin (5) no person, on behalf of the applicant, has knowingly omitted any information required
by the commissioner from an application, report, or statement made pursuant to this section;
new text end

new text begin (6) the applicant has paid the fees required under this section; and
new text end

new text begin (7) the application has met other similar requirements as determined by the commissioner.
new text end

new text begin (b) A license issued under this chapter is not transferable or assignable.
new text end

new text begin Subd. 5. new text end

new text begin Notification of a change in status. new text end

new text begin An applicant or student loan servicer must
notify the commissioner in writing of any change in the information provided in the initial
application for a license or the most recent renewal application for a license. The notification
must be received no later than ten business days after the date of an event that results in the
information becoming inaccurate.
new text end

new text begin Subd. 6. new text end

new text begin Term of license. new text end

new text begin Licenses issued under this chapter expire on December 31 of
each year and are renewable on January 1.
new text end

new text begin Subd. 7. new text end

new text begin Exemption from application. new text end

new text begin (a) A person is exempt from the application
procedures under subdivision 3 if the commissioner determines that the person is servicing
student loans in this state pursuant to a contract awarded by the United States Secretary of
Education under United States Code, title 20, section 1087f. Documentation of eligibility
for this exemption shall be in a form and manner determined by the commissioner.
new text end

new text begin (b) A person determined to be eligible for the exemption under paragraph (a) shall, upon
payment of the fees under subdivision 3, be issued a license and deemed to meet all of the
requirements of subdivision 4.
new text end

new text begin Subd. 8. new text end

new text begin Notice. new text end

new text begin (a) A person issued a license under subdivision 7 must provide the
commissioner with written notice no less than seven days after the date the person's contract
under United States Code, title 20, section 1087f, expires, is revoked, or is terminated.
new text end

new text begin (b) A person issued a license under subdivision 7 has 30 days from the date the
notification under paragraph (a) is provided to complete the requirements of subdivision 3.
If a person does not meet the requirements of subdivision 3 within this time period, the
commissioner shall immediately suspend the person's license under this chapter.
new text end

Sec. 14.

new text begin [58B.04] LICENSING MULTIPLE PLACES OF BUSINESS.
new text end

new text begin A person licensed to act as a student loan servicer in this state is prohibited from servicing
student loans under any other name or at any other place of business than that named in the
license. Any time a student loan servicer changes the location of the servicer's place of
business, the servicer must provide prior written notice to the commissioner. A student loan
servicer may not maintain more than one place of business under the same license. The
commissioner may issue more than one license to the same student loan servicer, provided
that the servicer complies with the application procedures in section 58B.03 for each license.
new text end

Sec. 15.

new text begin [58B.05] LICENSE RENEWAL.
new text end

new text begin Subdivision 1. new text end

new text begin Term. new text end

new text begin Licenses are renewable on January 1 of each year.
new text end

new text begin Subd. 2. new text end

new text begin Timely renewal. new text end

new text begin (a) A person whose application is properly and timely filed
who has not received notice of denial of renewal is considered approved for renewal. The
person may continue to act as a student loan servicer whether or not the renewed license
has been received on or before January 1 of the renewal year. An application for renewal
of a license is considered timely filed if the application is received by the commissioner, or
mailed with proper postage and postmarked, by the December 15 before the renewal year.
An application for renewal is considered properly filed if the application is made upon forms
duly executed, accompanied by fees prescribed by this chapter, and containing any
information that the commissioner requires.
new text end

new text begin (b) A person who fails to make a timely application for renewal of a license and who
has not received the renewal license as of January 1 of the renewal year is unlicensed until
the renewal license has been issued by the commissioner and is received by the person.
new text end

new text begin Subd. 3. new text end

new text begin Contents of renewal application. new text end

new text begin An application for renewal of an existing
license must contain the information specified in section 58B.03, subdivision 3, except that
only the requested information having changed from the most recent prior application need
be submitted.
new text end

new text begin Subd. 4. new text end

new text begin Cancellation. new text end

new text begin A student loan servicer ceasing an activity or activities regulated
by this chapter and desiring to no longer be licensed shall inform the commissioner in writing
and, at the same time, surrender the license and all other symbols or indicia of licensure.
The licensee shall include a plan for the withdrawal from student loan servicing, including
a timetable for the disposition of the student loans being serviced.
new text end

new text begin Subd. 5. new text end

new text begin Renewal fees. new text end

new text begin The following fees must be paid to the commissioner for a
renewal license:
new text end

new text begin (1) a nonrefundable renewal license fee established by the commissioner; and
new text end

new text begin (2) a nonrefundable renewal investigation fee established by the commissioner.
new text end

Sec. 16.

new text begin [58B.06] DUTIES OF STUDENT LOAN SERVICERS.
new text end

new text begin Subdivision 1. new text end

new text begin Response requirements. new text end

new text begin Upon receiving a written communication from
a borrower, a student loan servicer must:
new text end

new text begin (1) acknowledge receipt of the communication in less than ten days from the date the
communication is received; and
new text end

new text begin (2) provide information relating to the communication and, if applicable, the action the
student loan servicer will take to either (i) correct the borrower's issue or (ii) explain why
the issue cannot be corrected. The information must be provided less than 30 days after the
date the written communication was received by the student loan servicer.
new text end

new text begin Subd. 2. new text end

new text begin Overpayments. new text end

new text begin (a) A student loan servicer must ask a borrower in what manner
the borrower would like any overpayment to be applied to a student loan. A borrower's
instruction regarding the application of overpayments is effective for the term of the loan
or until the borrower provides a different instruction.
new text end

new text begin (b) For purposes of this subdivision, "overpayment" means a payment on a student loan
that exceeds the monthly amount due.
new text end

new text begin Subd. 3. new text end

new text begin Partial payments. new text end

new text begin (a) A student loan servicer must apply a partial payment in
a manner intended to minimize late fees and the negative impact on the borrower's credit
history. If a borrower has multiple student loans with the same student loan servicer, upon
receipt of a partial payment the servicer must apply the payments to satisfy as many
individual loan payments as possible.
new text end

new text begin (b) For purposes of this subdivision, "partial payment" means a payment on a student
loan that is less than the monthly amount due.
new text end

new text begin Subd. 4. new text end

new text begin Transfer of student loan. new text end

new text begin (a) If a borrower's student loan servicer changes
pursuant to the sale, assignment, or transfer of the servicing, the original student loan servicer
must:
new text end

new text begin (1) require the new student loan servicer to honor all benefits that were made available,
or which may have become available, to a borrower from the original student loan servicer;
and
new text end

new text begin (2) transfer to the new student loan servicer all information regarding the borrower, the
account of the borrower, and the borrower's student loan, including but not limited to the
repayment status of the student loan and the benefits described in clause (1).
new text end

new text begin (b) The student loan servicer must complete the transfer under paragraph (a), clause (2),
less than 45 days from the date of the sale, assignment, or transfer of the servicing.
new text end

new text begin (c) A sale, assignment, or transfer of the servicing must be completed no less than seven
days from the date the next payment is due on the student loan.
new text end

new text begin (d) A new student loan servicer must adopt policies and procedures to verify that the
original student loan servicer has met the requirements of paragraph (a).
new text end

new text begin Subd. 5. new text end

new text begin Income-driven repayment. new text end

new text begin A student loan servicer must evaluate a borrower
for eligibility for an income-driven repayment program before placing a borrower in
forbearance or default.
new text end

new text begin Subd. 6. new text end

new text begin Records. new text end

new text begin A student loan servicer must maintain adequate records of each student
loan for not less than two years following the final payment on the student loan or the sale,
assignment, or transfer of the servicing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, and applies to student loan
contracts executed on or after that date.
new text end

Sec. 17.

new text begin [58B.07] PROHIBITED CONDUCT.
new text end

new text begin Subdivision 1. new text end

new text begin Misleading borrowers. new text end

new text begin A student loan servicer must not directly or
indirectly attempt to mislead a borrower.
new text end

new text begin Subd. 2. new text end

new text begin Misrepresentation. new text end

new text begin A student loan servicer must not engage in any unfair or
deceptive practice or misrepresent or omit any material information in connection with the
servicing of a student loan, including but not limited to misrepresenting the amount, nature,
or terms of any fee or payment due or claimed to be due on a student loan, the terms and
conditions of the loan agreement, or the borrower's obligations under the loan.
new text end

new text begin Subd. 3. new text end

new text begin Misapplication of payments. new text end

new text begin A student loan servicer must not knowingly or
negligently misapply student loan payments.
new text end

new text begin Subd. 4. new text end

new text begin Inaccurate information. new text end

new text begin A student loan servicer must not knowingly or
negligently provide inaccurate information to any consumer reporting agency.
new text end

new text begin Subd. 5. new text end

new text begin Reporting of payment history. new text end

new text begin A student loan servicer must not fail to report
both the favorable and unfavorable payment history of the borrower to a consumer reporting
agency at least annually, if the student loan servicer regularly reports payment history
information.
new text end

new text begin Subd. 6. new text end

new text begin Refusal to communicate with a borrower's representative. new text end

new text begin A student loan
servicer must not refuse to communicate with a representative of the borrower who provides
a written authorization signed by the borrower. The student loan servicer may adopt
procedures reasonably related to verifying that the representative is in fact authorized to act
on behalf of the borrower.
new text end

new text begin Subd. 7. new text end

new text begin False statements and omissions. new text end

new text begin A student loan servicer must not knowingly
or negligently make any false statement or omission of material fact in connection with any
application, information, or reports filed with the commissioner or any other federal, state,
or local government agency.
new text end

new text begin Subd. 8. new text end

new text begin Noncompliance with applicable laws. new text end

new text begin A student loan servicer must not violate
any other federal, state, or local laws, including those related to fraudulent, coercive, or
dishonest practices.
new text end

new text begin Subd. 9. new text end

new text begin Incorrect information regarding student loan forgiveness. new text end

new text begin A student loan
servicer must not misrepresent the availability of student loan forgiveness for which the
servicer has reason to know the borrower is eligible. This includes but is not limited to
student loan forgiveness programs specific to military borrowers, borrowers working in
public service, or borrowers with disabilities.
new text end

new text begin Subd. 10. new text end

new text begin Compliance with servicer duties. new text end

new text begin A student loan servicer must comply with
the duties and obligations under section 58B.06.
new text end

Sec. 18.

new text begin [58B.08] EXAMINATIONS.
new text end

new text begin The commissioner has the same powers with respect to examinations of student loan
servicers under this chapter that the commissioner has under section 46.04.
new text end

Sec. 19.

new text begin [58B.09] DENIAL; SUSPENSION; REVOCATION OF LICENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Powers of commissioner. new text end

new text begin (a) The commissioner may by order take any
or all of the following actions:
new text end

new text begin (1) bar a person from engaging in student loan servicing;
new text end

new text begin (2) deny, suspend, or revoke a student loan servicer license;
new text end

new text begin (3) censure a student loan servicer;
new text end

new text begin (4) impose a civil penalty, as provided in section 45.027, subdivision 6;
new text end

new text begin (5) order restitution to the borrower, if applicable; or
new text end

new text begin (6) revoke an exemption.
new text end

new text begin (b) In order to take the action in paragraph (a), the commissioner must find:
new text end

new text begin (1) the order is in the public interest; and
new text end

new text begin (2) the student loan servicer, applicant, person in control, employee, or agent has:
new text end

new text begin (i) violated any provision of this chapter or a rule or order adopted or issued under this
chapter;
new text end

new text begin (ii) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, or
dishonest act or practice, including but not limited to negligently making a false statement
or knowingly omitting a material fact, whether or not the act or practice involves student
loan servicing;
new text end

new text begin (iii) engaged in an act or practice that demonstrates untrustworthiness, financial
irresponsibility, or incompetence, whether or not the act or practice involves student loan
servicing;
new text end

new text begin (iv) pled guilty or nolo contendere to or been convicted of a felony, gross misdemeanor,
or misdemeanor;
new text end

new text begin (v) paid a civil penalty or been the subject of a disciplinary action by the commissioner,
order of suspension or revocation, cease and desist order, injunction order, or order barring
involvement in an industry or profession issued by the commissioner or any other federal,
state, or local government agency;
new text end

new text begin (vi) been found by a court of competent jurisdiction to have engaged in conduct
evidencing gross negligence, fraud, misrepresentation, or deceit;
new text end

new text begin (vii) refused to cooperate with an investigation or examination by the commissioner;
new text end

new text begin (viii) failed to pay any fee or assessment imposed by the commissioner; or
new text end

new text begin (ix) failed to comply with state and federal tax obligations.
new text end

new text begin Subd. 2. new text end

new text begin Orders of the commissioner. new text end

new text begin To begin a proceeding under this section, the
commissioner shall issue an order requiring the subject of the proceeding to show cause
why action should not be taken against the person according to this section. The order must
be calculated to give reasonable notice of the time and place for the hearing and must state
the reasons for entry of the order. The commissioner may by order summarily suspend a
license or exemption or summarily bar a person from engaging in student loan servicing
pending a final determination of an order to show cause. If a license or exemption is
summarily suspended or if the person is summarily barred from any involvement in the
servicing of student loans pending final determination of an order to show cause, a hearing
on the merits must be held within 30 days of the issuance of the order of summary suspension
or bar. All hearings must be conducted under chapter 14. After the hearing, the commissioner
shall enter an order disposing of the matter as the facts require. If the subject of the order
fails to appear at a hearing after having been duly notified, the person is considered in default
and the proceeding may be determined against the subject of the order upon consideration
of the order to show cause, the allegations of which may be considered to be true.
new text end

new text begin Subd. 3. new text end

new text begin Actions against lapsed license. new text end

new text begin If a license or certificate of exemption lapses;
is surrendered, withdrawn, or terminated; or otherwise becomes ineffective, the commissioner
may (1) institute a proceeding under this subdivision within two years after the license or
certificate of exemption was last effective and enter a revocation or suspension order as of
the last date on which the license or certificate of exemption was in effect, and (2) impose
a civil penalty as provided for in this section or section 45.027, subdivision 6.
new text end

Sec. 20.

new text begin [58B.10] DATA PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Classification of data. new text end

new text begin Data collected, created, received, maintained, or
disseminated by the Department of Commerce under this chapter are governed by section
46.07.
new text end

new text begin Subd. 2. new text end

new text begin Data sharing. new text end

new text begin To the extent data collected, created, received, maintained, or
disseminated under this chapter are not public data as defined by section 13.02, subdivision
8a, the data may, when necessary to accomplish the purpose of this chapter, be shared
between:
new text end

new text begin (1) the United States Department of Education;
new text end

new text begin (2) the Office of Higher Education;
new text end

new text begin (3) the Department of Commerce;
new text end

new text begin (4) the Office of the Attorney General; and
new text end

new text begin (5) any other local, state, and federal law enforcement agencies.
new text end

Sec. 21.

Minnesota Statutes 2020, section 65B.15, subdivision 1, is amended to read:

Subdivision 1.

Grounds and notice.

No cancellation or reduction in the limits of liability
of coverage during the policy period of any policy shall be effective unless notice thereof
is given and unless based on one or more reasons stated in the policy which shall be limited
to the following:

1. nonpayment of premium; or

2. the policy was obtained through a material misrepresentation; or

3. any insured made a false or fraudulent claim or knowingly aided or abetted another
in the presentation of such a claim; or

4. the named insured failed to disclose fully motor vehicle accidents and moving traffic
violations of the named insured for the preceding 36 months if called for in the written
application; or

5. the named insured failed to disclose in the written application any requested information
necessary for the acceptance or proper rating of the risk; or

6. the named insured knowingly failed to give any required written notice of loss or
notice of lawsuit commenced against the named insured, or, when requested, refused to
cooperate in the investigation of a claim or defense of a lawsuit; or

7. the named insured or any other operator who either resides in the same household, or
customarily operates an automobile insured under such policy, unless the other operator is
identified as a named insured in another policy as an insured:

(a) has, within the 36 months prior to the notice of cancellation, had that person's driver's
license under suspension or revocation because the person committed a moving traffic
violation or because the person refused to be tested under section 169A.20, subdivision 1;
or

(b) is or becomes subject to epilepsy or heart attacks, and such individual does not
produce a written opinion from a physician testifying to that person's medical ability to
operate a motor vehicle safely, such opinion to be based upon a reasonable medical
probability; or

(c) has an accident record, conviction record (criminal or traffic), physical condition or
mental condition, any one or all of which are such that the person's operation of an automobile
might endanger the public safety; or

(d) has been convicted, or forfeited bail, during the 24 months immediately preceding
the notice of cancellation for criminal negligence in the use or operation of an automobile,
or assault arising out of the operation of a motor vehicle, or operating a motor vehicle while
in an intoxicated condition or while under the influence of drugs; or leaving the scene of
an accident without stopping to report; or making false statements in an application for a
driver's license, or theft or unlawful taking of a motor vehicle; or

(e) has been convicted of, or forfeited bail for, one or more violations within the 18
months immediately preceding the notice of cancellation, of any law, ordinance, or rule
which justify a revocation of a driver's license; or

8. the insured automobile is:

(a) so mechanically defective that its operation might endanger public safety; or

(b) used in carrying passengers for hire or compensation, provided however that the use
of an automobile for a car pool new text begin or a private passenger vehicle used by a volunteer driver,
as defined under section 65B.472, subdivision 1, paragraph (h), new text end shall not be considered use
of an automobile for hire or compensation; or

(c) used in the business of transportation of flammables or explosives; or

(d) an authorized emergency vehicle; or

(e) subject to an inspection law and has not been inspected or, if inspected, has failed
to qualify within the period specified under such inspection law; or

(f) substantially changed in type or condition during the policy period, increasing the
risk substantially, such as conversion to a commercial type vehicle, a dragster, sports car
or so as to give clear evidence of a use other than the original use.

Sec. 22.

Minnesota Statutes 2020, section 65B.43, subdivision 12, is amended to read:

Subd. 12.

Commercial vehicle.

"Commercial vehicle" means:

(a) any motor vehicle used as a common carrier,

(b) any motor vehicle, other than a passenger vehicle defined in section 168.002,
subdivision 24, which has a curb weight in excess of 5,500 pounds apart from cargo capacity,
or

(c) any motor vehicle while used in the for-hire transportation of property.

Commercial vehicle does not include a "commuter van," which for purposes of this
chapter deleted text begin shall mean deleted text end new text begin means (1) new text end a motor vehicle having a capacity of seven to 16 persons
which is used principally to provide prearranged transportation of persons to or from their
place of employment or to or from a transit stop authorized by a local transit authority which
vehicle is to be operated by a person who does not drive the vehicle as a principal occupation
but is driving it only to or from the principal place of employment, to or from a transit stop
authorized by a local transit authority or new text begin , new text end for personal use as permitted by the owner of the
vehicle new text begin , or (2) a private passenger vehicle driven by a volunteer driver new text end .

Sec. 23.

Minnesota Statutes 2020, section 65B.472, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) Unless a different meaning is expressly made applicable,
the terms defined in paragraphs (b) through (g) have the meanings given them for the
purposes of this chapter.

(b) A "digital network" means any online-enabled application, software, website, or
system offered or utilized by a transportation network company that enables the
prearrangement of rides with transportation network company drivers.

(c) A "personal vehicle" means a vehicle that is used by a transportation network company
driver in connection with providing a prearranged ride and is:

(1) owned, leased, or otherwise authorized for use by the transportation network company
driver; and

(2) not a taxicab, limousine, deleted text begin or deleted text end for-hire vehicle new text begin , or a private passenger vehicle driven
by a volunteer driver new text end .

(d) A "prearranged ride" means the provision of transportation by a driver to a rider,
beginning when a driver accepts a ride requested by a rider through a digital network
controlled by a transportation network company, continuing while the driver transports a
requesting rider, and ending when the last requesting rider departs from the personal vehicle.
A prearranged ride does not include transportation provided using a taxicab, limousine, or
other for-hire vehicle.

(e) A "transportation network company" means a corporation, partnership, sole
proprietorship, or other entity that is operating in Minnesota that uses a digital network to
connect transportation network company riders to transportation network company drivers
who provide prearranged rides.

(f) A "transportation network company driver" or "driver" means an individual who:

(1) receives connections to potential riders and related services from a transportation
network company in exchange for payment of a fee to the transportation network company;
and

(2) uses a personal vehicle to provide a prearranged ride to riders upon connection
through a digital network controlled by a transportation network company in return for
compensation or payment of a fee.

(g) A "transportation network company rider" or "rider" means an individual or persons
who use a transportation network company's digital network to connect with a transportation
network driver who provides prearranged rides to the rider in the driver's personal vehicle
between points chosen by the rider.

new text begin (h) A "volunteer driver" means an individual who transports persons or goods on behalf
of a nonprofit entity or governmental unit in a private passenger vehicle and receives no
compensation for services provided other than the reimbursement of actual expenses.
new text end

Sec. 24.

Minnesota Statutes 2020, section 174.29, subdivision 1, is amended to read:

Subdivision 1.

Definition.

For the purpose of sections 174.29 and 174.30 "special
transportation service" means motor vehicle transportation provided on a regular basis by
a public or private entity or person that is designed exclusively or primarily to serve
individuals who are elderly or disabled and who are unable to use regular means of
transportation but do not require ambulance service, as defined in section 144E.001,
subdivision 3. Special transportation service includes but is not limited to service provided
by specially equipped buses, vans, taxis, and volunteers driving private automobiles new text begin , as
defined in section 65B.472, subdivision 1, paragraph (h) new text end . Special transportation service also
means those nonemergency medical transportation services under section 256B.0625,
subdivision 17, that are subject to the operating standards for special transportation service
under sections 174.29 to 174.30 and Minnesota Rules, chapter 8840.

Sec. 25.

Minnesota Statutes 2020, section 174.30, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

(a) The operating standards for special transportation
service adopted under this section do not apply to special transportation provided by:

(1) a public transit provider receiving financial assistance under sections 174.24 or
473.371 to 473.449;

(2) a volunteer driver new text begin , as defined in section 65B.472, subdivision 1, paragraph (h), new text end using
a private automobile;

(3) a school bus as defined in section 169.011, subdivision 71; or

(4) an emergency ambulance regulated under chapter 144.

(b) The operating standards adopted under this section only apply to providers of special
transportation service who receive grants or other financial assistance from either the state
or the federal government, or both, to provide or assist in providing that service; except that
the operating standards adopted under this section do not apply to any nursing home licensed
under section 144A.02, to any board and care facility licensed under section 144.50, or to
any day training and habilitation services, day care, or group home facility licensed under
sections 245A.01 to 245A.19 unless the facility or program provides transportation to
nonresidents on a regular basis and the facility receives reimbursement, other than per diem
payments, for that service under rules promulgated by the commissioner of human services.

(c) Notwithstanding paragraph (b), the operating standards adopted under this section
do not apply to any vendor of services licensed under chapter 245D that provides
transportation services to consumers or residents of other vendors licensed under chapter
245D and transports 15 or fewer persons, including consumers or residents and the driver.

Sec. 26.

Minnesota Statutes 2020, section 174.30, subdivision 10, is amended to read:

Subd. 10.

Background studies.

(a) Providers of special transportation service regulated
under this section must initiate background studies in accordance with chapter 245C on the
following individuals:

(1) each person with a direct or indirect ownership interest of five percent or higher in
the transportation service provider;

(2) each controlling individual as defined under section 245A.02;

(3) managerial officials as defined in section 245A.02;

(4) each driver employed by the transportation service provider;

(5) each individual employed by the transportation service provider to assist a passenger
during transport; and

(6) all employees of the transportation service agency who provide administrative support,
including those who:

(i) may have face-to-face contact with or access to passengers, their personal property,
or their private data;

(ii) perform any scheduling or dispatching tasks; or

(iii) perform any billing activities.

(b) The transportation service provider must initiate the background studies required
under paragraph (a) using the online NETStudy system operated by the commissioner of
human services.

(c) The transportation service provider shall not permit any individual to provide any
service or function listed in paragraph (a) until the transportation service provider has
received notification from the commissioner of human services indicating that the individual:

(1) is not disqualified under chapter 245C; or

(2) is disqualified, but has received a set-aside of that disqualification according to
sections 245C.22 and 245C.23 related to that transportation service provider.

(d) When a local or contracted agency is authorizing a ride under section 256B.0625,
subdivision 17, by a volunteer driver, new text begin as defined in section 65B.472, subdivision 1, paragraph
(h), new text end and the agency authorizing the ride has reason to believe the volunteer driver has a
history that would disqualify the individual or that may pose a risk to the health or safety
of passengers, the agency may initiate a background study to be completed according to
chapter 245C using the commissioner of human services' online NETStudy system, or
through contacting the Department of Human Services background study division for
assistance. The agency that initiates the background study under this paragraph shall be
responsible for providing the volunteer driver with the privacy notice required under section
245C.05, subdivision 2c, and payment for the background study required under section
245C.10, subdivision 11, before the background study is completed.

Sec. 27.

Minnesota Statutes 2020, section 221.031, subdivision 3b, is amended to read:

Subd. 3b.

Passenger transportation; exemptions.

(a) A person who transports
passengers for hire in intrastate commerce, who is not made subject to the rules adopted in
section 221.0314 by any other provision of this section, must comply with the rules for
hours of service of drivers while transporting employees of an employer who is directly or
indirectly paying the cost of the transportation.

(b) This subdivision does not apply to:

(1) a local transit commission;

(2) a transit authority created by law; or

(3) persons providing transportation:

(i) in a school bus as defined in section 169.011, subdivision 71;

(ii) in a Head Start bus as defined in section 169.011, subdivision 34;

(iii) in a commuter van;

(iv) in an authorized emergency vehicle as defined in section 169.011, subdivision 3;

(v) in special transportation service certified by the commissioner under section 174.30;

(vi) that is special transportation service as defined in section 174.29, subdivision 1,
when provided by a volunteer driver new text begin , as defined in section 65B.472, subdivision 1, paragraph
(h), new text end operating a private passenger vehicle as defined in section 169.011, subdivision 52;

(vii) in a limousine the service of which is licensed by the commissioner under section
221.84; or

(viii) in a taxicab, if the fare for the transportation is determined by a meter inside the
taxicab that measures the distance traveled and displays the fare accumulated.

Sec. 28.

Minnesota Statutes 2020, section 256B.0625, subdivision 17, is amended to read:

Subd. 17.

Transportation costs.

(a) "Nonemergency medical transportation service"
means motor vehicle transportation provided by a public or private person that serves
Minnesota health care program beneficiaries who do not require emergency ambulance
service, as defined in section 144E.001, subdivision 3, to obtain covered medical services.

(b) Medical assistance covers medical transportation costs incurred solely for obtaining
emergency medical care or transportation costs incurred by eligible persons in obtaining
emergency or nonemergency medical care when paid directly to an ambulance company,
nonemergency medical transportation company, or other recognized providers of
transportation services. Medical transportation must be provided by:

(1) nonemergency medical transportation providers who meet the requirements of this
subdivision;

(2) ambulances, as defined in section 144E.001, subdivision 2;

(3) taxicabs that meet the requirements of this subdivision;

(4) public transit, as defined in section 174.22, subdivision 7; or

(5) not-for-hire vehicles, including volunteer drivers new text begin , as defined in section 65B.472,
subdivision 1, paragraph (h) new text end .

(c) Medical assistance covers nonemergency medical transportation provided by
nonemergency medical transportation providers enrolled in the Minnesota health care
programs. All nonemergency medical transportation providers must comply with the
operating standards for special transportation service as defined in sections 174.29 to 174.30
and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the
commissioner and reported on the claim as the individual who provided the service. All
nonemergency medical transportation providers shall bill for nonemergency medical
transportation services in accordance with Minnesota health care programs criteria. Publicly
operated transit systems, volunteers, and not-for-hire vehicles are exempt from the
requirements outlined in this paragraph.

(d) An organization may be terminated, denied, or suspended from enrollment if:

(1) the provider has not initiated background studies on the individuals specified in
section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or

(2) the provider has initiated background studies on the individuals specified in section
174.30, subdivision 10, paragraph (a), clauses (1) to (3), and:

(i) the commissioner has sent the provider a notice that the individual has been
disqualified under section 245C.14; and

(ii) the individual has not received a disqualification set-aside specific to the special
transportation services provider under sections 245C.22 and 245C.23.

(e) The administrative agency of nonemergency medical transportation must:

(1) adhere to the policies defined by the commissioner in consultation with the
Nonemergency Medical Transportation Advisory Committee;

(2) pay nonemergency medical transportation providers for services provided to
Minnesota health care programs beneficiaries to obtain covered medical services;

(3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled
trips, and number of trips by mode; and

(4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single
administrative structure assessment tool that meets the technical requirements established
by the commissioner, reconciles trip information with claims being submitted by providers,
and ensures prompt payment for nonemergency medical transportation services.

(f) Until the commissioner implements the single administrative structure and delivery
system under subdivision 18e, clients shall obtain their level-of-service certificate from the
commissioner or an entity approved by the commissioner that does not dispatch rides for
clients using modes of transportation under paragraph (i), clauses (4), (5), (6), and (7).

(g) The commissioner may use an order by the recipient's attending physician, advanced
practice registered nurse, or a medical or mental health professional to certify that the
recipient requires nonemergency medical transportation services. Nonemergency medical
transportation providers shall perform driver-assisted services for eligible individuals, when
appropriate. Driver-assisted service includes passenger pickup at and return to the individual's
residence or place of business, assistance with admittance of the individual to the medical
facility, and assistance in passenger securement or in securing of wheelchairs, child seats,
or stretchers in the vehicle.

Nonemergency medical transportation providers must take clients to the health care
provider using the most direct route, and must not exceed 30 miles for a trip to a primary
care provider or 60 miles for a trip to a specialty care provider, unless the client receives
authorization from the local agency.

Nonemergency medical transportation providers may not bill for separate base rates for
the continuation of a trip beyond the original destination. Nonemergency medical
transportation providers must maintain trip logs, which include pickup and drop-off times,
signed by the medical provider or client, whichever is deemed most appropriate, attesting
to mileage traveled to obtain covered medical services. Clients requesting client mileage
reimbursement must sign the trip log attesting mileage traveled to obtain covered medical
services.

(h) The administrative agency shall use the level of service process established by the
commissioner in consultation with the Nonemergency Medical Transportation Advisory
Committee to determine the client's most appropriate mode of transportation. If public transit
or a certified transportation provider is not available to provide the appropriate service mode
for the client, the client may receive a onetime service upgrade.

(i) The covered modes of transportation are:

(1) client reimbursement, which includes client mileage reimbursement provided to
clients who have their own transportation, or to family or an acquaintance who provides
transportation to the client;

(2) volunteer transport, which includes transportation by volunteers using their own
vehicle;

(3) unassisted transport, which includes transportation provided to a client by a taxicab
or public transit. If a taxicab or public transit is not available, the client can receive
transportation from another nonemergency medical transportation provider;

(4) assisted transport, which includes transport provided to clients who require assistance
by a nonemergency medical transportation provider;

(5) lift-equipped/ramp transport, which includes transport provided to a client who is
dependent on a device and requires a nonemergency medical transportation provider with
a vehicle containing a lift or ramp;

(6) protected transport, which includes transport provided to a client who has received
a prescreening that has deemed other forms of transportation inappropriate and who requires
a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety
locks, a video recorder, and a transparent thermoplastic partition between the passenger and
the vehicle driver; and (ii) who is certified as a protected transport provider; and

(7) stretcher transport, which includes transport for a client in a prone or supine position
and requires a nonemergency medical transportation provider with a vehicle that can transport
a client in a prone or supine position.

(j) The local agency shall be the single administrative agency and shall administer and
reimburse for modes defined in paragraph (i) according to paragraphs (m) and (n) when the
commissioner has developed, made available, and funded the web-based single administrative
structure, assessment tool, and level of need assessment under subdivision 18e. The local
agency's financial obligation is limited to funds provided by the state or federal government.

(k) The commissioner shall:

(1) in consultation with the Nonemergency Medical Transportation Advisory Committee,
verify that the mode and use of nonemergency medical transportation is appropriate;

(2) verify that the client is going to an approved medical appointment; and

(3) investigate all complaints and appeals.

(l) The administrative agency shall pay for the services provided in this subdivision and
seek reimbursement from the commissioner, if appropriate. As vendors of medical care,
local agencies are subject to the provisions in section 256B.041, the sanctions and monetary
recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245.

(m) Payments for nonemergency medical transportation must be paid based on the client's
assessed mode under paragraph (h), not the type of vehicle used to provide the service. The
medical assistance reimbursement rates for nonemergency medical transportation services
that are payable by or on behalf of the commissioner for nonemergency medical
transportation services are:

(1) $0.22 per mile for client reimbursement;

(2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer
transport;

(3) equivalent to the standard fare for unassisted transport when provided by public
transit, and $11 for the base rate and $1.30 per mile when provided by a nonemergency
medical transportation provider;

(4) $13 for the base rate and $1.30 per mile for assisted transport;

(5) $18 for the base rate and $1.55 per mile for lift-equipped/ramp transport;

(6) $75 for the base rate and $2.40 per mile for protected transport; and

(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for
an additional attendant if deemed medically necessary.

(n) The base rate for nonemergency medical transportation services in areas defined
under RUCA to be super rural is equal to 111.3 percent of the respective base rate in
paragraph (m), clauses (1) to (7). The mileage rate for nonemergency medical transportation
services in areas defined under RUCA to be rural or super rural areas is:

(1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7); and

(2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage
rate in paragraph (m), clauses (1) to (7).

(o) For purposes of reimbursement rates for nonemergency medical transportation
services under paragraphs (m) and (n), the zip code of the recipient's place of residence
shall determine whether the urban, rural, or super rural reimbursement rate applies.

(p) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means
a census-tract based classification system under which a geographical area is determined
to be urban, rural, or super rural.

(q) The commissioner, when determining reimbursement rates for nonemergency medical
transportation under paragraphs (m) and (n), shall exempt all modes of transportation listed
under paragraph (i) from Minnesota Rules, part 9505.0445, item R, subitem (2).

Sec. 29.

Minnesota Statutes 2020, section 325E.21, is amended by adding a subdivision
to read:

new text begin Subd. 2b. new text end

new text begin Purchase of catalytic converters. new text end

new text begin (a) Any person who purchases or receives
a catalytic converter must comply with this section.
new text end

new text begin (b) Every scrap metal dealer, including an agent, employee, or representative of the
dealer, must create a permanent record, written in English and using an electronic record
program, at the time of each catalytic converter purchase or acquisition. The record must
include:
new text end

new text begin (1) the vehicle identification number of the vehicle from which the catalytic converter
was removed; and
new text end

new text begin (2) the name of the person who removed the catalytic converter.
new text end

new text begin (c) A scrap metal dealer must make the information under paragraph (b) available for
examination by a law enforcement agency or a person who has reported theft of a catalytic
converter.
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. 30.

Minnesota Statutes 2020, section 325E.21, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Catalytic converter theft prevention pilot project. new text end

new text begin (a) The catalytic converter
theft prevention pilot project is created to deter the theft of catalytic converters by marking
catalytic converters with vehicle identification numbers or other unique identifiers.
new text end

new text begin (b) The commissioner must establish a procedure to mark the catalytic converters of
vehicles most likely to be targeted for theft with unique identification numbers using labels,
engraving, theft deterrence paint, or other methods that permanently mark the catalytic
converter without damaging the catalytic converter's function.
new text end

new text begin (c) The commissioner must work with law enforcement agencies, insurance companies,
and scrap metal dealers to (1) identify vehicles that are most frequently targeted for catalytic
converter theft, and (2) establish the most effective methods for marking catalytic converters.
new text end

new text begin (d) Materials purchased under this program may be distributed to dealers, as defined in
section 168.002, subdivision 6, automobile repair shops and service centers, law enforcement
agencies, and community organizations to arrange the catalytic converters of vehicles most
likely to be targeted for theft to be marked at no cost to the vehicle owners.
new text end

new text begin (e) The commissioner may prioritize distribution of materials to areas experiencing the
highest rates of catalytic converter theft.
new text end

new text begin (f) The commissioner must make educational information resulting form the pilot program
available to law enforcement agencies and scrap metal dealers, and is encouraged to publicize
the program to the general public.
new text end

new text begin (g) The commissioner must include a report on the pilot project in the report required
under section 65B.84, subdivision 2. The report must describe the progress, results, and any
findings of the pilot project including the total number of catalytic converters marked under
the program, and, to the extent known, whether any catalytic converters marked under the
pilot project were stolen and the outcome of any criminal investigation into the thefts.
new text end

Sec. 31.

new text begin [325E.80] ABNORMAL MARKET DISRUPTIONS; UNCONSCIONABLY
EXCESSIVE PRICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Abnormal market disruption" means a change in the market resulting from a natural
or man-made disaster, a national or local emergency, a public health emergency, or an event
resulting in a declaration of a state of emergency by the governor; and occurs when
specifically declared by the governor. The governor's declaration of an abnormal market
disruption must note the geographic area to which this section applies. An abnormal market
disruption terminates no later than 30 days after the end of the state of emergency for which
the abnormal market disruption was activated.
new text end

new text begin (c) "Essential consumer good or service" means a good or service vital and necessary
for the health, safety, and welfare of the public, including without limitation: food; water;
fuel; gasoline; shelter; transportation; health care services; pharmaceuticals; and medical,
personal hygiene, sanitation, and cleaning supplies.
new text end

new text begin (d) "Seller" means a manufacturer, supplier, wholesaler, distributor, or retail seller of
goods or services.
new text end

new text begin (e) "Unconscionably excessive" means there is a gross disparity between the seller's
price of a good or service offered for sale or sold in the usual course of business during the
30 days immediately prior to the governor's declaration of an abnormal market disruption
and the seller's price of the same or similar good or service after the governor's declaration
of an abnormal market disruption, and the gross disparity is not substantially related to an
increase in the cost of obtaining or selling the good or of providing the service. A gross
disparity between the price of a good or service does not occur when the amount charged
after the abnormal market disruption increased the price 30 percent or less.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition. new text end

new text begin If the governor declares an abnormal market disruption a person
is prohibited from selling or offering to sell an essential consumer good or service for an
amount that represents an unconscionably excessive price.
new text end

new text begin Subd. 3. new text end

new text begin Civil penalty. new text end

new text begin A person who is found to have violated this section is subject
to a civil penalty of not more than $1,000 per sale or transaction, with a maximum penalty
of $10,000 per day.
new text end

new text begin Subd. 4. new text end

new text begin Enforcement authority. new text end

new text begin The attorney general may investigate an alleged
violation of this section. The authority of the attorney general under this section includes
but is not limited to the authority provided under section 8.31.
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. 32.

Minnesota Statutes 2020, section 325F.171, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Enforcement. new text end

new text begin This section may be enforced as provided under sections 325F.10
to 325F.12, 325F.14 to 325F.16, and 45.027, subdivisions 1 to 6. The commissioner may
coordinate with the commissioner of the Pollution Control Agency and the commissioner
of health to enforce this section.
new text end

Sec. 33.

Minnesota Statutes 2020, section 325F.172, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Enforcement. new text end

new text begin Sections 325F.173 to 325F.175 may be enforced as provided
under sections 325F.10 to 325F.12, 325F.14 to 325F.16, and 45.027, subdivisions 1 to 6.
The commissioner may coordinate with the commissioner of the Pollution Control Agency
and the commissioner of health to enforce this section.
new text end

Sec. 34.

new text begin [325F.179] ENFORCEMENT.
new text end

new text begin Sections 325F.177 and 325F.178 may be enforced as provided under sections 325F.10
to 325F.12, 325F.14 to 325F.16, and 45.027, subdivisions 1 to 6. The commissioner may
coordinate with the commissioner of the Pollution Control Agency and the commissioner
of health to enforce this section.
new text end

Sec. 35.

Minnesota Statutes 2020, section 514.972, subdivision 4, is amended to read:

Subd. 4.

Denial of access.

Upon default, the owner shall mail notice of default as provided
under section 514.974. The owner may deny the occupant access to the personal property
contained in the self-service storage facility after default, service of the notice of default,
expiration of the date stated for denial of access, and application of any security deposit to
unpaid rent. deleted text begin The notice of default must state the date that the occupant will be denied access
to the occupant's personal property in the self-service storage facility and that access will
be denied until the owner's claim has been satisfied. The notice of default must state that
any dispute regarding denial of access can be raised by the occupant beginning legal action
in court. Notice of default must further state the rights of the occupant contained in
subdivision 5.
deleted text end

Sec. 36.

Minnesota Statutes 2020, section 514.972, subdivision 5, is amended to read:

Subd. 5.

Access to certain items.

deleted text begin The occupant may remove from the self-service storage
facility personal papers, health aids, personal clothing of the occupant and the occupant's
dependents, and personal property that is necessary for the livelihood of the occupant, that
has a market value of less than $50 per item, if demand is made to any of the persons listed
in section 514.976, subdivision 1. The occupant shall present a list of the items, and may
remove them during the facility's ordinary business hours prior to the sale authorized by
section 514.973. If the owner unjustifiably denies the occupant access for the purpose of
removing the items specified in this subdivision, the occupant is entitled to an order allowing
access to the storage unit for removal of the specified items. The self-service storage facility
is liable to the occupant for the costs, disbursements and attorney fees expended by the
occupant to obtain this order. deleted text end new text begin (a) Any occupant may remove from the self-storage facility
personal papers and health aids upon demand made to any of the persons listed in section
514.976, subdivision 1.
new text end

new text begin (b) An occupant who provides documentation from a government or nonprofit agency
or legal aid office that the occupant is a recipient of relief based on need, is eligible for legal
aid services, or is a survivor of domestic violence or sexual assault may remove, in addition
to the items provided in paragraph (a), personal clothing of the occupant and the occupant's
dependents and tools of the trade that are necessary for the livelihood of the occupant that
has a market value not to exceed $125 per item.
new text end

new text begin (c) The occupant shall present a list of the items and may remove the items during the
facility's ordinary business hours prior to the sale authorized by section 514.973. If the
owner unjustifiably denies the occupant access for the purpose of removing the items
specified in this subdivision, the occupant is entitled to request relief from the court for an
order allowing access to the storage space for removal of the specified items. The self-service
storage facility is liable to the occupant for the costs, disbursements, and attorney fees
expended by the occupant to obtain this order.
new text end

new text begin (d) For the purposes of this subdivision, "relief based on need" includes but is not limited
to receipt of a benefit from the Minnesota family investment program and diversionary
work program, medical assistance, general assistance, emergency general assistance,
Minnesota supplemental aid, Minnesota supplemental aid housing assistance, MinnesotaCare,
Supplemental Security Income, energy assistance, emergency assistance, Supplemental
Nutrition Assistance Program benefits, earned income tax credit, or Minnesota working
family tax credit. Relief based on need can also be proven by providing documentation from
a legal aid organization that the individual is receiving legal aid assistance, or by providing
documentation from a government agency, nonprofit, or housing assistance program that
the individual is receiving assistance due to domestic violence or sexual assault.
new text end

Sec. 37.

Minnesota Statutes 2020, section 514.973, subdivision 3, is amended to read:

Subd. 3.

Contents of notice.

The notice must include:

(1) a statement of the amount owed for rent and other charges and demand for payment
within a specified time not less than 14 days after delivery of the notice;

(2) pursuant to section 514.972, subdivision 4, a notice of denial of access to the storage
space, if this denial is permitted under the terms of the rental agreement;

new text begin (3) the date that the occupant will be denied access to the occupant's personal property
in the self-service storage facility;
new text end

new text begin (4) a statement that access will be denied until the owner's claim has been satisfied;
new text end

new text begin (5) a statement that any dispute regarding denial of access can be raised by an occupant
beginning legal action in court;
new text end

deleted text begin (3) deleted text end new text begin (6) new text end the name, street address, and telephone number of the owner, or of the owner's
designated agent, whom the occupant may contact to respond to the notice;

deleted text begin (4) deleted text end new text begin (7) new text end a conspicuous statement that unless the claim is paid within the time stated in
the notice, the personal property will be advertised for sale. The notice must specify the
time and place of the sale; and

deleted text begin (5) deleted text end new text begin (8) new text end a conspicuous statement of the items that the occupant may remove without
charge pursuant to section 514.972, subdivision 5, if the occupant is denied general access
to the storage space.

Sec. 38.

Minnesota Statutes 2020, section 514.973, subdivision 4, is amended to read:

Subd. 4.

Sale of property.

(a) A sale of personal property may take place no sooner
than 45 days after default or, if the personal property is a motor vehicle or watercraft, no
sooner than 60 days after default.

(b) After the expiration of the time given in the notice, the sale must be published once
a week for two weeks consecutively in a newspaper of general circulation where the sale
is to be held. The sale may take place no sooner than 15 days after the first publication. If
the lien is satisfied before the second publication occurs, the second publication is waived.
If there is no qualified newspaper under chapter 331A where the sale is to be held, the
advertisement may be posted on an independent, publicly accessible website that advertises
self-storage lien sales or public notices. The advertisement must include a new text begin general new text end description
of the goods, the name of the person on whose account the goods are being held, and the
time and place of the sale.

(c) A sale of the personal property must conform to the terms of the notification.

(d) A sale of the personal property must be public and must be either:

(1) held via an online auction; or

(2) held at the storage facility, or at the nearest suitable place at which the personal
property is held or stored.

Owners shall require all bidders, including online bidders, to register and agree to the rules
of the sale.

(e) The sale must be conducted in a commercially reasonable manner. A sale is
commercially reasonable if the property is sold in conformity with the practices among
dealers in the property sold or sellers of similar distressed property sales.

Sec. 39.

Minnesota Statutes 2020, section 514.974, is amended to read:

514.974 ADDITIONAL NOTIFICATION REQUIREMENT.

deleted text begin Notification of the proposed sale of personal property must include a notice of denial
of access to the personal property until the owner's claim has been satisfied. deleted text end Any notice the
owner is required to mail to the occupant under sections 514.970 to 514.979 shall be sent
to:

(1) the e-mail address, if consented to by the occupant, as provided in section 514.973,
subdivision 2;

(2) the mailing address and any alternate mailing address provided by the occupant in
the rental agreement; or

(3) the last known mailing address of the occupant, if the last known mailing address
differs from the mailing address listed by the occupant in the rental agreement and the owner
has reason to believe that the last known mailing address is more current.

Sec. 40.

Minnesota Statutes 2020, section 514.977, is amended to read:

514.977 deleted text begin DEFAULT deleted text end new text begin ADDITIONAL REMEDIES new text end .

new text begin Subdivision 1. new text end

new text begin Default; breach of rental agreement. new text end

If an occupant defaults in the
payment of rent new text begin for the storage space new text end or otherwise breaches the rental agreement, the owner
may commence an deleted text begin eviction deleted text end action deleted text begin under chapter 504B deleted text end new text begin to terminate the rental agreement,
recover possession of the storage space, remove the occupant, and dispose of the stored
personal property new text end . new text begin The action shall be conducted in accordance with the Minnesota Rules
of Civil Procedure, except as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Service of summons. new text end

new text begin The summons must be served at least seven days before
the date of the court appearance as provided in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Appearance. new text end

new text begin Except as provided in subdivision 4, in an action filed under this
section the appearance shall be not less than seven or more than 14 days from the day of
issuing the summons.
new text end

new text begin Subd. 4. new text end

new text begin Expedited hearing. new text end

new text begin If the owner files a motion and affidavit stating specific
facts and instances in support of an allegation that the occupant is causing a nuisance or
engaging in illegal or other behavior that seriously endangers the safety of others, others'
property, or the storage facility's property, the appearance shall be not less than three days
nor more than seven days from the date the summons is issued. The summons in an expedited
hearing shall be served upon the occupant within 24 hours of issuance unless the court
orders otherwise for good cause shown.
new text end

new text begin Subd. 5. new text end

new text begin Answer; trial; continuance. new text end

new text begin At the court appearance specified in the summons,
the defendant may answer the complaint, and the court shall hear and decide the action,
unless it grants a continuance of the trial, which may be for no longer than six days, unless
all parties consent to longer continuance.
new text end

new text begin Subd. 6. new text end

new text begin Counterclaims. new text end

new text begin The occupant is prohibited from bringing counterclaims in the
action that are unrelated to the possession of the storage space. Nothing in this section
prevents the occupant from bringing the claim in a separate action.
new text end

new text begin Subd. 7. new text end

new text begin Judgment; writ. new text end

new text begin Judgment in matters adjudicated under this section shall be
in accordance with section 504B.345, paragraph (a). Execution of a writ issued under this
section shall be in accordance with section 504B.365.
new text end

Sec. 41.

new text begin THIRD-PARTY FOOD DELIVERY FEES; LIMITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Delivery fee" means a fee charged by a third-party food delivery service to a food
and beverage establishment for a service that delivers food or beverages from the
establishment to customers. Delivery fee does not include (1) any other fee that may be
charged by a third-party food delivery service to a food and beverage establishment, including
but not limited to fees for marketing, listing, or advertising the food and beverage
establishment on the third-party food delivery service platform, or (2) fees related to
processing an online order.
new text end

new text begin (c) "Food and beverage establishment" or "establishment" means a retail business that
sells prepared food or beverages to the public.
new text end

new text begin (d) "Online order" means an order, including a telephone order, placed by a customer
through or with the assistance of a platform provided by a third-party food delivery service.
new text end

new text begin (e) "Purchase price" means the total price of the items contained in an online order that
are listed on the menu of the food and beverage establishment where the order is placed.
Purchase price does not include taxes, gratuities, or other fees that may make up the total
cost of a customer's online order.
new text end

new text begin (f) "Third-party food delivery service" means a platform offered through an
online-enabled application, software, website, or other Internet service that offers or arranges
for the sale of food and beverages prepared by, delivered by, or picked up from a food and
beverage establishment.
new text end

new text begin Subd. 2. new text end

new text begin Limitation on food delivery fees. new text end

new text begin (a) A third-party food delivery service is
prohibited from:
new text end

new text begin (1) charging a food and beverage establishment a delivery fee that totals more than ten
percent of an online order's purchase price;
new text end

new text begin (2) charging a food and beverage establishment any fee, other than the delivery fee
described in clause (1), to use the third-party delivery service that totals more than five
percent of an online order's purchase price;
new text end

new text begin (3) charging a customer a purchase price that is higher than the price set by the food and
beverage establishment or, if no price is set by the food and beverage establishment, the
price listed on the establishment's menu; or
new text end

new text begin (4) reducing the compensation rates paid to third-party food delivery service drivers as
a result of the limitations on fees instituted by this section.
new text end

new text begin (b) A food and beverage establishment may choose, but a third-party food delivery
service is prohibited from requiring, an exemption for marketing or advertising the food
and beverage establishment on the third-party food delivery service platform from the
limitations in paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Enforcement by attorney general. new text end

new text begin (a) The attorney general must enforce this
section under Minnesota Statutes, section 8.31.
new text end

new text begin (b) In addition to the remedies otherwise provided by law, a person injured by a violation
of subdivision 2 may bring a civil action and recover damages, together with costs and
disbursements, including costs of investigation and reasonable attorney fees, and receive
other equitable relief as determined by the court.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires 60 days after the peacetime emergency declared by the governor in an executive
order that relates to the infectious disease known as COVID-19 is terminated or rescinded.
new text end

ARTICLE 5

COLLECTION AGENCIES AND DEBT BUYERS

Section 1.

Minnesota Statutes 2020, section 332.31, subdivision 3, is amended to read:

Subd. 3.

Collection agency.

"Collection agency" new text begin or "licensee" new text end means deleted text begin and includes any deleted text end new text begin
(1) a new text end person engaged in the business of collection for others any account, bill new text begin , new text end or other
indebtedness new text begin , new text end except as hereinafter provided new text begin ; or (2) a debt buyer new text end . It includes persons who
furnish collection systems carrying a name which simulates the name of a collection agency
and who supply forms or form letters to be used by the creditor, even though such forms
direct the debtor to make payments directly to the creditor rather than to such fictitious
agency.

Sec. 2.

Minnesota Statutes 2020, section 332.31, subdivision 6, is amended to read:

Subd. 6.

Collector.

"Collector" is a person acting under the authority of a collection
agency under subdivision 3 new text begin or a debt buyer under subdivision 8 new text end , and on its behalf in the
business of collection for deleted text begin others deleted text end an account, bill, or other indebtedness except as otherwise
provided in this chapter.

Sec. 3.

Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Debt buyer. new text end

new text begin "Debt buyer" means a business engaged in the purchase of any
charged-off account, bill, or other indebtedness for collection purposes, whether the business
collects the account, bill, or other indebtedness, hires a third party for collection, or hires
an attorney for litigation related to the collection.
new text end

Sec. 4.

Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Affiliated company. new text end

new text begin "Affiliated company" means a company that: (1) directly
or indirectly controls, is controlled by, or is under common control with another company
or companies; (2) has the same executive management team or owner that exerts control
over the business operations of the company; (3) maintains a uniform network of corporate
and compliance policies and procedures; and (4) does not engage in active collection of
debts.
new text end

Sec. 5.

Minnesota Statutes 2020, section 332.311, is amended to read:

332.311 TRANSFER OF ADMINISTRATIVE FUNCTIONS.

The powers, duties, and responsibilities of the consumer services section under sections
332.31 to 332.44 relating to collection agencies new text begin and debt buyers new text end are hereby transferred to
and imposed upon the commissioner of commerce.

Sec. 6.

Minnesota Statutes 2020, section 332.32, is amended to read:

332.32 EXCLUSIONS.

(a) The term "collection agency" deleted text begin shall deleted text end new text begin does new text end not include deleted text begin persons whose collection activities
are confined to and are directly related to the operation of a business other than that of a
collection agency such as, but not limited to deleted text end banks when collecting accounts owed to the
banks and when the bank will sustain any loss arising from uncollectible accounts, abstract
companies doing an escrow business, real estate brokers, public officers, persons acting
under order of a court, lawyers, trust companies, insurance companies, credit unions, savings
associations, loan or finance companies unless they are engaged in asserting, enforcing or
prosecuting unsecured claims which have been purchased from any person, firm, or
association when there is recourse to the seller for all or part of the claim if the claim is not
collected.

(b) The term "collection agency" shall not include a trade association performing services
authorized by section 604.15, subdivision 4a, but the trade association in performing the
services may not engage in any conduct that would be prohibited for a collection agency
under section 332.37.

Sec. 7.

Minnesota Statutes 2020, section 332.33, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

Except as otherwise provided in this chapter, no person
shall conduct deleted text begin within this state a collection agency or engage within this state in the business
of collecting claims for others deleted text end new text begin business in Minnesota as a collection agency or debt buyer, new text end
as defined in sections 332.31 to 332.44, without having first applied for and obtained a
collection agency license. A person acting under the authority of a collection agency, new text begin debt
buyer, or new text end as a collector deleted text begin , deleted text end must first register with the commissioner under this section. A
registered collector may use one additional assumed name only if the assumed name is
registered with and approved by the commissioner. new text begin A business that operates as a debt buyer
must submit a completed license application no later than January 1, 2022. A debt buyer
who has filed an application with the commissioner for a collection agency license prior to
January 1, 2022, and whose application remains pending with the commissioner thereafter,
may continue to operate without a license until the commissioner approves or denies the
application.
new text end

Sec. 8.

Minnesota Statutes 2020, section 332.33, subdivision 2, is amended to read:

Subd. 2.

Penalty.

A person who carries on business as a collection agency new text begin or debt buyer new text end
without first having obtained a license or acts as a collector without first having registered
with the commissioner pursuant to sections 332.31 to 332.44, or who carries on this business
after the revocation, suspension, or expiration of a license or registration is guilty of a
misdemeanor.

Sec. 9.

Minnesota Statutes 2020, section 332.33, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Collection agency deleted text end License rejection.

On finding that an applicant for a
deleted text begin collection agency deleted text end license is not qualified under sections 332.31 to 332.44, the commissioner
shall reject the application and shall give the applicant written notice of the rejection and
the reasons for the rejection.

Sec. 10.

Minnesota Statutes 2020, section 332.33, subdivision 5a, is amended to read:

Subd. 5a.

Individual collector registration.

A deleted text begin licensed collection agency deleted text end new text begin licensee new text end , on
behalf of an individual collector, must register with the state all individuals in the deleted text begin collection
agency's deleted text end new text begin licensee's new text end employ who are performing the duties of a collector as defined in sections
332.31 to 332.44. The deleted text begin collection agency deleted text end new text begin licensee new text end must apply for an individual collection
registration in a form prescribed by the commissioner. The deleted text begin collection agency deleted text end new text begin licensee new text end shall
verify on the form that the applicant has confirmed that the applicant meets the requirements
to perform the duties of a collector as defined in sections 332.31 to 332.44. Upon submission
of the application to the department, the individual may begin to perform the duties of a
collector and may continue to do so unless the deleted text begin licensed collection agency deleted text end new text begin licensee new text end is informed
by the commissioner that the individual is ineligible.

Sec. 11.

Minnesota Statutes 2020, section 332.33, subdivision 7, is amended to read:

Subd. 7.

Changes; notice to commissioner.

(a) A deleted text begin licensed collection agency deleted text end new text begin licensee new text end
must give the commissioner written notice of a change in company name, address, or
ownership not later than ten days after the change occurs. A registered individual collector
must give written notice of a change of address, name, or assumed name no later than ten
days after the change occurs.

(b) Upon the death of any deleted text begin collection agency deleted text end licensee, the license of the decedent may
be transferred to the executor or administrator of the estate for the unexpired term of the
license. The executor or administrator may be authorized to continue or discontinue the
collection business of the decedent under the direction of the court having jurisdiction of
the probate.

Sec. 12.

Minnesota Statutes 2020, section 332.33, subdivision 8, is amended to read:

Subd. 8.

Screening process requirement.

(a) Each deleted text begin licensed collection agency deleted text end new text begin licensee new text end
must establish procedures to follow when screening an individual collector applicant prior
to submitting an applicant to the commissioner for initial registration and at renewal.

(b) The screening process for initial registration must be done at the time of hiring. The
process must include a national criminal history record search, an attorney licensing search,
and a county criminal history search for all counties where the applicant has resided within
the five years immediately preceding the initial registration, to determine whether the
applicant is eligible to be registered under section 332.35. Each deleted text begin licensed collection agency deleted text end new text begin
licensee new text end shall use a vendor that is a member of the National Association of Professional
Background Screeners, or an equivalent vendor, to conduct this background screening
process.

(c) Screening for renewal of individual collector registration must include a national
criminal history record search and a county criminal history search for all counties where
the individual has resided during the immediate preceding year. Screening for renewal of
individual collector registrations must take place no more than 60 days before the license
expiration or renewal date. A renewal screening is not required if an individual collector
has been subjected to an initial background screening within 12 months of the first registration
renewal date. A renewal screening is required for all subsequent annual registration renewals.

(d) The commissioner may review the procedures to ensure the integrity of the screening
process. Failure by a deleted text begin licensed collection agency deleted text end new text begin licensee new text end to establish these procedures is
subject to action under section 332.40.

Sec. 13.

Minnesota Statutes 2020, section 332.33, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Affiliated companies. new text end

new text begin The commissioner must permit affiliated companies to
operate under a single license and be subject to a single examination, provided that all of
the affiliated company names are listed on the license.
new text end

Sec. 14.

Minnesota Statutes 2020, section 332.34, is amended to read:

332.34 BOND.

The commissioner of commerce shall require each deleted text begin collection agency deleted text end licensee to file and
maintain in force a corporate surety bond, in a form to be prescribed by, and acceptable to,
the commissioner, and in a sum of at least $50,000 plus an additional $5,000 for each
$100,000 received by the collection agency from debtors located in Minnesota during the
previous calendar year, less commissions earned by the collection agency on those collections
for the previous calendar year. The total amount of the bond shall not exceed $100,000. A
deleted text begin collection agency deleted text end new text begin licensee new text end may deposit cash in and with a depository acceptable to the
commissioner in an amount and in the manner prescribed and approved by the commissioner
in lieu of a bond.

Sec. 15.

Minnesota Statutes 2020, section 332.345, is amended to read:

332.345 SEGREGATED ACCOUNTS.

A payment collected by a collector or collection agency on behalf of a customer shall
be held by the collector or collection agency in a separate trust account clearly designated
for customer funds. The account must be in a bank or other depository institution authorized
or chartered under the laws of any state or of the United States. new text begin This section does not apply
to a debt buyer, except to the extent the debt buyer engages in third-party debt collection
for others.
new text end

Sec. 16.

Minnesota Statutes 2020, section 332.355, is amended to read:

332.355 AGENCY RESPONSIBILITY FOR COLLECTORS.

The commissioner may take action against a deleted text begin collection agency deleted text end new text begin licensee new text end for any violations
of debt collection laws by its debt collectors. The commissioner may also take action against
the debt collectors themselves for these same violations.

Sec. 17.

Minnesota Statutes 2020, section 332.37, is amended to read:

332.37 PROHIBITED PRACTICES.

new text begin (a) new text end No collection agency new text begin , debt buyer, new text end or collector shall:

(1) in collection letters or publications, or in any communication, oral or written threaten
wage garnishment or legal suit by a particular lawyer, unless it has actually retained the
lawyer;

(2) use or employ sheriffs or any other officer authorized to serve legal papers in
connection with the collection of a claim, except when performing their legally authorized
duties;

(3) use or threaten to use methods of collection which violate Minnesota law;

(4) furnish legal advice or otherwise engage in the practice of law or represent that it is
competent to do so;

(5) communicate with debtors in a misleading or deceptive manner by using the stationery
of a lawyer, forms or instruments which only lawyers are authorized to prepare, or
instruments which simulate the form and appearance of judicial process;

(6) exercise authority on behalf of a deleted text begin creditor deleted text end new text begin client new text end to employ the services of lawyers
unless the deleted text begin creditor deleted text end new text begin client new text end has specifically authorized the agency in writing to do so and the
agency's course of conduct is at all times consistent with a true relationship of attorney and
client between the lawyer and the deleted text begin creditor deleted text end new text begin client new text end ;

(7) publish or cause to be published any list of debtors except for credit reporting
purposes, use shame cards or shame automobiles, advertise or threaten to advertise for sale
any claim as a means of forcing payment thereof, or use similar devices or methods of
intimidation;

(8) refuse to return any claim or claims and all valuable papers deposited with a claim
or claims upon written request of the deleted text begin creditor deleted text end new text begin client new text end , claimant or forwarder after tender of
the amounts due and owing to deleted text begin the deleted text end new text begin a collection new text end agency within 30 days after the request;
refuse or intentionally fail to account to its clients for all money collected within 30 days
from the last day of the month in which the same is collected; or, refuse or fail to furnish
at intervals of not less than 90 days upon written request of the claimant or forwarder, a
written report upon claims received from the claimant or forwarder;

(9) operate under a name or in a manner which implies that the new text begin collection new text end agency new text begin or debt
buyer new text end is a branch of or associated with any department of federal, state, county or local
government or an agency thereof;

(10) commingle money collected for a customer with the new text begin collection new text end agency's operating
funds or use any part of a customer's money in the conduct of the new text begin collection new text end agency's
business;

(11) transact business or hold itself out as a debt deleted text begin prorater deleted text end new text begin settlement company, debt
management company new text end , debt adjuster, or any person who settles, adjusts, prorates, pools,
liquidates or pays the indebtedness of a debtor, unless there is no charge to the debtor, or
the pooling or liquidation is done pursuant to court order or under the supervision of a
creditor's committee;

(12) violate any of the provisions of the Fair Debt Collection Practices Act of 1977,
Public Law 95-109, while attempting to collect on any account, bill or other indebtedness;

(13) communicate with a debtor by use of a recorded message utilizing an automatic
dialing announcing device deleted text begin unless the recorded message is immediately preceded by a live
operator who discloses prior to the message the name of the collection agency and the fact
the message intends to solicit payment and the operator obtains the consent of the debtor
to hearing the message deleted text end new text begin after the debtor expressly informs the agency or collector to cease
communication utilizing an automatic dialing announcing device new text end ;

(14) in collection letters or publications, or in any communication, oral or written, imply
or suggest that health care services will be withheld in an emergency situation;

(15) when a debtor has a listed telephone number, enlist the aid of a neighbor or third
party to request that the debtor contact the licensee or collector, except a person who resides
with the debtor or a third party with whom the debtor has authorized the licensee or collector
to place the request. This clause does not apply to a call back message left at the debtor's
place of employment which is limited to the licensee's or collector's telephone number and
name;

(16) when attempting to collect a debt, fail to provide the debtor with the full name of
the collection agency new text begin or debt buyer new text end as it appears on its license new text begin or as listed on any "doing
business as" or "d/b/a" registered with the Department of Commerce new text end ;

(17) collect any money from a debtor that is not reported to a deleted text begin creditor or deleted text end new text begin client;
new text end

new text begin (18) new text end fail to return any amount of overpayment from a debtor to the debtor or to the state
of Minnesota pursuant to the requirements of chapter 345;

deleted text begin (18) deleted text end new text begin (19) new text end accept currency or coin as payment for a debt without issuing an original receipt
to the debtor and maintaining a duplicate receipt in the debtor's payment records;

deleted text begin (19) deleted text end new text begin (20) new text end attempt to collect any amount deleted text begin of money deleted text end new text begin , including any interest, fee, charge,
or expense incidental to the charge-off obligation, new text end from a debtor deleted text begin or deleted text end new text begin unless the amount is
expressly authorized by the agreement creating the debt or is otherwise permitted by law;
new text end

new text begin (21) new text end charge a fee to a deleted text begin creditor deleted text end new text begin client new text end that is not authorized by agreement with the client;

deleted text begin (20) deleted text end new text begin (22) new text end falsify any collection agency documents with the intent to deceive a debtor,
creditor, or governmental agency;

deleted text begin (21) deleted text end new text begin (23) new text end when initially contacting a Minnesota debtor by mail, fail to include a disclosure
on the contact notice, in a type size or font which is equal to or larger than the largest other
type of type size or font used in the text of the notice. The disclosure must state: "This
collection agency is licensed by the Minnesota Department of Commerce" new text begin or "This debt
buyer is licensed by the Minnesota Department of Commerce" as applicable new text end ; or

deleted text begin (22) deleted text end new text begin (24) new text end commence legal action to collect a debt outside the limitations period set forth
in section 541.053.

new text begin (b) Paragraph (a), clauses (6), (8), (10), (17), and (21), do not apply to debt buyers except
to the extent the debt buyer engages in third-party debt collection for others.
new text end

Sec. 18.

Minnesota Statutes 2020, section 332.385, is amended to read:

332.385 NOTIFICATION TO COMMISSIONER.

The collection agency new text begin or debt buyer new text end licensee shall notify the commissioner of any
employee termination within ten days of the termination if deleted text begin it deleted text end new text begin the termination new text end is new text begin based new text end in
whole or in part deleted text begin based deleted text end on a violation of this chapter.

Sec. 19.

Minnesota Statutes 2020, section 332.40, subdivision 3, is amended to read:

Subd. 3.

Commissioner's powers.

new text begin (a) new text end For the purpose of any investigation or proceeding
under sections 332.31 to 332.44, the commissioner or any person designated by the
commissioner may administer oaths and affirmations, subpoena collection agencies new text begin , debt
buyers, new text end or collectors and compel their attendance, take evidence and require the production
of any books, papers, correspondence, memoranda, agreements or other documents or
records which the commissioner deems relevant or material to the inquiry. The subpoena
shall contain a written statement setting forth the circumstances which have reasonably
caused the commissioner to believe that a violation of sections 332.31 to 332.44 may have
occurred.

new text begin (b) new text end In the event that the collection agency new text begin , debt buyer, new text end or collector refuses to obey the
subpoena, or should the commissioner, upon completion of the examination of the collection
agency new text begin , debt buyer, new text end or collector, reasonably conclude that a violation has occurred, the
commissioner may examine additional witnesses, including third parties, as may be necessary
to complete the investigation.

new text begin (c) new text end Any subpoena issued pursuant to this section shall be served by certified mail or by
personal service. Service shall be made at least 15 days prior to the date of appearance.

Sec. 20.

Minnesota Statutes 2020, section 332.42, subdivision 1, is amended to read:

Subdivision 1.

Verified financial statement.

The commissioner of commerce may at
any time require a deleted text begin collection agency deleted text end licensee to submit a verified financial statement for
examination by the commissioner to determine whether the deleted text begin collection agency deleted text end licensee is
financially responsible to carry on a collection deleted text begin agency deleted text end business within the intents and
purposes of sections 332.31 to 332.44.

Sec. 21.

Minnesota Statutes 2020, section 332.42, subdivision 2, is amended to read:

Subd. 2.

Record keeping.

The commissioner shall require the collection agency new text begin or debt
buyer new text end licensee to keep such books and records in the licensee's place of business in this
state as will enable the commissioner to determine whether there has been compliance with
the provisions of sections 332.31 to 332.44, unless the agency is a foreign corporation duly
authorized, admitted, and licensed to do business in this state and complies with all the
requirements of chapter 303 and with all other requirements of sections 332.31 to 332.44.
Every collection agency licensee shall preserve the records of final entry used in such
business for a period of five years after final remittance is made on any amount placed with
the licensee for collection or after any account has been returned to the claimant on which
one or more payments have been made. new text begin Every debt buyer licensee must preserve the records
of final entry used in the business for a period of five years after final collection of any
purchased account.
new text end

Sec. 22. new text begin GARNISHMENT PROHIBITIONS ON COVID-19 GOVERNMENT
ASSISTANCE.
new text end

new text begin (a) Federal, state, local, and tribal governmental payments issued to relieve the adverse
economic impact caused by the COVID-19 pandemic are exempt from all claims for
garnishments and levies of consumer debtors of debt primarily for personal, family, or
household purposes governed by Minnesota Statutes, chapters 550, 551, and 571.
new text end

new text begin (b) Paragraph (a) does not apply to domestic support orders and obligations, including
child support and spousal maintenance obligations, including but not limited to orders and
obligations under Minnesota Statutes, chapters 518 and 518A.
new text end

new text begin (c) This section expires on December 31, 2022.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to government assistance provided on or after March 13, 2020.
new text end

ARTICLE 6

COMMERCE MISCELLANEOUS

Section 1.

Minnesota Statutes 2020, section 45.305, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Appraiser and deleted text end Insurance Internet prelicense courses.

The design and
delivery of deleted text begin an appraiser prelicense education course or deleted text end an insurance prelicense education
course must be approved by the International Distance Education Certification Center
(IDECC) before the course is submitted for the commissioner's approval.

Sec. 2.

Minnesota Statutes 2020, section 45.305, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Appraiser Internet prelicense courses. new text end

new text begin The requirements for the design and
delivery of an appraiser prelicense education course are the requirements established by the
Appraiser Qualifications Board of the Appraisal Foundation and published in the most
recent version of the Real Property Appraiser Qualification Criteria.
new text end

Sec. 3.

Minnesota Statutes 2020, section 45.306, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Appraiser Internet continuing education courses. new text end

new text begin The requirements for the
design and delivery of an appraiser continuing education course are the requirements
established by the Appraiser Qualifications Board of the Appraisal Foundation and published
in the most recent version of the Real Property Appraiser Qualification Criteria.
new text end

Sec. 4.

Minnesota Statutes 2020, section 45.33, subdivision 1, is amended to read:

Subdivision 1.

Prohibitions.

In connection with an approved course, coordinators and
instructors must not:

(1) recommend or promote the services or practices of a particular business;

(2) encourage or recruit individuals to engage the services of, or become associated with,
a particular business;

(3) use materials, clothing, or other evidences of affiliation with a particular entity new text begin ,
except as provided under subdivision 3 new text end ;

(4) require students to participate in other programs or services offered by the instructor,
coordinator, or education provider;

(5) attempt, either directly or indirectly, to discover questions or answers on an
examination for a license;

(6) disseminate to any other person specific questions, problems, or information known
or believed to be included in licensing examinations;

(7) misrepresent any information submitted to the commissioner;

(8) fail to cover, or ensure coverage of, all points, issues, and concepts contained in the
course outline approved by the commissioner during the approved instruction; and

(9) issue inaccurate course completion certificates.

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 2020, section 45.33, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin In connection with an approved course, coordinators and instructors
may:
new text end

new text begin (1) display a company or course provider's logo or branding;
new text end

new text begin (2) establish a trade-show or conference booth outside the classroom where the
educational content is being delivered that is separate from a registration location used to
track or facilitate student attendance;
new text end

new text begin (3) display the logo or branding associated with a particular entity to thank the entity as
an organizational partner of the course provider during a scheduled and approved break in
the delivery of course content. The display must be separate from a registration location
used to track or facilitate student attendance; and
new text end

new text begin (4) display a third-party logo, promotion, advertisement, or affiliation with a particular
entity as part of a course program or advertising for an approved course. For purposes of
this subdivision, course program means digital or paper literature describing the schedule
of the events, presenters, duration, or background information of the approved course or
courses. A course program may be made available in the classroom or at a registration
location used to track or facilitate student attendance.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2020, section 60A.71, subdivision 7, is amended to read:

Subd. 7.

Duration; fees.

(a) Each applicant for a reinsurance intermediary license shall
pay to the commissioner a fee of $200 for an initial two-year license and a fee of $150 for
each renewal. Applications shall be submitted on forms prescribed by the commissioner.

(b) Initial licenses issued under this chapter are valid for a period not to exceed 24 months
and expire on October 31 of the renewal year assigned by the commissioner. Each renewal
reinsurance intermediary license is valid for a period of 24 months. deleted text begin Licensees who submit
renewal applications postmarked or delivered on or before October 15 of the renewal year
may continue to transact business whether or not the renewal license has been received by
November 1. Licensees who submit applications postmarked or delivered after October 15
of the renewal year must not transact business after the expiration date of the license until
the renewal license has been received.
deleted text end

(c) All fees are nonreturnable, except that an overpayment of any fee may be refunded
upon proper application.

Sec. 7.

Minnesota Statutes 2020, section 79.55, subdivision 10, is amended to read:

Subd. 10.

Duties of commissioner new text begin ; report new text end .

deleted text begin The commissioner shall issue a report by
March 1 of each year, comparing the average rates charged by workers' compensation
insurers in the state to the pure premium base rates filed by the association, as reviewed by
the Rate Oversight Commission. The Rate Oversight Commission shall review the
commissioner's report and if the experience indicates that rates have not reasonably reflected
changes in pure premiums, the rate oversight commission shall recommend to the legislature
appropriate legislative changes to this chapter.
deleted text end

new text begin (a) By March 1 of each year, the commissioner must issue a report that evaluates the
competitiveness of the workers' compensation market in Minnesota in order to evaluate
whether the competitive rating law is working.
new text end

new text begin (b) The report under this subdivision must: (1) compare the average rates charged by
workers' compensation insurers in Minnesota with the pure premium base rates filed by the
association; and (2) provide market information, including but not limited to the number of
carriers, market shares, the loss-cost multipliers used by companies, and the residual market
and self-insurance.
new text end

new text begin (c) The commissioner must provide the report to the Rate Oversight Commission for
review. If after reviewing the report the Rate Oversight Commission concludes that concerns
exist regarding the competitiveness of the workers' compensation market in Minnesota, the
Rate Oversight Commission must recommend to the legislature appropriate modifications
to this chapter.
new text end

Sec. 8.

Minnesota Statutes 2020, section 80G.06, subdivision 1, is amended to read:

Subdivision 1.

Surety bond requirement.

new text begin (a) new text end Every dealer shall maintain a current,
valid surety bond issued by a surety company admitted to do business in Minnesota in an
amount based on the transactions new text begin conducted with Minnesota consumers new text end (purchases from
and sales to consumers at retail) during the 12-month period prior to registration, or renewal,
whichever is applicable.

new text begin (b) new text end The amount of the surety bond shall be as specified in the table below:

Transaction Amount in Preceding 12-month Period	Surety Bond Required
deleted text begin $25,000 deleted text end new text begin $0 new text end to $200,000	$25,000
$200,000.01 to $500,000	$50,000
$500,000.01 to $1,000,000	$100,000
$1,000,000.01 to $2,000,000	$150,000
Over $2,000,000	$200,000

Sec. 9.

new text begin [80G.11] NOTIFICATION TO COMMISSIONER.
new text end

new text begin A dealer must notify the commissioner of any dealer representative termination within
ten days of the termination if the termination is based in whole or in part on a violation of
this chapter.
new text end

Sec. 10.

Minnesota Statutes 2020, section 82.57, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees shall be paid to the commissioner:

(a) a fee of $150 for each initial individual broker's license, and a fee of $100 for each
renewal thereof;

(b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each renewal
thereof;

(c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 for each
renewal thereof;

(d) a fee of $150 for each initial corporate, limited liability company, or partnership
license, and a fee of $100 for each renewal thereof;

(e) a fee for payment to the education, research and recovery fund in accordance with
section 82.86;

(f) a fee of $20 for each transfer;

deleted text begin (g) a fee of $50 for license reinstatement;
deleted text end

deleted text begin (h) deleted text end new text begin (g) new text end a fee of $20 for reactivating a corporate, limited liability company, or partnership
license; and

deleted text begin (i) deleted text end new text begin (h) new text end in addition to the fees required under this subdivision, individual licensees under
clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge
of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge as
permitted under that section.

Sec. 11.

Minnesota Statutes 2020, section 82.57, subdivision 5, is amended to read:

Subd. 5.

Initial license expiration; fee reduction.

deleted text begin If an initial license issued under
subdivision 1, paragraph (a), (b), (c), or (d) expires less than 12 months after issuance, the
license fee shall be reduced by an amount equal to one-half the fee for a renewal of the
license. deleted text end new text begin An new text end new text begin initial license issued under this chapter expires in the year that results in the
term of the license being at least 12 months, but no more than 24 months.
new text end

Sec. 12.

Minnesota Statutes 2020, section 82.62, subdivision 3, is amended to read:

Subd. 3.

Timely renewals.

A person deleted text begin whose application for a license renewal has not
been timely submitted and deleted text end who has not received notice of approval of renewal may not
continue to transact business either as a real estate broker, salesperson, or closing agent
after June 30 of the renewal year until approval of renewal is received. Application for
renewal of a license is timely submitted if deleted text begin : deleted text end new text begin all requirements for renewal, including continuing
education requirements, have been completed and reported pursuant to section 45.43,
subdivision 1.
new text end

deleted text begin (1) all requirements for renewal, including continuing education requirements, have
been completed by June 15 of the renewal year; and
deleted text end

deleted text begin (2) the application is submitted before the renewal deadline in the manner prescribed
by the commissioner, duly executed and sworn to, accompanied by fees prescribed by this
chapter, and containing any information the commissioner requires.
deleted text end

Sec. 13.

Minnesota Statutes 2020, section 82.81, subdivision 12, is amended to read:

Subd. 12.

Fraudulent, deceptive, and dishonest practices.

(a) Prohibitions. For the
purposes of section 82.82, subdivision 1, clause (b), the following acts and practices constitute
fraudulent, deceptive, or dishonest practices:

(1) act on behalf of more than one party to a transaction without the knowledge and
consent of all parties;

(2) act in the dual capacity of licensee and undisclosed principal in any transaction;

(3) receive funds while acting as principal which funds would constitute trust funds if
received by a licensee acting as an agent, unless the funds are placed in a trust account.
Funds need not be placed in a trust account if a written agreement signed by all parties to
the transaction specifies a different disposition of the funds, in accordance with section
82.82, subdivision 1;

(4) violate any state or federal law concerning discrimination intended to protect the
rights of purchasers or renters of real estate;

(5) make a material misstatement in an application for a license or in any information
furnished to the commissioner;

(6) procure or attempt to procure a real estate license for deleted text begin himself or herself deleted text end new text begin the procuring
individual new text end or any person by fraud, misrepresentation, or deceit;

(7) represent membership in any real estate-related organization in which the licensee
is not a member;

(8) advertise in any manner that is misleading or inaccurate with respect to properties,
terms, values, policies, or services conducted by the licensee;

(9) make any material misrepresentation or permit or allow another to make any material
misrepresentation;

(10) make any false or misleading statements, or permit or allow another to make any
false or misleading statements, of a character likely to influence, persuade, or induce the
consummation of a transaction contemplated by this chapter;

(11) fail within a reasonable time to account for or remit any money coming into the
licensee's possession which belongs to another;

(12) commingle with deleted text begin his or her deleted text end new text begin the individual's new text end own money or property trust funds or
any other money or property of another held by the licensee;

(13) new text begin a new text end demand from a seller new text begin for new text end a commission deleted text begin to deleted text end new text begin or new text end compensation new text begin to new text end which the licensee
is not entitled, knowing that deleted text begin he or she deleted text end new text begin the individual new text end is not entitled to the commission new text begin or new text end
compensation;

(14) pay or give money or goods of value to an unlicensed person for any assistance or
information relating to the procurement by a licensee of a listing of a property or of a
prospective buyer of a property (this item does not apply to money or goods paid or given
to the parties to the transaction);

(15) fail to maintain a trust account at all times, as provided by law;

(16) engage, with respect to the offer, sale, or rental of real estate, in an anticompetitive
activity;

(17) represent on advertisements, cards, signs, circulars, letterheads, or in any other
manner, that deleted text begin he or she deleted text end new text begin the individual new text end is engaged in the business of financial planning unless
deleted text begin he or she deleted text end new text begin the individual new text end provides a disclosure document to the client. The document must
be signed by the client and a copy must be left with the client. The disclosure document
must contain the following:

(i) the basis of fees, commissions, or other compensation received by deleted text begin him or her deleted text end new text begin an
individual new text end in connection with rendering of financial planning services or financial counseling
or advice in the following language:

"My compensation may be based on the following:

(a) ... commissions generated from the products I sell you;

(b) ... fees; or

(c) ... a combination of (a) and (b). [Comments]";

(ii) the name and address of any company or firm that supplies the financial services or
products offered or sold by deleted text begin him or her deleted text end new text begin an individual new text end in the following language:

"I am authorized to offer or sell products and/or services issued by or through the
following firm(s):

[List]

The products will be traded, distributed, or placed through the clearing/trading firm(s)
of:

[List]";

(iii) the license(s) held by the person under this chapter or chapter 60A or 80A in the
following language:

"I am licensed in Minnesota as a(n):

(a) ... insurance agent;

(b) ... securities agent or broker/dealer;

(c) ... real estate broker or salesperson;

(d) ... investment adviser"; and

(iv) the specific identity of any financial products or services, by category, for example
mutual funds, stocks, or limited partnerships, the person is authorized to offer or sell in the
following language:

"The license(s) entitles me to offer and sell the following products and/or services:

(a) ... securities, specifically the following: [List];

(b) ... real property;

(c) ... insurance; and

(d) ... other: [List]."

(b) Determining violation. A licensee shall be deemed to have violated this section if
the licensee has been found to have violated sections 325D.49 to 325D.66, by a final decision
or order of a court of competent jurisdiction.

(c) Commissioner's authority. Nothing in this section limits the authority of the
commissioner to take actions against a licensee for fraudulent, deceptive, or dishonest
practices not specifically described in this section.

Sec. 14.

Minnesota Statutes 2020, section 82B.021, is amended by adding a subdivision
to read:

new text begin Subd. 14a. new text end

new text begin Evaluation. new text end

new text begin "Evaluation" means an estimate of the value of real property,
made in accordance with the Interagency Appraisal and Evaluation Guidelines provided to
an entity regulated by a federal financial institution's regulatory agency, for use in a real
estate-related financial transaction for which an appraisal is not required by federal law.
new text end

Sec. 15.

Minnesota Statutes 2020, section 82B.021, is amended by adding a subdivision
to read:

new text begin Subd. 16a. new text end

new text begin Interagency Appraisal and Evaluation Guidelines. new text end

new text begin "Interagency Appraisal
and Evaluation Guidelines" means the appraisal and evaluation guidelines provided by a
federal financial institution's regulatory agency, as provided by Federal Register, volume
75, page 77450 (2010), as amended.
new text end

Sec. 16.

Minnesota Statutes 2020, section 82B.021, subdivision 18, is amended to read:

Subd. 18.

Licensed real property appraiser.

"Licensed real property appraiser" means
an individual licensed under this chapter to perform appraisals on noncomplex one-family
to four-family residential units or agricultural property having a transactional value of less
than $1,000,000 and complex one-family to four-family residential units or agricultural
property having a transactional value of less than deleted text begin $250,000 deleted text end new text begin $400,000 new text end .

Sec. 17.

Minnesota Statutes 2020, section 82B.03, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Evaluation. new text end

new text begin A licensed real estate appraiser may provide an evaluation. When
providing an evaluation, a licensed real estate appraiser is not engaged in real estate appraisal
activity and is not subject to this chapter. An evaluation by a licensed real estate appraiser
under this subdivision must contain a disclosure that the evaluation is not an appraisal.
new text end

Sec. 18.

Minnesota Statutes 2020, section 82B.11, subdivision 3, is amended to read:

Subd. 3.

Licensed residential real property appraiser.

A licensed residential real
property appraiser may appraise noncomplex residential property or agricultural property
having a transaction value less than $1,000,000 and complex residential or agricultural
property having a transaction value less than deleted text begin $250,000 deleted text end new text begin $400,000 new text end .

Sec. 19.

Minnesota Statutes 2020, section 82B.195, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Evaluation. new text end

new text begin When providing an evaluation, a licensed real estate appraiser is
not required to comply with the Uniform Standards of Professional Appraisal Practice.
new text end

Sec. 20.

new text begin [82B.25] VALUATION BIAS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "valuation bias" means to
explicitly, implicitly, or structurally select data and apply that data to an appraisal
methodology or technique in a biased manner that harms a protected class, as defined by
the Fair Housing Act of 1968, as amended.
new text end

new text begin Subd. 2. new text end

new text begin Education. new text end

new text begin Within two years of receiving a license under this chapter, and as
required by the Appraiser Qualifications Board, a real property appraiser shall provide to
the commissioner evidence of satisfactory completion of a continuing education course on
the valuation bias of real property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2021. A real property
appraiser who has received their license prior to the effective date of this section must
complete the course required by this section by August 31, 2023.
new text end

Sec. 21.

Minnesota Statutes 2020, section 115C.094, is amended to read:

115C.094 ABANDONED UNDERGROUND STORAGE TANKS.

(a) As used in this section, an abandoned underground petroleum storage tank means
an underground petroleum storage tank that was:

(1) taken out of service prior to December 22, 1988; deleted text begin or
deleted text end

(2) taken out of service on or after December 22, 1988, if the current property owner
did not know of the existence of the underground petroleum storage tank and could not have
reasonably been expected to have known of the tank's existence at the time the owner first
acquired right, title, or interest in the tank deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) taken out of service and is located on property that is being held by the state in trust
for local taxing districts under section 281.25.
new text end

(b) The board may contract for:

(1) a statewide assessment in order to determine the quantity, location, cost, and feasibility
of removing abandoned underground petroleum storage tanks;

(2) the removal of an abandoned underground petroleum storage tank; and

(3) the removal and disposal of petroleum-contaminated soil if the removal is required
by the commissioner at the time of tank removal.

(c) Before the board may contract for removal of an abandoned petroleum storage tank,
the tank owner must provide the board with written access to the property and release the
board from any potential liability for the work performed.

new text begin (d) If at the time of the forfeiture of property identified under paragraph (a), clause (3),
the property owner or the owner's heirs, devisees, or representatives, or any person to whom
the right to pay taxes was granted by statute, mortgage, or other agreement, repurchases the
property under section 282.241, the board's contracted costs for the underground storage
tank removal project must be included as a special assessment included in the repurchase
price, as provided under section 282.251, and must be returned to the board upon the sale
of the property.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Money in the fund is appropriated to the board for the purposes of this section.

Sec. 22.

Minnesota Statutes 2020, section 308A.201, subdivision 12, is amended to read:

Subd. 12.

Electric cooperative powers.

(a) An electric cooperative has the power and
authority to:

(1) make loans to its members;

(2) prerefund debt;

(3) obtain funds through negotiated financing or public sale;

(4) borrow money and issue its bonds, debentures, notes, or other evidence of
indebtedness;

(5) mortgage, pledge, or otherwise hypothecate its assets as may be necessary;

(6) invest its resources;

(7) deposit money in state and national banks and trust companies authorized to receive
deposits; and

(8) exercise all other powers and authorities granted to cooperatives.

(b) A cooperative organized to provide rural electric power may enter agreements and
contracts with other electric power cooperatives or with a cooperative constituted of electric
power cooperatives to share losses and risk of losses to their transmission and distribution
lines, transformers, substations, and related appurtenances from storm, sleet, hail, tornado,
cyclone, hurricane, or windstorm. An agreement or contract or a cooperative formed to
share losses under this paragraph is not subject to the laws of this state relating to insurance
and insurance companies.

new text begin (c) An electric cooperative, an affiliate of the cooperative formed to provide broadband,
or another entity pursuant to an agreement with the cooperative or the cooperative's affiliate
may use the cooperative, affiliate, or entity's existing or subsequently acquired electric
transmission or distribution easements for broadband infrastructure and to provide broadband
service, which may include an agreement to lease fiber capacity. To exercise rights granted
under this paragraph, the cooperative must provide to the property owner on which the
easement is located two written notices, at least two months apart, that the cooperative
intends to use the easement for broadband purposes. The use of the easement for broadband
services vests and runs with the land beginning six months after the first notice is provided
under paragraph (d) unless a court action challenging the use of the easement for broadband
purposes has been filed before that time by the property owner as provided under paragraph
(e). The cooperative must also file evidence of the notices for recording with the county
recorder.
new text end

new text begin (d) The cooperative's notices under paragraph (c) must be sent by first class mail to the
last known address of the owner of the property on which the easement is located or by
printed insertion in the property owner's utility bill. The notice must include the following:
new text end

new text begin (1) the name and mailing address of the cooperative;
new text end

new text begin (2) a narrative describing the nature and purpose of the intended easement use;
new text end

new text begin (3) a description of any trenching or other underground work expected to result from
the intended use, including the anticipated time frame for the work;
new text end

new text begin (4) a phone number of a cooperative employee to contact regarding the easement; and
new text end

new text begin (5) the following statement, in bold red lettering: "It is important to make any challenge
by the deadline to preserve any legal rights you may have."
new text end

new text begin (e) A property owner, within six months after receiving notice under paragraph (d), may
commence an action seeking to recover damages for an electric cooperative's use of an
electric transmission or distribution easement for broadband service purposes. If the claim
for damages is under $15,000, the claim may be brought in conciliation court.
Notwithstanding any other law to the contrary, the procedures and substantive matters set
forth in this subdivision govern an action under this paragraph and are the exclusive means
to bring a claim for compensation with respect to a notice of intent to use a cooperative
transmission or distribution easement for broadband purposes. To commence an action
under this paragraph, the property owner must serve a complaint upon the electric cooperative
as in a civil action and file the complaint with the district court for the county in which the
easement is located. The complaint must state whether the property owner (1) is challenging
the electric cooperative's right to use the easement for broadband services or infrastructure
as authorized under paragraph (c), (2) is seeking damages as provided under paragraph (f),
or (3) both.
new text end

new text begin (f) If the property owner is seeking damages, the electric cooperative may, at any time
after answering the complaint, (1) deposit with the court administrator an amount equal to
the cooperative's estimate of damages, up to $5,000, and (2) after making the deposit, use
the electric transmission or service line easements for broadband purposes, conditioned on
an obligation to pay the amount of damages determined by the court. If the property owner
is challenging the electric cooperative's right to use the easement for broadband services or
infrastructure as authorized under paragraph (c), after the electric cooperative answers the
complaint the district court must promptly hold a hearing on the property owner's challenge.
If the district court denies the property owner's challenge, the electric cooperative may
proceed to make a deposit and make use of the easement for broadband service purposes,
as provided under clause (2).
new text end

new text begin (g) In an action involving a property owner's claim for damages, the landowner has the
burden to prove the existence and amount of any net reduction in the fair market value of
the property, considering the existence, installation, construction, maintenance, modification,
operation, repair, replacement, or removal of broadband infrastructure in the easement, as
well as any benefit to the property from access to broadband service. Consequential or
special damages must not be awarded. Evidence of revenue, profits, fees, income, or similar
benefits to the electric cooperative, the cooperative's affiliate, or a third party is inadmissible.
Any fees or costs incurred as a result of an action under this subdivision must be paid by
the party that incurred the fees or costs.
new text end

new text begin (h) Nothing in this section limits in any way an electric cooperative's existing easement
rights, including but not limited to rights an electric cooperative has or may acquire to
transmit communications for electric system operations or otherwise.
new text end

new text begin (i) Placement of broadband infrastructure for use in providing broadband service under
paragraphs (c) to (h) in any portion of an electric transmission or distribution easement
located in the public right-of-way is subject to local government permitting and right-of-way
management authority under section 237.163, and the placement must be coordinated with
the relevant local government unit to minimize potential future relocations. The cooperative
must notify a local government unit prior to placing infrastructure for broadband service in
an easement that is in or adjacent to the local government unit's public right-of-way.
new text end

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

new text begin (1) "broadband infrastructure" has the meaning given in section 116J.394; and
new text end

new text begin (2) "broadband service" means broadband infrastructure and any services provided over
the infrastructure that offer advanced telecommunications capability and Internet access.
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. 23.

new text begin [332.61] INFORMATIVE DISCLOSURE.
new text end

new text begin A lead generator must prominently make the following disclosure on all print, electronic,
and nonprint solicitations, including advertising on websites, radio, or television: "This
company does not actually provide any of the credit services you are seeking. We ONLY
refer you to companies that want to provide some or all of those services."
new text end

Sec. 24.

Minnesota Statutes 2020, section 349.11, is amended to read:

349.11 PURPOSE.

The purpose of sections 349.11 to 349.22 is to regulate lawful gambling, to insure
integrity of operations, deleted text begin and deleted text end to provide for the use of net profits only for lawful purposes new text begin ,
and to authorize only those games or game features discussed in this chapter new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 6, 2022.
new text end

Sec. 25.

Minnesota Statutes 2020, section 349.12, subdivision 12a, is amended to read:

Subd. 12a.

Electronic bingo device.

"Electronic bingo device" means a handheld and
portable electronic device that:

(1) is used by a bingo player to:

(i) monitor bingo paper sheets or a facsimile of a bingo paper sheet purchased and played
at the time and place of an organization's bingo occasion, or to play an electronic bingo
game that is linked with other permitted premises;

(ii) activate numbers announced or displayed, and to compare the numbers to the bingo
faces previously stored in the memory of the device;

(iii) identify a winning bingo pattern or game requirement; and

(iv) play against other bingo players;

(2) limits the play of bingo faces to 36 faces per game;

(3) requires coded entry to activate play but does not allow the use of a coin, currency,
or tokens to be inserted to activate play;

(4) may only be used for play against other bingo players in a bingo game;

new text begin (5) may only display the results of the electronic bingo game in a manner typically
associated with bingo played in a paper format, may only display the grid of numbers and
letters typically associated with paper bingo, and may not display or simulate any other
form of gambling, entertainment, slot machines, electronic video lotteries, or video games
of chance;
new text end

new text begin (6) has no spinning reels or other representations that mimic a slot machine, including
but not limited to nonstraight win line graphics, nonstraight pay line graphics, open all
features, single button press reveals, hold and spin features, delayed reveals, cascading or
tumbling reveals, bonus games, bonus wheels, free play, free spins, or screens or game
features that are triggered after the initial symbols are revealed that display the results of
the game;
new text end

deleted text begin (5) deleted text end new text begin (7) new text end has no additional function as an amusement or gambling device other than as an
electronic pull-tab game defined under section 349.12, subdivision 12c;

deleted text begin (6) deleted text end new text begin (8) new text end has the capability to ensure adequate levels of security internal controls;

deleted text begin (7) deleted text end new text begin (9) new text end has the capability to permit the board to electronically monitor the operation of
the device and the internal accounting systems; and

deleted text begin (8) deleted text end new text begin (10) new text end has the capability to allow use by a player who is visually impaired.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 6, 2022.
new text end

Sec. 26.

Minnesota Statutes 2020, section 349.12, subdivision 12b, is amended to read:

Subd. 12b.

Electronic pull-tab device.

"Electronic pull-tab device" means a handheld
and portable electronic device that:

(1) is used to play one or more electronic pull-tab games;

(2) requires coded entry to activate play but does not allow the use of coin, currency, or
tokens to be inserted to activate play;

(3) requires that a player must new text begin manually new text end activate or open each electronic pull-tab ticket
and new text begin also manually activate or open new text end each deleted text begin individual deleted text end line, row, or column of deleted text begin each electronic
pull-tab ticket deleted text end new text begin symbols on each electronic pull-tab ticket with a separate push of a button,
and must display the underlying symbols in a given line, row, or column immediately after
the player manually activates or opens the applicable line, row, or column of symbols new text end ;

(4) maintains information pertaining to accumulated win credits that may be applied to
games in play or redeemed upon termination of play;

new text begin (5) may only display the results of the electronic pull-tab game in a manner typically
associated with paper pull-tabs tickets, may only display symbols typically associated with
paper pull-tab tickets, may not include continuation play, bonus games, or additional screens
or game features that display the results of the game after the initial symbols are revealed,
and may not display or simulate any other form of gambling, entertainment, slot machines,
electronic video lotteries, or video games of chance;
new text end

deleted text begin (5) deleted text end new text begin (6) new text end has no spinning reels or other representations that mimic a video slot machine new text begin ,
including but not limited to nonstraight win line graphics, nonstraight pay line graphics,
open all features, single button press reveals, hold and spin features, delayed reveals,
cascading or tumbling reveals, bonus games, bonus wheels, free play, free spins, progressive
prizes or jackpots, or screens or game features that are triggered after the initial symbols
are revealed that display the results of the game new text end ;

deleted text begin (6) deleted text end new text begin (7) new text end has no additional function as a gambling device other than as an electronic-linked
bingo game played on a device defined under section 349.12, subdivision 12a;

deleted text begin (7) deleted text end new text begin (8) new text end may incorporate an amusement game feature as part of the pull-tab game but
may not require additional consideration for that feature or award any prize, or other benefit
for that feature;

deleted text begin (8) deleted text end new text begin (9) new text end may have auditory or visual enhancements to promote or provide information
about the game being played, provided the component does not affect the outcome of a
game or display the results of a game;

deleted text begin (9) deleted text end new text begin (10) new text end maintains, on nonresettable meters, a printable, permanent record of all
transactions involving each device and electronic pull-tab games played on the device;

deleted text begin (10) deleted text end new text begin (11) new text end is not a pull-tab dispensing device as defined under subdivision 32a; and

deleted text begin (11) deleted text end new text begin (12) new text end has the capability to allow use by a player who is visually impaired.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 6, 2022.
new text end

Sec. 27.

Minnesota Statutes 2020, section 349.12, subdivision 12c, is amended to read:

Subd. 12c.

Electronic pull-tab game.

"Electronic pull-tab game" means a pull-tab game
containing:

(1) facsimiles of pull-tab tickets that are played on an electronic pull-tab device new text begin , provided
that any game with multiple lines, rows, or columns of symbols requires a separate push of
a button to reveal the symbols underneath the applicable line, row, or column and results
are displayed pursuant to subdivision 12b new text end ;

(2) a predetermined, finite number of winning and losing tickets, not to exceed 7,500
tickets;

(3) the same price for each ticket in the game;

(4) a price paid by the player of not less than 25 cents per ticket;

(5) tickets that are in conformance with applicable board rules for pull-tabs;

(6) winning tickets that comply with prize limits under section 349.211;

(7) a unique serial number that may not be regenerated;

(8) an electronic flare that displays the game name; form number; predetermined, finite
number of tickets in the game; and prize tier; and

(9) no spinning reels or other representations that mimic a video slot machine new text begin as provided
in subdivision 12b, clause (6) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 6, 2022.
new text end

Sec. 28.

Minnesota Statutes 2020, section 386.375, subdivision 3, is amended to read:

Subd. 3.

Consumer education information.

(a) A person other than the mortgagor or
fee owner who transfers or offers to transfer an abstract of title shall present to the mortgagor
or fee owner basic information in plain English about abstracts of title. This information
must be sent in a form prepared and approved by the commissioner of commerce and must
contain at least the following items:

(1) a definition and description of abstracts of title;

(2) an explanation that holders of abstracts of title must maintain it with reasonable care;

(3) an approximate cost or range of costs to replace a lost or damaged abstract of title; new text begin
and
new text end

deleted text begin (4) an explanation that abstracts of title may be required to sell, finance, or refinance
real estate; and
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end an explanation of options for storage of abstracts.

(b) The commissioner shall prepare the form for use under this subdivision as soon as
possible. This subdivision does not apply until 60 days after the form is approved by the
commissioner.

(c) A person violating this subdivision is subject to a penalty of $200 for each violation.

Sec. 29. new text begin APPRAISER INTERNET COURSE REQUIREMENTS.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 45.305, subdivision 1a, and 45.306,
subdivision 1a, education providers may submit to the commissioner of commerce for
approval a classroom course under Minnesota Statutes, section 45.25, subdivision 2a, clause
(3), or a distance learning course, as defined in Minnesota Statutes, section 45.25, subdivision
5a, that has not been approved by the International Distance Education Certification Center.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires after the peacetime emergency declared by the governor in an executive order that
relates to the infectious disease known as COVID-19 is terminated or rescinded or December
31, 2021, whichever is later.
new text end

Sec. 30. new text begin MINNESOTA COUNCIL ON ECONOMIC EDUCATION.
new text end

new text begin (a) The Minnesota Council on Economic Education, with funds made available through
grants from the commissioner of education in fiscal years 2022 and 2023, must:
new text end

new text begin (1) provide professional development to Minnesota's kindergarten through grade 12
teachers implementing state graduation standards in learning areas related to economic
education;
new text end

new text begin (2) support the direct-to-student ancillary economic and personal finance programs that
Minnesota teachers supervise and coach; and
new text end

new text begin (3) provide support to geographically diverse affiliated higher education-based centers
for economic education, including those based at Minnesota State University Mankato,
Minnesota State University Moorhead, St. Cloud State University, St. Catherine University,
and the University of St. Thomas, as the centers' work relates to activities in clauses (1) and
(2).
new text end

new text begin (b) By February 15 of each year following the receipt of a grant, the Minnesota Council
on Economic Education must report to the commissioner of education on the number and
type of in-person and online teacher professional development opportunities provided by
the Minnesota Council on Economic Education or affiliated state centers. The report must
include a description of the content, length, and location of the programs; the number of
preservice and licensed teachers receiving professional development through each of these
opportunities; and a summary of evaluations of professional opportunities for teachers.
new text end

new text begin (c) On August 15, 2021, the Department of Education must pay the full amount of the
grant for fiscal year 2022 to the Minnesota Council on Economic Education. On August
15, 2022, the Department of Education must pay the full amount of the grant for fiscal year
2023 to the Minnesota Council on Economic Education. The Minnesota Council on Economic
Education must submit its fiscal reporting in the form and manner specified by the
commissioner. The commissioner may request additional information as necessary.
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. 31. new text begin CONSUMER DEBT COLLECTION LANGUAGE BARRIER WORKING
GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce shall convene a working
group to review language barriers and the effect on creditors, debt collectors, and limited
English proficient communities.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The working group consists of the following members:
new text end

new text begin (1) the commissioner of commerce or a designee;
new text end

new text begin (2) one member appointed by the Attorney General's Office;
new text end

new text begin (3) two members of the public representing creditors or debt collectors, appointed by
the industry and subject to approval by the commissioner of commerce;
new text end

new text begin (4) two members of the public representing consumer rights, appointed by consumer
rights advocate organizations and subject to approval by the commissioner of commerce;
new text end

new text begin (5) one member appointed by the Council for Minnesotans of African Heritage;
new text end

new text begin (6) one member appointed by the Minnesota Council on Latino Affairs;
new text end

new text begin (7) one member appointed by the Council on Asian-Pacific Minnesotans;
new text end

new text begin (8) two members appointed by the Indian Affairs Council; and
new text end

new text begin (9) one member appointed by Mid-Minnesota Legal Aid.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin (a) By January 1, 2022, the commissioner of commerce shall report
to the chairs and ranking minority members of the house of representatives and senate
committees with jurisdiction over commerce with the working group's recommendations
to address language barriers between creditors, debt collectors, and consumers.
new text end

new text begin (b) The working group shall examine:
new text end

new text begin (1) current practices for communicating with consumers in the consumer's preferred
language when attempting to collect a debt or enforce a lien;
new text end

new text begin (2) the availability of translation services or a written glossary of financial terms for
consumers whose primary language is not English; and
new text end

new text begin (3) state and federal laws involving issues under clauses (1) and (2).
new text end

Sec. 32. new text begin COLLECTION AGENCY EMPLOYEES; WORK FROM HOME.
new text end

new text begin An employee of a collection agency licensed under Minnesota Statutes, chapter 332,
may work from a location other than the licensee's business location if the licensee and
employee comply with all the requirements of Minnesota Statutes, section 332.33, that
would apply if the employee were working at the business location. The fee for a collector
registration or renewal under Minnesota Statutes, section 332.33, subdivision 3, entitles the
individual collector to work at a licensee's business location or a location otherwise acceptable
under this section. An additional branch license is not required for a location used under
this section. This section expires May 31, 2022.
new text end

Sec. 33. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 45.017; 45.306, subdivision 1; and 115C.13, new text end new text begin are
repealed.
new text end

ARTICLE 7

ENERGY CONSERVATION AND STORAGE

Section 1.

Minnesota Statutes 2020, section 16B.86, is amended to read:

16B.86 deleted text begin PRODUCTIVITY deleted text end new text begin STATE BUILDING ENERGY CONSERVATION
IMPROVEMENT REVOLVING new text end LOAN ACCOUNT.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 16B.87, the
following terms have the meanings given.
new text end

new text begin (b) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (d).
new text end

new text begin (c) "Energy conservation improvement" has the meaning given in section 216B.241,
subdivision 1, paragraph (e).
new text end

new text begin (d) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
new text end

new text begin (e) "Project" means the energy conservation improvements financed by a loan made
under this section.
new text end

new text begin (f) "State building" means an existing building owned by the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Account established. new text end

The deleted text begin productivity deleted text end new text begin state building energy conservation
improvement revolving new text end loan account is new text begin established as new text end a deleted text begin special deleted text end new text begin separate new text end account in the state
treasury. new text begin The commissioner shall manage the account and shall credit to the account
investment income, repayments of principal and interest, and any other earnings arising
from assets of the account. new text end Money in the account is appropriated to the commissioner of
administration to make loans to deleted text begin finance agency projects that will result in either reduced
operating costs or increased revenues, or both, for a state agency deleted text end new text begin state agencies to implement
energy conservation and energy efficiency improvements in state buildings under section
16B.87 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 2020, section 16B.87, is amended to read:

16B.87 AWARD AND REPAYMENT OF deleted text begin PRODUCTIVITY deleted text end new text begin STATE BUILDING
ENERGY IMPROVEMENT CONSERVATION new text end LOANS.

Subdivision 1.

Committee.

The deleted text begin Productivity deleted text end new text begin State Building Energy Conservation
Improvement new text end Loan Committee consists of the commissioners of administration, management
and budget, and deleted text begin revenue deleted text end new text begin commerce new text end . The commissioner of administration serves as chair of
the committee. The members serve without compensation or reimbursement for expenses.

Subd. 2.

Award and terms of loans.

new text begin (a) new text end An agency shall apply for a loan on a form
deleted text begin provided deleted text end new text begin developed new text end by the commissioner of administration deleted text begin . deleted text end new text begin that requires an applicant to
submit the following information:
new text end

new text begin (1) a description of the proposed project, including existing equipment, structural
elements, operating characteristics, and other conditions affecting energy use that the energy
conservation improvements financed by the loan modify or replace;
new text end

new text begin (2) the total estimated project cost and the loan amount sought;
new text end

new text begin (3) a detailed project budget;
new text end

new text begin (4) projections of the proposed project's expected energy and monetary savings;
new text end

new text begin (5) information demonstrating the agency's ability to repay the loan;
new text end

new text begin (6) a description of the energy conservation programs offered by the utility providing
service to the state building from which the applicant seeks additional funding for the project;
and
new text end

new text begin (7) any additional information requested by the commissioner.
new text end

new text begin (b) new text end The committee shall review applications for loans and shall award a loan based upon
criteria adopted by the committee. deleted text begin The committee shall determine the amount, interest, and
other terms of the loan. The time for repayment of a loan may not exceed five years. deleted text end new text begin A loan
made under this section must:
new text end

new text begin (1) be at or below the market rate of interest, including a zero interest loan; and
new text end

new text begin (2) have a term no longer than seven years.
new text end

new text begin (c) In making awards, the committee shall give preference to:
new text end

new text begin (1) applicants that have sought funding for the project through energy conservation
projects offered by the utility serving the state building that is the subject of the application;
and
new text end

new text begin (2) to the extent feasible, applications for state buildings located within the electric retail
service area of the utility that is subject to section 116C.779.
new text end

Subd. 3.

Repayment.

An agency receiving a loan under this section shall repay the loan
according to the terms of the loan agreement. The principal and interest must be paid to the
commissioner of administration new text begin , new text end who shall deposit it in the deleted text begin productivity deleted text end new text begin state building energy
conservation improvement revolving new text end loan deleted text begin fund deleted text end new text begin account. Payments of loan principal and
interest must begin no later than one year after the project is completed new text end .

Sec. 3.

new text begin [216B.1698] INNOVATIVE CLEAN TECHNOLOGIES.
new text end

new text begin (a) For purposes of this section, "innovative clean technology" means advanced energy
technology that is:
new text end

new text begin (1) environmentally superior to technologies currently in use;
new text end

new text begin (2) expected to offer energy-related, environmental, or economic benefits; and
new text end

new text begin (3) not widely deployed by the utility industry.
new text end

new text begin (b) A public utility may petition the commission for authorization to invest in a project
or projects to deploy one or more innovative clean technologies to further the development,
commercialization, and deployment of innovative clean technologies that benefit the public
utility's customers.
new text end

new text begin (c) The commission may approve a petition under paragraph (b) if it finds:
new text end

new text begin (1) the technologies proposed are innovative clean technologies;
new text end

new text begin (2) the investment in an innovative clean energy technology is likely to provide benefits
to customers that exceed the technology's cost;
new text end

new text begin (3) the public utility is meeting its energy conservation goals under section 216B.241;
and
new text end

new text begin (4) the project complies with the spending limits under paragraph (d).
new text end

new text begin (d) Over any three consecutive years, a public utility must not spend more on innovative
clean technologies under this section than:
new text end

new text begin (1) for a public utility providing service to 200,000 or more retail Minnesota customers,
$6,000,000; or
new text end

new text begin (2) for a public utility providing service to fewer than 200,000 retail Minnesota customers,
$3,000,000.
new text end

new text begin (e) The commission may authorize a public utility to file a rate schedule containing
provisions that automatically adjust charges for public utility service in direct relation to
changes in prudent costs incurred by a public utility under this section, up to the amounts
allowed under paragraph (d).To the extent the public utility investment under this section
is for a capital asset, the utility may request that the asset be included in the utility's rate
base.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2020, section 216B.2401, is amended to read:

216B.2401 ENERGY SAVINGS new text begin AND OPTIMIZATION new text end POLICY GOAL.

new text begin (a) new text end The legislature finds that energy savings are an energy resource, and that cost-effective
energy savings are preferred over all other energy resources. new text begin In addition, the legislature
finds that optimizing the timing and method used by energy consumers to manage energy
use provides significant benefits to the consumers and to the utility system as a whole. new text end The
legislature further finds that cost-effective energy savings new text begin and load management programs new text end
should be procured systematically and aggressively in order to reduce utility costs for
businesses and residents, improve the competitiveness and profitability of businesses, create
more energy-related jobs, reduce the economic burden of fuel imports, and reduce pollution
and emissions that cause climate change. Therefore, it is the energy policy of the state of
Minnesota to achieve annual energy savings deleted text begin equal deleted text end new text begin equivalent new text end to at least deleted text begin 1.5 deleted text end new text begin 2.5 new text end percent of
annual retail energy sales of electricity and natural gas through deleted text begin cost-effective energy
conservation improvement programs and rate design, energy efficiency achieved by energy
consumers without direct utility involvement, energy codes and appliance standards, programs
designed to transform the market or change consumer behavior, energy savings resulting
from efficiency improvements to the utility infrastructure and system, and other efforts to
promote energy efficiency and energy conservation. deleted text end new text begin multiple measures, including but not
limited to:
new text end

new text begin (1) cost-effective energy conservation improvement programs and efficient fuel-switching
utility programs under sections 216B.2402 to 216B.241;
new text end

new text begin (2) rate design;
new text end

new text begin (3) energy efficiency achieved by energy consumers without direct utility involvement;
new text end

new text begin (4) advancements in statewide energy codes and cost-effective appliance and equipment
standards;
new text end

new text begin (5) programs designed to transform the market or change consumer behavior;
new text end

new text begin (6) energy savings resulting from efficiency improvements to the utility infrastructure
and system; and
new text end

new text begin (7) other efforts to promote energy efficiency and energy conservation.
new text end

new text begin (b) A utility is encouraged to design and offer to customers load management programs
that enable: (1) customers to maximize the economic value gained from the energy purchased
from the customer's utility service provider; and (2) utilities to optimize the infrastructure
and generation capacity needed to effectively serve customers and facilitate the integration
of renewable energy into the energy system.
new text end

new text begin (c) The commissioner must provide a reasonable estimate of progress made toward the
statewide energy-savings goal under paragraph (a) in the annual report required under section
216B.241, subdivision 1c, and make recommendations for administrative or legislative
initiatives to increase energy savings toward that goal. The commissioner must annually
report on the energy productivity of the state's economy by estimating the ratio of economic
output produced in the most recently completed calendar year to the primary energy inputs
used in that year.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [216B.2402] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of section 216B.16, subdivision 6b, and
sections 216B.2401 to 216B.241, the following terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Consumer-owned utility. new text end

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

new text begin Subd. 3. new text end

new text begin Cumulative lifetime savings. new text end

new text begin "Cumulative lifetime savings" means the total
electric energy or natural gas savings in a given year from energy conservation improvements
installed in that given year and energy conservation improvements installed in previous
years that are still in operation.
new text end

new text begin Subd. 4. new text end

new text begin Efficient fuel-switching improvement. new text end

new text begin "Efficient fuel-switching improvement"
means a project that:
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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
new text end

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

new text begin An efficient fuel-switching improvement is not an energy conservation improvement or
energy efficiency even if it results in a net reduction in electricity or natural gas consumption.
new text end

new text begin Subd. 5. new text end

new text begin Energy conservation. new text end

new text begin "Energy conservation" means an action that results in
a net reduction in electricity or natural gas consumption. Energy conservation does not
include an efficient fuel-switching improvement.
new text end

new text begin Subd. 6. new text end

new text begin Energy conservation improvement. new text end

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

new text begin Subd. 7. new text end

new text begin Energy efficiency. new text end

new text begin "Energy efficiency" means measures or programs, including
energy conservation measures or programs, that: (1) target consumer behavior, equipment,
processes, or devices; (2) are designed to reduce the consumption of electricity or natural
gas on either an absolute or per unit of production basis; and (3) do not reduce the quality
or level of service provided to an energy consumer.
new text end

new text begin Subd. 8. new text end

new text begin Fuel. new text end

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

new text begin Subd. 9. new text end

new text begin Fuel neutral. new text end

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

new text begin Subd. 10. new text end

new text begin Gross annual retail energy sales. new text end

new text begin "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:
new text end

new text begin (1) gas sales to:
new text end

new text begin (i) a large energy facility;
new text end

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

new text begin (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;
new text end

new text begin (2) electric sales to 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; or
new text end

new text begin (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 utility's gross annual retail sales.
new text end

new text begin Subd. 11. new text end

new text begin Investments and expenses of a public utility. new text end

new text begin "Investments and expenses of
a public utility" means the investments and expenses incurred by a public utility in connection
with an energy conservation improvement.
new text end

new text begin Subd. 12. new text end

new text begin Large customer facility. new text end

new text begin "Large customer facility" means all buildings,
structures, equipment, and installations at a single site that in aggregate: (1) impose a peak
electrical demand on an electric utility's system of at least 20,000 kilowatts, measured in
the same manner as the utility that serves the customer facility measures electric demand
for billing purposes; or (2) consume at least 500,000,000 cubic feet of natural gas annually.
When calculating peak electrical demand, a large customer facility may include demand
offset by on-site cogeneration facilities and, if engaged in mineral extraction, may include
peak energy demand from the large customer facility's mining processing operations.
new text end

new text begin Subd. 13. new text end

new text begin Large energy facility. new text end

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

new text begin Subd. 14. new text end

new text begin Lifetime energy savings. new text end

new text begin "Lifetime energy savings" means the amount of
savings a particular energy conservation improvement is projected to produce over the
improvement's effective useful lifetime.
new text end

new text begin Subd. 15. new text end

new text begin Load management. new text end

new text begin "Load management" means an activity, service, or
technology that changes the timing or the efficiency of a customer's use of energy that allows
a utility or a customer to: (1) respond to local and regional energy system conditions; or (2)
reduce peak demand for electricity or natural gas. Load management that reduces a customer's
net annual energy consumption is also energy conservation.
new text end

new text begin Subd. 16. new text end

new text begin Low-income household. new text end

new text begin "Low-income household" means a household whose
household income is 60 percent or less of the state median household income.
new text end

new text begin Subd. 17. new text end

new text begin Low-income programs. new text end

new text begin "Low-income programs" means energy conservation
improvement programs that directly serve the needs of low-income households, including
low-income renters.
new text end

new text begin Subd. 18. new text end

new text begin Member. new text end

new text begin "Member" has the meaning given in section 308B.005, subdivision
15.
new text end

new text begin Subd. 19. new text end

new text begin Multifamily building. new text end

new text begin "Multifamily building" means a residential building
containing five or more dwelling units.
new text end

new text begin Subd. 20. new text end

new text begin Preweatherization measure. new text end

new text begin "Preweatherization measure" means an
improvement that is necessary to allow energy conservation improvements to be installed
in a home.
new text end

new text begin Subd. 21. new text end

new text begin Qualifying utility. new text end

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

new text begin Subd. 22. new text end

new text begin Waste heat recovered and used as thermal energy. new text end

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

new text begin Subd. 23. new text end

new text begin Waste heat recovery converted into electricity. new text end

new text begin "Waste heat recovery
converted into electricity" means an energy recovery process that converts to electricity
energy from the heat of exhaust stacks or pipes used for engines or manufacturing or
industrial processes, or from the reduction of high pressure in water or gas pipelines, that
would otherwise be lost.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

new text begin [216B.2403] CONSUMER-OWNED UTILITIES; ENERGY CONSERVATION
AND OPTIMIZATION.
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:
new text end

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

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

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

new text begin Subd. 2. new text end

new text begin Consumer-owned utility; energy-savings goal. new text end

new text begin (a) Each individual
consumer-owned utility subject to this section has an annual energy-savings goal equivalent
to 1.5 percent of gross annual retail energy sales, which must be met with a minimum of
energy savings from energy conservation improvements equivalent to at least one 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:
new text end

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

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

new text begin (3) net energy savings from efficient fuel-switching improvements that meet the criteria
under subdivision 8; or
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin Subd. 3. new text end

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

new text begin (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.
new text end

new text begin (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:
new text end

new text begin (1) state why each goal is projected to be unmet; and
new text end

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

new text begin (c) A plan filed under this subdivision must provide:
new text end

new text begin (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
new text end

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

new text begin (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 program, including
an energy conservation program suggested by an outside source, including but not limited
to a political subdivision, nonprofit corporation, or community organization.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

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

new text begin (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 under this subdivision
for the consumer-owned utilities on an aggregate basis.
new text end

new text begin (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.
new text end

new text begin (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:
new text end

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

new text begin (2) recommission buildings;
new text end

new text begin (3) train building operators; and
new text end

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

new text begin (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 the consumer-owned
utility is required to file a plan under this subdivision. The request must be based on:
new text end

new text begin (1) historical energy conservation improvement program achievements;
new text end

new text begin (2) customer class makeup;
new text end

new text begin (3) projected load growth;
new text end

new text begin (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;
new text end

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

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

new text begin 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 one percent per year over
the consecutive years of the plan's duration, including the year the minimum energy savings
goal is adjusted.
new text end

new text begin Subd. 4. new text end

new text begin Consumer-owned utility; energy savings investment. new text end

new text begin (a) Except as otherwise
provided, a consumer-owned utility that the commissioner determines falls short of the
minimum energy savings goal from energy conservation improvements established in
subdivision 2, paragraph (a), for three consecutive years during which the utility has annually
spent on energy conservation improvements less than 1.5 percent of gross operating revenues
for an electric utility, or less than 0.5 percent of gross operating revenues for a natural gas
utility, must spend no less than the following amounts for energy conservation improvements:
new text end

new text begin (1) for a municipality, 0.5 percent of gross operating revenues from the sale of gas and
1.5 percent of gross operating revenues from the sale of electricity, excluding gross operating
revenues from electric and gas service provided in Minnesota to large electric customer
facilities; and
new text end

new text begin (2) for a cooperative electric association, 1.5 percent of gross operating revenues from
service provided in Minnesota, excluding gross operating revenues from service provided
in Minnesota to large electric customers facilities indirectly through a distribution cooperative
electric association.
new text end

new text begin (b) The commissioner must not impose the spending requirement under this subdivision
if the commissioner has determined that the utility has followed the commissioner's
recommendations, if any, provided under subdivision 3, paragraph (d).
new text end

new text begin (c) Upon request of a consumer-owned utility, the commissioner may reduce the amount
or duration of the spending requirement imposed under this subdivision, or both, if the
commissioner determines that the consumer-owned utility's failure to maintain the minimum
energy savings goal is the result of:
new text end

new text begin (1) a natural disaster or other emergency that is declared by the executive branch through
an emergency executive order that affects the consumer-owned utility's service area;
new text end

new text begin (2) a unique load distribution experienced by the consumer-owned utility; or
new text end

new text begin (3) other factors that the commissioner determines justifies a reduction.
new text end

new text begin (d) Unless the commissioner reduces the duration of the spending requirement under
paragraph (c), the spending requirement under this subdivision remains in effect until the
consumer-owned utility has met the minimum energy savings goal for three consecutive
years.
new text end

new text begin Subd. 5. new text end

new text begin Energy conservation programs for low-income households. new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (c) The commissioner must establish energy conservation programs for low-income
households funded through contributions made 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.
new text end

new text begin (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.
new text end

new text begin (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 July 1, 2022, 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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (h) A consumer-owned utility may elect to contribute money to the Healthy AIR account
under section 216B.241, subdivision 7, paragraph (h), 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.
new text end

new text begin Subd. 6. new text end

new text begin Recovery of expenses. new text end

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

new text begin Subd. 7. new text end

new text begin Ownership of preweatherization measure or energy conservation
improvement. new text end

new text begin (a) A preweatherization measure or energy conservation improvement
installed in a building under this section, excluding a system owned by a consumer-owned
utility that is designed to turn off, limit, or vary the delivery of energy, is the exclusive
property of the building owner, except to the extent that the improvement is subject to a
security interest in favor of the consumer-owned utility in case of a loan to the building
owner for the improvement.
new text end

new text begin (b) A consumer-owned utility has no liability for loss, damage, or injury directly or
indirectly caused by a preweatherization measure or energy conservation improvement,
unless a consumer-owned utility is determined to have been negligent in purchasing,
installing, or modifying a preweatherization measure or energy conservation improvement.
new text end

new text begin Subd. 8. new text end

new text begin Criteria for efficient fuel-switching improvements. new text end

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

new text begin (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 end

new text begin (2) results in a net reduction of statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric consumer-owned utility, the reduction in emissions
must be measured 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;
new text end

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

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

new text begin (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.
new text end

new text begin Subd. 9. new text end

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

new text begin (a) A consumer-owned utility must submit the
filings required under this section to the department using the department's electronic filing
system. The commissioner may approve an exemption from this requirement if a
consumer-owned utility is unable to submit filings via the department's electronic filing
system. All other interested parties must submit filings to the department via the department's
electronic filing system whenever practicable but may also file by personal delivery or by
mail.
new text end

new text begin (b) The submission of a document to the department's electronic filing system constitutes
service on the department. If a department rule requires service of a notice, order, or other
document by the department, a consumer-owned utility, or an interested party upon persons
on a service list maintained by the department, service may be made by personal delivery,
mail, or electronic service. Electronic service may be made only to persons on the service
list that have previously agreed in writing to accept electronic service at an e-mail address
provided to the department for electronic service purposes.
new text end

new text begin Subd. 10. new text end

new text begin Assessment. new text end

new text begin The commission or department may assess consumer-owned
utilities subject to this section to carry out the purposes of section 216B.241, subdivisions
1d, 1e, and 1f. An assessment under this subdivision must be proportionate to a
consumer-owned utility's gross operating revenue from sales of gas or electric service in
Minnesota during the previous calendar year, as applicable. Assessments under this
subdivision are not subject to the cap on assessments under section 216B.62 or any other
law.
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 2020, section 216B.241, subdivision 1a, is amended to read:

Subd. 1a.

deleted text begin Investment, expenditure, and contribution; public utility deleted text end new text begin Large customer
facility new text end .

deleted text begin (a) For purposes of this subdivision and subdivision 2, "public utility" has the
meaning given it in section 216B.02, subdivision 4. Each public utility shall spend and
invest for energy conservation improvements under this subdivision and subdivision 2 the
following amounts:
deleted text end

deleted text begin (1) for a utility that furnishes gas service, 0.5 percent of its gross operating revenues
from service provided in the state;
deleted text end

deleted text begin (2) for a utility that furnishes electric service, 1.5 percent of its gross operating revenues
from service provided in the state; and
deleted text end

deleted text begin (3) for a utility that furnishes electric service and that operates a nuclear-powered electric
generating plant within the state, two percent of its gross operating revenues from service
provided in the state.
deleted text end

deleted text begin For purposes of this paragraph (a), "gross operating revenues" do not include revenues
from large customer facilities exempted under paragraph (b), or from commercial gas
customers that are exempted under paragraph (c) or (e).
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end The owner of a large customer facility may petition the commissioner to exempt
both electric and gas utilities serving the large customer facility from deleted text begin the investment and
expenditure requirements of paragraph (a) deleted text end new text begin contributing to investments and expenditures
made under an energy and conservation optimization plan filed under subdivision 2 or
section 216B.2403, subdivision 3, new text end with respect to retail revenues attributable to the large
customer facility. The filing must include a discussion of the competitive or economic
pressures facing the owner of the facility and the efforts taken by the owner to identify,
evaluate, and implement energy conservation and efficiency improvements. A filing
submitted on or before October 1 of any year must be approved within 90 days and become
effective January 1 of the year following the filing, unless the commissioner finds that the
owner of the large customer facility has failed to take reasonable measures to identify,
evaluate, and implement energy conservation and efficiency improvements. If a facility
qualifies as a large customer facility solely due to its peak electrical demand or annual
natural gas usage, the exemption may be limited to the qualifying utility if the commissioner
finds that the owner of the large customer facility has failed to take reasonable measures to
identify, evaluate, and implement energy conservation and efficiency improvements with
respect to the nonqualifying utility. Once an exemption is approved, the commissioner may
request the owner of a large customer facility to submit, not more often than once every
five years, a report demonstrating the large customer facility's ongoing commitment to
energy conservation and efficiency improvement after the exemption filing. The
commissioner may request such reports for up to ten years after the effective date of the
exemption, unless the majority ownership of the large customer facility changes, in which
case the commissioner may request additional reports for up to ten years after the change
in ownership occurs. The commissioner may, within 180 days of receiving a report submitted
under this paragraph, rescind any exemption granted under this paragraph upon a
determination that the large customer facility is not continuing to make reasonable efforts
to identify, evaluate, and implement energy conservation improvements. A large customer
facility that is, under an order from the commissioner, exempt from the investment and
expenditure requirements of paragraph (a) as of December 31, 2010, is not required to
submit a report to retain its exempt status, except as otherwise provided in this paragraph
with respect to ownership changes. No exempt large customer facility may participate in a
utility conservation improvement program unless the owner of the facility submits a filing
with the commissioner to withdraw its exemption.

deleted text begin (c) deleted text end new text begin (b) new text end A commercial gas customer that is not a large customer facility and that purchases
or acquires natural gas from a public utility having fewer than 600,000 natural gas customers
in Minnesota may petition the commissioner to exempt gas utilities serving the commercial
gas customer from deleted text begin the investment and expenditure requirements of paragraph (a) deleted text end new text begin contributing
to investments and expenditures made under an energy and conservation optimization plan
filed under subdivision 2 or section 216B.2403, subdivision 3, new text end with respect to retail revenues
attributable to the commercial gas customer. The petition must be supported by evidence
demonstrating that the commercial gas customer has acquired or can reasonably acquire
the capability to bypass use of the utility's gas distribution system by obtaining natural gas
directly from a supplier not regulated by the commission. The commissioner shall grant the
exemption if the commissioner finds that the petitioner has made the demonstration required
by this paragraph.

deleted text begin (d) The commissioner may require investments or spending greater than the amounts
required under this subdivision for a public utility whose most recent advance forecast
required under section 216B.2422 or 216C.17 projects a peak demand deficit of 100
megawatts or greater within five years under midrange forecast assumptions.
deleted text end

deleted text begin (e) deleted text end new text begin (c) new text end A public utility new text begin , consumer-owned utility, new text end or owner of a large customer facility
may appeal a decision of the commissioner under paragraph new text begin (a) or new text end (b) deleted text begin , (c), or (d) deleted text end to the
commission under subdivision 2. In reviewing a decision of the commissioner under
paragraph new text begin (a) or new text end (b), deleted text begin (c), or (d), deleted text end the commission shall rescind the decision if it finds deleted text begin that the
required investments or spending will:
deleted text end

deleted text begin (1) not result in cost-effective energy conservation improvements; or
deleted text end

deleted text begin (2) otherwise deleted text end new text begin the decision is new text end not deleted text begin be deleted text end in the public interest.

new text begin (d) A public 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
to which the commissioner has issued an exemption 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. 8.

Minnesota Statutes 2020, section 216B.241, subdivision 1c, is amended to read:

Subd. 1c.

new text begin Public utility; new text end energy-saving goals.

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

(b) deleted text begin Each individual deleted text end new text begin A public new text end utility deleted text begin and association shall have deleted text end new text begin providing electric service
has new text end an annual energy-savings goal equivalent to deleted text begin 1.5 deleted text end new text begin 1.75 new text end percent of gross annual retail
energy sales unless modified by the commissioner under paragraph deleted text begin (d). deleted text end new text begin (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 must not be lowered by the commissioner. new text end The
savings goals must be calculated based on the most recent three-year weather-normalized
average. A new text begin public new text end utility deleted text begin or association deleted text end new text begin providing electric service new text end may elect to carry forward
energy savings in excess of deleted text begin 1.5 deleted text end new text begin 1.75 new text end 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. new text begin 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. new text end A particular energy savings can new text begin only new text end be used deleted text begin only for deleted text end new text begin to meet new text end one
year's goal.

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

deleted text begin (d) deleted text end new text begin (c) new text end In its energy conservation deleted text begin improvement deleted text end new text begin and optimization new text end plan filing, a new text begin public
new text end utility deleted text begin or association deleted text end may request the commissioner to adjust its annual energy-savings
percentage goal based on its historical conservation investment experience, customer class
makeup, load growth, a conservation potential study, or other factors the commissioner
determines warrants an adjustment.

new text begin (d) new text end 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.

deleted text begin A utility or association may include in its energy conservation plan energy savings from deleted text end new text begin
The balance of the 1.75 percent annual energy savings goal may be achieved through energy
savings from:
new text end

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

new text begin (2) new text end electric utility infrastructure projects approved by the commission under section
216B.1636 new text begin that result in increased efficiency greater than would have occurred through
normal maintenance activity; new text end or deleted text begin waste heat recovery converted into electricity projects that
may count as energy savings in addition to a minimum energy-savings goal of at least one
percent for energy conservation improvements. Energy savings from electric utility
infrastructure projects, as defined in section 216B.1636, may be included in the energy
conservation plan of a municipal utility or cooperative electric association. Electric utility
infrastructure projects must result in increased energy efficiency greater than that which
would have occurred through normal maintenance activity
deleted text end

new text begin (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 new text end .

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

deleted text begin (f) An association or deleted text end new text begin (e) A public new text end utility is not required to make energy conservation
investments to attain the energy-savings goals of this subdivision that are not cost-effective
even if the investment is necessary to attain the energy-savings goals. For the purpose of
this paragraph, in determining cost-effectiveness, the commissioner shall consider new text begin : (1) new text end the
costs and benefits to ratepayers, the utility, participants, and society deleted text begin . In addition, the
commissioner shall consider deleted text end new text begin ; (2) new text end the rate at which deleted text begin an association or municipal deleted text end new text begin a public new text end
utility is increasing new text begin both new text end its energy savings and its expenditures on energy conservation new text begin ;
and (3) the public utility's lifetime energy savings and cumulative energy savings new text end .

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

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

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

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

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

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

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.

Minnesota Statutes 2020, section 216B.241, subdivision 1d, is amended to read:

Subd. 1d.

Technical assistance.

(a) The commissioner shall evaluate energy conservation
improvement programs new text begin filed under this section and section 216B.2403 new text end on the basis of
cost-effectiveness and the reliability of the technologies employed. The commissioner shall,
by order, establish, maintain, and update energy-savings assumptions that must be used new text begin by
utilities new text end when filing energy conservation improvement programs. new text begin The department must track
a public utility's or consumer-owned utility's lifetime energy savings and cumulative lifetime
energy savings reported in plans submitted under this section and section 216B.2403.
new text end

new text begin (b) new text end The commissioner shall establish an inventory of the most effective energy
conservation programs, techniques, and technologies, and encourage all Minnesota utilities
to implement them, where appropriate deleted text begin , in their service territories deleted text end . The commissioner shall
describe these programs in sufficient detail to provide a utility reasonable guidance
concerning implementation. The commissioner shall prioritize the opportunities in order of
potential energy savings and in order of cost-effectiveness.

new text begin (c) new text end The commissioner may contract with a third party to carry out any of the
commissioner's duties under this subdivision, and to obtain technical assistance to evaluate
the effectiveness of any conservation improvement program.

new text begin (d) new text end The commissioner may assess up to $850,000 annually for the purposes of this
subdivision. The assessments must be deposited in the state treasury and credited to the
energy and conservation account created under subdivision 2a. An assessment made under
this subdivision is not subject to the cap on assessments provided by section 216B.62, or
any other law.

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

new text begin (e) The commissioner must work with stakeholders to develop technical guidelines that
public utilities and consumer-owned utilities must use to:
new text end

new text begin (1) determine whether deployment of a fuel-switching improvement meets the criteria
established in subdivision 11, paragraph (e), or section 216B.2403, subdivision 8, as
applicable; and
new text end

new text begin (2) calculate the amount of energy saved by deploying a fuel-switching improvement.
new text end

new text begin The guidelines under this paragraph must be issued by the commissioner by order no later
than March 15, 2022, and must be updated as the commissioner determines is necessary.
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.

Minnesota Statutes 2020, section 216B.241, subdivision 1f, is amended to read:

Subd. 1f.

Facilities energy efficiency.

(a) The commissioner of administration and the
commissioner of commerce shall maintain and, as needed, revise the sustainable building
design guidelines developed under section 16B.325.

(b) The commissioner of administration and the commissioner of commerce shall maintain
and update the benchmarking tool developed under Laws 2001, chapter 212, article 1, section
3, so that all public buildings can use the benchmarking tool to maintain energy use
information for the purposes of establishing energy efficiency benchmarks, tracking building
performance, and measuring the results of energy efficiency and conservation improvements.

(c) The commissioner shall require that utilities include in their conservation improvement
plans programs that facilitate professional engineering verification to qualify a building as
Energy Star-labeled, Leadership in Energy and Environmental Design (LEED) certified, or
Green Globes-certified. deleted text begin The state goal is to achieve certification of 1,000 commercial
buildings as Energy Star-labeled, and 100 commercial buildings as LEED-certified or Green
Globes-certified by December 31, 2010.
deleted text end

(d) The commissioner may assess up to $500,000 annually for the purposes of this
subdivision. The assessments must be deposited in the state treasury and credited to the
energy and conservation account created under subdivision 2a. An assessment made under
this subdivision is not subject to the cap on assessments provided by section 216B.62, or
any other law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2020, section 216B.241, subdivision 1g, is amended to read:

Subd. 1g.

Manner of filing and service.

(a) A public utility deleted text begin , generation and transmission
cooperative electric association, municipal power agency, cooperative electric association,
and municipal utility deleted text end shall submit filings to the department via the department's electronic
filing system. The commissioner may approve an exemption from this requirement in the
event deleted text begin an affected deleted text end new text begin a public new text end utility deleted text begin or association deleted text end is unable to submit filings via the department's
electronic filing system. All other interested parties shall submit filings to the department
via the department's electronic filing system whenever practicable but may also file by
personal delivery or by mail.

(b) Submission of a document to the department's electronic filing system constitutes
service on the department. Where department rule requires service of a notice, order, or
other document by the department, new text begin public new text end utility, deleted text begin association, deleted text end or interested party upon
persons on a service list maintained by the department, service may be made by personal
delivery, mail, or electronic service, except that electronic service may only be made upon
persons on the service list who have previously agreed in writing to accept electronic service
at an electronic address provided to the department for electronic service 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. 12.

Minnesota Statutes 2020, section 216B.241, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Programs deleted text end new text begin Public utility; energy conservation and optimization plans new text end .

(a)
The commissioner may require new text begin a new text end public deleted text begin utilities deleted text end new text begin utility new text end 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. deleted text begin The required
programs must cover no more than a three-year period.
deleted text end

new text begin (b) A new text end public deleted text begin utilities deleted text end new text begin utility new text end shall file new text begin an energy new text end conservation deleted text begin improvement plans deleted text end new text begin and
optimization plan new text end by June 1, on a schedule determined by order of the commissioner, but
at least every three years. deleted text begin Plans received deleted text end new text begin 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 new text end by a public
utility by June 1 must be approved or approved as modified by the commissioner by
December 1 of that same year.

new text begin (c) new text end The commissioner shall evaluate the deleted text begin program deleted text end new text begin plan new text end 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 deleted text begin , deleted text end by consumers participating in deleted text begin the deleted text end new text begin an energy conservation new text end
program deleted text begin , deleted text end 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.

deleted text begin (b) deleted text end new text begin (d) new text end 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.
deleted text begin The commissioner shall nevertheless ensure that every public utility operate one or more
programs under periodic review by the department.
deleted text end

deleted text begin (c) deleted text end new text begin (e) new text end Each public utility subject to new text begin this new text end subdivision deleted text begin 1a deleted text end may spend and invest annually
up to ten percent of the total amount deleted text begin required to be deleted text end spent and invested on energy conservation
improvements under this section by the new text begin public new text end utility on research and development projects
that meet the definition of energy conservation improvement deleted text begin in subdivision 1 and that are
funded directly by the public utility deleted text end .

deleted text begin (d) A public utility may not spend for or invest in energy conservation improvements
that directly benefit a large energy facility or a large electric customer facility for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b).
deleted text end

new text begin (f) new text end The commissioner shall consider and may require a new text begin public new text end utility to undertake deleted text begin a deleted text end new text begin an
energy conservation new text end program suggested by an outside source, including a political
subdivision, a nonprofit corporation, or community organization.

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

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

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

new text begin (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.
new text end

new text begin (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.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2020, section 216B.241, subdivision 2b, is amended to read:

Subd. 2b.

Recovery of expenses.

new text begin (a) new text end The commission shall allow a new text begin public new text end utility to
recover expenses resulting from deleted text begin a deleted text end new text begin an energy new text end conservation deleted text begin improvement program required deleted text end new text begin
and optimization plan approved new text end by the department new text begin under this section new text end and contributions and
assessments to the energy and conservation account, unless the recovery would be
inconsistent with a financial incentive proposal approved by the commission. deleted text begin The commission
shall allow a cooperative electric association subject to rate regulation under section
216B.026, to recover expenses resulting from energy conservation improvement programs,
load management programs, and assessments and contributions to the energy and
conservation account unless the recovery would be inconsistent with a financial incentive
proposal approved by the commission. In addition,
deleted text end

new text begin (b) new text end A new text begin public new text end utility may file annually, or the Public Utilities Commission may require
the new text begin public new text end utility to file, and the commission may approve deleted text begin , deleted text end rate schedules containing
provisions for the automatic adjustment of charges for utility service in direct relation to
changes in the expenses of the new text begin public new text end utility for real and personal property taxes, fees, and
permits, the amounts of which the new text begin public new text end utility cannot control. A public utility is eligible
to file for adjustment for real and personal property taxes, fees, and permits under this
subdivision only if, in the year previous to the year in which it files for adjustment, it has
spent or invested at least 1.75 percent of its gross revenues from provision of electric service,
excluding gross operating revenues from electric service provided in the state to large electric
customer facilities for which the commissioner has issued an exemption under subdivision
1a, paragraph (b), and 0.6 percent of its gross revenues from provision of gas service,
excluding gross operating revenues from gas services provided in the state to large electric
customer facilities for which the commissioner has issued an exemption under subdivision
1a, paragraph (b), for that year for energy conservation improvements under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2020, section 216B.241, subdivision 3, is amended to read:

Subd. 3.

Ownership of new text begin preweatherization measure or new text end energy conservation
improvement.

deleted text begin An deleted text end new text begin (a) A preweatherization measure or new text end energy conservation improvement
made to or installed in a building in accordance with this section, except systems owned by
deleted text begin the deleted text end new text begin a public new text end utility and designed to turn off, limit, or vary the delivery of energy, are the
exclusive property of the owner of the building except to the extent that the improvement
is subjected to a security interest in favor of the new text begin public new text end utility in case of a loan to the building
owner. deleted text begin The
deleted text end

new text begin (b) A public new text end utility has no liability for loss, damage new text begin , new text end or injury caused directly or indirectly
by deleted text begin an deleted text end new text begin a preweatherization measure or new text end energy conservation improvement except for negligence
by the utility in deleted text begin purchase, installation, or modification of the product. deleted text end new text begin purchasing, installing,
or modifying a preweatherization measure or energy conservation improvement.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2020, section 216B.241, subdivision 5, is amended to read:

Subd. 5.

Efficient lighting program.

(a) Each public utility deleted text begin , cooperative electric
association, and municipal deleted text end new text begin and consumer-owned new text end utility that provides electric service to
retail customers and is subject to subdivision 1c new text begin or section 216B.2403 new text end shall include as part
of its conservation improvement activities a program to strongly encourage the use of LED
lamps. The program must include at least a public information campaign to encourage use
of LED lamps and proper management of spent lamps by all customer classifications.

(b) A public utility that provides electric service at retail to 200,000 or more customers
shall establish, either directly or through contracts with other persons, including lamp
manufacturers, distributors, wholesalers, and retailers and local government units, a system
to collect for delivery to a reclamation or recycling facility spent fluorescent and
high-intensity discharge lamps from households and from small businesses as defined in
section 645.445 that generate an average of fewer than ten spent lamps per year.

(c) A collection system must include establishing reasonably convenient locations for
collecting spent lamps from households and financial incentives sufficient to encourage
spent lamp generators to take the lamps to the collection locations. Financial incentives may
include coupons for purchase of new LED lamps, a cash back system, or any other financial
incentive or group of incentives designed to collect the maximum number of spent lamps
from households and small businesses that is reasonably feasible.

(d) A public utility that provides electric service at retail to fewer than 200,000 customers,
deleted text begin a cooperative electric association, or a municipal deleted text end new text begin or a consumer-owned new text end utility that provides
electric service at retail to customers may establish a collection system under paragraphs
(b) and (c) as part of conservation improvement activities required under this section.

(e) The commissioner of the Pollution Control Agency may not, unless clearly required
by federal law, require a public utility deleted text begin , cooperative electric association, or municipality deleted text end new text begin or
consumer-owned utility new text end that establishes a household fluorescent and high-intensity discharge
lamp collection system under this section to manage the lamps as hazardous waste as long
as the lamps are managed to avoid breakage and are delivered to a recycling or reclamation
facility that removes mercury and other toxic materials contained in the lamps prior to
placement of the lamps in solid waste.

(f) If a public utility deleted text begin , cooperative electric association, or municipal deleted text end new text begin or consumer-owned new text end
utility contracts with a local government unit to provide a collection system under this
subdivision, the contract must provide for payment to the local government unit of all the
unit's incremental costs of collecting and managing spent lamps.

(g) All the costs incurred by a public utility deleted text begin , cooperative electric association, or municipal deleted text end new text begin
or consumer-owned new text end utility to promote the use of LED lamps and to deleted text begin collect fluorescent and
high-intensity discharge deleted text end new text begin collect LED new text end lamps under this subdivision are conservation
improvement spending under this section.

(h) For the purposes of this subdivision, "LED lamp" means a light-emitting diode deleted text begin lamp
that consists of a solid state device that emits visible light when an electric current passes
through a semiconductor deleted text end new text begin bulb or lighting product 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. 16.

Minnesota Statutes 2020, section 216B.241, subdivision 7, is amended to read:

Subd. 7.

Low-income programs.

(a) The commissioner shall ensure that each new text begin public
new text end utility deleted text begin and association deleted text end subject to subdivision 1c provides deleted text begin low-income deleted text end new text begin energy conservation new text end
programs new text begin to low-income households new text end . When approving spending and energy-savings goals
for low-income programs, the commissioner shall consider historic spending and participation
levels, energy savings deleted text begin for deleted text end new text begin achieved by new text end low-income programs, and the number of low-income
persons residing in the utility's service territory. A deleted text begin municipal utility that furnishes gas service
must spend at least 0.2 percent, and a deleted text end public utility furnishing gas service must spend at
least deleted text begin 0.4 deleted text end new text begin 0.8 new text end percent deleted text begin , deleted text end of its most recent three-year average gross operating revenue from
residential customers in the state on low-income programs. A new text begin public new text end utility deleted text begin or association deleted text end
that furnishes electric service must spend at least deleted text begin 0.1 deleted text end new text begin 0.4 new text end percent of its gross operating
revenue from residential customers in the state on low-income programs. deleted text begin For a generation
and transmission cooperative association, this requirement shall apply to each association's
members' aggregate gross operating revenue from sale of electricity to residential customers
in the state. Beginning in 2010, a utility or association that furnishes electric service must
spend 0.2 percent of its gross operating revenue from residential customers in the state on
low-income programs.
deleted text end

(b) To meet the requirements of paragraph (a), a new text begin public new text end utility deleted text begin or association deleted text end may
contribute money to the energy and conservation account new text begin established under subdivision 2a new text end .
An energy conservation improvement plan must state the amount, if any, of low-income
energy conservation improvement funds the new text begin public new text end utility deleted text begin or association deleted text end will contribute to
the energy and conservation account. Contributions must be remitted to the commissioner
by February 1 of each year.

(c) The commissioner shall establish low-income new text begin energy conservation new text end programs to utilize
deleted text begin money contributed deleted text end new text begin contributions made new text end to the energy and conservation account under
paragraph (b). In establishing low-income programs, the commissioner shall consult political
subdivisions, utilities, and nonprofit and community organizations, especially organizations
deleted text begin engaged in deleted text end providing energy and weatherization assistance to low-income deleted text begin persons deleted text end new text begin
households new text end . deleted text begin Money contributed deleted text end new text begin Contributions made new text end to the energy and conservation account
under paragraph (b) must provide programs for low-income deleted text begin persons deleted text end new text begin households new text end , including
low-income renters, in the service territory of the new text begin public new text end utility deleted text begin or association deleted text end providing the
money. The commissioner shall record and report expenditures and energy savings achieved
as a result of low-income programs funded through the energy and conservation account in
the report required under subdivision 1c, paragraph deleted text begin (g) deleted text end new text begin (f) new text end . The commissioner may contract
with a political subdivision, nonprofit or community organization, public utility, deleted text begin municipality, deleted text end
or deleted text begin cooperative electric association deleted text end new text begin consumer-owned utility new text end to implement low-income
programs funded through the energy and conservation account.

(d) A new text begin public new text end utility deleted text begin or association deleted text end may petition the commissioner to modify its required
spending under paragraph (a) if the utility deleted text begin or association deleted text end and the commissioner have been
unable to expend the amount required under paragraph (a) for three consecutive years.

new text begin (e) The commissioner must develop and establish guidelines to determine the eligibility
of multifamily buildings to participate in low-income energy conservation programs.
Notwithstanding the definition of low-income household in section 216B.2402, for purposes
of determining the eligibility of multifamily buildings for low-income programs a public
utility may apply the most recent guidelines published by the department. The commissioner
must convene a stakeholder group to review and update guidelines by July 1, 2022, and at
least once every five years thereafter. The stakeholder group must include but is not limited
to representatives of public utilities as defined in section 216B.02, subdivision 4; municipal
electric or gas utilities; electric cooperative associations; multifamily housing owners and
developers; and low-income advocates.
new text end

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

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

new text begin (h) A Healthy AIR (Asbestos Insulation Removal) account is established as a separate
account in the special revenue fund in the state treasury. A public utility may elect to
contribute money to the Healthy AIR account to provide preweatherization measures to
households eligible for weatherization assistance under section 216C.264. Remediation
activities must be executed in conjunction with federal weatherization assistance program
services. Money contributed to the account counts toward: (1) the minimum low-income
spending requirement in 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 end

deleted text begin (e) deleted text end new text begin (i) new text end The costs and benefits associated with any approved low-income gas or electric
conservation improvement program that is not cost-effective when considering the costs
and benefits to the new text begin public new text end utility may, at the discretion of the utility, be excluded from the
calculation of net economic benefits for purposes of calculating the financial incentive to
the new text begin public new text end utility. The energy and demand savings may, at the discretion of the new text begin public new text end utility,
be applied toward the calculation of overall portfolio energy and demand savings for purposes
of determining progress toward annual goals and in the financial incentive mechanism.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2020, section 216B.241, subdivision 8, is amended to read:

Subd. 8.

Assessment.

The commission or department may assess new text begin public new text end utilities subject
to this section deleted text begin in proportion to their respective deleted text end new text begin to carry out the purposes of subdivisions 1d,
1e, and 1f. An assessment under this subdivision must be proportionate to a public utility's new text end
gross operating revenue from sales of gas or electric service within deleted text begin the state deleted text end new text begin Minnesota new text end
during the last calendar year deleted text begin to carry out the purposes of subdivisions 1d, 1e, and 1f. Those
assessments deleted text end new text begin , as applicable. Assessments made under this subdivision new text end are not subject to the
cap on assessments provided by section 216B.62, or any other law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Programs for efficient fuel-switching improvements; electric utilities. new text end

new text begin (a)
A public utility providing electric service at retail may include in the plan required under
subdivision 2 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.
new text end

new text begin (b) The department may approve proposed programs for efficient fuel-switching
improvements if the department determines the improvements meet the requirements of
paragraph (d). 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.
new text end

new text begin (c) A public utility may file a rate schedule with the commission that provides for annual
cost recovery of reasonable and prudent costs incurred to implement and promote efficient
fuel-switching programs. The commission may not approve a financial incentive to encourage
efficient fuel-switching programs operated by a public utility providing electric service.
new text end

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

new text begin (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 end

new text begin (2) results in a net reduction of statewide greenhouse gas emissions as defined in section
216H.01, subdivision 2, over the lifetime of the improvement. For an efficient fuel-switching
improvement installed by an electric utility, the reduction in emissions must be measured
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;
new text end

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

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

new text begin (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.
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. 19.

Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Programs for efficient fuel-switching improvements; natural gas
utilities. new text end

new text begin (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 as an energy
conservation improvement one or more programs to install electric technologies that reduce
the consumption of natural gas by the utility's retail customers. The commissioner may
approve a proposed program if the commissioner, applying the technical criteria developed
under section 216B.241, subdivision 1d, paragraph (b), determines:
new text end

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

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

new text begin (b) If a program is approved by the commission under this subdivision, the public utility
may count the program's energy savings toward the public utility's 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.
new text end

new text begin (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 incurred to implement and promote the programs.
new text end

new text begin (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 determines have been achieved by a program approved under this
subdivision, provided the commission determines that the financial incentive mechanism
is in the ratepayers' interest.
new text end

new 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.
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.

Minnesota Statutes 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Cost-effective load management programs. new text end

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

new text begin (b) The commissioner may approve a proposed program if the commissioner determines
the program is cost-effective, considering the costs and benefits to ratepayers, the utility,
participants, and society.
new text end

new text begin (c) A public utility providing retail service to Minnesota customers may file rate schedules
with the commission that provide for annual cost recovery of reasonable and prudent costs
incurred to implement and promote cost-effective load management programs approved by
the department under this subdivision.
new text end

new text begin (d) In determining whether to approve, modify, or reject a proposal made by the
department or a public utility for an incentive plan to encourage investments in load
management programs, the commission shall consider whether the plan:
new text end

new text begin (1) is needed to increase the public utility's investment in cost-effective load management;
new text end

new text begin (2) is compatible with the interest of the public utility's ratepayers; and
new text end

new text begin (3) links the incentive to the public utility's performance in achieving cost-effective load
management.
new text end

new text begin (e) The commission may structure an incentive plan to encourage cost-effective load
management programs as an asset on which a public utility earns a rate of return at a level
the commission determines is reasonable and in the public interest.
new text end

new text begin (f) The commission may include the net benefits from a load management activity
integrated with an energy efficiency program approved under this section in the net benefits
of the energy efficiency program for purposes of a financial incentive program under section
216B.16, subdivision 6c, if the department determines the primary purpose of the load
management activity is energy efficiency.
new text end

new text begin (g) A public utility is not eligible for a financial incentive for a load management program
in any year in which the utility achieves energy savings below one percent of gross annual
retail energy sales, excluding savings achieved through load management programs.
new text end

new text begin (h) The commission may include net benefits from a particular load management activity
in an incentive plan under this subdivision or section 216B.16, subdivision 6c, but not both.
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 2020, section 216B.241, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Minnesota efficient technology accelerator. new text end

new text begin (a) A nonprofit organization
with extensive experience implementing energy efficiency programs and conducting
energy-efficient technology research in Minnesota may file a proposal with the commissioner
for a program to accelerate deployment and reduce the cost of emerging and innovative
efficient technologies and approaches and result in lower energy costs for Minnesota
ratepayers. The program must include strategic initiatives with technology manufacturers
to improve the efficiency and performance of products, and with equipment installers and
other key actors in the technology supply chain. The program's goals are to achieve
cost-effective energy savings for Minnesota utilities, provide bill savings to Minnesota
utility consumers, enhance employment opportunities in Minnesota, and avoid greenhouse
gas emissions.
new text end

new text begin (b) Prior to developing and filing a proposal, the nonprofit must submit to the
commissioner a notice of intent to file a proposal under this subdivision that describes the
nonprofit's eligibility with respect to the requirements of paragraph (a). The commissioner
shall review the notice of intent and issue a determination of eligibility within 30 days of
the date the notice of intent is filed.
new text end

new text begin (c) Upon receiving approval from the commissioner to file a proposal under this section,
a nonprofit organization must engage interested stakeholders in discussions regarding, at a
minimum, the following elements required of a program proposal under this subdivision:
new text end

new text begin (1) a proposed budget and operational guidelines for the accelerator;
new text end

new text begin (2) proposed methodologies to estimate, evaluate, and allocate energy savings and net
benefits from program activities. Energy savings and net benefits from program activities
must be allocated to participating utilities and must be considered when determining the
cost-effectiveness of energy savings achieved by the program and related incentives;
new text end

new text begin (3) a process to identify and select technologies that:
new text end

new text begin (i) address energy use in residential, commercial, and industrial buildings; and
new text end

new text begin (ii) benefit utility customers in proportion to the funds contributed to the program by
electric and natural gas utilities, respectively; and
new text end

new text begin (4) a process to identify and track performance metrics for each technology selected so
that progress toward achieving energy savings can be measured, including one or more
methods to evaluate cost-effectiveness.
new text end

new text begin (d) No earlier than 180 days from the date of the commissioner's eligibility determination
under paragraph (b), the nonprofit may file a program proposal under this subdivision. The
filing must address each of the elements listed in paragraph (c), clauses (1) to (4), and the
recommendations and concerns identified in the stakeholder engagement process required
under paragraph (c). Within 90 days of the filing of the proposal, after notice and comment,
and after the commissioner has considered the estimated program costs and benefits from
the perspectives of ratepayers, utilities, and society, the commissioner shall approve, modify,
or reject the proposal. An approved program may have a term extending up to five years,
and may be renewed by the commissioner one or more times for additional terms of up to
five years.
new text end

new text begin (e) Upon approval of a program under paragraph (d), each public utility with over 30,000
customers must participate in the program and contribute to the approved program budget
in proportion to the public utility's gross operating revenue from sales of gas or electric
service in Minnesota, excluding revenues from large customer facilities exempted under
subdivision 1a. A participating utility is not required to contribute more than the following
percentages of the utility's spending approved by the commission in the plan filed under
subdivision 2: (1) two percent in the program's initial two years; (2) 3.5 percent in the
program's third and fourth years; and (3) five percent each year thereafter. Other utilities
may elect to participate in an approved program.
new text end

new text begin (f) A participating utility may request the commissioner to adjust its approved annual
budget under subdivision 2, if necessary to meet approved energy savings goals under
subdivision 2. Other utilities may elect to participate in the accelerator program.
new text end

new text begin (g) Costs incurred by a public utility under this subdivision are recoverable under
subdivision 2b as an assessment to the energy and conservation account. Amounts provided
to the account under this subdivision are not subject to the cap on assessments in section
216B.62. The commissioner may make expenditures from the account for the purposes of
this subdivision, including amounts necessary to reimburse administrative costs incurred
by the department under this subdivision. Costs for research projects under this subdivision
that the commissioner determines may be duplicative to projects that would be eligible for
funding under subdivision 1e, paragraph (a), may be deducted from the assessment under
subdivision 1e for utilities participating in the accelerator.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective immediately upon enactment.
new text end

Sec. 22.

Minnesota Statutes 2020, section 216B.2412, subdivision 3, is amended to read:

Subd. 3.

Pilot programs.

The commission shall allow one or more rate-regulated utilities
to participate in a pilot program to assess the merits of a rate-decoupling strategy to promote
energy efficiency and conservation. Each pilot program must utilize the criteria and standards
established in subdivision 2 and be designed to determine whether a rate-decoupling strategy
achieves energy savings. On or before a date established by the commission, the commission
shall require electric and gas utilities that intend to implement a decoupling program to file
a decoupling pilot plan, which shall be approved or approved as modified by the commission.
A pilot program may not exceed three years in length. Any extension beyond three years
can only be approved in a general rate case, unless that decoupling program was previously
approved as part of a general rate case. deleted text begin The commission shall report on the programs annually
to the chairs of the house of representatives and senate committees with primary jurisdiction
over energy policy.
deleted 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. 23.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Energy storage systems; installation. new text end

new text begin The commission shall, as part of an
order with respect to a public utility's integrated resource plan filed under this section,
require a public utility to install one or more energy storage systems, provided that the
commission finds the investments are reasonable, prudent, and in the public interest. In
determining the aggregate capacity of the energy storage systems ordered under this
subdivision, the commission must consider the public utility's assessment of energy storage
systems contained in the public utility's integrated resource plan, as required under
subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any order issued to a public utility by the commission in an integrated resource
plan proceeding after July 1, 2021.
new text end

Sec. 24.

new text begin [216B.2427] ENERGY STORAGE SYSTEM; APPLICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "energy storage system" has
the meaning given in section 216B.2422, subdivision 1, paragraph (f).
new text end

new text begin Subd. 2. new text end

new text begin Application requirement. new text end

new text begin No later than one year following the commission's
order to a public utility in an integrated resource plan proceeding under section 216B.2422,
the public utility must submit an application to the commission for review and approval to
install one or more energy storage systems whose aggregate capacity meets or exceeds that
ordered by the commission in the public utility's most recent integrated resource plan
proceeding under section 216B.2422, subdivision 7a.
new text end

new text begin Subd. 3. new text end

new text begin Application contents. new text end

new text begin (a) Each application submitted under this section shall
contain the following information:
new text end

new text begin (1) technical specifications of the energy storage system, including but not limited to:
new text end

new text begin (i) the maximum amount of electric output that the energy storage system can provide;
new text end

new text begin (ii) the length of time the energy storage system can sustain maximum output;
new text end

new text begin (iii) the location of the project and a description of the analysis conducted to determine
the location;
new text end

new text begin (iv) a description of the public utility's electric system needs that the proposed energy
storage system address;
new text end

new text begin (v) a description of the types of services the energy storage system is expected to provide;
and
new text end

new text begin (vi) a description of the technology required to construct, operate, and maintain the
energy storage system, including any data or communication system necessary to operate
the energy storage system;
new text end

new text begin (2) the estimated cost of the project, including:
new text end

new text begin (i) capital costs;
new text end

new text begin (ii) the estimated cost per unit of energy delivered by the energy storage system; and
new text end

new text begin (iii) an evaluation of the cost-effectiveness of the energy storage system;
new text end

new text begin (3) the estimated benefits of the energy storage system to the public utility's electric
system, including but not limited to:
new text end

new text begin (i) deferred investments in generation, transmission, or distribution capacity;
new text end

new text begin (ii) reduced need for electricity during times of peak demand;
new text end

new text begin (iii) improved reliability of the public utility's transmission or distribution system; and
new text end

new text begin (iv) improved integration of the public utility's renewable energy resources;
new text end

new text begin (4) how the addition of an energy storage system complements proposed actions of the
public utility described in the most recent integrated resource plan submitted under section
216B.2422 to meet expected demand with the least cost combination of resources; and
new text end

new text begin (5) any additional information required by the commission.
new text end

new text begin (b) A public utility must include in the application an evaluation of the potential to store
energy in the public utility's electric system and must identify geographic areas in the public
utility's service area where the deployment of energy storage systems has the greatest
potential to achieve the economic benefits identified in paragraph (a), clause (3).
new text end

new text begin Subd. 4. new text end

new text begin Commission review. new text end

new text begin The commission shall review each proposal submitted
under this section and may approve, reject, or modify the proposal. The commission shall
approve a proposal the commission determines is in the public interest and reasonably
balances the value derived from the deployment of an energy storage system for ratepayers
and the public utility's operations with the costs of procuring, constructing, operating, and
maintaining the energy storage system.
new text end

new text begin Subd. 5. new text end

new text begin Cost recovery. new text end

new text begin A public utility may recover from ratepayers all costs prudently
incurred by the public utility to deploy an energy storage system approved by the commission
under this section, net of any revenues generated by the operation of the energy storage
system.
new text end

new text begin Subd. 6. new text end

new text begin Commission authority; orders. new text end

new text begin The commission may issue orders necessary
to implement and administer 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. 25.

Minnesota Statutes 2020, section 216C.05, subdivision 2, is amended to read:

Subd. 2.

Energy policy goals.

It is the energy policy of the state of Minnesota that:

(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of
electricity and natural gas deleted text begin be deleted text end new text begin is new text end achieved through cost-effective energy efficiency;

(2) the per capita use of fossil fuel as an energy input deleted text begin be deleted text end new text begin is new text end reduced by 15 percent by the
year 2015, through increased reliance on energy efficiency and renewable energy alternatives;

(3) 25 percent of the total energy used in deleted text begin the state be deleted text end new text begin Minnesota is new text end derived from renewable
energy resources by the year 2025; deleted text begin and
deleted text end

new text begin (4) statewide greenhouse gas emissions from energy use in existing commercial and
residential buildings is reduced by 50 percent by 2035 through: (i) continued use of the
most effective current energy-saving incentives programs, evaluated by participation and
efficacy; and (ii) development and implementation of new programs, prioritizing solutions
that achieve the highest overall carbon reduction; and
new text end

deleted text begin (4) deleted text end new text begin (5) new text end retail electricity rates for each customer class deleted text begin be deleted text end new text begin are new text end at least five percent below
the national average.

Sec. 26.

new text begin [216C.402] REBUILD RIGHT GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Cold climate air-source heat pump" means a mechanism that heats and cools indoor
air by transferring heat from outdoor or indoor air using a fan, a refrigerant-filled heat
exchanger, and an inverter-driven compressor that varies the pressure of the refrigerant to
warm or cool the refrigerant vapor.
new text end

new text begin (c) "Commercial building" means a building:
new text end

new text begin (1) with an occupant that is (i) engaged in wholesale or retail trade or the provision of
services, or (ii) a restaurant; or
new text end

new text begin (2) that contains four or more dwelling units.
new text end

new text begin (d) "Energy conservation" has the meaning given in section 216B.241, subdivision 1,
paragraph (e).
new text end

new text begin (e) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f).
new text end

new text begin (f) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f).
new text end

new text begin (g) "Envelope" means the physical elements separating a building's interior and exterior.
new text end

new text begin (h) "Grantee" means a person awarded a grant by the commissioner under this section.
new text end

new text begin (i) "Ground-source heat pump" means an earth-coupled heating or cooling device
consisting of a sealed closed-loop piping system installed in the ground to transfer heat
between the surrounding earth and a building.
new text end

new text begin (j) "Institutional building" means a building with occupants that provide health care,
educational, or government services.
new text end

new text begin (k) "Preweatherization measure" means a general repair or measure that affects the health
or safety of residents of a dwelling unit and that is required under federal law in order for
weatherization services to be provided to the dwelling unit.
new text end

new text begin (l) "Qualified energy technology" means:
new text end

new text begin (1) a solar energy system;
new text end

new text begin (2) a measure installed in a building that results in energy efficiency or energy
conservation, excluding a natural gas furnace that does not function solely as a backup to
a primary heating system utilizing a ground-source heat pump or a cold climate air-source
heat pump; or
new text end

new text begin (3) an energy storage system.
new text end

new text begin (m) "Residential building" means a building containing one to three residential units.
new text end

new text begin (n) "Solar energy system" has the meaning given in section 216C.06, subdivision 17.
new text end

new text begin Subd. 2. new text end

new text begin Program establishment. new text end

new text begin A rebuild right grant program is established in the
Department of Commerce to award grants to incorporate qualified energy technologies as
part of the renovation or new construction of buildings damaged or destroyed by civil unrest
in May and June 2020.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) An application for a grant under this section must be made to
the commissioner on a form developed by the commissioner. The application must include:
new text end

new text begin (1) evidence substantiating the applicant's experience required under subdivision 4,
paragraph (b);
new text end

new text begin (2) information detailing how property owners are notified that financial assistance is
available;
new text end

new text begin (3) the geographic area within which an applicant proposes to target financial assistance;
new text end

new text begin (4) information detailing (i) how the applicant determines whether a proposed project
meets the applicable energy standards required under subdivision 5, and (ii) what
post-implementation methods are used to assess whether the standards have been met;
new text end

new text begin (5) information detailing how the applicant evaluates and ranks project proposals; and
new text end

new text begin (6) any other information required by the commissioner.
new text end

new text begin (b) The commissioner must develop administrative procedures and processes to review
applications and award grants under this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

new text begin (a) Multiple organizations, including political subdivisions
and nonprofit organizations, may jointly file a single application for a grant award under
this section.
new text end

new text begin (b) Applicants for a grant awarded under this section must have experience:
new text end

new text begin (1) analyzing the energy and economic impacts of installing qualified energy technologies
in buildings;
new text end

new text begin (2) working with contractors to implement projects that install qualified energy
technologies in buildings; and
new text end

new text begin (3) successfully working with small businesses, community groups, and residents of
neighborhoods where a preponderance of the total number of households are low-income
households.
new text end

new text begin Subd. 5. new text end

new text begin Eligible activities; energy standards. new text end

new text begin (a) Except as provided in paragraph (b),
a renovated or newly constructed commercial or institutional building awarded grant funds
under this section must meet, at a minimum, the current Sustainable Building 2030 energy
performance standards adopted under section 216B.241, subdivision 9.
new text end

new text begin (b) A renovated or newly constructed residential building or a commercial building
containing four or more dwelling units awarded grant funds under this section must meet,
at a minimum, the current energy performance standards for new residential construction
or renovations, as applicable, contained in the International Passive House Standard promoted
by the North American Passive House Network or the United States Department of Energy's
Zero Energy Ready Home.
new text end

new text begin Subd. 6. new text end

new text begin Eligible properties. new text end

new text begin A property is eligible to receive a grant awarded under
this section if the property: (1) was damaged or destroyed by civil unrest that occurred in
the state in May and June 2020; and (2) is being renovated or constructed to operate as a
residential, commercial, or institutional property.
new text end

new text begin Subd. 7. new text end

new text begin Eligible expenditures. new text end

new text begin An appropriation made to support activities under this
section may be used to:
new text end

new text begin (1) conduct outreach activities to:
new text end

new text begin (i) cities and business associations affected by the civil unrest that occurred in Minnesota
in May and June 2020;
new text end

new text begin (ii) persons listed in subdivision 8, clause (1), items (i) to (iv); and
new text end

new text begin (iii) potential building owners who may receive services under the program;
new text end

new text begin (2) purchase and install qualified energy technologies in buildings;
new text end

new text begin (3) pay the reasonable costs incurred by the department to administer this section; and
new text end

new text begin (4) compensate task force members under subdivision 12.
new text end

new text begin Subd. 8. new text end

new text begin Grant priorities. new text end

new text begin When awarding grants under this section, the commissioner
must give priority to applications that:
new text end

new text begin (1) commit to conduct aggressive outreach programs to provide assistance under this
section to eligible owners of buildings:
new text end

new text begin (i) located in census tracts in which 50 percent or more of households have household
incomes at or below 60 percent of the state median household income;
new text end

new text begin (ii) located in census tracts designated by the governor as Opportunity Zones under
United States Code, title 26, section 1400Z-1, et. seq.;
new text end

new text begin (iii) containing minority-owned businesses, as defined in section 116J.8737; or
new text end

new text begin (iv) containing women-owned businesses, as defined in section 116J.8737;
new text end

new text begin (2) commit to employ contractors that pay employees a wage comparable to, as
determined by the commissioner, the prevailing wage rate, as defined in section 177.42; or
new text end

new text begin (3) leverage additional funding to be used for the purposes of this section.
new text end

new text begin Subd. 9. new text end

new text begin Limits. new text end

new text begin Grant funds awarded under this section to support the renovation or
construction of building envelopes and energy systems in commercial or institutional
buildings may be used to pay the difference between (1) the cost to renovate or construct a
building's envelope or energy system to meet the current applicable energy code, and (2)
the cost to meet the standards required under subdivision 5. The commissioner must develop
a methodology to calculate the cost to renovate or construct a commercial or institutional
building's envelope and energy system to meet current applicable energy code standards,
which must be used by a grantee to determine the amount awarded to a building owner.
new text end

new text begin Subd. 10. new text end

new text begin Awards to building owners. new text end

new text begin A commercial or institutional building owner
seeking funding from a grant awarded under this section must submit an application to the
grantee that includes:
new text end

new text begin (1) evidence that the building is eligible to receive a grant under this section, including
documentation of damage done to the building;
new text end

new text begin (2) a description of the project, including cost estimates for major project elements;
new text end

new text begin (3) documentation that the measures funded result in the building meeting the applicable
energy standards of subdivision 5; and
new text end

new text begin (4) any other information required by a grantee.
new text end

new text begin Subd. 11. new text end

new text begin Grantee reports. new text end

new text begin Recipients of a grant awarded under this section must file
semiannual reports with the commissioner containing:
new text end

new text begin (1) a list of properties where grant funds have been expended, the amount of the
expenditures, and the nature of the energy efficiency measures and renewable energy systems
installed;
new text end

new text begin (2) estimated energy savings and greenhouse gas emissions reductions resulting from
expenditures made under this section compared with estimated levels of energy use and
greenhouse gas emissions associated with those properties in 2019; and
new text end

new text begin (3) any other information required by the commissioner.
new text end

new text begin Subd. 12. new text end

new text begin Advisory task force. new text end

new text begin (a) Within 60 days of the effective date of this act, the
commissioner must select and appoint eight members to a Rebuild Right Advisory Task
Force and must convene the initial meeting of the task force. The advisory task force must
include:
new text end

new text begin (1) one representative of the public utility subject to section 116C.779, subdivision 1;
new text end

new text begin (2) one representative of the Prairie Island Indian Community;
new text end

new text begin (3) one representative of organized labor;
new text end

new text begin (4) two representatives of organizations with expertise installing energy conservation
measures and renewable energy programs in buildings;
new text end

new text begin (5) one representative of organizations that advocate for energy policies addressing
low-income households; and
new text end

new text begin (6) two representatives of organizations representing businesses located in areas that
experienced extensive property damage from civil unrest in Minnesota in May and June
2020.
new text end

new text begin (b) Within 60 days of the effective date of this act, the state senators and state
representatives representing Minneapolis neighborhoods that suffered extensive property
damage from civil unrest in May and June 2020 must jointly appoint as task force members
two residents who live in the neighborhoods where the property damage occurred.
new text end

new text begin (c) Within 60 days of the effective date of this act, the state senators and state
representatives representing St. Paul neighborhoods that suffered extensive property damage
from civil unrest in May and June 2020 must jointly appoint as task force members two
residents who live in the neighborhoods where the property damage occurred.
new text end

new text begin (d) Members of the advisory task force appointed under paragraph (a), clauses (1) to
(3), are nonvoting members. All other members are voting members.
new text end

new text begin (e) The Department of Commerce must serve as staff and provide administrative support
to the advisory task force.
new text end

new text begin (f) The advisory task force must advise the commissioner throughout the development
of the request for proposal and grant award process, and may recommend funding priorities
in addition to those listed in subdivision 8. Within 60 days of the initial meeting, the advisory
task force must present recommendations to the commissioner regarding the content of the
request for proposal.
new text end

new text begin (g) An organization that is represented on the advisory task force must not be awarded
a grant under this section.
new text end

new text begin (h) Notwithstanding section 15.059, subdivision 6, advisory task force members may
be compensated as provided under section 15.059, subdivision 3.
new text end

new text begin (i) The advisory task force established under this subdivision expires two years after the
effective date of this act.
new text end

new text begin Subd. 13. new text end

new text begin Report. new text end

new text begin Beginning January 15, 2022, and continuing each January 15 through
2026, the commissioner must submit a report to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over energy policy.
The report must contain:
new text end

new text begin (1) a list of the grant awards made under this section;
new text end

new text begin (2) summaries of the grantee reports submitted under subdivision 10; and
new text end

new text begin (3) other information deemed relevant by the commissioner.
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. 27.

Minnesota Statutes 2020, section 326B.106, subdivision 1, is amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections
326B.101 to 326B.194, the commissioner shall by rule and in consultation with the
Construction Codes Advisory Council establish a code of standards for the construction,
reconstruction, alteration, and repair of buildings, governing matters of structural materials,
design and construction, fire protection, health, sanitation, and safety, including design and
construction standards regarding heat loss control, illumination, and climate control. The
code must also include duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension and revocation of certification.
The code must conform insofar as practicable to model building codes generally accepted
and in use throughout the United States, including a code for building conservation. In the
preparation of the code, consideration must be given to the existing statewide specialty
codes presently in use in the state. Model codes with necessary modifications and statewide
specialty codes may be adopted by reference. The code must be based on the application
of scientific principles, approved tests, and professional judgment. To the extent possible,
the code must be adopted in terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of specifications of particular methods
or materials. To that end the code must encourage the use of new methods and new materials.
Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall
administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to
similar buildings without significant modifications including provisions for use of building
systems as specified in the industrial/modular program specified in section 326B.194.
Additional plan review fees associated with similar plans must be based on costs
commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years
thereafter, the commissioner shall review the new model building codes and adopt the model
codes as amended for use in Minnesota, within two years of the published edition date. The
commissioner may adopt amendments to the building codes prior to the adoption of the
new building codes to advance construction methods, technology, or materials, or, where
necessary to protect the health, safety, and welfare of the public, or to improve the efficiency
or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. new text begin Beginning in
2022, the commissioner shall act on the new model commercial energy code by adopting
each new published edition of ASHRAE 90.1 or a more efficient standard, and amending
the standard as necessary to achieve a minimum of eight percent energy efficiency with
each edition, as measured against energy consumption by an average building in each
applicable building sector in 2003. These amendments must achieve a net zero energy
standard for new commercial buildings by 2036 and thereafter. new text end The commissioner may
adopt amendments prior to adoption of the new energy codes, as amended for use in
Minnesota, to advance construction methods, technology, or materials, or, where necessary
to protect the health, safety, and welfare of the public, or to improve the efficiency or use
of a building.

Sec. 28. new text begin SUPPLEMENTING WEATHERIZATION SERVICES.
new text end

new text begin (a) The state may implement preweatherization measures and qualified energy
technologies in dwelling units of low-income households that are: (1) receiving
weatherization services delivered under the federal Weatherization Assistance Program
authorized under United States Code, title 42, section 6861, et. seq.; and (2) located in
neighborhoods adjacent to areas that experienced property damage resulting from civil
unrest in May and June 2020, as determined by the commissioner of commerce.
new text end

new text begin (b) Minnesota Statutes, section 216C.264, subdivisions 1 to 3 and 6, apply to assistance
provided under this section.
new text end

new text begin (c) The commissioner of commerce may require the design heating load of a dwelling
unit receiving assistance under this section to be no more than 12 British Thermal Units per
hour per square foot after all preweatherization measures financed under this section,
qualified energy technologies financed under this section, and weatherization measures
provided under the federal weatherization program are implemented.
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. 29. new text begin TASK FORCE ON EXPANDING THE PROVISION OF
WEATHERIZATION SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Weatherization Assistance Program" means the federal program described in Code
of Federal Regulations, title 10, part 440 et. seq., designed to assist low-income households
to cost-effectively reduce energy use.
new text end

new text begin (d) "Weatherization service providers" means the network of contracted entities that
administer the Weatherization Assistance Program.
new text end

new text begin (e) "Weatherization assistance services" means the energy conservation measures installed
in households under the Weatherization Assistance Program.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A task force is established to explore ways to expand existing
funding sources and identify potential new funding sources in order to increase the number
of low-income Minnesota households served or the scope of services provided by the
Weatherization Assistance Program.
new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin (a) No later than August 1, 2021, the commissioner must appoint
members to the task force representing the following stakeholders:
new text end

new text begin (1) a statewide association representing Weatherization Assistance Program providers;
new text end

new text begin (2) individual Weatherization Assistance Program service providers;
new text end

new text begin (3) investor-owned utilities;
new text end

new text begin (4) electric cooperatives and municipal utilities;
new text end

new text begin (5) low-income energy advocates;
new text end

new text begin (6) Tribal nations; and
new text end

new text begin (7) delivered fuel dealers.
new text end

new text begin (b) Task force members serve without compensation.
new text end

new text begin (c) The commissioner must fill task force vacancies to maintain the representation
required under paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Meetings; officers. new text end

new text begin (a) The commissioner must convene the first meeting of
the task force no later than August 15, 2021.
new text end

new text begin (b) At the first meeting, the task force must elect a chair and vice-chair from among the
task force's members and may elect other officers as necessary.
new text end

new text begin (c) The task force must meet according to a schedule determined by the task force and
may also meet at the call of the chair. The task force must meet as often as necessary to
accomplish the duties listed under subdivision 5.
new text end

new text begin (d) Task force meetings are subject to the open meeting provisions of Minnesota Statutes,
chapter 13D.
new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin The task force must:
new text end

new text begin (1) develop a strategy to reduce, each year, a targeted number of eligible households
denied weatherization services due to unaddressed health, environmental, or structural
hazards in the home;
new text end

new text begin (2) explore new sources of funding in order to increase the number of households
receiving weatherization assistance services;
new text end

new text begin (3) analyze existing program models in other states that offer services that complement
the Weatherization Assistance Program;
new text end

new text begin (4) analyze the current distribution of weatherization services across ethnic groups;
among different regions of Minnesota; in urban, suburban, and rural areas; and with respect
to other demographic factors in order to determine how to distribute weatherization services
more equitably throughout Minnesota;
new text end

new text begin (5) discuss how additional funding would impact the ability of weatherization assistance
service providers to provide weatherization assistance services to more eligible households;
new text end

new text begin (6) identify services that a supplemental funding program could provide to address
necessary repairs to homes that the federal Weatherization Assistance Program requires
before weatherization assistance is provided, but which cannot be funded with federal
Weatherization Assistance Program funds; and
new text end

new text begin (7) examine other related issues the task force deems relevant.
new text end

new text begin Subd. 6. new text end

new text begin Administrative support. new text end

new text begin The commissioner must provide administrative
support and physical or virtual meeting space needed to complete the task force's work.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin No later than February 1, 2022, the task force must submit a report on
the task force's findings and recommendations to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over energy. The
report must include recommendations for legislation to supplement funding for the
Weatherization Assistance Program.
new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin This section expires April 15, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 30. new text begin TRANSFER.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j),
$5,000,000 in fiscal year 2022 and $5,000,000 in fiscal year 2023 are transferred from the
renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of administration for deposit in the state building energy
conservation improvement account established in Minnesota Statutes, section 16B.86, to
provide loans to state agencies for energy conservation projects under Minnesota Statutes,
section 16B.87.
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. 31. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin State building energy conservation loan account. new text end

new text begin Notwithstanding
Minnesota Statutes, section 116C.779, subdivision 1, paragraph (j), $249,000 in fiscal year
2022 and $137,000 in fiscal year 2023 are appropriated from the renewable development
account to the commissioner of administration for software and administrative costs
associated with the state building energy conservation improvement revolving loan program
under Minnesota Statutes, section 16B.87. The base in fiscal years 2024 and 2025 is
$137,000.
new text end

new text begin Subd. 2. new text end

new text begin Building energy codes. new text end

new text begin $146,000 in fiscal year 2023 is appropriated from the
general fund to the commissioner of labor and industry to implement new commercial
energy codes, as described in Minnesota Statutes, section 326B.106, subdivision 1. This is
a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Rebuild right grants. new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (j), $3,000,000 in fiscal year 2022 is appropriated from the
renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to award rebuild right grants to building
owners, as described in Minnesota Statutes, section 216C.402. This is a onetime
appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 216B.241, subdivisions 1, 1b, 2c, 4, and 10, new text end new text begin are
repealed.
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 8

ENERGY TRANSITION

Section 1.

new text begin [116J.5491] ENERGY TRANSITION OFFICE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of sections 116J.5491 to 116J.5493, the
following terms have the meanings given.
new text end

new text begin (b) "Impacted facility" means an electric generating unit that is or was owned by a public
utility, as defined in section 216B.02, subdivision 4, and that:
new text end

new text begin (1) is currently operating and (i) is scheduled to cease operations, or (ii) whose cessation
of operations has been proposed in an integrated resource plan filed with the Public Utilities
Commission under section 216B.2422; or
new text end

new text begin (2) ceased operations or was removed from the local property tax base no earlier than
five years before the effective date of this section.
new text end

new text begin (c) "Impacted community" means a municipality, Tribal government, or county in which
an impacted facility is located.
new text end

new text begin (d) "Impacted worker" means a Minnesota resident:
new text end

new text begin (1) employed at an impacted facility and who is facing the loss of employment as a result
of the impacted facility's retirement; or
new text end

new text begin (2) employed by a company that, under contract, regularly performs construction,
maintenance, or repair work at an impacted facility, and who is facing the loss of employment
or of work opportunities as a result of the impacted facility's retirement.
new text end

new text begin Subd. 2. new text end

new text begin Office established; director. new text end

new text begin (a) The Energy Transition Office is established
in the Department of Employment and Economic Development.
new text end

new text begin (b) The director of the Energy Transition Office is appointed by the governor. The
director must be qualified by experience in issues related to energy, economic development,
and the environment.
new text end

new text begin (c) The office may employ staff necessary to carry out the duties required in this section.
new text end

new text begin Subd. 3. new text end

new text begin Purpose. new text end

new text begin The purpose of the office is to:
new text end

new text begin (1) address economic dislocations experienced by impacted workers after an impacted
facility is retired;
new text end

new text begin (2) implement recommendations of the Minnesota energy transition plan developed in
section 116J.5493;
new text end

new text begin (3) improve communication among local, state, federal, and private entities regarding
impacted facility retirement planning and implementation;
new text end

new text begin (4) address local tax and fiscal issues related to the impacted facility's retirement and
develop strategies to reduce economic dislocations of impacted communities and impacted
workers; and
new text end

new text begin (5) assist the establishment and implementation of economic support programs, including
but not limited to property tax revenue replacement, community energy transition programs,
and economic development tools, for impacted communities and impacted workers.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The office is authorized to:
new text end

new text begin (1) administer programs to support impacted communities and impacted workers;
new text end

new text begin (2) coordinate resources at local, state, and federal levels to support impacted communities
and impacted workers that are subject to significant economic transition;
new text end

new text begin (3) coordinate the development of a statewide policy on impacted communities and
impacted workers;
new text end

new text begin (4) deliver programs and resources to impacted communities and impacted workers;
new text end

new text begin (5) support impacted workers by establishing benefits and educating impacted workers
on applying for benefits;
new text end

new text begin (6) act as a liaison among impacted communities, impacted workers, and state agencies;
new text end

new text begin (7) assist state agencies to (i) address local tax, land use, economic development, and
fiscal issues related to an impacted facility's retirement, and (ii) develop strategies to support
impacted communities and impacted workers;
new text end

new text begin (8) review existing programs supporting impacted workers and identify gaps that need
to be addressed;
new text end

new text begin (9) support the activities of the energy transition advisory committee members;
new text end

new text begin (10) monitor transition efforts in other states and localities;
new text end

new text begin (11) identify impacted facility closures and estimate job losses and the effect on impacted
communities and impacted workers;
new text end

new text begin (12) maintain communication regarding closure dates with all affected parties; and
new text end

new text begin (13) monitor and participate in administrative proceedings that affect the office's activities,
including matters before the Public Utilities Commission, the Department of Commerce,
the Department of Revenue, and other entities.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) Beginning January 15, 2023, and each year thereafter, the Energy
Transition Office must submit a written report to the chairs and ranking minority members
of the legislative committees with jurisdiction over energy, economic development, and tax
policy and finance on the office's activities during the previous year.
new text end

new text begin (b) The report must contain:
new text end

new text begin (1) a list of impacted facility closures, projected associated job losses, and the effect on
impacted communities and impacted workers;
new text end

new text begin (2) recommendations to support impacted communities and impacted workers;
new text end

new text begin (3) information on the administration of assistance programs administered by the office;
and
new text end

new text begin (4) updates on implementation of the Minnesota energy transition plan.
new text end

new text begin Subd. 6. new text end

new text begin Gifts; grants; donations. new text end

new text begin The office may accept gifts and grants on behalf of
the state that constitute donations to the state. Funds received under this subdivision are
appropriated to the commissioner of employment and economic development to support
the purposes of the office.
new text end

Sec. 2.

new text begin [116J.5492] ENERGY TRANSITION ADVISORY COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; purpose. new text end

new text begin The Energy Transition Advisory Committee is
established to develop a statewide energy transition plan and to advise the governor, the
commissioner, and the legislature on transition issues, established transition programs,
economic initiatives, and transition policy.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The advisory committee consists of 18 voting members and
seven ex officio nonvoting members.
new text end

new text begin (b) The voting members of the advisory committee are appointed by the commissioner
of employment and economic development, except as specified below:
new text end

new text begin (1) two members of the senate, one appointed by the majority leader of the senate and
one appointed by the minority leader of the senate;
new text end

new text begin (2) two members of the house of representatives, one appointed by the speaker of the
house of representatives and one appointed by the minority leader of the house of
representatives;
new text end

new text begin (3) one representative of the Prairie Island Indian community;
new text end

new text begin (4) four representatives of impacted communities, of which two must represent counties
and two must represent municipalities, and, to the extent possible, of the impacted facilities
in those communities, at least one must be a coal plant, at least one must be a nuclear plant,
and at least one must be a natural gas plant;
new text end

new text begin (5) three representatives of impacted workers at impacted facilities;
new text end

new text begin (6) one representative of impacted workers employed by companies that, under contract,
regularly perform construction, maintenance, or repair work at an impacted facility;
new text end

new text begin (7) one representative with professional economic development or workforce retraining
experience;
new text end

new text begin (8) two representatives of utilities that operate an impacted facility;
new text end

new text begin (9) one representative from a nonprofit organization with expertise and experience
delivering energy efficiency and conservation programs; and
new text end

new text begin (10) one representative from the Coalition of Utility Cities.
new text end

new text begin (c) The ex officio nonvoting members of the advisory committee consist of:
new text end

new text begin (1) the governor or the governor's designee;
new text end

new text begin (2) the commissioner of employment and economic development or the commissioner's
designee;
new text end

new text begin (3) the commissioner of commerce, or the commissioner's designee;
new text end

new text begin (4) the commissioner of labor and industry or the commissioner's designee;
new text end

new text begin (5) the commissioner of revenue or the commissioner's designee;
new text end

new text begin (6) the executive secretary of the Public Utilities Commission or the secretary's designee;
and
new text end

new text begin (7) the commissioner of the Pollution Control Agency or the commissioner's designee.
new text end

new text begin Subd. 3. new text end

new text begin Initial appointments and first meeting. new text end

new text begin The appointing authorities must
appoint the members of the advisory committee by August 1, 2021. The commissioner of
employment and economic development must convene the first meeting by September 1,
2021, and must act as chair until the advisory committee elects a chair at the first meeting.
new text end

new text begin Subd. 4. new text end

new text begin Officers. new text end

new text begin The committee must elect a chair and vice-chair from among the
voting members for terms of two years.
new text end

new text begin Subd. 5. new text end

new text begin Open meetings. new text end

new text begin Advisory committee meetings are subject to chapter 13D.
new text end

new text begin Subd. 6. new text end

new text begin Conflict of interest. new text end

new text begin An advisory committee member is prohibited from
discussing or voting on issues relating to an organization in which the member has either a
direct or indirect financial interest.
new text end

new text begin Subd. 7. new text end

new text begin Gifts; grants; donations. new text end

new text begin The advisory committee may accept gifts and grants
on behalf of the state and that constitute donations to the state. Funds received under this
subdivision are appropriated to the commissioner of employment and economic development
to support the activities of the advisory committee.
new text end

new text begin Subd. 8. new text end

new text begin Meetings. new text end

new text begin The advisory committee must meet monthly until the energy transition
plan is submitted to the governor and the legislature. The chair may call additional meetings
as necessary.
new text end

new text begin Subd. 9. new text end

new text begin Staff. new text end

new text begin The Department of Employment and Economic Development shall serve
as staff for the advisory committee.
new text end

new text begin Subd. 10. new text end

new text begin Expiration. new text end

new text begin This section expires the day after the Minnesota energy transition
plan required under section 116J.5493 is submitted to the legislature and the governor.
new text end

Sec. 3.

new text begin [116J.5493] MINNESOTA ENERGY TRANSITION PLAN.
new text end

new text begin (a) By July 1, 2022, the Energy Transition Advisory Committee established in section
116J.5492 must submit a statewide energy transition plan to the governor and the chairs
and ranking minority members of the legislative committees having jurisdiction over
economic development and energy.
new text end

new text begin (b) The energy transition plan must, at a minimum, for each impacted facility:
new text end

new text begin (1) identify the timing and location of impacted facility retirements and projected job
losses in communities;
new text end

new text begin (2) analyze the estimated fiscal impact of impacted facility retirements on local
governments;
new text end

new text begin (3) describe the statutes and administrative processes that govern how retired utility
property impacts a local government tax base;
new text end

new text begin (4) review existing state programs that might support impacted communities and impacted
workers, and a projection of how effective or ineffective the programs might be in responding
to the effects of impacted facility retirements; and
new text end

new text begin (5) recommend how to effectively respond to the economic effects of impacted facility
retirements.
new text end

Sec. 4.

new text begin [116J.5501] MINNESOTA INNOVATION FINANCE AUTHORITY.
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) "Authority" means the Minnesota Innovation Finance Authority.
new text end

new text begin (c) "Clean energy project" has the meaning given to qualified project in paragraph (j),
clauses (1) to (4).
new text end

new text begin (d) "Credit enhancement" means a pool of capital set aside to cover potential losses on
loans made by private lenders, including but not limited to loan loss reserves and loan
guarantees.
new text end

new text begin (e) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f).
new text end

new text begin (f) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (g) "Greenhouse gas emissions" has the meaning given to statewide greenhouse gas
emissions in section 216H.01, subdivision 2.
new text end

new text begin (h) "Loan loss reserve" means a pool of capital set aside to reimburse a private lender
if a customer defaults on a loan, up to an agreed upon percentage of loans originated by the
private lender.
new text end

new text begin (i) "Microgrid system" means an electrical grid that serves a discrete geographical area
from distributed energy resources and can operate independently from the central electric
grid on a temporary basis.
new text end

new text begin (j) "Qualified project" means:
new text end

new text begin (1) a project, technology, product, service, or measure that:
new text end

new text begin (i) reduces energy use while providing the same level and quality of service or output
obtained before the application of the project;
new text end

new text begin (ii) shifts the use of electricity by retail customers in response to changes in the price of
electricity that vary over time, or other incentives designed to shift electricity demand from
times when market prices are high or when system reliability is jeopardized; or
new text end

new text begin (iii) significantly reduces greenhouse gas emissions relative to greenhouse gas emissions
produced before implementing the project, excluding projects that generate power from the
combustion of fossil fuels;
new text end

new text begin (2) the development, construction, deployment, alteration, or repair of any:
new text end

new text begin (i) project, technology, product, service, or measure that generates electric power from
renewable energy; or
new text end

new text begin (ii) distributed generation system, energy storage system, smart grid technology, microgrid
system, fuel cell system, or combined heat and power system;
new text end

new text begin (3) the installation, construction, or use of end-use electric technology that replaces
existing fossil fuel-based technology;
new text end

new text begin (4) a project, technology, product, service, or measure that supports the development
and deployment of electric vehicle charging stations and associated infrastructure;
new text end

new text begin (5) agriculture projects that reduce net greenhouse gas emissions or improve climate
resiliency, including but not limited to reforestation, afforestation, forestry management,
and regenerative agriculture;
new text end

new text begin (6) the construction or enhancement of infrastructure that is planned, designed, and
operated in a manner that anticipates, prepares for, and adapts to current and projected
changing climate conditions so that the infrastructure withstands, responds to, and more
readily recovers from disruptions caused by the current and projected changing climate
conditions; and
new text end

new text begin (7) the development, construction, deployment, alteration, or repair of any project,
technology, product, service, or measure that:
new text end

new text begin (i) reduces water use while providing the same or better level and quality of service or
output that was obtained before implementing the water-saving approach; or
new text end

new text begin (ii) protects, restores, or preserves the quality of groundwater and surface waters,
including but not limited to actions that further the purposes of the Clean Water Legacy
Act, as provided in section 114D.10, subdivision 1.
new text end

new text begin (k) "Regenerative agriculture" means the deployment of farming methods that reduce
agriculture's contribution to climate change by increasing the soil's ability to absorb
atmospheric carbon and convert the atmospheric carbon to soil carbon.
new text end

new text begin (l) "Renewable energy" means energy generated from the following sources:
new text end

new text begin (1) solar;
new text end

new text begin (2) wind;
new text end

new text begin (3) geothermal;
new text end

new text begin (4) hydro;
new text end

new text begin (5) trees or other vegetation;
new text end

new text begin (6) anaerobic digestion of organic waste streams; and
new text end

new text begin (7) fuel cells using energy sources listed in this paragraph.
new text end

new text begin (m) "Smart grid" means a digital technology that allows for two-way communication
between a utility and the utility's customers that enables the utility to control power flow
and load in real time.
new text end

new text begin (n) "Task force" means the task force of the Minnesota Innovation Finance Authority.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin (a) By October 15, 2021, the Minnesota Innovation
Finance Authority Task Force established in this section must establish the Minnesota
Innovation Finance Authority as a nonprofit corporation under chapter 317A and must seek
designation as a charitable tax-exempt organization under section 501(c)(3) of the Internal
Revenue Code of 1986, as amended.
new text end

new text begin (b) When incorporated, the authority's purpose is to accelerate the deployment of clean
energy and other qualified projects by reducing the upfront and total cost of adoption, which
the authority achieves by leveraging existing public sources and additional private sources
of capital through the strategic deployment of public funds in the form of loans, credit
enhancements, and other financing mechanisms. The initial directors of the nonprofit
corporation must include at least a majority of the members of the task force and must
include, as nonvoting ex officio members, the commissioner of commerce or the
commissioner's designee and the commissioner of employment and economic development
or the commissioner's designee. The task force must engage independent legal counsel with
relevant experience in nonprofit corporation law and clean energy financing.
new text end

new text begin (c) The Minnesota Innovation Finance Authority must:
new text end

new text begin (1) identify underserved markets for qualified projects in Minnesota, develop programs
to overcome market impediments, and provide access to financing to serve the projects and
underserved markets;
new text end

new text begin (2) strategically use authority funds to leverage private investment in qualified projects,
achieving a high ratio of private to public funds invested through funding mechanisms that
support, enhance, and complement private investment;
new text end

new text begin (3) coordinate with existing government- and utility-based programs to make the most
efficient use of the authority's funds, ensure that financing terms and conditions offered are
well-suited to qualified projects, and ensure the authority's activities add to and complement
the efforts of these partners;
new text end

new text begin (4) stimulate demand for qualified projects by serving as a single point of access for a
customer to obtain technical information on energy conservation and renewable energy
measures, for contractors who install energy conservation and renewable energy measures,
and for financing to reduce the upfront and total costs to borrowers, including through:
new text end

new text begin (i) serving as a clearinghouse for information about federal, state, and utility financial
assistance for qualifying projects in targeted underserved markets, including coordinating
efforts with the energy conservation programs administered by the customer's utility under
section 216B.241 and other programs offered to low-income households;
new text end

new text begin (ii) forming partnerships with contractors and educating contractors regarding the
authority's financing programs;
new text end

new text begin (iii) coordinating multiple contractors on projects that install multiple qualifying
technologies; and
new text end

new text begin (iv) developing innovative marketing strategies to stimulate project owner interest in
targeted underserved markets;
new text end

new text begin (5) develop rules, policies, and procedures specifying borrower eligibility and other
terms and conditions of financial support offered by the authority;
new text end

new text begin (6) develop consumer protection standards governing the authority's investments to
ensure the authority and partners provide financial support in a responsible and transparent
manner that is in the financial interest of participating project owners;
new text end

new text begin (7) develop and administer policies to collect reasonable fees for authority services that
are sufficient to support ongoing authority activities;
new text end

new text begin (8) develop and adopt a workplan to accomplish all of the activities required of the
authority, and update the workplan on an annual basis; and
new text end

new text begin (9) establish and maintain a comprehensive website providing access to all authority
programs and financial products, including rates, terms, and conditions of all financing
support programs, unless disclosure of the information constitutes a trade secret or
confidential commercial or financial information.
new text end

new text begin Subd. 3. new text end

new text begin Additional authorized activities. new text end

new text begin The authority is authorized to:
new text end

new text begin (1) engage in any activities of a Minnesota nonprofit corporation operating under chapter
317A;
new text end

new text begin (2) develop and employ the following financing methods to support qualified projects:
new text end

new text begin (i) credit enhancement mechanisms that reduce financial risk for private lenders by
providing assurance that a limited portion of a loan is assumed by the authority by means
of a loan loss reserve, loan guarantee, or other mechanism;
new text end

new text begin (ii) co-investment, in which the authority invests directly in a clean energy project
through the provision of senior or subordinated debt, equity, or other mechanisms in
conjunction with a private financier's investment; and
new text end

new text begin (iii) serve as an aggregator of many small and geographically dispersed qualified projects,
in which the authority may provide direct lending, investment, or other financial support in
order to diversify risk;
new text end

new text begin (3) serve as the designated state entity to apply for and accept federal funds authorized
by Congress under a federal climate bank, federal green bank, or other similar entity, provided
that the commissioner of commerce authorizes the application; and
new text end

new text begin (4) seek to qualify as a Community Development Financial Institution under United
States Code, title 12, section 4702, in which case the authority must be treated as a qualified
community development entity for the purposes of sections 45D and 1400(m) of the Internal
Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Task force; membership. new text end

new text begin (a) The task force of the Minnesota Innovation
Finance Authority is established and consists of nine members as follows:
new text end

new text begin (1) the commissioner of commerce or the commissioner's designee, as a nonvoting ex
officio member;
new text end

new text begin (2) the commissioner of employment and economic development or the commissioner's
designee, as a nonvoting ex officio member;
new text end

new text begin (3) three additional members appointed by the governor;
new text end

new text begin (4) two additional members appointed by the speaker of the house of representatives;
and
new text end

new text begin (5) two additional members appointed by the president of the senate.
new text end

new text begin (b) The members appointed to the task force under paragraph (a), clauses (3) to (5), must
have expertise in matters relating to energy conservation, clean energy, economic
development, banking, law, finance, or other matters relevant to the work of the task force.
When appointing a member to the task force, consideration must be given to whether the
task force members collectively reflect the geographical and ethnic diversity of Minnesota.
new text end

new text begin (c) Task force members must be appointed by August 15, 2021.
new text end

new text begin (d) The task force expires when the authority is established as a nonprofit corporation
under chapter 317A.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By June 30, 2022, and by June 30 each year thereafter, the authority
must submit a comprehensive annual report on the authority's activities to the governor and
to the chairs and ranking minority members of the legislative committees with primary
jurisdiction over energy policy. The report must contain, at a minimum, information on:
new text end

new text begin (1) the amount of authority capital invested, by project type;
new text end

new text begin (2) the amount of private capital leveraged as a result of authority investments, by project
type;
new text end

new text begin (3) the number of qualified projects supported, by project type, and the location of the
projects within Minnesota;
new text end

new text begin (4) the estimated number of jobs created and tax revenue generated as a result of the
authority's activities;
new text end

new text begin (5) the number of clean energy projects financed in low- and moderate-income
households; and
new text end

new text begin (6) the authority's financial statements.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2020, section 216B.16, subdivision 6, is amended to read:

Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers
under this chapter to determine just and reasonable rates for public utilities, shall give due
consideration to the public need for adequate, efficient, and reasonable service and to the
need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
the service, including adequate provision for depreciation of its utility property used and
useful in rendering service to the public, and to earn a fair and reasonable return upon the
investment in such property. In determining the rate base upon which the utility is to be
allowed to earn a fair rate of return, the commission shall give due consideration to evidence
of the cost of the property when first devoted to public use, to prudent acquisition cost to
the public utility less appropriate depreciation on each, to construction work in progress, to
offsets in the nature of capital provided by sources other than the investors, and to other
expenses of a capital nature. For purposes of determining rate base, the commission shall
consider the original cost of utility property included in the base and shall make no allowance
for its estimated current replacement value. If the commission orders a generating facility
to terminate its operations before the end of the facility's physical life in order to comply
with a specific state or federal energy deleted text begin statute or deleted text end policy, the commission may allow the public
utility to recover any positive net book value of the facility as determined by the commission.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2020, section 216B.16, subdivision 13, is amended to read:

Subd. 13.

Economic and community development.

The commission may allow a
public utility to recover from ratepayers the new text begin reasonable new text end expenses incurred new text begin (1) new text end for economic
and community development new text begin , and (2) to employ local workers to construct and maintain
generation facilities that supply power to the utility's customers new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2020, section 216B.1645, subdivision 1, is amended to read:

Subdivision 1.

Commission authority.

Upon the petition of a public utility, the Public
Utilities Commission shall approve or disapprove power purchase contracts, investments,
or expenditures entered into or made by the utility to satisfy the wind and biomass mandates
contained in sections 216B.169, 216B.2423, and 216B.2424, deleted text begin and deleted text end to satisfy the renewable
new text begin and solar new text end energy deleted text begin objectives and deleted text end standards set forth in section 216B.1691, new text begin and to provide
additional clean energy resources beyond the proportions required by the mandates and
standards, new text end including reasonable investments and expenditures new text begin , net of revenues, new text end made to:

(1) transmit the electricity generated from sources developed under those sections that
is ultimately used to provide service to the utility's retail customers, including studies
necessary to identify new transmission facilities needed to transmit electricity to Minnesota
retail customers from generating facilities constructed to satisfy the renewable energy
objectives and standards, provided that the costs of the studies have not been recovered
previously under existing tariffs and the utility has filed an application for a certificate of
need or for certification as a priority project under section 216B.2425 for the new
transmission facilities identified in the studies;

(2) provide storage facilities for renewable energy generation facilities that contribute
to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or

(3) develop renewable energy sources from the account required in section 116C.779.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2020, section 216B.1645, subdivision 2, is amended to read:

Subd. 2.

Cost recovery.

The expenses incurred by the utility over the duration of the
approved contract or useful life of the investment deleted text begin and deleted text end new text begin , new text end expenditures made pursuant to section
116C.779 deleted text begin shall be deleted text end new text begin , and the expenses incurred to employ local workers to construct and
maintain generation facilities that supply power to the utility's customers are new text end recoverable
from the ratepayers of the utility deleted text begin , deleted text end to the extent deleted text begin they deleted text end new text begin the expenses or expenditures new text end are not
offset by utility revenues attributable to the contracts, investments, or expenditures new text begin , and if
the expenses or expenditures are deemed reasonable by the commission new text end . Upon petition by
a public utility, the commission shall approve or approve as modified a rate schedule
providing for the automatic adjustment of charges to recover the expenses or costs approved
by the commission under subdivision 1, which, in the case of transmission expenditures,
are limited to the portion of actual transmission costs that are directly allocable to the need
to transmit power from the renewable sources of energy. The commission may not approve
recovery of the costs for that portion of the power generated from sources governed by this
section that the utility sells into the wholesale market.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2020, section 216B.1691, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(1) solar;

(2) wind;

(3) hydroelectric with a capacity of less than 100 megawatts;

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

(5) biomass, which includes, without limitation, landfill gas; an anaerobic digester
system; the predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge to produce electricity; and new text begin , except as provided in subdivision 1a, new text end an
energy recovery facility used to capture the heat value of mixed municipal solid waste or
refuse-derived fuel from mixed municipal solid waste as a primary fuel.

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

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

new text begin (d) "Carbon-free" means a technology that generates electricity without emitting carbon
dioxide.
new text end

new text begin (e) "Area of concern for environmental justice" means an area in Minnesota that meets
one or more of the following conditions:
new text end

new text begin (1) 50 percent or more of the population is nonwhite, based on the most recent data
published by the United States Census Bureau;
new text end

new text begin (2) 40 percent or more of the households have an income at or below 185 percent of the
federal poverty level, based on the most recent data published by the United States Census
Bureau; or
new text end

new text begin (3) is within Indian country, as defined in United State Code, title 18, section 1151.
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.

Minnesota Statutes 2020, section 216B.1691, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Exception; solid waste incinerators. new text end

new text begin (a) An energy recovery facility used to
capture the heat value of mixed municipal solid waste or refuse-derived fuel from mixed
municipal solid waste as a primary fuel is not an eligible energy technology, as defined in
subdivision 1, if:
new text end

new text begin (1) air pollutants emitted by the facility are deposited in an environmental justice area;
and
new text end

new text begin (2) the facility has a permitted maximum capacity of 1,000 tons per day or more.
new text end

new text begin (b) For the purposes of this subdivision, "environmental justice area" has the meaning
given to area of concern for environmental justice under subdivision 1, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2020, section 216B.1691, subdivision 2a, is amended to read:

Subd. 2a.

Eligible energy technology standard.

deleted text begin (a) Except as provided in paragraph
(b), deleted text end Each electric utility shall generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota, or the retail customers
of a distribution utility to which the electric utility provides wholesale electric service, so
that at least the following standard percentages of the electric utility's total retail electric
sales to retail customers in Minnesota are generated by eligible energy technologies by the
end of the year indicated:

(1)	2012	12 percent
(2)	2016	17 percent
(3)	2020	20 percent
(4)	2025	deleted text begin 25 deleted text end new text begin 40 new text end percent deleted text begin . deleted text end
new text begin (5) new text end	new text begin 2035 new text end	new text begin 55 percent. new text end

deleted text begin (b) An electric utility that owned a nuclear generating facility as of January 1, 2007,
must meet the requirements of this paragraph rather than paragraph (a). An electric utility
subject to this paragraph must generate or procure sufficient electricity generated by an
eligible energy technology to provide its retail customers in Minnesota or the retail customer
of a distribution utility to which the electric utility provides wholesale electric service so
that at least the following percentages of the electric utility's total retail electric sales to
retail customers in Minnesota are generated by eligible energy technologies by the end of
the year indicated:
deleted text end

deleted text begin (1) deleted text end	deleted text begin 2010 deleted text end	deleted text begin 15 percent deleted text end
deleted text begin (2) deleted text end	deleted text begin 2012 deleted text end	deleted text begin 18 percent deleted text end
deleted text begin (3) deleted text end	deleted text begin 2016 deleted text end	deleted text begin 25 percent deleted text end
deleted text begin (4) deleted text end	deleted text begin 2020 deleted text end	deleted text begin 30 percent. deleted text end

deleted text begin Of the 30 percent in 2020, at least 25 percent must be generated by solar energy or wind
energy conversion systems and the remaining five percent by other eligible energy
technology. Of the 25 percent that must be generated by wind or solar, no more than one
percent may be solar generated and the remaining 24 percent or greater must be wind
generated.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2020, section 216B.1691, subdivision 2b, is amended to read:

Subd. 2b.

Modification or delay of standard.

(a) The commission shall modify or delay
the implementation of a standard obligation new text begin under subdivision 2a, 2f, or 2g new text end , in whole or in
part, if the commission determines it is in the public interest to do so. The commission,
when requested to modify or delay implementation of a standard, must consider:

(1) the impact of implementing the standard on its customers' utility costs, including the
economic and competitive pressure on the utility's customers;

new text begin (2) the environmental costs that would be incurred as a result of a delay or modification,
based on the full range of environmental cost values established in section 216B.2422,
subdivision 3;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the effects of implementing the standard on the reliability of the electric system;

deleted text begin (3) deleted text end new text begin (4) new text end technical advances or technical concerns;

deleted text begin (4) deleted text end new text begin (5) new text end delays in acquiring sites or routes due to rejection or delays of necessary siting
or other permitting approvals;

deleted text begin (5) deleted text end new text begin (6) new text end delays, cancellations, or nondelivery of necessary equipment for construction or
commercial operation of an eligible energy technology facility;

deleted text begin (6) deleted text end new text begin (7) new text end transmission constraints preventing delivery of service; deleted text begin and
deleted text end

deleted text begin (7) deleted text end new text begin (8) new text end other statutory obligations imposed on the commission or a utility new text begin ; and
new text end

new text begin (9) impacts on areas of concern for environmental justice new text end .

The commission may modify or delay implementation of a standard obligation under
clauses (1) to deleted text begin (3) deleted text end new text begin (4) new text end only if it finds implementation would cause significant rate impact,
requires significant measures to address reliability, or raises significant technical issues.
The commission may modify or delay implementation of a standard obligation under clauses
deleted text begin (4) deleted text end new text begin (5) new text end to deleted text begin (6) deleted text end new text begin (7) new text end only if it finds that the circumstances described in those clauses were due
to circumstances beyond an electric utility's control and make compliance not feasible.

new text begin (b) When evaluating transmission capacity constraints under paragraph (a), clause (7),
the commission must consider whether the utility has:
new text end

new text begin (1) undertaken reasonable measures under the utility's control and consistent with the
utility's obligations under local, state, and federal laws and regulations, and the utility's
obligations as a member of a regional transmission organization or independent system
operator, to acquire sites, necessary permit approvals, and necessary equipment to develop
and construct new transmission lines or upgrade existing transmission lines to transmit
electricity generated by eligible energy technologies; and
new text end

new text begin (2) taken all reasonable operational measures to maximize cost-effective electricity
delivery from eligible energy technologies in advance of transmission availability.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end When considering whether to delay or modify implementation of a standard
obligation, the commission must give due consideration to a preference for electric generation
through use of eligible energy technology and to the achievement of the standards set by
this section.

deleted text begin (c) deleted text end new text begin (d) new text end An electric utility requesting a modification or delay in the implementation of a
standard must file a plan to comply with its standard obligation in the same proceeding deleted text begin that deleted text end new text begin
in which new text end it deleted text begin is requesting deleted text end new text begin requests new text end the delay.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2020, section 216B.1691, subdivision 2d, is amended to read:

Subd. 2d.

Commission order.

The commission shall issue necessary orders detailing
the criteria and standards deleted text begin by which it will deleted text end new text begin used to new text end measure an electric utility's efforts to meet
the renewable energy deleted text begin objectives of subdivision 2 deleted text end new text begin standards under subdivisions 2a, 2f, and
2g, and new text end to determine whether the utility is deleted text begin making the required good faith effort deleted text end new text begin achieving
the standards new text end . In this order, the commission shall include criteria and standards that protect
against undesirable impacts on the reliability of the utility's system and economic impacts
on the utility's ratepayers and that consider technical feasibility.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2020, section 216B.1691, subdivision 2e, is amended to read:

Subd. 2e.

Rate impact of standard compliance; report.

Each electric utility must
submit to the commission and the legislative committees with primary jurisdiction over
energy policy a report containing an estimation of the rate impact of activities of the electric
utility necessary to comply with this section. In consultation with the Department of
Commerce, the commission shall determine a uniform reporting system to ensure that
individual utility reports are consistent and comparable, and shall, by order, require each
electric utility subject to this section to use that reporting system. The rate impact estimate
must be for wholesale rates and, if the electric utility makes retail sales, the estimate shall
also be for the impact on the electric utility's retail rates. Those activities include, without
limitation, energy purchases, generation facility acquisition and construction, and
transmission improvements. deleted text begin An initial report must be submitted within 150 days of May
28, 2011. After the initial report, deleted text end A report must be updated and submitted as part of each
integrated resource plan or plan modification filed by the electric utility under section
216B.2422. The reporting obligation of an electric utility under this subdivision expires
December 31, deleted text begin 2025, for an electric utility subject to subdivision 2a, paragraph (a), and
December 31, 2020, for an electric utility subject to subdivision 2a, paragraph (b) deleted text end new text begin 2040 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2020, section 216B.1691, subdivision 2f, is amended to read:

Subd. 2f.

Solar energy standard.

(a) In addition to the requirements of subdivisions 2a
and deleted text begin 2b deleted text end new text begin 2g new text end , each public utility shall generate or procure sufficient electricity generated by
solar energy to serve its retail electricity customers in Minnesota so that by the end of 2020,
at least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota
is generated by solar energy.

(b) For a public utility with more than 200,000 retail electric customers, at least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured from
solar photovoltaic devices with a nameplate capacity of 40 kilowatts or less.

(c) A public utility with between 50,000 and 200,000 retail electric customers:

(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
less; and

(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
of 40 kilowatts or less to a community solar garden program operated by the public utility
that has been approved by the commission.

(d) The solar energy standard established in this subdivision is subject to all the provisions
of this section governing a utility's standard obligation under subdivision 2a.

(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail
electric sales in Minnesota be generated by solar energy.

(f) For the purposes of calculating the total retail electric sales of a public utility under
this subdivision, there shall be excluded retail electric sales to customers that are:

(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or

(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer.

Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.

(g) A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
solar standard under this subdivision.

(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota after
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.

deleted text begin (i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall file
a report with the commission reporting its progress in achieving the solar energy standard
established under this subdivision.
deleted 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. 16.

Minnesota Statutes 2020, section 216B.1691, is amended by adding a subdivision
to read:

new text begin Subd. 2g. new text end

new text begin Carbon-free standard. new text end

new text begin In addition to the requirements under subdivisions
2a and 2f, each electric utility must generate or procure sufficient electricity generated from
a carbon-free energy technology to provide the utility's retail customers in Minnesota, or
the retail customers of a distribution utility to which the electric utility provides wholesale
electric service, so that at least the following standard percentages of the electric utility's
total retail electric sales to retail customers in Minnesota are generated from carbon-free
energy technologies by the end of the year indicated:
new text end

new text begin (1) new text end	new text begin 2025 new text end	new text begin 65 percent new text end
new text begin (2) new text end	new text begin 2030 new text end	new text begin 80 percent new text end
new text begin (3) new text end	new text begin 2035 new text end	new text begin 90 percent new text end
new text begin (4) new text end	new text begin 2040 new text end	new text begin 100 percent. 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. 17.

Minnesota Statutes 2020, section 216B.1691, subdivision 3, is amended to read:

Subd. 3.

Utility plans filed with commission.

(a) Each electric utility shall report on
its plans, activities, and progress with regard to the deleted text begin objectives and standards of deleted text end new text begin standard
obligations under new text end this section in its filings under section 216B.2422 or in a separate report
submitted to the commission every two years, whichever is more frequent, demonstrating
to the commission the utility's effort to comply with this section. In its resource plan or a
separate report, each electric utility shall provide a description of:

(1) the status of the utility's renewable energy mix relative to the deleted text begin objective and standards deleted text end new text begin
standard obligations new text end ;

(2) efforts taken to meet the deleted text begin objective and standards deleted text end new text begin standard obligations new text end ;

(3) any obstacles encountered or anticipated in meeting the deleted text begin objective or standards; and deleted text end new text begin
standard obligations;
new text end

(4) potential solutions to the obstacles deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) the number of Minnesotans employed to construct facilities designed to meet the
utility's standard obligations under this section;
new text end

new text begin (6) efforts taken to retain and retrain workers employed at electric generating facilities
that the utility has ceased operating or designated to cease operating for new positions
constructing or operating facilities to meet a utility's standard obligation;
new text end

new text begin (7) impacts of facilities designed to meet the utility's standard obligations under this
section on areas of concern for environmental justice; and
new text end

new text begin (8) efforts to increase the diversity of both its workforce and vendors.
new text end

(b) The commissioner shall compile the information provided to the commission under
paragraph (a), and report to the chairs of the house of representatives and senate committees
with jurisdiction over energy and environment policy issues as to the progress of utilities
in the state, including the progress of each individual electric utility, in increasing the amount
of renewable energy provided to retail customers, with any recommendations for regulatory
or legislative action, by January 15 of each odd-numbered year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2020, section 216B.1691, subdivision 4, is amended to read:

Subd. 4.

Renewable energy credits.

(a) To facilitate compliance with this section, the
commission, by rule or order, shall establish by January 1, 2008, a program for tradable
renewable energy credits for electricity generated by eligible energy technology. The credits
must represent energy produced by an eligible energy technology, as defined in subdivision
1. Each kilowatt-hour of renewable energy credits must be treated the same as a kilowatt-hour
of eligible energy technology generated or procured by an electric utility if it is produced
by an eligible energy technology. The program must permit a credit to be used only once.
The program must treat all eligible energy technology equally and shall not give more or
less credit to energy based on the state where the energy was generated or the technology
with which the energy was generated. The commission must determine the period in which
the credits may be used for purposes of the program.

(b) In lieu of generating or procuring energy directly to satisfy deleted text begin the eligible energy
technology objective or deleted text end new text begin a new text end standard deleted text begin of deleted text end new text begin obligation under new text end this section, an electric utility may
utilize renewable energy credits allowed under the program to satisfy the deleted text begin objective or deleted text end
standard.

(c) The commission shall facilitate the trading of renewable energy credits between
states.

(d) The commission shall require all electric utilities to participate in a
commission-approved credit-tracking system or systems. Once a credit-tracking system is
in operation, the commission shall issue an order establishing protocols for trading credits.

deleted text begin (e) An electric utility subject to subdivision 2a, paragraph (b), may not sell renewable
energy credits to an electric utility subject to subdivision 2a, paragraph (a), until 2021.
deleted 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. 19.

Minnesota Statutes 2020, section 216B.1691, subdivision 5, is amended to read:

Subd. 5.

Technology based on fuel combustion.

(a) Electricity produced by fuel
combustion through fuel blending or co-firing under paragraph (b) may only count toward
a utility's deleted text begin objectives or standards deleted text end new text begin standard obligation new text end if the generation facility:

(1) was constructed in compliance with new source performance standards promulgated
under the federal Clean Air Act, United States Code, title 42, section 7401 et seq., for a
generation facility of that type; or

(2) employs the maximum achievable or best available control technology available for
a generation facility of that type.

(b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1,
paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage
of electricity that is attributable to a fuel listed in that clause can be counted toward an
electric utility's deleted text begin renewable energy objectives deleted text end new text begin standard obligation 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.

Minnesota Statutes 2020, section 216B.1691, subdivision 7, is amended to read:

Subd. 7.

Compliance.

The commission must regularly investigate whether an electric
utility is in compliance with its deleted text begin good faith objective under subdivision 2 and deleted text end standard
obligation under deleted text begin subdivision deleted text end new text begin subdivisions new text end 2a new text begin , 2f, and 2g new text end . If the commission finds
noncompliance, it may order the electric utility to construct facilities, purchase energy
generated by eligible energy technology, purchase renewable energy credits, or engage in
other activities to achieve compliance. If an electric utility fails to comply with an order
under this subdivision, the commission may impose a financial penalty on the electric utility
in an amount not to exceed the estimated cost of the electric utility to achieve compliance.
The penalty may not exceed the lesser of the cost of constructing facilities or purchasing
credits. The commission must deposit financial penalties imposed under this subdivision
in the energy and conservation account established in the special revenue fund under section
216B.241, subdivision 2a. This subdivision is in addition to and does not limit any other
authority of the commission to enforce 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. 21.

Minnesota Statutes 2020, section 216B.1691, subdivision 9, is amended to read:

Subd. 9.

Local benefits.

new text begin (a) new text end The commission shall take all reasonable actions within its
statutory authority to ensure this section is implemented deleted text begin to maximize deleted text end new text begin in a manner that
maximizes net new text end benefits to new text begin all new text end Minnesota citizens deleted text begin , balancing deleted text end new text begin throughout the state, including
but not limited to:
new text end

new text begin (1) the creation of high-quality jobs in Minnesota paying wages that support families;
new text end

new text begin (2) recognition of the rights of workers to organize and unionize;
new text end

new text begin (3) ensuring that workers have the necessary tools, opportunities, and economic assistance
to adapt successfully during the energy transition, particularly in areas of concern for
environmental justice;
new text end

new text begin (4) ensuring that all Minnesotans share the benefits of clean and renewable energy, and
the opportunity to participate fully in the clean energy economy;
new text end

new text begin (5) ensuring that statewide air emissions are reduced, particularly in areas of concern
for environmental justice; and
new text end

new text begin (6) the provision of affordable electric service to Minnesotans, particularly to low-income
consumers.
new text end

new text begin (b) The commission must also implement this section in a manner that balances new text end factors
such as local ownership of or participation in energy production, development and ownership
of eligible energy technology facilities by independent power producers, Minnesota utility
ownership of eligible energy technology facilities, the costs of energy generation to satisfy
the renewable deleted text begin standard deleted text end new text begin and carbon-free standards new text end , and the reliability of electric service to
Minnesotans.

new text begin (c) When making investments to meet the requirements under this section, utilities are
encouraged to locate new energy generating facilities in Minnesota communities where
fossil-fuel generating plants have been retired or are scheduled for retirement.
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. 22.

Minnesota Statutes 2020, section 216B.1691, subdivision 10, is amended to read:

Subd. 10.

Utility acquisition of resources.

A competitive resource acquisition process
established by the commission prior to June 1, 2007, shall not apply to a utility for the
construction, ownership, and operation of generation facilities used to satisfy the requirements
of this section unless, upon a finding that it is in the public interest, the commission issues
an order on or after June 1, 2007, that requires compliance by a utility with a competitive
resource acquisition process. A utility that owns a nuclear generation facility and intends
to construct, own, or operate facilities under this section shall file with the commission deleted text begin on
or before March 1, 2008, deleted text end new text begin as part of the utility's filing under section 216B.2422 new text end a renewable
energy plan setting forth the manner in which the utility proposes to meet the requirements
of this section. deleted text begin The utility shall update the plan as necessary in its filing under section
216B.2422. deleted text end The commission shall approve the plan unless it determines, after public hearing
and comment, that the plan is not in the public interest. As part of its determination of public
interest, the commission shall consider the plan's impact on balancing the state's interest in:

(1) promoting the policy of economic development in rural areas through the development
of renewable energy projects, as expressed in subdivision 9;

(2) maintaining the reliability of the state's electric power grid; and

(3) minimizing cost impacts on ratepayers.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2020, section 216B.2422, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

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

(1) wind;

(2) solar;

(3) geothermal;

(4) hydro;

(5) trees or other vegetation;

(6) landfill gas; or

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

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

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

(f) "Energy storage system" means a commercially available technology that:

(1) uses mechanical, chemical, or thermal processes to:

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

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

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

deleted text begin (3) deleted text end new text begin (2) new text end if being used for electric grid benefits, is new text begin (i) new text end operationally visible new text begin to the distribution
or transmission entity managing it, new text end and new text begin (ii) new text end capable of being controlled by the distribution
or transmission entity deleted text begin managing it, deleted text end to enable and optimize the safe and reliable operation
of the electric system; and

deleted text begin (4) deleted text end new text begin (3) new text end achieves any of the following:

(i) reduces peak or electrical demand;

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

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

(iv) deleted text begin lowers customer costs deleted text end new text begin produces a net ratepayer benefit new text end by storing energy when the
cost of generating or purchasing deleted text begin it deleted text end new text begin energy new text end is low and delivering deleted text begin it deleted text end new text begin energy new text end to customers when
the costs are high.

new text begin (g) Clean energy resource means:
new text end

new text begin (1) renewable energy, as defined in section 216B.2422, subdivision 1, paragraph (c);
new text end

new text begin (2) an energy storage system storing energy generated by renewable energy or a
carbon-free resource;
new text end

new text begin (3) energy efficiency, as defined in section 216B.241, subdivision 1;
new text end

new text begin (4) load management, as defined in section 216B.241, subdivision 1; or
new text end

new text begin (5) a carbon-free resource that the commission has determined is cost competitive under
subdivision 4, paragraph (g).
new text end

new text begin (h) "Carbon-free resource" means a generation technology that, when operating, does
not contribute to statewide greenhouse gas emissions, as defined in section 216H.01,
subdivision 2.
new text end

new text begin (i) "Nonrenewable energy facility" means a generation facility that does not use a
renewable energy or other clean energy resource. Nonrenewable facility does not include
a nuclear facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 24.

Minnesota Statutes 2020, section 216B.2422, subdivision 2, is amended to read:

Subd. 2.

Resource plan filing and approval.

(a) A utility shall file a resource plan with
the commission periodically in accordance with rules adopted by the commission. The
commission shall approve, reject, or modify the plan of a public utility, as defined in section
216B.02, subdivision 4, consistent with the public interest.

(b) In the resource plan proceedings of all other utilities, the commission's order shall
be advisory and the order's findings and conclusions shall constitute prima facie evidence
which may be rebutted by substantial evidence in all other proceedings. With respect to
utilities other than those defined in section 216B.02, subdivision 4, the commission shall
consider the filing requirements and decisions in any comparable proceedings in another
jurisdiction.

(c) As a part of its resource plan filing, a utility shall include the least cost plan for
meeting 50 deleted text begin and deleted text end new text begin , new text end 75 new text begin , and 100 new text end percent of all energy needs from both new and refurbished
generating facilities through a combination of deleted text begin conservation and renewable deleted text end new text begin clean new text end energy new text begin and
carbon-free new text end resources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 25.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 2d. new text end

new text begin Plan to minimize impacts to workers due to facility retirement. new text end

new text begin A utility
required to file a resource plan under subdivision 2 that has scheduled the retirement of an
electric generating facility located in Minnesota must include in the filing a narrative
describing the utility's efforts, in conjunction with the utility's workers and the workers'
designated representatives, to develop a plan to minimize the dislocations employees may
suffer as a result of the facility's retirement. The narrative must address, at a minimum,
plans to:
new text end

new text begin (1) minimize financial losses to workers;
new text end

new text begin (2) provide a transition timeline to ensure certainty for workers;
new text end

new text begin (3) protect pension benefits;
new text end

new text begin (4) extend or replace health insurance, life insurance, and other employment benefits;
new text end

new text begin (5) identify and maximize employment opportunities within the utility for dislocated
workers, including providing incentives for the utility to retain as many workers as possible;
new text end

new text begin (6) provide training and skill development for workers who must or choose to leave the
utility;
new text end

new text begin (7) create targeted transition plans for workers at all locations impacted by the facility
retirement; and
new text end

new text begin (8) quantify any additional costs the utility would incur and specifying what costs, if
any, the utility would request be recovered in the utility's rates as a result of efforts made
under this subdivision to minimize impacts to workers.
new text end

Sec. 26.

Minnesota Statutes 2020, section 216B.2422, subdivision 3, is amended to read:

Subd. 3.

Environmental costs.

(a) The commission shall, deleted text begin to the extent practicable deleted text end new text begin using
the best available scientific and economic information and data new text end , quantify and establish a
range of environmental costs associated with each method of electricity generation. new text begin The
commission shall adopt and apply the interim cost of greenhouse gas emissions valuations
presented in Technical Support Document: Social Cost of Carbon, Methane, and Nitrous
Oxide Interim Estimates, released by the federal government in February 2021, adopting
the 300-year time horizon and the full range of discount rates from 2.5 to five percent, with
three percent as the central estimate, and shall update the parameters as necessary to conform
with updates released by the federal Interagency Working Group on the Social Cost of
Greenhouse Gases or successors that are above the February 2021 interim valuations.
new text end

new text begin (b) When evaluating and selecting resource options in all proceedings before the
commission, including but not limited to proceedings regarding power purchase agreements,
resource plans, and certificates of need, new text end a utility deleted text begin shall deleted text end new text begin must new text end use the values established by
the commission deleted text begin in conjunction with other external factors, including socioeconomic costs,
when evaluating and selecting resource options in all proceedings before the commission,
including resource plan and certificate of need proceedings. deleted text end new text begin under this subdivision to quantify
and monetize greenhouse gas and other emissions from the full lifecycle of fuels used for
in-state or imported electricity generation, including extraction, processing, transport, and
combustion.
new text end

new text begin (c) When evaluating resource options, the commission must include and consider the
environmental cost values adopted under this subdivision. When considering the costs of a
nonrenewable energy facility under this section, the commission must consider only nonzero
values for the environmental costs analyzed under this subdivision, including both the low
and high values of any cost range adopted by the commission.
new text end

deleted text begin (b) The commission shall establish interim environmental cost values associated with
each method of electricity generation by March 1, 1994. These values expire on the date
the commission establishes environmental cost values under paragraph (a).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 27.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Favored electric resources; state policy. new text end

new text begin It is the policy of the state that: (1)
in order to hasten the achievement of the greenhouse gas reduction goals under section
216H.02, the renewable energy standard under section 216B.1691, subdivision 2a, and the
solar energy standard under section 216B.1691, subdivision 2f; and (2) given the significant
and continuing reductions in the cost of wind technologies, solar technologies, energy
storage systems, demand-response technologies, and energy efficiency technologies and
strategies, the favored method to meet electricity demand in Minnesota is a combination of
clean energy resources.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 28.

Minnesota Statutes 2020, section 216B.2422, subdivision 4, is amended to read:

Subd. 4.

Preference for deleted text begin renewable deleted text end new text begin clean new text end energy deleted text begin facility deleted text end new text begin resources new text end .

new text begin (a) new text end The commission
shall not approve a new or refurbished nonrenewable energy facility in an integrated resource
plan or a certificate of need, pursuant to section 216B.243, nor shall the commission new text begin approve
a power purchase agreement or new text end allow rate recovery pursuant to section 216B.16 for deleted text begin such deleted text end a
nonrenewable energy facility, unless the utility has demonstrated new text begin by clear and convincing
evidence new text end that a renewable energy facility new text begin , alone or in combination with other clean energy
resources, new text end is not in the public interest. deleted text begin When making the public interest determination, the deleted text end
deleted text begin commission must consider:
deleted text end

deleted text begin (1) whether the resource plan helps the utility achieve the greenhouse gas reduction
goals under section 216H.02, the renewable energy standard under section 216B.1691, or
the solar energy standard under section 216B.1691, subdivision 2f;
deleted text end

deleted text begin (2) impacts on local and regional grid reliability;
deleted text end

deleted text begin (3) utility and ratepayer impacts resulting from the intermittent nature of renewable
energy facilities, including but not limited to the costs of purchasing wholesale electricity
in the market and the costs of providing ancillary services; and
deleted text end

deleted text begin (4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
changes in transmission costs, portfolio diversification, and environmental compliance
costs.
deleted text end

new text begin (b) In order to determine that a renewable energy facility, alone or in combination with
other clean energy resources, is not in the public interest, the commission must find by clear
and convincing evidence that using renewable or clean energy resources to meet the need
for resources is not affordable or reliable when compared with a nonrenewable energy
facility or nonclean energy resource.
new text end

new text begin (c) When determining whether a renewable or clean energy resource is not affordable,
the commission must consider utility and ratepayer effects resulting from:
new text end

new text begin (1) the intermittent nature of renewable energy facilities, including but not limited to
the cost to purchase wholesale electricity in the market and the cost to provide ancillary
services;
new text end

new text begin (2) reduced exposure to fuel price volatility, changes in transmission and distribution
costs, portfolio diversification, and environmental compliance costs; and
new text end

new text begin (3) other environmental costs resulting from a nonrenewable energy facility, as determined
by the commission under subdivision 3.
new text end

new text begin (d) When determining whether a renewable or clean energy resource is reliable, the
commission must consider, to the extent reasonable, the ability of the resources or facilities
of the utility and the regional electric grid to provide essential reliability services, including
frequency response, balancing services, and voltage control.
new text end

new text begin (e) The commission must make a written determination describing the commission's
findings and the reasoning behind the conclusions regarding whether a renewable or clean
energy resource is affordable and reliable under this subdivision. When making the public
interest determination under paragraph (a), the commission must also consider and make a
written determination as to whether the energy resources approved by the commission:
new text end

new text begin (1) help the state achieve the greenhouse gas reduction goals under section 216H.02;
new text end

new text begin (2) help the utility achieve the renewable energy standard under section 216B.1691,
subdivision 2a, or the solar energy standard under section 216B.1691, subdivision 2f; and
new text end

new text begin (3) will result in any positive or harmful effects on the economy of northeastern
Minnesota, including but not limited to mining, logging, and the clean energy industry.
new text end

new text begin (f) Nothing in this section impacts a decision to continue operating a nuclear facility
that is generating energy in Minnesota as of June 1, 2020. If a decision is made to retire an
existing nuclear electric generating unit, paragraphs (a) to (e) govern the process to identify
replacement resources.
new text end

new text begin (g) The commission may, by order, add to the list of resources the commission determines
are clean energy resources for the purposes of this section upon finding that the resource is
carbon-free and cost competitive when compared with other carbon-free alternatives.
new text end

new text begin (h) If the commission approves a public utility's integrated resource plan that includes
the retirement of a facility that contributes to statewide greenhouse gas emissions, the public
utility is entitled to own at least a portion of the generation, transmission, and other facilities
necessary to replace the accredited capacity and energy of the retiring facility, as determined
by the commission, provided that:
new text end

new text begin (1) for a public utility with more than 200,000 retail electric customers in Minnesota,
the approved resource plan projects that the public utility's contribution to statewide
greenhouse gas emissions are reduced by 80 percent or more, measured from 2005 to 2030;
new text end

new text begin (2) for a public utility with more than 100,000 but fewer than 200,000 retail electric
customers, the approved resource plan projects that the public utility's contribution to
statewide greenhouse gas emissions are reduced by 80 percent or more, measured from
2005 to 2035;
new text end

new text begin (3) for a public utility with fewer than 100,000 retail electric customers in Minnesota,
the approved resource plan projects that the public utility's contribution to statewide
greenhouse gas emissions are reduced by 65 percent or more, measured from 2005 to 2030;
and
new text end

new text begin (4) the commission determines that the public utility's ownership of clean energy and
carbon-free resources that replace retired facilities is reasonable and in the public interest.
new text end

new text begin (i) Utility purchases or contracts to purchase capacity, energy, or ancillary services from
an independent systems operator, an auction, or other market administered by an independent
systems operator, and whose term is one year or less, are not subject to this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 29.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Preference for local job creation. new text end

new text begin As part of a resource plan filing, a utility
must report on associated local job impacts and the steps the utility and the utility's energy
suppliers and contractors are taking to maximize the availability of construction employment
opportunities for local workers. The commission must consider local job impacts and give
preference to proposals that maximize the creation of construction employment opportunities
for local workers, consistent with the public interest, when evaluating any utility proposal
that involves the selection or construction of facilities used to generate or deliver energy to
serve the utility's customers, including but not limited to an integrated resource plan, a
certificate of need, a power purchase agreement, or commission approval of a new or
refurbished electric generation facility. The commission must, to the maximum extent
possible, prioritize the hiring of workers from communities hosting retiring electric generation
facilities, including workers previously employed at those facilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 30.

Minnesota Statutes 2020, section 216B.2422, subdivision 5, is amended to read:

Subd. 5.

Bidding; exemption from certificate of need proceeding.

(a) A utility may
select resources to meet its projected energy demand through a bidding process approved
or established by the commission. A utility shall use the environmental cost estimates
determined under subdivision 3 deleted text begin in deleted text end new text begin and consider local job impacts when new text end evaluating bids
submitted in a process established under this subdivision.

(b) Notwithstanding any other provision of this section, if an electric power generating
plant, as described in section 216B.2421, subdivision 2, clause (1), is selected in a bidding
process approved or established by the commission, a certificate of need proceeding under
section 216B.243 is not required.

(c) A certificate of need proceeding is also not required for an electric power generating
plant that has been selected in a bidding process approved or established by the commission,
or such other selection process approved by the commission, to satisfy, in whole or in part,
the wind power mandate of section 216B.2423 or the biomass mandate of section 216B.2424.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 31.

Minnesota Statutes 2020, section 216B.2422, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Transmission planning in advance of generation retirement. new text end

new text begin A utility must
identify in a resource plan each nonrenewable energy facility on the utility's system that
has a depreciation term, probable service life, or operating license term that ends within 15
years of the resource plan filing date. For each nonrenewable energy facility identified, the
utility must include in the resource plan an initial plan to: (1) replace the nonrenewable
energy facility; and (2) upgrade any transmission or other grid capabilities needed to support
the retirement of that nonrenewable energy facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 32.

new text begin [216B.2427] NATURAL GAS UTILITY INNOVATION PLANS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

new text begin (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 end

new text begin (e) "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.
new text end

new text begin (f) "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.
new text end

new text begin (g) "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.
new text end

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

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

new text begin (j) "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas
emissions per unit of energy.
new text end

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

new text begin (l) "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.
new text end

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

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

new text begin (o) "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.
new text end

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

new text begin (q) "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:
new text end

new text begin (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
new text end

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

new text begin 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 end

new text begin (r) "Total incremental cost" means the calculation of the following components of a
utility's innovation plan approved by the commission under subdivision 2:
new text end

new text begin (1) the sum of:
new text end

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

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

new text begin (iii) incremental costs to procure innovative resources from third parties;
new text end

new text begin (iv) incremental costs to develop and administer programs; and
new text end

new text begin (v) incremental costs for research and development related to innovative resources;
new text end

new text begin (2) less the sum of:
new text end

new text begin (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;
new text end

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

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

new text begin (s) "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.
new text end

new text begin Subd. 2. new text end

new text begin Innovation plans. new text end

new text begin (a) A natural gas utility may file an innovation plan with
the commission. The utility's plan must include, as applicable, the following components:
new text end

new text begin (1) the innovative resource or resources the utility plans to implement to contribute to
meeting the state's greenhouse gas and renewable energy goals, including those established
in section 216C.05, subdivision 2, clause (3), and section 216H.02, subdivision 1, within
the requirements and limitations set forth in this section;
new text end

new text begin (2) research and development investments related to innovative resources the utility
plans to undertake;
new text end

new text begin (3) total lifecycle greenhouse gas emissions that the utility projects are reduced or avoided
through implementing the plan;
new text end

new text begin (4) a comparison of the estimate in clause (3) to total emissions from natural gas use by
utility customers in 2020;
new text end

new text begin (5) a description of each pilot program included in the plan that is related to the
development or provision of innovative resources, and an estimate of the total incremental
costs to implement each pilot program;
new text end

new text begin (6) the cost-effectiveness of innovative resources calculated from the perspective of the
utility, society, the utility's nonparticipating customers, and the utility's participating
customers compared to other innovative resources that could be deployed to reduce or avoid
the same greenhouse gas emissions targeted for reduction by the utility's proposed innovative
resource;
new text end

new text begin (7) for any pilot program not previously approved as part of the utility's most recent
innovation plan, a third-party analysis of:
new text end

new text begin (i) the lifecycle greenhouse gas emissions intensity of the proposed innovative resources;
and
new text end

new text begin (ii) the forecasted lifecycle greenhouse gas emissions reduced or avoided if the proposed
pilot program is implemented;
new text end

new text begin (8) an explanation of the methodology used by the utility to calculate the lifecycle
greenhouse gas emissions avoided or reduced by each pilot program included in the plan,
including descriptions of how the utility's method deviated, if at all, from the carbon
accounting frameworks established by the commission under section 216B.2428;
new text end

new text begin (9) a discussion of whether the plan supports the development and use of alternative
agricultural products, waste reduction, reuse, or anaerobic digestion of organic waste, and
the recovery of energy from wastewater, and, if it does, a description of the geographic
areas of the state in which the benefits are realized;
new text end

new text begin (10) a description of third-party systems and processes the utility plans to use to:
new text end

new text begin (i) track the innovative resources included in the plan so that environmental benefits
produced by the plan are not claimed for any other program; and
new text end

new text begin (ii) verify the environmental attributes and greenhouse gas emissions intensity of
innovative resources included in the plan;
new text end

new text begin (11) projected local job impacts resulting from implementation of the plan and a
description of steps the utility and the utility's energy suppliers and contractors are taking
to maximize the availability of construction employment opportunities for local workers;
new text end

new text begin (12) a description of how the utility proposes to recover annual total incremental costs
of the plan;
new text end

new text begin (13) steps the utility has taken or proposes to take to reduce the expected cost of the plan
on low- and moderate-income residential customers and to ensure that low- and
moderate-income residential customers benefit from innovative resources included in the
plan;
new text end

new text begin (14) a report on the utility's progress toward implementing the utility's previously
approved innovation plan, if applicable;
new text end

new text begin (15) a report of the utility's progress toward achieving the cost-effectiveness objectives
established by the commission with respect to the utility's previously approved innovation
plan, if applicable; and
new text end

new text begin (16) collections of pilot programs that the utility estimates would, if implemented, provide
approximately 50 percent, 150 percent, and 200 percent of the greenhouse gas reduction or
avoidance benefits of the utility's proposed plan.
new text end

new text begin (b) The commission must approve, modify, or reject a plan. The commission must not
approve an innovation plan unless the commission finds:
new text end

new text begin (1) the size, scope, and scale of the plan produces net benefits under the cost-benefit
framework established by the commission in section 216B.2428;
new text end

new text begin (2) the plan promotes the use of renewable energy resources and reduces or avoids
greenhouse gas emissions at a cost level consistent with subdivision 3;
new text end

new text begin (3) the plan promotes local economic development;
new text end

new text begin (4) the innovative resources included in the plan have a lower lifecycle greenhouse gas
intensity than natural gas produced from conventional geologic sources;
new text end

new text begin (5) the systems used to track and verify the environmental attributes of the innovative
resources included in the plan are reasonable, considering available third-party tracking and
verification systems;
new text end

new text begin (6) the costs and revenues projected under the plan are reasonable in comparison to other
innovative resources the utility could deploy to reduce greenhouse gas emissions, considering
other benefits of the innovative resources included in the plan;
new text end

new text begin (7) the total amount of estimated greenhouse gas emissions reduction or avoidance to
be achieved under the plan is reasonable considering the state's greenhouse gas and renewable
energy goals, including those established in section 216C.05, subdivision 2, clause (3), and
section 216H.02, subdivision 1; customer cost; and the total amount of greenhouse gas
emissions reduction or avoidance achieved under the utility's previously approved plans, if
applicable; and
new text end

new text begin (8) any renewable natural gas purchased by a utility under the plan that is produced from
the anaerobic digestion of manure is certified as being produced at an agricultural livestock
production facility that does not increase the number of animal units at the facility solely
or primarily to produce renewable natural gas for the plan.
new text end

new text begin (c) In seeking to recover costs under a plan approved by the commission under this
section, the utility must demonstrate to the satisfaction of the commission that the actual
total incremental costs incurred to implement the approved innovation plan are reasonable.
Prudently incurred costs under an approved plan, including prudently incurred costs to
obtain the third-party analysis required in paragraph (a), clauses (6) and (7), are recoverable
either:
new text end

new text begin (1) under section 216B.16, subdivision 7, clause (2), via the utility's purchased gas
adjustment;
new text end

new text begin (2) in the utility's next general rate case; or
new text end

new text begin (3) via annual adjustments, provided that after notice and comment the commission
determines that the costs included for recovery through rates are prudently incurred. Annual
adjustments must include a rate of return, income taxes on the rate of return, incremental
property taxes, incremental depreciation expense, and incremental operation and maintenance
expenses. The rate of return must be at the level approved by the commission in the utility's
last general rate case, unless the commission determines that a different rate of return is in
the public interest.
new text end

new text begin (d) Upon approval of a utility's plan, the commission shall establish cost-effectiveness
objectives for the plan based on the cost-benefit test for innovative resources developed
under section 216B.2428. The cost-effectiveness objective for each plan must demonstrate
incremental progress from the previously approved plan's cost-effectiveness objective.
new text end

new text begin (e) A utility operating under an approved plan must file annual reports to the commission
on work completed under the plan, including:
new text end

new text begin (1) costs incurred;
new text end

new text begin (2) lifecycle greenhouse gas emissions reductions or avoidance achieved;
new text end

new text begin (3) a description of the processes used to track and verify the innovative resources and
to retire the associated environmental attributes;
new text end

new text begin (4) an assessment of the degree to which the lifecycle greenhouse gas accounting
methodology is consistent with current science;
new text end

new text begin (5) the economic impact of the plan, including job creation;
new text end

new text begin (6) the utility's progress toward achieving the cost-effectiveness objectives established
by the commission; and
new text end

new text begin (7) modifications to elements of the plan proposed by the utility.
new text end

new text begin (f) When evaluating a utility's annual report, the commission may:
new text end

new text begin (1) approve the continuation of a pilot program included in the plan, with or without
modifications;
new text end

new text begin (2) require the utility to file a new or modified pilot program or plan; or
new text end

new text begin (3) disapprove the continuation of a pilot program or plan.
new text end

new text begin (g) An innovation plan has a term of five years. A subsequent innovation plan must be
filed no later than four years after the previous plan was approved by the commission so
that, if approved, the new plan takes effect immediately upon expiration of the previous
plan.
new text end

new text begin (h) For purposes of this section and the commission's lifecycle carbon accounting
framework and cost-benefit test for innovative resources under section 216B.2428, any
required analysis of lifecycle greenhouse gas emissions reductions or avoidance, or lifecycle
greenhouse gas intensity:
new text end

new text begin (1) must include but is not limited to estimates of:
new text end

new text begin (i) avoided or reduced greenhouse gas emissions attributable to utility operations;
new text end

new text begin (ii) avoided or reduced greenhouse gas emissions from the production, processing, and
transmission of fuels prior to receipt by the utility; and
new text end

new text begin (iii) avoided or reduced greenhouse gas emissions at the point of end use;
new text end

new text begin (2) must not count any unit of greenhouse gas emissions avoidance or reduction more
than once; and
new text end

new text begin (3) may, where direct measurement is not technically or economically feasible, rely on
emissions factors, default values, or engineering estimates from a publicly accessible source
accepted by a federal or state government agency, provided that the emissions factors,
default values, or engineering estimates can be demonstrated to the satisfaction of the
commission to produce a reasonable estimate of greenhouse gas emissions reductions,
avoidance, or intensity.
new text end

new text begin (i) Strategic electrification implemented in a plan approved by the commission under
this section is not eligible for a financial incentive under section 216B.241, subdivision 2c.
Electric end-use equipment installed under a plan approved by the commission under this
section is the exclusive property of the building owner.
new text end

new text begin Subd. 3. new text end

new text begin Limitations on utility customer costs. new text end

new text begin (a) Except as provided in paragraph
(b), the first innovation plan submitted to the commission by a utility must not propose, and
the commission must not approve, annual total incremental costs exceeding the lesser of:
new text end

new text begin (1) 1.75 percent of the utility's gross operating revenues from natural gas service provided
in Minnesota at the time of plan filing; or
new text end

new text begin (2) $20 per nonexempt customer, based on the proposed annual total incremental costs
for each year of the plan divided by the total number of nonexempt utility customers.
new text end

new text begin (b) The commission may approve additional annual costs up to the lesser of:
new text end

new text begin (1) an additional 0.25 percent of the utility's gross operating revenues from service
provided in Minnesota at the time of plan filing; or
new text end

new text begin (2) $5 per nonexempt customer, based on the proposed annual total incremental costs
for each year of the plan divided by the total number of nonexempt utility customers of
incremental costs, provided that the additional costs under this paragraph are associated
exclusively with the purchase of renewable natural gas produced from:
new text end

new text begin (i) food waste diverted from a landfill;
new text end

new text begin (ii) a municipal wastewater treatment system; or
new text end

new text begin (iii) an organic mixture that includes at least 15 percent, by volume, sustainably harvested
native prairie grasses or locally appropriate cover crops, as determined by a local soil and
water conservation district or the United States Department of Agriculture, Natural Resources
Conservation Service.
new text end

new text begin (c) If the commission determines that the utility has successfully achieved the
cost-effectiveness objectives established in the utility's most recently approved innovation
plan, except as provided in paragraph (d), the next subsequent plan filed by the utility under
this section is subject to the provisions of paragraphs (a) and (b), except that:
new text end

new text begin (1) the cap on total incremental costs in paragraph (a) with respect to the second plan is
the lesser of:
new text end

new text begin (i) 2.75 percent of the utility's gross operating revenues from natural gas service in
Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $35 per nonexempt customer; and
new text end

new text begin (2) the cap on additional costs in paragraph (b) is the lesser of:
new text end

new text begin (i) an additional 0.75 percent of the utility's gross operating revenues from natural gas
service in Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $10 per nonexempt customer.
new text end

new text begin (d) If the commission determines that the utility has successfully achieved the
cost-effectiveness objectives established in two of the same utility's previously approved
innovation plans, all subsequent plans filed by the utility under this section are subject to
the provisions of paragraphs (a) and (b), except that:
new text end

new text begin (1) the cap on total incremental costs in paragraph (a) with respect to the third or
subsequent plan is the lesser of:
new text end

new text begin (i) four percent of the utility's gross operating revenues from natural gas service in
Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $50 per nonexempt customer; and
new text end

new text begin (2) the cap on additional costs in paragraph (b) is the lesser of:
new text end

new text begin (i) an additional 1.5 percent of the utility's gross operating revenues from natural gas
service in Minnesota at the time of the plan's filing; or
new text end

new text begin (ii) $20 per nonexempt customer.
new text end

new text begin (e) For purposes of paragraphs (a) to (d), the limits on annual total incremental costs
must be calculated at the time the innovation plan is filed as the average of the utility's
forecasted total incremental costs over the five-year term of the plan.
new text end

new text begin (f) A large customer facility that the commissioner of commerce has exempted from a
utility's conservation improvement program under section 216B.241, subdivision 1a,
paragraph (b), is exempt from the utility's innovation plan offerings and must not be charged
any costs incurred to implement an approved innovation plan unless the large customer
facility files a request with the commissioner to be included in a utility's innovation plan.
The commission may prohibit large customer facilities exempt from innovation plan costs
from participating in innovation plans.
new text end

new text begin (g) A utility filing an innovation plan may include annual spending and investments on
research and development of up to ten percent of the proposed total incremental costs related
to innovative plans, subject to the limitations in paragraphs (a) to (e).
new text end

new text begin (h) For purposes of this subdivision, gross operating revenues do not include revenues
from large customer facilities exempt from innovation plan costs.
new text end

new text begin Subd. 4. new text end

new text begin Innovative resources procured outside of an innovation plan. new text end

new text begin (a) Without
filing an innovation plan, a natural gas utility may propose and the commission may approve
cost recovery for:
new text end

new text begin (1) innovative resources acquired to satisfy a commission-approved green tariff program
that allows customers to choose to meet a portion of the customers' energy needs through
innovative resources; or
new text end

new text begin (2) utility expenditures for innovative resources procured at a cost that is within five
percent of the average of Ventura and Demarc index prices for natural gas produced from
conventional geologic sources at the time of the transaction per unit of natural gas that the
innovative resource displaces.
new text end

new text begin (b) An approved green tariff program must include provisions to ensure that reasonable
systems are used to track and verify the environmental attributes of innovative resources
included in the program, taking into account any available third-party tracking or verification
systems.
new text end

new text begin (c) For the purposes of this subdivision, "Ventura and Demarc index prices" means the
daily index price of wholesale natural gas sold at the Northern Natural Gas Company's
Ventura trading hub in Hancock County, Iowa, and its demarcation point in Clifton, Kansas.
new text end

new text begin Subd. 5. new text end

new text begin Power-to-ammonia. new text end

new text begin When determining whether to approve a power-to-ammonia
pilot program as part of an innovative plan, the commission must consider:
new text end

new text begin (1) the risk of exposing any person to unhealthy concentrations of ammonia;
new text end

new text begin (2) the risk that any home or business might be affected by ammonia odors;
new text end

new text begin (3) whether the greenhouse gas emissions addressed by the proposed power-to-ammonia
project could be more efficiently addressed using power-to-hydrogen; and
new text end

new text begin (4) whether the power-to-ammonia project achieves lifecycle greenhouse gas emissions
reductions in the agricultural sector more effectively than power-to-hydrogen.
new text end

new text begin Subd. 6. new text end

new text begin Thermal energy audits. new text end

new text begin The first innovation plan filed under this section by
a utility with more than 800,000 customers must include a pilot program to provide thermal
energy audits to small- and medium-sized business in order to identify opportunities to
reduce or avoid greenhouse gas emissions from natural gas use. The pilot program must
provide incentives for businesses to implement recommendations made by the audit. The
utility must develop criteria to identify businesses that achieve significant emissions
reductions by implementing audit recommendations and must recognize the businesses as
thermal energy leaders.
new text end

new text begin Subd. 7. new text end

new text begin Innovative resources for certain industrial processes. new text end

new text begin The first innovation
plan filed under this section by a utility with more than 800,000 customers must include a
pilot program to provide innovative resources to industrial facilities whose manufacturing
processes, for technical reasons, are not amenable to electrification. A large customer facility
exempt from innovation plan offerings under subdivision 3, paragraph (f), is not eligible to
participate in the pilot program under this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Electric cold climate air-source heat pumps. new text end

new text begin (a) The first innovation plan
filed under this section by a utility with more than 800,000 customers must include a pilot
program that facilitates deep energy retrofits and the installation of cold climate electric
air-source heat pumps in existing residential homes that have natural gas heating systems.
new text end

new text begin (b) For purposes of this subdivision, "deep energy retrofit" means the installation of any
measure or combination of measures, including air sealing and addressing thermal bridges,
that under normal weather and operating conditions can reasonably be expected to reduce
a building's calculated design load to ten or fewer British Thermal Units per hour per square
foot of conditioned floor area. Deep energy retrofit does not include the installation of
photovoltaic electric generation equipment, but may include the installation of a qualifying
solar thermal energy project.
new text end

new text begin Subd. 9. new text end

new text begin District energy. new text end

new text begin The first innovation plan filed under this section by a utility
with more than 800,000 customers must include a pilot program to facilitate the development,
expansion, or modification of district energy systems in Minnesota. This subdivision does
not require the utility to propose, construct, maintain, or own district energy infrastructure.
new text end

new text begin Subd. 10. new text end

new text begin Throughput goal. new text end

new text begin It is the goal of the state of Minnesota that through the
Natural Gas Innovation Act and Conservation Improvement Program, utilities reduce the
overall amount of natural gas produced from conventional geologic sources delivered to
customers.
new text end

new text begin Subd. 11. new text end

new text begin Utility system report and forecasts. new text end

new text begin (a) A public utility filing an innovation
plan shall concurrently submit a report to the commission containing the following
information:
new text end

new text begin (1) methane gas emissions attributed to venting or leakage across the utility's system,
including emissions information reported to the Environmental Protection Agency and gas
leaks considered to be hazardous or nonhazardous, and a narrative description of the utility's
expectations regarding the cost and performance of the utility's leakage reduction programs
over the next five years;
new text end

new text begin (2) total system greenhouse gas emissions and greenhouse gas emissions projected to
be reduced or avoided through innovative resource investments and energy conservation
investments, and a narrative description of the costs required to achieve the reductions over
the next five years through investments in innovative resources and energy conservation;
new text end

new text begin (3) the quantity of pipe in service in the utility's natural gas network in Minnesota, by
material, size, coating, operating pressure, and decade of installation, based on utility
information reported to the United States Department of Transportation;
new text end

new text begin (4) a narrative description of other significant equipment owned and operated by the
utility through which gas is transported or stored, including regulator stations and storage
facilities, a discussion of the function of the equipment, how the equipment is maintained,
and utility efforts to prevent leaks from the equipment;
new text end

new text begin (5) a five-year forecast of fuel prices and anticipated purchases including, as available,
natural gas produced from conventional geologic sources, renewable natural gas, and
alternative fuels;
new text end

new text begin (6) a five-year forecast of potential capital investments by the utility in existing
infrastructure and new infrastructure for natural gas produced from conventional geologic
sources and for innovative resources; and
new text end

new text begin (7) an inventory of the utility's current financial incentive programs for natural gas,
including rebates and incentives offered for new and existing buildings and a description
of the utility's projected changes in incentives the utility is likely to implement over the next
five years.
new text end

new text begin (b) Information filed under this subdivision is intended to be used by the commission
to evaluate a utility's innovation plan in the context of the utility's other planned investments
and activities with respect to natural gas produced from conventional geologic sources.
Information filed under this subdivision must not be used by the commission to set or limit
utility rate recovery.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2022.
new text end

Sec. 33.

new text begin [216B.2428] LIFECYCLE GREENHOUSE GAS EMISSIONS
ACCOUNTING FRAMEWORK; COST-BENEFIT TEST FOR INNOVATIVE
RESOURCES.
new text end

new text begin By June 1, 2022, the commission shall, by order, issue frameworks the commission must
use to calculate lifecycle greenhouse gas emissions intensities of each innovative resource,
as follows:
new text end

new text begin (1) a general framework to compare the lifecycle greenhouse gas emissions intensities
of power-to-hydrogen, strategic electrification, renewable natural gas, district energy, energy
efficiency, biogas, carbon capture, and power-to-ammonia; and
new text end

new text begin (2) a cost-benefit analytic framework to be applied to innovative resources and innovation
plans filed under section 216B.2427 that the commission must use to compare the
cost-effectiveness of those resources and plans. This analytic framework must take into
account:
new text end

new text begin (i) the total incremental cost of the plan or resource and the lifecycle greenhouse gas
emissions avoided or reduced by the innovative resource or plan, using the framework
developed under clause (1);
new text end

new text begin (ii) additional economic costs and benefits, programmatic costs and benefits, additional
environmental costs and benefits, and other costs or benefits that may be expected under a
plan; and
new text end

new text begin (iii) baseline cost-effectiveness criteria against which an innovation plan should be
compared. When establishing baseline criteria, the commission must take into account
options available to reduce lifecycle greenhouse gas emissions from natural gas end uses
and the goals in section 216C.05, subdivision 2, clause (3), and section 216H.02, subdivision
1. To the maximum reasonable extent, the cost-benefit framework must be consistent with
environmental cost values established under section 216B.2422, subdivision 3, and other
calculations of the social value of greenhouse gas emissions reductions used by the
commission. The commission may update frameworks established under this section as
necessary.
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. 34.

new text begin [216B.247] BENEFICIAL BUILDING ELECTRIFICATION.
new text end

new text begin (a) It is the goal of the state of Minnesota to promote energy end uses powered by
electricity in the building sector that result in a net reduction in greenhouse gas emissions
and improvements to public health, consistent with the goal established under section
216H.02, subdivision 1.
new text end

new text begin (b) To the maximum reasonable extent, the implementation of beneficial electrification
in the building sector should prioritize investment and activity in low-income and
under-resourced communities, maintain or improve the quality of electricity service,
maximize customer savings, improve the integration of renewable and carbon-free resources,
and prioritize job creation.
new text end

Sec. 35.

new text begin [216B.248] PUBLIC UTILITY BENEFICIAL BUILDING
ELECTRIFICATION.
new text end

new text begin (a) A public utility may submit to the commission a plan to promote energy end uses
powered by electricity within the public utility's service area in residential and commercial
buildings. To the maximum reasonable extent, a plan must:
new text end

new text begin (1) maximize consumer savings over the lifetime of the investment;
new text end

new text begin (2) mitigate cost and avoid duplication with the utility's conservation improvement plan
under section 216B.241;
new text end

new text begin (3) maintain or enhance the reliability of electricity service;
new text end

new text begin (4) quantify the acres of land needed for new generation, transmission, and distribution
facilities to provide the additional electricity required under the plan;
new text end

new text begin (5) maintain or enhance public health and safety when temperatures fall below 25 degrees
below zero Fahrenheit;
new text end

new text begin (6) support the integration of renewable and carbon-free resources;
new text end

new text begin (7) encourage demand response and load shape management opportunities and the use
of energy storage that reduce overall system costs;
new text end

new text begin (8) prioritize electrification projects in economically disadvantaged communities;
new text end

new text begin (9) consider cost protections for low- and moderate-income customers;
new text end

new text begin (10) produce a net reduction in greenhouse gas emissions, based on the electricity
generation portfolio of the public utility proposing the plan, or based on the electricity
serving the end-use in the event that a public utility providing retail natural gas service
proposes the plan, either over the lifetime of the conversion or by 2050, whichever is sooner;
and
new text end

new text begin (11) consider local job impacts and give preference to proposals that maximize the
creation of construction employment opportunities for local workers.
new text end

new text begin (b) The commission must approve, reject, or modify the public utility's plan, consistent
with the public interest. Plans approved by the commission under this subdivision are eligible
for cost recovery under section 216B.1645.
new text end

Sec. 36.

new text begin [216B.491] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 216B.491 to 216B.4991, the terms
defined in this subdivision have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Ancillary agreement. new text end

new text begin "Ancillary agreement" means any bond, insurance policy,
letter of credit, reserve account, surety bond, interest rate lock or swap arrangement, liquidity
or credit support arrangement, or other financial arrangement entered into in connection
with energy transition bonds that is designed to promote the credit quality and marketability
of energy transition bonds or to mitigate the risk of an increase in interest rates.
new text end

new text begin Subd. 3. new text end

new text begin Assignee. new text end

new text begin "Assignee" means any person to which an interest in energy transition
property is sold, assigned, transferred, or conveyed, other than as security, and any successor
to or subsequent assignee of the person.
new text end

new text begin Subd. 4. new text end

new text begin Bondholder. new text end

new text begin "Bondholder" means any holder or owner of energy transition
bonds.
new text end

new text begin Subd. 5. new text end

new text begin Clean energy resource. new text end

new text begin "Clean energy resource" means:
new text end

new text begin (1) renewable energy, as defined in section 216B.2422, subdivision 1;
new text end

new text begin (2) an energy storage system; or
new text end

new text begin (3) energy efficiency and load management, as defined in section 216B.241, subdivision
1.
new text end

new text begin Subd. 6. new text end

new text begin Customer. new text end

new text begin "Customer" means a person who takes electric service from an
electric utility for consumption of electricity in Minnesota.
new text end

new text begin Subd. 7. new text end

new text begin Electric generating facility. new text end

new text begin "Electric generating facility" means a facility that
generates electricity, is owned in whole or in part by an electric utility, and is used to serve
customers in Minnesota. Electric generating facility includes any interconnected infrastructure
or facility used to transmit or deliver electricity to Minnesota customers.
new text end

new text begin Subd. 8. new text end

new text begin Electric utility. new text end

new text begin "Electric utility" means an electric utility providing electricity
to Minnesota customers, including the electric utility's successors or assignees.
new text end

new text begin Subd. 9. new text end

new text begin Energy storage system. new text end

new text begin "Energy storage system" means a commercially
available technology that uses mechanical, chemical, or thermal processes to:
new text end

new text begin (1) store energy and deliver the stored energy for use at a later time; or
new text end

new text begin (2) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time.
new text end

new text begin Subd. 10. new text end

new text begin Energy transition bonds. new text end

new text begin "Energy transition bonds" means low-cost corporate
securities, including but not limited to senior secured bonds, debentures, notes, certificates
of participation, certificates of beneficial interest, certificates of ownership, or other evidences
of indebtedness or ownership that have a scheduled maturity of no longer than 30 years and
a final legal maturity date that is not later than 32 years from the issue date, that are rated
AA or Aa2 or better by a major independent credit rating agency at the time of issuance,
and that are issued by an electric utility or an assignee under a financing order.
new text end

new text begin Subd. 11. new text end

new text begin Energy transition charge. new text end

new text begin "Energy transition charge" means a charge that:
new text end

new text begin (1) is imposed on all customer bills by an electric utility that is the subject of a financing
order, or the electric utility's successors or assignees;
new text end

new text begin (2) is separate from the utility's base rates; and
new text end

new text begin (3) provides a source of revenue solely to repay, finance, or refinance energy transition
costs.
new text end

new text begin Subd. 12. new text end

new text begin Energy transition costs. new text end

new text begin "Energy transition costs" means:
new text end

new text begin (1) as approved by the commission in a financing order issued under section 216B.492,
the pretax costs that the electric utility has incurred or will incur that are caused by, associated
with, or remain as a result of retiring or replacing electric generating facilities serving
Minnesota retail customers; and
new text end

new text begin (2) pretax costs that an electric utility has previously incurred related to the closure or
replacement of electric infrastructure or facilities occurring before the effective date of this
act.
new text end

new text begin Energy transition costs do not include any monetary penalty, fine, or forfeiture assessed
against an electric utility by a government agency or court under a federal or state
environmental statute, rule, or regulation.
new text end

new text begin Subd. 13. new text end

new text begin Energy transition property. new text end

new text begin "Energy transition property" means:
new text end

new text begin (1) all rights and interests of an electric utility or successor or assignee of an electric
utility under a financing order for the right to impose, bill, collect, receive, and obtain
periodic adjustments to energy transition charges authorized under a financing order issued
by the commission; and
new text end

new text begin (2) all revenue, collections, claims, rights to payments, payments, money, or proceeds
arising from the rights and interests specified in clause (1), regardless of whether any are
commingled with other revenue, collections, rights to payment, payments, money, or
proceeds.
new text end

new text begin Subd. 14. new text end

new text begin Energy transition revenue. new text end

new text begin "Energy transition revenue" means revenue,
receipts, collections, payments, money, claims, or other proceeds arising from energy
transition property.
new text end

new text begin Subd. 15. new text end

new text begin Financing costs. new text end

new text begin "Financing costs" means:
new text end

new text begin (1) principal, interest, and redemption premiums that are payable on energy transition
bonds;
new text end

new text begin (2) payments required under an ancillary agreement and amounts required to fund or
replenish a reserve account or other accounts established under the terms of any indenture,
ancillary agreement, or other financing document pertaining to the bonds;
new text end

new text begin (3) other demonstrable costs related to issuing, supporting, repaying, refunding, and
servicing the bonds, including but not limited to servicing fees, accounting and auditing
fees, trustee fees, legal fees, consulting fees, financial advisor fees, administrative fees,
placement and underwriting fees, capitalized interest, rating agency fees, stock exchange
listing and compliance fees, security registration fees, filing fees, information technology
programming costs, and any other demonstrable costs necessary to otherwise ensure and
guarantee the timely payment of the bonds or other amounts or charges payable in connection
with the bonds;
new text end

new text begin (4) taxes and license fees imposed on the revenue generated from collecting an energy
transition charge;
new text end

new text begin (5) state and local taxes, including franchise, sales and use, and other taxes or similar
charges, including but not limited to regulatory assessment fees, whether paid, payable, or
accrued; and
new text end

new text begin (6) costs incurred by the commission to hire and compensate additional temporary staff
needed to perform the commission's responsibilities under this section and, in accordance
with section 216B.494, to engage specialized counsel and expert consultants experienced
in securitized electric utility ratepayer-backed bond financing similar to energy transition
bonds.
new text end

new text begin Subd. 16. new text end

new text begin Financing order. new text end

new text begin "Financing order" means an order issued by the commission
under section 216B.492 that authorizes an applicant to (1) issue energy transition bonds in
one or more series, (2) impose, charge, and collect energy transition charges, and (3) create
energy transition property.
new text end

new text begin Subd. 17. new text end

new text begin Financing party. new text end

new text begin "Financing party" means a holder of energy transition bonds
and a trustee, collateral agent, a party under an ancillary agreement, or any other person
acting for the benefit of energy transition bondholders.
new text end

new text begin Subd. 18. new text end

new text begin Nonbypassable. new text end

new text begin "Nonbypassable" means that the payment of an energy
transition charge required to repay bonds and related costs may not be avoided by any retail
customer located within an electric utility service area.
new text end

new text begin Subd. 19. new text end

new text begin Pretax costs. new text end

new text begin "Pretax costs" means costs approved by the commission,
including but not limited to:
new text end

new text begin (1) unrecovered capitalized costs of retired or replaced electric generating facilities;
new text end

new text begin (2) costs to decommission and restore the site of an electric generating facility;
new text end

new text begin (3) other applicable capital and operating costs, accrued carrying charges, deferred
expenses, reductions for applicable insurance, and salvage proceeds; and
new text end

new text begin (4) costs to retire any existing indebtedness, fees, costs, and expenses to modify existing
debt agreements, or for waivers or consents related to existing debt agreements.
new text end

new text begin Subd. 20. new text end

new text begin Successor. new text end

new text begin "Successor" means a legal entity that succeeds by operation of law
to the rights and obligations of another legal entity as a result of bankruptcy, reorganization,
restructuring, other insolvency proceeding, merger, acquisition, consolidation, or sale or
transfer of assets.
new text end

Sec. 37.

new text begin [216B.492] FINANCING ORDER.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin (a) An electric utility that has received approval from the
commission to retire an electric generating facility owned by the utility prior to the full
depreciation of the electric generating facility's value may file an application with the
commission for the issuance of a financing order to enable the utility to recover energy
transition costs through the issuance of energy transition bonds under this section.
new text end

new text begin (b) The application must include all of the following information:
new text end

new text begin (1) a description of the electric generating facility to be retired;
new text end

new text begin (2) the undepreciated value remaining in the electric generating facility that is proposed
to be financed through the issuance of bonds under sections 216B.491 to 216B.499, and
the method used to calculate the amount;
new text end

new text begin (3) the estimated savings to electric utility customers if the financing order is issued as
requested in the application, calculated by comparing the costs to customers that are expected
to result from implementing the financing order and the estimated costs associated with
implementing traditional electric utility financing mechanisms with respect to the same
undepreciated balance, expressed in net present value terms;
new text end

new text begin (4) an estimated schedule for the electric generating facility's retirement;
new text end

new text begin (5) a description of the nonbypassable energy transition charge electric utility customers
would be required to pay in order to fully recover financing costs, and the method and
assumptions used to calculate the amount;
new text end

new text begin (6) a proposed methodology for allocating the revenue requirement for the energy
transition charge among the utility's customer classes;
new text end

new text begin (7) a description of a proposed adjustment mechanism to be implemented when necessary
to correct any overcollection or undercollection of energy transition charges, in order to
complete payment of scheduled principal and interest on energy transition bonds and other
financing costs in a timely fashion;
new text end

new text begin (8) a memorandum with supporting exhibits from a securities firm that is experienced
in the marketing of bonds and that is approved by the commissioner of management and
budget indicating the proposed issuance satisfies the current published AA or Aa2 or higher
rating or equivalent rating criteria of at least one nationally recognized securities rating
organization for issuances similar to the proposed energy transition bonds;
new text end

new text begin (9) an estimate of the timing of the issuance and the term of the energy transition bonds,
or series of bonds, provided that the scheduled final maturity for each bond issuance does
not exceed 30 years;
new text end

new text begin (10) identification of plans to sell, assign, transfer, or convey, other than as a security,
interest in energy transition property, including identification of an assignee, and
demonstration that the assignee is a financing entity wholly owned, directly or indirectly,
by the electric utility;
new text end

new text begin (11) identification of ancillary agreements that may be necessary or appropriate;
new text end

new text begin (12) one or more alternative financing scenarios in addition to the preferred scenario
contained in the application; and
new text end

new text begin (13) a workforce transition plan that includes estimates of:
new text end

new text begin (i) the number of workers currently employed at the electric generating facility to be
retired by the electric utility and, separately reported, by contractors, including workers that
directly deliver fuel to the electric generating facility;
new text end

new text begin (ii) the number of workers identified in item (i) who, as a result of the retirement of the
electric generating facility:
new text end

new text begin (A) are offered employment by the electric utility in the same job classification;
new text end

new text begin (B) are offered employment by the electric utility in a different job classification;
new text end

new text begin (C) are not offered employment by the electric utility;
new text end

new text begin (D) are offered early retirement by the electric utility; and
new text end

new text begin (E) retire as planned; and
new text end

new text begin (iii) if the electric utility plans to replace the retiring generating facility with a new
electric generating facility owned by the electric utility, the number of jobs at the new
generating facility outsourced to contractors or subcontractors; and
new text end

new text begin (14) a plan to replace the retired electric generating facilities with other electric generating
facilities owned by the utility or power purchase agreements that meet the requirements of
subdivision 3, clause (15), and a schedule reflecting that the replacement resources are
operational or available at the time the retiring electric generating facilities cease operation.
new text end

new text begin Subd. 2. new text end

new text begin Findings. new text end

new text begin After providing notice and holding a public hearing on an application
filed under subdivision 1, the commission may issue a financing order if the commission
finds that:
new text end

new text begin (1) the energy transition costs described in the application related to the retirement of
electric generation facilities are reasonable;
new text end

new text begin (2) the proposed issuance of energy transition bonds and the imposition and collection
of energy transition charges:
new text end

new text begin (i) are just and reasonable;
new text end

new text begin (ii) are consistent with the public interest;
new text end

new text begin (iii) constitute a prudent and reasonable mechanism to finance the energy transition costs
described in the application; and
new text end

new text begin (iv) provide tangible and quantifiable benefits to customers that are substantially greater
than the benefits that would have been achieved absent the issuance of energy transition
bonds; and
new text end

new text begin (3) the proposed structuring, marketing, and pricing of the energy transition bonds:
new text end

new text begin (i) significantly lower overall costs to customers or significantly mitigate rate impacts
to customers relative to traditional methods of financing; and
new text end

new text begin (ii) achieve the maximum net present value of customer savings, as determined by the
commission in a financing order, consistent with market conditions at the time of sale and
the terms of the financing order.
new text end

new text begin Subd. 3. new text end

new text begin Contents. new text end

new text begin (a) A financing order issued under this section must:
new text end

new text begin (1) determine the maximum amount of energy transition costs that may be financed from
proceeds of energy transition bonds issued pursuant to the financing order;
new text end

new text begin (2) describe the proposed customer billing mechanism for energy transition charges and
include a finding that the mechanism is just and reasonable;
new text end

new text begin (3) describe the financing costs that may be recovered through energy transition charges
and the period over which the costs may be recovered, which must end no earlier than the
date of final legal maturity of the energy transition bonds;
new text end

new text begin (4) describe the energy transition property that is created and that may be used to pay
and secure the payment of the energy transition bonds and financing costs authorized in the
financing order;
new text end

new text begin (5) authorize the electric utility to finance energy transition costs through the issuance
of one or more series of energy transition bonds. An electric utility is not required to secure
a separate financing order for each issuance of energy transition bonds or for each scheduled
phase of the retirement or replacement of electric generating facilities approved in the
financing order;
new text end

new text begin (6) include a formula-based mechanism that must be used to make expeditious periodic
adjustments to the energy transition charge authorized by the financing order that are
necessary to correct for any overcollection or undercollection, or to otherwise guarantee
the timely payment of energy transition bonds, financing costs, and other required amounts
and charges payable in connection with energy transition bonds;
new text end

new text begin (7) specify the degree of flexibility afforded to the electric utility in establishing the
terms and conditions of the energy transition bonds, including but not limited to repayment
schedules, expected interest rates, and other financing costs;
new text end

new text begin (8) specify that the energy transition bonds must be issued as soon as feasible following
issuance of the financing order;
new text end

new text begin (9) require the electric utility, at the same time as energy transition charges are initially
collected and independent of the schedule to close and decommission the electric generating
facility, to remove the electric generating facility to be retired from the utility's rate base
and commensurately reduce the utility's base rates;
new text end

new text begin (10) specify a future ratemaking process to reconcile any difference between the projected
pretax costs included in the amount financed by energy transition bonds and the final actual
pretax costs incurred by the electric utility to retire or replace the electric generating facility;
new text end

new text begin (11) specify information regarding bond issuance and repayments, financing costs,
energy transaction charges, energy transition property, and related matters that the electric
utility is required to provide to the commission on a schedule determined by the commission;
new text end

new text begin (12) allow and may require the creation of an electric utility's energy transition property
to be conditioned on, and occur simultaneously with, the sale or other transfer of the energy
transition property to an assignee and the pledge of the energy transition property to secure
the energy transition bonds;
new text end

new text begin (13) ensure that the structuring, marketing, and pricing of energy transition bonds result
in the lowest securitization bond charges and maximize net present value customer savings,
consistent with market conditions and the terms of the financing order;
new text end

new text begin (14) specify that the electric utility is prohibited from, after the electric generating
facilities subject to the finance order are removed from the electric utility's base rate:
new text end

new text begin (i) operating the electric generating facilities; or
new text end

new text begin (ii) selling the electric generating facilities to another entity to be operated as electric
generating facilities; and
new text end

new text begin (15) specify that the electric utility must send a payment from energy transition bond
proceeds equal to 15 percent of the net present value of electric utility cost savings estimated
by the commission under subdivision 2, clause (3), item (ii), to the commissioner of
employment and economic development for deposit in the energy worker transition account
established in section 216B.4991, and that the balance of the proceeds:
new text end

new text begin (i) must not be used to acquire, construct, finance, own, operate, or purchase energy
from an electric generating facility that is not powered by a clean energy resource; and
new text end

new text begin (ii) may be used to construct, finance, operate, own, or purchase energy from, an electric
generating facility that complies with item (i), under conditions determined by the
commission, including the capacity of generating assets, the estimated date the asset is
placed into service, and any other factors deemed relevant by the commission, taking into
account the electric utility's resource plan most recently approved by the commission under
section 216B.2422.
new text end

new text begin (b) A financing order issued under this section may:
new text end

new text begin (1) include conditions different from those requested in the application that the
commission determines are necessary to:
new text end

new text begin (i) promote the public interest; and
new text end

new text begin (ii) maximize the financial benefits or minimize the financial risks of the transaction to
customers and to directly impacted Minnesota workers and communities; and
new text end

new text begin (2) specify the selection of one or more underwriters of the energy transition bonds.
new text end

new text begin Subd. 4. new text end

new text begin Duration; irrevocability; subsequent order. new text end

new text begin (a) A financing order remains
in effect until the energy transition bonds issued under the financing order and all financing
costs related to the bonds have been paid in full.
new text end

new text begin (b) A financing order remains in effect and unabated notwithstanding the bankruptcy,
reorganization, or insolvency of the electric utility to which the financing order applies or
any affiliate, successor, or assignee of the electric utility.
new text end

new text begin (c) Subject to judicial review as provided for in section 216B.52, a financing order is
irrevocable and is not reviewable by future commissions. The commission may not reduce,
impair, postpone, or terminate energy transition charges approved in a financing order, or
impair energy transition property or the collection or recovery of energy transition revenue.
new text end

new text begin (d) Notwithstanding paragraph (c), the commission may, on the commission's own
motion or at the request of an electric utility or any other person, commence a proceeding
and issue a subsequent financing order that provides for refinancing, retiring, or refunding
energy transition bonds issued under the original financing order if:
new text end

new text begin (1) the commission makes all of the findings specified in subdivision 2 with respect to
the subsequent financing order; and
new text end

new text begin (2) the modification contained in the subsequent financing order does not in any way
impair the covenants and terms of the energy transition bonds to be refinanced, retired, or
refunded.
new text end

new text begin Subd. 5. new text end

new text begin Effect on commission jurisdiction. new text end

new text begin (a) Except as provided in paragraph (b),
the commission, in exercising the powers and carrying out the duties under this section, is
prohibited from:
new text end

new text begin (1) considering energy transition bonds issued under this section to be debt of the electric
utility other than for income tax purposes, unless it is necessary to consider the energy
transition bonds to be debt in order to achieve consistency with prevailing utility debt rating
methodologies;
new text end

new text begin (2) considering the energy transition charges paid under the financing order to be revenue
of the electric utility;
new text end

new text begin (3) considering the energy transition costs or financing costs specified in the financing
order to be the regulated costs or assets of the electric utility; or
new text end

new text begin (4) determining any prudent action taken by an electric utility that is consistent with the
financing order is unjust or unreasonable.
new text end

new text begin (b) Nothing in this subdivision:
new text end

new text begin (1) affects the authority of the commission to apply or modify any billing mechanism
designed to recover energy transition charges;
new text end

new text begin (2) prevents or precludes the commission from investigating an electric utility's
compliance with the terms and conditions of a financing order and requiring compliance
with the financing order; or
new text end

new text begin (3) prevents or precludes the commission from imposing regulatory sanctions against
an electric utility for failure to comply with the terms and conditions of a financing order
or the requirements of this section.
new text end

new text begin (c) The commission is prohibited from refusing to allow the recovery of any costs
associated with the retirement or replacement of electric generating facilities by an electric
utility solely because the electric utility has elected to finance those activities through a
financing mechanism other than energy transition bonds.
new text end

Sec. 38.

new text begin [216B.493] POST-ORDER COMMISSION DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Financing cost review. new text end

new text begin Within 120 days after the date energy transition
bonds are issued, an electric utility subject to a financing order must file with the commission
the actual initial and ongoing financing costs, the final structure and pricing of the energy
transition bonds, and the actual energy transition charge. The commission must review the
prudence of the electric utility's actions to determine whether the actual financing costs are
the lowest that could reasonably be achieved given the terms of the financing order and
market conditions prevailing at the time of the bond's issuance.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin If the commission determines that an electric utility's actions
under this section are not prudent or are inconsistent with the financing order, the commission
may apply any remedies available, provided that any remedy applied may not directly or
indirectly impair the security for the energy transition bonds.
new text end

Sec. 39.

new text begin [216B.494] USE OF OUTSIDE EXPERTS.
new text end

new text begin (a) In carrying out the duties under this section, the commission may:
new text end

new text begin (1) contract with outside consultants and counsel experienced in securitized electric
utility customer-backed bond financing similar to energy transition bonds; and
new text end

new text begin (2) hire and compensate additional temporary staff as needed.
new text end

new text begin Expenses incurred by the commission under this paragraph must be treated as financing
costs and included in the energy transition charge. The costs incurred under clause (1) are
not an obligation of the state and are assigned solely to the transaction.
new text end

new text begin (b) If a utility's application for a financing order is denied or withdrawn for any reason
and energy transition bonds are not issued, the commission's costs to retain expert consultants
under this subdivision must be paid by the applicant utility and are deemed by the commission
to be a prudent deferred expense eligible for recovery in the utility's future rates.
new text end

Sec. 40.

new text begin [216B.495] ENERGY TRANSITION CHARGE; BILLING TREATMENT.
new text end

new text begin (a) An electric utility that obtains a financing order and causes energy transition bonds
to be issued must:
new text end

new text begin (1) include on each customer's monthly electricity bill:
new text end

new text begin (i) a statement that a portion of the charges represents energy transition charges approved
in a financing order;
new text end

new text begin (ii) the amount and rate of the energy transition charge as a separate line item titled
"energy transition charge"; and
new text end

new text begin (iii) if energy transition property has been transferred to an assignee, a statement that
the assignee is the owner of the rights to energy transition charges and that the electric utility
or other entity, if applicable, is acting as a collection agent or servicer for the assignee; and
new text end

new text begin (2) file annually with the commission:
new text end

new text begin (i) a calculation of the impact that financing the retirement or replacement of electric
generating facilities has had on customer electricity rates, by customer class; and
new text end

new text begin (ii) evidence demonstrating that energy transition revenues are applied solely to the
repayment of energy transition bonds and other financing costs.
new text end

new text begin (b) Energy transition charges are nonbypassable and must be paid by all existing and
future customers receiving service from the electric utility or the utility's successors or
assignees under commission-approved rate schedules or special contracts.
new text end

new text begin (c) An electric utility's failure to comply with this section does not invalidate, impair,
or affect any financing order, energy transition property, energy transition charge, or energy
transition bonds, but does subject the electric utility to penalties under applicable commission
rules.
new text end

Sec. 41.

new text begin [216B.496] ENERGY TRANSITION PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin (a) Energy transition property is an existing present property
right or interest in a property right even though the imposition and collection of energy
transition charges depends on the electric utility's collecting energy transition charges and
on future electricity consumption. The property right or interest exists regardless of whether
the revenues or proceeds arising from the energy transition property have been billed, have
accrued, or have been collected.
new text end

new text begin (b) Energy transition property exists until all energy transition bonds issued under a
financing order are paid in full and all financing costs and other costs of the energy transition
bonds have been recovered in full.
new text end

new text begin (c) All or any portion of energy transition property described in a financing order issued
to an electric utility may be transferred, sold, conveyed, or assigned to a successor or assignee
that is wholly owned, directly or indirectly, by the electric utility and is created for the
limited purpose of acquiring, owning, or administering energy transition property or issuing
energy transition bonds as authorized by the financing order. All or any portion of energy
transition property may be pledged to secure energy transition bonds issued under a financing
order, amounts payable to financing parties and to counterparties under any ancillary
agreements, and other financing costs. Each transfer, sale, conveyance, assignment, or
pledge by an electric utility or an affiliate of an electric utility is a transaction in the ordinary
course of business.
new text end

new text begin (d) If an electric utility defaults on any required payment of charges arising from energy
transition property described in a financing order, a court, upon petition by an interested
party and without limiting any other remedies available to the petitioner, must order the
sequestration and payment of the revenues arising from the energy transition property to
the financing parties.
new text end

new text begin (e) The interest of a transferee, purchaser, acquirer, assignee, or pledgee in energy
transition property specified in a financing order issued to an electric utility, and in the
revenue and collections arising from that property, is not subject to setoff, counterclaim,
surcharge, or defense by the electric utility or any other person, or in connection with the
reorganization, bankruptcy, or other insolvency of the electric utility or any other entity.
new text end

new text begin (f) A successor to an electric utility, whether resulting from a reorganization, bankruptcy,
or other insolvency proceeding, merger or acquisition, sale, other business combination,
transfer by operation of law, electric utility restructuring, or otherwise, must perform and
satisfy all obligations of, and has the same duties and rights under, a financing order as the
electric utility to which the financing order applies, and must perform the duties and exercise
the rights in the same manner and to the same extent as the electric utility, including
collecting and paying to any person entitled to receive revenues, collections, payments, or
proceeds of energy transition property.
new text end

new text begin Subd. 2. new text end

new text begin Security interests in energy transition property. new text end

new text begin (a) The creation, perfection,
and enforcement of any security interest in energy transition property to secure the repayment
of the principal and interest on energy transition bonds, amounts payable under any ancillary
agreement, and other financing costs are governed solely by this section.
new text end

new text begin (b) A security interest in energy transition property is created, valid, and binding when:
new text end

new text begin (1) the financing order that describes the energy transition property is issued;
new text end

new text begin (2) a security agreement is executed and delivered; and
new text end

new text begin (3) value is received for the energy transition bonds.
new text end

new text begin (c) Once a security interest in energy transition property is created, the security interest
attaches without any physical delivery of collateral or any other act. The lien of the security
interest is valid, binding, and perfected against all parties having claims of any kind in tort,
contract, or otherwise against the person granting the security interest, regardless of whether
the parties have notice of the lien, upon the filing of a financing statement with the secretary
of state.
new text end

new text begin (d) The description or indication of energy transition property in a transfer or security
agreement and a financing statement is sufficient only if the description or indication refers
to this section and the financing order creating the energy transition property.
new text end

new text begin (e) A security interest in energy transition property is a continuously perfected security
interest and has priority over any other lien, created by operation of law or otherwise, which
may subsequently attach to the energy transition property unless the holder of the security
interest has agreed otherwise in writing.
new text end

new text begin (f) The priority of a security interest in energy transition property is not affected by the
commingling of energy transition property or energy transition revenue with other money.
An assignee, bondholder, or financing party has a perfected security interest in the amount
of all energy transition property or energy transition revenue that is pledged to pay energy
transition bonds, even if the energy transition property or energy transition revenue is
deposited in a cash or deposit account of the electric utility in which the energy transition
revenue is commingled with other money. Any other security interest that applies to the
other money does not apply to the energy transition revenue.
new text end

new text begin (g) Neither a subsequent commission order amending a financing order under section
216B.492, subdivision 4, nor application of an adjustment mechanism, authorized by a
financing order under section 216B.492, subdivision 3, affects the validity, perfection, or
priority of a security interest in or transfer of energy transition property.
new text end

new text begin (h) A valid and enforceable security interest in energy transition property is perfected
only when it has attached and when a financing order has been filed with the secretary of
state in accordance with procedures the secretary of state may establish. The financing order
must name the pledgor of the energy transition property as debtor and identify the property.
new text end

new text begin Subd. 3. new text end

new text begin Sales of energy transition property. new text end

new text begin (a) A sale, assignment, or transfer of
energy transition property is an absolute transfer and true sale of, and not a pledge of or
secured transaction relating to, the seller's right, title, and interest in, to, and under the energy
transition property if the documents governing the transaction expressly state that the
transaction is a sale or other absolute transfer. A transfer of an interest in energy transition
property may be created when:
new text end

new text begin (1) the financing order creating and describing the energy transition property is effective;
new text end

new text begin (2) the documents evidencing the transfer of the energy transition property are executed
and delivered to the assignee; and
new text end

new text begin (3) value is received.
new text end

new text begin (b) A transfer of an interest in energy transition property must be filed with the secretary
of state against all third persons and perfected under sections 336.9-301 to 336.9-342,
including any judicial lien or other lien creditors or any claims of the seller or creditors of
the seller, other than creditors holding a prior security interest, ownership interest, or
assignment in the energy transition property previously perfected under this subdivision or
subdivision 2.
new text end

new text begin (c) The characterization of a sale, assignment, or transfer as an absolute transfer and
true sale, and the corresponding characterization of the property interest of the assignee is
not affected or impaired by:
new text end

new text begin (1) commingling of energy transition revenue with other money;
new text end

new text begin (2) the retention by the seller of:
new text end

new text begin (i) a partial or residual interest, including an equity interest, in the energy transition
property, whether direct or indirect, or whether subordinate or otherwise; or
new text end

new text begin (ii) the right to recover costs associated with taxes, franchise fees, or license fees imposed
on the collection of energy transition revenue;
new text end

new text begin (3) any recourse that the purchaser may have against the seller;
new text end

new text begin (4) any indemnification rights, obligations, or repurchase rights made or provided by
the seller;
new text end

new text begin (5) an obligation of the seller to collect energy transition revenues on behalf of an
assignee;
new text end

new text begin (6) the treatment of the sale, assignment, or transfer for tax, financial reporting, or other
purposes;
new text end

new text begin (7) any subsequent financing order amending a financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (8) any application of an adjustment mechanism under section 216B.492, subdivision
3, paragraph (a), clause (6).
new text end

Sec. 42.

new text begin [216B.497] ENERGY TRANSITION BONDS.
new text end

new text begin (a) Banks, trust companies, savings and loan associations, insurance companies, executors,
administrators, guardians, trustees, and other fiduciaries may legally invest any money
within the individual's or entity's control in energy transition bonds.
new text end

new text begin (b) Energy transition bonds issued under a financing order are not debt of or a pledge
of the faith and credit or taxing power of the state, any agency of the state, or any political
subdivision. Holders of energy transition bonds may not have taxes levied by the state or a
political subdivision in order to pay the principal or interest on energy transition bonds. The
issuance of energy transition bonds does not directly, indirectly, or contingently obligate
the state or a political subdivision to levy any tax or make any appropriation to pay principal
or interest on the energy transition bonds.
new text end

new text begin (c) The state pledges to and agrees with holders of energy transition bonds, any assignee,
and any financing parties that the state must not:
new text end

new text begin (1) take or permit any action that impairs the value of energy transition property; or
new text end

new text begin (2) reduce, alter, or impair energy transition charges that are imposed, collected, and
remitted for the benefit of holders of energy transition bonds, any assignee, and any financing
parties, until any principal, interest, and redemption premium payable on energy transition
bonds, all financing costs, and all amounts to be paid to an assignee or financing party under
an ancillary agreement are paid in full.
new text end

new text begin (d) A person who issues energy transition bonds may include the pledge specified in
paragraph (c) in the energy transition bonds, ancillary agreements, and documentation
related to the issuance and marketing of the energy transition bonds.
new text end

Sec. 43.

new text begin [216B.498] ASSIGNEE OF FINANCING PARTY NOT SUBJECT TO
COMMISSION REGULATION.
new text end

new text begin An assignee or financing party that is not already regulated by the commission does not
become subject to commission regulation solely as a result of engaging in any transaction
authorized by or described in sections 216B.491 to 216B.499.
new text end

Sec. 44.

new text begin [216B.499] EFFECT ON OTHER LAWS.
new text end

new text begin (a) If any provision of sections 216B.491 to 216B.499 conflicts with any other law
regarding the attachment, assignment, perfection, effect of perfection, or priority of any
security interest in or transfer of energy transition property, sections 216B.491 to 216B.499
govern.
new text end

new text begin (b) Nothing in this subdivision precludes an electric utility for which the commission
has initially issued a financing order from applying to the commission for:
new text end

new text begin (1) a subsequent financing order amending the financing order under section 216B.492,
subdivision 4, paragraph (d); or
new text end

new text begin (2) approval to issue energy transition bonds to refund all or a portion of an outstanding
series of energy transition bonds.
new text end

Sec. 45.

new text begin [216B.4991] ENERGY WORKER TRANSITION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin The energy worker transition account is established
as a separate account in the special revenue fund in the state treasury. The commissioner
of employment and economic development must credit to the account appropriations and
transfers to the account, and payments of proceeds from the sale of bonds realized by an
electric utility operating under a financing order issued by the commission under section
216B.492. Earnings, including but not limited to 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 expended. The commissioner of employment and economic development must
manage the account.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin (a) Money in the account may be used only to provide assistance
to workers whose employment was terminated by an electric utility that has ceased operation
and issued bonds under a financing order issued by the Public Utilities Commission under
section 216B.492. The types of assistance that may be provided from the account are:
new text end

new text begin (1) transition, support, and training services listed under section 116L.17, subdivision
4, clauses (1) to (5);
new text end

new text begin (2) employment and training services, as defined in section 116L.19, subdivision 4;
new text end

new text begin (3) income maintenance and support services, as defined in section 116L.19, subdivision
5;
new text end

new text begin (4) assistance to workers in starting a business, as described in section 116L.17,
subdivision 11; and
new text end

new text begin (5) extension of unemployment benefits.
new text end

new text begin (b) No more than five percent of the money in the account may be used to pay the
department's costs to administer the account.
new text end

new text begin (c) The commissioner may make grants to a state or local government unit, nonprofit
organization, community action agency, business organization or association, or labor
organization to provide the services allowed under this subdivision. No more than ten percent
of the money allocated to a grantee may be used to pay administrative costs.
new text end

Sec. 46.

Minnesota Statutes 2020, section 216E.03, subdivision 10, is amended to read:

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.

new text begin (c) The commission shall require as a condition of permit issuance that the recipient of
a site permit to construct a large electric power generating plant and all of the permit
recipient's construction contractors and subcontractors on the project pay no less than the
prevailing wage rate, as defined in section 177.42. The commission shall also require as a
condition of modifying a site permit for a large electric power generating plant repowering
project, as defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of
the site permit and all of the permit recipient's construction contractors and subcontractors
on the repowering project pay no less than the prevailing wage rate, as defined in section
177.42.
new text end

new text begin (d) The commission may require as a condition of permit issuance that the recipient of
a site permit to construct a large electric power generating plant and all of the permit
recipient's construction contractors and subcontractors on the project participate in
apprenticeship programs that are registered with the Department of Labor and Industry or
the Office of Apprenticeship of the United States Department of Labor for the relevant work
on the project. The commission may also require as a condition of modifying a site permit
for a large electric power generating plant repowering project, as defined in section 216B.243,
subdivision 8, paragraph (b), that the recipient of the site permit and all of the permit
recipient's construction contractors and subcontractors on the repowering project participate
in apprenticeship programs that are registered with the Department of Labor and Industry
or the Office of Apprenticeship of the United States Department of Labor for the relevant
work on the project. When deciding whether to require participation in apprenticeship
programs that are registered with the Department of Labor and Industry or the Office of
Apprenticeship of the United States Department of Labor under this paragraph, the
commission shall consider relevant factors, including the direct and indirect economic
impact as well as the quality, efficiency, and safety of construction on the project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 47.

Minnesota Statutes 2020, section 216F.04, is amended to read:

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.

new text begin (e) The commission shall require as a condition of permit issuance that the recipient of
a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts and
all of the permit recipient's construction contractors and subcontractors on the project pay
no less than the prevailing wage rate, as defined in section 177.42. The commission shall
also require as a condition of modifying a site permit for an LWECS repowering project as
defined in section 216B.243, subdivision 8, paragraph (b), that the recipient of the site permit
and all of the permit recipient's construction contractors and subcontractors on the repowering
project pay no less than the prevailing wage rate, as defined in section 177.42.
new text end

new text begin (f) The commission may require as a condition of permit issuance that the recipient of
a site permit to construct an LWECS with a nameplate capacity above 25,000 kilowatts and
all of the permit recipient's construction contractors and subcontractors on the project
participate in apprenticeship programs that are registered with the Department of Labor and
Industry or the Office of Apprenticeship of the United States Department of Labor for the
relevant work on the project. The commission may also require as a condition of modifying
a site permit for an LWECS repowering project as defined in section 216B.243, subdivision
8, paragraph (b), that the recipient of the site permit and all of the permit recipient's
construction contractors and subcontractors on the repowering project participate in
apprenticeship programs that are registered with the Department of Labor and Industry or
the Office of Apprenticeship of the United States Department of Labor for the relevant work
on the project. When deciding whether to require participation in apprenticeship programs
that are registered with the Department of Labor and Industry or the Office of Apprenticeship
of the United States Department of Labor under this paragraph, the commission shall consider
relevant factors, including the direct and indirect economic impact as well as the quality,
efficiency, and safety of construction on the project.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021, and applies to dockets
initiated at the Public Utilities Commission on or after that date.
new text end

Sec. 48. new text begin PUBLIC UTILITIES COMMISSION; EVALUATION OF THE ROLE OF
NATURAL GAS UTILITIES IN ACHIEVING STATE GREENHOUSE GAS
REDUCTION GOALS.
new text end

new text begin By August 1, 2021, the Public Utilities Commission must initiate a proceeding to evaluate
changes to natural gas utility regulatory and policy structures needed to support the state's
greenhouse gas emissions reductions goals, including those established in Minnesota Statutes,
section 216H.02, subdivision 1, and to achieve net zero greenhouse gas emissions by 2050,
as determined by the Intergovernmental Panel on Climate Change.
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. 49. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Construction materials; environmental impact study. new text end

new text begin (a) $100,000
in fiscal year 2022 is appropriated from the general fund to the commissioner of
administration to complete the study required under this section. This is a onetime
appropriation.
new text end

new text begin (b) The commissioner of administration must contract with the Center for Sustainable
Building Research at the University of Minnesota to examine the feasibility, economic costs,
and environmental benefits of requiring a bid that proposes to use or construct one or more
eligible materials in the construction or major renovation of a new state building to include
a supply-chain specific type III environmental product declaration for each of those materials,
which information must be taken into consideration in making a contract award. In conducting
the study, the Center for Sustainable Building Research must examine and evaluate similar
programs adopted in other states.
new text end

new text begin (c) By February 1, 2022, the commissioner of administration must submit the findings
and recommendations of the study to the chairs and ranking minority members of the senate
and house of representatives committees with primary jurisdiction over environmental
policy.
new text end

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

new text begin (1) "eligible materials" means any of the following materials that function as part of a
structural system or structural assembly:
new text end

new text begin (i) concrete, including structural cast in place, shortcrete, and precast;
new text end

new text begin (ii) unit masonry;
new text end

new text begin (iii) metal of any type; and
new text end

new text begin (iv) wood of any type, including but not limited to wood composites and wood-laminated
products;
new text end

new text begin (2) "engineered wood" means a product manufactured by banding or fixing strands,
particles, fiber, or veneers of boards of wood by means of adhesives, combined with heat
and pressure, or other methods to form composite material;
new text end

new text begin (3) "state building" means a building owned by the state of Minnesota;
new text end

new text begin (4) "structural" means a building material or component that supports gravity loads of
building floors, roofs, or both, and is the primary lateral system resisting wind and earthquake
loads, including but not limited to shear walls, braced or moment frames, foundations,
below-grade walls, and floors;
new text end

new text begin (5) "supply-chain specific" means an environmental product declaration that includes
supply-chain specific data for production processes that contribute to 80 percent or more
of a product's lifecycle global warming potential. For engineered wood products,
"supply-chain specific" also means an environmental product declaration that reports:
new text end

new text begin (i) any chain of custody certification; and
new text end

new text begin (ii) the percentage of wood, by volume, used in the product that is sourced:
new text end

new text begin (A) by state or province and country;
new text end

new text begin (B) by type of owner, whether federal, state, private, or other; and
new text end

new text begin (C) with forest management certification; and
new text end

new text begin (6) "type III environmental product declaration" means a document verified and registered
by a third party that contains a life-cycle assessment of the environmental impacts, including
but not limited to the use of water, land, and energy resources in the manufacturing process,
of a specific product constructed or manufactured by a specific firm and that meets the
applicable standards developed and maintained for such assessments by the International
Organization for Standardization (ISO).
new text end

new text begin Subd. 2. new text end

new text begin Natural gas innovation plan; implementation. new text end

new text begin (a) $189,000 in fiscal year
2022 and $189,000 in fiscal year 2023 are appropriated from the general fund to the
commissioner of commerce for activities associated with a utility's implementation of a
natural gas innovation plan under Minnesota Statutes, section 216B.2427.
new text end

new text begin (b) $112,000 in fiscal year 2022 and $112,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission for the activities associated with a
utility's implementation of a natural gas innovation plan under Minnesota Statutes, section
216B.2427.
new text end

new text begin Subd. 3. new text end

new text begin Energy Transition Office. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $450,000 in fiscal year 2022 and $450,000 in fiscal
year 2023 are appropriated from the renewable development account established in Minnesota
Statutes, section 116C.779, subdivision 1, to the commissioner of employment and economic
development to operate the Energy Transition Office established under Minnesota Statutes,
section 116J.5491.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Innovation Finance Authority. new text end

new text begin Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $10,000,000 in fiscal year 2022 is
appropriated from the renewable development account established under Minnesota Statutes,
section 116C.779, subdivision 1, to the commissioner of commerce to transfer to the
Minnesota Innovation Finance Authority established under Minnesota Statutes, section
216C.441. This is a onetime appropriation. Of this amount, the Minnesota Innovation Finance
Authority may obligate up to $50,000 for start-up expenses, including but not limited to
expenses incurred prior to incorporation.
new text end

new text begin Subd. 5. new text end

new text begin Beneficial electrification. new text end

new text begin (a) $30,000 in fiscal year 2022 and $30,000 in fiscal
year 2023 are appropriated from the general fund to the commissioner of commerce to
participate in Public Utilities Commission proceedings regarding utility beneficial
electrification plans, as described in Minnesota Statutes, section 216B.248.
new text end

new text begin (b) $56,000 in fiscal year 2022 and $28,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission for activities associated with utility
beneficial electrification plans, as described in Minnesota Statutes, section 216B.248.
new text end

new text begin Subd. 6. new text end

new text begin Securitization. new text end

new text begin (a) $126,000 in fiscal year 2022 and $126,000 in fiscal year
2023 are appropriated from the general fund to the commissioner of commerce to implement
Minnesota Statutes, sections 216B.491 to 216B.4991.
new text end

new text begin (b) $207,000 in fiscal year 2022 and $147,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission to implement Minnesota Statutes,
sections 216B.491 to 216B.4991.
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 REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 216B.1691, subdivision 2, new text end new text begin is repealed.
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 9

CLIMATE CHANGE

Section 1.

new text begin [16B.312] CONSTRUCTION MATERIALS; ENVIRONMENTAL
ANALYSIS.
new text end

new text begin Subdivision 1. new text end

new text begin Title. new text end

new text begin This section may be known and cited as the "Buy Clean and Buy
Fair Minnesota Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (a) "Carbon steel" means steel in which the main alloying element is carbon and whose
properties are chiefly dependent on the percentage of carbon present.
new text end

new text begin (b) "Department" means the Department of Administration.
new text end

new text begin (c) "Eligible material category" means:
new text end

new text begin (1) carbon steel rebar;
new text end

new text begin (2) structural steel;
new text end

new text begin (3) photovoltaic devices, as defined in section 216C.06, subdivision 16; or
new text end

new text begin (4) an energy storage system, as defined in section 216B.2421, subdivision 1, paragraph
(f), that is installed as part of an eligible project.
new text end

new text begin (d) "Eligible project" means:
new text end

new text begin (1) new construction of a state building larger than 50,000 gross square feet of occupied
or conditioned space; or
new text end

new text begin (2) renovation of more than 50,000 gross square feet of occupied or conditioned space
in a state building whose renovation cost exceeds 50 percent of the building's assessed value.
new text end

new text begin (e) "Environmental product declaration" means a supply chain specific type III
environmental product declaration that:
new text end

new text begin (1) contains a lifecycle assessment of the environmental impacts of manufacturing a
specific product by a specific firm, including the impacts of extracting and producing the
raw materials and components that compose the product;
new text end

new text begin (2) is verified and registered by a third party; and
new text end

new text begin (3) meets the applicable standards developed and maintained for such assessments by
the International Organization for Standardization (ISO).
new text end

new text begin (f) "Global warming potential" has the meaning given in section 216H.10, subdivision
5.
new text end

new text begin (g) "Greenhouse gas" has the meaning given to statewide greenhouse gas emissions in
section 216H.01, subdivision 2.
new text end

new text begin (h) "Lifecycle" means an analysis that includes the environmental impacts of all stages
of a specific product's production, from mining and processing the product's raw materials
to the process of manufacturing the product.
new text end

new text begin (i) "Rebar" means a steel reinforcing bar or rod encased in concrete.
new text end

new text begin (j) "State building" means a building whose construction or renovation is funded wholly
or partially from the proceeds of bonds issued by the state of Minnesota.
new text end

new text begin (k) "Structural steel" means steel that is classified by the shapes of its cross-sections,
such as I, T, and C shapes.
new text end

new text begin (l) "Supply chain specific" means an environmental product declaration that includes
specific data for the production processes of the materials and components composing a
product that contribute at least 80 percent of the product's lifecycle global warming potential,
as defined in International Organization for Standardization standard 21930.
new text end

new text begin Subd. 3. new text end

new text begin Standard; maximum global warming potential. new text end

new text begin (a) No later than September
1, 2022, the commissioner shall establish and publish a maximum acceptable global warming
potential for each eligible material used in an eligible project, in accordance with the
following requirements:
new text end

new text begin (1) the commissioner shall, after considering nationally or internationally recognized
databases of environmental product declarations for an eligible material category, establish
the maximum acceptable global warming potential at the industry average global warming
potential for that eligible material category; and
new text end

new text begin (2) the commissioner may set different maximums for different specific products within
each eligible material category.
new text end

new text begin The global warming potential shall be provided in a manner that is consistent with criteria
in an environmental product declaration.
new text end

new text begin (b) No later than September 1, 2025, and every three years thereafter, the commissioner
shall review the maximum acceptable global warming potential for each eligible materials
category and for specific products within an eligible materials category established under
paragraph (a). The commissioner may adjust those values downward for any eligible material
category or product to reflect industry improvements if the commissioner, based on the
process described in paragraph (a), clause (1), determines that the industry average has
declined. The commissioner must not adjust the maximum acceptable global warming
potential upward for any eligible material category or product.
new text end

new text begin Subd. 4. new text end

new text begin Bidding process. new text end

new text begin (a) Except as provided in paragraph (c), the department shall
require in a specification for bids for an eligible project that the global warming potential
reported by a bidder in the environmental product declaration for any eligible material
category must not exceed the maximum acceptable global warming potential for that eligible
material category or product established under subdivision 2. The department may require
in a specification for bids for an eligible project a global warming potential for any eligible
material that is lower than the maximum acceptable global warming potential for that
material established under subdivision 2.
new text end

new text begin (b) Except as provided in paragraph (c), a successful bidder for a contract must not use
or install any eligible material on the project until the commissioner has provided notice to
the bidder in writing that the commissioner has determined that a supply chain-specific
environmental product declaration submitted by the bidder for that material meets the
requirements of this subdivision.
new text end

new text begin (c) A bidder may be exempted from the requirements of paragraphs (a) and (b) if the
commissioner determines that complying with the provisions of paragraph (a) would create
financial hardship for the bidder. The commissioner shall make a determination of hardship
if the commissioner finds that:
new text end

new text begin (1) the bidder has made a good faith effort to obtain the data required in an environmental
product declaration; and
new text end

new text begin (2) the bidder has provided all the data obtained in pursuit of an environmental product
declaration to the commissioner; and
new text end

new text begin (3) based on a detailed estimate of the costs of obtaining an environmental product
declaration, and taking into consideration the bidder's annual gross revenues, complying
with paragraph (a) would cause the bidder financial hardship; or
new text end

new text begin (4) complying with paragraph (a) would disrupt the bidder's ability to perform contractual
obligations.
new text end

new text begin Subd. 5. new text end

new text begin Pilot program. new text end

new text begin (a) No later than July 1, 2022, the department must establish
a pilot program that seeks to obtain from vendors an estimate of the lifecycle greenhouse
gas emissions, including greenhouse gas emissions from mining raw materials, of products
selected by the department from among the products the department procures. The pilot
program must encourage but must not require a product vendor to submit the following data
for each selected product that represents at least 90 percent of the total cost of the materials
or components used in the selected product:
new text end

new text begin (1) the quantity of the product purchased by the department;
new text end

new text begin (2) a current environmental product declaration for the product;
new text end

new text begin (3) the name and location of the product's manufacturer;
new text end

new text begin (4) a copy of the product vendor's Supplier Code of Conduct, if any;
new text end

new text begin (5) names and locations of the product's actual production facilities; and
new text end

new text begin (6) an assessment of employee working conditions at the product's actual production
facilities.
new text end

new text begin (b) The department must construct a publicly accessible database posted on the
department's website containing the data reported under this subdivision. The data must be
reported in a manner that precludes, directly, or in combination with other publicly available
data, the identification of the product manufacturer.
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 2020, section 216H.02, subdivision 1, is amended to read:

Subdivision 1.

Greenhouse gas emissions-reduction goal.

new text begin (a) new text end It is the goal of the state
to reduce statewide greenhouse gas emissions across all sectors producing those emissions
deleted text begin to a level at least 15 percent below 2005 levels by 2015, to a level at least 30 percent below
2005 levels by 2025, and to a level at least 80 percent below 2005 levels by 2050. deleted text end new text begin by at
least the following amounts, compared with the level of emissions in 2005:
new text end

new text begin (1) 15 percent by 2015;
new text end

new text begin (2) 30 percent by 2025;
new text end

new text begin (3) 45 percent by 2030; and
new text end

new text begin (4) net zero by 2050.
new text end

new text begin (b) new text end The deleted text begin levels deleted text end new text begin targets new text end shall be reviewed deleted text begin based on the climate change action plan study. deleted text end new text begin
annually by the commissioner of the Pollution Control Agency, taking into account the
latest scientific research on the impacts of climate change and strategies to reduce greenhouse
gas emissions published by the Intergovernmental Panel on Climate Change. The
commissioner shall forward any recommended changes to the targets to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over climate change and environmental 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. 3.

new text begin [239.7912] FUTURE FUELS ACT.
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 equivalent" means the number of metric tons of carbon dioxide
emissions that have the same global warming potential as one metric ton of another
greenhouse gas.
new text end

new text begin (c) "Carbon intensity" means the quantity of life cycle greenhouse gas emissions
associated with a unit of a specific transportation fuel, expressed in grams of carbon dioxide
equivalent per megajoule of transportation fuel, as calculated by the most recent version of
Argonne National Laboratory's GREET model and adapted to Minnesota by the department
through rulemaking or administrative process.
new text end

new text begin (d) "Clean fuel" means a transportation fuel that has a carbon intensity level that is below
the clean fuels carbon intensity standard in a given year.
new text end

new text begin (e) "Credit" means a unit of measure equal to one metric ton of carbon dioxide equivalent,
and that serves as a quantitative measure of the degree to which a fuel provider's
transportation fuel volume is lower than the carbon intensity embodied in an applicable
clean fuels standard.
new text end

new text begin (f) "Credit generator" means an entity involved in supplying a clean fuel.
new text end

new text begin (g) "Deficit" means a unit of measure (1) equal to one metric ton of carbon dioxide
equivalent, and (2) that serves as a quantitative measure of the degree to which a fuel
provider's volume of transportation fuel is greater than the carbon intensity embodied in an
applicable future fuels standard.
new text end

new text begin (h) "Deficit generator" means a fuel provider who generates deficits and who first
produces or imports a transportation fuel for use in Minnesota.
new text end

new text begin (i) "Fuel life cycle" means the total aggregate greenhouse gas emissions resulting from
all stages of a fuel pathway for a specific transportation fuel.
new text end

new text begin (j) "Fuel pathway" means a detailed description of all stages of a transportation fuel's
production and use, including extraction, processing, transportation, distribution, and
combustion or use by an end-user.
new text end

new text begin (k) "Fuel provider" means an entity that supplies a transportation fuel for use in
Minnesota.
new text end

new text begin (l) "Global warming potential" or "GWP" means a quantitative measure of a greenhouse
gas emission's potential to contribute to global warming over a 100-year period, expressed
in terms of the equivalent carbon dioxide emission needed to produce the same 100-year
warming effect.
new text end

new text begin (m) "Greenhouse gas" means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons, or sulfur hexafluoride.
new text end

new text begin (n) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
new text end

new text begin (o) "Relevant petroleum-only portion of transportation fuels" means the component of
gasoline or diesel fuel prior to blending with ethanol, biodiesel, or other biofuel.
new text end

new text begin (p) "Technology provider" means a manufacturer of an end-use consumer technology
involved in supplying clean fuels.
new text end

new text begin (q) "Transportation fuel" means electricity or a liquid or gaseous fuel that (1) is blended,
sold, supplied, offered for sale, or used to propel a motor vehicle, including but not limited
to train, light rail vehicle, ship, aircraft, forklift, or other road or nonroad vehicle in
Minnesota, and (2) meets applicable standards, specifications, and testing requirements
under this chapter. Transportation fuel includes but is not limited to electricity used as fuel
in a motor vehicle, gasoline, diesel, ethanol, biodiesel, renewable diesel, propane, renewable
propane, natural gas, renewable natural gas, hydrogen, aviation fuel, and biomethane.
new text end

new text begin Subd. 2. new text end

new text begin Clean fuels standard; establishment by rule; goals. new text end

new text begin (a) No later than October
1, 2021, the commissioner must publish notice of the intent to adopt rules, as required under
section 14.22, that implement a clean fuels standard and other provisions of this section.
The timing requirement to publish a notice of intent to adopt rules or notice of hearing under
section 14.125 does not apply to rules adopted under this subdivision.
new text end

new text begin (b) The commissioner must consult with the commissioners of transportation, agriculture,
and the Pollution Control Agency when developing the rules under this subdivision. The
commissioner may gather input from stakeholders through various means, including a task
force, working groups, and public workshops. The commissioner, collaborating with the
Department of Transportation, may consult with stakeholders, including but not limited to
fuel providers; consumers; rural, urban, and Tribal communities; agriculture; environmental
and environmental justice organizations; technology providers; and other businesses.
new text end

new text begin (c) When developing the rule, the commissioner must endeavor to make available to
Minnesota a fuel-neutral clean fuels portfolio that:
new text end

new text begin (1) creates broad rural and urban economic development;
new text end

new text begin (2) provides benefits for communities, consumers, clean fuel providers, technology
providers, and feedstock suppliers;
new text end

new text begin (3) increases energy security from expanded reliance on domestically produced fuels;
new text end

new text begin (4) supports equitable transportation electrification that benefits all communities and is
powered primarily with low-carbon and carbon-free electricity;
new text end

new text begin (5) improves air quality and public health, targeting communities that bear a
disproportionate health burden from transportation pollution;
new text end

new text begin (6) supports state solid waste recycling goals by facilitating credit generation from
renewable natural gas produced from organic waste;
new text end

new text begin (7) aims to support, through credit generation or other financial means, voluntary
farmer-led efforts to adopt agricultural practices that benefit soil health and water quality
while contributing to lower life cycle greenhouse gas emissions from clean fuel feedstocks;
new text end

new text begin (8) maximizes benefits to the environment and natural resources, develops safeguards
and incentives to protect natural lands, and enhances environmental integrity, including
biodiversity; and
new text end

new text begin (9) is the result of extensive outreach efforts to stakeholders and communities that bear
a disproportionate health burden from pollution from transportation or from the production
and transportation of transportation fuels.
new text end

new text begin Subd. 3. new text end

new text begin Clean fuels standard; establishment. new text end

new text begin (a) A clean fuels standard is established
that requires the aggregate carbon intensity of transportation fuel supplied to Minnesota be
reduced to at least 20 percent below the 2018 baseline level by the end of 2035. In
consultation with the Pollution Control Agency, Department of Agriculture, and Department
of Transportation, the commissioner must establish by rule a schedule of annual standards
that steadily decreases the carbon intensity of transportation fuels.
new text end

new text begin (b) When determining the schedule of annual standards, the commissioner must consider
the cost of compliance, the technologies available to a provider to achieve the standard, the
need to maintain fuel quality and availability, and the policy goals under subdivision 2,
paragraph (c).
new text end

new text begin (c) Nothing in this chapter precludes the department from adopting rules that allow the
generation of credits associated with electric or alternative transportation fuels or
infrastructure that existed prior to the effective date of this section or the start date of program
requirements.
new text end

new text begin Subd. 4. new text end

new text begin Clean fuels standard; baseline calculation. new text end

new text begin The department must calculate
the baseline carbon intensity of the relevant petroleum-only portion of transportation fuels
for the 2018 calendar year after reviewing and considering the best available applicable
scientific data and calculations.
new text end

new text begin Subd. 5. new text end

new text begin Clean fuels standard; compliance. new text end

new text begin A deficit generator may comply with this
section by:
new text end

new text begin (1) producing or importing transportation fuels whose carbon intensity is at or below
the level of the applicable year's standard; or
new text end

new text begin (2) purchasing sufficient credits to offset any aggregate deficits resulting from the carbon
intensity of the deficit generator's transportation fuels exceeding the applicable year's
standard.
new text end

new text begin Subd. 6. new text end

new text begin Clean fuel credits. new text end

new text begin The commissioner must establish by rule a program for
tradeable credits and deficits. The commissioner must adopt rules to fairly and reasonably
operate a credit market that may include:
new text end

new text begin (1) a market mechanism that allows credits to be traded or banked for future use;
new text end

new text begin (2) transaction fees associated with the credit market; and
new text end

new text begin (3) procedures to verify the validity of credits and deficits generated by a fuel provider
under this section.
new text end

new text begin Subd. 7. new text end

new text begin Fuel pathway and carbon intensity determination. new text end

new text begin The commissioner must
establish a process to determine the carbon intensity of transportation fuels, including but
not limited to the review by the commissioner of a fuel pathway submitted by a fuel provider.
Fuel pathways must be calculated using the most recent version of the Argonne National
Laboratory's GREET model adapted to Minnesota, as determined by the commissioner.
The fuel pathway determination process must (1) be consistent for all fuel types, (2) be
science- and engineering-based, and (3) reflect differences in vehicle fuel efficiency and
drive trains. The commissioner must consult with the Department of Agriculture, Department
of Transportation, and Pollution Control Agency to determine fuel pathways, and may
coordinate with third-party entities or other states to review and approve pathways to reduce
the administrative cost.
new text end

new text begin Subd. 8. new text end

new text begin Fuel provider reports. new text end

new text begin The commissioner must collaborate with the Department
of Transportation, Department of Agriculture, Pollution Control Agency, and the Public
Utilities Commission to develop a process, including forms developed by the commissioner,
for credit and deficit generators to submit required compliance reporting.
new text end

new text begin Subd. 9. new text end

new text begin Enforcement. new text end

new text begin The commissioner of commerce may enforce this section under
section 45.027.
new text end

new text begin Subd. 10. new text end

new text begin Report to legislature. new text end

new text begin No later than 48 months after the effective date of a
rule implementing a clean fuels standard, the commissioner must submit a report detailing
program implementation to the chairs and ranking minority members of the senate and
house committees with jurisdiction over transportation and climate change. The commissioner
must make summary information on the program available to the public.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4. new text begin INTEGRATING GREENHOUSE GAS REDUCTIONS INTO STATE
ACTIVITIES; PLAN.
new text end

new text begin By February 15, 2022, the Climate Change Subcabinet established in Executive Order
19-37 must provide to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over climate and energy a preliminary report
on a Climate Transition Plan for incorporating the statewide greenhouse gas emission
reduction targets under Minnesota Statutes, section 216H.02, subdivision 1, into all aspects
of state agency activities, including but not limited to planning, awarding grants, purchasing,
regulating, funding, and permitting. The preliminary report must identify statutory changes
required for this purpose. The Pollution Control Agency must collaborate with the
Department of Administration to estimate greenhouse gas emissions from governmental
activities. The final Climate Transition Plan is due August 1, 2022, and must identify any
additional resources required to implement the plan's recommendations.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin SMALL-AREA CLIMATE MODEL PROJECTIONS FOR MINNESOTA.
new text end

new text begin (a) The Board of Regents of the University of Minnesota is requested to conduct a study
that generates climate model projections for the entire state of Minnesota at a level of detail
as small as three square miles in area. At a minimum, the study must:
new text end

new text begin (1) use resources at the Minnesota Supercomputing Institute to analyze high-performing
climate models under varying greenhouse gas emissions scenarios and develop a series of
projections of temperature, precipitation, snow cover, and a variety of other climate
parameters through the year 2100;
new text end

new text begin (2) downscale the climate impact results under clause (1) to areas as small as three square
miles;
new text end

new text begin (3) develop a publicly accessible data portal website to:
new text end

new text begin (i) allow other universities, nonprofit organizations, businesses, and government agencies
to use the model projections; and
new text end

new text begin (ii) educate and train users to use the data most effectively; and
new text end

new text begin (4) incorporate information on how to use the model results in the University of
Minnesota Extension's climate education efforts, in partnership with the Minnesota Climate
Adaptation Partnership.
new text end

new text begin (b) In conjunction with the study, the university must conduct at least two "train the
trainer" workshops for state agencies, municipalities, and other stakeholders to educate
attendees regarding how to use and interpret the model data as a basis for climate adaptation
and resilience efforts.
new text end

new text begin (c) Beginning July 1, 2022, and continuing each July 1 through 2024, the University of
Minnesota must provide a written report to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over agriculture,
energy, and environment. The report must document the progress made on the study and
study results and must note any obstacles encountered that could prevent successful
completion of the study.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Buy clean, buy fair. new text end

new text begin $176,000 in fiscal year 2022 and $40,000 in fiscal
year 2023 are appropriated from the general fund to the commissioner of administration for
costs to establish (1) maximum global warming potential standards for certain construction
materials, and (2) the pilot program for vendors under Minnesota Statutes, section 16B.312.
The base in fiscal year 2024 is $40,000 and the base in fiscal year 2025 is $90,000. The
base in fiscal year 2026 is $0.
new text end

new text begin Subd. 2. new text end

new text begin Clean fuels report. new text end

new text begin Notwithstanding Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (j), $100,000 in fiscal year 2022 is appropriated from the renewable
development account established in Minnesota Statutes, section 116C.779, subdivision 1,
to the commissioner of commerce to pay for costs incurred to create the report under
Minnesota Statutes, section 239.7912, subdivision 10. The money from this appropriation
does not cancel but remains available until expended. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Small-area climate-model projections. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $583,000 in fiscal year 2022 is appropriated
from the renewable development account established under Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of commerce for a grant to the Board of
Regents of the University of Minnesota to conduct the study requested under section 5 that
generates climate model projections for the entire state of Minnesota, at a level of detail as
small as three square miles in area. This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Climate Transition Plan. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j):
new text end

new text begin (1) $500,000 in fiscal year 2022 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
the Pollution Control Agency to contract with an independent consultant to produce a plan,
as directed by the Climate Change Subcabinet, to incorporate the state's greenhouse gas
emissions reduction targets into all activities of state agencies;
new text end

new text begin (2) $118,000 in fiscal year 2022 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
administration to develop greenhouse gas emissions reduction targets that apply to all state
agency activities; and
new text end

new text begin (3) $128,000 in fiscal year 2022 is appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
the Pollution Control Agency for costs associated with managing the contract under clause
(1), and to assist the Department of Administration to develop greenhouse gas emissions
reduction targets that apply to all state agency activities.
new text end

new text begin (b) All the appropriations in this subdivision are onetime appropriations.
new text end

ARTICLE 10

ELECTRIC VEHICLES

Section 1.

Minnesota Statutes 2020, section 16C.135, subdivision 3, is amended to read:

Subd. 3.

Vehicle purchases.

new text begin (a) new text end Consistent with section 16C.137, subdivision 1, when
purchasing a motor vehicle for the central motor pool or for use by an agency, the
commissioner or the agency shall purchase deleted text begin a motor vehicle that is capable of being powered
by cleaner fuels, or a motor vehicle powered by electricity or by a combination of electricity
and liquid fuel, if the total life-cycle cost of ownership is less than or comparable to that of
other vehicles and if the vehicle is capable deleted text end new text begin the motor vehicle in conformity with the following
hierarchy of preferences:
new text end

new text begin (1) an electric vehicle;
new text end

new text begin (2) a hybrid electric vehicle;
new text end

new text begin (3) a vehicle capable of being powered by cleaner fuels; and
new text end

new text begin (4) a vehicle powered by gasoline or diesel fuel.
new text end

new text begin (b) The commissioner may only reject a vehicle type that is higher on the hierarchy of
preferences if:
new text end

new text begin (1) the vehicle type is incapable new text end of carrying out the purpose for which it is purchased deleted text begin . deleted text end new text begin ;
or
new text end

new text begin (2) the total life-cycle cost of ownership of a preferred vehicle type is more than ten
percent higher than the next lower preference vehicle type.
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 2020, section 16C.137, subdivision 1, is amended to read:

Subdivision 1.

Goals and actions.

Each state department must, whenever legally,
technically, and economically feasible, subject to the specific needs of the department and
responsible management of agency finances:

(1) ensure that all new on-road vehicles deleted text begin purchased deleted text end , excluding emergency and law
enforcement vehicles deleted text begin : deleted text end new text begin , are purchased in conformity with the hierarchy of preferences
established in section 16C.135, subdivision 3;
new text end

deleted text begin (i) use "cleaner fuels" as that term is defined in section 16C.135, subdivision 1;
deleted text end

deleted text begin (ii) have fuel efficiency ratings that exceed 30 miles per gallon for city usage or 35 miles
per gallon for highway usage, including but not limited to hybrid electric cars and
hydrogen-powered vehicles; or
deleted text end

deleted text begin (iii) are powered solely by electricity;
deleted text end

(2) increase its use of renewable transportation fuels, including ethanol, biodiesel, and
hydrogen from agricultural products; and

(3) increase its use of web-based Internet applications and other electronic information
technologies to enhance the access to and delivery of government information and services
to the public, and reduce the reliance on the department's fleet for the delivery of such
information and services.

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 2020, section 168.27, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Dealer training; electric vehicles. new text end

new text begin (a) A new motor vehicle dealer licensed
under this chapter that operates under an agreement or franchise from a manufacturer and
sells electric vehicles must maintain at least one employee who is certified as having
completed a training course offered by a Minnesota motor vehicle dealership association
that addresses at least the following elements:
new text end

new text begin (1) fundamentals of electric vehicles;
new text end

new text begin (2) electric vehicle charging options and costs;
new text end

new text begin (3) publicly available electric vehicle incentives;
new text end

new text begin (4) projected maintenance and fueling costs for electric vehicles;
new text end

new text begin (5) reduced tailpipe emissions, including greenhouse gas emissions, produced by electric
vehicles;
new text end

new text begin (6) the impacts of Minnesota's cold climate on electric vehicle operation; and
new text end

new text begin (7) best practices to sell electric vehicles.
new text end

new text begin (b) This subdivision does not apply to a licensed dealer selling new electric vehicles of
a manufacturer's own brand, but who is not operating under a franchise agreement with the
manufacturer.
new text end

new text begin (c) For the purposes of this section, "electric vehicle" has the meaning given in section
169.011, subdivision 26a, paragraphs (a) and (b), clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2022.
new text end

Sec. 4.

new text begin [216B.1615] ELECTRIC VEHICLE DEPLOYMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Battery exchange station" means a physical location deploying equipment that
enables a used electric vehicle battery to be removed and exchanged for a fresh electric
vehicle battery.
new text end

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

new text begin (d) "Electric vehicle charging station" means a physical location deploying equipment
that:
new text end

new text begin (1) transfers electricity to an electric vehicle battery; or
new text end

new text begin (2) dispenses hydrogen, produced by electrolysis, into an electric vehicle that uses a fuel
cell to convert the hydrogen to electricity.
new text end

new text begin (e) "Electric vehicle infrastructure" means electric vehicle charging stations and battery
exchange stations, and any associated machinery, equipment, and infrastructure necessary
to support the operation of electric vehicles and to make electricity from a public utility's
electric distribution system available to electric vehicle charging stations or battery exchange
stations.
new text end

new text begin (f) "Electrolysis" means the process of using electricity to split water into hydrogen and
oxygen.
new text end

new text begin (g) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
new text end

new text begin (h) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Transportation electrification plan; contents. new text end

new text begin (a) By June 1, 2022, and by
June 1 every three years thereafter, a public utility serving retail electric customers in a city
of the first class, as defined in section 410.01, must file a transportation electrification plan
with the commission that is designed to maximize the overall benefits of electrified
transportation while minimizing overall costs and to promote:
new text end

new text begin (1) the purchase of electric vehicles by the public utility's customers; and
new text end

new text begin (2) the deployment of electric vehicle infrastructure in the public utility's service territory.
new text end

new text begin (b) A transportation electrification plan may include but is not limited to the following
elements:
new text end

new text begin (1) programs to educate and increase the awareness and benefits of electric vehicles and
electric vehicle charging equipment to potential users and deployers, including individuals,
electric vehicle dealers, single-family and multifamily housing developers and property
management companies, and vehicle fleet managers;
new text end

new text begin (2) utility investments and incentives to facilitate the deployment of electric vehicles,
customer- or utility-owned electric vehicle charging stations, electric vehicle infrastructure,
and other electric utility infrastructure;
new text end

new text begin (3) research and demonstration projects to publicize and measure the value electric
vehicles provide to the electric grid;
new text end

new text begin (4) rate structures or programs, including time-varying rates and charging optimization
programs, that encourage electric vehicle charging that optimizes electric grid operation;
and
new text end

new text begin (5) programs to increase access to the benefits of electricity as a transportation fuel by
low-income customers and communities, including the installation of electric vehicle
infrastructure in neighborhoods with a high proportion of low- or moderate-income
households, the deployment of electric vehicle infrastructure in community-based locations
or multifamily residences, car share programs, and electrification of public transit vehicles.
new text end

new text begin (c) A public utility must give priority under this section to making investments in
communities whose governing body has enacted a resolution or goal supporting electric
vehicle adoption.
new text end

new text begin (d) A public utility must work with local communities to identify suitable high-density
locations, consistent with a community's local development plans, where electric vehicle
infrastructure may be strategically deployed.
new text end

new text begin Subd. 3. new text end

new text begin Transportation electrification plan; review and implementation. new text end

new text begin The
commission must review a transportation electrification plan filed under this section within
180 days of receiving the plan. The commission may approve, modify, or reject a
transportation electrification plan. When reviewing a public utility's transportation
electrification plan, the commission must consider whether the programs and expenditures:
new text end

new text begin (1) improve electric grid operation and the integration of renewable energy sources;
new text end

new text begin (2) increase access to the benefits of electricity as a transportation fuel in low-income
and rural communities;
new text end

new text begin (3) reduce statewide greenhouse gas emissions, as defined in section 216H.01, and
emissions of other air pollutants that impair the environment and public health;
new text end

new text begin (4) stimulate private capital investment and the creation of skilled jobs as a consequence
of widespread electric vehicle deployment;
new text end

new text begin (5) educate potential customers about the benefits of electric vehicles;
new text end

new text begin (6) support increased consumer choice with respect to electrical vehicle charging options
and related infrastructure; and
new text end

new text begin (7) are transparent and incorporate sufficient and frequent public reporting of program
activities to facilitate changes in program design and commission policy with respect to
electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) Notwithstanding any other provision of this chapter, the
commission may approve, with respect to any prudent and reasonable investment made by
a public utility to administer and implement a transportation electrification plan approved
under subdivision 3:
new text end

new text begin (1) a rider or other tariff mechanism for the automatic annual adjustment of charges;
new text end

new text begin (2) performance-based incentives; or
new text end

new text begin (3) placing the investment, including rebates, in the public utility's rate base and allowing
the public utility to earn a rate of return on the investment at (i) the public utility's average
weighted cost of capital, including the rate of return on equity, approved by the commission
in the public utility's most recent general rate case, or (ii) another rate determined by the
commission.
new text end

new text begin (b) Notwithstanding section 216B.16, subdivision 8, paragraph (a), clause (3), the
commission must approve recovery costs for expenses reasonably incurred by a public
utility to provide public advertisement as part of a transportation electrification plan approved
by the commission under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [216B.1616] ELECTRIC SCHOOL BUS DEPLOYMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Battery exchange station" means a physical location where equipment is deployed
that enables a used electric vehicle battery to be exchanged for a fully charged battery.
new text end

new text begin (c) "Electric school bus" means an electric vehicle that is a school bus.
new text end

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

new text begin (e) "Electric vehicle charging station" means a physical location deploying equipment
that delivers electricity to a battery in an electric vehicle.
new text end

new text begin (f) "Electric vehicle infrastructure" means electric vehicle charging stations and battery
exchange stations, and any other infrastructure necessary to make electricity from a public
utility's electric distribution system available to electric vehicle charging stations or battery
exchange stations.
new text end

new text begin (g) "Poor air quality" means:
new text end

new text begin (1) ambient air levels that air monitoring data reveals approach or exceed state or federal
air quality standards or chronic health inhalation risk benchmarks for any of the following
pollutants:
new text end

new text begin (i) total suspended particulates;
new text end

new text begin (ii) particulate matter less than ten microns wide (PM-10);
new text end

new text begin (iii) particulate matter less than 2.5 microns wide (PM-2.5);
new text end

new text begin (iv) sulfur dioxide; or
new text end

new text begin (v) nitrogen dioxide; or
new text end

new text begin (2) levels of asthma among children that significantly exceed the statewide average.
new text end

new text begin (h) "School bus" has the meaning given in section 169.011, subdivision 71.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin (a) A public utility may file with the commission a program to
promote deployment of electric school buses.
new text end

new text begin (b) The program may include but is not limited to the following elements:
new text end

new text begin (1) a school district may purchase one or more electric school buses;
new text end

new text begin (2) the public utility may provide a rebate to the school district for the incremental cost
the school district incurs to purchase one or more electric school buses compared with
fossil-fuel-powered school buses;
new text end

new text begin (3) at the request of a school district, the public utility may deploy on the school district's
real property electric vehicle infrastructure required for charging electric school buses;
new text end

new text begin (4) for any electric school bus purchased by a school district with a rebate provided by
the public utility, the school district must enter into a contract with the public utility under
which the school district:
new text end

new text begin (i) accepts any and all liability for operation of the electric school bus;
new text end

new text begin (ii) accepts responsibility to maintain and repair the electric school bus; and
new text end

new text begin (iii) must allow the public utility the option to own the electric school bus's battery at
the time the battery is retired from the electric school bus; and
new text end

new text begin (5) in collaboration with a school district, prioritize the deployment of electric school
buses in areas of the school district that suffer from poor air quality.
new text end

new text begin Subd. 3. new text end

new text begin Program review and implementation. new text end

new text begin The commission must approve, modify,
or reject a proposal for a program filed under this section within 180 days of the date the
proposal is received, based on the proposal's likelihood to, through prudent and reasonable
utility investments:
new text end

new text begin (1) accelerate deployment of electric school buses in the public utility's service territory,
particularly in areas with poor air quality; and
new text end

new text begin (2) reduce emissions of greenhouse gases and particulates compared to those produced
by fossil-fuel-powered school buses.
new text end

new text begin Subd. 4. new text end

new text begin Cost recovery. new text end

new text begin (a) The commission may allow any prudent and reasonable
investment made by a public utility on electric vehicle infrastructure installed on a school
district's real property, or a rebate provided under subdivision 2, to be placed in the public
utility's rate base and earn a rate of return as determined by the commission.
new text end

new text begin (b) Notwithstanding any other provision of this chapter, the commission may approve
a tariff mechanism for the automatic annual adjustment of charges for prudent and reasonable
investments made by a public utility to implement and administer a program approved by
the commission under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

new text begin [216C.401] ELECTRIC VEHICLE REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 216C.402, the
terms in this subdivision have the meanings given.
new text end

new text begin (b) "Dealer" means a person, firm, or corporation that possesses a new motor vehicle
license under chapter 168 and:
new text end

new text begin (1) regularly engages in the business of manufacturing or selling, purchasing, and
generally dealing in new and unused motor vehicles;
new text end

new text begin (2) has an established place of business to sell, trade, and display new and unused motor
vehicles; and
new text end

new text begin (3) possesses new and unused motor vehicles to sell or trade the motor vehicles.
new text end

new text begin (c) "Electric vehicle" means a passenger vehicle, as defined in section 169.011,
subdivision 52, that is also an electric vehicle, as defined in section 169.011, subdivision
26a, paragraph (a). Electric vehicle does not include a plug-in hybrid electric vehicle, as
defined in section 169.011, subdivision 54a.
new text end

new text begin (d) "Eligible new electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (a).
new text end

new text begin (e) "Eligible used electric vehicle" means an electric vehicle that meets the requirements
of subdivision 2, paragraph (c).
new text end

new text begin (f) "Lease" means a business transaction under which a dealer furnishes an eligible
electric vehicle to a person for a fee under a bailor-bailee relationship where no incidences
of ownership transferred, other than the right to use the vehicle for a term of at least 24
months.
new text end

new text begin (g) "Lessee" means a person who leases an eligible electric vehicle from a dealer.
new text end

new text begin (h) "New eligible electric vehicle" means an eligible electric vehicle that has not been
registered in any state.
new text end

new text begin Subd. 2. new text end

new text begin Eligible vehicle. new text end

new text begin (a) A new electric vehicle is eligible for a rebate under this
section if the vehicle meets all of the following conditions, and, if applicable, one of the
conditions of paragraph (b):
new text end

new text begin (1) has not been previously owned or has been returned to a dealer before the purchaser
or lessee takes delivery, even if the electric vehicle is registered in Minnesota;
new text end

new text begin (2) has not been modified from the original manufacturer's specifications;
new text end

new text begin (3) has a base manufacturer's suggested retail price that does not exceed $50,000;
new text end

new text begin (4) is purchased or leased after the effective date of this act for use by the purchaser and
not for resale; and
new text end

new text begin (5) is purchased or leased from a dealer or directly from an original equipment
manufacturer that does not have licensed franchised dealers in Minnesota.
new text end

new text begin (b) A new electric vehicle is eligible for a rebate under this section if, in addition to
meeting all of the conditions of paragraph (a), it also meets one or more of the following
conditions, if applicable:
new text end

new text begin (1) is used by a dealer as a floor model or test drive vehicle and has not been previously
registered in Minnesota or any other state; or
new text end

new text begin (2) is returned to a dealer by a purchaser or lessee within two weeks of purchase or
leasing or when a purchaser's financing for the new electric vehicle has been disapproved.
new text end

new text begin (c) A used electric vehicle is eligible for an electric vehicle rebate under this section if
the electric vehicle has previously been owned in this state or another state and has not been
modified from the original manufacturer's specifications.
new text end

new text begin Subd. 3. new text end

new text begin Eligible purchaser or lessee. new text end

new text begin A person who purchases or leases an eligible
new or used electric vehicle is eligible for a rebate under this section if the purchaser or
lessee:
new text end

new text begin (1) is one of the following:
new text end

new text begin (i) a resident of Minnesota, as defined in section 290.01, subdivision 7, paragraph (a),
when the electric vehicle is purchased or leased;
new text end

new text begin (ii) a business that has a valid address in Minnesota from which business is conducted;
new text end

new text begin (iii) a nonprofit corporation incorporated under chapter 317A; or
new text end

new text begin (iv) a political subdivision of the state;
new text end

new text begin (2) has not received a rebate or tax credit for the purchase or lease of an electric vehicle
from Minnesota; and
new text end

new text begin (3) registers the electric vehicle in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Rebate amounts. new text end

new text begin (a) A $2,000 rebate may be issued under this section to an
eligible purchaser to purchase or lease an eligible new electric vehicle.
new text end

new text begin (b) A $500 rebate may be issued under this section to an eligible purchaser or lessee of
an eligible used electric vehicle.
new text end

new text begin (c) A purchaser or lessee whose household income at the time the eligible electric vehicle
is purchased or leased is less than 150 percent of the current federal poverty guidelines
established by the Department of Health and Human Services is eligible for a rebate in
addition to a rebate under paragraph (a) or (b), as applicable, of $500 to purchase or lease
an eligible new electric vehicle and $100 to purchase or lease an eligible used electric
vehicle.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin The number of rebates allowed under this section is limited to:
new text end

new text begin (1) no more than one rebate per resident per household; and
new text end

new text begin (2) no more than one rebate per business entity per year.
new text end

new text begin Subd. 6. new text end

new text begin Program administration. new text end

new text begin (a) Rebate applications under this section must be
filed with the commissioner on a form developed by the commissioner.
new text end

new text begin (b) The commissioner must develop administrative procedures governing the application
and rebate award process. Applications must be reviewed and rebates awarded by the
commissioner on a first-come, first-served basis.
new text end

new text begin (c) The commissioner must, in coordination with dealers and other state agencies as
applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or
lessee at the point of sale so that the rebate amount may be subtracted from the selling price
of the eligible electric vehicle.
new text end

new text begin (d) The commissioner may reduce the rebate amounts provided under subdivision 4 or
restrict program eligibility based on fund availability or other factors.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

new text begin [216C.402] GRANT PROGRAM; MANUFACTURERS' CERTIFICATION
OF AUTO DEALERS TO SELL ELECTRIC VEHICLES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established in the Department of
Commerce to award grants to dealers to offset the costs of obtaining the necessary training
and equipment that is required by electric vehicle manufacturers in order to certify a dealer
to sell electric vehicles produced by the manufacturer.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin An application for a grant under this section must be made to the
commissioner on a form developed by the commissioner. The commissioner must develop
administrative procedures and processes to review applications and award grants under this
section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicants. new text end

new text begin An applicant for a grant awarded under this section must
be a dealer of new motor vehicles licensed under chapter 168 operating under a franchise
from a manufacturer of electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Eligible expenditures. new text end

new text begin Appropriations made to support the activities of this
section must be used only to reimburse:
new text end

new text begin (1) a dealer for the reasonable costs to obtain training and certification for the dealer's
employees from the electric vehicle manufacturer that awarded the franchise to the dealer;
new text end

new text begin (2) a dealer for the reasonable costs to purchase and install equipment to service and
repair electric vehicles, as required by the electric vehicle manufacturer that awarded the
franchise to the dealer; and
new text end

new text begin (3) the department for the reasonable costs to administer this section.
new text end

new text begin Subd. 5. new text end

new text begin Limitation. new text end

new text begin A grant awarded under this section to a single dealer must not
exceed $40,000.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin ELECTRIC VEHICLE CHARGING STATIONS; INSTALLATIONS IN
STATE AND REGIONAL PARKS.
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) "DC Fast charger" means electric vehicle charging station equipment that transfers
direct current electricity directly to an electric vehicle's battery.
new text end

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

new text begin (d) "Electric vehicle charging station" means infrastructure that connects an electric
vehicle to a Level 2 or DC Fast charger to recharge the electric vehicle's batteries.
new text end

new text begin (e) "Level 2 charger" means electric vehicle charging station equipment that transfers
208- to 240-volt alternating current electricity to a device in an electric vehicle that converts
alternating current to direct current to recharge an electric vehicle battery.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin The commissioner of natural resources, in consultation with the
commissioners of the Pollution Control Agency, administration, and commerce, must
develop and fund the installation of a network of electric vehicle charging stations in
Minnesota state parks located within the retail electric service area of a public utility subject
to Minnesota Statutes, section 116C.779, subdivision 1. The commissioners must issue a
request for proposals to entities that have experience installing, owning, operating, and
maintaining electric vehicle charging stations. The request for proposal must establish
technical specifications that electric vehicle charging stations are required to meet and must
request responders to address:
new text end

new text begin (1) the optimal number and location of charging stations installed in a given state park;
new text end

new text begin (2) alternative arrangements that may be made to allocate responsibility for electric
vehicle charging station (i) ownership, operation, and maintenance, and (ii) billing
procedures; and
new text end

new text begin (3) any other issues deemed relevant by the commissioners.
new text end

new text begin Subd. 3. new text end

new text begin Deployment; regional parks. new text end

new text begin The commissioner of natural resources may
allocate a portion of the appropriation under this section to install electric vehicle charging
stations in regional parks located within the retail electric service area of a public utility
that is subject to Minnesota Statutes, section 116C.779, subdivision 1.
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 ELECTRIC VEHICLE CHARGING STATIONS; INSTALLATIONS AT
COUNTY GOVERNMENT CENTERS.
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) "DC Fast charger" means electric vehicle charging station equipment that transfers
direct current electricity directly to an electric vehicle's battery.
new text end

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

new text begin (d) "Electric vehicle charging station" means infrastructure that connects an electric
vehicle to a Level 2 or DC Fast charger to recharge the electric vehicle's batteries.
new text end

new text begin (e) "Level 2 charger" means electric vehicle charging station equipment that transfers
208- to 240-volt alternating current electricity to a device in an electric vehicle that converts
alternating current to direct current to recharge an electric vehicle battery.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin The commissioner of commerce must develop and fund the installation
of a network of electric vehicle charging stations in public parking facilities at county
government centers located in Minnesota. The commissioner must issue a request for
proposals to entities that have experience installing, owning, operating, and maintaining
electric vehicle charging stations. The request for proposal must establish technical
specifications that electric vehicle charging stations are required to meet and must request
responders to address:
new text end

new text begin (1) the optimal number and location of charging stations installed at each county
government center;
new text end

new text begin (2) alternative arrangements that may be made to allocate responsibility for electric
vehicle charging station (i) ownership, operation, and maintenance, and (ii) billing
procedures;
new text end

new text begin (3) software used to allow payment for electricity consumed at the charging stations;
and
new text end

new text begin (4) any other issues deemed relevant by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin County role. new text end

new text begin (a) A county has a right of first refusal with respect to ownership
of electric vehicle charging stations receiving funding under this section and installed at the
county government center.
new text end

new text begin (b) A county may enter into agreements to (1) wholly or partially own, operate, or
maintain an electric vehicle charging system receiving funding under this section and
installed at the county government center, or (2) receive reports on the electric vehicle
charging system operations.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10. new text begin METROPOLITAN COUNCIL; ELECTRIC BUS PURCHASES.
new text end

new text begin Beginning on the effective date of this act, any bus purchased by the Metropolitan
Council for Metro Transit bus service must operate solely on electricity provided by
rechargeable on-board batteries. The appropriation in section 11, subdivision 8, must be
used to pay the incremental cost of buses that operate solely on electricity provided by
rechargeable on-board batteries over the cost of diesel-operated buses that are otherwise
comparable in size, features, and performance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires the day after the appropriation under section 11, subdivision 8, has been spent or is
canceled.
new text end

Sec. 11. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Electric vehicle rebates; Xcel service area. new text end

new text begin Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $9,000,000 in fiscal year 2022 and
$8,000,000 in fiscal year 2023 are appropriated from the renewable development account
under Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
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 purchasers
located within the retail electric service area of the public utility that is subject to Minnesota
Statutes, section 116C.779. These are onetime appropriations.
new text end

new text begin Subd. 2. new text end

new text begin Electric vehicle rebates; non-Xcel service area. new text end

new text begin $2,500,000 in fiscal year
2022 is appropriated from the general fund to the commissioner of commerce 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 purchasers located
outside the retail electric service area of the public utility that is subject to Minnesota Statutes,
section 116C.779. The commissioner of commerce may use up to three percent of the
appropriation made in this subdivision to pay for reasonable costs incurred to administer
the rebate program. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Auto dealer grants; Xcel service area. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to award grants under Minnesota Statutes,
section 216C.402, to automobile dealers seeking certification from an electric vehicle
manufacturer to sell electric vehicles. Rebates must be awarded under this paragraph only
to eligible dealers located within the retail electric service area of the public utility that is
subject to Minnesota Statutes, section 116C.779. The commissioner of commerce may use
up to three percent of the appropriation made in this subdivision to pay for reasonable costs
incurred to administer the rebate program. This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Auto dealer grants; non-Xcel service area. new text end

new text begin $500,000 in fiscal year 2022 is
appropriated from the general fund to the commissioner of commerce to award grants under
Minnesota Statutes, section 216C.402, to automobile dealers seeking certification to sell
electric vehicles. Rebates must be awarded under this paragraph only 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.
new text end

new text begin Subd. 5. new text end

new text begin Transportation electrification plan. new text end

new text begin $28,000 in fiscal year 2022 and $28,000
in fiscal year 2023 are appropriated from the general fund to the Public Utilities Commission
for activities associated with the implementation of transportation electrification plans under
Minnesota Statutes, section 216B.1615.
new text end

new text begin Subd. 6. new text end

new text begin Electric school buses. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated from
the renewable development account established under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to purchase electric school buses under
Minnesota Statutes, section 216B.1616. This is a onetime appropriation.
new text end

new text begin (b) $30,000 in fiscal year 2022 and $30,000 in fiscal year 2023 are appropriated from
the general fund to the commissioner of commerce for activities associated with the electric
school bus deployment program under Minnesota Statutes, section 216B.161. These are
onetime appropriations.
new text end

new text begin (c) $28,000 in fiscal year 2022 and $28,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission for activities associated with the electric
school bus deployment program under Minnesota Statutes, section 216B.161. These are
onetime appropriations.
new text end

new text begin Subd. 7. new text end

new text begin Charging stations; parks. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 and $59,000 in fiscal
year 2023 are appropriated from the renewable development account established in Minnesota
Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for transfer to
the commissioner of natural resources to install electric vehicle charging stations in state
and regional parks located in a county some portion of which is within the retail electric
service area of the public utility subject to Minnesota Statutes, section 116C.779, subdivision
1, as described in section 8.
new text end

new text begin Subd. 8. new text end

new text begin Charging stations; counties. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce to install electric vehicle charging stations
in parking facilities at county government centers located in a county some portion of which
is within the retail electric service area of the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1, as described in section 9. The commissioner of commerce
may use up to three percent of the appropriation made in this subdivision to pay for
reasonable costs incurred to administer the charging station installation program. This is a
onetime appropriation.
new text end

new text begin Subd. 9. new text end

new text begin Electric buses; Metropolitan Council. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $5,000,000 in fiscal year 2022 is appropriated
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the Metropolitan Council
to defray the cost of purchasing electric buses, as described in section 10. This appropriation
does not cancel and is available until there is insufficient money remaining to completely
defray the cost of purchasing one additional electric bus, as described in section 10. Any
remaining money cancels back to the renewable development account under Minnesota
Statutes, section 116C.779, subdivision 1. This is a onetime appropriation.
new text end

ARTICLE 11

SOLAR ENERGY

Section 1.

Minnesota Statutes 2020, section 216B.164, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Customer's access to electricity usage data. new text end

new text begin A utility shall provide a
customer's electricity usage data to the customer within ten days of receipt of a request from
the customer that is accompanied by evidence that the energy usage data is relevant to the
interconnection of a qualifying facility on behalf of the customer. For the purposes of this
subdivision, "electricity usage data" includes but is not limited to the total amount of
electricity used by a customer monthly, usage by time period if the customer operates under
a tariff where costs vary by time-of-use, and usage data that is used to calculate a customer's
demand charge.
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 2020, section 216B.1641, is amended to read:

216B.1641 COMMUNITY SOLAR GARDEN.

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) "Subscribed energy" means electricity generated by the community solar garden that
is attributable to a subscriber's subscription.
new text end

new text begin (c) "Subscriber" means a retail customer who owns one or more subscriptions of a
community solar garden interconnected with the retail customer's utility.
new text end

new text begin (d) "Subscription" means a contract between a subscriber and the owner of a solar garden.
new text end

new text begin Subd. 2. new text end

new text begin Solar garden; project requirements. new text end

(a) The public utility subject to section
116C.779 shall file by September 30, 2013, a plan with the commission to operate a
community solar garden program which shall begin operations within 90 days after
commission approval of the plan. Other public utilities may file an application at their
election. The community solar garden program must be designed to offset the energy use
of not less than five subscribers in each community solar garden facility of which no single
subscriber has more than a 40 percent interest. The owner of the community solar garden
may be a public utility or any other entity or organization that contracts to sell the output
from the community solar garden to the utility under section 216B.164. There shall be no
limitation on the number or cumulative generating capacity of community solar garden
facilities other than the limitations imposed under section 216B.164, subdivision 4c, or
other limitations provided in law or regulations.

(b) A solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must
have a nameplate capacity of no more than deleted text begin one megawatt deleted text end new text begin three megawatts new text end . Each subscription
shall be sized to represent at least 200 watts of the community solar garden's generating
capacity and to supply, when combined with other distributed generation resources serving
the premises, no more than 120 percent of the average annual consumption of electricity
by each subscriber at the premises to which the subscription is attributed.

(c) The solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility new text begin and, unless
the facility has a minimum setback of 100 feet from the nearest residential property, must
be new text end located in the same county or a county contiguous to where the facility is located.

(d) The public utility must purchase from the community solar garden all energy generated
by the solar garden. new text begin Unless specified elsewhere in this section, new text end the purchase shall be at the
new text begin most recent three-year average of the new text end rate calculated under section 216B.164, subdivision
10, or, until that rate for the public utility has been approved by the commission, the
applicable retail rate. new text begin A public utility may only purchase energy generated by the solar
garden at the rate calculated under section 216B.164, subdivision 10, if the owner of the
community solar garden has certified to the utility that no child labor or slave labor was
used to extract the materials that compose the community garden's solar panels. new text end A solar
garden is eligible for any incentive programs offered under section 116C.7792. A subscriber's
portion of the purchase shall be provided by a credit on the subscriber's bill.

new text begin Subd. 3. new text end

new text begin Solar garden plan; requirements; nonutility status. new text end

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

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

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

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

(4) be consistent with the public interest;

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

(6) include a program implementation schedule;

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

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

new text begin (9) require that residential subscribers have a right to cancel a community solar garden
subscription within three business days, as provided under section 325G.07;
new text end

new text begin (10) require that the following information is provided by the solar garden owner in
writing to any prospective subscriber asked to make a prepayment to the solar garden owner
prior to the delivery of subscribed energy by the solar garden:
new text end

new text begin (i) an estimate of the annual generation of subscribed energy, based on the methodology
approved by the commission; and
new text end

new text begin (ii) an estimate of the length of time required to fully recover a subscriber's prepayments
made to the owner of the solar garden prior to the delivery of subscribed energy, calculated
using the formula developed by the commission under paragraph (d); and
new text end

new text begin (11) require new residential subscription agreements that require a prepayment to allow
the subscriber to transfer the subscription to other new or current subscribers, or to cancel
the subscription, on commercially reasonable terms; and
new text end

new text begin (12) require an owner of a solar garden to submit a report that meets the requirements
of section 216C.51, subdivisions 3 and 4, each year the solar garden is in operation.
new text end

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Community access project; eligibility. new text end

new text begin (a) An owner of a community solar
garden may apply to the utility to be designated as a community access project at any time:
new text end

new text begin (1) before the owner makes an initial payment under an interconnection agreement
entered into with a public utility; or
new text end

new text begin (2) if the owner made an initial payment under an interconnection agreement between
January 1, 2021, and the effective date of this act, before commercial operation begins.
new text end

new text begin (b) The utility must designate a solar garden as a community access project if the owner
of a solar garden commits in writing to meet the following conditions:
new text end

new text begin (1) at least 50 percent of the solar garden's generating capacity is subscribed by residential
customers;
new text end

new text begin (2) the contract between the owner of the solar garden and the public utility that purchases
the garden's electricity, and any agreement between the utility or owner of the solar garden
and subscribers, states that the owner of the solar garden does not discriminate against or
screen subscribers based on income or credit score and that any customer of a utility with
a community solar garden plan approved by the commission under subdivision 3 is eligible
to become a subscriber;
new text end

new text begin (3) the solar garden is operated by an entity that maintains a physical address in Minnesota
and has designated a contact person in Minnesota who responds to subscriber inquiries; and
new text end

new text begin (4) the agreement between the owner of the solar garden and subscribers states that the
owner must adequately publicize and convene at least one meeting annually to provide an
opportunity for subscribers to pose questions to the manager or owner.
new text end

new text begin Subd. 5. new text end

new text begin Community access project; financial arrangements. new text end

new text begin (a) If a solar garden is
approved by the utility as a community access project:
new text end

new text begin (1) the public utility purchasing the electricity generated by the community access project
may charge the owner of the community access project no more than one cent per watt
alternating current based on the solar garden's generating capacity for any refundable deposit
the utility requires of a solar garden during the application process;
new text end

new text begin (2) notwithstanding subdivision 2, paragraph (d), the public utility must purchase all
energy generated by the community access project at the retail rate; and
new text end

new text begin (3) all renewable energy credits generated by the community access project belong to
subscribers unless the owner of the solar garden:
new text end

new text begin (i) contracts to:
new text end

new text begin (A) sell the credits to a third party; or
new text end

new text begin (B) sell or transfer the credits to the utility; and
new text end

new text begin (ii) discloses a sale or transfer to subscribers at the time the subscribers enter into a
subscription.
new text end

new text begin (b) If at any time after commercial operation begins a solar garden approved by the
utility as a community access project fails to meet the conditions under subdivision 4, the
solar garden is no longer subject to the provisions of this subdivision and subdivision 6,
and must operate under the program rules established by the commission for a solar garden
that does not qualify as a community access project.
new text end

new text begin (c) An owner of a solar garden whose designation as a community access project is
revoked under this subdivision may reapply to the commission at any time to have the
designation as a community access project reinstated under subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Community access project; reporting. new text end

new text begin The owner of a community access
project must include the following information in an annual report to the community access
project subscribers and the utility:
new text end

new text begin (1) a description of the process by which subscribers can provide input to solar garden
policy and decision making;
new text end

new text begin (2) the amount of revenues received by the solar garden in the previous year that were
allocated to categories that include but are not limited to operating costs, debt service, profits
distributed to subscribers, and profits distributed to others; and
new text end

new text begin (3) an estimate of the proportion of low- and moderate-income subscribers, and a
description of one or more of the following methods used to make the estimate:
new text end

new text begin (i) evidence provided by a subscriber that the subscriber or a member of the subscriber's
household receives assistance from any of the following sources:
new text end

new text begin (A) the federal Low-Income Home Energy Assistance Program;
new text end

new text begin (B) federal Section 8 housing assistance;
new text end

new text begin (C) medical assistance;
new text end

new text begin (D) the federal Supplemental Nutrition Assistance Program; or
new text end

new text begin (E) the federal National School Lunch Program;
new text end

new text begin (ii) characterization of the census tract where the subscriber resides as low- or
moderate-income by the Federal Financial Institutions Examination Council; or
new text end

new text begin (iii) other methods approved by the commission.
new text end

new text begin Subd. 7. new text end

new text begin Commission order. new text end

new text begin Within 180 days of the effective date of this section, the
commission must issue an order addressing the requirements of 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. 3.

new text begin [216C.375] SOLAR FOR SCHOOLS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section 216C.376,
the following terms have the meanings given.
new text end

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin A solar for schools program is established in the
Department of Commerce. The purpose of the program is to (1) provide grants to stimulate
the installation of solar energy systems on or adjacent to school buildings by reducing the
cost, and (2) enable schools to use the solar energy system as a teaching tool that can be
integrated into the school's curriculum.
new text end

new text begin Subd. 3. new text end

new text begin Establishment of account. new text end

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

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

new text begin Subd. 4. new text end

new text begin Expenditures. new text end

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

new text begin (1) to award grants under this section; and
new text end

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

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

new text begin Subd. 5. new text end

new text begin Eligible system. new text end

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

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

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

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

new text begin Subd. 6. new text end

new text begin Application process. new text end

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

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

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

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

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

new text begin (4) the total cost to purchase and install the solar energy system and the solar energy
system's life-cycle cost, including removal and disposal at the end of the system's life;
new text end

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

new text begin (6) the school's plan to make the solar energy system serve as a visible learning tool for
students, teachers, and visitors to the school, including how the solar energy system may
be integrated into the school's curriculum and provisions for real-time monitoring of the
solar energy system performance for display in a prominent location in the school or
on-demand in the classroom;
new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 7. new text end

new text begin Energy conservation review. new text end

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

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

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

new text begin Subd. 9. new text end

new text begin Grant payments. new text end

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

new text begin Subd. 10. new text end

new text begin Limitations. new text end

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

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

new text begin Subd. 11. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The utility subject to section 116C.779 must
operate a program to develop and to supplement with additional funding financial
arrangements that enable schools to install and operate solar energy systems that can be
used as teaching tools and integrated into the school curriculum.
new text end

new text begin Subd. 2. new text end

new text begin Required plan. new text end

new text begin (a) By October 1, 2021, the public utility must file a plan for
the solar for schools program with the commissioner. The plan must contain, at a minimum,
the following elements:
new text end

new text begin (1) a description of how the public utility proposes to utilize funds appropriated to the
program to assist schools to install solar energy systems;
new text end

new text begin (2) an estimate of the amount of financial assistance that the public utility proposes to
provide to a school, on a per kilowatt-hour produced basis, and the length of time the public
utility estimates financial assistance is provided to a school;
new text end

new text begin (3) administrative procedures governing the application and financial benefit award
process, and the costs the public utility is projected to incur to administer the program;
new text end

new text begin (4) the public utility's proposed process for periodic reevaluation and modification of
the program; and
new text end

new text begin (5) any additional information required by the commissioner.
new text end

new text begin (b) The public utility may not implement the program until the commissioner approves
the public utility's plan submitted under this subdivision. The commissioner may modify a
plan, and no later than December 31, 2021, the commissioner must approve a plan and the
financial incentives the plan provides the public utility if the commissioner determines both
are in the public interest. Any proposed modifications to the plan approved under this
subdivision must be approved by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin System eligibility. new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Application process. new text end

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

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

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

new text begin Subd. 5. new text end

new text begin Benefits information. new text end

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

new text begin Subd. 6. new text end

new text begin Cost recovery; renewable energy credits. new text end

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

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

new text begin Subd. 7. new text end

new text begin Limitation. new text end

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

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

new text begin Subd. 8. new text end

new text begin Technical assistance. new text end

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

new text begin Subd. 9. new text end

new text begin Application deadline. new text end

new text begin No application may be submitted under this section
after December 31, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2020, section 216E.01, subdivision 9a, is amended to read:

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 new text begin , 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 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

new text begin [500.216] LIMITS ON CERTAIN RESIDENTIAL SOLAR ENERGY
SYSTEMS PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin General rule. new text end

new text begin A private entity must not prohibit or refuse to permit
installation, maintenance, or use of a roof-mounted solar energy system by the owner of a
single-family dwelling, notwithstanding any covenant, restriction, or condition contained
in a deed, security instrument, homeowners association document, or any other instrument
affecting the transfer, sale of, or an interest in real property, except as provided in this
section.
new text end

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin This section applies to single-family detached dwellings whose
owner is the sole owner of the entire building in which the dwelling is located and who is
solely responsible for the maintenance, repair, replacement, and insurance of the entire
building.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Private entity" means a homeowners association, community association, or other
association that is subject to a homeowners association document.
new text end

new text begin (c) "Homeowners association document" means a document containing the declaration,
articles of incorporation, bylaws, or rules and regulations of:
new text end

new text begin (1) a common interest community, as defined in section 515B.1-103, regardless of
whether the common interest community is subject to chapter 515B; and
new text end

new text begin (2) a residential community that is not a common interest community.
new text end

new text begin (d) "Solar energy system" has the meaning given in section 216C.06, subdivision 17.
new text end

new text begin Subd. 4. new text end

new text begin Allowable conditions. new text end

new text begin (a) This section does not prohibit a private entity from
requiring that:
new text end

new text begin (1) a licensed contractor install a solar energy system;
new text end

new text begin (2) a roof-mounted solar energy system not extend above the peak of a pitched roof or
beyond the edge of the roof;
new text end

new text begin (3) the owner or installer of a solar energy system indemnify or reimburse the private
entity or the private entity's members for loss or damage caused by the installation,
maintenance, use, repair, or removal of a solar energy system;
new text end

new text begin (4) the owner and each successive owner of a solar energy system list the private entity
as a certificate holder on the homeowner's insurance policy; or
new text end

new text begin (5) the owner and each successive owner of a solar energy system be responsible for
removing the system if reasonably necessary for the repair, maintenance, or replacement
of common elements or limited common elements, as defined in section 515B.1-103.
new text end

new text begin (b) A private entity may impose other reasonable restrictions on the installation,
maintenance, or use of solar energy systems, provided that those restrictions do not decrease
the projected generation of energy by a solar energy system by more than 20 percent or
increase the solar energy system's cost by more than (1) 20 percent for a solar water heater,
or (2) $2,000 for a solar photovoltaic system, compared with the generation of energy and
the cost of labor and materials certified by the designer or installer of the solar energy system
as originally proposed without the restrictions. A private entity may obtain an alternative
bid and design from a solar energy system designer or installer for the purposes of this
paragraph.
new text end

new text begin (c) A solar energy system must meet applicable standards and requirements imposed by
the state and by governmental units, as defined in section 462.384.
new text end

new text begin (d) A solar energy system for heating water must be certified by the Solar Rating
Certification Corporation (SRCC) or an equivalent certification agency. A solar energy
system for producing electricity must meet all applicable safety and performance standards
established by the National Electrical Code, the Institute of Electrical and Electronics
Engineers and accredited testing laboratories including but not limited to Underwriters
Laboratories and, where applicable, rules of the Public Utilities Commission regarding
safety and reliability.
new text end

new text begin (e) If approval by a private entity is required to install or use a solar energy system, the
application for approval must be processed and approved in the same manner as an
application for approval of an architectural modification to the property, and must not be
willfully avoided or delayed.
new text end

new text begin (f) An application for approval must be made in writing and must contain certification
that the applicant meets any conditions required by a private entity under this subdivision.
An application must include a copy of the interconnection application submitted to the
applicable electric utility.
new text end

new text begin (g) A private entity shall approve or deny an application in writing. If an application is
not denied in writing within 60 days from the date of receipt of the application, the application
is deemed approved unless the delay is the result of a reasonable request for additional
information. If a private entity receives an incomplete application that it determines prevents
it from reaching a decision to approve or disapprove the application, a new 60-day limit
begins only if the private entity sends written notice to the applicant, within 15 business
days of receiving the incomplete application, informing the applicant what additional
information is required.
new text end

Sec. 7.

Minnesota Statutes 2020, section 515.07, is amended to read:

515.07 COMPLIANCE WITH COVENANTS, BYLAWS, AND RULES.

Each apartment owner shall comply strictly with the bylaws and with the administrative
rules adopted pursuant thereto, as either of the same may be lawfully amended from time
to time, and with the covenants, conditions, and restrictions set forth in the declaration or
in the owner's deed to the apartment. Failure to comply with any of the same shall be ground
for an action to recover sums due, for damages or injunctive relief or both maintainable by
the manager or board of directors on behalf of the association of apartment owners or, in a
proper case, by an aggrieved apartment owner. This chapter is subject to deleted text begin section deleted text end new text begin sections new text end
500.215 new text begin and 500.216 new text end .

Sec. 8.

Minnesota Statutes 2020, section 515B.2-103, is amended to read:

515B.2-103 CONSTRUCTION AND VALIDITY OF DECLARATION AND
BYLAWS.

(a) All provisions of the declaration and bylaws are severable.

(b) The rule against perpetuities may not be applied to defeat any provision of the
declaration or this chapter, or any instrument executed pursuant to the declaration or this
chapter.

(c) In the event of a conflict between the provisions of the declaration and the bylaws,
the declaration prevails except to the extent that the declaration is inconsistent with this
chapter.

(d) The declaration and bylaws must comply with deleted text begin section deleted text end new text begin sections new text end 500.215 new text begin and 500.216 new text end .

Sec. 9.

Minnesota Statutes 2020, section 515B.3-102, is amended to read:

515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.

(a) Except as provided in subsections (b), (c), (d), and (e), and subject to the provisions
of the declaration or bylaws, the association shall have the power to:

(1) adopt, amend and revoke rules and regulations not inconsistent with the articles of
incorporation, bylaws and declaration, as follows: (i) regulating the use of the common
elements; (ii) regulating the use of the units, and conduct of unit occupants, which may
jeopardize the health, safety or welfare of other occupants, which involves noise or other
disturbing activity, or which may damage the common elements or other units; (iii) regulating
or prohibiting animals; (iv) regulating changes in the appearance of the common elements
and conduct which may damage the common interest community; (v) regulating the exterior
appearance of the common interest community, including, for example, balconies and patios,
window treatments, and signs and other displays, regardless of whether inside a unit; (vi)
implementing the articles of incorporation, declaration and bylaws, and exercising the
powers granted by this section; and (vii) otherwise facilitating the operation of the common
interest community;

(2) adopt and amend budgets for revenues, expenditures and reserves, and levy and
collect assessments for common expenses from unit owners;

(3) hire and discharge managing agents and other employees, agents, and independent
contractors;

(4) institute, defend, or intervene in litigation or administrative proceedings (i) in its
own name on behalf of itself or two or more unit owners on matters affecting the common
elements or other matters affecting the common interest community or, (ii) with the consent
of the owners of the affected units on matters affecting only those units;

(5) make contracts and incur liabilities;

(6) regulate the use, maintenance, repair, replacement, and modification of the common
elements and the units;

(7) cause improvements to be made as a part of the common elements, and, in the case
of a cooperative, the units;

(8) acquire, hold, encumber, and convey in its own name any right, title, or interest to
real estate or personal property, but (i) common elements in a condominium or planned
community may be conveyed or subjected to a security interest only pursuant to section
515B.3-112, or (ii) part of a cooperative may be conveyed, or all or part of a cooperative
may be subjected to a security interest, only pursuant to section 515B.3-112;

(9) grant or amend easements for public utilities, public rights-of-way or other public
purposes, and cable television or other communications, through, over or under the common
elements; grant or amend easements, leases, or licenses to unit owners for purposes authorized
by the declaration; and, subject to approval by a vote of unit owners other than declarant
or its affiliates, grant or amend other easements, leases, and licenses through, over or under
the common elements;

(10) impose and receive any payments, fees, or charges for the use, rental, or operation
of the common elements, other than limited common elements, and for services provided
to unit owners;

(11) impose interest and late charges for late payment of assessments and, after notice
and an opportunity to be heard before the board or a committee appointed by it, levy
reasonable fines for violations of the declaration, bylaws, and rules and regulations of the
association;

(12) impose reasonable charges for the review, preparation and recordation of
amendments to the declaration, resale certificates required by section 515B.4-107, statements
of unpaid assessments, or furnishing copies of association records;

(13) provide for the indemnification of its officers and directors, and maintain directors'
and officers' liability insurance;

(14) provide for reasonable procedures governing the conduct of meetings and election
of directors;

(15) exercise any other powers conferred by law, or by the declaration, articles of
incorporation or bylaws; and

(16) exercise any other powers necessary and proper for the governance and operation
of the association.

(b) Notwithstanding subsection (a) the declaration or bylaws may not impose limitations
on the power of the association to deal with the declarant which are more restrictive than
the limitations imposed on the power of the association to deal with other persons.

(c) Notwithstanding subsection (a), powers exercised under this section must comply
with deleted text begin section deleted text end new text begin sections new text end 500.215 new text begin and 500.216 new text end .

(d) Notwithstanding subsection (a)(4) or any other provision of this chapter, the
association, before instituting litigation or arbitration involving construction defect claims
against a development party, shall:

(1) mail or deliver written notice of the anticipated commencement of the action to each
unit owner at the addresses, if any, established for notices to owners in the declaration and,
if the declaration does not state how notices are to be given to owners, to the owner's last
known address. The notice shall specify the nature of the construction defect claims to be
alleged, the relief sought, and the manner in which the association proposes to fund the cost
of pursuing the construction defect claims; and

(2) obtain the approval of owners of units to which a majority of the total votes in the
association are allocated. Votes allocated to units owned by the declarant, an affiliate of the
declarant, or a mortgagee who obtained ownership of the unit through a foreclosure sale
are excluded. The association may obtain the required approval by a vote at an annual or
special meeting of the members or, if authorized by the statute under which the association
is created and taken in compliance with that statute, by a vote of the members taken by
electronic means or mailed ballots. If the association holds a meeting and voting by electronic
means or mailed ballots is authorized by that statute, the association shall also provide for
voting by those methods. Section 515B.3-110(c) applies to votes taken by electronic means
or mailed ballots, except that the votes must be used in combination with the vote taken at
a meeting and are not in lieu of holding a meeting, if a meeting is held, and are considered
for purposes of determining whether a quorum was present. Proxies may not be used for a
vote taken under this paragraph unless the unit owner executes the proxy after receipt of
the notice required under subsection (d)(1) and the proxy expressly references this notice.

(e) The association may intervene in a litigation or arbitration involving a construction
defect claim or assert a construction defect claim as a counterclaim, crossclaim, or third-party
claim before complying with subsections (d)(1) and (d)(2) but the association's complaint
in an intervention, counterclaim, crossclaim, or third-party claim shall be dismissed without
prejudice unless the association has complied with the requirements of subsection (d) within
90 days of the association's commencement of the complaint in an intervention or the
assertion of the counterclaim, crossclaim, or third-party claim.

Sec. 10. new text begin PHOTOVOLTAIC DEMAND CREDIT RIDER.
new text end

new text begin By October 1, 2021, an investor-owned utility that has not already done so must submit
to the Public Utilities Commission a photovoltaic demand credit rider that reimburses all
demand metered customers with solar photovoltaic systems greater than 40 kilowatts
alternating current for the demand charge overbilling that occurs. The utility may submit
to the commission multiple options to calculate reimbursement for demand charge overbilling.
At least one submission must use a capacity value stack methodology. The commission is
prohibited from approving a photovoltaic demand credit rider unless the rider allows
stand-alone photovoltaic systems and photovoltaic systems coupled with storage. The
commission must approve the photovoltaic demand credit rider by June 30, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin SITING SOLAR ENERGY GENERATING SYSTEMS ON PRIME
FARMLAND.
new text end

new text begin (a) The Public Utilities Commission must amend Minnesota Rules, section 7850.4400,
subpart 4, to allow the siting of a solar energy generating system on prime farmland that
meets any of the following conditions:
new text end

new text begin (1) the site has been identified as a sensitive groundwater area by the Department of
Natural Resources under Minnesota Statutes, section 103H.101;
new text end

new text begin (2) the owner of the solar energy generating system has entered into an agreement with
the Board of Soil and Water Resources committing the owner to comply with the provisions
of Minnesota Statutes, section 216B.1642, by establishing on the site perennial vegetation
and foraging habitat beneficial to game birds, songbirds, and pollinators, and to report to
the board every three years on progress made toward establishing beneficial habitat; or
new text end

new text begin (3) the solar energy generating system is colocated with and does not disrupt the operation
of agricultural uses, including but not limited to grazing and harvesting forage.
new text end

new text begin (b) The commission shall comply with Minnesota Statutes, section 14.389, in adopting
rules 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. 12. new text begin DEPARTMENT OF ADMINISTRATION; MASTER SOLAR CONTRACT
PROGRAM.
new text end

new text begin The Department of Administration shall not extend the term of its current on-site solar
photovoltaic master contract, but shall instead, no later than February 1, 2022, announce
an open request for proposals for a new statewide on-site solar photovoltaic master contract
to allow additional applicants to submit proposals to enable their participation in the state's
solar master contract program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Solar on schools; non-Xcel service territory. new text end

new text begin $1,737,000 in fiscal year
2022 is appropriated from the general fund to the commissioner of commerce to provide
financial assistance to schools to purchase and install solar energy generating systems under
Minnesota Statutes, section 216C.375. This appropriation remains available until expended
and does not cancel to the general fund. 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. The base in fiscal year 2024 is $388,000.
new text end

new text begin Subd. 2. new text end

new text begin Solar on schools; Xcel service territory. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $5,000,000 in fiscal year 2022 and $5,000,000
in fiscal year 2023 are appropriated from the renewable development account established
in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to provide financial assistance to schools to purchase and install solar energy generating
systems under Minnesota Statutes, section 216C.376. This appropriation remains available
until expended and does not cancel to the renewable development account. This appropriation
must be expended on schools located within the electric service territory of the public utility
that is subject to Minnesota Statutes, section 116C.779. These are onetime appropriations.
new text end

new text begin Subd. 3. new text end

new text begin Solar devices; state parks. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $2,000,000 in fiscal year 2022 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the commissioner of natural
resources to install solar photovoltaic devices in state parks located within the retail electric
service area of a public utility subject to Minnesota Statutes, section 116C.779, subdivision
1. This appropriation is available until June 30, 2023. This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Solar devices; state buildings. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $4,000,000 in fiscal year 2022 is appropriated from
the renewable development account established in Minnesota Statutes, section 116C.779,
subdivision 1, to the commissioner of commerce for transfer to the commissioner of
administration to install solar photovoltaic devices on state-owned buildings that are located
within the retail electric service area of the public utility subject to Minnesota Statutes,
section 116C.779, subdivision 1.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph
(j), $59,000 in fiscal year 2022 and $38,000 in fiscal year 2023 are appropriated from the
renewable development account to the commissioner of administration for costs to administer
the installation of solar photovoltaic devices on state-owned buildings that are located within
the retail electric service area of the public utility subject to Minnesota Statutes, section
116C.779, subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Solar on prime farmland. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), $14,000 in fiscal year 2022 and $14,000 in fiscal
year 2023 are appropriated from the renewable development account established under
Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce for
transfer to the Board of Water and Soil Resources for activities associated with installing
solar energy generating systems on prime farmland, as described in section 6.
new text end

new text begin (b) $46,000 in fiscal year 2022 is appropriated from the general fund to the Public
Utilities Commission for activities associated with installing solar energy systems on prime
farmland, as described in section 6. This is a onetime appropriation.
new text end

new text begin Subd. 6. new text end

new text begin Mountain Iron solar plant expansion. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $5,500,000 in fiscal year 2021 is appropriated
from the renewable development account established in Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of employment and economic development
for a grant to the Mountain Iron Economic Development Authority to expand a city-owned
solar module manufacturing plant building in the city's Renewable Energy Industrial Park.
This is a onetime appropriation. Any unexpended funds remaining as of June 30, 2022,
must be returned to the renewable development account under Minnesota Statutes, section
116C.779, subdivision 1.
new text end

new text begin Subd. 7. new text end

new text begin Northfield distribution system upgrades. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C. 779, subdivision 1, paragraph (j), $550,000 in fiscal year 2022 is appropriated
from the renewable development account established in Minnesota Statutes, section
116C.779, subdivision 1, to the commissioner of commerce for transfer to the public utility
that is subject to Minnesota Statutes, section 116C.779, subdivision 1, to upgrade the utility's
distribution system in and bordering on the city of Northfield to enable the interconnection
of additional customer-sited solar deployment. No later than October 15, 2021, the public
utility that is to receive the transferred funds must submit a report to the commissioner of
commerce, the Public Utilities Commission, and to the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over energy policy
and finance describing how the utility proposes to utilize the transfer made under this
subdivision, including the specific locations identified for additional equipment installation,
the nature of the equipment, and the amount of incremental capacity that results from the
installation of the equipment. The commissioner must not transfer the funds appropriated
under this subdivision to the public utility until the commissioner and the Public Utilities
Commission have reviewed and approved the report.
new text end

ARTICLE 12

ENERGY MISCELLANEOUS

Section 1.

Minnesota Statutes 2020, section 115B.40, subdivision 1, is amended to read:

Subdivision 1.

Response to releases.

The commissioner may take any environmental
response action, including emergency action, related to a release or threatened release of a
hazardous substance, pollutant or contaminant, or decomposition gas from a qualified facility
that the commissioner deems reasonable and necessary to protect the public health or welfare
or the environment under the standards required in sections 115B.01 to 115B.20. The
commissioner may undertake studies necessary to determine reasonable and necessary
environmental response actions at individual facilities. The commissioner may develop
general work plans for environmental studies, presumptive remedies, and generic remedial
designs for facilities with similar characteristics new text begin , as well as implement reuse and
redevelopment strategies new text end . Prior to selecting environmental response actions for a facility,
the commissioner shall hold at least one public informational meeting near the facility and
provide for receiving and responding to comments related to the selection. The commissioner
shall design, implement, and provide oversight consistent with the actions selected under
this subdivision.

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 2020, 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.

(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 deleted text begin , deleted text end new text begin :
new text end

new text begin (1) new text end potential benefit to Minnesota citizens and businesses and the utility's ratepayers deleted text begin . deleted text end new text begin ;
and
new text end

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

(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 new text begin following any year in which the commission has acted on
recommendations submitted by the advisory group and the public utility new text end . 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.

(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.

(r) 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. new text begin 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.
new text end

(s) 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.

(t) 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.

(u) Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

Sec. 3.

Minnesota Statutes 2020, section 216B.096, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The terms used in this section have the meanings given them
in this subdivision.

(b) "Cold weather period" means the period from October deleted text begin 15 deleted text end new text begin 1 new text end through April deleted text begin 15 deleted text end new text begin 30 new text end of
the following year.

(c) "Customer" means a residential customer of a utility.

(d) "Disconnection" means the involuntary loss of utility heating service as a result of
a physical act by a utility to discontinue service. Disconnection includes installation of a
service or load limiter or any device that limits or interrupts utility service in any way.

(e) "Household income" means the combined income, as defined in section 290A.03,
subdivision 3, of all residents of the customer's household, computed on an annual basis.
Household income does not include any amount received for energy assistance.

(f) "Reasonably timely payment" means payment within five working days of agreed-upon
due dates.

(g) "Reconnection" means the restoration of utility heating service after it has been
disconnected.

(h) "Summary of rights and responsibilities" means a commission-approved notice that
contains, at a minimum, the following:

(1) an explanation of the provisions of subdivision 5;

(2) an explanation of no-cost and low-cost methods to reduce the consumption of energy;

(3) a third-party notice;

(4) ways to avoid disconnection;

(5) information regarding payment agreements;

(6) an explanation of the customer's right to appeal a determination of income by the
utility and the right to appeal if the utility and the customer cannot arrive at a mutually
acceptable payment agreement; and

(7) a list of names and telephone numbers for county and local energy assistance and
weatherization providers in each county served by the utility.

(i) "Third-party notice" means a commission-approved notice containing, at a minimum,
the following information:

(1) a statement that the utility will send a copy of any future notice of proposed
disconnection of utility heating service to a third party designated by the residential customer;

(2) instructions on how to request this service; and

(3) a statement that the residential customer should contact the person the customer
intends to designate as the third-party contact before providing the utility with the party's
name.

(j) "Utility" means a public utility as defined in section 216B.02, and a cooperative
electric association electing to be a public utility under section 216B.026. Utility also means
a municipally owned gas or electric utility for nonresident consumers of the municipally
owned utility and a cooperative electric association when a complaint in connection with
utility heating service during the cold weather period is filed under section 216B.17,
subdivision 6 or 6a.

(k) "Utility heating service" means natural gas or electricity used as a primary heating
source, including electricity service necessary to operate gas heating equipment, for the
customer's primary residence.

(l) "Working days" means Mondays through Fridays, excluding legal holidays. The day
of receipt of a personally served notice and the day of mailing of a notice shall not be counted
in calculating working days.

Sec. 4.

Minnesota Statutes 2020, section 216B.096, subdivision 3, is amended to read:

Subd. 3.

Utility obligations before cold weather period.

Each year, between deleted text begin September
1 deleted text end new text begin August 15 new text end and October deleted text begin 15 deleted text end new text begin 1 new text end , each utility must provide all customers, personally, by first
class mail, or electronically for those requesting electronic billing, a summary of rights and
responsibilities. The summary must also be provided to all new residential customers when
service is initiated.

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 2020, section 216B.097, subdivision 1, is amended to read:

Subdivision 1.

Application; notice to residential customer.

(a) A municipal utility or
a cooperative electric association must not disconnect and must reconnect the utility service
of a residential customer during the period between October deleted text begin 15 deleted text end new text begin 1 new text end and April deleted text begin 15 deleted text end new text begin 30 new text end if the
disconnection affects the primary heat source for the residential unit and all of the following
conditions are met:

(1) The household income of the customer is at or below 50 percent of the state median
household income. A municipal utility or cooperative electric association utility may (i)
verify income on forms it provides or (ii) obtain verification of income from the local energy
assistance provider. A customer is deemed to meet the income requirements of this clause
if the customer receives any form of public assistance, including energy assistance, that
uses an income eligibility threshold set at or below 50 percent of the state median household
income.

(2) A customer enters into and makes reasonably timely payments under a payment
agreement that considers the financial resources of the household.

(3) A customer receives referrals to energy assistance, weatherization, conservation, or
other programs likely to reduce the customer's energy bills.

(b) A municipal utility or a cooperative electric association must, between August 15
and October deleted text begin 15 deleted text end new text begin 1 new text end each year, notify all residential customers of the provisions of this section.

Sec. 6.

Minnesota Statutes 2020, section 216B.097, subdivision 2, is amended to read:

Subd. 2.

Notice to residential customer facing disconnection.

Before disconnecting
service to a residential customer during the period between October deleted text begin 15 deleted text end new text begin 1 new text end and April deleted text begin 15 deleted text end new text begin 30 new text end ,
a municipal utility or cooperative electric association must provide the following information
to a customer:

(1) a notice of proposed disconnection;

(2) a statement explaining the customer's rights and responsibilities;

(3) a list of local energy assistance providers;

(4) forms on which to declare inability to pay; and

(5) a statement explaining available time payment plans and other opportunities to secure
continued utility service.

Sec. 7.

Minnesota Statutes 2020, section 216B.097, subdivision 3, is amended to read:

Subd. 3.

Restrictions if disconnection necessary.

(a) If a residential customer must be
involuntarily disconnected between October deleted text begin 15 deleted text end new text begin 1 new text end and April deleted text begin 15 deleted text end new text begin 30 new text end for failure to comply with
subdivision 1, the disconnection must not occur:

(1) on a Friday, unless the customer declines to enter into a payment agreement offered
that day in person or via personal contact by telephone by a municipal utility or cooperative
electric association;

(2) on a weekend, holiday, or the day before a holiday;

(3) when utility offices are closed; or

(4) after the close of business on a day when disconnection is permitted, unless a field
representative of a municipal utility or cooperative electric association who is authorized
to enter into a payment agreement, accept payment, and continue service, offers a payment
agreement to the customer.

Further, the disconnection must not occur until at least 20 days after the notice required
in subdivision 2 has been mailed to the customer or 15 days after the notice has been
personally delivered to the customer.

(b) If a customer does not respond to a disconnection notice, the customer must not be
disconnected until the utility investigates whether the residential unit is actually occupied.
If the unit is found to be occupied, the utility must immediately inform the occupant of the
provisions of this section. If the unit is unoccupied, the utility must give seven days' written
notice of the proposed disconnection to the local energy assistance provider before making
a disconnection.

(c) If, prior to disconnection, a customer appeals a notice of involuntary disconnection,
as provided by the utility's established appeal procedure, the utility must not disconnect
until the appeal is resolved.

Sec. 8.

Minnesota Statutes 2020, section 216B.164, subdivision 4, is amended to read:

Subd. 4.

Purchases; wheeling; costs.

(a) Except as otherwise provided in paragraph
(c), this subdivision shall apply to all qualifying facilities having 40-kilowatt capacity or
more as well as qualifying facilities as defined in subdivision 3 and net metered facilities
under subdivision 3a, if interconnected to a cooperative electric association or municipal
utility, or 1,000-kilowatt capacity or more if interconnected to a public utility, which elect
to be governed by its provisions.

(b) The utility to which the qualifying facility is interconnected shall purchase all energy
and capacity made available by the qualifying facility. The qualifying facility shall be paid
the utility's full avoided capacity and energy costs as negotiated by the parties, as set by the
commission, or as determined through competitive bidding approved by the commission.
deleted text begin The full avoided capacity and energy costs to be paid a qualifying facility that generates
electric power by means of a renewable energy source are the utility's least cost renewable
energy facility or the bid of a competing supplier of a least cost renewable energy facility,
whichever is lower, unless the commission's resource plan order, under section 216B.2422,
subdivision 2, provides that the use of a renewable resource to meet the identified capacity
need is not in the public interest.
deleted text end

(c) For all qualifying facilities having 30-kilowatt capacity or more, the utility shall, at
the qualifying facility's or the utility's request, provide wheeling or exchange agreements
wherever practicable to sell the qualifying facility's output to any other Minnesota utility
having generation expansion anticipated or planned for the ensuing ten years. The
commission shall establish the methods and procedures to insure that except for reasonable
wheeling charges and line losses, the qualifying facility receives the full avoided energy
and capacity costs of the utility ultimately receiving the output.

(d) The commission shall set rates for electricity generated by renewable energy.

Sec. 9.

Minnesota Statutes 2020, section 216B.2424, is amended by adding a subdivision
to read:

new text begin Subd. 5b. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of subdivision 5c, the following terms have
the meanings given.
new text end

new text begin (b) "Agreement period" means the period beginning January 1, 2023, and ending
December 31, 2024.
new text end

new text begin (c) "Ash" means all species of the genus Fraxinus.
new text end

new text begin (d) "Cogeneration facility" means the St. Paul district heating and cooling system
cogeneration facility that uses waste wood as the facility's primary fuel source, provides
thermal energy to St. Paul, and sells electricity to a public utility through a power purchase
agreement approved by the Public Utilities Commission.
new text end

new text begin (e) "Department" means the Department of Agriculture.
new text end

new text begin (f) "Emerald ash borer" means the insect known as emerald ash borer, Agrilus planipennis
Fairmaire, in any stage of development.
new text end

new text begin (g) "Renewable energy technology" has the meaning given to "eligible energy technology"
in section 216B.1691, subdivision 1.
new text end

new text begin (h) "St. Paul district heating and cooling system" means a system of boilers, distribution
pipes, and other equipment that provides energy for heating and cooling in St. Paul, and
includes the cogeneration facility.
new text end

new text begin (i) "Waste wood from ash trees" means ash logs and lumber, ash tree waste, and ash
chips and mulch.
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.

Minnesota Statutes 2020, section 216B.2424, is amended by adding a subdivision
to read:

new text begin Subd. 5c. new text end

new text begin New power purchase agreement. new text end

new text begin (a) No later than August 1, 2021, a public
utility subject to subdivision 5 and the cogeneration facility may file a proposal with the
commission to enter into a power purchase agreement that governs the public utility's
purchase of electricity generated by the cogeneration facility. The power purchase agreement
may extend no later than December 31, 2024, and must not be extended beyond that date
except as provided in paragraph (f).
new text end

new text begin (b) The commission is prohibited from approving a new power purchase agreement filed
under this subdivision that does not meet all of the following conditions:
new text end

new text begin (1) the cogeneration facility agrees that any waste wood from ash trees removed from
Minnesota counties that have been designated as quarantined areas in Section IV of the
Minnesota State Formal Quarantine for Emerald Ash Borer, issued by the commissioner of
agriculture under section 18G.06, effective November 14, 2019, as amended, for utilization
as biomass fuel by the cogeneration facility must be accompanied by evidence:
new text end

new text begin (i) demonstrating that the transport of biomass fuel from processed waste wood from
ash trees to the cogeneration facility complies with the department's regulatory requirements
under the Minnesota State Formal Quarantine for Emerald Ash Borer, which may consist
of:
new text end

new text begin (A) a certificate authorized or prepared by the commissioner of agriculture or an employee
of the Animal and Plant Health Inspection Service of the United States Department of
Agriculture verifying compliance; or
new text end

new text begin (B) shipping documents demonstrating compliance; or
new text end

new text begin (ii) certifying that the waste wood from ash trees has been chipped to one inch or less
in two dimensions, and was chipped within the county from which the ash trees were
originally removed;
new text end

new text begin (2) the price per megawatt hour of electricity paid by the public utility demonstrates
significant savings compared to the existing power purchase agreement, with a price that
does not exceed $98 per megawatt hour;
new text end

new text begin (3) the proposal includes a proposal to the commission for one or more electrification
projects that result in the St. Paul district heating and cooling system being powered by
electricity generated from renewable energy technologies. The plan must evaluate
electrification at three or more levels from ten to 100 percent, including 100 percent of the
energy used by the St. Paul district heating and cooling system to be implemented by
December 31, 2027. The proposal may also evaluate alternative dates for implementation.
For each level of electrification analyzed, the proposal must contain:
new text end

new text begin (i) a description of the alternative electrification technologies evaluated and whose
implementation is proposed as part of the electrification project;
new text end

new text begin (ii) an estimate of the cost of the electrification project to the public utility, the impact
on the monthly energy bills of the public utility's Minnesota customers, and the impact on
the monthly energy bills of St. Paul district heating and cooling system customers;
new text end

new text begin (iii) an estimate of the reduction in greenhouse gas emissions resulting from the
electrification project, including greenhouse gas emissions associated with the transportation
of waste wood;
new text end

new text begin (iv) estimated impacts on the operations of the St. Paul district heating and cooling
system; and
new text end

new text begin (v) a timeline for the electrification project; and
new text end

new text begin (4) the power purchase agreement provides a net benefit to the utility customers or the
state.
new text end

new text begin (c) The commission may approve, or approve as modified, a proposed electrification
project that meets the requirements of this subdivision if it finds the electrification project
is in the public interest, or the commission may reject the project if it finds that the project
is not in the public interest. When determining whether an electrification project is in the
public interest, the commission may consider the effects of the electrification project on air
emissions from the St. Paul district heating and cooling system and how the emissions
impact the environment and residents of affected neighborhoods.
new text end

new text begin (d) During the agreement period, the cogeneration facility must attempt to obtain funding
to reduce the cost of generating electricity and enable the facility to continue to operate
beyond the agreement period to address the removal of ash trees, as described in paragraph
(b), clause (1), without any subsidy or contribution from any power purchase agreement
after December 31, 2024. The cogeneration facility must submit periodic reports to the
commission regarding the efforts made under this paragraph.
new text end

new text begin (e) Upon approval of the new power purchase agreement, the commission must require
periodic reporting regarding progress toward development of a proposal for an electrification
project.
new text end

new text begin (f) The commission is prohibited from approving either an extension of an existing
power purchase agreement or a new power purchase agreement that operates after the
agreement period unless it approves an electrification project. Nothing in this section requires
any utility to enter into a power purchase agreement with the cogeneration facility after
December 31, 2024.
new text end

new text begin (g) Upon approval of an electrification project, the commission must require periodic
reporting regarding the progress toward implementation of the electrification project.
new text end

new text begin (h) If the commission approves the proposal submitted under paragraph (b), clause (3),
the commission may allow the public utility to recover prudently incurred costs net of
revenues resulting from the electrification project through an automatic cost recovery
mechanism that allows for cost recovery outside of a general rate case. The cost recovery
mechanism approved by the commission must:
new text end

new text begin (1) allow a reasonable return on the capital invested in the electrification project by the
public utility, as determined by the commission; and
new text end

new text begin (2) recover costs only from the public utility's Minnesota electric service 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. 11.

Minnesota Statutes 2020, 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 new text begin large new text end wind energy conversion system new text begin , as defined in section 216F.01, subdivision
2, new text end or new text begin a new text end solar deleted text begin electric deleted text end new text begin energy new text end generation deleted text begin facility deleted text end new text begin system, as defined in section 216E.01,
subdivision 9a, new text end if the system deleted text begin or facility deleted text end is owned and operated by an independent power
producer and the electric output of the system deleted text begin or facility deleted text end new text begin :
new text end

new text begin (i) new text end is not sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator; or

new text begin (ii) is sold to an entity that provides retail service in Minnesota or wholesale electric
service to another entity in Minnesota other than an entity that is a federally recognized
regional transmission organization or independent system operator, provided that the system
represents solar or wind capacity that the entity purchasing the system's electric output was
ordered by the commission to develop in the entity's most recent integrated resource plan
approved under section 216B.2422; or
new text end

(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating large energy facility, as defined in section 216B.2421,
subdivision 2, engaging in a repowering project that:

(i) will not result in the facility exceeding the nameplate capacity under its most recent
interconnection agreement; or

(ii) will result in the facility 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.

(b) For the purpose of this subdivision, "repowering project" means:

(1) modifying a large wind energy conversion system or a solar energy generating 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.

Sec. 12.

Minnesota Statutes 2020, section 216B.62, subdivision 3b, is amended to read:

Subd. 3b.

Assessment for department regional and national duties.

In addition to
other assessments in subdivision 3, the department may assess up to $500,000 per fiscal
year for performing its duties under section 216A.07, subdivision 3a. The amount in this
subdivision shall be assessed to energy utilities in proportion to their respective gross
operating revenues from retail sales of gas or electric service within the state during the last
calendar year and shall be deposited into an account in the special revenue fund and is
appropriated to the commissioner of commerce for the purposes of section 216A.07,
subdivision 3a. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative electric
associations, and municipal power agencies providing natural gas or electric service in the
state. deleted text begin This subdivision expires June 30, 2021.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

new text begin [216B.631] COMPENSATION FOR PARTICIPANTS IN PROCEEDINGS.
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 meaning given.
new text end

new text begin (b) "Participant" means a person who meets the requirements of subdivision 2 and who:
new text end

new text begin (1) files comments or appears in a commission proceeding, other than public hearings,
concerning one or more public utilities; or
new text end

new text begin (2) is permitted by the commission to intervene in a commission proceeding concerning
one or more public utilities; and
new text end

new text begin (3) files a request for compensation under this section.
new text end

new text begin (c) "Proceeding" means an undertaking of the commission in which it seeks to resolve
an issue affecting one or more public utilities and which results in a commission order.
new text end

new text begin (d) "Public utility" has the meaning given in section 216B.02, subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Participants; eligibility. new text end

new text begin Any of the following participants is eligible to receive
compensation under this section:
new text end

new text begin (1) a nonprofit organization that is:
new text end

new text begin (i) exempt from taxation under section 501(c)(3) of the United States Internal Revenue
Code;
new text end

new text begin (ii) incorporated in Minnesota; and
new text end

new text begin (iii) governed under chapter 317A;
new text end

new text begin (2) a Tribal government of a federally recognized Indian Tribe that is located in
Minnesota; or
new text end

new text begin (3) a Minnesota resident, except that an individual who owns a for-profit business that
has earned revenue from a Minnesota utility in the past two years is not eligible for
compensation.
new text end

new text begin Subd. 3. new text end

new text begin Compensation; conditions. new text end

new text begin (a) The commission may order a public utility to
compensate all or part of an eligible participant's reasonable costs of participation in a
proceeding that comes before the commission when the commission finds that the participant
has materially assisted the commission's deliberation.
new text end

new text begin (b) In determining whether a participant has materially assisted the commission's
deliberation, the commission must find that:
new text end

new text begin (1) the participant made a unique contribution to the record and represented an interest
that would not otherwise have been adequately represented;
new text end

new text begin (2) the evidence or arguments presented or the positions taken by the participant were
an important factor in producing a fair decision;
new text end

new text begin (3) the participant's position promoted a public purpose or policy;
new text end

new text begin (4) the evidence presented, arguments made, issues raised, or positions taken by the
participant would not otherwise have been a part of the record;
new text end

new text begin (5) the participant was active in any stakeholder process made part of the proceeding;
and
new text end

new text begin (6) the proceeding resulted in a commission order that adopted, in whole or in part, a
position advocated by the participant.
new text end

new text begin (c) In reviewing a compensation request, the commission must consider whether the
costs presented in the participant's claim are reasonable.
new text end

new text begin Subd. 4. new text end

new text begin Compensation; amount. new text end

new text begin (a) Compensation must not exceed $50,000 for a
single participant in any proceeding, except that:
new text end

new text begin (1) if a proceeding extends longer than 12 months, a participant may request compensation
of up to $50,000 for costs incurred in each calendar year; and
new text end

new text begin (2) in a general rate case proceeding under section 216B.16 or an integrated resource
plan proceeding under section 216B.2422, the maximum single participant compensation
must not exceed $75,000.
new text end

new text begin (b) A single participant must not be granted more than $200,000 under this section in a
single calendar year.
new text end

new text begin (c) Compensation requests from joint participants must be presented as a single request.
new text end

new text begin (d) Notwithstanding paragraphs (a) and (b), the commission must not, in any calendar
year, require a single public utility to pay aggregate compensation under this section that
exceeds the following amounts:
new text end

new text begin (1) $100,000, for a public utility with up to $300,000,000 annual gross operating revenue
in Minnesota;
new text end

new text begin (2) $275,000, for a public utility with more than $300,000,000 but less than $900,000,000
annual gross operating revenue in Minnesota;
new text end

new text begin (3) $375,000, for a public utility with more than $900,000,000 but less than
$2,000,000,000 annual gross operating revenue in Minnesota; and
new text end

new text begin (4) $1,250,000, for a public utility with more than $2,000,000,000 annual gross operating
revenue in Minnesota.
new text end

new text begin (e) When requests for compensation from any public utility approach the limits established
in paragraph (d), the commission may prioritize requests from participants that received
less than $150,000 in total compensation during the previous two years.
new text end

new text begin Subd. 5. new text end

new text begin Compensation; process. new text end

new text begin (a) A participant seeking compensation must file a
request and an affidavit of service with the commission, and serve a copy of the request on
each party to the proceeding. The request must be filed no more than 30 days after the later
of: (1) the expiration of the period within which a petition for rehearing, amendment,
vacation, reconsideration, or reargument must be filed; or (2) the date the commission issues
an order following rehearing, amendment, vacation, reconsideration, or reargument.
new text end

new text begin (b) A compensation request must include:
new text end

new text begin (1) the name and address of the participant or nonprofit organization the participant is
representing;
new text end

new text begin (2) evidence of the organization's nonprofit, tax-exempt status;
new text end

new text begin (3) the name and docket number of the proceeding for which compensation is requested;
new text end

new text begin (4) a list of actual annual revenue secured and expenses incurred for participation in
commission proceedings separately for the preceding and current year, and projected revenue,
revenue sources, and expenses for participation in commission proceedings for the current
year;
new text end

new text begin (5) amounts of compensation awarded to the participant under this section during the
current year and any pending requests for compensation, by docket;
new text end

new text begin (6) an itemization of the participant's costs, including hours worked and associated hourly
rates for each individual contributing to the participation, not including overhead costs,
participant revenues for the proceeding, and the total compensation request; and
new text end

new text begin (7) a narrative describing the unique contribution made to the proceeding by the
participant.
new text end

new text begin (c) A participant shall comply with reasonable requests for information by the commission
and other participants. A participant shall reply to information requests within ten calendar
days of the date the request is received, unless this would place an extreme hardship upon
the replying participant. The replying participant must provide a copy of the information
to any other participant or interested person upon request. Disputes regarding information
requests may be resolved by the commission.
new text end

new text begin (d) Within 30 days after service of the request for compensation, a party may file a
response, together with an affidavit of service, with the commission. A copy of the response
must be served on the requesting participant and all other parties to the proceeding.
new text end

new text begin (e) Within 15 days after the response is filed, the participant may file a reply with the
commission. A copy of the reply and an affidavit of service must be served on all other
parties to the proceeding.
new text end

new text begin (f) If additional costs are incurred by a participant as a result of additional proceedings
following the commission's initial order, the participant may file an amended request within
30 days after the commission issues an amended order. Paragraphs (b) to (e) apply to an
amended request.
new text end

new text begin (g) The commission must issue a decision on participant compensation within 60 days
of the date a request for compensation is filed by a participant.
new text end

new text begin (h) The commission may extend the deadlines in paragraphs (d), (e), and (g) for up to
60 days upon the request of a participant or on the commission's own initiative, if applicable.
new text end

new text begin (i) A participant may request reconsideration of the commission's compensation decision
within 30 days of the decision date.
new text end

new text begin Subd. 6. new text end

new text begin Compensation; orders. new text end

new text begin (a) If the commission issues an order requiring payment
of participant compensation, the public utility that was the subject of the proceeding must
pay the compensation to the participant and file proof of payment with the commission
within 30 days after the later of: (1) the expiration of the period within which a petition for
reconsideration of the commission's compensation decision must be filed; or (2) the date
the commission issues an order following reconsideration of the commission's order on
participant compensation.
new text end

new text begin (b) If the commission issues an order requiring payment of participant compensation in
a proceeding involving multiple public utilities, the commission shall apportion costs among
the public utilities in proportion to each public utility's annual revenue.
new text end

new text begin (c) The commission may issue orders necessary to allow a public utility to recover the
costs of participant compensation on a timely basis.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

new text begin [216C.51] UTILITY DIVERSITY REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin It is the policy of this state to encourage each utility that serves
Minnesota residents to focus on and improve the diversity of the utility's workforce and
suppliers.
new text end

new text begin Subd. 2. 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) "Certification" means official recognition by a governmental unit that a business is
a preferred vendor as a result of the characteristics of the business owner or owners or the
location of the business.
new text end

new text begin (c) "Utility" has the meaning given in section 216C.06, subdivision 18.
new text end

new text begin Subd. 3. new text end

new text begin Annual report. new text end

new text begin (a) Beginning March 15, 2022, and each March 15 thereafter,
each utility authorized to do business in Minnesota must file an annual diversity report to
the commissioner on:
new text end

new text begin (1) the utility's goals and efforts to increase diversity in the workplace, including current
workforce representation numbers and percentages; and
new text end

new text begin (2) all procurement goals and actual spending for female-owned, minority-owned,
veteran-owned, and small business enterprises during the previous calendar year.
new text end

new text begin (b) The goals under paragraph (a), clause (2), must be expressed as a percentage of the
total work performed by the utility submitting the report. The actual spending for
female-owned, minority-owned, veteran-owned, and small business enterprises must also
be expressed as a percentage of the total work performed by the utility submitting the report.
new text end

new text begin Subd. 4. new text end

new text begin Report elements. new text end

new text begin Each utility required to report under this section must include
the following in the annual report:
new text end

new text begin (1) an explanation of the plan to increase diversity in the utility's workforce and suppliers
during the next year;
new text end

new text begin (2) an explanation of the plan to increase the goals;
new text end

new text begin (3) an explanation of the challenges faced to increase workforce and supplier diversity,
including suggestions regarding actions the department could take to help identify potential
employees and vendors;
new text end

new text begin (4) a list of the certifications the company recognizes;
new text end

new text begin (5) a point of contact for a potential employee or vendor that wishes to work for or do
business with the utility; and
new text end

new text begin (6) a list of successful actions taken to increase workforce and supplier diversity, in
order to encourage other companies to emulate best practices.
new text end

new text begin Subd. 5. new text end

new text begin State data. new text end

new text begin Each annual report must include as much state-specific data as
possible. If the submitting utility does not submit state-specific data, the utility must include
any relevant national data the utility possesses, explain why the utility could not submit
state-specific data, and explain how the utility intends to include state-specific data in future
reports, if possible.
new text end

new text begin Subd. 6. new text end

new text begin Publication; retention. new text end

new text begin The department must publish an annual report on the
department's website and must maintain each annual report for at least five years.
new text end

Sec. 15.

Minnesota Statutes 2020, section 216E.03, subdivision 7, is amended to read:

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 generating plants and high-voltage transmission lines
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; deleted text begin and
deleted text end

(12) when appropriate, consideration of problems raised by other state and federal
agencies and local entities new text begin ;
new text end

new text begin (13) evaluation of the benefits of the proposed facility with respect to the protection and
enhancement of environmental quality, and to the reliability of state and regional energy
supplies; and
new text end

new text begin (14) evaluation of the proposed project's impact on socioeconomic factors new text end .

(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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2020, section 216E.04, subdivision 2, is amended to read:

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 deleted text begin five deleted text end new text begin 30 new text end 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; and

(8) large electric power generating plants that are powered by solar energy.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2020, section 216F.012, is amended to read:

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.

deleted text begin (c) The Public Utilities Commission shall issue an annual report to the chairs and ranking
minority members of the house of representatives and senate committees with primary
jurisdiction over energy policy and natural resource policy regarding any variances applied
for and not granted for systems subject to paragraph (b).
deleted 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. 18.

new text begin [216F.084] WIND TURBINE LIGHTING SYSTEMS.
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) "Duration" means the length of time during which the lights of a wind turbine lighting
system are lit.
new text end

new text begin (c) "Intensity" means the brightness of a wind turbine lighting system's lights.
new text end

new text begin (d) "Light-mitigating technology" means a sensor-based system that reduces the duration
or intensity of wind turbine lighting systems by:
new text end

new text begin (1) using radio frequency or other sensors to detect aircraft approaching one or more
wind turbines, or detecting visibility conditions at turbine sites; and
new text end

new text begin (2) automatically activating appropriate obstruction lights until the lights are no longer
needed by the aircraft and are turned off or dimmed.
new text end

new text begin A light-mitigating technology may include an audio feature that transmits an audible warning
message to provide a pilot additional information regarding a wind turbine the aircraft is
approaching.
new text end

new text begin (e) "Repowering project" has the meaning given in section 216B.243, subdivision 8,
paragraph (b).
new text end

new text begin (f) "Wind turbine lighting system" means a system of lights installed on an LWECS that
meets the applicable Federal Aviation Administration requirements.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin This section applies to an LWECS issued a site permit or site
permit amendment, including a site permit amendment for an LWECS repowering project,
by the commission under section 216F.04 or by a county under section 216F.08, provided
that the application for a site permit or permit amendment is filed after July 1, 2021.
new text end

new text begin Subd. 3. new text end

new text begin Required lighting system. new text end

new text begin (a) An LWECS subject to this section must be
equipped with a light-mitigating technology that meets the requirements established in
Chapter 14 of the Federal Aviation Administration's Advisory Circular 70/760-1, Obstruction
Marking and Lighting, as updated, unless the Federal Aviation Administration, after
reviewing the LWECS site plan, rejects the use of the light-mitigating technology for the
LWECS. A light-mitigating technology installed on a wind turbine in Minnesota must be
purchased from a vendor approved by the Federal Aviation Administration.
new text end

new text begin (b) If the Federal Aviation Administration, after reviewing the LWECS site plan, rejects
the use of a light-mitigating technology for the LWECS under paragraph (a), the LWECS
must be equipped with a wind turbine lighting system that minimizes the duration or intensity
of the lighting system while maintaining full compliance with the lighting standards
established in Chapter 13 of the Federal Aviation Administration's Advisory Circular
70/760-1, Obstruction Marking and Lighting, as updated.
new text end

new text begin Subd. 4. new text end

new text begin Exemptions. new text end

new text begin (a) The Public Utilities Commission or a county that has assumed
permitting authority under section 216F.08 must grant an owner of an LWECS an exemption
from subdivision 3, paragraph (a), if the Federal Aviation Administration denies the owner's
application to equip an LWECS with a light-mitigating technology.
new text end

new text begin (b) The Public Utilities Commission or a county that has assumed permitting authority
under section 216F.08 must grant an owner of an LWECS an exemption from or an extension
of time to comply with subdivision 3, paragraph (a), if after notice and public hearing the
owner of the LWECS demonstrates to the satisfaction of the commission or county that:
new text end

new text begin (1) equipping an LWECS with a light-mitigating technology is technically infeasible;
new text end

new text begin (2) equipping an LWECS with a light-mitigating technology imposes a significant
financial burden on the permittee; or
new text end

new text begin (3) a vendor approved by the Federal Aviation Administration cannot deliver a
light-mitigating technology to the LWECS owner in a reasonable amount of time.
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. 19. new text begin TRIBAL ADVOCACY COUNCIL ON ENERGY; DEPARTMENT OF
COMMERCE SUPPORT.
new text end

new text begin (a) The Department of Commerce must provide technical support and subject matter
expertise to help facilitate efforts taken by the 11 federally recognized Indian Tribes in
Minnesota to establish and operate a Tribal advocacy council on energy.
new text end

new text begin (b) When requested by a Tribal advocacy council on energy, the Department of Commerce
must assist the council to:
new text end

new text begin (1) assess and evaluate common Tribal energy issues, including:
new text end

new text begin (i) identifying and prioritizing energy issues;
new text end

new text begin (ii) facilitating idea sharing among the Tribes to generate solutions to energy issues; and
new text end

new text begin (iii) assisting decision making with respect to resolving energy issues;
new text end

new text begin (2) develop new statewide energy policies or proposed legislation, including:
new text end

new text begin (i) organizing stakeholder meetings;
new text end

new text begin (ii) gathering input and other relevant information;
new text end

new text begin (iii) assisting with policy proposal development, evaluation, and decision making; and
new text end

new text begin (iv) helping facilitate actions taken to submit, and obtain approval for or have enacted,
policies or legislation approved by the council;
new text end

new text begin (3) make efforts to raise awareness of and provide educational opportunities with respect
to Tribal energy issues among Tribal members by:
new text end

new text begin (i) identifying information resources;
new text end

new text begin (ii) gathering feedback on issues and topics the council identifies as areas of interest;
and
new text end

new text begin (iii) identifying topics for and helping to facilitate educational forums; and
new text end

new text begin (4) identify, evaluate, disseminate, and implement successful energy-related practices.
new text end

new text begin (c) Nothing in this section requires or otherwise obligates the 11 federally recognized
Indian Tribes in Minnesota to establish a Tribal advocacy council on energy, nor does it
require or obligate a federally recognized Indian Tribe in Minnesota to participate in or
implement a decision or support an effort made by a Tribal advocacy council on energy.
new text end

new text begin (d) Any support provided by the Department of Commerce to a Tribal advocacy council
on energy under this section must be provided only upon request of the council and is limited
to issues and areas where the Department of Commerce's expertise and assistance is
requested.
new text end

Sec. 20. new text begin PILOT PROJECT; REPORTING REQUIREMENTS.
new text end

new text begin Upon completion of the solar energy pilot project described in section 21, subdivision
3, paragraph (b), or by January 15, 2023, whichever is earlier, the commissioner of the
Pollution Control Agency, in cooperation with the electric cooperative association operating
the pilot project, must report to the chairs and ranking minority members of the legislative
committees with jurisdiction over capital investment, energy, and environment on the
following:
new text end

new text begin (1) project accomplishments and milestones, including any project growth, developments,
or agreements that resulted from the project;
new text end

new text begin (2) challenges or barriers faced during development or after completion of the project;
new text end

new text begin (3) project financials, including expenses, utility agreements, and project viability; and
new text end

new text begin (4) replicability of the pilot project to other future closed landfill projects.
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. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Microgrid research and application. new text end

new text begin (a) Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $2,400,000 in fiscal year 2022 and
$1,200,000 in fiscal year 2023 are appropriated from the renewable development account
established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of
commerce for transfer to the University of St. Thomas Center for Microgrid Research for
the purposes of paragraph (b). The base in fiscal year 2024 is $1,000,000, and the base in
fiscal year 2025 is $400,000. The base in fiscal year 2026 is $400,000.
new text end

new text begin (b) The appropriations in this section must be used by the University of St. Thomas
Center for Microgrid Research to:
new text end

new text begin (1) increase the center's capacity to provide industry partners opportunities to test
near-commercial microgrid products on a real-world scale and to multiply opportunities for
innovative research;
new text end

new text begin (2) procure advanced equipment and controls to enable the extension of the university's
microgrid to additional buildings; and
new text end

new text begin (3) expand (i) hands-on educational opportunities to better understand the operations of
microgrids to undergraduate and graduate electrical engineering students, and (ii) partnerships
with community colleges.
new text end

new text begin Subd. 2. new text end

new text begin Clean energy training; pilot project. new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (j), $2,500,000 in fiscal year 2022 is appropriated
from the renewable development account to the commissioner of employment and economic
development for a grant to Northgate Development, LLC, for a pilot project to provide
training pathways into careers in clean energy for students and young adults in underserved
communities. Any unexpended funds remaining at the end of the biennium cancel to the
renewable development account. This is a onetime appropriation.
new text end

new text begin (b) The pilot project must develop skills among program participants, short of the level
required for licensing under Minnesota Statutes, chapter 326B, that are relevant to the design,
construction, operation, or maintenance of:
new text end

new text begin (1) systems producing solar or wind energy;
new text end

new text begin (2) improvements in energy efficiency, as defined in Minnesota Statutes, section
216B.241, subdivision 1;
new text end

new text begin (3) energy storage systems connected to renewable energy facilities, including battery
technology;
new text end

new text begin (4) infrastructure for charging all-electric or electric hybrid vehicles; or
new text end

new text begin (5) grid technologies that manage load and provide services to the distribution grid that
reduce energy consumption or shift demand to off-peak periods.
new text end

new text begin (c) Training must be designed to create pathways to a postsecondary degree, industry
certification, or to a registered apprenticeship program under chapter 178 that is related to
the fields in paragraph (b) and then to stable career employment at a living wage.
new text end

new text begin (d) Training must be provided at a location that is accessible by public transportation
and must prioritize the inclusion of communities of color, indigenous people, and low-income
individuals.
new text end

new text begin (e) Grant funds may be used for all expenses related to the training program, including
curriculum, instructors, equipment, materials, and leasing and improving space for use by
the program.
new text end

new text begin (f) No later than January 15, 2022, and by January 15 of 2023 and 2024, Northgate
Development, LLC, shall submit an annual report to the commissioner of employment and
economic development that must include, at a minimum, information on:
new text end

new text begin (1) program expenditures, including but not limited to amounts spent on curriculum,
instructors, equipment, materials, and leasing and improving space for use by the program;
new text end

new text begin (2) other public or private funding sources, including in-kind donations, supporting the
pilot program;
new text end

new text begin (3) the number of program participants;
new text end

new text begin (4) demographic information on program participants including but not limited to race,
age, gender, and income; and
new text end

new text begin (5) the number of program participants placed in a postsecondary program, industry
certification program, or registered apprenticeship program under Minnesota Statutes,
chapter 178.
new text end

new text begin Subd. 3. new text end

new text begin Landfill bond prepayment; solar pilot project. new text end

new text begin (a) Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $100,000 in fiscal year 2022 is
appropriated from the renewable development account established under Minnesota Statutes,
section 116C.779, subdivision 1, to the commissioner of commerce for transfer to the
commissioner of management and budget to prepay and defease any outstanding general
obligation bonds used to acquire property, finance improvements and betterments, or pay
any other associated financing costs at the Anoka-Ramsey closed landfill. This amount may
be deposited, invested, and applied to accomplish the purposes of this section as provided
in Minnesota Statutes, section 475.67, subdivisions 5 to 10 and 13. Upon the prepayment
and defeasance of all associated debt on the real property and improvements, all conditions
set forth in Minnesota Statutes, section 16A.695, subdivision 3, are deemed to have been
satisfied and the real property and improvements no longer constitute state bond financed
property under Minnesota Statutes, section 16A.695. This is a onetime appropriation. Any
funds appropriated under this section that remain unexpended after the purposes in this
paragraph have been met cancel to the renewable development account.
new text end

new text begin (b) Once the purposes in paragraph (a) have been met, the commissioner of the Pollution
Control Agency may take actions and execute agreements to facilitate the beneficial reuse
of the Anoka-Ramsey closed landfill, and may specifically authorize the installation of a
solar energy generating system, as defined in Minnesota Statutes, section 216E.01,
subdivision 9a, as a pilot project at the closed landfill to be owned and operated by a
cooperative electric association that has more than 130,000 customers in Minnesota. The
appropriation in paragraph (a) must not be used to finance the pilot project, procure land
rights, or to manage the solar energy generating system.
new text end

new text begin Subd. 4. new text end

new text begin Participant compensation. new text end

new text begin (a) $30,000 in fiscal year 2022 and $30,000 in
fiscal year 2023 are appropriated from the general fund to the commissioner of commerce
to address participant compensation issues in Public Utilities Commission proceedings, as
described in Minnesota Statutes, section 216B.631.
new text end

new text begin (b) $28,000 in fiscal year 2022 and $28,000 in fiscal year 2023 are appropriated from
the general fund to the Public Utilities Commission to address participant compensation
issues under Minnesota Statutes, section 216B.631.
new text end

new text begin Subd. 5. new text end

new text begin Commerce department; Energy Resources Division. new text end

new text begin $3,493,000 in fiscal
year 2022 and $3,547,000 in fiscal year 2023 are appropriated from the general fund to the
commissioner of commerce for general operating activities of the Energy Resources Division.
new text end

new text begin Subd. 6. new text end

new text begin Weatherization; vermiculite remediation. new text end

new text begin $150,000 in fiscal year 2022 and
$150,000 in fiscal year 2023 are appropriated from the general fund to the commissioner
of commerce 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.
new text end

new text begin Subd. 7. new text end

new text begin Energy regulation and planning. new text end

new text begin $851,000 in fiscal year 2022 and $870,000
in fiscal year 2023 are appropriated from the general fund to the commissioner of commerce
for activities of the energy regulation and planning unit staff.
new text end

new text begin Subd. 8. new text end

new text begin "Made in Minnesota" administration. new text end

new text begin Notwithstanding Minnesota Statutes,
section 116C. 779, subdivision 1, paragraph (j), $100,000 in fiscal year 2022 and $100,000
in fiscal year 2023 are appropriated from the renewable development account established
in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
to administer the "Made in Minnesota" solar energy production incentive program under
Minnesota Statutes, section 216C.417. Any remaining unspent funds cancel back to the
renewable development account at the end of the biennium.
new text end

new text begin Subd. 9. new text end

new text begin Grant cycle; proposal evaluation. new text end

new text begin $500,000 in fiscal year 2022 and $500,000
in fiscal year 2023 are appropriated from the renewable development account established
in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce
for costs associated with any third-party expert evaluation of a proposal submitted in response
to a request for proposal to the renewable development advisory group under Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (l). No portion of this appropriation
may be expended or retained by the commissioner of commerce. Any funds appropriated
under this paragraph that are unexpended at the end of a fiscal year cancel to the renewable
development account.
new text end

new text begin Subd. 10. new text end

new text begin Petroleum Tank Release Compensation Board. new text end

new text begin $1,056,000 in fiscal year
2022 and $1,056,000 in fiscal year 2023 are appropriated from the petroleum tank fund to
the Petroleum Tank Release Compensation Board for its operations.
new text end

new text begin Subd. 11. new text end

new text begin Public Utilities Commission. new text end

new text begin $8,073,000 in fiscal year 2022 and $8,202,000
in fiscal year 2023 are appropriated from the general fund to the Public Utilities Commission
for its general operations.
new text end

new text begin Subd. 12. new text end

new text begin Study; human rights impact of enactment. new text end

new text begin Notwithstanding Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (j), $100,000 in fiscal year 2022 is
appropriated from the renewable development account established under Minnesota Statutes,
section 116C.779, subdivision 1, to the commissioner of human rights to conduct a study
of the impact of the enactment of articles 7 to 12 of this act on human rights in the Democratic
Republic of the Congo and the Xinjiang Uygur Autonomous Region of the People's Republic
of China. The report must be submitted to the chairs and ranking minority members of the
senate and house of representatives committees with jurisdiction over energy policy and
finance no later than February 1, 2022.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, section 216B.16, subdivision 10, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Laws 2017, chapter 5, section 1, new text end new text begin is repealed.
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

APPENDIX

Repealed Minnesota Statutes: UES0972-1

No active language found for: 45.017

45.306 CONTINUING EDUCATION COURSES OFFERED OVER THE INTERNET.

No active language found for: 45.306.1

No active language found for: 60A.98

No active language found for: 60A.981

No active language found for: 60A.982

No active language found for: 115C.13

216B.16 RATE CHANGE; PROCEDURE; HEARING.

Subd. 10.

Intervenor compensation.

(a) A nonprofit organization or an individual granted formal intervenor status by the commission is eligible to receive compensation.

(b) The commission may order a utility to compensate all or part of an eligible intervenor's reasonable costs of participation in a general rate case that comes before the commission when the commission finds that the intervenor has materially assisted the commission's deliberation and when a lack of compensation would present financial hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor in any proceeding. For the purpose of this subdivision, "materially assisted" means that the intervenor's participation and presentation was useful and seriously considered, or otherwise substantially contributed to the commission's deliberations in the proceeding.

(c) In determining whether an intervenor has materially assisted the commission's deliberation, the commission must consider, among other factors, whether:

(1) the intervenor represented an interest that would not otherwise have been adequately represented;

(2) the evidence or arguments presented or the positions taken by the intervenor were an important factor in producing a fair decision;

(3) the intervenor's position promoted a public purpose or policy;

(4) the evidence presented, arguments made, issues raised, or positions taken by the intervenor would not have been a part of the record without the intervenor's participation; and

(5) the administrative law judge or the commission adopted, in whole or in part, a position advocated by the intervenor.

(d) In determining whether the absence of compensation would present financial hardship to the intervenor, the commission must consider:

(1) whether the costs presented in the intervenor's claim reflect reasonable fees for attorneys and expert witnesses and other reasonable costs; and

(2) the ratio between the costs of intervention and the intervenor's unrestricted funds.

(e) An intervenor seeking compensation must file a request and an affidavit of service with the commission, and serve a copy of the request on each party to the proceeding. The request must be filed 30 days after the later of (1) the expiration of the period within which a petition for rehearing, amendment, vacation, reconsideration, or reargument must be filed or (2) the date the commission issues an order following rehearing, amendment, vacation, reconsideration, or reargument.

(f) The compensation request must include:

(1) the name and address of the intervenor or representative of the nonprofit organization the intervenor is representing;

(2) proof of the organization's nonprofit, tax-exempt status;

(3) the name and docket number of the proceeding for which compensation is requested;

(4) a list of actual annual revenues and expenses of the organization the intervenor is representing for the preceding year and projected revenues, revenue sources, and expenses for the current year;

(5) the organization's balance sheet for the preceding year and a current monthly balance sheet;

(6) an itemization of intervenor costs and the total compensation request; and

(7) a narrative explaining why additional organizational funds cannot be devoted to the intervention.

(g) Within 30 days after service of the request for compensation, a party may file a response, together with an affidavit of service, with the commission. A copy of the response must be served on the intervenor and all other parties to the proceeding.

(h) Within 15 days after the response is filed, the intervenor may file a reply with the commission. A copy of the reply and an affidavit of service must be served on all other parties to the proceeding.

(i) If additional costs are incurred as a result of additional proceedings following the commission's initial order, the intervenor may file an amended request within 30 days after the commission issues an amended order. Paragraphs (e) to (h) apply to an amended request.

(j) The commission must issue a decision on intervenor compensation within 60 days of a filing by an intervenor.

(k) A party may request reconsideration of the commission's compensation decision within 30 days of the decision.

(l) If the commission issues an order requiring payment of intervenor compensation, the utility that was the subject of the proceeding must pay the compensation to the intervenor, and file with the commission proof of payment, within 30 days after the later of (1) the expiration of the period within which a petition for reconsideration of the commission's compensation decision must be filed or (2) the date the commission issues an order following reconsideration of its order on intervenor compensation.

216B.1691 RENEWABLE ENERGY OBJECTIVES.

Subd. 2.

Eligible energy objectives.

Each electric utility shall make a good faith effort to generate or procure sufficient electricity generated by an eligible energy technology to provide its retail consumers, or the retail customers of a distribution utility to which the electric utility provides wholesale electric service, so that commencing in 2005, at least one percent of the electric utility's total retail electric sales to retail customers in Minnesota is generated by eligible energy technologies and seven percent of the electric utility's total retail electric sales to retail customers in Minnesota by 2010 is generated by eligible energy technologies.

216B.241 PUBLIC UTILITIES; ENERGY CONSERVATION AND OPTIMIZATION.

No active language found for: 216B.241.1

No active language found for: 216B.241.1b

No active language found for: 216B.241.2c

No active language found for: 216B.241.4

No active language found for: 216B.241.10

Repealed Minnesota Session Laws: UES0972-1

Laws 2017, chapter 5, section 1

Section 1. new text begin NATURAL GAS COMBINED CYCLE ELECTRIC GENERATION PLANT. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 216B.243 and Minnesota Statutes, chapter 216E, a public utility may, at its sole discretion, construct, own, and operate a natural gas combined cycle electric generation plant as the utility proposed to the Public Utilities Commission in docket number E-002/RP-15-21, or as revised by the utility and approved by the Public Utilities Commission in the latest resource plan filed after the effective date of this section, provided that the plant is located on property in Sherburne County, Minnesota, already owned by the public utility, and will be constructed after January 1, 2018. new text end

new text begin (b) Reasonable and prudently incurred costs and investments by a public utility under this section may be recovered pursuant to the provisions of Minnesota Statutes, section 216B.16. new text end

new text begin (c) No less than 20 months prior to the start of construction, a public utility intending to construct a plant under this section shall file with the commission an evaluation of the utility's forecasted costs prepared by an independent evaluator and may ask the commission to establish a sliding scale rate of return mechanism for this capital investment to provide an incentive for the utility to complete the project at or under the forecasted costs. new text end