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SF 997

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

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to energy; requiring commissioner of commerce to engage in activities
designed to increase energy savings under conservation investment program;
amending Minnesota Statutes 2006, section 216B.241, subdivision 1c, by adding
a subdivision; proposing coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

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


Subd. 1c.

Energy-saving goals.

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

new text begin (b) On an annual basis, the commissioner shall make publicly available a report
on the annual energy savings and estimated carbon dioxide reductions achieved by the
conservation improvement program for the two most recent years for which data is
available. The commissioner shall report on program performance both in the aggregate
and for each entity filing an energy conservation plan for approval or review by the
commissioner under subdivisions 1a and 1b.
new text end

new text begin (c) The commissioner shall establish statewide electric and natural gas energy
conservation goals that would result in energy savings equivalent to 1.5 percent of
statewide annual energy sales. Each utility and association shall file by June 2008 plans
on how they can achieve these goals. The goals must be in effect for 2009 and every
year thereafter. Based upon the statewide goals and input from utilities and associations,
the commissioner shall establish individual goals for each utility and association. The
commissioner may increase or decrease individual utility and association goals based upon
the energy-saving potential in individual service territories. Both statewide performance
and individual utility performance in relation to these established goals must be included
in the commissioner's report described in paragraph (b).
new text end

new text begin (d) The commissioner shall maintain an inventory of the most effective energy
conservation programs. The commissioner shall encourage all Minnesota utilities to
implement these programs where appropriate to their service territories. The commissioner
shall continually maintain and update the inventory so that the inventory contains the
most effective energy savings programs and describes those programs in sufficient detail
that a utility has reasonable guidance concerning implementation. The commissioner
shall prioritize the opportunities in order of potential energy savings and in order of
cost-effectiveness.
new text end

Sec. 2.

Minnesota Statutes 2006, section 216B.241, is amended by adding a
subdivision to read:


new text begin Subd. 7. new text end

new text begin Applied research and development grants. new text end

new text begin (a) The commissioner
shall establish an applied research and development fund to identify strategies to
maximize energy savings and carbon dioxide reductions from utility energy conservation
improvement programs. In awarding applied research and development grants, the
commissioner shall consult with an advisory group consisting of utilities, consumer
advocates, and other interested parties. All grants must be for projects that directly lead
to improvements in the effectiveness of utility conservation programs or provide better
documentation on the carbon dioxide reductions from the programs, or both.
new text end

new text begin (b) The commissioner shall assess energy utilities for costs related to the
administration of applied research and development grants. The commissioner shall
apportion costs among all energy utilities in proportion to their respective gross operation
revenues from sales of gas or electric service within the state during the last calendar year
and shall then render a bill to each utility on a regular basis.
new text end

new text begin (c) The commissioner shall assess up to $3,000,000 annually under this subdivision.
new text end

Sec. 3.

new text begin [216B.2412] RATE DECOUPLING; PILOT PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purpose of this section, "decoupling" means a
ratemaking strategy that recognizes the impacts of a variety of factors that affect energy
sales, including energy conservation, and eliminates incentives to sell energy beyond
approved revenue requirements and disincentives for conserving energy.
new text end

new text begin Subd. 2. new text end

new text begin Decoupling criteria. new text end

new text begin The commission may, by order, establish criteria
and standards for decoupling energy sales by public utilities from the revenues of those
utilities. The commission shall design the criteria and standards to mitigate the impact
on the public utilities of the energy efficiency objectives under this section without
adversely affecting utility ratepayers. Upon adoption of criteria and standards under this
section, the commission may approve utility proposals for decoupling that are consistent
with those criteria and standards.
new text end

new text begin Subd. 3. new text end

new text begin Pilot programs. new text end

new text begin The Public Utilities Commission is authorized to allow
one or more rate-regulated electric utilities and one or more rate-regulated gas utilities to
participate in separate pilot programs to assess the merits of a rate-decoupling strategy.
Each pilot program must utilize the criteria and standards established in subdivision
2 and be designed to determine whether a rate-decoupling strategy works to achieve
energy savings. Each program must be designed and be of a length to determine whether
a rate-decoupling strategy works to achieve energy savings. A pilot program may not
exceed three years in length. 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.
new text end