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Capital IconMinnesota Legislature

SF 972

3rd Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/27/2021 08:36am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

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A bill for an act
relating to commerce and energy; appropriating money for the Department of
Commerce; modifying the evaluation process for mandated health benefit proposals;
requiring the commissioner of commerce to apply for continuation of the state
innovation waiver; establishing a revolving loan fund for energy conservation
improvements in state buildings; establishing the Minnesota efficient technology
accelerator; authorizing a power purchase agreement for certain electric
cogeneration activities; encouraging natural gas utilities to develop innovative
resources; establishing a program to provide financial incentives for the production
of wood pellets; extending provision to assess for certain regulatory duties;
abolishing prohibition on issuing certificate of need for new nuclear power plant;
establishing a program to promote the use of solar energy on school buildings;
establishing a process to compensate businesses for loss of business opportunity
resulting from sale and closure of a biomass energy plant; authorizing a local
exchange carrier to elect competitive market regulation under certain conditions;
appropriating money; requiring reports; amending Minnesota Statutes 2020, sections
16B.86; 16B.87; 62J.03, subdivision 4; 62J.26, subdivisions 1, 2, 3, 4, 5; 116C.779,
subdivision 1; 116C.7792; 216B.1691, subdivision 2f; 216B.241, by adding a
subdivision; 216B.2422, by adding a subdivision; 216B.2424, by adding
subdivisions; 216B.243, subdivision 3b; 216B.62, subdivision 3b; 237.025,
subdivisions 6, 9; Laws 2017, chapter 13, article 1, section 15, as amended;
proposing coding for new law in Minnesota Statutes, chapters 216B; 216C;
repealing Minnesota Statutes 2020, sections 115C.13; 216C.417; Laws 2005,
chapter 97, article 10, section 3, as amended.

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

ARTICLE 1

COMMERCE AND CONSUMER PROTECTION AND ENERGY AND UTILITIES
FINANCE

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin (a) 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.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2021 regular or
special legislative sessions, 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 beginDEPARTMENT 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 31,007,000
new text end
new text begin $
new text end
new text begin 28,841,000
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 27,130,000
new text end
new text begin 26,020,000
new text end
new text begin Workers'
Compensation
new text end
new text begin 761,000
new text end
new text begin 761,000
new text end
new text begin Special Revenue
new text end
new text begin 2,060,000
new text end
new text begin 2,060,000
new text end
new text begin Petroleum Tank
new text end
new text begin 1,056,000
new text end
new text begin -0-
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 Telecommunications
new text end

new text begin 3,107,000
new text end
new text begin 3,107,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 1,047,000
new text end
new text begin 1,047,000
new text end
new text begin Special Revenue
new text end
new text begin 2,060,000
new text end
new text begin 2,060,000
new text end

new text begin $2,060,000 each year is from the
telecommunications access Minnesota fund
account in the special revenue fund for the
following transfers. This appropriation is
added to the department's base:
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
appropriation is available until June 30, 2023,
and any unexpended amount on that date must
be returned to the telecommunications access
Minnesota fund;
new text end

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

new text begin (3) $100,000 each year is to the Legislative
Coordinating Commission for captioning of
legislative coverage. This transfer is subject
to Minnesota Statutes, section 16A.281; 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 their
web-based services.
new text end

new text begin Subd. 3. new text end

new text begin Energy Resources
new text end

new text begin 4,380,000
new text end
new text begin 4,380,000
new text end

new text begin (a) $150,000 each year is to remediate
vermiculate 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 (b) $832,000 each year is for energy regulation
and planning unit staff.
new text end

new text begin Subd. 4. new text end

new text begin Petroleum Tank Release Compensation
Board
new text end

new text begin 1,056,000
new text end
new text begin -0-
new text end

new text begin This appropriation is from the petroleum tank
fund to account for base adjustments provided
in Minnesota Statutes, section 115C.13.
new text end

new text begin Subd. 5. new text end

new text begin Financial Institutions
new text end

new text begin 1,390,000
new text end
new text begin 1,390,000
new text end

new text begin $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 Subd. 6. new text end

new text begin Administrative Services
new text end

new text begin 9,122,000
new text end
new text begin 8,498,000
new text end

new text begin (a) $384,000 each year is 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) $350,000 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 fiscal year 2022 and $208,000
in fiscal year 2023 are for IT system
modernization. The base amount in fiscal year
2024 and beyond is $0.
new text end

new text begin Subd. 7. new text end

new text begin Enforcement
new text end

new text begin 5,268,000
new text end
new text begin 5,268,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 5,067,000
new text end
new text begin 5,067,000
new text end
new text begin Workers'
Compensation
new text end
new text begin 201,000
new text end
new text begin 201,000
new text end

new text begin (a) $279,000 each year is 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 Subd. 8. new text end

new text begin Insurance
new text end

new text begin 6,424,000
new text end
new text begin 6,093,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 5,563,000
new text end
new text begin 5,533,000
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) $642,000 each year is for health insurance
rate review staffing.
new text end

new text begin (b) $412,000 each year is for actuarial work
to prepare for implementation of
principle-based reserves.
new text end

new text begin (c) $30,000 in fiscal year 2022 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) $425,000 each year is 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 Subd. 9. new text end

new text begin Mandated Health Benefit Proposals
Evaluation
new text end

new text begin 105,000
new text end
new text begin 105,000
new text end

new text begin $105,000 each year is to evaluate legislation
for new mandated health benefits under
Minnesota Statutes, section 62J.26, as
amended by article 3.
new text end

new text begin Subd. 10. new text end

new text begin Continuation of State Innovation
Waiver
new text end

new text begin 155,000
new text end
new text begin -0-
new text end

new text begin $155,000 in fiscal year 2022 is to prepare and
submit an application for continuance of the
state innovation waiver pursuant to article 4,
section 2.
new text end

Sec. 3. new text beginDEPARTMENT OF EDUCATION
new text end

new text begin Subdivision 1. new text end

new text begin Transfer
new text end

new text begin $300,000 in fiscal year 2022 is transferred
from the consumer education account in the
special revenue fund to the general fund.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation
new text end

new text begin $
new text end
new text begin 150,000
new text end
new text begin $
new text end
new text begin 150,000
new text end

new text begin (a) $150,000 in fiscal year 2022 and $150,000
in fiscal year 2023 are for grants to the
Minnesota Council on Economic Education.
This is a onetime appropriation.
new text end

new text begin (b) The funds under paragraph (a) must be
used by the council to:
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 their work relates to activities in clauses (1)
and (2).
new text end

new text begin (c) 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 its 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 (d) 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

Sec. 4. new text beginMINNESOTA MANAGEMENT AND
BUDGET
new text end

new text begin $
new text end
new text begin 49,000
new text end
new text begin $
new text end
new text begin 49,000
new text end

new text begin $49,000 each year is for consultation with the
commissioner of commerce to evaluate
legislation for new mandated health benefits
under Minnesota Statutes, section 62J.26, as
amended by article 3.
new text end

Sec. 5. new text beginDEPARTMENT OF HEALTH
new text end

new text begin $
new text end
new text begin 37,000
new text end
new text begin $
new text end
new text begin 37,000
new text end

new text begin $37,000 each year is for consultation with the
commissioner of commerce to evaluate
legislation for new mandated health benefits
under Minnesota Statutes, section 62J.26, as
amended by article 3.
new text end

Sec. 6. new text beginPUBLIC UTILITIES COMMISSION
new text end

new text begin $
new text end
new text begin 7,793,000
new text end
new text begin $
new text end
new text begin 7,793,000
new text end

new text begin (a) $21,000 each year is to process utility
applications to install equipment crossing a
railroad right-of-way.
new text end

new text begin (b) $300,000 each year is the enhance the
commission's decision-making capability.
new text end

Sec. 7. new text beginTRANSFER.
new text end

new text begin The commissioner of management and budget shall transfer $150,000,000 in fiscal year
2023 from the general fund to the premium security plan account in Minnesota Statutes,
section 62E.25, subdivision 1. This is a onetime transfer.
new text end

Sec. 8. new text beginCANCELLATION; 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

ARTICLE 2

RENEWABLE DEVELOPMENT ACCOUNT APPROPRIATIONS

Section 1. new text beginRENEWABLE DEVELOPMENT FINANCE.
new text end

new text begin (a) 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
renewable development account in the special revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, and are available for the fiscal years indicated
for each purpose. The figures "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.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2021 regular or
special 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 beginDEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
new text end

new text begin $
new text end
new text begin 7,500,000
new text end
new text begin $
new text end
new text begin -0-
new text end

new text begin (a) Clean Energy Career Training Pilot
Project.
$2,500,000 the first year is for a grant
to Northgate Development, LLC, for a pilot
project to provide training pathways into
careers in the clean energy sector for students
and young adults in underserved communities.
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 individuals with
low incomes.
new text end

new text begin (b) The pilot project must provide skills
training relevant to the design, construction,
operation, or maintenance of:
new text end

new text begin (1) systems producing renewable solar or wind
energy;
new text end

new text begin (2) systems resulting in improvements in
energy efficiency as defined in Minnesota
Statutes, section 216B.241, subdivision 1;
new text end

new text begin (3) systems of energy storage for renewable
energy systems, 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 usage 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 or
industry certification related to the fields in
paragraph (b) and then to stable career
employment at a living wage.
new text end

new text begin (d) 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 (e) By January 15, 2023, the commissioner
must report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over economic development on
the results of the pilot program, including but
not limited to information on use of grant
funds and program outcomes.
new text end

new text begin (f) Notwithstanding Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(j), $5,000,000 the first year is 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
and any amount unexpended by June 30, 2022,
must be returned to the renewable
development account under Minnesota
Statutes, section 116C.779, subdivision 1.
new text end

Sec. 3. new text beginDEPARTMENT 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 32,905,000
new text end
new text begin $
new text end
new text begin 3,750,000
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 Final "Made In Minnesota" solar
energy production program administration
new text end

new text begin $21,155,000 the first year is appropriated from
the renewable development account in the
special revenue fund established under
Minnesota Statutes, section 116C.779,
subdivision 1, to make the final payments for
the remaining program obligations under the
"Made in Minnesota" solar energy production
incentive program in Minnesota Statutes,
section 216C.417. Of this amount, $100,000
the first year is to administer the final
payments for the program. Any remaining
unspent funds at the end of fiscal year 2025
cancel to the renewable development account.
new text end

new text begin Subd. 3. new text end

new text begin Solar for Schools
new text end

new text begin $8,000,000 the first year is for the solar for
schools program under Minnesota Statutes,
section 216C.376. Any unobligated amount
of this appropriation remaining on June 30,
2026, is canceled to the renewable
development account.
new text end

new text begin Subd. 4. new text end

new text begin Wood Pellet Production Incentive
new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j),
$3,750,000 each year is for wood pellet
manufacturing incentives under Minnesota
Statutes, section 216B.2428. Any unobligated
amount of this appropriation remaining on
June 30, 2023, is canceled to the renewable
development account.
new text end

Sec. 4. new text beginUNIVERSITY OF MINNESOTA
new text end

new text begin $
new text end
new text begin 10,000,000
new text end
new text begin $
new text end
new text begin -0-
new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j),
$10,000,000 the first year is to the Board of
Regents of the University of Minnesota, West
Central Research and Outreach Center, for the
purpose of leading research, development, and
advancement of energy storage systems that
utilize hydrogen and ammonia production
from renewables and other sources of clean
energy. This is a onetime appropriation and
any amount unexpended by June 30, 2025,
must be returned to the renewable
development account under Minnesota
Statutes, section 116C.779, subdivision 1.
new text end

Sec. 5. new text beginDEPARTMENT OF
ADMINISTRATION
new text end

new text begin $
new text end
new text begin 5,000,000
new text end
new text begin $
new text end
new text begin -0-
new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j),
$5,000,000 the first year is for deposit in the
state building energy conservation
improvement account established in Minnesota
Statutes, section 16B.86, for the purpose of
providing loans to state agencies for energy
conservation projects under Minnesota
Statutes, section 16B.87.
new text end

Sec. 6. new text beginCANCELLATION; FISCAL YEAR 2021.
new text end

new text begin The fiscal year 2021 appropriation under Laws 2019, First Special Session chapter 7,
article 1, section 6, subdivision 7, paragraph (d), 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

ARTICLE 3

MANDATED HEALTH BENEFIT PROPOSALS EVALUATION

Section 1.

Minnesota Statutes 2020, section 62J.03, subdivision 4, is amended to read:


Subd. 4.

Commissioner.

"Commissioner" means the commissioner of healthnew text begin, unless
another commissioner is specified
new text end.

Sec. 2.

Minnesota Statutes 2020, section 62J.26, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For purposes of this section, the following terms have the
meanings given unless the context otherwise requires:

(1) "commissioner" means the commissioner of commerce;

new text begin (2) "enrollee" has the meaning given in section 62Q.01, subdivision 2b;
new text end

deleted text begin (2)deleted text endnew text begin (3)new text end "health plan" means a health plan as defined in section 62A.011, subdivision 3,
but includes coverage listed in clauses (7) and (10) of that definition;

deleted text begin (3)deleted text endnew text begin (4)new text end "mandated health benefit proposal" new text beginor "proposal" new text endmeans a proposal that would
statutorily require a health plan new text begincompany new text endto do the following:

(i) provide coverage or increase the amount of coverage for the treatment of a particular
disease, condition, or other health care need;

(ii) provide coverage or increase the amount of coverage of a particular type of health
care treatment or service or of equipment, supplies, or drugs used in connection with a health
care treatment or service; deleted text beginor
deleted text end

(iii) provide coverage for care delivered by a specific type of providerdeleted text begin.deleted text endnew text begin;
new text end

new text begin (iv) require a particular benefit design or impose conditions on cost-sharing for:
new text end

new text begin (A) the treatment of a particular disease, condition, or other health care need;
new text end

new text begin (B) a particular type of health care treatment or service; or
new text end

new text begin (C) the provision of medical equipment, supplies, or a prescription drug used in
connection with treating a particular disease, condition, or other health care need; or
new text end

new text begin (v) impose limits or conditions on a contract between a health plan company and a health
care provider.
new text end

"Mandated health benefit proposal" does not include health benefit proposals amending
the scope of practice of a licensed health care professional.

Sec. 3.

Minnesota Statutes 2020, section 62J.26, subdivision 2, is amended to read:


Subd. 2.

Evaluation process and content.

(a) The commissioner, in consultation with
the commissioners of health and management and budget, must evaluate new text beginall new text endmandated health
benefit proposals as provided under subdivision 3.

(b) The purpose of the evaluation is to provide the legislature with a complete and timely
analysis of all ramifications of any mandated health benefit proposal. The evaluation must
include, in addition to other relevant information, the followingnew text begin to the extent applicablenew text end:

(1) scientific and medical information on the deleted text beginproposed health benefitdeleted text endnew text begin mandated health
benefit proposal
new text end, on the potential for harm or benefit to the patient, and on the comparative
benefit or harm from alternative forms of treatmentnew text begin, and must include the results of at least
one professionally accepted and controlled trial comparing the medical consequences of
the proposed therapy, alternative therapy, and no therapy
new text end;

(2) public health, economic, and fiscal impacts of the deleted text beginproposed mandatedeleted text endnew text begin mandated health
benefit proposal
new text end on persons receiving health services in Minnesota, on the relative
cost-effectiveness of the deleted text beginbenefitdeleted text endnew text begin proposalnew text end, and on the health care system in general;

(3) the extent to which the new text begintreatment, new text endservicenew text begin, equipment, or drugnew text end is generally utilized
by a significant portion of the population;

(4) the extent to which insurance coverage for the deleted text beginproposed mandated benefitdeleted text endnew text begin mandated
health benefit proposal
new text end is already generally available;

new text begin (5) the extent to which the mandated health benefit proposal, by payer category, would
apply to the benefits offered to the payer's enrollees;
new text end

deleted text begin (5)deleted text endnew text begin (6)new text end the extent to which the deleted text beginmandated coveragedeleted text endnew text begin mandated health benefit proposalnew text end will
increase or decrease the cost of the new text begintreatment, new text endservicenew text begin, equipment, or drugnew text end; deleted text beginand
deleted text end

new text begin (7) the extent to which the mandated health benefit proposal may increase enrollee
premiums; and
new text end

new text begin (8) if the proposal applies to a qualified health plan as defined in section 62A.011,
subdivision 7, the cost to the state to defray the cost of the mandated health benefit proposal
using commercial market reimbursement rates in accordance with Code of Federal
Regulations, title 45, section 155.70.
new text end

deleted text begin (6)deleted text endnew text begin (c)new text end The commissioner deleted text beginmaydeleted text endnew text begin shallnew text end consider actuarial analysis done by health deleted text begininsurersdeleted text endnew text begin
plan companies and any other proponent or opponent of the mandated health benefit proposal
new text end
in determining the cost of the deleted text beginproposed mandated benefitdeleted text endnew text begin proposalnew text end.

deleted text begin (c)deleted text endnew text begin (d)new text end The commissioner must summarize the nature and quality of available information
on these issues, and, if possible, must provide preliminary information to the public. The
commissioner may conduct research on these issues or may determine that existing research
is sufficient to meet the informational needs of the legislature. The commissioner may seek
the assistance and advice of researchers, community leaders, or other persons or organizations
with relevant expertise.

Sec. 4.

Minnesota Statutes 2020, section 62J.26, subdivision 3, is amended to read:


Subd. 3.

deleted text beginRequestsdeleted text endnew text begin Requirementsnew text end for evaluation.

(a) deleted text beginWhenever a legislative measure
containing a mandated health benefit proposal is introduced as a bill or offered as an
amendment to a bill, or is likely to be introduced as a bill or offered as an amendment, a
deleted text endnew text begin
No later than August 1 of the year preceding the legislative session in which a legislator is
planning on introducing a bill containing a mandated health benefit proposal, or is planning
on offering an amendment to a bill that adds a mandated health benefit, the prospective
author must notify the chair of one of the standing legislative committees that have
jurisdiction over the subject matter of the proposal. Once notification is received, the
new text end chair
deleted text begin of any standing legislative committee that has jurisdiction over the subject matter of the
proposal may request that
deleted text endnew text begin must notifynew text end the commissioner deleted text begincompletedeleted text endnew text begin thatnew text end an evaluation of deleted text beginthedeleted text endnew text begin
a mandated health benefit
new text end proposal deleted text beginunder this section, todeleted text endnew text begin is required to be completed in
accordance with this section in order to
new text end inform deleted text beginany committee of floordeleted text endnew text begin the legislature before
any
new text end action new text beginis taken on the proposal new text endby either house of the legislature.

(b) The commissioner must conduct an evaluation described in subdivision 2 of each
mandated health benefit proposal for which an evaluation is deleted text beginrequesteddeleted text endnew text begin requirednew text end under
paragraph (a)deleted text begin, unless the commissioner determines under paragraph (c) or subdivision 4
that priorities and resources do not permit its evaluation
deleted text end.

(c) If deleted text beginrequests fordeleted text endnew text begin thenew text end evaluation of multiple proposals are deleted text beginreceiveddeleted text endnew text begin requirednew text end, the
commissioner must consult with the chairs of the standing legislative committees having
jurisdiction over the subject matter of the mandated health benefit proposals to prioritize
the deleted text beginrequestsdeleted text endnew text begin evaluationsnew text end and establish a reporting date for each proposal to be evaluated.
deleted text begin The commissioner is not required to direct an unreasonable quantity of the commissioner's
resources to these evaluations.
deleted text end

Sec. 5.

Minnesota Statutes 2020, section 62J.26, subdivision 4, is amended to read:


Subd. 4.

Sources of funding.

(a) The commissioner deleted text beginneeddeleted text endnew text begin shallnew text end not use any funds for
purposes of this section other than as provided in this subdivision or as specified in an
appropriation.

(b) The commissioner may seek and accept funding from sources other than the state to
pay for evaluations under this section to supplement or replace state appropriations. Any
money received under this paragraph must be deposited in the state treasury, credited to a
separate account for this purpose in the special revenue fund, and is appropriated to the
commissioner for purposes of this section.

(c) If deleted text begina request fordeleted text end an evaluation new text beginis required new text endunder this section deleted text beginhas been madedeleted text end, the
commissioner may use for purposes of the evaluation:

(1) any funds appropriated to the commissioner specifically for purposes of this section;
or

(2) funds available under paragraph (b), if use of the funds for evaluation of that mandated
health benefit proposal is consistent with any restrictions imposed by the source of the funds.

(d) The commissioner must ensure that the source of the funding has no influence on
the process or outcome of the evaluation.

Sec. 6.

Minnesota Statutes 2020, section 62J.26, subdivision 5, is amended to read:


Subd. 5.

Report to legislature.

The commissioner must submit a written report on the
evaluation to the deleted text beginlegislaturedeleted text endnew text begin author of the proposal and to the chairs and ranking minority
members of the legislative committees with jurisdiction over health insurance policy and
finance
new text end no later than 180 days after the deleted text beginrequest. The report must be submitted in compliance
with sections 3.195 and 3.197
deleted text endnew text begin commissioner receives notification from a chair as required
under subdivision 3
new text end.

ARTICLE 4

MINNESOTA PREMIUM SECURITY PLAN

Section 1.

Laws 2017, chapter 13, article 1, section 15, as amended by Laws 2017, First
Special Session chapter 6, article 5, section 10, and Laws 2019, First Special Session chapter
9, article 8, section 19, is amended to read:


Sec. 15. MINNESOTA PREMIUM SECURITY PLAN FUNDING.

(a) The Minnesota Comprehensive Health Association shall fund the operational and
administrative costs and reinsurance payments of the Minnesota security plan and association
using the following amounts deposited in the premium security plan account in Minnesota
Statutes, section 62E.25, subdivision 1, in the following order:

(1) any federal funding available;

(2) funds deposited under article 1, sections 12 and 13;

(3) any state funds from the health care access fund; and

(4) any state funds from the general fund.

(b) The association shall transfer from the premium security plan account any remaining
state funds not used for the Minnesota premium security plan by June 30, deleted text begin2023deleted text endnew text begin 2025new text end, to the
commissioner of commerce. Any amount transferred to the commissioner of commerce
shall be deposited in the health care access fund in Minnesota Statutes, section 16A.724.

(c) The Minnesota Comprehensive Health Association may not spend more than
$271,000,000 for benefit year 2018 and not more than $271,000,000 for benefit year 2019
for the operational and administrative costs of, and reinsurance payments under, the
Minnesota premium security plan.

Sec. 2. new text beginCONTINUATION OF STATE INNOVATION WAIVER.
new text end

new text begin Subdivision 1. new text end

new text begin Submission of waiver continuation application. new text end

new text begin The commissioner of
commerce shall apply to the secretary of health and human services under United States
Code, title 42, section 18052, for a continuation of the state innovation waiver previously
granted to continue the Minnesota premium security plan for benefit years beginning January
1, 2023, and future years, to maximize federal funding. The waiver continuation application
must clearly state that operation of the Minnesota premium security plan after the 2022
benefit year is contingent on approval of the waiver continuation request.
new text end

new text begin Subd. 2. new text end

new text begin Consultation. new text end

new text begin In preparing the waiver continuation application, the
commissioner shall consult with the commissioner of human services, the commissioner of
health, and the MNsure board.
new text end

new text begin Subd. 3. new text end

new text begin Application timelines; notification. new text end

new text begin The commissioner shall submit the waiver
continuation application to the secretary of health and human services on or before June
15, 2021. The commissioner shall notify the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services and insurance, and
the board of directors of the Minnesota Comprehensive Health Association, of any federal
actions regarding the waiver continuation application.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota premium security plan administration. new text end

new text begin (a) The Minnesota
Comprehensive Health Association must administer the Minnesota premium security plan
through the 2022 benefit year.
new text end

new text begin (b) The Minnesota Comprehensive Health Association must administer the Minnesota
premium security plan through the 2023 benefit year, provided that the waiver continuation
application described in this section is granted.
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 5

ENERGY POLICY

Section 1.

Minnesota Statutes 2020, section 16B.86, is amended to read:


16B.86 deleted text beginPRODUCTIVITYdeleted text endnew 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 them.
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 beginproductivitydeleted text endnew text begin state building energy conservation
improvement revolving
new text end loan account is new text beginestablished as new text enda deleted text beginspecialdeleted text endnew text begin separatenew text end account in the state
treasury. new text beginThe 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 endMoney in the account is appropriated to the commissioner of
administration to make loans to deleted text beginfinance agency projects that will result in either reduced
operating costs or increased revenues, or both, for a state agency.
deleted text endnew 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 beginPRODUCTIVITYdeleted text endnew text begin STATE BUILDING
ENERGY IMPROVEMENT CONSERVATION
new text end LOANS.

Subdivision 1.

Committee.

The deleted text beginProductivitydeleted text endnew text begin State Building Energy Conservation
Improvement
new text end Loan Committee consists of the commissioners of administration, management
and budget, and deleted text beginrevenuedeleted text endnew text begin commercenew 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 endAn agency shall apply for a loan on a form
deleted text begin provideddeleted text endnew text begin developednew text end by the commissioner of administrationdeleted text begin.deleted text endnew 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; and
new text end

new text begin (6) 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 beginThe 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 endnew text begin Priority
in granting awards shall be given to projects for state buildings located within the retail
electric service area of the public 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 administrationnew text begin,new text end who shall deposit it in the deleted text beginproductivitydeleted text endnew text begin state building energy
conservation improvement revolving
new text end loan deleted text beginfunddeleted text endnew 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.

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)deleted text begin anddeleted text endnew text begin,new text end (g),new text begin and (m),new text end 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. new text beginExcept as otherwise provided herein,
members of the advisory group shall be chosen by the public utility. The public utility may
design a request for proposal in conjunction with the advisory group.
new text endThe 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, potential benefit to Minnesota citizens and businesses and the
utility's ratepayers.

new text begin (m) The cost of acquiring the services of the independent third-party expert described
in paragraph (l) and any other costs incurred in administering the advisory group and its
actions as required by this section, not to exceed $150,000, shall be paid from funds withheld
by the public utility under paragraph (e).
new text end

deleted text begin (m)deleted text end new text begin(n) new text endThe advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted deleted text beginby
the advisory group
deleted text end to the deleted text beginlegislaturedeleted text endnew text begin commissionnew text end. 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 deleted text begin(n)deleted text endnew text begin (o)new text end.

deleted text begin (n)deleted text end new text begin(o) new text endThe commission shall present its recommended appropriations from the account
to the senate and house of representatives committees with jurisdiction over energy policy
and finance annually by February 15. Expenditures from the account must be appropriated
by law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

deleted text begin (o)deleted text end new text begin(q) new text endA 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.

deleted text begin (p)deleted text end new text begin(r) new text endThe deleted text beginadvisory groupdeleted text end new text beginpublic utility new text endmust annually, by February 15, report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
energy policy on projects funded by the account for the prior year and all previous years.
The report must, to the extent possible and reasonable, itemize the actual and projected
financial benefit to the public utility's ratepayers of each project.

deleted text begin (q)deleted text end new text begin(s) new text endBy February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall submit a written report regarding the availability of funds in
and obligations of the account to the chairs and ranking minority members of the senate
and house committees with jurisdiction over energy policy and finance, the public utility,
and the advisory group.

deleted text begin (r)deleted text end new text begin(t) new text endA 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.

deleted text begin (s)deleted text end new text begin(u) new text endFinal reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public website designated by the commissioner
of commerce.

deleted text begin (t)deleted text end new text begin(v) new text endAll final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

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

Sec. 4.

Minnesota Statutes 2020, section 116C.7792, is amended to read:


116C.7792 SOLAR ENERGY PRODUCTION INCENTIVE PROGRAM.

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

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

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

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

(1) $10,000,000 in 2021; deleted text beginand
deleted text end

(2) $10,000,000 in 2022new text begin;
new text end

new text begin (3) $5,000,000 in 2023; and
new text end

new text begin (4) $5,000,000 in 2024new text end.

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

(f) Any unspent amount remaining on January 1, deleted text begin2023deleted text endnew text begin 2025new text end, must be transferred to the
renewable development account.

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

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

Sec. 5.

Minnesota Statutes 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 2b, 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.

(i) deleted text beginBeginning July 1, 2014, and eachdeleted text endnew text begin Bynew text end July 1 deleted text beginthrough 2020, eachdeleted text endnew text begin, 2021, anew text end public utility
deleted text begin shalldeleted text endnew text begin mustnew text end file a new text beginfinal new text endreport with the commission deleted text beginreporting itsdeleted text endnew text begin detailing the utility'snew text end progress
deleted text begin indeleted text endnew text begin towardnew text end achieving the solar energy standard established 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. 6.

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 Minnesota efficient technology accelerator. new text end

new text begin (a) A nonprofit organization
with extensive experience implementing energy efficiency programs in Minnesota and
conducting efficient technology research in the state may file a proposal with the
commissioner of commerce for a program to accelerate deployment and reduce the cost of
emerging and innovative efficient technologies and approaches and lead to lower energy
costs for Minnesota consumers. Activities of the accelerator shall include strategic initiatives
with technology manufacturers to improve the efficiency and performance of their products,
as well as with equipment installers and other key actors in the technology supply chain.
Benefits of activities expected from the accelerator include cost effective energy savings
for Minnesota utilities, bill savings for Minnesota utility consumers, enhanced employment
opportunities in the state, and avoidance of greenhouse gas emissions.
new text end

new text begin (b) Prior to developing and filing a proposal, the nonprofit must submit to the
commissioner of commerce a notice of intent to file a proposal under this subdivision
describing the eligibility and qualifications of the nonprofit to file a proposal under this
subdivision. The commissioner shall review the notice of intent and issue a determination
of eligibility within 30 days if the commissioner finds that the nonprofit meets the
qualifications required.
new text end

new text begin (c) Upon receiving the determination by the commissioner under paragraph (b), the
nonprofit organization must engage with interested stakeholders on at least the following
attributes 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) a proposed energy savings attribution, evaluation, and allocation methodology that
includes a method for calculating net benefits from activities under the program. Energy
savings and net benefits from activities under the program must be allocated to participating
utilities and be considered when determining cost-effectiveness of achieved energy savings
and related incentives;
new text end

new text begin (3) a process to ensure that the technologies that are selected for the program benefit
electric and natural gas utility customers in proportion to the funds each utility sector
contributes to the program and address residential, commercial, and industrial building
energy use; and
new text end

new text begin (4) a process for identifying and tracking performance metrics for each technology
selected against which progress can be measured, including one or more methods for
evaluating cost-effectiveness.
new text end

new text begin (d) No earlier than January 1, 2023, the nonprofit may file a program proposal under
this subdivision. The filing must describe how the proposal addresses each of the required
attributes listed in paragraph (c), clauses (1) to (4), and how the proposal addresses the
recommendations and concerns identified in the stakeholder engagement process required
under paragraph (c).
new text end

new text begin (e) Within ten days of receiving the proposal, the commissioner shall provide public
notice of the proposal and solicit feedback from interested parties for a period of not less
than ten business days.
new text end

new text begin (f) Within 90 days of the filing of the proposal, the commissioner shall approve, modify,
or reject a proposal under this subdivision. In making a determination, the commissioner
must consider public comments, the expected costs and benefits of the program from the
perspectives of ratepayers, the participating utilities, and society, and the expected costs
and benefits relative to other energy conservation programming authorized under this section.
new text end

new text begin (g) A program under this section may not be implemented prior to January 1, 2024. The
initial program term may be up to five years. At the request of the nonprofit, the
commissioner may renew a program approved under paragraph (d) for up to five years at
a time. The nonprofit shall submit to the commissioner a request to renew the program no
later than 180 days prior to the end of the term of the program approved or renewed under
this subdivision. When making a request to renew and determination on renewal, the
nonprofit and commissioner shall follow the process established under this subdivision,
except that a qualified nonprofit is not required to seek eligibility under paragraph (b).
new text end

new text begin (h) Upon approval, each public utility with over 30,000 customers shall participate in
the program and contribute to the approved budget of the program in proportion to its gross
operating revenue from sales of gas or electric service in the state, excluding revenues from
large customer facilities exempted under subdivision 1a. No participating utility may be
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
thereafter. Other utilities may elect to participate in the accelerator program. 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 cover 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 (i) The commissioner shall not approve more than one program for implementation at
a time under paragraphs (d) to (e) or (f). No more than one program approved under this
subdivision may be implemented or in operation at any given time.
new text end

new text begin (j) At least once during the term of a program that is approved or renewed, the
commissioner shall contract for an independent review of the program to determine if it
meets the objectives and requirements of this section and any criteria established by the
department as a condition of approval. The review may not be conducted by an entity or
person that acted as a stakeholder or interested party, or otherwise participated in the program
preparation, filing, or review process. Upon completion, the reviewer shall prepare a report
detailing findings and recommendations, and the commissioner must transmit a copy of the
report to the chairs and ranking minority members of the house of representatives and senate
committees with jurisdiction over energy policy. Funds required to conduct the review and
prepare the report shall be deducted from the total contribution amount under paragraph
(h).
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.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 As a part
of a resource plan filing, a utility that has scheduled the retirement of an electric generating
facility located in Minnesota must include in the filing a narrative identifying and describing
the utility's plan and efforts made to date to work with the utility's workers represented by
an exclusive representative 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 benefits;
new text end

new text begin (5) identify and maximize 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 its rates as a result of efforts made under this
subdivision to minimize impacts to workers.
new text end

Sec. 8.

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 on January 1, 2023, and ending on
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. 9.

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 21, 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 accomplished 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, modify, or reject a proposed electrification project
that meets the requirements of this subdivision if it finds the electrification project is 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
sources 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 through 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) Except as provided in paragraph (a), the commission is prohibited from approving a
power purchase agreement after the agreement period unless it approves an electrification
project. Nothing in this section shall require 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. 10.

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 the lifecycle carbon
accounting framework and cost-benefit test for innovative resources issued by the
commission, the terms defined in this subdivision have the meanings given.
new text end

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

new text begin (c) "Biogas" means gas created by the anaerobic digestion of biomass, gasification of
biomass, or other effective conversion processes.
new text end

new text begin (d) "Carbon capture and utilization" means the capture of greenhouse gases that would
otherwise be released into the atmosphere and the use of those gases to create industrial or
commercial products for sale.
new text end

new text begin (e) "Carbon-free resource" means an electricity generation facility 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 (f) "District energy" means a network of hot- and cold-water pipes used to provide
thermal energy to multiple buildings.
new text end

new text begin (g) "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 the natural gas utility's conservation improvement
program.
new text end

new text begin (h) "Lifecycle greenhouse gas emissions" means the emissions of an energy resource
associated with the production, processing, transmission, and consumption of energy
associated with the resource.
new text end

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

new text begin (j) "Power-to-ammonia" means the creation of ammonia from hydrogen created via
power-to-hydrogen using a process that has lower lifecycle greenhouse gas intensity than
conventional geologic natural gas.
new text end

new text begin (k) "Power-to-hydrogen" means the use of electricity generated by a carbon-free resource
to create hydrogen.
new text end

new text begin (l) "Renewable natural gas" means biogas that has been processed to be interchangeable
with conventional natural gas and has lower lifecycle greenhouse gas intensity than
conventional geologic natural gas.
new text end

new text begin (m) "Strategic electrification" means the installation of electric end-use equipment where
natural gas is a primary or back-up fuel source provided that installation (1) will result in
a net reduction in statewide greenhouse gas emissions as defined in section 216H.01,
subdivision 2, over the life of the equipment as compared to the most efficient commercially
available natural gas alternative, and (2) is installed and operated in a manner that improves
the customer's electric utility's load factor. Electric end-use equipment installed pursuant
to this section is the exclusive property of the building owner. Strategic electrification does
not include investments that the commissioner determines could be reasonably included in
the natural gas utility's conservation improvement program pursuant to section 216B.241.
Strategic electrification approved pursuant to this section is not eligible for a financial
incentive pursuant to section 216B.241, subdivision 2c.
new text end

new text begin (n) "Total incremental cost" means the sum of:
new text end

new text begin (1) return of and on capital investments for the production, processing, pipeline
interconnection, storage, and distribution of innovative resources included in a utility
innovation plan approved pursuant to subdivision 2;
new text end

new text begin (2) incremental operating costs associated with capital investments in infrastructure for
the production, processing, pipeline interconnection, storage, and distribution of innovative
resources included in a utility innovation plan approved under subdivision 2;
new text end

new text begin (3) the incremental cost to procure innovative resources from third parties;
new text end

new text begin (4) the incremental costs to develop and administer programs included in a utility
innovation plan; and
new text end

new text begin (5) incremental costs for research and development related to innovative resources
approved pursuant to subdivision 2, less the sum of:
new text end

new text begin (i) any value received by the natural gas utility upon the resale of the innovative resources
or their byproducts, including any environmental credits included with the resale of renewable
gaseous fuels or value received by the natural gas utility when innovative resources are used
as vehicle fuel;
new text end

new text begin (ii) any cost savings achieved through avoidance of conventional natural gas purchases,
including but not limited to any avoided commodity purchases or avoided pipeline costs;
and
new text end

new text begin (iii) any 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 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 recommended plan must describe or include, as applicable,
the following components:
new text end

new text begin (1) the recommended innovative resource or resources the utility plans to implement to
advance the state's goals 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) any recommended research and development investments related to innovative
resources the utility plans to undertake as part of the plan;
new text end

new text begin (3) the total lifecycle greenhouse gas emissions that the natural gas utility expects to
reduce or avoid pursuant to the plan;
new text end

new text begin (4) the natural gas utility's estimate of how emissions expected to be avoided or reduced
compare to total emissions from natural gas use by its customers in 2020;
new text end

new text begin (5) any pilot program proposed by the natural gas utility related to the development or
provision of innovative resources, including an estimate of the total incremental costs to
implement the pilot program;
new text end

new text begin (6) the cost effectiveness of innovative resources proposed from the perspective of the
natural gas utility, society, the utility's nonparticipating customers, and participating
customers as compared to other innovative resources that could be deployed to reduce or
avoid the same greenhouse gas emissions targeted by the utility's proposed resource;
new text end

new text begin (7) for any pilot not previously approved as part of the utility's most recent innovation
plan, a third-party analysis of the lifecycle greenhouse gas intensity of any innovative
resources proposed to be included in the pilot;
new text end

new text begin (8) for any proposed pilot not previously approved as part of the utility's most recent
innovation plan, a third-party analysis of the forecasted lifecycle greenhouse gas emissions
reductions achieved or the lifecycle greenhouse gas emissions reduced or avoided if the
proposed pilot is implemented;
new text end

new text begin (9) an explanation of how the utility calculated the lifecycle greenhouse gas emissions
avoided or reduced by each pilot including descriptions of how the utility's method deviated,
if at all, from the carbon accounting frameworks established by the commission;
new text end

new text begin (10) whether the recommended 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 so, a description of where those benefits
will be realized;
new text end

new text begin (11) a description of third-party systems and processes the utility plans to use to:
new text end

new text begin (i) track the proposed innovative resources included in the plan so that environmental
benefits are used only for this plan and not claimed for any other program; and
new text end

new text begin (ii) verify the environmental attributes and greenhouse gas intensity of proposed
innovative resources included in the plan;
new text end

new text begin (12) a description of known local job impacts and the steps the utility and its energy
suppliers and contractors are taking to maximize the availability of construction employment
opportunities for local workers;
new text end

new text begin (13) a description of how the utility proposes to recover annual total incremental costs
and any steps the utility has taken or proposes to take to reduce the expected cost impact
on low- and moderate-income residential customers;
new text end

new text begin (14) any steps the utility has taken or proposes to take to ensure that low- and moderate-
income residential customers will benefit from innovative resources included in the plan;
new text end

new text begin (15) a report on the utility's progress toward implementing the approved proposals
contained in its previously approved innovation plan, if applicable; and
new text end

new text begin (16) a report of the utility's progress toward achieving the cost-effectiveness objectives
established upon approval of its previously approved innovation plan, if applicable.
new text end

new text begin (b) Along with its recommended plan, the natural gas utility must provide forecasted
total incremental costs and lifecycle greenhouse gas emissions for:
new text end

new text begin (1) a set of pilots that the utility estimates would provide approximately half of the
greenhouse gas reduction or avoidance benefits of the utility's preferred plan;
new text end

new text begin (2) a set of pilots that the utility estimates would provide approximately one and a half
times the greenhouse gas reduction or avoidance benefits of the utility's preferred plan; and
new text end

new text begin (3) a set of pilots that the utility estimates would provide approximately twice the
greenhouse gas reduction or avoidance benefits of the utility's preferred plan.
new text end

new text begin (c) In deciding whether to approve, modify, or deny a plan, the commission may not
approve an innovation plan unless it finds that:
new text end

new text begin (1) the size, scope, and scale of the plan and the incremental total cost of the plan will
result in net benefits under the cost-benefit framework established by the commission;
new text end

new text begin (2) the plan will promote the use of renewable energy resources and reduce or avoid
greenhouse gas emissions at a cost level consistent with subdivision 3;
new text end

new text begin (3) the plan will promote 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 conventional geologic natural gas;
new text end

new text begin (5) reasonable systems will be used to track and verify the environmental attributes of
the innovative resources included in the plan, taking into account any third-party tracking
or verification systems available;
new text end

new text begin (6) the costs and revenues expected to be incurred pursuant to the plan are reasonable
in comparison to other innovative resources the utility could deploy to address greenhouse
gas emissions and considering other benefits of the innovative resources included in the
plan;
new text end

new text begin (7) the costs and revenues expected to be incurred for any energy efficiency, district
energy, or strategic electrification measures included in the plan are reasonable in comparison
to the costs of renewable natural gas, biogas, hydrogen produced via power-to-hydrogen,
or ammonia produced via power-to-ammonia resources that the utility could deploy to
address greenhouse gas emissions;
new text end

new text begin (8) the total amount of estimated greenhouse gas reduction or avoidance to be achieved
is reasonable considering the state's goals established in section 216C.05, subdivision 2,
clause (3), and section 216H.02, subdivision 1, customer cost, and the total amount of
greenhouse gas reduction or avoidance achieved under the natural gas utility's previously
approved plans, if applicable; and
new text end

new text begin (9) 50 percent or more of estimated costs included for recovery in the plan are for the
procurement and distribution of renewable natural gas, biogas, hydrogen produced via
power-to-hydrogen, or ammonia produced via power-to-ammonia.
new text end

new text begin (d) The utility bears the burden to prove the actual total incremental costs to implement
the approved innovation plan were reasonable. Prudently incurred costs incurred pursuant
to an approved plan and prudently incurred costs for obtaining 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 natural gas 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 the rate schedule are prudently
incurred. Annual adjustments shall include a rate of return, income taxes on the rate of
return, incremental property taxes, incremental depreciation expense, and incremental
operation and maintenance expense. The rate of return shall be at the level approved by the
commission in the natural gas 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 (e) Upon approval of a utility's plan, the commission shall establish plan cost-effectiveness
objectives based on the cost-benefit test for innovative resources. The cost-effectiveness
objective for each plan should demonstrate incremental progress from the previously
approved plan's cost-effectiveness objective.
new text end

new text begin (f) A natural gas utility with an approved plan must provide annual reports to the
commission regarding the work completed pursuant to the plan, including the costs incurred
under the plan and lifecycle greenhouse gas reduction or avoidance accomplished under
the plan; a description of the processes used to track, verify, and retire the innovative
resources and associated environmental attributes; an update on the lifecycle greenhouse
gas accounting methodology consistent with current science; an update on the economic
impact of the plan including job creation; and the utility's progress toward achieving the
cost-effectiveness objectives established by the commission on approval of the plan. As
part of the annual status report, the natural gas utility may propose modifications to pilot
programs in the plan. In evaluating a utility's annual report, the commission may:
new text end

new text begin (1) approve the continuation of a pilot program, with or without modifications;
new text end

new text begin (2) require the utility to file a new or modified plan to account for changed circumstances;
or
new text end

new text begin (3) disapprove the continuation of a pilot program.
new text end

new text begin (g) Each innovation plan shall be in effect for five years. Once a natural gas utility has
an approved innovation plan, it must file a new innovation plan within four years for
implementation at the end of the prior five-year plan period.
new text end

new text begin (h) A utility may file an innovation plan at any time after this section becomes effective.
new text end

new text begin (i) For purposes of this section, and the commission's lifecycle carbon accounting
framework and cost-benefit test for innovative resources, whenever an analysis or estimate
of lifecycle greenhouse gas emissions reductions, lifecycle greenhouse gas avoidance, or
lifecycle greenhouse gas intensity is required, the analysis will include, but not be limited
to, as applicable:
new text end

new text begin (1) avoided or reduced emissions attributable to utility operations;
new text end

new text begin (2) avoided or reduced emissions from the production, processing, and transmission of
fuels prior to receipt by the utility; and
new text end

new text begin (3) avoided or reduced emissions at the point of end use, but in no event shall the analysis
count any one unit of greenhouse gas emissions avoidance or reduction more than once.
new text end

new text begin The analysis or estimate may rely on emissions factors, default values, or engineering
estimates from a publicly accessible source accepted by a federal or state government agency,
where direct measurement is not technically or economically feasible, if such emissions
factors, default values, or engineering estimates can be demonstrated to produce a reasonable
estimate of greenhouse gas emissions reductions, avoidance, or intensity.
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) The first innovation plan submitted
to the commission by a natural gas utility may not propose, and the commission may not
approve, recovery of annual total incremental costs exceeding the lesser of (1) one and three
quarters percent of the natural gas utility's gross operating revenues from service provided
in the state at the time of plan filing, or (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. Notwithstanding this limitation, the commission may
approve additional annual recovery of up to the lesser of (1) an additional quarter of one
percent of the natural gas utility's gross operating revenues from service provided in the
state at the time of plan filing for recovery, or (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 for 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) community wastewater treatment; or
new text end

new text begin (iii) an organic mixture including at least 15 percent sustainably harvested native prairie
grasses or locally appropriate cover crops selected in consultation with the local Soil and
Water Conservation District or the United States Department of Agriculture, Natural
Resources Conservation Service, by volume.
new text end

new text begin (b) Subsequent innovation plans submitted to the commission may not propose and the
commission may not approve, recovery of annual total incremental costs exceeding the
limits set forth in paragraph (a) unless the commission determines that the utility has
successfully achieved the cost-effectiveness objectives established upon approval of a utility
innovation plan under paragraph (a), in which case the utility may propose, and the
commission may approve, recovery of annual total incremental costs of up to the lesser of
(1) two and three quarters percent of the natural gas utility's gross operating revenues from
service provided in the state at the time of plan filing, or (2) $35 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. Notwithstanding this limitation, the
commission may approve additional annual recovery of up to the lesser of (1) an additional
three quarters of one percent of the natural gas utility's gross operating revenues from service
provided in the state at the time of plan filing for recovery, or (2) $10 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 for 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) community wastewater treatment; or
new text end

new text begin (iii) an organic mixture including at least 15 percent sustainably harvested native prairie
grasses or locally appropriate cover crops selected in consultation with the local Soil and
Water Conservation District or the United States Department of Agriculture, Natural
Resources Conservation Service, by volume.
new text end

new text begin (c) Subsequent innovation plans submitted to the commission may not propose, and the
commission may not approve, recovery of total incremental costs exceeding the limits set
forth in paragraph (b) unless the commission determines that the utility has successfully
achieved the cost-effectiveness objectives established upon approval of a utility innovation
plan under paragraph (b), in which case the utility may propose, and the commission may
approve, recovery of annual total incremental costs of up to the lesser of (1) four percent
of the natural gas utility's gross operating revenues from service provided in the state at the
time of plan filing, or (2) $50 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. Notwithstanding this limitation, the commission may approve additional annual
recovery of up to the lesser of (1) an additional one and one-half percent of the natural gas
utility's gross operating revenues from service provided in the state at the time of plan filing
for recovery, or (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 of incremental costs for 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) community wastewater treatment; or
new text end

new text begin (iii) an organic mixture including at least 15 percent sustainably harvested native prairie
grasses or locally appropriate cover crops selected in consultation with the local Soil and
Water Conservation District or the United States Department of Agriculture, Natural
Resources Conservation Service, by volume.
new text end

new text begin (d) A large customer facility that has been exempted by the commissioner of commerce
from a utility's conservation improvement program under section 216B.241, subdivision
1a, paragraph (b), shall be exempt from the utility's innovation plan offerings and shall not
bear 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 exempted from innovation plan costs
from participating in innovation plan pilots. For purposes of this subdivision, "gross operating
revenues" do not include revenues from large customer facilities exempted from innovation
plan costs.
new text end

new text begin (e) A natural gas utility filing an innovation plan may also include spending and
investments annually up to ten percent of the proposed total incremental costs related to
innovative plan pilots, subject to the limitations in paragraphs (a), (b), and (c).
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 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 conventional natural gas at
the time of the transaction per unit of fossil natural gas that the innovative resource will
displace.
new text end

new text begin An approved green-tariff program must include provisions to ensure reasonable systems
are used to track and verify the environmental attributes of innovative resources included
in the program, taking into account any third-party tracking or verification systems available.
new text end

new text begin Subd. 5. new text end

new text begin Thermal energy leadership challenge. new text end

new text begin The first innovation plan filed by a
natural gas utility with more than 800,000 customers must include a pilot thermal energy
leadership challenge for small- and medium-sized businesses. The pilot program must
provide small- and medium-sized businesses with thermal energy audits to identify
opportunities to reduce or avoid greenhouse gas emissions from natural gas use, and provide
incentives for businesses to follow through with audit recommendations. The utility must
develop criteria to identify businesses that take meaningful steps to follow through on audit
recommendations and recognize qualifying businesses as thermal energy leaders.
new text end

new text begin Subd. 6. new text end

new text begin Innovative resources for very high-heat industrial processes. new text end

new text begin The first
innovation plan filed by a natural gas utility with more than 800,000 customers must include
a pilot program that will provide innovative resources for hard-to-electrify industrial
processes. A large customer facility exempt from innovation plan offerings under subdivision
3, paragraph (e), shall not be eligible to participate in this pilot.
new text end

new text begin Subd. 7. 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 by a natural gas 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 with natural gas backups 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
the 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 project, as defined in section 216B.2411.
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. 11.

new text begin [216B.2428] WOOD PELLET PRODUCTION INCENTIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Forest residue" means unused portions of harvested trees and materials from diseased,
distressed, or burned trees that are processed into chips or sawdust in the field near the
forested area from which the tree or tree material is supplied.
new text end

new text begin (c) "Residual materials" means forest and wood mill residue.
new text end

new text begin (d) "Wood mill residue" means wood residue generated at a manufacturing plant that
processes harvested trees into products, including but not limited to lumber and sheathing,
that are suitable for processing into chips or sawdust.
new text end

new text begin (e) "Wood pellets" means a pellet manufactured from forest and wood mill residuals
that is burned to produce heat or electricity.
new text end

new text begin Subd. 2. new text end

new text begin Eligible facility. new text end

new text begin (a) To be eligible for payments under this section, a facility
must:
new text end

new text begin (1) be located in Minnesota;
new text end

new text begin (2) dry and process residual materials from Minnesota forests and sawmills into wood
pellets;
new text end

new text begin (3) begin construction no later than December 31, 2022;
new text end

new text begin (4) produce at least 50,000 metric tons of wood pellets annually; and
new text end

new text begin (5) certify that all contractors and subcontractors pay employees constructing the facility
no less than the prevailing wage rate, as defined in section 177.42.
new text end

new text begin (b) An eligible facility is prohibited from transferring eligibility for payments under this
section to a facility at a different location.
new text end

new text begin (c) An eligible facility that ceases production for any reason is prohibited from receiving
payments under this section until the eligible facility resumes production.
new text end

new text begin (d) Payments under this section may be made to no more than two eligible facilities.
Payments must be made to eligible facilities on a first-come, first-served basis.
new text end

new text begin Subd. 3. new text end

new text begin Forest residue; requirements. new text end

new text begin (a) Forest residue harvested from land parcels
larger than 160 acres must be certified by the Forest Stewardship Council, Sustainable
Forestry Initiative, or American Tree Farm System as being harvested from sustainably
managed forests.
new text end

new text begin (b) Forest residue not certified under paragraph (a) must be harvested under a forest
stewardship plan by a logger certified as a qualified logging professional by the Minnesota
logger education program, or an equivalent certification by an independent third-party
organization that teaches sustainable harvesting practices to loggers.
new text end

new text begin Subd. 4. new text end

new text begin Payment; process. new text end

new text begin (a) The commissioner must make payments under this
section to an eligible facility as provided in this subdivision.
new text end

new text begin (b) By the last day of January, April, July, and October, each eligible facility must file
a claim for payment for wood pellets produced by the eligible facility during the preceding
three calendar months. The claim must be filed with the commissioner on a form developed
by the commissioner.
new text end

new text begin (c) A claim submitted under this section must include documentation and verification
by an independent third party that, with respect to an eligible facility's claim filed under
this subdivision:
new text end

new text begin (1) the conditions of subdivision 3 have been met; and
new text end

new text begin (2) the amount of wood pellets, expressed in metric tons, that the eligible facility claims
to have produced during the quarter is accurate.
new text end

new text begin (d) No later than February 15, May 15, August 15, and November 15, the commissioner
must issue payments under this section for the applicable quarter to an eligible facility that
filed a quarterly claim approved by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Payment amount; limitation. new text end

new text begin (a) The commissioner must pay an eligible
facility $25 per metric ton of wood pellets produced, subject to the limitations provided
under this subdivision.
new text end

new text begin (b) An eligible facility must not be paid more than $3,750,000 in a calendar year under
this section, irrespective of the number of metric tons of wood pellets produced in a calendar
year.
new text end

new text begin (c) An eligible facility may receive payments under this section for no more than ten
years.
new text end

new text begin (d) A payment must not be made under this section after June 30, 2033.
new text end

Sec. 12.

Minnesota Statutes 2020, section 216B.243, subdivision 3b, is amended to read:


Subd. 3b.

deleted text beginNuclear power plant; new construction prohibited; relicensingdeleted text endnew text begin Additional
storage of spent nuclear fuel
new text end.

deleted text begin (a) The commission may not issue a certificate of need for
the construction of a new nuclear-powered electric generating plant.
deleted text end

deleted text begin (b)deleted text end Any certificate of need for additional storage of spent nuclear fuel for a facility
seeking a license extension shall address the impacts of continued operations over the period
for which approval is sought.

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.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. This subdivision expires June 30, deleted text begin2021deleted text endnew text begin 2023new text end.

Sec. 14.

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 them.
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 provide grants to stimulate the
installation of solar energy systems on or adjacent to school buildings by reducing the cost,
and to 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 may be used only:
new text end

new text begin (1) for grant awards made 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 funds 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 public 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 within 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 public 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 public 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 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. 15.

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 allow schools to benefit from state and federal tax and other financial
incentives that schools are ineligible to receive directly in order to 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 but is not
limited to the following elements:
new text end

new text begin (1) a description of how the public utility uses incentive funds appropriated to the program
from the renewable development account to provide additional financial assistance to schools
at which a solar energy system is installed;
new text end

new text begin (2) an estimate of the amount of financial assistance that the public utility provides to a
school under clause (1), and the length of time financial assistance is provided;
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 must approve
a plan under this subdivision that the commissioner determines to be in the public interest
no later than December 31, 2021. 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 it 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,
may 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 under subdivision 5 are allocated to program participants, including
funds from canceled projects.
new text end

new text begin Subd. 5. 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.
new text end

new text begin (b) The renewable energy credits associated with the electricity generated by a solar
energy system installed under this section are the property of the public utility that is subject
to this section for the life of the system, regardless of the solar on school incentive's duration.
new text end

new text begin Subd. 6. new text end

new text begin Limitation. new text end

new text begin (a) No more than 75 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. 7. new text end

new text begin Technical assistance. new text end

new text begin The commissioner may provide technical assistance to
schools to develop and execute projects under this section.
new text end

new text begin Subd. 8. 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. 16. new text beginPUBLIC UTILITIES COMMISSION LIFECYCLE CARBON
ACCOUNTING FRAMEWORK AND COST-BENEFIT TEST FOR INNOVATIVE
RESOURCES.
new text end

new text begin By June 1, 2022, the Public Utilities Commission shall issue by order frameworks for
the calculation of lifecycle carbon intensities of each innovative resource for natural gas
utilities as follows:
new text end

new text begin (1) a general framework for the comparison of power-to-hydrogen, strategic
electrification, renewable natural gas, district energy, energy efficiency, biogas, carbon
capture, and power-ammonia according to their lifecycle greenhouse gas intensities; and
new text end

new text begin (2) a cost-benefit analytic framework to be applied to innovative resources and innovation
plans filed pursuant to section 216B.2427, that the commission will use to compare the
cost-effectiveness of those resources and plans. This analytic framework shall take into
account:
new text end

new text begin (i) the total incremental cost of the plan or resource that would be evaluated under the
framework 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) any important 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. In establishing the baseline criteria, the commission shall take into account the
options available for reducing 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 shall be consistent with
environmental cost values established pursuant to section 216B.2422, subdivision 3, and
other calculation of the social value of greenhouse gas emissions reduction.
new text end

new text begin 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. 17.

new text begin BIOMASS BUSINESS COMPENSATION.
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) "Biomass plant" means the biomass plant identified under Minnesota Statutes, section
116C.779, subdivision 1, paragraph (f).
new text end

new text begin (c) "Early termination" means the early termination of the power purchase agreement
authorized under Minnesota Statutes, section 216B.2424, subdivision 9, with the biomass
plant.
new text end

new text begin (d) "Operating income" means a business's revenue minus its operating expenses.
new text end

new text begin Subd. 2. new text end

new text begin Office of Administrative Hearings; claims process. new text end

new text begin (a) The chief
administrative law judge of the Office of Administrative Hearings must assign an
administrative law judge to administer a claims award process to compensate businesses
negatively affected by the early termination. The chief administrative law judge may develop
a process, prescribe forms, identify documentation affected businesses must submit with
claims, and issue awards to eligible businesses consistent with this section. The process
must allow, but not require, an authorized representative from each business that applies
for compensation to appear in person before the assigned administrative law judge to provide
evidence in support of the business's claim.
new text end

new text begin (b) The chief administrative law judge may contract with and use the services of financial
or other consultants to examine financial documentation presented by claimants or otherwise
assist in the evaluation and award of claims.
new text end

new text begin (c) Records submitted to the Office of Administrative Hearings as part of the claims
process constitute business data under Minnesota Statutes, section 13.591.
new text end

new text begin (d) An award made under this section is final and is not subject to judicial review.
new text end

new text begin (e) An award made under this section does not constitute an admission of liability by
the state for any damages or other losses suffered by a business affected by the early
termination.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin To be eligible for an award of compensation, an affected business
must meet the following criteria:
new text end

new text begin (1) as of May 1, 2017, the affected business was operating under the terms of a valid
written contract, or an oral contract that is sufficiently supported by business records, with
the company operating the biomass plant or the fertilizer plant integrated with the biomass
plant to supply or manage material for, or receive material from, the biomass plant or the
fertilizer plant integrated with the biomass plant;
new text end

new text begin (2) the affected business is located in the state; and
new text end

new text begin (3) as the result of the early termination, the affected business suffered:
new text end

new text begin (i) decreased operating income; or
new text end

new text begin (ii) the loss of value of investments in real or personal property essential to its business
operations with the biomass plant.
new text end

new text begin Subd. 4. new text end

new text begin Types of claims. new text end

new text begin (a) An eligible business may make claims for a compensation
award based on either or both:
new text end

new text begin (1) decreased operating income; or
new text end

new text begin (2) the loss of value of investments in real or personal property essential to its business
operations with the biomass plant.
new text end

new text begin (b) To establish and quantify a claim for decreased operating income, an eligible business
must:
new text end

new text begin (1) demonstrate its operating income over the past five years derived from supplying or
managing material for, or receiving material from, the biomass plant;
new text end

new text begin (2) present evidence of any alternative business opportunities it has pursued or could
pursue to mitigate the loss of revenue from the termination of its contract with the biomass
plant; and
new text end

new text begin (3) demonstrate the amount that the business's annual operating income, including
operating income from any alternative business opportunities, after the termination of the
business's contract with the biomass plant is less than the five-year average of the business's
annual operating income before the early termination.
new text end

new text begin (c) To establish and quantify a loss of value of investments in real or personal property
claim, an eligible business must provide sufficient evidence of:
new text end

new text begin (1) the essential nature of the investment made in the property to fulfill the contract with
the biomass plant;
new text end

new text begin (2) the extent to which the eligible business is able to repurpose the property for another
productive use after the early termination, including but not limited to the use, sales, salvage,
or scrap value of the property for which the loss is claimed; and
new text end

new text begin (3) the value of the eligible business's nondepreciated investment in the property.
new text end

new text begin Subd. 5. new text end

new text begin Limitations on awards. new text end

new text begin (a) A compensation award for a decreased operating
income claim must not exceed the amount calculated under subdivision 4, paragraph (b),
clause (3), multiplied by two.
new text end

new text begin (b) The use, sales, salvage, or scrap value of the property for which a loss is claimed
must be deducted from a compensation award for a loss of value of investments in real or
personal property claim.
new text end

new text begin (c) A payment received from business interruption insurance policies, settlements, or
other forms of compensation related to the termination of the business's contract with the
biomass plant must be deducted from any compensation award provided under this section.
new text end

new text begin Subd. 6. new text end

new text begin Priority. new text end

new text begin The chief administrative law judge may give priority to claims by
eligible businesses that demonstrate a significant effort to pursue alternative business
opportunities or to conduct other loss mitigation efforts to reduce its claimed losses related
to the termination of its contract with the company operating the biomass plant.
new text end

new text begin Subd. 7. new text end

new text begin Awarding claims. new text end

new text begin If the amount provided for compensation in the biomass
business compensation account established under section 17 is insufficient to fully award
all claims eligible for an award, all awards must be adjusted proportionally based on the
value of the claim.
new text end

new text begin Subd. 8. new text end

new text begin Deadlines. new text end

new text begin The chief administrative law judge must make the application
process for eligible claims available by August 1, 2021. A business seeking an award under
this section must file all claims with the chief administrative law judge within 60 days of
the date the chief administrative law judge makes the application process for eligible claims
available. All preliminary awards on eligible claims must be made within 120 days of the
deadline date to file claims. Any requests to reconsider an award denial must be filed with
the chief administrative law judge within 60 days of the notice date for preliminary awards.
All final awards for eligible claims must be made within 60 days of the deadline date to file
reconsideration requests. The commissioner of management and budget must pay all awarded
claims within 45 days of the date the commissioner of management and budget receives
notice of the final awards from the chief administrative law judge.
new text end

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

new text begin BIOMASS BUSINESS COMPENSATION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin A biomass business compensation account is
established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account must be credited to the account. Earnings, such
as interest, and any other earnings arising from the assets of the account are credited to the
account. Funds remaining in the account as of December 31, 2023, must be transferred to
the renewable development account established under Minnesota Statutes, section 116C.779.
new text end

new text begin Subd. 2. new text end

new text begin Funding for the special account. new text end

new text begin Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j), on July 1, 2021, $18,000,000, and on July 1, 2022,
$18,000,000 must be transferred from the renewable development account under Minnesota
Statutes, section 116C.779, to the biomass business compensation account established under
subdivision 1. These are onetime transfers. The transferred funds are appropriated to pay
eligible obligations under the biomass business compensation program established under
section 16.
new text end

new text begin Subd. 3. new text end

new text begin Payment of expenses. new text end

new text begin The chief administrative law judge must certify to the
commissioner of management and budget the total costs incurred to administer the biomass
business compensation claims process. The commissioner of management and budget must
transfer an amount equal to the certified costs incurred for biomass business compensation
claim activities from the renewable development account under Minnesota Statutes, section
116C.779, and deposit it in the administrative hearings account under Minnesota Statutes,
section 14.54. Transfers may occur quarterly throughout the fiscal year and must be based
on quarterly cost and revenue reports, with final certification and reconciliation after each
fiscal year. The total amount transferred under this subdivision must not exceed $200,000.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19. new text beginREMAINING "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION
PROGRAM INCENTIVE OBLIGATION.
new text end

new text begin (a) On or before June 30, 2021, the commissioner of commerce must (1) determine the
total remaining obligation for the "Made in Minnesota" solar energy production incentive
program under Minnesota Statutes, section 216C.417, and (2) report the amount determined
under clause (1) to the commissioner of management and budget and the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over energy policy.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 116C.779, subdivision 1, paragraph
(j), the amount determined by the commissioner of commerce under paragraph (a) is
appropriated in equal amounts over four consecutive years beginning in fiscal year 2022
from the renewable development account under Minnesota Statutes, section 116C.779,
subdivision 1, paragraph (a), to the commissioner of commerce to make final payments for
"Made in Minnesota" obligations.
new text end

new text begin (c) By October 15, 2021, the commissioner of commerce must pay the total remaining
obligation for a "Made in Minnesota" solar energy production incentive approved by the
commissioner under Minnesota Statutes 2016, section 216C.415, to an owner whose
application was approved 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. 20. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Laws 2005, chapter 97, article 10, section 3, as amended by Laws 2013, chapter 85,
article 7, section 9,
new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2020, section 216C.417, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2020, section 115C.13, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (c) are effective the day following final
enactment. Paragraph (b) is effective October 16, 2021.
new text end

ARTICLE 6

TELECOMMUNICATIONS

Section 1.

Minnesota Statutes 2020, section 237.025, subdivision 6, is amended to read:


Subd. 6.

Market regulation and consumer protection.

(a) A local exchange carrier
that has received approval from the commission to be regulated under this section in one
or more of its exchange service areas shall be subject to regulation in those approved
exchange service areas as a telecommunications carrier under section 237.035, and as a
competitive local exchange carrier under Minnesota Rules, parts 7811.2210 and 7812.2210,
as applicable. new text beginA local exchange carrier that has obtained approval for at least 90 percent of
the local exchange carrier's access lines may elect to have all of the local exchange carrier's
lines regulated under this section.
new text endNothing in this section shall be construed to provide or
imply that a local exchange carrier regulated under this section is exempted from Minnesota
Statutes and Minnesota Rules applying to competitive local exchange carriers, including,
but not limited to:

(1) sections 237.50 to 237.56;

(2) sections 237.66, 237.661, 237.663, and 237.665;

(3) sections 237.69 to 237.71; and

(4) Minnesota Rules, chapter 7810.

(b) Regulation under this section is effective 30 days after a petition is deemed approved
under subdivision 3 or approved by the commission under subdivision 4.

Sec. 2.

Minnesota Statutes 2020, section 237.025, subdivision 9, is amended to read:


Subd. 9.

Obligation to serve.

deleted text beginNothing in this section affects the obligation of a local
exchange carrier that petitions the commission to be regulated under this section to provide
service to customers, when requested, in accordance with this chapter, commission rules,
and its duly authorized tariffs
deleted text endnew text begin A local exchange carrier that elects to be regulated under this
section is required to offer service throughout the local exchange carrier's service territory
to the extent required by federal law
new text end.

APPENDIX

Repealed Minnesota Statutes: S0972-3

115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11, 115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2022.

216C.417 PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVES.

Subdivision 1.

General provisions.

Payment of a "Made in Minnesota" solar energy production incentive to an owner whose application was approved by the commissioner of commerce under section 216C.415, by May 1, 2017, must be administered under the provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413; 216C.414, subdivisions 1 to 3 and 5; and 216C.415. No incentive payments may be made under this section to an owner whose application was approved by the commissioner after May 1, 2017.

Subd. 2.

Appropriation.

(a) Unspent money remaining in the account established under Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the renewable development account in the special revenue fund established under Minnesota Statutes, section 116C.779, subdivision 1.

(b) There is annually appropriated from the renewable development account in the special revenue fund established in Minnesota Statutes, section 116C.779, to the commissioner of commerce money sufficient to make the incentive payments required under Minnesota Statutes 2016, section 216C.415. Any funds appropriated under this paragraph that are unexpended at the end of a fiscal year cancel to the renewable development account.

(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of this appropriation may be used for administrative costs.

Subd. 3.

Eligibility window; payment duration.

(a) Payments may be made under this subdivision only for solar photovoltaic module installations that meet the requirements of subdivision 1 and that first begin generating electricity between January 1, 2014, and October 31, 2018.

(b) The payment eligibility window of the incentive begins and runs consecutively from the date the solar photovoltaic modules first begins generating electricity.

(c) An owner of solar photovoltaic modules may receive payments under this section for a particular module for a period of ten years, provided that sufficient funds are available in the account.

(d) No payment may be made under this section for electricity generated after October 31, 2028.

Repealed Minnesota Session Laws: S0972-3

Laws 2005, chapter 97, article 10, section 3, as amended by Laws 2013, chapter 85, article 7, section 9

Sec. 9.

Laws 2005, chapter 97, article 10, section 3, is amended to read:


Sec. 3. SUNSET.

Sections 1 and 2 shall expire on June 30, 2023.